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Innovative Lighting Inc Case Study Analysis

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Innovative Lighting Inc Case Study Solution

Background and Facts

Innovative Lighting Inc an office products retailer for small as well as average sized businesses has recently been associated with planning for a merging with its competitor House Deport, which has actually affected performance degrees in departmentswith the elderly manager involved in lawful problems put forth by the federal Profession Payment. With the Advertising and marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the duty in the future. With obstacles in the kind of a potential social adjustment and low worker morale, the organization requires a full reengineering effort at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective social modification at the advertising and marketing department of Innovative Lighting Inc is boosting unpredictability in the working environment causing various difficulties for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing critical decisions because Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Trade Compensation's treatment at the same time. Offered the truth that the shop has a worldwide existence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries may be able to influence performance or strategic goals. Federal Trade Payment's antitrust match versus the merger used up useful time of the organization's senior monitoring recommending that 'political' factors can have major effects for a worldwide company.

Economic Factors: Financial factors such as the development of small companies in the worldwide circumstance recommend that Innovative Lighting Inc is growing in an environment where there is possible development of organisations. Reality that store customers are primarily looking for office products for house workplaces suggests that the market has a climbing fad of entrepreneurs and also house based companies.

Social factors: Social trends in the economic climate reveal that clients are looking for comfort along with eye-catching prices. Market research shows how the client for Innovative Lighting Inc does not have recognition regarding discovering options which can use a combination of convenience as well as affordable.

Technological factors: Modern technology plays a vital function in Innovative Lighting Inc's organisation approach specifically as the organization is piloting Modern technology facilities which would certainly provide technology sales as well as support in the kind of memory upgrades, peripheral setups. (Recap of INSECT in appendix 2).

OB Issues and also Effects.

Several underlying Organizational Habits problems can be seen in Innovative Lighting Inc's case as highlighted in this area.

Concerns concerning social change: There is concern concerning a social change that would certainly take place as soon as Todd Krasnow leaves from his setting as the Executive Vice President of Advertising with the majority of the employee currently revealing unhappiness over this prospective step. This expected adjustment has developed anxiety in the office which has actually been combined with the previous stress and anxiety of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is scarcity of workers that can match the stressful setting of a fast-paced organization. Not just does this bring about trouble in locating the best people, it places tension on brand-new hires as can not endure the speed and pressure that the company expects them to bear.

Twin Reporting Lines: Newcomers discover this organizational culture difficult as well as hard to manage especially as populated line relationships are indicated to be weak in general and objective setting and efficiency examination is still done by the solid line supervisor. This suggests that novices might shed clearness about their respective functions and also goals specifically as dotted line reporting does not keep them in straight interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles although it had been guessed that the last would certainly take Krasnow's position came as an impact to her spirits. Lewis might have been capable and suitable for the work yet the fact that Kransnow's departure would make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Work Instability: Anxiety as well as insecurity can be determined as two significant problems that Lewis would certainly be managing especially as the merging has actually currently be cancelled as well as 2 elderly executives of the advertising and marketing department would certainly be leaving. The whole duty of the division would be dropping on Lewis's shoulders that would not just be in charge of brining regarding a social adjustment yet would certainly likewise need to verify herself in her brand-new function.

Incompatible Management Style of Leader: Lewis's administration design as well as its conflict with the marketing department's function can likewise be seen as an OB difficulty specifically as she has been used to handling concerns in the operations department where employees are educated to concentrate on procedures as well as obtain them. The marketing department on the other hand can be seen as a team of people who are utilized to being supported by Krasnow that concentrated a lot more on output than processes.

Interdepartmental Differences: Interdepartmental disagreements in between 3 divisions, advertising and marketing, merchandizing and also procedures specifically over the allocation of the marketing mix can be identified as one more OB concern. Although the advertising division does not share the very same vision as the other two departments relating to the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and also operations divisions do not agree over the advertising mix appropriation among one another either.

Disintegration in Advertising Department: Fragmentation between the marketing and advertising divisions can be recognized as one more OB issue which can require more focus. The reality that the marketing and advertising areas in the marketing department are separated is stopping both divisions from obtaining from each various other's experience as well as knowledge. Integration of marketing with merchandising and operations would certainly end up being harder if the marketing department itself is disintegrated which can be another prospective OB issue.

Innovative Lighting Inc Analysis

Various theories have actually been made use of to discuss the scenarios to get additional quality regarding the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers believe that subordinates are passive and also careless, have little passion as well as resist change. The difficult variation of this concept highlighted threat, limited controls, risks as well as penalties. In time it creates low productivity, refined sabotage and also competition (Deal, 2003). Although the situation at Innovative Lighting Inc is not entirely complying with Theory X, it can be seen that new hires are locating this atmosphere instead difficult which might ultimately cause a higher inclination of the monitoring in the direction of Theory X. Based on McGregor's promoted view, which he called Theory Y, the vital job of the administration is to organize organizational problems so that individuals can attain their own objectives best by guiding their initiatives in the direction of business rewards. If people find no contentment in their job, the management would have little selection however to count on concept X and also outside control (Deal, 2003). Even while assessing Lewis's administration design, theory X may have appropriated in the procedures division somewhat yet the Advertising and marketing division would certainly require dependence on Concept Y to get the imagination as well as originality from the groups.

Tuckman's Team effort Concept: As for Lewis's issue concerning bringing harmony in between the advertising and marketing department is worried, this would initially result in clash as talked about by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, during the preliminary phase of group growth, people may not bond, as they are active discovering their location in the group. By incorporating the advertising and marketing division's job, there may coincide initial detach which could cause the 2nd phase of 'storming' where the groups challenge each other. It is only throughout the 3rd stage or 'norming' when they would come with each other to share concepts prior to the group can bring about harmony in the fourth stage 'carrying out'.

Bridges' Change Model: According To William Bridge's theory (appendix 4), people are quite unpleasant with modification, which is obvious by the scenario at Innovative Lighting Inc The circumstance can be seen as a regular program of life if is studied as per Bridge's concept where he describes that individuals experience 3 phases of change when they experience adjustment. 'End, shedding and Releasing', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people are presented with modification, they enter phase one and so there may be feelings like despair, uncertainty, irritation, rage, anxiety, denial as well as disorientation.The scenario at the marketing division of Innovative Lighting Inc is comparable so Lewis can obtain comfortable with the concept that it is not extraordinary habits. In the 2nd stage, there may be a demand to bridge the gap in between the brand-new as well as old society so Lewis might have to face this challenge once Krasnow leaves. There may be reduced morale as well as low productivity at this phase which should not be taken as an obstacle. It is during this stage that Lewis will certainly need to provide support to the division to make sure that they can find a sense of direction. It can be seen how Krasnow has actually currently made this change easier by making Lewis obtain associated with the division a year before his real separation. As per Bridges' Design, phase three will certainly cause openness to understanding, High energy and dedication as people will accept the change (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB problem related to instability at the office has been set off first of all by the adjustment in monitoring as well as second of all by the reality that the merging will certainly no longer be launched. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the relevance of 'security needs as being a reduced degree demand of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to really feel safe as well as unharmed' is at the 2nd degree of requirements. Prior to a staff member can be made to develop psychologically, he requires to have his 'Physiological 'as well as 'Security' requires met. This shows that unless the employees are made to feel secure about their current employment status in Innovative Lighting Inc they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Innovative Lighting Inc Case Study



Ramification of Analysis.

The OB analysis has taken a look at different theories to recognize how to deal with the present situation available. The complying with 3 alternatives have been proposed to assist Lewis manage the organizational difficulties in the marketing division. Each of these choices has actually been recommended for relieving the transition required to bring the advertising division according to the requirements of the marketplace and for making the cultural adjustment that would comply with when the current leader leaves.

Combination of marketing and advertising features. Dividing Adverting and also Production functions. Integration of Marketing with Workflow.

Analysis of Alternatives.

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

The advantage of this technique is that it will certainly integrate both features while reducing the requirement for working with an extra source for advertising and marketing. Lewis would certainly be heading the advertising department and also in any kind of case her replacement would certainly be needed for the current role that she is performing. The downside of this choice is that exterior hiring may bring about animosity from interior personnel who may be eying the setting of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Production: Provided the competitive stress and also premium quality work required from the ad agency, it is recommended that Lewis ought to allow the manufacturing device to be a separate function from the advertising device. Since a lot of advertising agencies had these 2 functions as separate devices, it makes even more sense to follow the norm. Along with this, both features might have the ability to concentrate on their core turns on more effectively. Nonetheless, the drawback of this strategy would certainly be that extra prices would have to be borne for setting up different production features. A manufacturing head may have to be worked with which could raise overheads for the organization.

Combination of Marketing with Workflows: Given that Lewis is currently taking care of the advertising and marketing and operations departments simultaneously; it makes feeling to integrate the two functions because she has been successfully taking treatment of both ends. The fact that Lewis has to adapt her administration style for the advertising division recommends that these two divisions would certainly be culturally diverse.

Suggestion.



An assessment of the 3 options indicates that integration of advertising and marketing as well as operations would certainly not be a possible step due to the large differences between the two departments despite the fact that currently Lewis is handling both. While separation of the production function might have been a desirable step for the marketing division, the truth that it would mean putting a third feature under Lewis's wing implies this ought to be prevented.

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

Marketing and advertising functions would be merged.

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

Production function will certainly stay part of advertising and marketing under advertising function.

Lewis will separate herself from operations.

A democratic leadership design with staff member empowerment will certainly be made use of in advertising division.

Open up door policy and also focus on cross department communication will certainly be aimed at getting rid of disharmony.

Contingency plan.

If the assimilation does not exercise as prepared, a backup plan would certainly follow which would separate the production function from the advertising feature to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the manufacturing function will definitely be divided by positioning it under an SVP manufacturing.