Harnischfeger Corp Case Study Solution


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Harnischfeger Corp Case Study Analysis

Background and Facts

Harnischfeger Corp an office supplies merchant for small and also medium sized companies has lately been involved in planning for a merging with its competitor House Deport, which has impacted performance levels in departmentswith the elderly supervisor involved in legal problems presented by the federal Trade Compensation. With the Advertising and marketing Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the near future. With obstacles in the type of a possible cultural change and also low employee spirits, the organization is in need of a full reengineering effort at the marketing department.

Trouble Declaration

The possible social change at the advertising and marketing department of Harnischfeger Corp is boosting unpredictability in the working environment leading to different challenges for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing critical choices considering that Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Profession Payment's treatment in the process. Provided the reality that the store has an international existence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries may have the ability to affect efficiency or strategic goals. Federal Profession Compensation's antitrust match versus the merging took up valuable time of the company's senior management recommending that 'political' factors can have serious implications for a worldwide service.

Economic Factors: Economic factors such as the appearance of small businesses in the international circumstance recommend that Harnischfeger Corp is growing in an environment where there is potential development of services. Along with this, reality that shop consumers are primarily seeking office products for office suggests that the market has an increasing trend of entrepreneurs as well as home businesses.

Social factors: Social fads in the economy show that consumers are trying to find benefit in addition to eye-catching costs. Marketing research shows how the consumer for Harnischfeger Corp lacks awareness regarding discovering services which can supply a mix of convenience and also affordable.

Technological factors: Innovation plays a crucial role in Harnischfeger Corp's business approach specifically as the company is piloting Innovation centers which would certainly use innovation sales as well as assistance in the kind of memory upgrades, outer setups. (Summary of BUG in appendix 2).

OB Issues and also Effects.

Several underlying Organizational Habits problems can be seen in Harnischfeger Corp's case as highlighted in this area.

Worries concerning social modification: There is apprehension regarding a cultural adjustment that would certainly occur once Todd Krasnow leaves from his placement as the Executive Vice President of Marketing with most of the team member currently showing unhappiness over this possible action. This predicted modification has actually developed tension in the work environment which has been paired with the past anxiety of preparing the firm for a possible merging with Residence Deport.

Demanding Work Setting for Newcomers: There is lack of workers that can match the stressful setting of a fast-paced company. Not just does this lead to difficulty in discovering the right individuals, it places anxiety on brand-new hires as can not endure the rate and pressure that the organization anticipates them to bear.

Double Coverage Lines: Newcomers discover this organizational society cumbersome as well as hard to manage especially as populated line relationships are indicated to be weak as a whole and objective setup and performance analysis is still done by the strong line manager. This indicates that novices could lose quality about their corresponding duties as well as goals especially as populated line coverage does not keep them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been hypothesized that the last would certainly take Krasnow's placement came as an impact to her spirits. Lewis may have been qualified as well as suitable for the task but the fact that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Work Instability: Worry and instability can be identified as two major issues that Lewis would certainly be dealing with specifically as the merger has now be terminated and two senior execs of the marketing division would be leaving. The entire duty of the division would be dropping on Lewis's shoulders that would not simply supervise of brining about a cultural modification but would also need to confirm herself in her new duty.

Incompatible Administration Style of Leader: Lewis's management design as well as its conflict with the advertising and marketing department's duty can also be seen as an OB challenge particularly as she has actually been made use of to taking care of problems in the procedures division where personnel are shown to focus on processes as well as get them. The advertising department on the various other hand can be viewed as a group of people that are utilized to being nurtured by Krasnow who focused much more on result than procedures.

Interdepartmental Disputes: Interdepartmental disagreements between 3 departments, advertising and marketing, merchandizing as well as procedures specifically over the allotment of the advertising and marketing mix can be determined as an additional OB concern. Although the advertising department does not share the very same vision as the other two departments regarding the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and also procedures departments do not agree over the marketing mix appropriation amongst one another either.

Disintegration in Advertising Department: Disintegration in between the marketing and advertising divisions can be recognized as one more OB problem which might need additional attention. The fact that the marketing and advertising sections in the advertising and marketing department are detached is stopping both divisions from gaining from each various other's experience and also know-how. Combination of advertising with retailing as well as procedures would certainly become more difficult if the advertising department itself is degenerated which can be another possible OB worry.

Harnischfeger Corp Analysis

Various theories have actually been made use of to clarify the circumstances to get further clearness concerning the scenario handy.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that staffs are passive as well as careless, have little ambition and also resist modification. The situation at Harnischfeger Corp is not totally complying with Concept X, it can be seen that new hires are locating this atmosphere instead difficult which might at some point lead to a higher disposition of the management towards Concept X. Even while analyzing Lewis's monitoring style, concept X may have been suitable in the procedures division to some extent however the Marketing division would need dependence on Theory Y in order to get the creativity and also originality from the groups.

Tuckman's Teamwork Theory: As much as Lewis's concern concerning bringing consistency between the marketing as well as advertising and marketing department is concerned, this would initially lead to conflict as talked about by Bruce Tuckman in his 'Team effort Concept'. By combining the advertising and marketing and advertising division's work, there may be the very same initial detach which can lead to the second phase of 'storming' where the teams challenge one an additional.

When individuals are offered with adjustment, they enter phase one and so there might be emotions like sadness, uncertainty, disappointment, anger, worry, rejection as well as disorientation.The scenario at the advertising division of Harnischfeger Corp is similar so Lewis can get comfy with the idea that it is not phenomenal actions. It is during this phase that Lewis will certainly have to offer guidance to the division so that they can discover a feeling of direction. It can be seen exactly how Krasnow has actually already made this shift easier by making Lewis get involved in the department a year before his actual separation.

Maslow's Need power structure: The OB problem related to instability at the work environment has actually been activated first of all by the change in monitoring and secondly by the fact that the merging will certainly no longer be started. Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has talks about the importance of 'security requires as being a reduced level requirement of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to really feel protected and also safe' is at the second degree of demands. Before an employee can be made to develop mentally, he needs to have his 'Physiological 'and also 'Safety' needs satisfied. This shows that unless the workers are made to feel secure regarding their present employment standing in Harnischfeger Corp they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Harnischfeger Corp Case Study

Implication of Analysis.

The OB analysis has actually considered numerous concepts to recognize exactly how to cope with the existing scenario handy. The adhering to three options have been suggested to help Lewis handle the business obstacles in the advertising and marketing department. Each of these options has actually been recommended for reducing the transition needed to bring the advertising division in line with the needs of the marketplace and also for making the social modification that would certainly adhere to as soon as the current leader leaves.

Combination of marketing and advertising functions. Separating Adverting and also Production features. Integration of Advertising with Workflow.

Assessment of Alternatives.

Combination of Marketing & Advertising And Marketing Functions: The internal advertising company of Harnischfeger Corp is currently stamina for the organization in terms of conserving up on expenses related to marketing and also promotion. Since no brand-new recruitment has actually been done after Bridget Cole's departure with the reporting line being straight designated to Krasnow for the marketing function, this is a positive possibility for integrating the advertising and marketing features. Judith Shapiro that has earlier been spoken with by Lewis during the earlier merging days has proficiency in business-to-business marketing along with company and retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to handle both marketing and advertising functions.

The advantage of this technique is that it will integrate both functions while minimizing the requirement for working with an extra source for marketing. In addition to this, Lewis would certainly be heading the marketing department as well as regardless her replacement would certainly be needed for the existing role that she is executing. The disadvantage of this alternative is that exterior hiring may produce animosity from interior workers who may be looking at the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting as well as Manufacturing: Provided the affordable stress and also high top quality work required from the advertising and marketing agency, it is suggested that Lewis should allow the production unit to be a different feature from the marketing device. Given that most advertising and marketing agencies had these two functions as different systems, it makes even more feeling to comply with the standard.

Combination of Marketing with Workflows: Since Lewis is currently taking treatment of the advertising and also procedures divisions at the same time; it makes feeling to integrate the 2 features since she has actually been efficiently taking treatment of both ends. The reality that Lewis has to adjust her management design for the marketing division suggests that these 2 departments would be culturally varied.


An evaluation of the 3 alternatives shows that integration of advertising and marketing as well as operations would not be a viable move because of the vast distinctions between both divisions despite the fact that presently Lewis is handling both. While separation of the production function may have been a favorable step for the marketing department, the truth that it would mean putting a third function under Lewis's wing implies this should be prevented too. The assimilation of the advertising division is the very best alternative in regards to getting the optimum results from the department. An action plan for this choice is discussed listed below.

Action Strategy.

Lewis will certainly take over the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Production feature will stay part of advertising and marketing under advertising and marketing function.

Lewis will certainly separate herself from operations.

A democratic management style with staff member empowerment will be used in marketing division.

Open up door plan and focus on cross department communication will certainly be aimed at getting rid of dissonance.

Backup plan.

If the assimilation does not work out as planned, a backup plan would follow which would divide the production function from the advertising and marketing feature to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the marketing department without an SVP. Because case the production feature will most definitely be separated by putting it under an SVP production.