Background and Facts
Fortress Investment Group an office supplies merchant for tiny as well as average sized services has actually just recently been involved in preparing for a merging with its rival Home Deport, which has actually influenced performance degrees in departmentswith the elderly manager involved in lawful complications presented by the federal Profession Payment. With the Advertising and marketing Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the near future. With challenges in the type of a potential cultural adjustment as well as reduced worker morale, the company requires a complete reengineering initiative at the advertising and marketing department.Problem Statement
The possible cultural change at the advertising and marketing department of Fortress Investment Group is raising uncertainty in the workplace causing various difficulties for the Jeannie Lewis that would be changing the head of the department in one year. nalysis
PEST analysis
Political Factors: Political factors play a significant function in impacting calculated choices because Stapes Inc. needed to abandon its strategies of merging with Office Deport after the Federal Profession Compensation's intervention while doing so. Provided the truth that the store has a worldwide visibility with branches in UK, U.S.A., Canada and Germany, political consider each of these countries may have the ability to affect efficiency or strategic goals. Federal Trade Commission's antitrust fit versus the merger occupied valuable time of the organization's elderly management suggesting that 'political' factors can have serious effects for a global organisation.
Economic Factors: Economic factors such as the introduction of small companies in the international scenario recommend that Fortress Investment Group is flourishing in a setting where there is possible development of businesses. Along with this, truth that store clients are mainly seeking office materials for home offices suggests that the marketplace has a rising pattern of business owners and home services.
Social factors: Social fads in the economy reveal that clients are seeking comfort in addition to appealing prices. Market research shows how the customer for Fortress Investment Group does not have understanding about discovering remedies which can offer a mix of comfort as well as inexpensive.
Technical factors: Innovation plays an important duty in Fortress Investment Group's service approach specifically as the organization is piloting Technology facilities which would use innovation sales and also assistance in the form of memory upgrades, peripheral installations. (Summary of PEST in appendix 2).
OB Issues and Symptoms.
Several underlying Business Actions concerns can be seen in Fortress Investment Group's case as highlighted in this section.
Worries about cultural adjustment: There is apprehension concerning a cultural change that would take place as soon as Todd Krasnow leaves from his setting as the Executive Vice President of Advertising And Marketing with most of the staff members already revealing unhappiness over this prospective step. This predicted modification has developed stress in the work environment which has been paired with the previous stress and anxiety of preparing the firm for a possible merging with Home Deport.
Stressful Job Setting for Newcomers: There is shortage of personnel that can match the stressful environment of a hectic company. Not just does this result in problem in discovering the right individuals, it puts stress and anxiety on brand-new hires as can not withstand the pace and also pressure that the organization expects them to birth.
Double Reporting Lines: Novices find this organizational society difficult and also tough to deal with specifically as populated line partnerships are implied to be weak as a whole as well as objective setup and also performance evaluation is still done by the strong line supervisor. This means that beginners might shed clearness regarding their respective functions and also objectives specifically as populated line reporting does not maintain them in direct communication with the solid line supervisors.
Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had been speculated that the last would certainly take Krasnow's setting came as an impact to her morale. Lewis may have been capable as well as appropriate for the job yet the reality that Kransnow's departure would make Coles a direct report to Lewis may have been the factor for Coles' resignation from services.
Worry & Task Instability: Anxiety as well as insecurity can be recognized as 2 major worries that Lewis would be taking care of particularly as the merger has now be terminated and two senior executives of the advertising division would be leaving. The whole duty of the department would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining regarding a cultural adjustment but would certainly likewise need to confirm herself in her brand-new role.
Incompatible Management Design of Leader: Lewis's monitoring style and its incompatibility with the marketing department's function can likewise be seen as an OB challenge especially as she has actually been used to dealing with problems in the operations department where workers are instructed to focus on processes and get them right. The marketing department on the other hand can be seen as a group of individuals that are made use of to being nurtured by Krasnow that focused extra on result than procedures.
Interdepartmental Differences: Interdepartmental disputes in between 3 departments, advertising and marketing, merchandizing and procedures specifically over the allotment of the advertising mix can be recognized as one more OB worry. Although the advertising division does not share the very same vision as the various other 2 departments concerning the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and also operations divisions do not agree over the advertising mix allowance amongst one another either.
Fragmentation in Advertising And Marketing Department: Fragmentation between the advertising and marketing departments can be recognized as one more OB concern which might need additional attention. The fact that the advertising and marketing areas in the advertising department are detached is avoiding both divisions from acquiring from each various other's experience and also proficiency. Combination of marketing with retailing and operations would certainly become harder if the marketing department itself is disintegrated which can be another possible OB concern.
Fortress Investment Group Analysis
Different theories have actually been utilized to discuss the conditions to get more quality about the situation handy.
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors believe that juniors are easy as well as lazy, have little passion and stand up to modification. The situation at Fortress Investment Group is not completely complying with Concept X, it can be seen that new hires are finding this environment rather difficult which may eventually lead to a higher inclination of the management towards Theory X. Even while assessing Lewis's management design, concept X may have been appropriate in the operations department to some level but the Advertising and marketing department would certainly need dependence on Theory Y in order to get the creative thinking as well as originality from the teams.
Tuckman's Team effort Concept: As far as Lewis's problem about bringing harmony in between the marketing and advertising division is worried, this would originally result in clash as talked about by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's concept received appendix 3, during the first stage of team advancement, people might not bond, as they are active discovering their place in the team. By integrating the marketing and advertising division's work, there may coincide initial separate which could result in the 2nd phase of 'storming' where the teams test one another. It is just throughout the third stage or 'norming' when they would come together to share suggestions before the team can bring about harmony in the 4th stage 'executing'.
When individuals are offered with adjustment, they get in stage one as well as so there might be emotions like despair, unpredictability, disappointment, temper, worry, rejection as well as disorientation.The situation at the advertising and marketing department of Fortress Investment Group is similar so Lewis can obtain comfy with the concept that it is not phenomenal habits. It is throughout this stage that Lewis will have to offer advice to the department so that they can discover a sense of direction. It can be seen how Krasnow has currently made this change much easier by making Lewis get included in the department a year prior to his actual departure.
Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has talks about the importance of 'safety and security needs as being a lower level demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel secure and also out of risk' is at the 2nd degree of demands. Before a staff member can be made to create psychologically, he requires to have his 'Physical 'as well as 'Safety and security' needs fulfilled.
SWOT Analysis for Fortress Investment Group Case Study
Ramification of Analysis.
The OB analysis has actually considered different theories to understand just how to cope with the existing circumstance handy. The complying with three choices have actually been suggested to aid Lewis take care of the organizational challenges in the advertising and marketing department. Each of these options has actually been recommended for relieving the shift needed to bring the advertising and marketing division according to the needs of the marketplace as well as for making the social modification that would certainly follow when the existing leader leaves.
Integration of marketing and advertising features. Separating Adverting and Production functions. Integration of Advertising And Marketing with Operations.
Examination of Alternatives.
Judith Shapiro who has earlier been interviewed by Lewis during the earlier merging days has competence in business-to-business advertising along with agency as well as retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both marketing and advertising and marketing functions.
The benefit of this method is that it will certainly incorporate both functions while decreasing the demand for hiring an extra resource for advertising. Along with this, Lewis would certainly be heading the advertising department and regardless her substitute would be required for the present function that she is executing. The downside of this alternative is that external hiring might cause resentment from inner personnel who might be eying the position of EVP after Lewis takes control of Krasnow's setting.
Dividing Adverting and Production: Provided the competitive stress and also high top quality work needed from the advertising and marketing agency, it is advised that Lewis must permit the production device to be a separate function from the advertising and marketing device. Considering that many advertising and marketing companies had these two functions as separate units, it makes more sense to comply with the standard.
Assimilation of Marketing with Operations: Because Lewis is already taking care of the advertising as well as procedures departments simultaneously; it makes sense to incorporate the 2 functions given that she has been successfully taking care of both ends. The reality that Lewis has to adapt her monitoring style for the marketing department recommends that these two departments would certainly be culturally varied.
Referral.
An examination of the three alternatives indicates that assimilation of advertising and also operations would certainly not be a viable step due to the large differences in between both departments despite the fact that currently Lewis is dealing with both. While separation of the manufacturing function might have been a desirable move for the marketing department, the reality that it would certainly imply positioning a 3rd feature under Lewis's wing indicates this must be stayed clear of. The assimilation of the advertising and marketing division is the best option in terms of getting the optimum arise from the division. An action plan for this alternative is talked about below.
Activity Plan.
Lewis will take control of the duty of EVP Advertising after Krasnow leaves.
Advertising and Marketing functions would be combined.
Judith Shapiro will certainly be worked with to take Lewis's location as SVP of advertising and marketing.
Production feature will continue to be part of advertising and marketing under marketing feature.
Lewis will separate herself from operations.
A democratic leadership style with worker empowerment will certainly be utilized in advertising department.
Open door plan and also emphasis on cross departmental interaction will be focused on removing disharmony.
Contingency plan.
If the integration does not work out as intended, a contingency plan would certainly follow which would certainly separate the production feature from the advertising and marketing feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing division without an SVP. In that case the production function will definitely be divided by positioning it under an SVP production.