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Ireland Celtic Tiger Case Study Solution

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Ireland Celtic Tiger Case Study Help

Background and Facts

Ireland Celtic Tiger an office materials retailer for small and also moderate sized services has actually recently been associated with preparing for a merger with its competitor House Deport, which has actually affected efficiency degrees in departmentswith the elderly manager associated with lawful complications presented by the government Profession Compensation. With the Advertising and marketing Head advancing the news of his departure from the company in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the duty in the future. With difficulties in the form of a prospective social change and also reduced worker morale, the organization requires a total reengineering effort at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The potential cultural modification at the advertising division of Ireland Celtic Tiger is enhancing uncertainty in the working environment bring about various challenges for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting calculated choices because Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Profession Commission's treatment while doing so. Given the fact that the shop has a worldwide visibility with branches in UK, UNITED STATES, Canada and Germany, political consider each of these countries may be able to affect efficiency or strategic goals. Federal Profession Compensation's antitrust fit versus the merging took up important time of the organization's elderly administration recommending that 'political' factors can have severe effects for a worldwide business.

Economic Factors: Economic factors such as the introduction of local business in the global situation suggest that Ireland Celtic Tiger is prospering in an atmosphere where there is prospective growth of organisations. In addition to this, truth that shop customers are mostly looking for office supplies for office recommends that the marketplace has a rising trend of entrepreneurs and also home organisations.

Social factors: Social patterns in the economic situation show that customers are searching for convenience as well as attractive costs. Market research demonstrates how the consumer for Ireland Celtic Tiger lacks awareness concerning finding solutions which can use a mix of benefit and also inexpensive.

Technical factors: Innovation plays an essential function in Ireland Celtic Tiger's business method particularly as the organization is piloting Innovation centers which would supply technology sales and also support in the form of memory upgrades, outer installations. (Recap of PARASITE in appendix 2).

OB Issues as well as Manifestations.

Several underlying Business Actions issues can be seen in Ireland Celtic Tiger's case as highlighted in this area.

Worries about cultural change: There is uneasiness concerning a social adjustment that would occur when Todd Krasnow leaves from his setting as the Exec Vice President of Marketing with most of the personnel currently revealing discontent over this potential relocation. This anticipated change has produced stress and anxiety in the work environment which has been combined with the past stress and anxiety of preparing the firm for a prospective merging with Home Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is shortage of personnel that can match the stressful environment of a hectic company. Not just does this lead to problem in locating the best people, it places stress and anxiety on brand-new hires as can not withstand the rate and pressure that the organization anticipates them to birth.

Double Coverage Lines: Newcomers discover this organizational culture troublesome and difficult to deal with particularly as populated line partnerships are implied to be weak as a whole as well as unbiased setting and performance evaluation is still done by the solid line manager. This implies that newcomers could shed quality regarding their corresponding functions and purposes especially as dotted line coverage does not maintain them in direct communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles despite the fact that it had been speculated that the last would take Krasnow's placement came as a blow to her morale. Lewis may have been capable and appropriate for the work but the truth that Kransnow's departure would make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Concern & Work Instability: Worry and instability can be identified as 2 significant problems that Lewis would be dealing with particularly as the merger has now be cancelled as well as 2 senior executives of the marketing division would be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders who would not simply supervise of brining concerning a cultural adjustment however would certainly also have to confirm herself in her new role.

Incompatible Management Design of Leader: Lewis's management design as well as its incompatibility with the advertising and marketing division's function can likewise be viewed as an OB challenge specifically as she has actually been used to managing concerns in the operations department where employees are educated to focus on procedures and also get them right. The advertising and marketing department on the various other hand can be viewed as a group of people who are used to being supported by Krasnow who focused much more on output than processes.

Interdepartmental Disputes: Interdepartmental disagreements in between 3 departments, advertising, merchandizing and procedures specifically over the allowance of the advertising and marketing mix can be identified as an additional OB worry. Although the advertising department does not share the very same vision as the other 2 divisions pertaining to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and procedures departments do not agree over the marketing mix appropriation amongst each other either.

Disintegration in Marketing Division: Fragmentation in between the marketing and advertising divisions can be determined as one more OB concern which might require more focus. The reality that the marketing and advertising areas in the advertising and marketing department are detached is protecting against both divisions from acquiring from each other's experience and also expertise. Assimilation of advertising and marketing with retailing as well as procedures would certainly come to be harder if the marketing department itself is broken down which can be another possible OB worry.

Ireland Celtic Tiger Analysis

Different concepts have been utilized to explain the scenarios to obtain more clarity about the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors think that juniors are passive and also careless, have little aspiration and also stand up to adjustment. The hard variation of this theory emphasized threat, limited controls, risks as well as punishments. Gradually it creates reduced productivity, refined sabotage and also competition (Deal, 2003). Although the circumstance at Ireland Celtic Tiger is not totally following Concept X, it can be seen that new hires are locating this setting rather difficult which might eventually lead to a better disposition of the monitoring in the direction of Theory X. Based on McGregor's promoted sight, which he called Theory Y, the crucial task of the management is to set up business problems to ensure that people can attain their own goals best by directing their efforts towards organizational incentives. If individuals discover no complete satisfaction in their job, the administration would certainly have little choice but to depend on concept X as well as outside control (Bargain, 2003). Also while examining Lewis's administration style, theory X may have appropriated in the procedures division to some extent however the Marketing department would certainly require reliance on Concept Y so as to get the imagination and originality from the teams.

Tuckman's Team effort Concept: As far as Lewis's worry about bringing harmony in between the advertising and marketing and also advertising division is concerned, this would initially lead to clash as talked about by Bruce Tuckman in his 'Synergy Concept'. By incorporating the advertising and also marketing department's job, there might be the very same initial detach which can lead to the 2nd stage of 'storming' where the teams challenge one an additional.

Bridges' Shift Version: Based On William Bridge's theory (appendix 4), people are rather unpleasant with change, which is obvious by the circumstance at Ireland Celtic Tiger The scenario can be seen as a normal training course of life if is examined according to Bridge's concept where he clarifies that people undergo three phases of shift when they experience change. 'Ending, shedding and Releasing', The Neutral Area and 'The New Beginning' (Bridges, 2004). When individuals are presented with adjustment, they get in stage one therefore there might be emotions like despair, unpredictability, frustration, temper, concern, rejection and disorientation.The scenario at the marketing division of Ireland Celtic Tiger is comparable so Lewis can get comfy with the idea that it is not amazing behavior. In the 2nd phase, there may be a demand to bridge the void in between the brand-new and also old culture so Lewis might need to encounter this challenge when Krasnow leaves. There might be low morale and also low efficiency at this phase which should not be taken as an obstacle. It is throughout this stage that Lewis will have to provide assistance to the department so that they can discover a sense of direction. It can be seen just how Krasnow has actually already made this shift easier by making Lewis obtain involved in the division a year before his real separation. Based on Bridges' Design, phase 3 will bring about visibility to knowing, High power as well as dedication as individuals will certainly embrace the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has talks about the importance of 'security needs as being a reduced degree demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel safe and secure and also out of danger' is at the second degree of demands. Prior to an employee can be made to develop emotionally, he requires to have his 'Physical 'as well as 'Safety' requires satisfied.

SWOT Analysis for Ireland Celtic Tiger Case Study



Effects of Analysis.

The OB analysis has actually taken a look at various theories to understand exactly how to deal with the existing scenario at hand. The following three choices have actually been proposed to help Lewis deal with the organizational obstacles in the advertising and marketing division. Each of these alternatives has actually been suggested for reducing the change needed to bring the advertising and marketing department in line with the demands of the market and for making the social modification that would certainly follow once the existing leader leaves.

Assimilation of marketing and advertising features. Separating Adverting and also Manufacturing functions. Integration of Advertising with Workflow.

Analysis of Alternatives.

Assimilation of Marketing & Advertising And Marketing Functions: The in-house advertising firm of Ireland Celtic Tiger is currently stamina for the organization in terms of conserving up on overheads related to advertising and marketing and promotion. Because no new employment has actually been done after Bridget Cole's separation with the coverage line being directly appointed to Krasnow for the marketing function, this is a positive opportunity for incorporating the advertising and marketing features. Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merging days has proficiency in business-to-business marketing along with company as well as retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to deal with both advertising and marketing functions.

The advantage of this strategy is that it will certainly integrate both features while reducing the demand for working with an added source for advertising and marketing. Lewis would certainly be heading the advertising division and in any kind of case her replacement would certainly be needed for the present function that she is doing. The negative aspect of this option is that exterior hiring may produce resentment from interior employees who may be considering the placement of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and Production: Offered the competitive pressures and excellent quality job called for from the advertising agency, it is recommended that Lewis should enable the production system to be a different function from the marketing unit. Since many ad agency had these 2 functions as different devices, it makes more feeling to follow the standard. Both features may be able to concentrate on their core activates much more successfully. The downside of this approach would be that additional costs would certainly have to be birthed for setting up separate manufacturing functions. In addition to this, a production head may need to be employed which could raise expenses for the company.

Integration of Advertising with Operations: Considering that Lewis is currently looking after the advertising and marketing and operations divisions at the same time; it makes sense to incorporate the two functions given that she has actually been efficiently taking care of both ends. The reality that the two departments already have major differences over allotment of sources suggests that this combination might have the ability to bring about consistency particularly as Lewis would certainly be heading both ends.However there are various negative aspects of this step specifically as it would put excessive concern over Lewis's shoulders. The reality that Lewis needs to adjust her administration style for the advertising department recommends that these two divisions would certainly be culturally diverse. In addition to this, Lewis might not be able to use one type of management style to both departments which can result in inadequacy in either among the two features.

Recommendation.



An evaluation of the 3 choices shows that assimilation of advertising and marketing and also operations would not be a possible move because of the substantial differences in between both divisions despite the fact that currently Lewis is managing both. While splitting up of the production feature might have been a beneficial action for the advertising and marketing division, the fact that it would certainly imply putting a 3rd function under Lewis's wing suggests this must be avoided. The combination of the marketing department is the best alternative in terms of obtaining the ideal arise from the division. An action plan for this choice is reviewed below.

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

Advertising and Marketing functions would certainly be combined.

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

Manufacturing feature will remain component of advertising under marketing feature.

Lewis will separate herself from operations.

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

Open up door plan and focus on cross departmental communication will certainly be focused on removing disharmony.

Backup plan.

If the integration does not work out as intended, a backup strategy would certainly adhere to which would separate the production function from the advertising and marketing function to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing division without an SVP. Because case the manufacturing feature will most definitely be separated by putting it under an SVP production.