Hollywood Rules Case Study Solution


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Hollywood Rules Case Study Solution

Background and Facts

Hollywood Rules an office materials retailer for little as well as moderate sized services has recently been involved in preparing for a merger with its competitor Residence Deport, which has actually affected effectiveness degrees in departmentswith the elderly manager associated with legal complications put forth by the government Profession Compensation. With the Advertising Head advancing the information of his departure from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the role in the future. With challenges in the type of a prospective social change as well as reduced worker morale, the company wants a full reengineering initiative at the marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The possible social change at the marketing department of Hollywood Rules is boosting unpredictability in the working environment resulting in different difficulties for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting critical choices considering that Stapes Inc. needed to desert its strategies of combining with Office Deport after the Federal Trade Payment's intervention in the process. Provided the truth that the shop has a worldwide presence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries may have the ability to impact performance or critical goals. Federal Trade Payment's antitrust suit versus the merger used up valuable time of the organization's elderly administration suggesting that 'political' factors can have significant ramifications for a worldwide organisation.

Economic Factors: Economic factors such as the introduction of small businesses in the global circumstance recommend that Hollywood Rules is prospering in a setting where there is possible development of companies. In addition to this, fact that store customers are mostly seeking office products for office recommends that the market has a climbing pattern of business owners and also home based companies.

Social factors: Social patterns in the economic situation reveal that consumers are trying to find benefit as well as eye-catching costs. Market research demonstrates how the consumer for Hollywood Rules lacks recognition regarding locating services which can provide a mix of ease as well as affordable.

Technological factors: Modern technology plays an important function in Hollywood Rules's service technique specifically as the company is piloting Technology centers which would provide innovation sales and also support in the type of memory upgrades, peripheral installations. (Summary of BUG in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Organizational Behavior issues can be seen in Hollywood Rules's case as highlighted in this area.

Uneasiness regarding social modification: There is worry concerning a social change that would certainly happen as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising And Marketing with a lot of the staff members already showing unhappiness over this potential relocation. This anticipated adjustment has actually produced anxiety in the workplace which has been paired with the past stress of preparing the firm for a potential merger with Residence Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is lack of workers that can match the demanding setting of a hectic organization. Not just does this result in difficulty in finding the ideal people, it puts stress on brand-new hires as can not withstand the speed and pressure that the organization expects them to birth.

Twin Coverage Lines: Novices discover this organizational society difficult and also tough to handle specifically as dotted line partnerships are meant to be weaker as a whole as well as unbiased setting as well as performance evaluation is still done by the strong line manager. This suggests that newbies could shed clearness regarding their particular duties and also goals specifically as populated line coverage does not keep them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles despite the fact that it had actually been guessed that the last would certainly take Krasnow's setting came as an impact to her morale. Lewis may have been capable and appropriate for the job however the truth that Kransnow's separation would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from services.

Concern & Work Insecurity: Concern and also insecurity can be recognized as two major issues that Lewis would certainly be taking care of specifically as the merging has actually currently be cancelled as well as two elderly execs of the advertising division would be leaving. The entire responsibility of the department would be falling on Lewis's shoulders that would certainly not just be in charge of brining about a social change but would also have to show herself in her new role.

Incompatible Management Design of Leader: Lewis's monitoring design and its conflict with the advertising and marketing department's function can additionally be seen as an OB obstacle specifically as she has been made use of to handling problems in the operations department where workers are shown to focus on procedures as well as obtain them right. The advertising and marketing division on the other hand can be viewed as a team of people who are made use of to being nurtured by Krasnow that concentrated much more on output than procedures.

Interdepartmental Disagreements: Interdepartmental differences between three divisions, marketing, merchandizing and also operations respectively over the allotment of the marketing mix can be determined as one more OB problem. The advertising and marketing division does not share the same vision as the various other 2 departments concerning the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and also procedures divisions do not agree over the marketing mix allocation amongst one an additional either.

Disintegration in Advertising And Marketing Department: Fragmentation in between the marketing and advertising divisions can be identified as another OB concern which could need further focus. The truth that the advertising and marketing areas in the advertising and marketing division are disconnected is stopping both departments from gaining from each various other's experience and expertise. Integration of advertising and marketing with retailing and procedures would certainly end up being harder if the marketing division itself is broken down which can be an additional possible OB worry.

Hollywood Rules Analysis

Various concepts have actually been made use of to describe the circumstances to obtain more clarity regarding the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers think that staffs are easy and lazy, have little passion and stand up to modification. The hard variation of this theory emphasized threat, limited controls, threats and also punishments. In time it generates reduced performance, refined sabotage and competition (Bargain, 2003). Although the circumstance at Hollywood Rules is not completely following Theory X, it can be seen that new hires are finding this setting rather difficult which might ultimately lead to a higher disposition of the administration towards Concept X. As per McGregor's advocated view, which he called Concept Y, the important task of the administration is to organize organizational problems so that individuals can attain their very own objectives best by guiding their initiatives in the direction of business incentives. If people find no complete satisfaction in their work, the management would certainly have little selection yet to depend on concept X and outside control (Offer, 2003). Even while evaluating Lewis's administration style, theory X may have appropriated in the operations department to some extent but the Advertising department would require reliance on Concept Y so as to get the creative thinking and originality from the teams.

Tuckman's Team effort Concept: As far as Lewis's problem about bringing harmony between the marketing and advertising and marketing division is concerned, this would originally lead to contrast as talked about by Bruce Tuckman in his 'Synergy Concept'. By incorporating the advertising and also marketing division's work, there may be the same first separate which can lead to the 2nd phase of 'storming' where the groups challenge one an additional.

Bridges' Shift Model: According To William Bridge's concept (appendix 4), people are rather awkward with modification, which is noticeable by the circumstance at Hollywood Rules The situation can be seen as a normal course of life if is researched according to Bridge's concept where he clarifies that individuals experience 3 stages of transition when they experience change. 'End, losing and Letting go', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When people exist with change, they get in stage one and so there may be feelings like unhappiness, uncertainty, disappointment, temper, anxiety, denial as well as disorientation.The circumstance at the advertising and marketing department of Hollywood Rules is comparable so Lewis can obtain comfortable with the suggestion that it is not amazing habits. In the second phase, there may be a requirement to bridge the gap in between the new as well as old culture so Lewis might have to face this experience as soon as Krasnow leaves. There may be low spirits and also reduced productivity at this stage which must not be taken as a trouble. It is throughout this stage that Lewis will certainly need to give advice to the division so that they can discover a sense of direction. It can be seen how Krasnow has currently made this transition much easier by making Lewis obtain involved in the department a year before his actual departure. Based on Bridges' Design, stage 3 will produce visibility to learning, High power as well as dedication as individuals will welcome the modification (Bridges, 2004).
Vrio Analysis
Maslow's Requirement pecking order: The OB concern pertaining to instability at the office has been activated to start with by the modification in administration and secondly by the truth that the merger will no longer be launched. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has reviews the importance of 'safety requires as being a reduced degree need of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel safe and unharmed' is at the 2nd level of requirements. Prior to a staff member can be made to develop psychologically, he requires to have his 'Physical 'and also 'Safety' needs fulfilled. This suggests that unless the workers are made to really feel secure regarding their present work status in Hollywood Rules they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Hollywood Rules Case Study

Ramification of Analysis.

The OB analysis has checked out different theories to recognize exactly how to manage the present situation available. The adhering to three options have been proposed to aid Lewis manage the business difficulties in the advertising and marketing department. Each of these choices has actually been recommended for alleviating the transition required to bring the marketing division in accordance with the needs of the market and also for making the social adjustment that would certainly adhere to as soon as the current leader leaves.

Combination of marketing and advertising functions. Dividing Adverting and also Manufacturing functions. Combination of Advertising with Workflow.

Evaluation of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis during the earlier merger days has knowledge in business-to-business marketing along with agency as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to handle both advertising and marketing and also advertising features.

The benefit of this approach is that it will incorporate the two functions while lowering the requirement for employing an extra source for advertising and marketing. Along with this, Lewis would certainly be heading the marketing division and also in any case her substitute would certainly be needed for the existing role that she is doing. The downside of this choice is that exterior hiring might cause animosity from inner employees that might be considering the position of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Manufacturing: Offered the affordable stress as well as high top quality work needed from the advertising company, it is advised that Lewis needs to enable the manufacturing unit to be a different feature from the advertising system. Considering that most advertising and marketing firms had these two features as different systems, it makes even more sense to follow the norm.

Combination of Advertising with Procedures: Since Lewis is currently taking care of the advertising and operations departments at the same time; it makes sense to integrate the two features given that she has been effectively taking care of both ends. The reality that Lewis has to adjust her monitoring design for the advertising department recommends that these 2 departments would certainly be culturally varied.


An evaluation of the 3 choices indicates that assimilation of advertising and also operations would certainly not be a feasible step due to the large distinctions in between the 2 divisions in spite of the fact that presently Lewis is dealing with both. While splitting up of the production function may have been a desirable action for the advertising division, the fact that it would suggest positioning a 3rd function under Lewis's wing means this should be prevented.

Activity Plan.
Lewis will take over the function of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Production feature will continue to be component of marketing under advertising and marketing feature.

Lewis will certainly divide herself from operations.

An autonomous management style with staff member empowerment will be made use of in marketing department.

Open door policy and focus on cross department interaction will certainly be targeted at getting rid of dissonance.

Contingency strategy.

If the assimilation does not exercise as planned, a contingency plan would adhere to which would divide the manufacturing function from the marketing feature to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the manufacturing function will certainly be divided by placing it under an SVP manufacturing.