Ken Traub At American Bank Note Holographics Case Study Analysis


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Ken Traub At American Bank Note Holographics Case Study Analysis

Background and Facts

Ken Traub At American Bank Note Holographics a workplace materials seller for little and also moderate sized organisations has actually recently been involved in planning for a merging with its competitor Home Deport, which has actually influenced performance degrees in departmentswith the senior supervisor involved in legal issues presented by the federal Trade Compensation. With the Marketing Head advancing the news of his separation from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the duty in the near future. With obstacles in the kind of a prospective cultural change and reduced employee spirits, the company requires a complete reengineering effort at the advertising and marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the advertising and marketing division of Ken Traub At American Bank Note Holographics is increasing unpredictability in the workplace resulting in various obstacles for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing strategic decisions given that Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Trade Commission's treatment at the same time. Given the truth that the shop has an international visibility with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations may be able to affect efficiency or calculated objectives. Federal Trade Payment's antitrust fit versus the merging took up important time of the organization's senior monitoring recommending that 'political' factors can have serious effects for a worldwide company.

Economic Factors: Financial factors such as the emergence of local business in the global scenario recommend that Ken Traub At American Bank Note Holographics is prospering in an atmosphere where there is prospective growth of companies. Fact that store customers are primarily looking for office materials for residence offices suggests that the market has a rising trend of entrepreneurs as well as residence based companies.

Social factors: Social trends in the economy show that clients are trying to find benefit as well as appealing prices. Market research shows how the customer for Ken Traub At American Bank Note Holographics does not have awareness about locating services which can supply a mix of comfort as well as inexpensive.

Technical factors: Innovation plays a crucial function in Ken Traub At American Bank Note Holographics's company approach particularly as the organization is piloting Modern technology centers which would provide technology sales as well as support in the form of memory upgrades, outer setups. (Recap of BUG in appendix 2).

OB Issues and Manifestations.

Numerous underlying Business Actions concerns can be seen in Ken Traub At American Bank Note Holographics's case as highlighted in this area.

Concerns regarding social adjustment: There is concern concerning a cultural adjustment that would occur when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with most of the employee already showing unhappiness over this possible move. This predicted adjustment has actually developed stress in the office which has been combined with the past tension of preparing the firm for a potential merger with House Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is shortage of workers that can match the difficult environment of a busy organization. Not just does this cause problem in finding the appropriate individuals, it places stress on new hires as can not hold up against the rate as well as pressure that the company anticipates them to birth.

Double Coverage Lines: Newcomers locate this organizational culture difficult and also tough to handle especially as populated line connections are meant to be weaker as a whole and also unbiased setting as well as performance assessment is still done by the solid line supervisor. This indicates that novices could shed quality concerning their respective roles and also purposes especially as populated line coverage does not keep them in direct interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles although it had actually been hypothesized that the last would take Krasnow's setting came as a strike to her spirits. Lewis may have been capable and suitable for the job but the truth that Kransnow's departure would make Coles a direct report to Lewis may have been the factor for Coles' resignation from services.

Anxiety & Task Instability: Worry as well as instability can be identified as 2 major concerns that Lewis would certainly be taking care of especially as the merger has now be terminated and two senior execs of the marketing division would be leaving. The whole responsibility of the division would certainly be falling on Lewis's shoulders who would certainly not simply be in charge of brining concerning a social change but would certainly likewise need to show herself in her brand-new function.

Incompatible Management Design of Leader: Lewis's monitoring style and also its incompatibility with the marketing division's role can additionally be seen as an OB challenge especially as she has actually been made use of to handling problems in the operations division where workers are educated to concentrate on processes and also obtain them right. The marketing division on the other hand can be seen as a group of people who are made use of to being supported by Krasnow that concentrated more on outcome than procedures.

Interdepartmental Disputes: Interdepartmental disputes between three divisions, marketing, merchandizing and operations respectively over the appropriation of the advertising and marketing mix can be identified as an additional OB concern. Although the advertising and marketing division does not share the very same vision as the various other 2 departments pertaining to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and also procedures divisions do not concur over the marketing mix allocation amongst each other either.

Fragmentation in Advertising Division: Fragmentation in between the advertising and marketing departments can be determined as an additional OB issue which can need additional interest. The fact that the marketing and advertising sections in the advertising and marketing department are detached is preventing both departments from obtaining from each other's experience as well as proficiency. Combination of advertising and marketing with retailing and operations would come to be more difficult if the marketing department itself is disintegrated which can be an additional possible OB issue.

Ken Traub At American Bank Note Holographics Analysis

Various concepts have actually been utilized to explain the circumstances to get more quality about the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors think that subordinates are easy and careless, have little passion and also withstand modification. The situation at Ken Traub At American Bank Note Holographics is not entirely adhering to Theory X, it can be seen that new hires are locating this atmosphere rather stressful which might eventually lead to a higher inclination of the monitoring towards Theory X. Even while examining Lewis's management design, theory X may have been ideal in the procedures department to some extent however the Marketing division would call for dependence on Concept Y in order to obtain the imagination as well as originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's problem about bringing harmony between the advertising and marketing division is concerned, this would initially bring about clash as discussed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, during the initial stage of group development, individuals might not bond, as they are hectic discovering their area in the group. By combining the advertising and marketing department's work, there might coincide initial separate which can result in the second stage of 'storming' where the groups challenge one another. Nonetheless, it is just during the third phase or 'norming' when they would collaborate to share concepts prior to the group can cause harmony in the 4th stage 'carrying out'.

Bridges' Change Model: Based On William Bridge's concept (appendix 4), people are fairly awkward with change, which is apparent by the circumstance at Ken Traub At American Bank Note Holographics The scenario can be viewed as a typical course of life if is studied based on Bridge's theory where he describes that people undergo three phases of transition when they experience adjustment. 'End, shedding as well as Letting go', The Neutral Area and also 'The New Starting' (Bridges, 2004). When people exist with modification, they go into phase one and so there might be emotions like sadness, unpredictability, irritation, rage, worry, rejection and disorientation.The scenario at the advertising division of Ken Traub At American Bank Note Holographics is similar so Lewis can obtain comfy with the idea that it is not extraordinary behavior. In the second phase, there might be a need to bridge the space between the brand-new and old culture so Lewis might need to encounter this challenge as soon as Krasnow leaves. There might be low morale and also reduced productivity at this stage which ought to not be taken as a problem. It is during this stage that Lewis will certainly have to offer guidance to the division to make sure that they can locate an orientation. It can be seen just how Krasnow has actually already made this shift less complicated by making Lewis get associated with the department a year before his actual separation. Based on Bridges' Version, phase 3 will bring about openness to discovering, High energy as well as dedication as individuals will certainly accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has discusses the significance of 'safety and security requires as being a lower degree need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel safe and secure and out of danger' is at the second level of needs. Before a staff member can be made to establish emotionally, he requires to have his 'Physiological 'as well as 'Security' requires satisfied.

SWOT Analysis for Ken Traub At American Bank Note Holographics Case Study

Effects of Analysis.

The OB analysis has checked out various concepts to comprehend how to handle the existing circumstance handy. The following 3 alternatives have been suggested to aid Lewis take care of the business obstacles in the advertising division. Each of these alternatives has actually been suggested for easing the shift required to bring the marketing department in line with the needs of the market and also for making the cultural change that would follow as soon as the current leader leaves.

Integration of advertising and marketing features. Dividing Adverting and Manufacturing features. Assimilation of Advertising with Operations.

Analysis of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merger days has knowledge in business-to-business advertising and marketing along with firm as well as retail advertising experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to deal with both advertising and marketing and marketing features.

The benefit of this method is that it will certainly incorporate the two features while minimizing the demand for employing an added source for advertising and marketing. In addition to this, Lewis would certainly be heading the advertising and marketing department and in any case her replacement would certainly be required for the current function that she is performing. The drawback of this choice is that exterior hiring may bring about animosity from internal employees who might be looking at the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Manufacturing: Offered the competitive stress and high quality work required from the advertising agency, it is advised that Lewis needs to permit the manufacturing system to be a different feature from the advertising system. Since many ad agency had these 2 features as separate units, it makes even more feeling to adhere to the standard. Both functions may be able to focus on their core triggers extra successfully. However, the negative aspect of this strategy would certainly be that added prices would have to be borne for establishing different production functions. A production head might have to be employed which might raise expenses for the company.

Combination of Advertising And Marketing with Workflows: Given that Lewis is currently caring for the marketing and operations divisions concurrently; it makes sense to integrate both features considering that she has been efficiently dealing with both ends. The reality that both departments currently have significant differences over appropriation of resources suggests that this combination might be able to produce harmony especially as Lewis would be heading both ends.However there are numerous disadvantages of this action especially as it would place way too much worry over Lewis's shoulders. The truth that Lewis has to adapt her administration style for the marketing division recommends that these 2 divisions would certainly be culturally varied. In addition to this, Lewis might not have the ability to apply one sort of management style to both departments which might result in inefficiency in either one of the two functions.


An assessment of the 3 alternatives shows that assimilation of marketing and also procedures would not be a feasible action as a result of the vast differences in between the two divisions despite the fact that currently Lewis is dealing with both. While splitting up of the manufacturing function might have been a beneficial step for the advertising division, the truth that it would suggest placing a 3rd feature under Lewis's wing implies this should be stayed clear of too. The integration of the advertising and marketing division is the most effective alternative in regards to getting the optimum results from the department. An action plan for this alternative is gone over below.

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

Advertising and Marketing features would certainly be combined.

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

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

Lewis will certainly divide herself from operations.

A democratic management design with staff member empowerment will be utilized in advertising division.

Open up door policy and also focus on cross departmental communication will certainly be focused on getting rid of discord.

Contingency plan.

If the integration does not work out as planned, a backup plan would comply with which would certainly separate the production function from the advertising function to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising department without an SVP. Because case the manufacturing function will definitely be separated by positioning it under an SVP manufacturing.