Empire Blue Cross And Blue Shield G Case Study Solution


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Empire Blue Cross And Blue Shield G Case Study Help

Background and Facts

Empire Blue Cross And Blue Shield G an office supplies retailer for small as well as average sized services has lately been involved in planning for a merger with its competitor Residence Deport, which has influenced performance degrees in departmentswith the senior manager involved in lawful issues presented by the federal Profession Payment. With the Advertising and marketing Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the future. With difficulties in the form of a possible cultural modification and also low staff member morale, the organization needs a complete reengineering initiative at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural change at the advertising and marketing department of Empire Blue Cross And Blue Shield G is enhancing unpredictability in the workplace causing numerous challenges for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing strategic decisions considering that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Commission's intervention in the process. Offered the reality that the shop has a worldwide visibility with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries may have the ability to influence performance or critical goals. Federal Trade Payment's antitrust fit against the merger occupied valuable time of the company's elderly monitoring recommending that 'political' factors can have severe effects for a global organisation.

Economic Factors: Financial factors such as the emergence of small companies in the international scenario recommend that Empire Blue Cross And Blue Shield G is flourishing in a setting where there is possible development of services. Along with this, fact that shop clients are mainly searching for office supplies for home offices suggests that the marketplace has a climbing fad of business owners as well as home services.

Social factors: Social trends in the economy show that clients are trying to find convenience along with appealing rates. Marketing research shows how the client for Empire Blue Cross And Blue Shield G lacks awareness about locating services which can provide a combination of benefit and inexpensive.

Technical factors: Technology plays an essential duty in Empire Blue Cross And Blue Shield G's business method specifically as the company is piloting Innovation facilities which would supply innovation sales and support in the kind of memory upgrades, peripheral installations. (Recap of BUG in appendix 2).

OB Issues and also Manifestations.

Several underlying Organizational Habits concerns can be seen in Empire Blue Cross And Blue Shield G's case as highlighted in this area.

Concerns about social change: There is concern regarding a social modification that would occur when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising And Marketing with the majority of the personnel currently showing discontent over this possible action. This expected change has produced tension in the office which has been paired with the previous stress of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is lack of workers that can match the stressful environment of a fast-paced organization. Not only does this cause difficulty in locating the appropriate individuals, it places tension on new hires as can not withstand the rate as well as pressure that the organization anticipates them to bear.

Double Coverage Lines: Newbies locate this business culture difficult and also hard to cope with specifically as populated line relationships are implied to be weaker generally and objective setup as well as performance evaluation is still done by the strong line supervisor. This indicates that newcomers can lose quality about their particular functions and goals specifically as populated line coverage does not keep them in direct interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been hypothesized that the latter would take Krasnow's position came as a blow to her morale. Lewis may have been qualified and appropriate for the task however the truth that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Work Instability: Worry and instability can be identified as two significant problems that Lewis would be handling particularly as the merger has actually currently be cancelled and 2 senior executives of the marketing division would be leaving. The entire responsibility of the division would certainly be dropping on Lewis's shoulders who would not just supervise of brining regarding a cultural change however would certainly also have to show herself in her new role.

Incompatible Administration Style of Leader: Lewis's administration style and also its conflict with the advertising and marketing department's duty can likewise be seen as an OB obstacle particularly as she has actually been made use of to handling concerns in the procedures division where workers are educated to focus on processes as well as obtain them. The advertising and marketing division on the other hand can be seen as a team of individuals that are made use of to being supported by Krasnow who concentrated more on result than procedures.

Interdepartmental Differences: Interdepartmental differences between 3 departments, advertising, merchandizing and operations respectively over the appropriation of the marketing mix can be determined as an additional OB worry. The marketing division does not share the exact same vision as the other 2 divisions concerning the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and also operations divisions do not agree over the marketing mix allowance amongst one an additional either.

Disintegration in Marketing Division: Fragmentation in between the marketing and advertising departments can be identified as one more OB issue which can require more interest. The reality that the advertising and marketing sections in the advertising and marketing division are disconnected is stopping both departments from obtaining from each various other's experience and also expertise. Combination of advertising and marketing with merchandising and operations would end up being more difficult if the advertising and marketing department itself is degenerated which can be one more potential OB issue.

Empire Blue Cross And Blue Shield G Analysis

Various concepts have actually been made use of to explain the circumstances to obtain additional clarity about the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that staffs are easy and also lazy, have little passion and also resist adjustment. The scenario at Empire Blue Cross And Blue Shield G is not completely following Theory X, it can be seen that new hires are discovering this environment rather demanding which may eventually lead to a higher inclination of the administration in the direction of Concept X. Also while assessing Lewis's monitoring style, concept X may have been appropriate in the operations division to some degree but the Marketing department would certainly require reliance on Concept Y in order to obtain the imagination and creativity from the teams.

Tuckman's Teamwork Concept: As far as Lewis's issue regarding bringing consistency between the advertising and marketing division is worried, this would initially bring about conflict as talked about by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's theory shown in appendix 3, throughout the initial phase of group development, people might not bond, as they are active discovering their area in the group. By integrating the advertising and marketing division's work, there might be the same preliminary disconnect which might cause the 2nd phase of 'storming' where the teams challenge each other. However, it is only during the third phase or 'norming' when they would collaborate to share suggestions prior to the group can cause harmony in the 4th stage 'doing'.

When individuals are provided with adjustment, they enter stage one as well as so there may be emotions like unhappiness, unpredictability, frustration, temper, anxiety, denial and disorientation.The circumstance at the advertising department of Empire Blue Cross And Blue Shield G is similar so Lewis can obtain comfy with the concept that it is not remarkable habits. It is throughout this phase that Lewis will certainly have to give assistance to the department so that they can locate a sense of instructions. It can be seen how Krasnow has actually already made this transition much easier by making Lewis get involved in the department a year prior to his actual departure.
Vrio Analysis
Maslow's Requirement power structure: The OB concern related to insecurity at the workplace has been activated firstly by the adjustment in monitoring and also secondly by the reality that the merging will certainly no longer be launched. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the value of 'safety requires as being a lower level demand of a human for causing inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the need to feel safe and also unharmed' goes to the second level of requirements. Before a staff member can be made to establish emotionally, he needs to have his 'Physiological 'and also 'Security' requires met. This indicates that unless the workers are made to really feel safe and secure concerning their current employment standing in Empire Blue Cross And Blue Shield G they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Empire Blue Cross And Blue Shield G Case Study

Effects of Analysis.

The OB analysis has actually considered different concepts to comprehend just how to deal with the present scenario at hand. The following 3 choices have actually been suggested to assist Lewis deal with the organizational difficulties in the advertising and marketing division. Each of these alternatives has been recommended for reducing the shift needed to bring the advertising and marketing department in line with the needs of the marketplace as well as for making the cultural change that would certainly comply with as soon as the current leader leaves.

Integration of marketing and advertising features. Dividing Adverting and Manufacturing features. Combination of Advertising And Marketing with Procedures.

Evaluation of Alternatives.

Integration of Advertising And Marketing & Marketing Functions: The in-house advertising company of Empire Blue Cross And Blue Shield G is already strength for the company in regards to saving up on overheads related to marketing and also promo. Considering that no brand-new recruitment has been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the marketing feature, this is a desirable chance for integrating the marketing and advertising functions. Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merging days has experience in business-to-business advertising together with firm and retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to deal with both marketing and advertising functions.

The benefit of this approach is that it will integrate both functions while lowering the requirement for working with an additional source for marketing. Along with this, Lewis would be heading the marketing department and regardless her replacement would certainly be needed for the present duty that she is carrying out. The negative aspect of this alternative is that exterior hiring may cause animosity from internal personnel that may be looking at the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting as well as Manufacturing: Given the affordable stress and also top quality job needed from the advertising agency, it is recommended that Lewis ought to allow the manufacturing system to be a separate function from the marketing device. Considering that most ad agency had these 2 functions as separate systems, it makes more sense to follow the standard. In addition to this, both functions might be able to concentrate on their core triggers much more successfully. The disadvantage of this approach would be that extra costs would certainly have to be borne for establishing up separate production functions. In addition to this, a production head may have to be worked with which can enhance expenses for the organization.

Assimilation of Marketing with Workflows: Because Lewis is currently taking care of the advertising as well as procedures divisions all at once; it makes good sense to incorporate the two features since she has actually been efficiently taking care of both ends. The fact that the two divisions already have major differences over allocation of resources suggests that this integration may be able to cause consistency specifically as Lewis would be heading both ends.However there are different downsides of this relocation especially as it would put way too much problem over Lewis's shoulders. The reality that Lewis has to adjust her monitoring style for the advertising and marketing division suggests that these two divisions would certainly be culturally varied. In addition to this, Lewis may not be able to apply one sort of management design to both departments which can cause inadequacy in either among the two functions.


An examination of the 3 choices suggests that assimilation of advertising and marketing and also procedures would certainly not be a viable move due to the huge differences in between the two divisions regardless of the fact that presently Lewis is dealing with both. While separation of the manufacturing feature may have been a positive action for the marketing department, the reality that it would suggest putting a third function under Lewis's wing indicates this ought to be stayed clear of.

Activity Plan.
Lewis will take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would be combined.

Judith Shapiro will certainly be employed to take Lewis's location as SVP of marketing and advertising.

Production feature will certainly stay component of advertising under advertising and marketing feature.

Lewis will divide herself from procedures.

A democratic leadership style with staff member empowerment will certainly be used in advertising department.

Open up door plan and also focus on cross departmental communication will certainly be targeted at eliminating dissonance.

Backup strategy.

If the assimilation does not exercise as prepared, a backup strategy would follow which would divide the manufacturing feature from the advertising and marketing feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising division without an SVP. Because case the manufacturing function will certainly be separated by positioning it under an SVP manufacturing.