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Filling A Hole The Reinvestment Fund And Progress Plaza Case Study Analysis

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Filling A Hole The Reinvestment Fund And Progress Plaza Case Study Solution

Background and Facts

Filling A Hole The Reinvestment Fund And Progress Plaza a workplace materials retailer for little as well as medium sized companies has just recently been associated with planning for a merger with its competitor Home Deport, which has influenced performance levels in departmentswith the senior manager involved in lawful problems put forth by the federal Profession Commission. With the Advertising and marketing Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the near future. With challenges in the type of a potential cultural change as well as low staff member morale, the organization wants a full reengineering initiative at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The potential social change at the advertising department of Filling A Hole The Reinvestment Fund And Progress Plaza is increasing unpredictability in the working environment bring about various difficulties 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 major role in influencing calculated decisions considering that Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Trade Compensation's intervention in the process. Given the truth that the store has a worldwide visibility with branches in UK, USA, Canada as well as Germany, political consider each of these countries might be able to affect performance or calculated objectives. Federal Profession Compensation's antitrust match against the merger occupied valuable time of the organization's senior monitoring recommending that 'political' factors can have serious ramifications for a worldwide service.

Economic Factors: Financial factors such as the emergence of local business in the international situation suggest that Filling A Hole The Reinvestment Fund And Progress Plaza is flourishing in an atmosphere where there is possible growth of businesses. Along with this, truth that store consumers are primarily trying to find workplace materials for office suggests that the market has a climbing fad of entrepreneurs as well as home services.

Social factors: Social trends in the economic climate reveal that customers are looking for comfort in addition to attractive rates. Marketing research shows how the client for Filling A Hole The Reinvestment Fund And Progress Plaza lacks awareness concerning finding remedies which can supply a combination of benefit and also low costs.

Technical factors: Modern technology plays an essential role in Filling A Hole The Reinvestment Fund And Progress Plaza's organisation technique particularly as the organization is piloting Modern technology centers which would certainly offer technology sales and also support in the form of memory upgrades, outer installments. (Recap of BUG in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Business Behavior problems can be seen in Filling A Hole The Reinvestment Fund And Progress Plaza's case as highlighted in this area.

Apprehensions about cultural change: There is apprehension regarding a cultural modification that would take place when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising with the majority of the staff members already revealing unhappiness over this prospective action. This expected modification has developed stress and anxiety in the workplace which has actually been combined with the previous tension of preparing the firm for a potential merger with Home Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is shortage of employees that can match the difficult environment of a fast-paced company. Not only does this lead to problem in finding the ideal people, it places anxiety on brand-new hires as can not withstand the speed and pressure that the organization anticipates them to birth.

Dual Reporting Lines: Newcomers discover this organizational culture troublesome and also hard to handle particularly as populated line partnerships are meant to be weak as a whole and objective setup as well as efficiency examination is still done by the strong line manager. This suggests that newcomers might shed clarity regarding their particular duties and purposes especially as populated line coverage does not keep them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had actually been hypothesized that the latter would certainly take Krasnow's position came as an impact to her spirits. Lewis may have been capable and also appropriate for the work however the fact that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Fear & Work Instability: Fear and also insecurity can be determined as two major problems that Lewis would certainly be handling specifically as the merger has actually now be cancelled and also 2 senior executives of the advertising division would be leaving. The entire responsibility of the department would certainly be dropping on Lewis's shoulders who would certainly not just supervise of brining concerning a social change however would likewise need to verify herself in her brand-new function.

Incompatible Management Design of Leader: Lewis's administration style as well as its incompatibility with the advertising and marketing department's role can additionally be seen as an OB obstacle particularly as she has been used to dealing with concerns in the operations department where personnel are instructed to focus on procedures and also get them. The advertising and marketing division on the various other hand can be viewed as a group of individuals that are utilized to being nurtured by Krasnow who concentrated extra on output than processes.

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

Fragmentation in Marketing Division: Fragmentation between the advertising and marketing divisions can be recognized as one more OB concern which might require additional focus. The fact that the advertising and marketing sections in the advertising division are separated is protecting against both departments from acquiring from each other's experience and experience. Combination of advertising and marketing with merchandising and procedures would certainly come to be harder if the advertising department itself is broken down which can be another prospective OB worry.

Filling A Hole The Reinvestment Fund And Progress Plaza Analysis

Different theories have actually been made use of to discuss the situations to get more clarity about the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors believe that staffs are passive as well as lazy, have little aspiration and withstand modification. The circumstance at Filling A Hole The Reinvestment Fund And Progress Plaza is not totally following Concept X, it can be seen that new hires are finding this atmosphere instead stressful which may at some point lead to a greater inclination of the management in the direction of Concept X. Also while examining Lewis's monitoring design, concept X may have been ideal in the operations department to some extent yet the Advertising and marketing division would certainly call for dependence on Concept Y in order to obtain the creative thinking and originality from the groups.

Tuckman's Teamwork Theory: As much as Lewis's issue regarding bringing consistency in between the advertising and marketing and also advertising and marketing department is worried, this would originally lead to clash as gone over by Bruce Tuckman in his 'Teamwork Concept'. By integrating the advertising and marketing and also advertising department's job, there might be the very same preliminary disconnect which might lead to the 2nd phase of 'storming' where the teams test one another.

When people are offered with modification, they go into phase one and also so there may be feelings like unhappiness, unpredictability, disappointment, anger, concern, denial as well as disorientation.The scenario at the advertising division of Filling A Hole The Reinvestment Fund And Progress Plaza is comparable so Lewis can obtain comfy with the idea that it is not phenomenal habits. It is during this stage that Lewis will have to give assistance to the division so that they can locate a feeling of direction. It can be seen just how Krasnow has already made this change simpler by making Lewis get entailed in the division a year before his actual separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has discusses the importance of 'security requires as being a lower degree need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel protected and also out of risk' is at the second degree of requirements. Before an employee can be made to create mentally, he requires to have his 'Physical 'as well as 'Safety and security' requires met.

SWOT Analysis for Filling A Hole The Reinvestment Fund And Progress Plaza Case Study



Implication of Analysis.

The OB analysis has taken a look at various concepts to understand just how to manage the current circumstance available. The adhering to 3 choices have actually been proposed to aid Lewis take care of the business difficulties in the marketing department. Each of these choices has been suggested for reducing the transition needed to bring the marketing department in line with the demands of the market as well as for making the social change that would certainly comply with as soon as the existing leader leaves.

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

Assessment of Alternatives.

Combination of Advertising And Marketing & Advertising Functions: The internal advertising and marketing firm of Filling A Hole The Reinvestment Fund And Progress Plaza is already strength for the organization in regards to conserving up on expenses related to advertising and also promotion. Because no new recruitment has actually been done after Bridget Cole's departure with the reporting line being directly designated to Krasnow for the advertising and marketing function, this is a favorable chance for incorporating the advertising and marketing features. Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merging days has expertise in business-to-business marketing in addition to agency as well as retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to deal with both marketing and advertising features.

The advantage of this method is that it will certainly integrate the two features while minimizing the requirement for employing an extra source for marketing. Lewis would be heading the advertising and marketing division and also in any case her substitute would be needed for the present duty that she is carrying out. The drawback of this option is that exterior hiring might bring about resentment from inner employees who might be considering the position of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and Manufacturing: Offered the competitive pressures and also high top quality job called for from the marketing agency, it is recommended that Lewis should permit the manufacturing device to be a separate function from the marketing device. Because a lot of advertising and marketing firms had these two functions as different systems, it makes more sense to follow the standard.

Assimilation of Marketing with Procedures: Since Lewis is currently dealing with the advertising and also operations divisions at the same time; it makes good sense to incorporate both functions considering that she has been effectively taking care of both ends. The truth that both divisions already have significant differences over allotment of resources recommends that this combination may be able to bring about consistency particularly as Lewis would certainly be heading both ends.However there are different drawbacks of this step especially as it would certainly place excessive concern over Lewis's shoulders. The reality that Lewis has to adapt her monitoring design for the advertising division suggests that these 2 departments would certainly be culturally varied. Lewis might not be able to use one type of management style to both departments which might result in ineffectiveness in either one of the 2 features.

Referral.



An examination of the three choices suggests that combination of advertising and also procedures would not be a feasible action as a result of the substantial distinctions between both divisions despite the fact that presently Lewis is managing both. While separation of the manufacturing feature might have been a desirable action for the advertising and marketing division, the fact that it would suggest positioning a third function under Lewis's wing means this must be avoided. The assimilation of the marketing division is the most effective alternative in regards to getting the ideal arise from the division. An activity plan for this choice is discussed below.

Action Strategy.
Recommendation
Lewis will certainly take over the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Production feature will continue to be part of advertising and marketing under advertising feature.

Lewis will divide herself from procedures.

An autonomous management design with worker empowerment will be utilized in advertising division.

Open up door policy as well as emphasis on cross departmental interaction will be focused on eliminating discord.

Contingency strategy.

If the integration does not work out as planned, a contingency plan would certainly comply with which would separate the production feature from the advertising function to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the marketing division without an SVP. Because case the manufacturing feature will certainly be divided by placing it under an SVP production.