Empire Blue Cross And Blue Shield H Case Study Analysis


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Empire Blue Cross And Blue Shield H Case Study Solution

Background and Facts

Empire Blue Cross And Blue Shield H a workplace supplies retailer for tiny as well as medium sized organisations has actually just recently been involved in preparing for a merger with its rival Residence Deport, which has actually impacted performance degrees in departmentswith the senior supervisor associated with lawful issues presented by the federal Trade Commission. With the Advertising Head advancing the news of his separation from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the near future. With challenges in the type of a possible cultural adjustment and reduced employee spirits, the company is in need of a full reengineering initiative at the advertising division.

Trouble Declaration
Porter's 5 Forces Analysis
The potential social modification at the marketing division of Empire Blue Cross And Blue Shield H is increasing uncertainty in the workplace causing numerous challenges for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting calculated choices because Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Trade Commission's intervention while doing so. Given the fact that the shop has a worldwide presence with branches in UK, U.S.A., Canada and Germany, political factors in each of these nations may be able to influence efficiency or strategic goals. Federal Profession Compensation's antitrust suit against the merging occupied beneficial time of the organization's elderly monitoring suggesting that 'political' factors can have major implications for a worldwide company.

Economic Factors: Financial factors such as the introduction of small companies in the worldwide circumstance recommend that Empire Blue Cross And Blue Shield H is prospering in an environment where there is possible growth of services. Along with this, fact that store clients are mostly trying to find office materials for home offices recommends that the market has a rising trend of entrepreneurs and home organisations.

Social factors: Social trends in the economic climate show that consumers are looking for ease along with appealing rates. Marketing research demonstrates how the consumer for Empire Blue Cross And Blue Shield H does not have awareness about locating services which can use a mix of benefit as well as inexpensive.

Technological factors: Modern technology plays an important duty in Empire Blue Cross And Blue Shield H's company strategy specifically as the organization is piloting Innovation facilities which would certainly offer innovation sales as well as assistance in the kind of memory upgrades, outer installments. (Summary of PEST in appendix 2).

OB Issues and Effects.

Numerous underlying Organizational Habits problems can be seen in Empire Blue Cross And Blue Shield H's case as highlighted in this area.

Worries about social adjustment: There is concern about a social modification that would happen when Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising with most of the personnel currently revealing discontent over this prospective move. This predicted adjustment has actually developed stress in the office which has actually been coupled with the past tension of preparing the firm for a possible merging with Residence Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is lack of employees that can match the stressful atmosphere of a busy organization. Not only does this result in problem in locating the ideal people, it places stress and anxiety on brand-new hires as can not hold up against the rate and also stress that the company anticipates them to birth.

Dual Coverage Lines: Novices discover this organizational society troublesome and also hard to deal with especially as dotted line partnerships are meant to be weak as a whole and unbiased setup and performance examination is still done by the solid line supervisor. This means that newbies can shed quality about their particular duties and also purposes specifically as dotted line coverage does not keep them in direct interaction with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had been speculated that the latter would take Krasnow's placement came as a strike to her spirits. Lewis might have been capable as well as appropriate for the work yet the truth that Kransnow's separation would make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Work Insecurity: Concern and instability can be determined as two significant issues that Lewis would be dealing with especially as the merging has now be cancelled as well as 2 elderly executives of the advertising department would be leaving. The entire responsibility of the division would be falling on Lewis's shoulders who would not simply supervise of brining regarding a social adjustment yet would certainly also have to confirm herself in her brand-new function.

Inappropriate Management Design of Leader: Lewis's management design and its incompatibility with the marketing department's function can likewise be seen as an OB challenge particularly as she has been made use of to taking care of issues in the procedures division where personnel are shown to focus on processes and also obtain them. The advertising department on the various other hand can be seen as a team of individuals who are used to being nurtured by Krasnow who concentrated a lot more on outcome than processes.

Interdepartmental Disputes: Interdepartmental disputes between 3 divisions, advertising, merchandizing and procedures specifically over the appropriation of the marketing mix can be identified as one more OB worry. Although the advertising and marketing department does not share the very same vision as the various other two divisions relating to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and operations departments do not concur over the advertising and marketing mix allowance amongst one another either.

Fragmentation in Advertising Department: Fragmentation in between the advertising and marketing divisions can be recognized as another OB problem which could require additional focus. The reality that the advertising and marketing areas in the advertising and marketing department are disconnected is protecting against both departments from getting from each other's experience and proficiency. Assimilation of marketing with merchandising and also procedures would certainly end up being harder if the advertising department itself is disintegrated which can be an additional potential OB worry.

Empire Blue Cross And Blue Shield H Analysis

Different concepts have actually been made use of to explain the circumstances to get further quality about the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that subordinates are easy and also careless, have little passion as well as withstand change. The situation at Empire Blue Cross And Blue Shield H is not completely adhering to Concept X, it can be seen that brand-new hires are finding this setting rather difficult which may at some point lead to a greater inclination of the monitoring towards Concept X. Also while analyzing Lewis's monitoring style, theory X may have been ideal in the operations department to some degree but the Marketing department would need dependence on Concept Y in order to get the creativity and also creativity from the teams.

Tuckman's Team effort Theory: As for Lewis's worry regarding bringing consistency between the marketing and advertising division is worried, this would initially bring about contrast as reviewed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, during the preliminary phase of group development, people may not bond, as they are active discovering their area in the group. By integrating the advertising and marketing division's job, there might be the same initial disconnect which can cause the second phase of 'storming' where the groups test one another. It is only throughout the 3rd phase or 'norming' when they would certainly come with each other to share suggestions before the group can bring about synergy in the fourth phase 'carrying out'.

Bridges' Shift Design: Based On William Bridge's theory (appendix 4), individuals are rather uncomfortable with change, which is obvious by the situation at Empire Blue Cross And Blue Shield H The scenario can be seen as a regular course of life if is researched as per Bridge's concept where he clarifies that people undergo three stages of shift when they experience adjustment. 'End, shedding as well as Releasing', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When individuals exist with change, they enter stage one therefore there may be feelings like despair, unpredictability, disappointment, anger, anxiety, rejection as well as disorientation.The circumstance at the advertising department of Empire Blue Cross And Blue Shield H is comparable so Lewis can obtain comfy with the concept that it is not phenomenal behavior. In the 2nd phase, there may be a demand to bridge the void in between the brand-new as well as old culture so Lewis may have to face this ordeal when Krasnow leaves. There may be low spirits as well as low productivity at this phase which should not be taken as a setback. It is throughout this stage that Lewis will need to provide advice to the division to ensure that they can find a sense of direction. It can be seen how Krasnow has already made this shift easier by making Lewis obtain associated with the division a year prior to his actual separation. According to Bridges' Design, phase 3 will bring about openness to understanding, High energy and also dedication as individuals will accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB problem pertaining to instability at the office has been triggered to start with by the adjustment in administration as well as second of all by the fact that the merger will certainly no longer be launched. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has goes over the significance of 'protection needs as being a reduced degree requirement of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel secure and also untouched' goes to the second degree of needs. Prior to a staff member can be made to create psychologically, he needs to have his 'Physiological 'and 'Security' needs met. This indicates that unless the employees are made to feel safe and secure concerning their existing employment condition in Empire Blue Cross And Blue Shield H they may not get to 'Self-Fulfillment'. (King, 2009).

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

Effects of Analysis.

The OB analysis has actually taken a look at various theories to understand how to deal with the present circumstance at hand. The complying with 3 options have been proposed to help Lewis handle the business obstacles in the advertising and marketing department. Each of these options has been proposed for reducing the change required to bring the advertising department according to the needs of the marketplace as well as for making the social modification that would certainly follow when the existing leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and also Production functions. Combination of Advertising And Marketing with Procedures.

Examination of Alternatives.

Assimilation of Marketing & Advertising And Marketing Functions: The internal marketing agency of Empire Blue Cross And Blue Shield H is already toughness for the company in terms of saving up on expenses related to marketing and also promotion. Since no brand-new employment has actually been done after Bridget Cole's departure with the coverage line being directly assigned to Krasnow for the marketing feature, this is a beneficial possibility for incorporating the marketing and advertising functions. Judith Shapiro that has earlier been talked to by Lewis during the earlier merging days has knowledge in business-to-business advertising and marketing in addition to firm as well as retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to handle both advertising and marketing functions.

The advantage of this method is that it will incorporate both functions while reducing the need for hiring an additional source for advertising. Along with this, Lewis would be heading the advertising division and regardless her replacement would be required for the current function that she is carrying out. The negative aspect of this option is that outside hiring might produce bitterness from inner workers that might be considering the setting of EVP after Lewis takes over Krasnow's position.

Separating Adverting and also Manufacturing: Provided the affordable stress and excellent quality job needed from the ad agency, it is recommended that Lewis needs to enable the production device to be a different function from the advertising device. Considering that the majority of ad agency had these two functions as separate devices, it makes more sense to follow the norm. Both features might be able to focus on their core activates extra successfully. The disadvantage of this technique would be that added expenses would certainly have to be birthed for establishing up different manufacturing features. In addition to this, a production head might need to be employed which could boost overheads for the organization.

Assimilation of Advertising And Marketing with Operations: Given that Lewis is already dealing with the advertising and marketing as well as operations divisions at the same time; it makes good sense to incorporate both features since she has been successfully taking care of both ends. The fact that the two divisions already have major distinctions over appropriation of resources recommends that this integration may have the ability to cause consistency particularly as Lewis would certainly be heading both ends.However there are numerous disadvantages of this step especially as it would certainly place excessive problem over Lewis's shoulders. The reality that Lewis needs to adapt her administration design for the advertising and marketing department recommends that these 2 departments would certainly be culturally diverse. In addition to this, Lewis might not have the ability to use one type of leadership style to both divisions which might result in inadequacy in either one of the two functions.


An analysis of the three options shows that assimilation of marketing and operations would not be a practical step due to the huge differences between the two departments in spite of the truth that presently Lewis is managing both. While splitting up of the production feature may have been a beneficial move for the marketing department, the reality that it would suggest putting a third feature under Lewis's wing indicates this ought to be stayed clear of.

Action Strategy.
Lewis will take control of the role of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

Judith Shapiro will be hired to take Lewis's place as SVP of marketing and advertising.

Production feature will remain part of marketing under marketing feature.

Lewis will certainly separate herself from operations.

An autonomous leadership style with worker empowerment will certainly be used in advertising and marketing department.

Open up door policy and also focus on cross department communication will be focused on removing disharmony.

Backup plan.

If the integration does not exercise as planned, a backup plan would certainly comply with which would certainly divide the production feature from the marketing function to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising division without an SVP. Because case the manufacturing function will certainly be separated by positioning it under an SVP manufacturing.