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Hollywood Rules Case Study Solution

Background and Facts

Hollywood Rules an office products merchant for small and also medium sized companies has actually recently been involved in planning for a merger with its competitor Residence Deport, which has actually influenced effectiveness degrees in departmentswith the senior supervisor associated with legal issues presented by the government Trade Payment. With the Advertising and marketing Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the future. With challenges in the type of a possible cultural adjustment and reduced employee morale, the company is in need of a total reengineering effort at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The prospective social change at the marketing department of Hollywood Rules is increasing uncertainty in the workplace resulting in different challenges for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting critical decisions since Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Profession Payment's intervention at the same time. Offered the truth that the shop has a worldwide presence with branches in UK, U.S.A., Canada and Germany, political consider each of these countries might be able to impact performance or critical objectives. Federal Trade Payment's antitrust fit versus the merging occupied important time of the company's senior administration suggesting that 'political' factors can have significant ramifications for an international service.

Economic Factors: Financial factors such as the development of small businesses in the worldwide circumstance recommend that Hollywood Rules is thriving in an environment where there is potential development of services. Along with this, fact that store customers are primarily searching for office products for office recommends that the market has an increasing trend of entrepreneurs and online businesses.

Social factors: Social fads in the economic climate show that customers are searching for benefit along with appealing rates. Market research demonstrates how the client for Hollywood Rules does not have awareness concerning locating remedies which can provide a mix of convenience and also low costs.

Technological factors: Innovation plays a crucial function in Hollywood Rules's business strategy specifically as the company is piloting Modern technology centers which would use technology sales and also assistance in the kind of memory upgrades, outer installations. (Summary of INSECT in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Organizational Actions issues can be seen in Hollywood Rules's case as highlighted in this section.

Apprehensions regarding social change: There is uneasiness about a social adjustment that would take place when Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with most of the employee currently revealing discontent over this prospective relocation. This predicted adjustment has developed tension in the office which has been combined with the previous stress of preparing the firm for a potential merger with Residence Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is shortage of personnel that can match the difficult environment of a fast-paced organization. Not just does this lead to problem in finding the ideal people, it puts stress and anxiety on new hires as can not withstand the speed and also stress that the company anticipates them to bear.

Twin Reporting Lines: Newcomers discover this organizational society difficult and also tough to handle particularly as dotted line connections are implied to be weak as a whole as well as unbiased setup and performance assessment is still done by the strong line supervisor. This indicates that newcomers can lose quality concerning their corresponding functions and also purposes particularly as populated line reporting does not maintain them in straight interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles even though it had actually been guessed that the latter would take Krasnow's placement came as a strike to her morale. Lewis may have been qualified as well as appropriate for the work but the reality that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Job Insecurity: Worry and also instability can be identified as 2 significant concerns that Lewis would be handling particularly as the merging has actually currently be terminated and also two elderly execs of the advertising and marketing department would certainly be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders who would not just supervise of brining about a cultural change but would likewise need to confirm herself in her brand-new function.

Inappropriate Management Design of Leader: Lewis's administration style and its incompatibility with the advertising and marketing department's role can additionally be seen as an OB difficulty specifically as she has been utilized to taking care of concerns in the operations department where personnel are shown to focus on processes and obtain them right. The advertising and marketing division on the other hand can be viewed as a group of people that are utilized to being supported by Krasnow who focused extra on result than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between 3 divisions, marketing, merchandizing and procedures specifically over the allocation of the advertising and marketing mix can be identified as another OB worry. The marketing department does not share the exact same vision as the other 2 departments pertaining to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and also procedures divisions do not concur over the marketing mix allocation among one another either.

Fragmentation in Advertising And Marketing Division: Disintegration between the advertising and marketing divisions can be identified as another OB problem which can require further interest. The reality that the advertising and marketing areas in the marketing department are disconnected is preventing both divisions from acquiring from each other's experience and also proficiency. Integration of marketing with retailing and operations would end up being harder if the advertising department itself is degenerated which can be an additional prospective OB worry.

Hollywood Rules Analysis

Different theories have been used to discuss the situations to obtain more clarity regarding the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors think that juniors are passive and also careless, have little passion and also stand up to modification. The scenario at Hollywood Rules is not entirely complying with Theory X, it can be seen that new hires are discovering this setting rather stressful which may at some point lead to a better inclination of the management towards Theory X. Also while evaluating Lewis's monitoring style, concept X may have been suitable in the operations department to some level however the Marketing division would need reliance on Concept Y in order to obtain the creative thinking and also creativity from the groups.

Tuckman's Teamwork Concept: As far as Lewis's problem regarding bringing consistency between the advertising and marketing as well as advertising and marketing department is worried, this would initially lead to clash as reviewed by Bruce Tuckman in his 'Synergy Theory'. By integrating the marketing and advertising and marketing department's work, there might be the very same first disconnect which can lead to the 2nd stage of 'storming' where the groups test one an additional.

Bridges' Transition Model: According To William Bridge's theory (appendix 4), individuals are quite unpleasant with modification, which is apparent by the situation at Hollywood Rules The circumstance can be seen as a typical training course of life if is researched as per Bridge's theory where he discusses that individuals go through three phases of shift when they experience adjustment. 'Ending, losing and Releasing', The Neutral Zone and 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they enter stage one and so there might be feelings like unhappiness, uncertainty, frustration, anger, fear, denial as well as disorientation.The circumstance at the advertising and marketing division of Hollywood Rules is comparable so Lewis can get comfortable with the idea that it is not extraordinary actions. In the second phase, there might be a requirement to connect the gap in between the brand-new as well as old culture so Lewis may have to encounter this experience when Krasnow leaves. There may be low spirits as well as reduced performance at this phase which ought to not be taken as a problem. It is throughout this phase that Lewis will certainly need to provide support to the division so that they can discover a sense of direction. It can be seen exactly how Krasnow has currently made this shift much easier by making Lewis obtain involved in the department a year before his actual departure. As per Bridges' Model, phase three will produce openness to discovering, High power and dedication as people will embrace the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has reviews the importance of 'safety requires as being a reduced level need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel safe as well as out of risk' is at the 2nd level of requirements. Prior to an employee can be made to create psychologically, he requires to have his 'Physiological 'as well as 'Safety' needs met.

SWOT Analysis for Hollywood Rules Case Study



Ramification of Analysis.

The OB analysis has taken a look at various theories to understand exactly how to handle the current circumstance available. The following 3 options have actually been recommended to aid Lewis handle the organizational challenges in the advertising division. Each of these options has been proposed for alleviating the change required to bring the advertising and marketing department according to the requirements of the marketplace and also for making the cultural modification that would certainly adhere to as soon as the present leader leaves.

Integration of advertising and marketing functions. Dividing Adverting and Manufacturing features. Integration of Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merger days has proficiency in business-to-business marketing along with firm and retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to manage both advertising and also advertising functions.

The benefit of this approach is that it will integrate both features while lowering the need for hiring an extra resource for advertising and marketing. In addition to this, Lewis would be heading the advertising division as well as regardless her replacement would be needed for the existing function that she is performing. The negative aspect of this alternative is that outside hiring may bring about bitterness from inner personnel that might be looking at the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Production: Offered the affordable stress and high quality job required from the marketing firm, it is suggested that Lewis must enable the production device to be a different function from the marketing system. Considering that a lot of marketing firms had these two functions as separate devices, it makes even more sense to adhere to the norm.

Integration of Marketing with Workflows: Because Lewis is already taking care of the advertising and also operations divisions simultaneously; it makes feeling to integrate the two functions because she has been effectively taking care of both ends. The fact that Lewis has to adjust her administration style for the advertising department suggests that these 2 divisions would certainly be culturally varied.

Referral.



An assessment of the 3 options shows that combination of advertising and procedures would certainly not be a viable move due to the substantial differences in between the two divisions despite the reality that presently Lewis is handling both. While separation of the manufacturing function may have been a desirable action for the advertising and marketing department, the fact that it would certainly indicate placing a 3rd feature under Lewis's wing indicates this ought to be avoided.

Activity Strategy.
Recommendation
Lewis will certainly take control of the role of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Manufacturing feature will remain component of marketing under advertising and marketing feature.

Lewis will certainly separate herself from operations.

A democratic leadership design with employee empowerment will certainly be utilized in advertising department.

Open door plan as well as focus on cross department interaction will certainly be targeted at eliminating disharmony.

Backup plan.

If the combination does not work out as planned, a backup strategy would comply with which would certainly separate the production feature from the advertising and marketing function to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising and marketing department without an SVP. In that case the production feature will most definitely be divided by putting it under an SVP production.