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Hamilton Test Systems Inc Case Study Analysis

Background and Facts

Hamilton Test Systems Inc a workplace products retailer for little and also average sized businesses has actually just recently been associated with preparing for a merger with its competitor House Deport, which has actually affected efficiency levels in departmentswith the elderly manager associated with lawful complications presented by the federal Trade Commission. With the Advertising Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the function in the future. With challenges in the type of a possible cultural change as well as low employee morale, the company needs a full reengineering effort at the advertising and marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The potential social adjustment at the advertising division of Hamilton Test Systems Inc is raising uncertainty in the workplace causing different difficulties 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 influencing strategic choices because Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Commission's treatment in the process. Provided the reality that the store has a worldwide presence with branches in UK, USA, Canada and Germany, political consider each of these countries may be able to impact efficiency or strategic objectives. Federal Trade Payment's antitrust suit against the merger used up important time of the organization's elderly administration recommending that 'political' factors can have major implications for an international organisation.

Economic Factors: Financial factors such as the emergence of local business in the worldwide circumstance suggest that Hamilton Test Systems Inc is prospering in an environment where there is potential development of companies. Fact that store customers are primarily looking for office materials for home offices recommends that the market has a climbing trend of business owners and also residence based companies.

Social factors: Social fads in the economic situation show that clients are trying to find benefit along with attractive prices. Marketing research shows how the customer for Hamilton Test Systems Inc lacks understanding concerning locating solutions which can offer a mix of ease as well as inexpensive.

Technological factors: Innovation plays an important duty in Hamilton Test Systems Inc's service strategy particularly as the company is piloting Modern technology centers which would offer technology sales and also support in the type of memory upgrades, outer installments. (Recap of PEST in appendix 2).

OB Issues and Manifestations.

Numerous underlying Organizational Habits problems can be seen in Hamilton Test Systems Inc's case as highlighted in this area.

Concerns about social change: There is apprehension regarding a cultural adjustment that would occur when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with most of the personnel currently showing unhappiness over this prospective move. This anticipated change has actually produced stress in the office which has actually been coupled with the past stress of preparing the company for a prospective merging with House Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is lack of personnel that can match the difficult setting of a hectic company. Not just does this cause problem in finding the appropriate people, it puts tension on brand-new hires as can not withstand the speed as well as pressure that the company anticipates them to bear.

Twin Coverage Lines: Newcomers discover this business society cumbersome as well as challenging to manage especially as populated line connections are meant to be weaker in general and also unbiased setting and performance assessment is still done by the solid line manager. This implies that newbies can shed clarity regarding their particular functions and also goals specifically as populated line reporting does not keep them in straight interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles despite the fact that it had actually been hypothesized that the last would take Krasnow's placement came as a blow to her morale. Lewis might have been qualified and also appropriate for the task but the fact that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the reason for Coles' resignation from solutions.

Fear & Work Instability: Worry and instability can be determined as 2 significant worries that Lewis would certainly be handling especially as the merging has actually currently be terminated and two elderly executives of the marketing division would be leaving. The entire duty of the department would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining concerning a cultural adjustment but would certainly likewise have to verify herself in her new function.

Incompatible Management Design of Leader: Lewis's administration design and its incompatibility with the advertising and marketing department's function can likewise be seen as an OB difficulty especially as she has been utilized to managing problems in the procedures division where employees are instructed to focus on procedures as well as get them. The marketing division on the other hand can be viewed as a team of people who are made use of to being supported by Krasnow who concentrated extra on result than processes.

Interdepartmental Disputes: Interdepartmental disputes between 3 divisions, advertising and marketing, merchandizing as well as operations respectively over the allocation of the advertising and marketing mix can be identified as one more OB concern. The advertising division does not share the very same vision as the various other two divisions pertaining to the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing as well as procedures departments do not concur over the advertising and marketing mix allotment amongst one an additional either.

Fragmentation in Marketing Division: Disintegration in between the marketing and advertising divisions can be identified as an additional OB issue which might need more interest. The reality that the marketing and advertising areas in the advertising department are disconnected is stopping both divisions from getting from each various other's experience and also proficiency. Combination of advertising and marketing with retailing and procedures would end up being more difficult if the advertising and marketing division itself is broken down which can be one more possible OB issue.

Hamilton Test Systems Inc Analysis

Various theories have actually been made use of to describe the situations to obtain further clearness regarding the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors think that subordinates are passive and also careless, have little passion as well as resist change. The situation at Hamilton Test Systems Inc is not completely adhering to Theory X, it can be seen that new hires are locating this setting instead stressful which might at some point lead to a greater disposition of the management towards Concept X. Even while analyzing Lewis's administration design, concept X might have been suitable in the procedures department to some degree however the Advertising and marketing division would call for reliance on Concept Y in order to obtain the creative thinking and also originality from the teams.

Tuckman's Team effort Concept: As much as Lewis's issue regarding bringing consistency between the marketing and also advertising and marketing department is worried, this would initially lead to clash as discussed by Bruce Tuckman in his 'Synergy Theory'. By incorporating the advertising and marketing as well as advertising and marketing department's job, there might be the very same preliminary disconnect which can lead to the second phase of 'storming' where the teams test one an additional.

When individuals are offered with change, they enter phase one and so there may be feelings like sadness, uncertainty, aggravation, anger, worry, rejection as well as disorientation.The circumstance at the advertising division of Hamilton Test Systems Inc is comparable so Lewis can obtain comfy with the idea that it is not remarkable behavior. It is during this phase that Lewis will have to offer guidance to the division so that they can locate a feeling of direction. It can be seen exactly how Krasnow has already made this change less complicated by making Lewis obtain entailed in the department a year prior to his actual departure.
Vrio Analysis
Maslow's Need power structure: The OB problem pertaining to insecurity at the workplace has actually been caused to start with by the adjustment in administration and secondly by the reality that the merger will no more be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has discusses the significance of 'protection needs as being a reduced degree requirement of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to feel safe and secure and out of danger' goes to the 2nd degree of requirements. Before a staff member can be made to create mentally, he requires to have his 'Physiological 'and also 'Safety and security' requires met. This shows that unless the employees are made to feel safe and secure regarding their current employment status in Hamilton Test Systems Inc they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Hamilton Test Systems Inc Case Study



Effects of Analysis.

The OB analysis has actually considered various theories to comprehend how to deal with the existing circumstance handy. The complying with 3 choices have actually been suggested to assist Lewis take care of the organizational difficulties in the marketing division. Each of these alternatives has actually been proposed for reducing the transition required to bring the advertising division in accordance with the requirements of the market as well as for making the social change that would certainly adhere to when the existing leader leaves.

Combination of advertising and marketing functions. Dividing Adverting and also Manufacturing features. Combination of Marketing with Workflow.

Assessment of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis during the earlier merging days has know-how in business-to-business marketing along with firm as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both marketing and marketing functions.

The benefit of this approach is that it will incorporate the two features while decreasing the requirement for hiring an additional source for advertising. Lewis would be heading the advertising and marketing department as well as in any case her replacement would be needed for the existing duty that she is performing. The disadvantage of this choice is that exterior hiring may cause resentment from interior personnel that might be looking at the placement of EVP after Lewis takes over Krasnow's position.

Dividing Adverting as well as Production: Offered the competitive stress and high top quality work called for from the marketing agency, it is advised that Lewis should enable the manufacturing system to be a different function from the marketing system. Considering that the majority of advertising agencies had these two features as separate devices, it makes even more sense to follow the standard.

Integration of Marketing with Procedures: Considering that Lewis is already looking after the advertising and also operations divisions all at once; it makes good sense to incorporate the two features considering that she has actually been effectively caring for both ends. The fact that both divisions currently have significant distinctions over allowance of resources suggests that this combination may be able to cause harmony particularly as Lewis would be heading both ends.However there are different disadvantages of this move especially as it would put excessive worry over Lewis's shoulders. The reality that Lewis has to adjust her management design for the advertising department suggests that these two departments would be culturally varied. Lewis may not be able to apply one kind of management design to both divisions which could result in inadequacy in either one of the two functions.

Referral.



An analysis of the three options indicates that combination of marketing and operations would not be a possible move due to the huge distinctions in between both divisions despite the fact that currently Lewis is managing both. While separation of the manufacturing feature may have been a desirable step for the advertising and marketing division, the fact that it would certainly mean putting a 3rd feature under Lewis's wing indicates this ought to be avoided also. The combination of the advertising and marketing department is the most effective option in terms of getting the optimal arise from the department. An activity plan for this alternative is reviewed listed below.

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

Marketing and advertising functions would be combined.

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

Manufacturing feature will remain part of advertising and marketing under advertising feature.

Lewis will divide herself from operations.

A democratic leadership design with worker empowerment will be utilized in marketing department.

Open door plan as well as emphasis on cross departmental communication will certainly be aimed at removing dissonance.

Contingency plan.

If the integration does not work out as intended, a contingency plan would follow which would divide the manufacturing feature from the marketing function to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising division without an SVP. In that case the production function will most definitely be divided by putting it under an SVP manufacturing.