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Empire Company Limited The Oshawa Group Limited Proposal Case Study Analysis

CASE SOLUTION

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Empire Company Limited The Oshawa Group Limited Proposal Case Study Solution

Background and Facts

Empire Company Limited The Oshawa Group Limited Proposal a workplace materials store for tiny and average sized organisations has actually just recently been involved in planning for a merging with its rival Home Deport, which has influenced effectiveness levels in departmentswith the elderly manager involved in legal issues presented by the federal Trade Compensation. With the Advertising Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the future. With challenges in the form of a potential cultural change as well as low employee spirits, the organization is in need of a total reengineering effort at the advertising division.

Trouble Statement
Porter's 5 Forces Analysis
The prospective social modification at the advertising division of Empire Company Limited The Oshawa Group Limited Proposal is raising uncertainty in the working environment resulting in numerous challenges for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting calculated decisions considering that Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Trade Compensation's treatment while doing so. Given the fact that the shop has an international presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations might have the ability to impact efficiency or critical objectives. Federal Trade Compensation's antitrust fit against the merger took up useful time of the organization's senior management recommending that 'political' factors can have serious effects for a global company.

Economic Factors: Financial factors such as the appearance of small businesses in the worldwide situation recommend that Empire Company Limited The Oshawa Group Limited Proposal is flourishing in an atmosphere where there is prospective growth of services. In addition to this, fact that shop clients are primarily searching for workplace products for office suggests that the market has an increasing fad of entrepreneurs and also home based organisations.

Social factors: Social patterns in the economy show that customers are trying to find convenience along with eye-catching rates. Marketing research demonstrates how the customer for Empire Company Limited The Oshawa Group Limited Proposal lacks understanding concerning discovering solutions which can use a mix of benefit as well as affordable.

Technical factors: Innovation plays an important duty in Empire Company Limited The Oshawa Group Limited Proposal's service method particularly as the company is piloting Modern technology centers which would provide modern technology sales and also assistance in the form of memory upgrades, peripheral setups. (Recap of INSECT in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Business Habits concerns can be seen in Empire Company Limited The Oshawa Group Limited Proposal's case as highlighted in this section.

Concerns regarding social adjustment: There is concern about a cultural change that would certainly happen as soon as Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with the majority of the personnel already showing unhappiness over this prospective step. This predicted adjustment has produced anxiety in the workplace which has actually been combined with the previous anxiety of preparing the firm for a possible merging with Home Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is scarcity of workers that can match the demanding environment of a fast-paced company. Not only does this cause difficulty in locating the best individuals, it places anxiety on new hires as can not endure the rate as well as stress that the company expects them to bear.

Dual Coverage Lines: Newcomers find this organizational culture cumbersome as well as tough to cope with particularly as populated line connections are implied to be weak generally and also unbiased setting and also performance evaluation is still done by the strong line manager. This suggests that beginners could lose clarity concerning their respective duties and goals especially as populated line reporting does not maintain them in direct interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles although it had been speculated that the latter would certainly take Krasnow's placement came as an impact to her morale. Lewis may have been qualified as well as suitable for the work however the reality that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.

Concern & Work Instability: Fear and also instability can be determined as two major worries that Lewis would be taking care of especially as the merger has actually currently be terminated and two senior executives of the advertising division would be leaving. The whole obligation of the division would be falling on Lewis's shoulders that would certainly not simply supervise of brining regarding a social modification but would certainly likewise have to prove herself in her new role.

Inappropriate Administration Style of Leader: Lewis's administration design as well as its conflict with the marketing division's role can also be seen as an OB challenge specifically as she has been made use of to managing problems in the procedures division where personnel are instructed to focus on processes and also obtain them. The advertising department on the various other hand can be viewed as a group of people that are utilized to being supported by Krasnow that concentrated extra on result than processes.

Interdepartmental Disputes: Interdepartmental arguments in between 3 departments, advertising and marketing, merchandizing and procedures respectively over the allotment of the advertising mix can be recognized as one more OB concern. The advertising and marketing division does not share the exact same vision as the various other two departments concerning the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and operations departments do not agree over the advertising mix allowance among one another either.

Fragmentation in Advertising Department: Disintegration in between the advertising and marketing departments can be determined as another OB problem which can require further focus. The truth that the advertising and marketing sections in the advertising and marketing department are detached is avoiding both divisions from getting from each other's experience and expertise. Assimilation of advertising and marketing with retailing and also operations would become more difficult if the marketing division itself is degenerated which can be one more potential OB concern.

Empire Company Limited The Oshawa Group Limited Proposal Analysis

Different concepts have been utilized to explain the scenarios to get additional quality regarding the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers think that juniors are easy and also careless, have little passion as well as resist modification. The situation at Empire Company Limited The Oshawa Group Limited Proposal is not completely complying with Theory X, it can be seen that new hires are finding this environment rather stressful which might eventually lead to a greater inclination of the administration towards Concept X. Even while assessing Lewis's administration design, concept X might have been ideal in the procedures division to some level but the Advertising department would certainly need dependence on Concept Y in order to obtain the creative thinking and also originality from the teams.

Tuckman's Synergy Theory: Regarding Lewis's issue regarding bringing consistency in between the marketing and advertising division is concerned, this would originally result in conflict as gone over by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, during the first phase of team advancement, individuals may not bond, as they are busy discovering their location in the team. By combining the marketing and advertising division's work, there might be the same first disconnect which could lead to the 2nd phase of 'storming' where the teams test one another. Nevertheless, it is just during the third stage or 'norming' when they would integrate to share concepts prior to the team can cause synergy in the fourth stage 'carrying out'.

Bridges' Shift Model: According To William Bridge's theory (appendix 4), people are rather uncomfortable with adjustment, which is obvious by the scenario at Empire Company Limited The Oshawa Group Limited Proposal The situation can be seen as a normal course of life if is studied as per Bridge's concept where he describes that individuals undergo 3 stages of shift when they experience modification. 'End, shedding and Letting go', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they enter stage one therefore there might be feelings like despair, unpredictability, aggravation, temper, worry, rejection as well as disorientation.The situation at the advertising department of Empire Company Limited The Oshawa Group Limited Proposal is similar so Lewis can obtain comfy with the concept that it is not extraordinary behavior. In the second phase, there might be a demand to connect the space between the brand-new and old culture so Lewis might have to encounter this experience when Krasnow leaves. There might be reduced morale and low efficiency at this phase which need to not be taken as an obstacle. It is throughout this phase that Lewis will certainly need to provide support to the division so that they can locate a sense of direction. It can be seen exactly how Krasnow has currently made this transition simpler by making Lewis obtain involved in the department a year before his actual separation. As per Bridges' Version, phase 3 will cause openness to discovering, High energy and dedication as individuals will certainly welcome the modification (Bridges, 2004).
Vrio Analysis
Maslow's Demand power structure: The OB concern pertaining to insecurity at the office has been set off firstly by the change in management and also second of all by the truth that the merging will certainly no longer be initiated. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has discusses the value of 'protection requires as being a reduced level need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel protected as well as unharmed' is at the 2nd level of demands. Before a worker can be made to create emotionally, he needs to have his 'Physical 'and also 'Safety' requires fulfilled. This indicates that unless the personnel are made to really feel safe and secure concerning their present work standing in Empire Company Limited The Oshawa Group Limited Proposal they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Empire Company Limited The Oshawa Group Limited Proposal Case Study



Implication of Analysis.

The OB analysis has checked out various theories to understand exactly how to deal with the present scenario available. The adhering to 3 choices have actually been recommended to help Lewis take care of the business obstacles in the advertising division. Each of these alternatives has been suggested for alleviating the change required to bring the advertising division in accordance with the needs of the market as well as for making the cultural change that would certainly adhere to as soon as the current leader leaves.

Combination of advertising and marketing functions. Separating Adverting and also Manufacturing functions. Combination of Advertising with Workflow.

Assessment of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merger days has expertise in business-to-business advertising and marketing along with firm and retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to take care of both advertising and marketing features.

The benefit of this strategy is that it will incorporate both functions while lowering the demand for employing an extra source for advertising. Lewis would certainly be heading the advertising division as well as in any type of case her replacement would certainly be required for the existing duty that she is executing. The downside of this option is that outside hiring may produce animosity from inner personnel that might be eying the placement of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Production: Given the affordable pressures as well as high quality work called for from the ad agency, it is advised that Lewis needs to enable the manufacturing system to be a different feature from the advertising unit. Since a lot of advertising agencies had these 2 functions as different systems, it makes more feeling to follow the standard. Both functions may be able to focus on their core activates much more effectively. Nonetheless, the negative aspect of this method would certainly be that additional expenses would certainly have to be borne for establishing different production features. In addition to this, a production head may need to be worked with which can enhance overheads for the organization.

Assimilation of Advertising with Workflows: Considering that Lewis is already taking care of the advertising and procedures departments simultaneously; it makes good sense to integrate the two features since she has actually been successfully taking care of both ends. The reality that the two divisions already have major differences over appropriation of resources suggests that this integration may have the ability to produce consistency especially as Lewis would be heading both ends.However there are different negative aspects of this step especially as it would certainly place excessive problem over Lewis's shoulders. The fact that Lewis has to adjust her administration style for the advertising department suggests that these two divisions would certainly be culturally diverse. Lewis may not be able to use one type of management design to both departments which can result in inadequacy in either one of the two features.

Referral.



An analysis of the 3 options suggests that assimilation of marketing and procedures would certainly not be a possible move due to the huge differences in between both departments despite the fact that presently Lewis is taking care of both. While separation of the production feature might have been a positive step for the advertising department, the reality that it would certainly suggest putting a 3rd function under Lewis's wing indicates this should be stayed clear of too. The combination of the advertising division is the most effective alternative in terms of obtaining the optimum arise from the department. An action plan for this option is reviewed listed below.

Action Plan.
Recommendation
Lewis will take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be combined.

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

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

Lewis will certainly divide herself from operations.

An autonomous management design with staff member empowerment will be made use of in marketing division.

Open door plan as well as emphasis on cross department communication will be focused on removing disharmony.

Contingency strategy.

If the integration does not exercise as planned, a backup plan would comply with which would certainly divide the production feature from the advertising function to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising department without an SVP. Because case the production feature will most definitely be divided by positioning it under an SVP production.