Harrington Financial Group Case Study Solution


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Harrington Financial Group Case Study Analysis

Background and Facts

Harrington Financial Group a workplace supplies merchant for little and average sized companies has lately been associated with planning for a merger with its competitor Residence Deport, which has actually influenced performance degrees in departmentswith the elderly manager involved in lawful issues put forth by the government Trade Payment. With the Advertising and marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the near future. With difficulties in the type of a potential social modification and also low employee morale, the organization wants a complete reengineering effort at the advertising division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible cultural adjustment at the marketing department of Harrington Financial Group is enhancing uncertainty in the working environment leading to various challenges 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 major function in influencing tactical choices because Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Profession Compensation's intervention at the same time. Given the reality that the shop has a worldwide existence with branches in UK, USA, Canada and also Germany, political consider each of these nations may have the ability to influence performance or strategic goals. Federal Trade Compensation's antitrust suit against the merging occupied important time of the organization's elderly administration recommending that 'political' factors can have severe effects for a global organisation.

Economic Factors: Economic factors such as the emergence of local business in the global scenario recommend that Harrington Financial Group is flourishing in an atmosphere where there is prospective growth of companies. Reality that shop consumers are mostly looking for workplace supplies for house workplaces recommends that the market has an increasing trend of business owners as well as home based businesses.

Social factors: Social fads in the economic climate show that customers are looking for convenience as well as eye-catching prices. Marketing research shows how the customer for Harrington Financial Group does not have awareness concerning finding services which can provide a combination of comfort and affordable.

Technical factors: Modern technology plays an essential function in Harrington Financial Group's organisation strategy particularly as the organization is piloting Innovation centers which would offer technology sales as well as assistance in the kind of memory upgrades, peripheral installments. (Recap of BUG in appendix 2).

OB Issues and also Effects.

Numerous underlying Organizational Actions issues can be seen in Harrington Financial Group's case as highlighted in this area.

Concerns regarding social adjustment: There is worry regarding a social adjustment that would certainly take place when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising with a lot of the team member already showing discontent over this prospective relocation. This anticipated change has actually produced anxiety in the work environment which has actually been combined with the past anxiety of preparing the firm for a potential merging with Home Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is lack of personnel that can match the difficult setting of a fast-paced company. Not just does this lead to problem in locating the ideal individuals, it places stress on brand-new hires as can not hold up against the pace and also stress that the company expects them to birth.

Dual Coverage Lines: Novices discover this organizational society difficult as well as difficult to handle especially as populated line connections are meant to be weaker as a whole as well as objective setting and also efficiency evaluation is still done by the solid line manager. This implies that novices might shed clearness about their respective functions and also objectives especially as dotted line coverage does not keep them in direct communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had been hypothesized that the latter would certainly take Krasnow's setting came as a blow to her morale. Lewis may have been qualified and ideal for the task but the reality that Kransnow's separation would make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.

Concern & Task Insecurity: Anxiety and insecurity can be identified as 2 major concerns that Lewis would certainly be taking care of specifically as the merging has now be terminated as well as two elderly execs of the advertising department would be leaving. The whole responsibility of the division would be falling on Lewis's shoulders who would not just supervise of brining about a cultural adjustment yet would likewise have to confirm herself in her new function.

Incompatible Monitoring Style of Leader: Lewis's administration design and also its conflict with the advertising department's duty can also be viewed as an OB difficulty particularly as she has been made use of to managing issues in the operations department where employees are taught to focus on procedures and also get them right. The advertising and marketing division on the various other hand can be viewed as a group of individuals who are used to being supported by Krasnow who concentrated a lot more on output than processes.

Interdepartmental Arguments: Interdepartmental disagreements between three departments, marketing, merchandizing and procedures specifically over the allotment of the advertising and marketing mix can be identified as one more OB issue. Although the marketing division does not share the exact same vision as the various other 2 departments regarding the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and operations departments do not concur over the advertising and marketing mix appropriation amongst one another either.

Disintegration in Advertising And Marketing Division: Disintegration in between the advertising and marketing departments can be determined as an additional OB concern which might require more focus. The fact that the marketing and advertising areas in the marketing division are disconnected is protecting against both divisions from obtaining from each various other's experience as well as expertise. Combination of advertising with retailing and procedures would become more difficult if the marketing division itself is broken down which can be another prospective OB problem.

Harrington Financial Group Analysis

Different theories have been utilized to clarify the scenarios to obtain further clearness concerning the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that subordinates are easy as well as lazy, have little ambition as well as withstand adjustment. The circumstance at Harrington Financial Group is not entirely following Concept X, it can be seen that brand-new hires are locating this setting instead difficult which might eventually lead to a greater disposition of the monitoring towards Theory X. Even while examining Lewis's management style, theory X may have been ideal in the operations department to some level but the Marketing division would certainly need reliance on Theory Y in order to obtain the creativity and originality from the groups.

Tuckman's Synergy Concept: As far as Lewis's worry about bringing consistency in between the marketing as well as advertising and marketing department is worried, this would originally lead to clash as discussed by Bruce Tuckman in his 'Synergy Theory'. By incorporating the advertising and also advertising division's job, there may be the exact same first disconnect which could lead to the second stage of 'storming' where the groups test one another.

When people are offered with modification, they get in phase one and also so there might be emotions like unhappiness, unpredictability, aggravation, rage, concern, rejection as well as disorientation.The scenario at the advertising and marketing department of Harrington Financial Group is comparable so Lewis can obtain comfortable with the idea that it is not remarkable habits. It is during this stage that Lewis will certainly have to give support to the department so that they can locate a feeling of direction. It can be seen how Krasnow has actually already made this shift simpler by making Lewis get included in the department a year prior to his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has discusses the relevance of 'security needs as being a reduced degree demand of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel secure and also out of danger' is at the second level of requirements. Before a staff member can be made to create emotionally, he requires to have his 'Physical 'as well as 'Security' needs met.

SWOT Analysis for Harrington Financial Group Case Study

Effects of Analysis.

The OB analysis has actually taken a look at different concepts to understand how to deal with the current circumstance available. The adhering to 3 alternatives have actually been recommended to assist Lewis deal with the organizational obstacles in the advertising and marketing division. Each of these alternatives has actually been proposed for alleviating the transition needed to bring the marketing division in accordance with the demands of the market and also for making the cultural adjustment that would follow as soon as the existing leader leaves.

Combination of advertising and marketing features. Separating Adverting and also Manufacturing functions. Integration of Advertising with Operations.

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 and marketing along with company and also retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to deal with both marketing and also advertising and marketing functions.

The advantage of this approach is that it will integrate the two functions while minimizing the need for working with an additional source for advertising and marketing. Along with this, Lewis would be heading the advertising division as well as in any case her replacement would be required for the current function that she is performing. The downside of this option is that external hiring may produce animosity from interior personnel who might be looking at the placement of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting as well as Manufacturing: Given the affordable pressures as well as high quality work needed from the marketing company, it is advised that Lewis ought to enable the production unit to be a separate function from the advertising unit. Considering that most advertising and marketing companies had these 2 functions as different devices, it makes more sense to follow the norm.

Integration of Advertising And Marketing with Procedures: Since Lewis is already dealing with the marketing and also procedures divisions concurrently; it makes good sense to incorporate the two functions given that she has been effectively looking after both ends. The reality that the two departments currently have significant distinctions over allocation of sources recommends that this integration may have the ability to bring about consistency specifically as Lewis would be heading both ends.However there are various disadvantages of this relocation specifically as it would put too much problem over Lewis's shoulders. The reality that Lewis has to adapt her monitoring design for the advertising division recommends that these two divisions would certainly be culturally diverse. Along with this, Lewis might not have the ability to use one kind of leadership style to both departments which can lead to inadequacy in either among both functions.


An evaluation of the 3 options suggests that assimilation of advertising as well as operations would certainly not be a possible action as a result of the large differences in between both departments although that currently Lewis is taking care of both. While splitting up of the manufacturing feature might have been a favorable move for the advertising and marketing department, the fact that it would certainly indicate putting a 3rd function under Lewis's wing means this ought to be stayed clear of. The combination of the advertising department is the most effective choice in terms of getting the ideal arise from the division. An activity prepare for this alternative is talked about listed below.

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

Advertising and Marketing features would certainly be merged.

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

Manufacturing feature will remain component of marketing under advertising feature.

Lewis will certainly separate herself from operations.

An autonomous leadership style with worker empowerment will be used in advertising and marketing department.

Open door plan and also focus on cross departmental interaction will be focused on eliminating discord.

Backup strategy.

If the assimilation does not exercise as prepared, a contingency plan would follow which would certainly divide the manufacturing function from the advertising feature to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the marketing department without an SVP. Because case the production feature will definitely be separated by placing it under an SVP production.