Menu

Island Ecn Case Study Help

CASE SOLUTION

Home >> Harvard >> Island Ecn >>

Island Ecn Case Study Help

Background and Facts

Island Ecn an office materials store for little as well as moderate sized businesses has lately been involved in preparing for a merger with its rival Residence Deport, which has impacted efficiency degrees in departmentswith the senior supervisor involved in legal issues presented by the government Trade Commission. With the Advertising and marketing Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the function in the near future. With difficulties in the kind of a potential cultural adjustment as well as reduced staff member spirits, the organization is in need of a full reengineering initiative at the marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The potential cultural modification at the advertising and marketing department of Island Ecn is boosting uncertainty in the workplace bring about numerous obstacles 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 function in influencing tactical choices since Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Trade Payment's intervention in the process. Provided the reality that the store has an international existence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these nations may have the ability to affect efficiency or critical goals. Federal Trade Payment's antitrust match versus the merger occupied useful time of the company's senior management suggesting that 'political' factors can have significant effects for a worldwide company.

Economic Factors: Financial factors such as the development of small businesses in the international situation suggest that Island Ecn is prospering in an atmosphere where there is prospective growth of organisations. Fact that store consumers are primarily looking for office products for residence offices recommends that the market has an increasing fad of business owners and also house based organisations.

Social factors: Social trends in the economic situation reveal that customers are seeking convenience along with attractive costs. Market research shows how the client for Island Ecn does not have understanding about finding remedies which can supply a combination of convenience and inexpensive.

Technological factors: Technology plays an important function in Island Ecn's service strategy specifically as the company is piloting Modern technology facilities which would certainly use technology sales and support in the type of memory upgrades, outer installations. (Summary of INSECT in appendix 2).

OB Issues and also Symptoms.

A number of underlying Organizational Actions problems can be seen in Island Ecn's case as highlighted in this section.

Worries regarding cultural adjustment: There is worry about a cultural adjustment that would take place once Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising with a lot of the personnel currently showing unhappiness over this prospective move. This predicted adjustment has produced stress and anxiety in the office which has actually been coupled with the past stress and anxiety of preparing the company for a prospective merging with House Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is shortage of employees that can match the stressful environment of a fast-paced organization. Not just does this bring about problem in locating the right people, it puts stress on new hires as can not hold up against the pace as well as stress that the organization expects them to birth.

Dual Reporting Lines: Newbies locate this organizational society cumbersome as well as tough to cope with specifically as populated line relationships are suggested to be weak as a whole and also unbiased setup as well as efficiency analysis is still done by the strong line supervisor. This suggests that beginners might shed quality concerning their respective roles and also purposes especially as populated line reporting does not keep them in straight communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had been guessed that the last would certainly take Krasnow's placement came as a blow to her morale. Lewis might have been capable and suitable for the work however the reality that Kransnow's separation would make Coles a straight record to Lewis might have been the reason for Coles' resignation from services.

Concern & Work Instability: Anxiety and insecurity can be identified as 2 significant problems that Lewis would certainly be managing especially as the merging has actually now be cancelled and two senior executives of the advertising and marketing division would be leaving. The whole responsibility of the department would be dropping on Lewis's shoulders that would certainly not just supervise of brining about a cultural change but would also need to verify herself in her brand-new function.

Incompatible Management Style of Leader: Lewis's administration style and its incompatibility with the marketing division's function can additionally be seen as an OB challenge especially as she has been utilized to managing problems in the procedures department where workers are shown to focus on processes and also get them. The advertising and marketing division on the various other hand can be seen as a team of individuals that are utilized to being nurtured by Krasnow who concentrated extra on result than processes.

Interdepartmental Disputes: Interdepartmental differences in between 3 divisions, advertising, merchandizing and also procedures respectively over the allocation of the marketing mix can be identified as one more OB problem. Although the advertising department does not share the exact same vision as the other two divisions relating to the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and operations departments do not agree over the advertising and marketing mix allotment among one another either.

Fragmentation in Advertising Department: Fragmentation between the advertising and marketing departments can be determined as an additional OB issue which might require further attention. The fact that the marketing and advertising sections in the advertising and marketing division are separated is preventing both departments from gaining from each various other's experience and also experience. Assimilation of marketing with merchandising as well as operations would certainly end up being more difficult if the advertising division itself is degenerated which can be one more potential OB issue.

Island Ecn Analysis

Numerous concepts have been made use of to clarify the circumstances to obtain additional quality concerning the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of managers think that juniors are easy and careless, have little ambition and resist adjustment. The scenario at Island Ecn is not entirely complying with Concept X, it can be seen that new hires are locating this setting rather difficult which might ultimately lead to a greater disposition of the management in the direction of Concept X. Even while evaluating Lewis's management design, theory X may have been ideal in the operations department to some extent yet the Advertising division would require dependence on Theory Y in order to obtain the creativity as well as originality from the teams.

Tuckman's Teamwork Concept: As for Lewis's problem concerning bringing consistency in between the marketing and advertising division is worried, this would at first cause contrast as gone over by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's concept received appendix 3, during the preliminary phase of group advancement, individuals may not bond, as they are busy locating their place in the group. By integrating the marketing and advertising department's work, there may be the same preliminary separate which might cause the second stage of 'storming' where the teams test one another. It is only during the 3rd phase or 'norming' when they would come together to share ideas prior to the group can bring about harmony in the 4th phase 'executing'.

Bridges' Change Version: According To William Bridge's theory (appendix 4), individuals are quite uneasy with modification, which is noticeable by the circumstance at Island Ecn The situation can be seen as a normal course of life if is studied based on Bridge's concept where he clarifies that people go through three stages of shift when they experience modification. 'End, shedding and Releasing', The Neutral Area and also 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they get in stage one and so there might be feelings like unhappiness, unpredictability, irritation, anger, worry, rejection and also disorientation.The circumstance at the marketing division of Island Ecn is similar so Lewis can get comfy with the concept that it is not remarkable actions. In the 2nd stage, there may be a requirement to link the gap between the brand-new and old society so Lewis might have to face this ordeal when Krasnow leaves. There may be low morale and also reduced efficiency at this stage which need to not be taken as a setback. It is throughout this stage that Lewis will certainly need to provide advice to the department to make sure that they can discover a sense of direction. It can be seen exactly how Krasnow has already made this transition simpler by making Lewis obtain associated with the division a year before his real separation. As per Bridges' Model, stage three will produce openness to understanding, High energy as well as commitment as people will accept the modification (Bridges, 2004).
Vrio Analysis
Maslow's Requirement pecking order: The OB concern related to instability at the office has actually been triggered to start with by the change in administration and second of all by the reality that the merger will no more be started. Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has discusses the importance of 'security requires as being a lower level need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel safe and also safe' is at the 2nd level of demands. Before a worker can be made to create psychologically, he needs to have his 'Physiological 'as well as 'Security' requires met. This suggests that unless the employees are made to really feel safe regarding their existing employment condition in Island Ecn they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Island Ecn Case Study



Implication of Analysis.

The OB analysis has checked out numerous concepts to understand exactly how to manage the existing circumstance handy. The adhering to three options have been proposed to assist Lewis deal with the business challenges in the advertising department. Each of these options has been proposed for alleviating the shift required to bring the advertising and marketing division according to the requirements of the marketplace and also for making the social adjustment that would comply with once the current leader leaves.

Integration of advertising and marketing functions. Separating Adverting as well as Production functions. Combination of Advertising with Workflow.

Examination of Alternatives.

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

The advantage of this method is that it will incorporate both features while minimizing the need for working with an extra resource for advertising. Along with this, Lewis would certainly be heading the advertising division and in any case her replacement would be needed for the present role that she is doing. The disadvantage of this choice is that outside hiring may produce resentment from internal personnel who might be looking at the position of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and also Manufacturing: Offered the affordable pressures and also high top quality job called for from the advertising and marketing firm, it is recommended that Lewis ought to permit the production device to be a separate function from the marketing unit. Given that many advertising firms had these two features as different systems, it makes even more sense to adhere to the standard.

Assimilation of Advertising with Operations: Given that Lewis is currently taking care of the advertising and marketing as well as operations divisions concurrently; it makes good sense to integrate both functions since she has actually been successfully taking care of both ends. The truth that the two departments currently have significant differences over allocation of sources recommends that this assimilation might be able to cause consistency especially as Lewis would certainly be heading both ends.However there are different disadvantages of this move specifically as it would place too much concern over Lewis's shoulders. The reality that Lewis needs to adjust her administration style for the marketing division suggests that these two departments would be culturally varied. In addition to this, Lewis might not have the ability to apply one type of management design to both divisions which can lead to inefficiency in either among both functions.

Suggestion.



An assessment of the 3 alternatives shows that integration of marketing as well as procedures would not be a possible step due to the large distinctions between the two divisions in spite of the fact that currently Lewis is taking care of both. While splitting up of the production feature might have been a beneficial step for the advertising division, the truth that it would certainly suggest putting a 3rd function under Lewis's wing implies this ought to be avoided.

Action Plan.
Recommendation
Lewis will certainly take over the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Manufacturing function will certainly stay part of marketing under marketing feature.

Lewis will certainly separate herself from operations.

A democratic management design with staff member empowerment will certainly be used in advertising and marketing department.

Open door plan as well as emphasis on cross department communication will be targeted at eliminating disharmony.

Contingency plan.

If the combination does not work out as planned, a contingency strategy would certainly comply with which would divide the production function from the advertising feature to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the marketing division without an SVP. In that case the production feature will absolutely be divided by placing it under an SVP manufacturing.