Health Care Manufacturing Inc Case Study Analysis


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Health Care Manufacturing Inc Case Study Analysis

Background and Facts

Health Care Manufacturing Inc a workplace materials seller for little and average sized organisations has actually recently been involved in planning for a merging with its rival Residence Deport, which has actually affected effectiveness levels in departmentswith the elderly supervisor involved in lawful problems presented by the federal Profession Compensation. With the Advertising and marketing Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the future. With obstacles in the kind of a potential social change and low employee morale, the company requires a full reengineering effort at the advertising and marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The possible social change at the advertising division of Health Care Manufacturing Inc is increasing unpredictability in the workplace causing numerous challenges for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing calculated choices considering that Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Profession Commission's treatment while doing so. Provided the fact that the store has a global visibility with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these nations might have the ability to affect performance or critical objectives. Federal Profession Payment's antitrust suit versus the merging occupied useful time of the organization's senior administration recommending that 'political' factors can have severe implications for an international organisation.

Economic Factors: Financial factors such as the introduction of small companies in the global scenario recommend that Health Care Manufacturing Inc is thriving in an atmosphere where there is potential growth of companies. Along with this, truth that store consumers are mainly trying to find workplace supplies for home offices suggests that the market has a climbing pattern of entrepreneurs as well as online services.

Social factors: Social trends in the economic situation show that customers are looking for ease as well as appealing costs. Marketing research demonstrates how the client for Health Care Manufacturing Inc does not have understanding about locating options which can provide a combination of ease as well as affordable.

Technical factors: Modern technology plays a vital duty in Health Care Manufacturing Inc's company strategy particularly as the organization is piloting Modern technology centers which would offer technology sales as well as support in the kind of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and Effects.

Numerous underlying Organizational Actions issues can be seen in Health Care Manufacturing Inc's case as highlighted in this area.

Worries concerning social change: There is worry regarding a cultural adjustment that would take place when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with most of the team member currently showing discontent over this possible action. This predicted adjustment has created stress and anxiety in the office which has actually been combined with the previous stress of preparing the company for a potential merging with Home Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is scarcity of personnel that can match the difficult setting of a hectic company. Not just does this result in problem in discovering the best people, it places stress on new hires as can not withstand the speed and stress that the company expects them to birth.

Dual Reporting Lines: Newbies find this organizational society troublesome and also challenging to manage specifically as dotted line partnerships are implied to be weaker in general as well as objective setup as well as performance analysis is still done by the strong line manager. This implies that newbies can lose quality concerning their corresponding duties as well as objectives particularly as populated line coverage does not keep them in straight interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been speculated that the last would take Krasnow's position came as a blow to her spirits. Lewis might have been qualified and suitable for the job but the truth that Kransnow's separation would make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Worry & Task Insecurity: Fear and also instability can be recognized as 2 major issues that Lewis would certainly be managing specifically as the merger has actually now be terminated and 2 senior execs of the advertising and marketing department would be leaving. The whole duty of the department would certainly be falling on Lewis's shoulders who would not simply supervise of brining about a cultural change however would certainly additionally need to confirm herself in her brand-new function.

Inappropriate Monitoring Design of Leader: Lewis's administration style and its conflict with the marketing department's role can additionally be seen as an OB difficulty particularly as she has actually been made use of to taking care of problems in the procedures department where workers are taught to concentrate on processes and get them right. The advertising department on the other hand can be viewed as a team of people that are made use of to being nurtured by Krasnow that concentrated a lot more on output than procedures.

Interdepartmental Disagreements: Interdepartmental disputes in between three departments, marketing, merchandizing and operations specifically over the allowance of the advertising and marketing mix can be identified as one more OB concern. The marketing division does not share the same vision as the other 2 divisions relating to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and operations divisions do not agree over the advertising and marketing mix appropriation amongst one an additional either.

Disintegration in Advertising And Marketing Division: Fragmentation in between the marketing and advertising divisions can be identified as another OB problem which might need further interest. The reality that the advertising and marketing areas in the advertising department are detached is protecting against both departments from getting from each other's experience and knowledge. Integration of advertising with retailing as well as operations would become harder if the advertising division itself is degenerated which can be an additional possible OB issue.

Health Care Manufacturing Inc Analysis

Numerous concepts have been made use of to explain the scenarios to obtain more clarity regarding the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that subordinates are passive as well as lazy, have little passion as well as resist modification. The hard version of this theory highlighted browbeating, tight controls, hazards as well as punishments. In time it generates low productivity, refined sabotage and rivalry (Bargain, 2003). The scenario at Health Care Manufacturing Inc is not completely adhering to Theory X, it can be seen that new hires are locating this atmosphere instead difficult which may eventually lead to a higher inclination of the monitoring towards Theory X. As per McGregor's supported sight, which he called Concept Y, the vital task of the management is to set up business problems to ensure that people can attain their very own objectives best by directing their initiatives towards business rewards. If individuals locate no satisfaction in their work, the monitoring would have little selection yet to count on theory X and outside control (Bargain, 2003). Even while analyzing Lewis's monitoring style, concept X may have been suitable in the operations department somewhat yet the Advertising department would need reliance on Theory Y so as to get the creativity and also originality from the teams.

Tuckman's Teamwork Theory: As far as Lewis's issue about bringing consistency between the marketing and also marketing division is concerned, this would originally lead to conflict as gone over by Bruce Tuckman in his 'Teamwork Concept'. By combining the advertising and also advertising and marketing division's job, there may be the exact same initial separate which can lead to the second stage of 'storming' where the groups challenge one an additional.

Bridges' Change Design: As per William Bridge's concept (appendix 4), people are rather uncomfortable with change, which is obvious by the scenario at Health Care Manufacturing Inc The situation can be viewed as a normal course of life if is researched based on Bridge's concept where he explains that people experience 3 phases of transition when they experience adjustment. 'Closing, shedding and Releasing', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When individuals exist with adjustment, they enter stage one and so there might be emotions like despair, uncertainty, irritation, anger, worry, denial and disorientation.The scenario at the advertising and marketing division of Health Care Manufacturing Inc is similar so Lewis can get comfy with the suggestion that it is not phenomenal habits. In the second phase, there might be a demand to connect the space in between the brand-new and also old culture so Lewis might need to face this experience when Krasnow leaves. There may be reduced morale and also reduced efficiency at this stage which should not be taken as a trouble. It is throughout this phase that Lewis will need to offer assistance to the division so that they can find a sense of direction. It can be seen how Krasnow has actually currently made this shift much easier by making Lewis get involved in the department a year before his actual separation. As per Bridges' Design, phase 3 will certainly cause visibility to discovering, High power as well as commitment as people will welcome the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has reviews the relevance of 'protection needs as being a reduced level requirement of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel safe as well as out of threat' is at the 2nd degree of needs. Prior to a staff member can be made to create psychologically, he requires to have his 'Physiological 'and 'Safety and security' requires met.

SWOT Analysis for Health Care Manufacturing Inc Case Study

Implication of Analysis.

The OB analysis has actually taken a look at different theories to comprehend just how to manage the existing situation handy. The following 3 options have actually been proposed to aid Lewis manage the organizational challenges in the advertising and marketing division. Each of these options has been suggested for reducing the transition required to bring the advertising and marketing department according to the requirements of the marketplace as well as for making the cultural change that would follow as soon as the existing leader leaves.

Assimilation of advertising and marketing features. Separating Adverting and also Manufacturing features. Integration of Advertising with Procedures.

Examination of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merging days has expertise in business-to-business advertising along with company as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both marketing as well as marketing functions.

The benefit of this strategy is that it will certainly integrate both functions while minimizing the demand for working with an added source for advertising. In addition to this, Lewis would be heading the advertising and marketing division and also regardless her replacement would be required for the current function that she is carrying out. The downside of this choice is that exterior hiring may cause bitterness from interior personnel that might be eying the setting of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Manufacturing: Given the affordable stress as well as excellent quality work called for from the advertising agency, it is advised that Lewis needs to enable the manufacturing unit to be a separate function from the marketing unit. Because the majority of ad agency had these two functions as separate systems, it makes even more sense to follow the norm. Both features might be able to focus on their core activates extra efficiently. Nonetheless, the negative aspect of this technique would be that extra costs would certainly need to be birthed for setting up separate manufacturing features. Along with this, a manufacturing head may have to be employed which might raise overheads for the organization.

Assimilation of Advertising And Marketing with Workflows: Considering that Lewis is already dealing with the advertising and marketing and procedures divisions all at once; it makes sense to incorporate the two functions considering that she has been effectively caring for both ends. The reality that both divisions currently have major distinctions over appropriation of sources suggests that this assimilation might have the ability to cause consistency particularly as Lewis would certainly be heading both ends.However there are numerous disadvantages of this move specifically as it would put way too much worry over Lewis's shoulders. The reality that Lewis needs to adjust her administration design for the marketing department recommends that these two divisions would certainly be culturally diverse. Lewis may not be able to apply one type of leadership style to both departments which might result in ineffectiveness in either one of the two functions.


An evaluation of the three options indicates that assimilation of advertising and marketing as well as operations would certainly not be a practical action because of the huge differences between the two divisions although that currently Lewis is handling both. While splitting up of the manufacturing feature may have been a favorable move for the advertising division, the fact that it would suggest positioning a 3rd function under Lewis's wing indicates this need to be stayed clear of. The combination of the advertising division is the best option in regards to getting the optimal arise from the department. An action prepare for this option is reviewed listed below.

Activity Strategy.
Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Manufacturing function will certainly remain component of marketing under advertising feature.

Lewis will separate herself from procedures.

A democratic management design with worker empowerment will certainly be made use of in advertising and marketing department.

Open door plan and also emphasis on cross department interaction will certainly be targeted at removing discord.

Contingency strategy.

If the combination does not work out as prepared, a contingency strategy would certainly comply with which would certainly divide the manufacturing function from the advertising and marketing feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the marketing division without an SVP. In that case the production function will definitely be divided by positioning it under an SVP production.