Highway 407 Express Toll Route Case Study Analysis


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Highway 407 Express Toll Route Case Study Solution

Background and Facts

Highway 407 Express Toll Route an office materials retailer for tiny and also medium sized companies has actually just recently been associated with preparing for a merging with its competitor House Deport, which has affected effectiveness levels in departmentswith the elderly supervisor associated with legal complications put forth by the federal Profession Compensation. With the Advertising and marketing Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the role in the future. With obstacles in the kind of a prospective cultural adjustment and reduced employee morale, the organization is in need of a total reengineering effort at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible social change at the advertising division of Highway 407 Express Toll Route is boosting uncertainty in the workplace bring about different difficulties for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting tactical decisions since Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Profession Payment's treatment in the process. Offered the truth that the store has an international presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations may be able to affect performance or calculated goals. Federal Profession Payment's antitrust fit versus the merging took up useful time of the company's senior management recommending that 'political' factors can have severe effects for an international company.

Economic Factors: Economic factors such as the appearance of local business in the global circumstance recommend that Highway 407 Express Toll Route is growing in an environment where there is possible growth of companies. Along with this, truth that store consumers are primarily looking for office materials for office suggests that the marketplace has an increasing fad of business owners as well as online organisations.

Social factors: Social patterns in the economic situation show that clients are trying to find benefit along with eye-catching costs. Marketing research demonstrates how the consumer for Highway 407 Express Toll Route does not have recognition regarding discovering solutions which can use a combination of ease as well as low costs.

Technical factors: Innovation plays a vital function in Highway 407 Express Toll Route's organisation method specifically as the company is piloting Modern technology facilities which would certainly supply modern technology sales and assistance in the form of memory upgrades, peripheral installations. (Recap of PEST in appendix 2).

OB Issues and also Symptoms.

A number of underlying Business Behavior issues can be seen in Highway 407 Express Toll Route's case as highlighted in this area.

Apprehensions about social adjustment: There is apprehension concerning a social change that would certainly happen when Todd Krasnow leaves from his position as the Executive Vice President of Marketing with a lot of the employee already showing unhappiness over this potential action. This anticipated modification has created anxiety in the workplace which has actually been paired with the past stress of preparing the firm for a potential merging with House Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is scarcity of personnel that can match the stressful environment of a busy company. Not only does this bring about difficulty in locating the right individuals, it puts tension on brand-new hires as can not hold up against the pace and also stress that the company expects them to bear.

Twin Coverage Lines: Novices discover this business culture troublesome and also challenging to deal with especially as populated line connections are indicated to be weak in general and unbiased setup and efficiency evaluation is still done by the strong line supervisor. This suggests that novices could shed clarity regarding their respective roles and also purposes 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 follower as opposed to Bridget Coles despite the fact that it had actually been speculated that the latter would certainly take Krasnow's placement came as a strike to her morale. Lewis may have been qualified as well as ideal for the task however the fact that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Work Insecurity: Concern as well as instability can be recognized as two major worries that Lewis would be dealing with specifically as the merging has currently be cancelled as well as 2 senior execs of the advertising department would be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders who would not just supervise of brining about a cultural adjustment however would likewise need to show herself in her brand-new role.

Incompatible Management Style of Leader: Lewis's management design as well as its conflict with the advertising and marketing division's role can likewise be viewed as an OB challenge particularly as she has actually been used to handling issues in the operations division where personnel are taught to concentrate on processes and also get them right. The marketing division on the other hand can be seen as a team of people who are used to being nurtured by Krasnow that concentrated extra on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental disputes between three divisions, advertising and marketing, merchandizing and operations specifically over the appropriation of the advertising mix can be determined as one more OB worry. The advertising department does not share the same vision as the other two departments concerning the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and also operations departments do not concur over the advertising mix allowance amongst one another either.

Fragmentation in Marketing Division: Fragmentation between the marketing and advertising departments can be recognized as an additional OB concern which could require more focus. The truth that the advertising and marketing sections in the advertising and marketing division are disconnected is protecting against both departments from getting from each other's experience and expertise. Combination of advertising and marketing with merchandising and also procedures would certainly become more difficult if the marketing department itself is broken down which can be an additional prospective OB issue.

Highway 407 Express Toll Route Analysis

Various theories have actually been made use of to clarify the circumstances to get further quality concerning the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors think that subordinates are passive and careless, have little passion and resist modification. The situation at Highway 407 Express Toll Route is not completely adhering to Theory X, it can be seen that brand-new hires are locating this environment instead difficult which might at some point lead to a greater disposition of the monitoring towards Concept X. Also while examining Lewis's monitoring style, concept X might have been suitable in the operations department to some level but the Advertising division would call for dependence on Concept Y in order to get the creativity as well as originality from the groups.

Tuckman's Team effort Theory: As far as Lewis's worry about bringing consistency in between the advertising and advertising division is concerned, this would initially lead to conflict as gone over by Bruce Tuckman in his 'Teamwork Concept'. By combining the advertising and marketing and advertising department's job, there might be the same first detach which can lead to the second stage of 'storming' where the groups test one another.

Bridges' Shift Model: Based On William Bridge's concept (appendix 4), people are fairly uneasy with modification, which is evident by the situation at Highway 407 Express Toll Route The scenario can be seen as a typical program of life if is studied according to Bridge's concept where he explains that people undergo 3 stages of change when they experience modification. 'Closing, shedding and Letting go', The Neutral Zone and 'The New Starting' (Bridges, 2004). When people exist with adjustment, they enter phase one therefore there might be feelings like sadness, unpredictability, aggravation, temper, worry, rejection as well as disorientation.The scenario at the advertising and marketing department of Highway 407 Express Toll Route is comparable so Lewis can get comfortable with the idea that it is not extraordinary actions. In the second stage, there might be a demand to connect the space in between the new as well as old society so Lewis might have to encounter this experience when Krasnow leaves. There may be low morale and low efficiency at this stage which must not be taken as a problem. It is throughout this stage that Lewis will certainly have to offer assistance to the department to make sure that they can discover a sense of direction. It can be seen exactly how Krasnow has currently made this change simpler by making Lewis obtain associated with the department a year prior to his actual separation. As per Bridges' Version, stage three will certainly bring about openness to understanding, High energy and commitment as individuals will welcome the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has reviews the importance of 'safety requires as being a lower level need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel secure and also out of danger' is at the second degree of requirements. Prior to an employee can be made to create psychologically, he needs to have his 'Physical 'and 'Safety and security' requires satisfied.

SWOT Analysis for Highway 407 Express Toll Route Case Study

Implication of Analysis.

The OB analysis has actually taken a look at numerous theories to understand exactly how to deal with the existing situation at hand. The complying with 3 choices have actually been proposed to aid Lewis take care of the business difficulties in the advertising and marketing division. Each of these choices has been proposed for easing the change needed to bring the advertising and marketing department in line with the demands of the market as well as for making the cultural change that would certainly comply with once the existing leader leaves.

Combination of advertising and marketing functions. Dividing Adverting and also Production functions. Assimilation of Advertising with Operations.

Examination of Alternatives.

Combination of Advertising And Marketing & Advertising And Marketing Functions: The internal advertising company of Highway 407 Express Toll Route is already stamina for the organization in terms of conserving up on expenses related to advertising and marketing and also promo. Considering that no brand-new employment has actually been done after Bridget Cole's separation with the coverage line being directly appointed to Krasnow for the advertising and marketing feature, this is a desirable possibility for incorporating the marketing and advertising functions. Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merger days has proficiency in business-to-business advertising along with agency and also retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to manage both marketing and advertising features.

The advantage of this approach is that it will incorporate the two functions while reducing the demand for working with an extra source for marketing. Along with this, Lewis would be heading the marketing department and regardless her replacement would certainly be needed for the existing function that she is doing. The disadvantage of this option is that external hiring may bring about bitterness from interior personnel who might be eying the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Production: Given the competitive pressures and high quality job called for from the advertising firm, it is suggested that Lewis should permit the manufacturing unit to be a separate feature from the advertising and marketing system. Because a lot of advertising companies had these 2 functions as separate devices, it makes more feeling to follow the standard.

Assimilation of Advertising with Operations: Considering that Lewis is currently taking care of the marketing as well as operations divisions at the same time; it makes feeling to integrate the 2 features considering that she has been efficiently taking care of both ends. The reality that Lewis has to adjust her management style for the advertising department suggests that these 2 departments would be culturally diverse.


An examination of the three options indicates that combination of marketing as well as procedures would certainly not be a possible action due to the huge differences in between the 2 divisions despite the reality that presently Lewis is handling both. While separation of the production function may have been a positive relocation for the marketing department, the fact that it would mean positioning a third function under Lewis's wing indicates this need to be avoided.

Activity Strategy.
Lewis will take control of the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would be merged.

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

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

Lewis will separate herself from procedures.

An autonomous leadership style with worker empowerment will certainly be made use of in advertising department.

Open door plan and focus on cross departmental communication will certainly be targeted at removing disharmony.

Backup strategy.

If the integration does not work out as planned, a contingency strategy would certainly follow which would divide the manufacturing feature from the advertising and marketing feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the manufacturing function will definitely be divided by positioning it under an SVP manufacturing.