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Erie Thames Powerlines The Hybrid Truck Decision Case Study Analysis

CASE ANALYSIS

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Background and Facts

Erie Thames Powerlines The Hybrid Truck Decision an office materials store for little as well as moderate sized businesses has actually just recently been associated with planning for a merging with its competitor Home Deport, which has affected efficiency levels in departmentswith the elderly supervisor associated with legal complications put forth by the federal Trade Commission. With the Marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the near future. With difficulties in the form of a potential social adjustment and low worker spirits, the organization is in need of a full reengineering effort at the advertising division.

Problem Declaration
Porter's 5 Forces Analysis
The possible social modification at the advertising and marketing department of Erie Thames Powerlines The Hybrid Truck Decision is boosting unpredictability in the workplace resulting in various challenges for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting calculated choices considering that Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Profession Compensation's treatment in the process. Given the reality that the store has an international presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations might be able to affect efficiency or critical objectives. Federal Trade Commission's antitrust match versus the merger used up valuable time of the company's senior management recommending that 'political' factors can have serious implications for an international business.

Economic Factors: Economic factors such as the emergence of local business in the global scenario suggest that Erie Thames Powerlines The Hybrid Truck Decision is flourishing in a setting where there is potential growth of businesses. In addition to this, reality that store customers are primarily trying to find office supplies for home offices suggests that the market has a rising trend of business owners and home services.

Social factors: Social fads in the economic climate show that consumers are looking for ease in addition to appealing prices. Marketing research shows how the client for Erie Thames Powerlines The Hybrid Truck Decision lacks recognition concerning finding solutions which can supply a mix of convenience as well as affordable.

Technological factors: Innovation plays a crucial role in Erie Thames Powerlines The Hybrid Truck Decision's business method especially as the organization is piloting Technology centers which would supply technology sales and also support in the form of memory upgrades, outer setups. (Summary of PEST in appendix 2).

OB Issues as well as Symptoms.

Numerous underlying Organizational Behavior issues can be seen in Erie Thames Powerlines The Hybrid Truck Decision's case as highlighted in this section.

Concerns regarding cultural modification: There is uneasiness concerning a social adjustment that would occur once Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising with the majority of the staff members already showing discontent over this potential action. This expected change has produced anxiety in the workplace which has been paired with the previous stress and anxiety of preparing the company for a potential merging with Home Deport.
Pest Analysis
Stressful Job Atmosphere for Newcomers: There is scarcity of personnel that can match the stressful atmosphere of a hectic company. Not only does this cause trouble in discovering the ideal individuals, it places stress on brand-new hires as can not withstand the pace and also pressure that the organization anticipates them to bear.

Dual Reporting Lines: Newbies discover this organizational society troublesome and difficult to deal with specifically as populated line partnerships are implied to be weaker in general and also objective setting and efficiency assessment is still done by the strong line manager. This means that novices could shed clearness regarding their respective functions and also goals specifically as populated line coverage does not keep them in straight interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles despite the fact that it had actually been hypothesized that the latter would take Krasnow's placement came as an impact to her morale. Lewis might have been qualified and proper for the work however the reality that Kransnow's separation would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Work Instability: Anxiety and instability can be determined as 2 major issues that Lewis would be dealing with specifically as the merger has currently be terminated and 2 elderly execs of the advertising and marketing department would certainly be leaving. The whole duty of the department would certainly be dropping on Lewis's shoulders that would not just be in charge of brining regarding a cultural modification however would also have to confirm herself in her new function.

Inappropriate Management Design of Leader: Lewis's monitoring style as well as its incompatibility with the advertising division's function can likewise be seen as an OB challenge specifically as she has been utilized to managing problems in the procedures division where employees are instructed to concentrate on processes and also obtain them. The marketing department on the other hand can be viewed as a team of individuals who are used to being nurtured by Krasnow who concentrated a lot more on output than processes.

Interdepartmental Disputes: Interdepartmental arguments between three departments, marketing, merchandizing as well as procedures specifically over the allowance of the advertising and marketing mix can be identified as one more OB issue. Although the advertising and marketing department does not share the same vision as the various other 2 departments concerning the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and also procedures divisions do not agree over the advertising mix allotment amongst one another either.

Disintegration in Advertising Department: Disintegration in between the advertising and marketing divisions can be determined as another OB problem which could require more attention. The reality that the marketing and advertising areas in the advertising and marketing division are separated is stopping both departments from gaining from each various other's experience as well as expertise. Combination of marketing with merchandising and procedures would come to be more difficult if the advertising division itself is broken down which can be another potential OB issue.

Erie Thames Powerlines The Hybrid Truck Decision Analysis

Various theories have been used to describe the scenarios to get additional quality about the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that juniors are easy as well as careless, have little aspiration as well as stand up to adjustment. The situation at Erie Thames Powerlines The Hybrid Truck Decision is not completely complying with Concept X, it can be seen that new hires are locating this setting rather difficult which may eventually lead to a higher disposition of the management in the direction of Concept X. Also while analyzing Lewis's monitoring design, concept X might have been suitable in the operations division to some degree yet the Marketing department would require dependence on Theory Y in order to obtain the creative thinking as well as creativity from the groups.

Tuckman's Team effort Theory: As for Lewis's worry concerning bringing consistency in between the advertising and marketing department is worried, this would originally lead to contrast as gone over by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, throughout the initial stage of team growth, people might not bond, as they are busy locating their area in the group. By incorporating the advertising and marketing division's work, there may coincide initial detach which can lead to the second phase of 'storming' where the groups challenge one another. Nonetheless, it is only throughout the 3rd stage or 'norming' when they would collaborate to share concepts before the team can bring about synergy in the 4th stage 'executing'.

Bridges' Shift Version: Based On William Bridge's concept (appendix 4), people are quite uncomfortable with modification, which is apparent by the circumstance at Erie Thames Powerlines The Hybrid Truck Decision The scenario can be seen as a normal training course of life if is examined according to Bridge's theory where he clarifies that people undergo 3 phases of transition when they experience adjustment. 'End, shedding and Releasing', The Neutral Zone and 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they get in phase one and so there may be emotions like despair, unpredictability, disappointment, temper, fear, denial as well as disorientation.The situation at the marketing division of Erie Thames Powerlines The Hybrid Truck Decision is comparable so Lewis can obtain comfortable with the idea that it is not extraordinary habits. In the 2nd stage, there may be a requirement to link the gap between the brand-new and old society so Lewis may have to encounter this ordeal as soon as Krasnow leaves. There might be reduced morale and reduced efficiency at this stage which ought to not be taken as a setback. It is throughout this phase that Lewis will certainly have to give guidance to the division to make sure that they can discover an orientation. It can be seen exactly how Krasnow has already made this transition simpler by making Lewis get associated with the division a year before his actual separation. According to Bridges' Model, stage three will bring about openness to understanding, High power and also commitment as people will embrace the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has talks about the value of 'security requires as being a reduced level demand of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel protected and also out of danger' is at the 2nd level of needs. Before an employee can be made to develop emotionally, he requires to have his 'Physical 'and 'Security' requires fulfilled.

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



Implication of Analysis.

The OB analysis has considered numerous concepts to comprehend how to cope with the existing scenario available. The adhering to 3 alternatives have actually been proposed to assist Lewis take care of the organizational difficulties in the advertising division. Each of these choices has been proposed for relieving the transition required to bring the advertising and marketing department according to the demands of the marketplace and also for making the cultural change that would certainly adhere to when the present leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and Production functions. Integration of Marketing with Procedures.

Evaluation of Alternatives.

Combination of Marketing & Marketing Functions: The in-house advertising company of Erie Thames Powerlines The Hybrid Truck Decision is currently strength for the organization in regards to conserving up on expenses associated with marketing and promotion. Considering that no new recruitment has actually been done after Bridget Cole's separation with the reporting line being directly designated to Krasnow for the advertising and marketing function, this is a desirable possibility for integrating the advertising and marketing features. Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merger days has know-how in business-to-business advertising along with firm as well as retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to take care of both marketing and advertising features.

The benefit of this technique is that it will incorporate both features while reducing the requirement for working with an extra source for marketing. Along with this, Lewis would certainly be heading the advertising and marketing division and regardless her replacement would certainly be required for the present function that she is executing. The negative aspect of this alternative is that external hiring might bring about resentment from interior employees that may be considering the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Production: Provided the affordable stress as well as high top quality work needed from the advertising and marketing company, it is recommended that Lewis must enable the manufacturing system to be a different feature from the marketing device. Given that many advertising companies had these 2 features as separate units, it makes more feeling to follow the norm.

Assimilation of Advertising with Operations: Because Lewis is already taking treatment of the advertising as well as procedures departments at the same time; it makes feeling to integrate the two functions given that she has actually been effectively taking treatment of both ends. The truth that Lewis has to adapt her administration design for the advertising department suggests that these 2 departments would certainly be culturally varied.

Referral.



An analysis of the 3 options shows that combination of advertising and procedures would not be a practical relocation due to the substantial distinctions in between both departments despite the fact that presently Lewis is managing both. While separation of the manufacturing feature might have been a desirable relocation for the advertising and marketing division, the truth that it would certainly imply putting a 3rd feature under Lewis's wing means this need to be avoided. The combination of the advertising division is the very best choice in terms of obtaining the ideal results from the division. An activity prepare for this option is reviewed below.

Activity Plan.
Recommendation
Lewis will take over the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

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

Manufacturing function will certainly remain component of marketing under advertising function.

Lewis will certainly separate herself from operations.

A democratic management design with employee empowerment will be utilized in marketing department.

Open up door policy as well as emphasis on cross departmental interaction will certainly be focused on removing disharmony.

Backup strategy.

If the combination does not work out as prepared, a backup strategy would follow which would certainly divide the production 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 hired, Lewis will be heading the marketing division without an SVP. Because case the manufacturing feature will absolutely be separated by putting it under an SVP manufacturing.