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CASE ANALYSIS

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Horizon Insurance Agency Case Study Solution

Background and Facts

Horizon Insurance Agency a workplace materials store for tiny and also average sized organisations has actually just recently been associated with preparing for a merging with its competitor Residence Deport, which has actually affected efficiency levels in departmentswith the elderly manager involved in legal difficulties put forth by the government Profession Compensation. With the Marketing Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the future. With difficulties in the type of a possible cultural modification as well as low worker morale, the company needs a full reengineering initiative at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The potential social adjustment at the marketing department of Horizon Insurance Agency is enhancing uncertainty in the working environment leading to different challenges for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing critical decisions given that Stapes Inc. needed to desert its strategies of combining with Office Deport after the Federal Trade Payment's treatment at the same time. Given the truth that the store has a worldwide existence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these nations might have the ability to impact efficiency or calculated objectives. Federal Profession Payment's antitrust suit versus the merging took up valuable time of the company's elderly management recommending that 'political' factors can have severe effects for a worldwide organisation.

Economic Factors: Financial factors such as the emergence of local business in the global scenario suggest that Horizon Insurance Agency is thriving in an environment where there is prospective growth of businesses. Fact that shop customers are mainly looking for workplace supplies for house offices recommends that the market has an increasing trend of entrepreneurs as well as home based organisations.

Social factors: Social trends in the economic situation show that consumers are looking for comfort along with eye-catching rates. Marketing research demonstrates how the client for Horizon Insurance Agency does not have recognition about discovering options which can offer a mix of convenience and also inexpensive.

Technological factors: Modern technology plays an essential function in Horizon Insurance Agency's business method particularly as the company is piloting Innovation centers which would offer innovation sales and also assistance in the form of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues and Effects.

Numerous underlying Organizational Habits concerns can be seen in Horizon Insurance Agency's case as highlighted in this area.

Apprehensions concerning social change: There is apprehension regarding a social change that would certainly occur when Todd Krasnow leaves from his setting as the Exec Vice President of Marketing with the majority of the personnel already revealing discontent over this possible step. This predicted adjustment has actually developed anxiety in the work environment which has actually been coupled with the past stress and anxiety of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is scarcity of personnel that can match the stressful environment of a fast-paced company. Not just does this cause trouble in locating the right individuals, it puts stress on new hires as can not withstand the rate as well as pressure that the organization expects them to birth.

Twin Coverage Lines: Newcomers discover this organizational society difficult and also challenging to manage especially as dotted line relationships are indicated to be weak generally and unbiased setting and also efficiency examination is still done by the strong line supervisor. This indicates that newcomers can lose quality concerning their corresponding roles as well as purposes particularly as populated line coverage does not keep them in direct interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had been guessed that the last would 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 direct record to Lewis might have been the factor for Coles' resignation from services.

Concern & Task Instability: Worry as well as insecurity can be identified as two major worries that Lewis would be dealing with specifically as the merging has now be cancelled and also 2 elderly executives of the marketing department would be leaving. The entire obligation of the division would certainly be falling on Lewis's shoulders that would certainly not just supervise of brining concerning a social adjustment however would certainly additionally need to prove herself in her new role.

Incompatible Management Design of Leader: Lewis's management style and also its conflict with the marketing department's duty can additionally be seen as an OB challenge particularly as she has actually been used to dealing with concerns in the procedures division where personnel are instructed to concentrate on processes and obtain them right. The advertising department on the other hand can be viewed as a group of individuals who are utilized to being nurtured by Krasnow that focused a lot more on output than processes.

Interdepartmental Disputes: Interdepartmental differences in between 3 departments, advertising and marketing, merchandizing and operations specifically over the allowance of the advertising mix can be identified as another OB issue. The advertising division does not share the same vision as the various other 2 divisions relating to the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and also procedures departments do not concur over the advertising and marketing mix allotment amongst one an additional either.

Fragmentation in Advertising And Marketing Division: Fragmentation in between the advertising and marketing departments can be recognized as another OB issue which could require further interest. The truth that the advertising and marketing sections in the advertising division are separated is stopping both divisions from gaining from each various other's experience as well as competence. Combination of marketing with merchandising and also procedures would certainly end up being more difficult if the advertising and marketing department itself is degenerated which can be another possible OB concern.

Horizon Insurance Agency Analysis

Various theories have actually been utilized to explain the conditions to obtain additional quality concerning the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers think that staffs are easy and also careless, have little passion and also resist change. The scenario at Horizon Insurance Agency is not completely following Theory X, it can be seen that new hires are finding this atmosphere rather stressful which might ultimately lead to a greater disposition of the management in the direction of Theory X. Even while analyzing Lewis's administration style, theory X might have been ideal in the operations department to some level yet the Advertising department would certainly call for reliance on Theory Y in order to obtain the creative thinking and creativity from the teams.

Tuckman's Teamwork Theory: As for Lewis's problem concerning bringing harmony in between the marketing and advertising division is worried, this would initially cause contrast as discussed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, throughout the initial stage of group development, people might not bond, as they are active locating their location in the team. By integrating the advertising and marketing division's job, there might coincide initial disconnect which could lead to the second stage of 'storming' where the teams test each other. Nonetheless, it is only during the third phase or 'norming' when they would certainly collaborate to share concepts prior to the team can bring about harmony in the 4th phase 'executing'.

When people are provided with change, they enter stage one as well as so there might be emotions like unhappiness, unpredictability, frustration, rage, anxiety, rejection and disorientation.The scenario at the marketing department of Horizon Insurance Agency is comparable so Lewis can obtain comfy with the idea that it is not amazing habits. It is throughout this stage that Lewis will certainly have to provide assistance to the department so that they can locate a feeling of instructions. It can be seen just how Krasnow has already made this change much easier by making Lewis obtain involved in the division a year before his actual separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has discusses the significance of 'security needs as being a reduced level requirement of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel protected and out of threat' is at the 2nd level of requirements. Prior to an employee can be made to create emotionally, he needs to have his 'Physiological 'and 'Safety' needs met.

SWOT Analysis for Horizon Insurance Agency Case Study



Effects of Analysis.

The OB analysis has considered numerous theories to understand just how to handle the present situation at hand. The following three options have been suggested to help Lewis take care of the business challenges in the marketing division. Each of these alternatives has been suggested for easing the change required to bring the marketing department according to the demands of the marketplace and also for making the social change that would certainly comply with as soon as the existing leader leaves.

Combination of advertising and marketing functions. Separating Adverting and Manufacturing functions. Assimilation of Marketing with Procedures.

Analysis of Alternatives.

Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merger days has knowledge in business-to-business marketing along with company and also retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to handle both advertising as well as advertising and marketing functions.

The benefit of this strategy is that it will incorporate both features while reducing the demand for employing an additional source for advertising. Lewis would certainly be heading the marketing division and in any kind of case her substitute would be required for the current function that she is performing. The negative aspect of this choice is that external hiring might produce bitterness from interior employees that may be looking at the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Production: Offered the affordable stress and top quality work required from the ad agency, it is recommended that Lewis should allow the manufacturing system to be a different function from the advertising and marketing unit. Given that many advertising agencies had these two functions as different units, it makes even more sense to comply with the standard. Both functions might be able to focus on their core triggers more effectively. Nonetheless, the downside of this approach would certainly be that extra costs would certainly need to be borne for setting up separate production functions. Along with this, a production head might have to be employed which might boost expenses for the company.

Combination of Advertising with Procedures: Because Lewis is currently caring for the advertising and also operations departments simultaneously; it makes good sense to incorporate both features given that she has been effectively caring for both ends. The fact that the two departments currently have significant distinctions over allocation of resources recommends that this combination might be able to cause consistency especially as Lewis would be heading both ends.However there are numerous downsides of this step specifically as it would certainly put way too much burden over Lewis's shoulders. The reality that Lewis has to adjust her management style for the marketing department suggests that these 2 divisions would certainly be culturally diverse. In addition to this, Lewis may not be able to use one type of leadership style to both departments which might result in ineffectiveness in either among both functions.

Recommendation.



An evaluation of the three options shows that combination of advertising as well as operations would not be a viable step due to the vast distinctions in between the two divisions regardless of the reality that presently Lewis is handling both. While splitting up of the production function might have been a favorable relocation for the marketing department, the truth that it would indicate placing a 3rd feature under Lewis's wing implies this ought to be stayed clear of.

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

Advertising and Marketing features would be combined.

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

Manufacturing feature will stay part of advertising under marketing feature.

Lewis will divide herself from operations.

A democratic leadership style with worker empowerment will be made use of in marketing department.

Open door plan and focus on cross departmental interaction will be focused on getting rid of dissonance.

Backup plan.

If the integration does not exercise as prepared, a backup plan would certainly comply with which would certainly 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 hired, Lewis will certainly be heading the advertising division without an SVP. In that case the production function will definitely be separated by putting it under an SVP production.