Harbor City Electric Case Study Analysis


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Harbor City Electric Case Study Solution

Background and Facts

Harbor City Electric an office products merchant for small and moderate sized organisations has recently been associated with preparing for a merging with its competitor Residence Deport, which has affected efficiency degrees in departmentswith the elderly supervisor involved in lawful problems presented by the federal Trade Payment. With the Marketing Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the near future. With obstacles in the type of a possible cultural adjustment and reduced employee morale, the organization is in need of a full reengineering effort at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural change at the advertising and marketing division of Harbor City Electric is increasing uncertainty in the working environment leading to numerous obstacles for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting critical decisions considering that Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Trade Payment's treatment while doing so. Offered the fact that the store has a worldwide presence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these countries may be able to impact efficiency or calculated objectives. Federal Profession Commission's antitrust match against the merging occupied important time of the company's senior management recommending that 'political' factors can have severe effects for an international organisation.

Economic Factors: Economic factors such as the introduction of small companies in the international circumstance recommend that Harbor City Electric is thriving in a setting where there is prospective growth of services. Along with this, reality that shop clients are mainly seeking office supplies for home offices recommends that the marketplace has a climbing fad of business owners as well as online companies.

Social factors: Social patterns in the economic climate show that clients are searching for convenience in addition to eye-catching prices. Market research demonstrates how the client for Harbor City Electric lacks recognition concerning finding options which can supply a mix of comfort and also inexpensive.

Technological factors: Modern technology plays an essential role in Harbor City Electric's business approach especially as the company is piloting Innovation centers which would certainly supply modern technology sales and also support in the form of memory upgrades, outer installations. (Summary of PEST in appendix 2).

OB Issues and also Effects.

Several underlying Business Actions issues can be seen in Harbor City Electric's case as highlighted in this section.

Concerns concerning social modification: There is apprehension concerning a social change that would certainly happen when Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with the majority of the employee currently showing unhappiness over this prospective move. This expected modification has actually produced stress in the work environment which has been paired with the previous stress and anxiety of preparing the company for a possible merger with Home Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is shortage of workers that can match the difficult environment of a busy organization. Not just does this cause problem in locating the best people, it places stress and anxiety on new hires as can not hold up against the rate and stress that the organization anticipates them to bear.

Double Reporting Lines: Newbies discover this business culture troublesome and also difficult to handle particularly as dotted line relationships are suggested to be weaker generally as well as unbiased setup and performance examination is still done by the solid line supervisor. This indicates that newcomers can lose clearness about their particular duties as well as purposes specifically as dotted line coverage 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 rather than Bridget Coles although it had actually been speculated that the last would certainly take Krasnow's setting came as a blow to her morale. Lewis may have been capable as well as suitable for the work but the reality that Kransnow's departure would make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Job Instability: Worry and also insecurity can be determined as two major issues that Lewis would be managing specifically as the merging has now be terminated and also two elderly executives of the advertising and marketing division would certainly be leaving. The entire responsibility of the department would be falling on Lewis's shoulders that would not just be in charge of brining about a social adjustment however would also have to confirm herself in her new function.

Incompatible Administration Style of Leader: Lewis's management design as well as its incompatibility with the marketing division's function can also be seen as an OB difficulty particularly as she has been used to taking care of concerns in the operations department where workers are educated to concentrate on processes and also obtain them right. The advertising and marketing division on the other hand can be viewed as a group of people that are utilized to being nurtured by Krasnow that concentrated extra on result than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements between 3 departments, advertising, merchandizing as well as operations respectively over the allotment of the advertising mix can be recognized as one more OB problem. Although the advertising and marketing division does not share the exact same vision as the various other 2 departments pertaining to the aloocation of the marketing mix twoards promos and advertsing, the merchandizing as well as operations divisions do not agree over the marketing mix allotment amongst one another either.

Fragmentation in Advertising Division: Fragmentation in between the marketing and advertising departments can be recognized as an additional OB problem which might require more attention. The truth that the marketing and advertising areas in the advertising department are detached is preventing both departments from acquiring from each other's experience and also expertise. Assimilation of advertising with merchandising and also procedures would come to be more difficult if the marketing department itself is broken down which can be an additional prospective OB issue.

Harbor City Electric Analysis

Various theories have been used to discuss the scenarios to get additional clarity concerning the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors believe that staffs are easy as well as careless, have little ambition and stand up to adjustment. The hard version of this concept stressed browbeating, tight controls, risks and also penalties. In time it generates low performance, refined sabotage and also competition (Deal, 2003). The scenario at Harbor City Electric is not entirely complying with Theory X, it can be seen that brand-new hires are finding this setting instead difficult which may at some point lead to a higher inclination of the monitoring towards Theory X. Based on McGregor's advocated sight, which he called Concept Y, the necessary task of the management is to prepare organizational conditions to ensure that people can attain their own objectives best by routing their efforts towards organizational rewards. If individuals discover no complete satisfaction in their work, the management would certainly have little choice yet to rely on concept X and exterior control (Deal, 2003). Even while evaluating Lewis's monitoring style, concept X may have been suitable in the operations department somewhat but the Advertising division would certainly require dependence on Concept Y so as to get the creativity and creativity from the groups.

Tuckman's Synergy Concept: As far as Lewis's problem about bringing harmony between the advertising and marketing department is worried, this would initially result in clash as discussed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, throughout the preliminary stage of team development, people might not bond, as they are active finding their area in the team. By integrating the advertising and marketing division's job, there may coincide preliminary disconnect which could lead to the second phase of 'storming' where the groups test each other. Nonetheless, it is only throughout the 3rd phase or 'norming' when they would integrate to share ideas prior to the group can cause harmony in the 4th stage 'carrying out'.

Bridges' Change Model: As per William Bridge's theory (appendix 4), individuals are fairly unpleasant with modification, which is noticeable by the situation at Harbor City Electric The circumstance can be seen as a normal program of life if is examined according to Bridge's theory where he clarifies that individuals go through 3 phases of transition when they experience modification. 'Closing, shedding as well as Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people exist with adjustment, they enter stage one therefore there might be emotions like despair, unpredictability, stress, temper, concern, denial and also disorientation.The situation at the advertising and marketing department of Harbor City Electric is comparable so Lewis can obtain comfortable with the concept that it is not remarkable behavior. In the second phase, there might be a demand to link the gap between the brand-new as well as old culture so Lewis might need to face this ordeal as soon as Krasnow leaves. There may be reduced morale and also reduced performance at this stage which need to not be taken as a trouble. It is during this phase that Lewis will certainly need to offer support to the division to ensure that they can discover a sense of direction. It can be seen just how Krasnow has actually already made this transition easier by making Lewis obtain involved in the department a year prior to his actual departure. As per Bridges' Version, phase three will certainly cause visibility to understanding, High power and dedication as individuals will certainly accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has goes over the significance of 'protection needs as being a lower level requirement of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel safe as well as out of risk' is at the second degree of needs. Before an employee can be made to create psychologically, he requires to have his 'Physical 'as well as 'Safety' needs satisfied.

SWOT Analysis for Harbor City Electric Case Study

Ramification of Analysis.

The OB analysis has checked out different concepts to recognize how to handle the existing circumstance available. The complying with three options have actually been recommended to aid Lewis take care of the business obstacles in the advertising department. Each of these choices has been recommended for easing the transition required to bring the marketing department in line with the needs of the market and also for making the cultural modification that would follow as soon as the existing leader leaves.

Combination of advertising and marketing features. Separating Adverting and also Manufacturing features. Assimilation of Advertising And Marketing with Procedures.

Examination of Alternatives.

Integration of Marketing & Marketing Functions: The in-house advertising and marketing agency of Harbor City Electric is already stamina for the organization in terms of conserving up on expenses connected to advertising as well as promo. Given that no new recruitment has been done after Bridget Cole's separation with the reporting line being directly appointed to Krasnow for the advertising and marketing function, this is a desirable opportunity for incorporating the marketing and advertising features. Judith Shapiro who has earlier been spoken with by Lewis during the earlier merging days has expertise in business-to-business advertising along with agency as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to deal with both marketing and advertising features.

The benefit of this method is that it will certainly incorporate both features while reducing the requirement for working with an extra resource for advertising. In addition to this, Lewis would certainly be heading the advertising and marketing division as well as all the same her substitute would be needed for the present duty that she is carrying out. The disadvantage of this option is that external hiring may bring about resentment from inner employees who might be considering the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Manufacturing: Provided the affordable pressures and top quality job required from the advertising agency, it is suggested that Lewis should allow the production system to be a separate feature from the marketing device. Because many advertising agencies had these two functions as different systems, it makes more feeling to comply with the norm. In addition to this, both functions might be able to concentrate on their core turns on extra successfully. Nevertheless, the drawback of this approach would be that additional costs would have to be borne for setting up different production features. Along with this, a production head may have to be worked with which could enhance expenses for the company.

Assimilation of Advertising And Marketing with Workflows: Given that Lewis is already taking care of the advertising as well as procedures divisions simultaneously; it makes sense to integrate the two functions given that she has been effectively looking after both ends. The truth that both divisions currently have significant differences over allocation of resources recommends that this combination might have the ability to produce harmony especially as Lewis would be heading both ends.However there are numerous drawbacks of this relocation specifically as it would put excessive concern over Lewis's shoulders. The reality that Lewis needs to adapt her management design for the advertising and marketing division recommends that these two departments would certainly be culturally diverse. Lewis may not be able to apply one type of management style to both divisions which could result in ineffectiveness in either one of the 2 features.


An analysis of the three options suggests that combination of advertising as well as procedures would certainly not be a practical action due to the huge differences between the two divisions despite the fact that currently Lewis is managing both. While splitting up of the manufacturing feature may have been a beneficial action for the advertising department, the fact that it would imply positioning a third function under Lewis's wing indicates this need to be prevented also. The combination of the advertising division is the best option in regards to obtaining the optimum arise from the department. An activity plan for this choice is reviewed below.

Activity Strategy.
Lewis will take over the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Production function will certainly stay part of marketing under marketing function.

Lewis will certainly separate herself from procedures.

A democratic leadership design with employee empowerment will certainly be made use of in advertising and marketing division.

Open door policy and emphasis on cross departmental interaction will certainly be targeted at removing dissonance.

Backup plan.

If the combination does not work out as intended, a backup strategy would certainly comply with which would divide the production feature from the advertising feature to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing division without an SVP. Because case the manufacturing feature will absolutely be separated by putting it under an SVP manufacturing.