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International Speedway Corporation Case Study Solution

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International Speedway Corporation Case Study Analysis

Background and Facts

International Speedway Corporation an office materials seller for little and moderate sized businesses has lately been associated with preparing for a merging with its competitor Residence Deport, which has influenced performance levels in departmentswith the senior manager associated with legal complications presented by the federal Trade Compensation. With the Marketing Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the present head of procedures has been asked to take the duty in the near future. With challenges in the kind of a prospective social change as well as reduced worker spirits, the organization wants a complete reengineering initiative at the advertising division.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the marketing department of International Speedway Corporation is enhancing uncertainty in the working environment leading to different challenges for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting calculated choices because Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Profession Commission's intervention in the process. Offered the truth that the store has a worldwide visibility with branches in UK, USA, Canada and also Germany, political consider each of these countries might have the ability to affect performance or critical goals. Federal Profession Compensation's antitrust match against the merging occupied important time of the company's senior monitoring recommending that 'political' factors can have serious ramifications for a global company.

Economic Factors: Economic factors such as the introduction of small companies in the worldwide situation recommend that International Speedway Corporation is thriving in an environment where there is potential growth of businesses. In addition to this, reality that shop clients are mostly seeking office materials for home offices recommends that the market has a rising trend of entrepreneurs and home based services.

Social factors: Social fads in the economic situation reveal that customers are looking for comfort as well as eye-catching rates. Marketing research demonstrates how the customer for International Speedway Corporation lacks understanding regarding discovering solutions which can offer a mix of ease and also inexpensive.

Technological factors: Technology plays an important role in International Speedway Corporation's organisation approach specifically as the organization is piloting Technology centers which would certainly offer innovation sales as well as assistance in the kind of memory upgrades, outer installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Manifestations.

Several underlying Business Actions issues can be seen in International Speedway Corporation's case as highlighted in this section.

Concerns regarding social adjustment: There is worry concerning a cultural adjustment that would take place when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with most of the staff members already showing unhappiness over this prospective step. This expected change has actually developed anxiety in the office which has been combined with the past stress of preparing the firm for a potential merging with Residence Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is lack of workers that can match the demanding atmosphere of a fast-paced organization. Not only does this cause difficulty in discovering the appropriate people, it places tension on new hires as can not endure the rate as well as stress that the company anticipates them to bear.

Dual Coverage Lines: Beginners discover this organizational culture cumbersome as well as challenging to manage especially as populated line relationships are indicated to be weak generally and objective setup and efficiency assessment is still done by the solid line supervisor. This suggests that novices could shed clearness about their corresponding functions as well as goals particularly as dotted line coverage does not maintain them in straight communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had actually been hypothesized that the last would certainly take Krasnow's position came as a blow to her spirits. Lewis might have been qualified and also ideal for the task however the fact that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Job Instability: Worry as well as insecurity can be recognized as two significant issues that Lewis would certainly be dealing with especially as the merging has now be cancelled and also 2 senior execs of the advertising and marketing division would certainly be leaving. The whole responsibility of the division would be dropping on Lewis's shoulders who would not simply supervise of brining concerning a social adjustment yet would likewise have to prove herself in her brand-new duty.

Incompatible Administration Design of Leader: Lewis's monitoring style and its incompatibility with the advertising and marketing department's role can also be viewed as an OB obstacle especially as she has been used to managing issues in the operations division where employees are instructed to concentrate on procedures and get them right. The advertising division on the various other hand can be viewed as a group of individuals that are utilized to being nurtured by Krasnow that concentrated much more on result than processes.

Interdepartmental Differences: Interdepartmental differences in between 3 departments, marketing, merchandizing and procedures respectively over the appropriation of the advertising and marketing mix can be recognized as another OB worry. Although the advertising department does not share the exact same vision as the other 2 divisions relating to the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and also operations departments do not agree over the marketing mix allowance amongst one another either.

Disintegration in Advertising And Marketing Department: Disintegration between the marketing and advertising departments can be identified as an additional OB concern which can require further attention. The reality that the advertising and marketing areas in the marketing department are disconnected is stopping both departments from obtaining from each various other's experience and also experience. Integration of marketing with merchandising as well as operations would certainly come to be more difficult if the advertising and marketing division itself is broken down which can be another prospective OB concern.

International Speedway Corporation Analysis

Numerous theories have actually been used to clarify the scenarios to get more clarity regarding the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that juniors are easy as well as careless, have little aspiration as well as resist adjustment. The difficult variation of this theory emphasized coercion, tight controls, dangers and also punishments. With time it produces reduced efficiency, subtle sabotage and also rivalry (Offer, 2003). Although the scenario at International Speedway Corporation is not entirely adhering to Theory X, it can be seen that brand-new hires are locating this setting rather stressful which might at some point result in a greater inclination of the monitoring towards Theory X. Based on McGregor's supported view, which he called Theory Y, the necessary job of the monitoring is to arrange business problems to make sure that people can accomplish their very own goals best by directing their efforts in the direction of business benefits. If people discover no complete satisfaction in their work, the monitoring would certainly have little option yet to rely on concept X as well as exterior control (Offer, 2003). Even while examining Lewis's monitoring design, theory X might have been suitable in the operations division somewhat yet the Advertising division would certainly require dependence on Concept Y to get the imagination and originality from the teams.

Tuckman's Teamwork Concept: Regarding Lewis's issue concerning bringing harmony in between the advertising and marketing division is concerned, this would initially lead to conflict as gone over by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, during the first stage of team development, people might not bond, as they are hectic discovering their area in the team. By incorporating the advertising and marketing division's job, there may coincide first disconnect which might lead to the second stage of 'storming' where the groups challenge each other. It is just throughout the third phase or 'norming' when they would come with each other to share ideas before the group can bring around harmony in the fourth stage 'carrying out'.

When individuals are provided with change, they enter phase one and so there might be emotions like unhappiness, unpredictability, stress, rage, anxiety, rejection and disorientation.The situation at the advertising department of International Speedway Corporation is comparable so Lewis can obtain comfortable with the concept that it is not extraordinary behavior. It is throughout this phase that Lewis will have to offer advice to the department so that they can discover a feeling of direction. It can be seen exactly how Krasnow has actually already made this change easier by making Lewis obtain entailed in the division a year prior to his real departure.
Vrio Analysis
Maslow's Need power structure: The OB concern related to instability at the work environment has actually been set off to start with by the modification in management and also second of all by the reality that the merging will certainly no more be started. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has talks about the relevance of 'safety requires as being a lower level need of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel safe and secure and also unharmed' is at the 2nd degree of needs. Before an employee can be made to develop psychologically, he requires to have his 'Physiological 'and also 'Safety and security' requires satisfied. This indicates that unless the workers are made to feel safe and secure about their present employment standing in International Speedway Corporation they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for International Speedway Corporation Case Study



Implication of Analysis.

The OB analysis has actually checked out numerous concepts to understand just how to manage the existing circumstance available. The complying with 3 options have been recommended to help Lewis take care of the business obstacles in the advertising department. Each of these alternatives has been proposed for relieving the change needed to bring the advertising and marketing department in line with the demands of the market and also for making the cultural modification that would comply with when the current leader leaves.

Combination of marketing and advertising features. Separating Adverting and Production features. Integration of Advertising And Marketing with Procedures.

Examination of Alternatives.

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

The advantage of this method is that it will certainly integrate both functions while minimizing the requirement for employing an extra resource for marketing. In addition to this, Lewis would be heading the advertising division as well as regardless her replacement would be needed for the existing duty that she is executing. The disadvantage of this option is that outside hiring might produce animosity from interior employees that might be considering the placement of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and Manufacturing: Offered the competitive stress as well as premium quality work required from the advertising agency, it is suggested that Lewis ought to allow the manufacturing system to be a different feature from the advertising unit. Given that a lot of advertising agencies had these 2 functions as separate systems, it makes even more sense to comply with the standard. Both features may be able to concentrate on their core triggers more efficiently. Nevertheless, the drawback of this technique would be that extra expenses would need to be borne for establishing different manufacturing features. In addition to this, a manufacturing head might need to be employed which could raise expenses for the company.

Assimilation of Advertising with Workflows: Because Lewis is already looking after the marketing and also operations departments concurrently; it makes good sense to incorporate the two features given that she has actually been effectively caring for both ends. The reality that the two departments already have significant differences over allowance of resources suggests that this combination might have the ability to cause consistency especially as Lewis would certainly be heading both ends.However there are different disadvantages of this action especially as it would certainly place way too much concern over Lewis's shoulders. The reality that Lewis needs to adapt her administration style for the advertising and marketing division suggests that these 2 departments would certainly be culturally varied. Along with this, Lewis might not be able to use one sort of leadership design to both departments which can result in ineffectiveness in either among the two functions.

Recommendation.



An analysis of the 3 options suggests that integration of advertising and marketing and operations would certainly not be a practical move due to the vast distinctions between the 2 divisions despite the reality that presently Lewis is managing both. While separation of the manufacturing function might have been a positive action for the marketing division, the truth that it would imply positioning a 3rd function under Lewis's wing suggests this must be stayed clear of.

Activity Strategy.
Recommendation
Lewis will certainly take over the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Manufacturing feature will certainly continue to be part of marketing under advertising function.

Lewis will separate herself from operations.

A democratic leadership style with worker empowerment will certainly be utilized in advertising division.

Open door plan and also emphasis on cross departmental communication will certainly be aimed at eliminating disharmony.

Backup strategy.

If the assimilation does not work out as intended, a contingency strategy would follow which would separate the production feature from the advertising function to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing department without an SVP. Because case the production feature will certainly be divided by placing it under an SVP manufacturing.