Manufacturers Hanover Corp Customer Profitability Report Case Study Solution


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Manufacturers Hanover Corp Customer Profitability Report Case Study Analysis

Background and Facts

Manufacturers Hanover Corp Customer Profitability Report an office materials retailer for little and medium sized companies has actually just recently been involved in planning for a merging with its rival Residence Deport, which has actually affected efficiency levels in departmentswith the elderly supervisor associated with lawful complications put forth by the government Profession Payment. With the Advertising Head advancing the news of his departure from the business in one year, Jeannie Lewis, the present head of operations has been asked to take the duty in the future. With challenges in the type of a possible cultural change and also low employee spirits, the organization requires a complete reengineering effort at the advertising and marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The potential social change at the marketing department of Manufacturers Hanover Corp Customer Profitability Report is enhancing unpredictability in the workplace leading to various challenges for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting tactical choices given that Stapes Inc. needed to desert its strategies of combining with Office Deport after the Federal Profession Commission's intervention while doing so. Offered the truth that the store has an international presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations might be able to impact performance or tactical objectives. Federal Trade Compensation's antitrust match against the merger occupied important time of the company's senior administration recommending that 'political' factors can have major ramifications for a worldwide company.

Economic Factors: Financial factors such as the introduction of small companies in the global scenario suggest that Manufacturers Hanover Corp Customer Profitability Report is growing in an environment where there is potential growth of businesses. Along with this, reality that shop customers are primarily searching for workplace materials for office suggests that the marketplace has an increasing trend of entrepreneurs as well as online companies.

Social factors: Social patterns in the economic climate show that customers are searching for ease in addition to eye-catching costs. Market research shows how the consumer for Manufacturers Hanover Corp Customer Profitability Report does not have recognition regarding finding services which can provide a combination of comfort and low costs.

Technological factors: Innovation plays an important duty in Manufacturers Hanover Corp Customer Profitability Report's service method specifically as the organization is piloting Innovation facilities which would certainly use innovation sales and support in the kind of memory upgrades, outer setups. (Recap of INSECT in appendix 2).

OB Issues and Symptoms.

Several underlying Business Behavior problems can be seen in Manufacturers Hanover Corp Customer Profitability Report's case as highlighted in this section.

Uneasiness about social adjustment: There is worry concerning a social adjustment that would certainly occur when Todd Krasnow leaves from his position as the Exec Vice President of Advertising with the majority of the staff members currently showing unhappiness over this prospective relocation. This expected change has created anxiety in the work environment which has actually been coupled with the previous stress of preparing the firm for a prospective merging with Residence Deport.
Pest Analysis
Difficult Work Setting for Newcomers: There is lack of employees that can match the stressful atmosphere of a busy organization. Not just does this cause trouble in finding the right people, it places anxiety on brand-new hires as can not hold up against the speed and also pressure that the company expects them to bear.

Double Reporting Lines: Newcomers find this organizational culture troublesome as well as challenging to manage specifically as populated line relationships are suggested to be weaker as a whole and also unbiased setup and performance analysis is still done by the solid line manager. This implies that novices could lose clarity concerning their particular duties and also purposes especially as populated line coverage does not maintain them in direct communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles although it had been hypothesized that the latter would take Krasnow's position came as a blow to her morale. Lewis might have been qualified and also ideal for the job yet the fact that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Task Insecurity: Worry and instability can be identified as two significant concerns that Lewis would be handling especially as the merger has actually now be terminated and two senior executives of the advertising department would certainly be leaving. The whole obligation of the department would certainly be dropping on Lewis's shoulders who would certainly not simply supervise of brining concerning a cultural adjustment yet would certainly likewise need to confirm herself in her new duty.

Inappropriate Management Style of Leader: Lewis's monitoring style and also its conflict with the advertising department's role can also be seen as an OB difficulty especially as she has actually been utilized to taking care of concerns in the operations department where personnel are educated to concentrate on procedures as well as get them right. The marketing division on the other hand can be seen as a group of people who are utilized to being supported by Krasnow that concentrated extra on result than procedures.

Interdepartmental Disputes: Interdepartmental disputes in between 3 divisions, advertising, merchandizing as well as operations specifically over the allotment of the advertising mix can be recognized as another OB concern. The advertising department does not share the exact same vision as the various other 2 divisions concerning the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and operations divisions do not agree over the advertising mix appropriation among one another either.

Disintegration in Advertising Department: Fragmentation between the advertising and marketing divisions can be recognized as one more OB problem which might require further interest. The reality that the marketing and advertising sections in the advertising and marketing division are disconnected is stopping both departments from gaining from each various other's experience as well as experience. Assimilation of advertising and marketing with merchandising and operations would become more difficult if the advertising and marketing division itself is broken down which can be another potential OB problem.

Manufacturers Hanover Corp Customer Profitability Report Analysis

Various theories have been used to explain the conditions to get more quality regarding the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers think that juniors are easy and also careless, have little aspiration as well as withstand modification. The difficult version of this theory highlighted browbeating, limited controls, dangers and penalties. Gradually it produces low performance, subtle sabotage and competition (Bargain, 2003). Although the circumstance at Manufacturers Hanover Corp Customer Profitability Report is not totally following Concept X, it can be seen that new hires are finding this atmosphere instead difficult which might eventually bring about a higher disposition of the management in the direction of Theory X. As per McGregor's supported sight, which he called Concept Y, the essential task of the monitoring is to prepare business conditions to make sure that people can accomplish their own objectives best by routing their initiatives in the direction of organizational rewards. If individuals discover no contentment in their job, the administration would certainly have little choice yet to depend on concept X as well as external control (Deal, 2003). Even while evaluating Lewis's administration style, theory X might have appropriated in the procedures division somewhat but the Marketing division would certainly call for dependence on Concept Y so as to get the imagination and also originality from the groups.

Tuckman's Synergy Concept: As far as Lewis's issue about bringing harmony between the advertising and advertising and marketing division is worried, this would at first lead to conflict as gone over by Bruce Tuckman in his 'Synergy Theory'. By combining the advertising and advertising and marketing division's job, there may be the same initial disconnect which can lead to the second phase of 'storming' where the groups test one an additional.

When individuals are provided with adjustment, they go into stage one and so there may be feelings like unhappiness, unpredictability, stress, temper, worry, rejection as well as disorientation.The circumstance at the advertising and marketing division of Manufacturers Hanover Corp Customer Profitability Report is similar so Lewis can obtain comfy with the concept that it is not remarkable habits. It is throughout this stage that Lewis will certainly have to provide guidance to the department so that they can locate a feeling of direction. It can be seen how Krasnow has actually currently made this transition easier by making Lewis get involved in the department a year prior to his real departure.
Vrio Analysis
Maslow's Demand pecking order: The OB problem pertaining to instability at the workplace has been activated firstly by the adjustment in administration as well as second of all by the truth that the merger will no more be launched. Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has discusses the significance of 'protection requires as being a reduced degree demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel protected as well as out of danger' goes to the second level of demands. Before a staff member can be made to develop emotionally, he needs to have his 'Physiological 'and also 'Safety' needs satisfied. This indicates that unless the workers are made to feel protected concerning their current employment status in Manufacturers Hanover Corp Customer Profitability Report they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Manufacturers Hanover Corp Customer Profitability Report Case Study

Effects of Analysis.

The OB analysis has actually checked out different concepts to recognize just how to manage the existing circumstance at hand. The complying with 3 choices have actually been recommended to help Lewis take care of the business difficulties in the advertising department. Each of these alternatives has been recommended for relieving the change needed to bring the marketing division in accordance with the demands of the market and for making the cultural change that would certainly adhere to when the present leader leaves.

Integration of marketing and advertising functions. Separating Adverting and Manufacturing functions. Integration of Advertising And Marketing with Operations.

Analysis of Alternatives.

Integration of Marketing & Marketing Functions: The in-house marketing agency of Manufacturers Hanover Corp Customer Profitability Report is already strength for the company in regards to conserving up on expenses connected to advertising and marketing and also promo. Given that no brand-new recruitment has actually been done after Bridget Cole's separation with the reporting line being directly appointed to Krasnow for the advertising function, this is a beneficial opportunity for incorporating the advertising and marketing functions. Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merging days has competence in business-to-business marketing along with agency and also retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both advertising and marketing functions.

The benefit of this approach is that it will certainly incorporate the two functions while decreasing the requirement for employing an extra resource for advertising. Along with this, Lewis would certainly be heading the advertising department and also regardless her substitute would certainly be needed for the existing function that she is performing. The drawback of this choice is that exterior hiring might cause bitterness from internal personnel who might be considering the setting of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and also Production: Given the affordable stress and high top quality work needed from the marketing firm, it is advised that Lewis should enable the production unit to be a separate feature from the advertising and marketing unit. Considering that many advertising agencies had these two features as different units, it makes even more sense to comply with the standard.

Assimilation of Advertising with Procedures: Considering that Lewis is currently caring for the advertising and procedures departments simultaneously; it makes good sense to incorporate the two functions considering that she has actually been efficiently dealing with both ends. The fact that the two divisions currently have significant distinctions over allowance of resources suggests that this assimilation may have the ability to produce harmony specifically as Lewis would be heading both ends.However there are different drawbacks of this action specifically as it would place way too much burden over Lewis's shoulders. The truth that Lewis needs to adjust her management style for the advertising and marketing division suggests that these 2 departments would certainly be culturally diverse. Lewis might not be able to use one type of leadership design to both departments which might result in ineffectiveness in either one of the two functions.


An evaluation of the three options suggests that combination of advertising and marketing as well as procedures would not be a practical step due to the substantial distinctions between the two departments despite the fact that presently Lewis is dealing with both. While separation of the manufacturing function may have been a positive step for the advertising and marketing department, the fact that it would certainly imply positioning a third function under Lewis's wing means this ought to be stayed clear of.

Action Plan.
Lewis will certainly take over the role of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

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

Manufacturing function will remain part of advertising and marketing under advertising and marketing function.

Lewis will certainly divide herself from procedures.

A democratic leadership style with staff member empowerment will be utilized in advertising and marketing division.

Open up door policy as well as emphasis on cross departmental communication will be targeted at getting rid of disharmony.

Backup strategy.

If the assimilation does not exercise as intended, a backup plan would comply with which would separate the production feature from the advertising and marketing feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the advertising and marketing division without an SVP. In that case the manufacturing feature will definitely be divided by putting it under an SVP production.