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Guidant Corp Shaping Culture Through Systems Case Study Analysis

Background and Facts

Guidant Corp Shaping Culture Through Systems a workplace materials merchant for small and also average sized services has lately been associated with planning for a merger with its rival Residence Deport, which has actually influenced efficiency degrees in departmentswith the elderly manager involved in legal problems presented by the government Profession Compensation. With the Marketing Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the role in the future. With challenges in the form of a potential social adjustment and reduced worker spirits, the company is in need of a total reengineering effort at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising division of Guidant Corp Shaping Culture Through Systems is boosting uncertainty in the working environment causing various obstacles for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting tactical choices since Stapes Inc. needed to abandon its strategies of combining with Workplace Deport after the Federal Trade Payment's intervention in the process. Offered the fact that the shop has a global visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations might have the ability to impact performance or calculated objectives. Federal Profession Compensation's antitrust fit versus the merging used up important time of the company's senior monitoring recommending that 'political' factors can have severe ramifications for a worldwide company.

Economic Factors: Economic factors such as the appearance of small companies in the worldwide circumstance recommend that Guidant Corp Shaping Culture Through Systems is flourishing in an environment where there is prospective development of businesses. Reality that store clients are primarily looking for workplace materials for home workplaces suggests that the market has a rising fad of business owners as well as home based services.

Social factors: Social fads in the economic climate show that customers are searching for convenience as well as eye-catching rates. Marketing research shows how the consumer for Guidant Corp Shaping Culture Through Systems lacks awareness regarding discovering options which can use a mix of ease as well as inexpensive.

Technological factors: Technology plays a crucial duty in Guidant Corp Shaping Culture Through Systems's company technique specifically as the company is piloting Technology centers which would certainly use technology sales and support in the kind of memory upgrades, peripheral setups. (Summary of PEST in appendix 2).

OB Issues and Effects.

Several underlying Organizational Habits issues can be seen in Guidant Corp Shaping Culture Through Systems's case as highlighted in this area.

Concerns concerning social modification: There is uneasiness regarding a cultural modification that would happen once Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with a lot of the staff members already revealing discontent over this potential action. This anticipated change has produced stress and anxiety in the work environment which has actually been coupled with the previous tension of preparing the company for a prospective merger with Home Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is shortage of employees that can match the stressful setting of a fast-paced organization. Not just does this bring about difficulty in locating the right individuals, it places stress on new hires as can not stand up to the rate and also pressure that the organization anticipates them to birth.

Twin Coverage Lines: Novices find this organizational society troublesome and also tough to cope with specifically as populated line partnerships are indicated to be weak generally and also unbiased setup and also efficiency examination is still done by the solid line supervisor. This implies that novices can lose clearness about their corresponding functions and objectives specifically as dotted line reporting does not keep them in straight communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had actually been speculated that the latter would certainly take Krasnow's setting came as a blow to her morale. Lewis may have been capable and also proper for the work yet the fact that Kransnow's departure would make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Work Insecurity: Anxiety and also instability can be determined as 2 significant issues that Lewis would be taking care of especially as the merging has actually currently be terminated and also two elderly executives of the marketing department would certainly be leaving. The entire duty of the department would be falling on Lewis's shoulders that would certainly not simply supervise of brining regarding a social change yet would certainly additionally have to prove herself in her new function.

Inappropriate Monitoring Style of Leader: Lewis's monitoring style and its conflict with the marketing department's duty can likewise be seen as an OB obstacle especially as she has actually been made use of to managing issues in the procedures division where employees are shown to focus on procedures and obtain them right. The marketing department on the various other hand can be viewed as a team of people that are used to being supported by Krasnow that concentrated much more on outcome than procedures.

Interdepartmental Differences: Interdepartmental differences in between 3 divisions, advertising, merchandizing and operations respectively over the allotment of the marketing mix can be determined as another OB problem. The advertising department does not share the very same vision as the various other 2 divisions concerning the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and operations divisions do not agree over the marketing mix allowance amongst one another either.

Disintegration in Marketing Division: Fragmentation in between the marketing and advertising departments can be identified as an additional OB issue which could need additional attention. The truth that the advertising and marketing areas in the advertising and marketing department are separated is avoiding both divisions from getting from each other's experience and also competence. Assimilation of advertising and marketing with merchandising and operations would come to be more difficult if the marketing department itself is broken down which can be another potential OB concern.

Guidant Corp Shaping Culture Through Systems Analysis

Different concepts have been utilized to explain the situations to obtain more clarity regarding the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers believe that juniors are easy and also careless, have little passion as well as stand up to adjustment. The difficult variation of this theory emphasized browbeating, tight controls, threats and punishments. With time it creates reduced productivity, refined sabotage and also competition (Bargain, 2003). Although the situation at Guidant Corp Shaping Culture Through Systems is not totally following Theory X, it can be seen that new hires are finding this environment rather stressful which may eventually lead to a greater inclination of the management towards Concept X. According to McGregor's supported sight, which he called Concept Y, the crucial job of the administration is to set up business problems so that individuals can attain their very own objectives best by directing their efforts towards organizational rewards. If people locate no complete satisfaction in their work, the management would have little option yet to rely on theory X as well as exterior control (Deal, 2003). Even while evaluating Lewis's management style, theory X may have appropriated in the operations division somewhat however the Marketing department would call for dependence on Concept Y to get the imagination and also creativity from the teams.

Tuckman's Team effort Theory: As much as Lewis's worry regarding bringing harmony between the advertising and marketing and also marketing department is worried, this would originally lead to clash as gone over by Bruce Tuckman in his 'Synergy Concept'. By incorporating the advertising as well as advertising department's work, there may be the same first disconnect which could lead to the second phase of 'storming' where the teams test one an additional.

When individuals are provided with adjustment, they enter phase one and also so there may be feelings like sadness, uncertainty, stress, rage, concern, rejection and disorientation.The situation at the advertising and marketing division of Guidant Corp Shaping Culture Through Systems is similar so Lewis can get comfy with the suggestion that it is not phenomenal behavior. It is throughout this stage that Lewis will have to offer advice to the department so that they can discover a feeling of direction. It can be seen just how Krasnow has currently made this transition simpler by making Lewis obtain included in the division a year prior to his real departure.
Vrio Analysis
Maslow's Demand pecking order: The OB concern pertaining to insecurity at the office has been activated first of all by the modification in administration and secondly by the truth that the merger will certainly no more be launched. Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has talks about the value of 'safety requires as being a lower level demand of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel safe and also unharmed' goes to the 2nd degree of demands. Before a worker can be made to develop emotionally, he requires to have his 'Physical 'and also 'Safety and security' requires met. This indicates that unless the employees are made to feel safe and secure regarding their current work status in Guidant Corp Shaping Culture Through Systems they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Guidant Corp Shaping Culture Through Systems Case Study

Implication of Analysis.

The OB analysis has actually taken a look at various concepts to understand exactly how to handle the present situation handy. The adhering to 3 choices have been suggested to assist Lewis manage the business difficulties in the advertising department. Each of these alternatives has been suggested for relieving the shift required to bring the marketing department in accordance with the requirements of the marketplace as well as for making the social modification that would certainly comply with when the current leader leaves.

Integration of advertising and marketing features. Separating Adverting and Manufacturing features. Combination of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merger days has experience in business-to-business advertising along with agency and also retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both advertising as well as advertising features.

The benefit of this technique is that it will incorporate the two functions while reducing the demand for employing an additional resource for marketing. Lewis would be heading the marketing department and in any case her replacement would certainly be required for the current role that she is performing. The negative aspect of this choice is that exterior hiring may produce bitterness from internal employees that might be eying the position of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and also Manufacturing: Provided the competitive pressures and also high quality job required from the ad agency, it is suggested that Lewis should enable the production device to be a separate function from the advertising unit. Considering that most ad agency had these 2 features as separate systems, it makes more feeling to follow the norm. In addition to this, both features may have the ability to concentrate on their core turns on more effectively. Nevertheless, the negative aspect of this technique would be that additional expenses would certainly have to be birthed for establishing different production functions. In addition to this, a production head might need to be worked with which can increase expenses for the company.

Combination of Advertising And Marketing with Workflows: Given that Lewis is currently taking care of the advertising and marketing and procedures divisions at the same time; it makes feeling to integrate the two features given that she has been effectively taking care of both ends. The fact that Lewis has to adapt her administration style for the marketing division suggests that these two departments would certainly be culturally varied.


An evaluation of the three alternatives suggests that integration of advertising and operations would certainly not be a practical action due to the substantial differences between the 2 divisions regardless of the reality that presently Lewis is handling both. While splitting up of the manufacturing feature might have been a desirable step for the advertising department, the fact that it would indicate putting a 3rd feature under Lewis's wing suggests this must be prevented.

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

Advertising and Marketing features would be combined.

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

Manufacturing feature will continue to be component of advertising and marketing under advertising feature.

Lewis will separate herself from operations.

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

Open up door policy and also focus on cross department communication will certainly be aimed at getting rid of discord.

Contingency plan.

If the combination does not work out as intended, a backup strategy would adhere to which would certainly divide the manufacturing function from the marketing feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the production feature will absolutely be divided by putting it under an SVP production.