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Erie Thames Powerlines The Hybrid Truck Decision Case Study Help

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Erie Thames Powerlines The Hybrid Truck Decision Case Study Analysis

Background and Facts

Erie Thames Powerlines The Hybrid Truck Decision a workplace supplies merchant for small and also moderate sized organisations has recently been associated with planning for a merging with its competitor Residence Deport, which has actually affected efficiency degrees in departmentswith the elderly manager involved in legal issues put forth by the government Profession Compensation. With the Advertising Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the duty in the future. With difficulties in the kind of a prospective cultural change and low worker morale, the organization is in need of a full reengineering effort at the advertising and marketing department.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural change at the advertising division of Erie Thames Powerlines The Hybrid Truck Decision is enhancing uncertainty in the working environment causing numerous obstacles for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing tactical decisions because Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Profession Commission's intervention in the process. Given the fact that the store has an international visibility with branches in UK, USA, Canada and also Germany, political consider each of these nations might be able to impact performance or strategic goals. Federal Trade Compensation's antitrust fit against the merging took up useful time of the company's elderly administration suggesting that 'political' factors can have severe implications for a worldwide organisation.

Economic Factors: Economic factors such as the appearance of small businesses in the global situation recommend that Erie Thames Powerlines The Hybrid Truck Decision is thriving in a setting where there is potential development of businesses. Truth that shop consumers are mainly looking for workplace products for residence offices suggests that the market has an increasing pattern of entrepreneurs as well as home based businesses.

Social factors: Social trends in the economic situation show that customers are looking for benefit as well as attractive costs. Marketing research demonstrates how the customer for Erie Thames Powerlines The Hybrid Truck Decision does not have awareness regarding finding services which can supply a combination of benefit and inexpensive.

Technical factors: Innovation plays an important function in Erie Thames Powerlines The Hybrid Truck Decision's company technique specifically as the organization is piloting Innovation facilities which would use innovation sales as well as assistance in the form of memory upgrades, outer installations. (Summary of INSECT in appendix 2).

OB Issues as well as Effects.

Several underlying Organizational Actions concerns can be seen in Erie Thames Powerlines The Hybrid Truck Decision's case as highlighted in this section.

Concerns concerning cultural change: There is concern concerning a cultural adjustment that would certainly occur once Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with the majority of the staff members currently showing discontent over this prospective step. This expected change has created stress and anxiety in the office which has actually been paired with the previous tension of preparing the company for a potential merging with Residence Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is shortage of employees that can match the demanding atmosphere of a hectic company. Not only does this bring about difficulty in finding the appropriate individuals, it puts stress on new hires as can not endure the pace and pressure that the organization anticipates them to bear.

Double Reporting Lines: Newcomers discover this organizational culture troublesome as well as tough to manage especially as dotted line connections are meant to be weaker generally and also unbiased setting and also efficiency assessment is still done by the solid line supervisor. This means that novices can lose quality about their particular roles and goals specifically as populated line coverage does not maintain them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had actually been guessed that the latter would take Krasnow's setting came as a blow to her spirits. Lewis might have been qualified as well as proper for the work however the truth that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Task Insecurity: Anxiety and also insecurity can be determined as 2 significant issues that Lewis would certainly be taking care of specifically as the merging has actually now be cancelled and 2 senior executives of the advertising and marketing division would certainly be leaving. The whole responsibility of the department would be falling on Lewis's shoulders that would certainly not just supervise of brining regarding a social adjustment yet would certainly likewise have to show herself in her brand-new duty.

Inappropriate Administration Style of Leader: Lewis's management design and also its conflict with the marketing department's function can additionally be seen as an OB obstacle especially as she has actually been utilized to handling problems in the procedures division where workers are educated to concentrate on procedures and also get them right. The advertising department on the various other hand can be seen as a group of people who are utilized to being supported by Krasnow who concentrated much more on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental disputes in between 3 divisions, advertising, merchandizing and also procedures respectively over the allotment of the advertising and marketing mix can be identified as an additional OB worry. Although the marketing department does not share the exact same vision as the various other 2 departments regarding the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing as well as procedures divisions do not agree over the marketing mix allotment among each other either.

Disintegration in Advertising Division: Fragmentation between the advertising and marketing departments can be recognized as an additional OB issue which could require more focus. The truth that the marketing and advertising areas in the advertising department are disconnected is preventing both divisions from obtaining from each various other's experience and also proficiency. Assimilation of advertising with merchandising and also procedures would become more difficult if the marketing division itself is disintegrated which can be one more possible OB worry.

Erie Thames Powerlines The Hybrid Truck Decision Analysis

Numerous concepts have been made use of to describe the situations to get additional clarity about the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that staffs are easy and lazy, have little passion and withstand adjustment. The hard variation of this concept highlighted threat, tight controls, dangers and also penalties. Gradually it creates low productivity, refined sabotage and also competition (Deal, 2003). The scenario at Erie Thames Powerlines The Hybrid Truck Decision is not totally adhering to Concept X, it can be seen that brand-new hires are locating this atmosphere instead difficult which may eventually lead to a better disposition of the monitoring towards Concept X. According to McGregor's supported view, which he called Concept Y, the crucial task of the management is to prepare organizational problems to ensure that people can attain their own objectives best by guiding their efforts in the direction of organizational benefits. If people discover no fulfillment in their work, the management would certainly have little option but to rely upon concept X as well as outside control (Offer, 2003). Also while examining Lewis's administration style, theory X might have been suitable in the procedures division to some extent however the Advertising division would call for reliance on Theory Y so as to get the creativity and also creativity from the groups.

Tuckman's Synergy Theory: As far as Lewis's worry regarding bringing consistency in between the marketing as well as marketing division is concerned, this would originally lead to contrast as talked about by Bruce Tuckman in his 'Team effort Concept'. By incorporating the advertising and marketing and marketing division's job, there may be the same preliminary detach which might lead to the 2nd phase of 'storming' where the groups challenge one another.

When individuals are presented with adjustment, they get in phase one and also so there may be feelings like unhappiness, uncertainty, frustration, anger, worry, denial and disorientation.The situation at the advertising and marketing division of Erie Thames Powerlines The Hybrid Truck Decision is similar so Lewis can get comfy with the suggestion that it is not remarkable habits. It is during this phase that Lewis will certainly have to provide advice to the division so that they can find a feeling of direction. It can be seen how Krasnow has already made this change much easier by making Lewis obtain included in the division a year prior to his real departure.
Vrio Analysis
Maslow's Need pecking order: The OB issue related to instability at the office has actually been caused firstly by the change in management as well as secondly by the truth that the merger will certainly no longer be initiated. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has reviews the relevance of 'security requires as being a reduced level requirement of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel secure and untouched' goes to the 2nd degree of requirements. Before a staff member can be made to establish psychologically, he needs to have his 'Physiological 'and also 'Security' requires fulfilled. This indicates that unless the employees are made to feel safe and secure about their existing work status in Erie Thames Powerlines The Hybrid Truck Decision they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Erie Thames Powerlines The Hybrid Truck Decision Case Study



Effects of Analysis.

The OB analysis has looked at numerous concepts to recognize just how to cope with the existing situation available. The adhering to three alternatives have actually been proposed to aid Lewis handle the organizational obstacles in the advertising and marketing department. Each of these alternatives has actually been suggested for alleviating the shift needed to bring the advertising and marketing department in accordance with the requirements of the market and for making the cultural modification that would certainly follow once the current leader leaves.

Integration of marketing and advertising functions. Separating Adverting as well as Production functions. Integration of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Combination of Advertising & Marketing Functions: The in-house advertising and marketing agency of Erie Thames Powerlines The Hybrid Truck Decision is currently stamina for the company in terms of saving up on overheads connected to marketing and promo. Because no brand-new recruitment has been done after Bridget Cole's departure with the coverage line being directly designated to Krasnow for the advertising function, this is a favorable possibility for incorporating the advertising and marketing features. Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merging days has competence in business-to-business advertising in addition to company and also retail advertising experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to manage both advertising and marketing features.

The benefit of this strategy is that it will incorporate the two features while lowering the requirement for working with an extra resource for advertising. Lewis would be heading the advertising and marketing division and also in any kind of case her replacement would be needed for the present duty that she is performing. The disadvantage of this option is that external hiring might cause animosity from interior employees that might be looking at the position of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting as well as Production: Offered the competitive pressures and high top quality work required from the advertising company, it is suggested that Lewis must allow the production unit to be a different function from the advertising and marketing unit. Considering that many advertising companies had these 2 features as separate units, it makes more feeling to comply with the norm.

Integration of Marketing with Operations: Given that Lewis is currently taking treatment of the marketing as well as operations divisions all at once; it makes sense to incorporate the two functions because she has been efficiently taking care of both ends. The reality that Lewis has to adjust her administration design for the advertising and marketing department recommends that these two divisions would certainly be culturally varied.

Referral.



An assessment of the three options shows that integration of advertising and also procedures would not be a practical move due to the huge differences in between the two divisions despite the fact that presently Lewis is dealing with both. While splitting up of the manufacturing function may have been a beneficial action for the advertising division, the fact that it would certainly mean positioning a 3rd function under Lewis's wing indicates this need to be stayed clear of. The assimilation of the advertising division is the best choice in terms of obtaining the ideal arise from the department. An activity prepare for this option is discussed below.

Action Plan.
Recommendation
Lewis will take over the function 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 area as SVP of marketing and advertising.

Production feature will remain component of advertising and marketing under advertising feature.

Lewis will certainly separate herself from procedures.

A democratic management design with staff member empowerment will be made use of in marketing department.

Open up door policy and also emphasis on cross departmental interaction will certainly be aimed at getting rid of disharmony.

Contingency strategy.

If the combination does not exercise as intended, a contingency strategy would certainly adhere to which would divide the production function from the advertising and marketing function to decrease 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. In that case the production feature will most definitely be separated by placing it under an SVP manufacturing.