Menu

Johansens The New Scorecard System Northeast Regional Manager Handout 5 Case Study Analysis

CASE SOLUTION

Home >> Harvard >> Johansens The New Scorecard System Northeast Regional Manager Handout 5 >>

Johansens The New Scorecard System Northeast Regional Manager Handout 5 Case Study Solution

Background and Facts

Johansens The New Scorecard System Northeast Regional Manager Handout 5 a workplace supplies merchant for small and also moderate sized companies has actually lately been associated with planning for a merger with its rival Home Deport, which has affected efficiency levels in departmentswith the elderly supervisor involved in lawful complications presented by the federal Profession Payment. With the Advertising Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the function in the future. With obstacles in the type of a prospective social modification and also reduced worker morale, the organization requires a total reengineering initiative at the advertising and marketing department.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural change at the marketing department of Johansens The New Scorecard System Northeast Regional Manager Handout 5 is enhancing unpredictability in the workplace causing various obstacles for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting strategic decisions because Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Profession Payment's treatment while doing so. Offered the fact that the store has a global presence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these countries might be able to influence efficiency or strategic goals. Federal Profession Payment's antitrust match versus the merging occupied beneficial time of the organization's elderly management recommending that 'political' factors can have significant ramifications for a worldwide organisation.

Economic Factors: Economic factors such as the appearance of small businesses in the worldwide scenario suggest that Johansens The New Scorecard System Northeast Regional Manager Handout 5 is flourishing in an atmosphere where there is possible development of services. Reality that store customers are mainly looking for office materials for house workplaces recommends that the market has an increasing trend of entrepreneurs and home based businesses.

Social factors: Social fads in the economic climate show that consumers are searching for convenience as well as appealing costs. Market research shows how the consumer for Johansens The New Scorecard System Northeast Regional Manager Handout 5 lacks awareness concerning discovering options which can offer a combination of comfort and also inexpensive.

Technological factors: Technology plays a vital function in Johansens The New Scorecard System Northeast Regional Manager Handout 5's company method specifically as the company is piloting Innovation centers which would certainly supply innovation sales and support in the type of memory upgrades, outer installations. (Recap of BUG in appendix 2).

OB Issues and also Symptoms.

Several underlying Business Actions problems can be seen in Johansens The New Scorecard System Northeast Regional Manager Handout 5's case as highlighted in this area.

Concerns regarding social change: There is concern about a cultural change that would certainly occur when Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with most of the personnel currently revealing discontent over this potential action. This expected change has created tension in the workplace which has actually been combined with the previous stress and anxiety of preparing the firm for a potential merging with Residence Deport.
Pest Analysis
Stressful Task Environment for Newcomers: There is scarcity of employees that can match the stressful environment of a hectic organization. Not just does this result in trouble in discovering the right individuals, it puts tension on brand-new hires as can not hold up against the rate and stress that the organization expects them to birth.

Twin Coverage Lines: Newbies discover this business society difficult and also difficult to manage especially as dotted line relationships are meant to be weaker in general and unbiased setup and also efficiency evaluation is still done by the strong line supervisor. This suggests that newbies could shed clarity about their corresponding functions and goals particularly as populated line reporting does not keep them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles despite the fact that it had been hypothesized that the latter would certainly take Krasnow's setting came as an impact to her morale. Lewis might have been qualified as well as proper for the work yet the truth that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Worry & Task Insecurity: Concern as well as insecurity can be determined as two significant problems that Lewis would certainly be handling specifically as the merger has actually currently be cancelled and 2 senior executives of the advertising and marketing division would certainly be leaving. The entire obligation of the division would be dropping on Lewis's shoulders who would not simply be in charge of brining about a cultural modification yet would likewise have to show herself in her brand-new function.

Incompatible Administration Style of Leader: Lewis's monitoring design as well as its conflict with the advertising and marketing department's duty can additionally be seen as an OB obstacle especially as she has actually been utilized to taking care of concerns in the operations department where employees are educated to concentrate on processes and also obtain them right. The marketing division on the other hand can be viewed as a team of people who are used to being supported by Krasnow who concentrated a lot more on result than processes.

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

Disintegration in Advertising And Marketing Division: Fragmentation between the marketing and advertising divisions can be identified as one more OB problem which might require more interest. The truth that the advertising and marketing areas in the marketing division are separated is avoiding both divisions from getting from each other's experience and also experience. Combination of advertising and marketing with retailing and also operations would become harder if the advertising and marketing department itself is broken down which can be an additional potential OB worry.

Johansens The New Scorecard System Northeast Regional Manager Handout 5 Analysis

Numerous concepts have actually been made use of to explain the circumstances to obtain more clearness regarding the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that subordinates are easy as well as lazy, have little ambition and resist modification. The scenario at Johansens The New Scorecard System Northeast Regional Manager Handout 5 is not entirely following Theory X, it can be seen that brand-new hires are finding this atmosphere instead demanding which might ultimately lead to a greater inclination of the administration towards Concept X. Even while evaluating Lewis's monitoring design, theory X may have been suitable in the procedures division to some level but the Advertising department would certainly need dependence on Concept Y in order to get the creative thinking and also creativity from the teams.

Tuckman's Teamwork Concept: As far as Lewis's problem concerning bringing harmony in between the advertising and marketing and also advertising and marketing department is concerned, this would at first lead to conflict as gone over by Bruce Tuckman in his 'Teamwork Concept'. By integrating the advertising and marketing and also advertising division's job, there might be the very same preliminary separate which might lead to the second stage of 'storming' where the groups challenge one another.

Bridges' Change Design: Based On William Bridge's theory (appendix 4), people are fairly awkward with adjustment, which is evident by the situation at Johansens The New Scorecard System Northeast Regional Manager Handout 5 The circumstance can be seen as a regular training course of life if is examined based on Bridge's concept where he clarifies that individuals go through three stages of shift when they experience change. 'Ending, losing as well as Releasing', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When people are presented with modification, they enter phase one and so there may be feelings like despair, uncertainty, frustration, rage, worry, rejection as well as disorientation.The situation at the advertising division of Johansens The New Scorecard System Northeast Regional Manager Handout 5 is similar so Lewis can obtain comfy with the concept that it is not remarkable behavior. In the 2nd stage, there might be a demand to connect the gap in between the new and old society so Lewis may need to encounter this ordeal as soon as Krasnow leaves. There may be reduced morale as well as low performance at this stage which ought to not be taken as a setback. It is throughout this stage that Lewis will certainly need to give assistance to the division so that they can locate a sense of direction. It can be seen just how Krasnow has actually currently made this shift simpler by making Lewis get involved in the division a year before his real separation. Based on Bridges' Version, stage three will certainly bring about visibility to discovering, High power as well as commitment as people will welcome the change (Bridges, 2004).
Vrio Analysis
Maslow's Requirement power structure: The OB problem related to insecurity at the work environment has been caused to start with by the modification in monitoring and also second of all by the truth that the merger will certainly no more be initiated. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has goes over the value of 'safety and security requires as being a lower degree need of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the requirement to really feel protected and safe' goes to the second degree of requirements. Prior to a staff member can be made to develop emotionally, he needs to have his 'Physical 'as well as 'Safety' requires met. This shows that unless the workers are made to feel secure about their current employment standing in Johansens The New Scorecard System Northeast Regional Manager Handout 5 they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Johansens The New Scorecard System Northeast Regional Manager Handout 5 Case Study



Implication of Analysis.

The OB analysis has actually checked out numerous theories to understand exactly how to handle the existing circumstance available. The following three choices have actually been proposed to help Lewis deal with the organizational challenges in the advertising and marketing department. Each of these alternatives has been recommended for easing the change required to bring the advertising and marketing department in accordance with the requirements of the market and for making the social change that would certainly follow as soon as the present leader leaves.

Assimilation of marketing and advertising features. Separating Adverting as well as Production functions. Integration of Marketing with Operations.

Examination of Alternatives.

Integration of Advertising And Marketing & Marketing Functions: The in-house marketing agency of Johansens The New Scorecard System Northeast Regional Manager Handout 5 is currently toughness for the company in terms of conserving up on overheads connected to advertising and also promo. Given that no brand-new employment has been done after Bridget Cole's separation with the reporting line being directly appointed to Krasnow for the advertising function, this is a favorable possibility for incorporating the advertising and marketing functions. Judith Shapiro that has earlier been talked to by Lewis during the earlier merging days has knowledge in business-to-business advertising together with company as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to take care of both marketing and advertising functions.

The advantage of this approach is that it will certainly integrate both features while reducing the need for employing an additional resource for marketing. Lewis would be heading the marketing division as well as in any case her substitute would be needed for the existing function that she is executing. The drawback of this choice is that outside hiring might bring about bitterness from internal workers who might be looking at the setting of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and also Production: Given the competitive pressures and high quality work called for from the marketing firm, it is suggested that Lewis ought to enable the production unit to be a separate feature from the advertising device. Because most advertising firms had these 2 features as different units, it makes even more feeling to adhere to the standard.

Combination of Marketing with Workflows: Given that Lewis is already dealing with the marketing as well as procedures divisions all at once; it makes good sense to incorporate the two functions since she has actually been successfully looking after both ends. The fact that the two departments currently have major distinctions over allotment of sources suggests that this assimilation may be able to produce consistency particularly as Lewis would be heading both ends.However there are numerous negative aspects of this relocation especially as it would certainly place way too much problem over Lewis's shoulders. The fact that Lewis has to adapt her monitoring design for the advertising division recommends that these two divisions would certainly be culturally diverse. Lewis might not be able to use one type of management design to both departments which might result in inefficiency in either one of the 2 functions.

Recommendation.



An analysis of the three alternatives shows that integration of advertising and marketing as well as operations would certainly not be a practical move due to the vast distinctions in between the two departments in spite of the fact that currently Lewis is dealing with both. While splitting up of the manufacturing function might have been a beneficial action for the advertising division, the truth that it would imply positioning a 3rd feature under Lewis's wing indicates this should be stayed clear of.

Action Strategy.
Recommendation
Lewis will certainly take control of the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Production function will stay component of advertising and marketing under advertising and marketing function.

Lewis will separate herself from operations.

An autonomous management style with staff member empowerment will be utilized in advertising and marketing department.

Open up door policy and emphasis on cross department communication will be targeted at eliminating discord.

Backup strategy.

If the assimilation does not exercise as intended, a backup plan would certainly adhere to which would certainly separate the manufacturing function from the marketing function to reduce the load on the SVP of advertising and marketing. 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 most definitely be separated by placing it under an SVP production.