Managing The Us Dollar In The 1980s Case Study Solution


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Managing The Us Dollar In The 1980s Case Study Analysis

Background and Facts

Managing The Us Dollar In The 1980s an office supplies retailer for tiny and also medium sized organisations has actually lately been involved in preparing for a merging with its rival Home Deport, which has influenced effectiveness degrees in departmentswith the senior manager associated with lawful complications put forth by the federal Profession Payment. With the Advertising and marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the near future. With obstacles in the type of a possible cultural change and reduced worker morale, the organization needs a complete reengineering effort at the marketing division.

Issue Statement
Porter's 5 Forces Analysis
The prospective cultural change at the marketing department of Managing The Us Dollar In The 1980s is boosting uncertainty in the workplace causing different challenges for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting strategic choices since Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Profession Payment's intervention while doing so. Offered the reality that the shop has an international existence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations may be able to impact performance or strategic goals. Federal Profession Commission's antitrust suit against the merger took up important time of the company's elderly monitoring suggesting that 'political' factors can have serious ramifications for an international company.

Economic Factors: Economic factors such as the appearance of local business in the global scenario recommend that Managing The Us Dollar In The 1980s is prospering in a setting where there is potential growth of companies. Fact that store clients are mainly looking for office supplies for house offices recommends that the market has an increasing pattern of entrepreneurs and home based organisations.

Social factors: Social fads in the economy reveal that customers are searching for convenience as well as eye-catching rates. Market research shows how the client for Managing The Us Dollar In The 1980s lacks recognition regarding locating options which can offer a combination of benefit and low costs.

Technical factors: Innovation plays a crucial role in Managing The Us Dollar In The 1980s's service method particularly as the company is piloting Innovation facilities which would provide modern technology sales as well as assistance in the form of memory upgrades, outer setups. (Summary of INSECT in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Business Actions concerns can be seen in Managing The Us Dollar In The 1980s's case as highlighted in this section.

Concerns regarding cultural adjustment: There is uneasiness concerning a social change that would happen as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising And Marketing with the majority of the employee already showing unhappiness over this potential step. This predicted adjustment has produced anxiety in the workplace which has actually been paired with the past stress and anxiety of preparing the firm for a prospective merging with Home Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is scarcity of employees that can match the demanding setting of a hectic organization. Not just does this result in difficulty in finding the right individuals, it places stress and anxiety on brand-new hires as can not withstand the speed as well as pressure that the company anticipates them to bear.

Double Coverage Lines: Newbies locate this business society cumbersome as well as hard to handle especially as populated line connections are meant to be weak generally as well as unbiased setting and performance assessment is still done by the strong line supervisor. This means that novices might lose clarity concerning their corresponding duties as well as objectives specifically as populated line coverage does not maintain them in direct interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles even though it had actually been speculated that the latter would take Krasnow's placement came as a blow to her morale. Lewis might have been qualified as well as proper for the job however the reality that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Task Instability: Fear and instability can be determined as two significant problems that Lewis would certainly be dealing with specifically as the merger has now be cancelled as well as 2 elderly execs of the advertising and marketing division would be leaving. The entire duty of the department would certainly be dropping on Lewis's shoulders who would certainly not just be in charge of brining regarding a social modification but would likewise have to show herself in her brand-new role.

Inappropriate Management Style of Leader: Lewis's monitoring style and also its conflict with the advertising department's function can additionally be viewed as an OB difficulty particularly as she has actually been utilized to dealing with issues in the procedures division where employees are taught to concentrate on procedures as well as get them right. The advertising department on the various other hand can be viewed as a group of individuals who are made use of to being supported by Krasnow who focused a lot more on outcome than procedures.

Interdepartmental Differences: Interdepartmental differences between three divisions, advertising and marketing, merchandizing and also operations specifically over the allowance of the advertising mix can be recognized as another OB worry. The marketing division does not share the very same vision as the various other 2 divisions regarding the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and procedures departments do not agree over the advertising mix allowance among one another either.

Disintegration in Advertising Department: Disintegration in between the marketing and advertising departments can be identified as another OB problem which might require further interest. The truth that the marketing and advertising sections in the marketing department are detached is stopping both divisions from obtaining from each various other's experience and also experience. Assimilation of advertising and marketing with retailing and also procedures would come to be harder if the marketing department itself is disintegrated which can be one more possible OB problem.

Managing The Us Dollar In The 1980s Analysis

Various concepts have been utilized to describe the circumstances to get further clearness concerning the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers believe that staffs are passive and careless, have little passion and resist change. The situation at Managing The Us Dollar In The 1980s is not totally adhering to Concept X, it can be seen that brand-new hires are finding this setting instead demanding which might eventually lead to a better disposition of the administration towards Concept X. Even while assessing Lewis's management style, theory X might have been appropriate in the operations division to some level yet the Marketing department would certainly require reliance on Concept Y in order to obtain the imagination and originality from the teams.

Tuckman's Synergy Concept: As far as Lewis's problem regarding bringing harmony between the advertising and marketing and also advertising and marketing division is concerned, this would at first lead to conflict as gone over by Bruce Tuckman in his 'Synergy Concept'. By incorporating the marketing as well as advertising department's work, there may be the same initial detach which might lead to the second phase of 'storming' where the groups test one an additional.

When people are provided with adjustment, they enter stage one as well as so there might be feelings like unhappiness, unpredictability, aggravation, rage, fear, denial and disorientation.The circumstance at the advertising department of Managing The Us Dollar In The 1980s is similar so Lewis can obtain comfy with the idea that it is not remarkable actions. It is throughout this phase that Lewis will have to provide support to the division so that they can locate a feeling of instructions. It can be seen exactly how Krasnow has actually currently made this transition simpler by making Lewis obtain included in the division a year before his real separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has talks about the value of 'safety and security requires as being a lower level requirement of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel safe and out of threat' is at the 2nd level of demands. Before a staff member can be made to develop emotionally, he requires to have his 'Physical 'as well as 'Security' needs met.

SWOT Analysis for Managing The Us Dollar In The 1980s Case Study

Ramification of Analysis.

The OB analysis has actually looked at numerous theories to recognize exactly how to handle the existing situation at hand. The adhering to three choices have been suggested to aid Lewis deal with the organizational challenges in the marketing division. Each of these options has been recommended for alleviating the change required to bring the advertising and marketing division in line with the demands of the marketplace and also for making the cultural adjustment that would certainly follow as soon as the existing leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting and Manufacturing features. Combination of Advertising And Marketing with Workflow.

Examination of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis during the earlier merger days has competence in business-to-business advertising along with firm as well as retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to manage both advertising and marketing as well as advertising functions.

The advantage of this technique is that it will integrate the two functions while reducing the demand for hiring an extra source for advertising and marketing. Lewis would be heading the marketing department and also in any case her substitute would certainly be required for the existing role that she is performing. The downside of this option is that exterior hiring might cause resentment from inner personnel that may be looking at the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Manufacturing: Given the competitive stress and also premium quality job needed from the advertising agency, it is advised that Lewis needs to enable the manufacturing device to be a separate function from the advertising unit. Considering that many advertising agencies had these two features as different systems, it makes more sense to follow the norm. Along with this, both features might have the ability to focus on their core triggers a lot more effectively. The downside of this method would certainly be that extra prices would have to be birthed for setting up different manufacturing functions. In addition to this, a production head might need to be worked with which could boost overheads for the company.

Assimilation of Advertising And Marketing with Operations: Considering that Lewis is currently dealing with the marketing as well as procedures divisions simultaneously; it makes good sense to incorporate the two functions because she has actually been successfully taking care of both ends. The truth that both departments currently have major differences over appropriation of resources recommends that this combination may be able to bring about consistency particularly as Lewis would be heading both ends.However there are various drawbacks of this action specifically as it would put too much problem over Lewis's shoulders. The fact that Lewis needs to adapt her administration design for the marketing department suggests that these two divisions would certainly be culturally varied. Lewis may not be able to apply one kind of management design to both divisions which could result in inadequacy in either one of the 2 functions.


An examination of the three alternatives shows that assimilation of marketing and procedures would not be a feasible action due to the vast distinctions between the 2 divisions despite the truth that currently Lewis is handling both. While separation of the production function may have been a positive move for the marketing department, the truth that it would certainly suggest placing a 3rd feature under Lewis's wing implies this ought to be stayed clear of.

Activity Plan.
Lewis will certainly take over the function of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Manufacturing feature will continue to be component of advertising under advertising and marketing function.

Lewis will divide herself from operations.

An autonomous leadership style with staff member empowerment will be used in marketing department.

Open door plan and also emphasis on cross department communication will be aimed at getting rid of disharmony.

Backup strategy.

If the integration does not work out as intended, a backup plan would comply with which would certainly separate the production feature from the marketing function to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising division without an SVP. In that case the production feature will certainly be divided by placing it under an SVP manufacturing.