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Harley Davidson Inc Case Study Solution

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Harley Davidson Inc Case Study Analysis

Background and Facts

Harley Davidson Inc an office products merchant for little as well as medium sized organisations has actually recently been associated with planning for a merger with its competitor House Deport, which has affected efficiency levels in departmentswith the senior manager associated with lawful complications put forth by the federal Trade Compensation. With the Marketing Head advancing the information of his departure from the business in one year, Jeannie Lewis, the present head of operations has been asked to take the function in the near future. With obstacles in the type of a potential cultural adjustment and also reduced worker morale, the company wants a full reengineering initiative at the marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising and marketing division of Harley Davidson Inc is boosting uncertainty in the workplace resulting in various obstacles for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing strategic choices because Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Profession Commission's treatment while doing so. Offered the truth that the shop has a global presence with branches in UK, USA, Canada and also Germany, political consider each of these nations might be able to influence performance or calculated goals. Federal Profession Commission's antitrust match against the merger occupied valuable time of the organization's elderly monitoring recommending that 'political' factors can have major ramifications for a global company.

Economic Factors: Economic factors such as the emergence of local business in the global scenario suggest that Harley Davidson Inc is flourishing in an atmosphere where there is potential development of organisations. Reality that shop consumers are primarily looking for office supplies for residence workplaces recommends that the market has an increasing trend of business owners and residence based businesses.

Social factors: Social patterns in the economic situation reveal that clients are searching for ease along with attractive prices. Marketing research demonstrates how the customer for Harley Davidson Inc does not have awareness concerning discovering services which can offer a combination of ease as well as affordable.

Technological factors: Modern technology plays an important duty in Harley Davidson Inc's business technique especially as the organization is piloting Modern technology facilities which would supply innovation sales and also support in the kind of memory upgrades, outer installations. (Summary of PEST in appendix 2).

OB Issues and also Symptoms.

A number of underlying Organizational Behavior problems can be seen in Harley Davidson Inc's case as highlighted in this section.

Uneasiness about cultural change: There is concern concerning a cultural change that would certainly happen when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with a lot of the employee currently revealing discontent over this prospective step. This anticipated change has produced stress in the office which has actually been combined with the past stress of preparing the firm for a prospective merging with Residence Deport.
Pest Analysis
Stressful Job Atmosphere for Newcomers: There is lack of workers that can match the demanding atmosphere of a fast-paced company. Not just does this cause problem in discovering the best people, it puts stress and anxiety on brand-new hires as can not hold up against the pace and stress that the company anticipates them to birth.

Double Coverage Lines: Newcomers find this organizational society cumbersome as well as challenging to handle particularly as dotted line relationships are meant to be weaker in general and unbiased setup and also efficiency evaluation is still done by the solid line manager. This suggests that newbies might shed quality about their particular functions and also objectives particularly as dotted line coverage does not keep them in direct communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles even though it had actually been hypothesized that the latter would certainly take Krasnow's position came as a strike to her spirits. Lewis may have been qualified and ideal for the task yet the reality that Kransnow's departure would make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Concern & Job Instability: Concern and also insecurity can be determined as two significant problems that Lewis would certainly be handling especially as the merging has actually currently be terminated and two senior executives of the advertising department would certainly be leaving. The whole duty of the department would certainly be dropping on Lewis's shoulders who would not simply supervise of brining concerning a social change but would additionally need to show herself in her new function.

Incompatible Administration Style of Leader: Lewis's monitoring design and its conflict with the marketing department's function can likewise be seen as an OB obstacle especially as she has been used to handling problems in the operations division where employees are taught to focus on processes and also obtain them right. The advertising department on the various other hand can be viewed as a group of individuals that are utilized to being nurtured by Krasnow that focused much more on result than procedures.

Interdepartmental Arguments: Interdepartmental disputes in between 3 departments, marketing, merchandizing and operations specifically over the allotment of the advertising and marketing mix can be determined as another OB worry. Although the advertising division does not share the exact same vision as the other two divisions regarding the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and operations departments do not concur over the marketing mix allocation among one another either.

Disintegration in Advertising And Marketing Division: Disintegration between the advertising and marketing departments can be determined as one more OB problem which might require additional attention. The truth that the advertising and marketing sections in the advertising department are detached is stopping both departments from getting from each other's experience and competence. Integration of marketing with retailing as well as procedures would come to be more difficult if the advertising department itself is disintegrated which can be one more prospective OB problem.

Harley Davidson Inc Analysis

Different concepts have actually been made use of to clarify the situations to get further quality regarding the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors think that juniors are passive and also careless, have little ambition as well as resist adjustment. The hard version of this concept emphasized coercion, tight controls, risks and also punishments. Gradually it creates reduced performance, refined sabotage and rivalry (Offer, 2003). Although the scenario at Harley Davidson Inc is not completely following Theory X, it can be seen that brand-new hires are locating this setting instead stressful which may ultimately result in a higher disposition of the monitoring in the direction of Theory X. According to McGregor's promoted view, which he called Concept Y, the necessary task of the monitoring is to arrange business conditions so that people can achieve their own goals best by guiding their initiatives in the direction of organizational rewards. If people find no fulfillment in their job, the monitoring would certainly have little selection yet to rely on theory X as well as outside control (Bargain, 2003). Also while assessing Lewis's monitoring style, theory X may have been suitable in the operations division somewhat however the Advertising department would require reliance on Concept Y so as to get the imagination as well as creativity from the teams.

Tuckman's Synergy Concept: Regarding Lewis's issue about bringing harmony between the marketing and advertising division is concerned, this would at first cause conflict as gone over by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, throughout the preliminary stage of team development, people might not bond, as they are active locating their location in the team. By combining the marketing and advertising department's job, there might coincide initial detach which might result in the second phase of 'storming' where the groups challenge one another. It is just throughout the third phase or 'norming' when they would come with each other to share concepts prior to the group can bring around synergy in the 4th stage 'performing'.

When individuals are offered with adjustment, they enter stage one and so there might be emotions like sadness, unpredictability, disappointment, anger, concern, rejection and also disorientation.The scenario at the advertising and marketing division of Harley Davidson Inc is comparable so Lewis can get comfortable with the suggestion that it is not extraordinary habits. It is during this phase that Lewis will certainly have to provide advice to the division so that they can discover a sense of instructions. It can be seen just how Krasnow has actually already made this transition less complicated by making Lewis obtain involved in the department a year prior to his actual departure.
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue pertaining to instability at the work environment has been caused first of all by the adjustment in management and secondly by the reality that the merger will no longer be initiated. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has reviews the importance of 'safety needs as being a reduced degree need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel safe and secure as well as unharmed' is at the second degree of demands. Before an employee can be made to develop psychologically, he requires to have his 'Physiological 'and also 'Safety and security' requires fulfilled. This indicates that unless the employees are made to really feel safe and secure regarding their present employment standing in Harley Davidson Inc they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Harley Davidson Inc Case Study



Effects of Analysis.

The OB analysis has checked out different concepts to understand how to cope with the present circumstance at hand. The following three choices have actually been proposed to assist Lewis handle the organizational challenges in the advertising and marketing department. Each of these choices has been suggested for relieving the transition needed to bring the advertising and marketing division in accordance with the needs of the marketplace and for making the cultural adjustment that would follow as soon as the present leader leaves.

Integration of advertising and marketing functions. Dividing Adverting as well as Production features. Combination of Advertising with Workflow.

Evaluation of Alternatives.

Combination of Advertising And Marketing & Advertising Functions: The in-house marketing firm of Harley Davidson Inc is currently stamina for the organization in regards to saving up on expenses associated with marketing as well as promo. Since no brand-new recruitment has actually been done after Bridget Cole's separation with the coverage line being directly appointed to Krasnow for the advertising and marketing function, this is a desirable possibility for incorporating the advertising and marketing functions. Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merging days has proficiency in business-to-business advertising and marketing together with company and also retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to manage both advertising and marketing functions.

The advantage of this method is that it will certainly integrate both features while lowering the demand for employing an added resource for marketing. In addition to this, Lewis would be heading the marketing department and also regardless her replacement would be required for the existing role that she is carrying out. The drawback of this alternative is that exterior hiring might produce bitterness from inner personnel who might be eying the setting of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and Production: Given the competitive pressures as well as top quality job required from the advertising agency, it is recommended that Lewis needs to allow the manufacturing system to be a separate feature from the advertising unit. Since the majority of ad agency had these two features as different systems, it makes even more sense to comply with the norm. Both functions might be able to concentrate on their core triggers much more successfully. However, the disadvantage of this method would certainly be that additional prices would certainly have to be birthed for establishing separate manufacturing functions. A production head may have to be hired which might boost expenses for the organization.

Assimilation of Marketing with Procedures: Given that Lewis is already dealing with the advertising and marketing as well as procedures divisions simultaneously; it makes good sense to integrate the two features since she has actually been efficiently looking after both ends. The truth that both divisions currently have major distinctions over allotment of resources recommends that this integration might have the ability to produce harmony particularly as Lewis would be heading both ends.However there are different negative aspects of this action specifically as it would certainly place too much problem over Lewis's shoulders. The truth that Lewis needs to adapt her monitoring style for the advertising and marketing division suggests that these 2 departments would be culturally diverse. Lewis might not be able to use one kind of management design to both divisions which could result in inefficiency in either one of the 2 features.

Suggestion.



An analysis of the 3 choices suggests that combination of marketing and operations would not be a feasible move as a result of the substantial differences in between both divisions despite the fact that presently Lewis is handling both. While separation of the manufacturing function might have been a favorable step for the marketing division, the reality that it would imply positioning a 3rd feature under Lewis's wing indicates this should be prevented. The combination of the marketing department is the very best alternative in regards to obtaining the optimal results from the division. An activity plan for this alternative is reviewed listed below.

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

Advertising and Marketing functions would certainly be combined.

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

Manufacturing function will stay component of advertising and marketing under marketing function.

Lewis will certainly divide herself from operations.

An autonomous leadership style with staff member empowerment will be used in advertising division.

Open door plan as well as focus on cross departmental communication will be focused on eliminating dissonance.

Contingency plan.

If the assimilation does not exercise as prepared, a backup plan would comply with which would certainly divide the production function from the marketing feature to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising department without an SVP. Because case the manufacturing function will certainly be separated by positioning it under an SVP production.