Medtronic Inc Case Study Analysis


Home >> Harvard >> Medtronic Inc >>

Medtronic Inc Case Study Help

Background and Facts

Medtronic Inc a workplace products retailer for tiny and also average sized services has actually lately been involved in planning for a merger with its rival Home Deport, which has affected efficiency levels in departmentswith the elderly supervisor associated with lawful problems presented by the government Profession Commission. With the Advertising Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the current head of procedures has been asked to take the duty in the future. With obstacles in the kind of a possible cultural adjustment and also reduced staff member morale, the organization needs a complete reengineering effort at the marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The possible social adjustment at the advertising department of Medtronic Inc is raising uncertainty in the workplace leading to different difficulties for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing tactical decisions since Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Profession Commission's intervention in the process. Given the fact that the shop has a global presence with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries might have the ability to influence performance or critical goals. Federal Profession Commission's antitrust match against the merging occupied beneficial time of the organization's senior monitoring suggesting that 'political' factors can have serious implications for an international organisation.

Economic Factors: Economic factors such as the introduction of small businesses in the international situation recommend that Medtronic Inc is growing in an atmosphere where there is possible development of organisations. Fact that store consumers are primarily looking for office materials for home offices suggests that the market has a rising trend of entrepreneurs and also house based companies.

Social factors: Social patterns in the economy show that customers are searching for ease along with attractive prices. Marketing research shows how the customer for Medtronic Inc does not have recognition regarding locating options which can offer a mix of benefit and affordable.

Technical factors: Innovation plays a crucial function in Medtronic Inc's service strategy specifically as the company is piloting Technology facilities which would use innovation sales as well as assistance in the kind of memory upgrades, outer installations. (Recap of INSECT in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Organizational Habits issues can be seen in Medtronic Inc's case as highlighted in this area.

Concerns regarding cultural adjustment: There is apprehension concerning a cultural change that would occur as soon as Todd Krasnow leaves from his placement as the Executive Vice President of Advertising with a lot of the staff members currently revealing unhappiness over this prospective move. This anticipated modification has actually created anxiety in the work environment which has actually been coupled with the previous anxiety of preparing the firm for a possible merging with Residence Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is scarcity of personnel that can match the difficult environment of a busy organization. Not only does this lead to difficulty in locating the best individuals, it puts stress and anxiety on new hires as can not endure the pace as well as pressure that the company expects them to birth.

Twin Reporting Lines: Beginners discover this organizational culture troublesome as well as difficult to deal with particularly as populated line partnerships are suggested to be weaker in general as well as objective setting and also efficiency evaluation is still done by the strong line supervisor. This indicates that novices could lose clearness concerning their corresponding functions and objectives specifically as dotted line reporting does not maintain them in direct communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had been speculated that the last would take Krasnow's position came as a blow to her morale. Lewis may have been capable as well as appropriate for the job yet the truth that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from services.

Worry & Job Instability: Worry as well as instability can be determined as 2 significant worries that Lewis would be taking care of particularly as the merger has actually currently be cancelled as well as two senior executives of the marketing department would be leaving. The whole responsibility of the department would certainly be falling on Lewis's shoulders that would certainly not simply be in charge of brining about a social adjustment yet would also need to prove herself in her new function.

Inappropriate Monitoring Style of Leader: Lewis's administration style as well as its incompatibility with the advertising division's duty can additionally be viewed as an OB obstacle particularly as she has actually been used to handling issues in the operations department where employees are instructed to concentrate on procedures and obtain them right. The marketing department on the other hand can be seen as a team of individuals that are used to being supported by Krasnow that concentrated extra on output than procedures.

Interdepartmental Differences: Interdepartmental disagreements between three divisions, marketing, merchandizing as well as operations respectively over the appropriation of the advertising mix can be recognized as an additional OB problem. Although the advertising and marketing division does not share the exact same vision as the various other 2 departments pertaining to the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and also operations divisions do not concur over the marketing mix appropriation among each other either.

Disintegration in Advertising Department: Disintegration between the advertising and marketing departments can be identified as another OB issue which could need additional interest. The truth that the marketing and advertising areas in the advertising and marketing division are disconnected is avoiding both departments from obtaining from each other's experience and also know-how. Integration of advertising and marketing with merchandising and procedures would come to be more difficult if the advertising department itself is degenerated which can be another prospective OB problem.

Medtronic Inc Analysis

Numerous theories have actually been used to discuss the circumstances to obtain additional quality concerning the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers think that subordinates are passive as well as careless, have little ambition as well as stand up to adjustment. The difficult variation of this concept highlighted threat, tight controls, dangers as well as penalties. In time it creates low productivity, refined sabotage as well as competition (Deal, 2003). Although the circumstance at Medtronic Inc is not entirely complying with Theory X, it can be seen that brand-new hires are discovering this setting rather stressful which may at some point lead to a greater inclination of the administration in the direction of Concept X. According to McGregor's advocated view, which he called Concept Y, the necessary task of the management is to set up business conditions to make sure that individuals can accomplish their very own objectives best by directing their initiatives in the direction of business benefits. If individuals discover no satisfaction in their work, the management would certainly have little option but to depend on concept X and exterior control (Offer, 2003). Even while analyzing Lewis's administration style, theory X may have appropriated in the procedures department to some extent but the Marketing division would certainly call for reliance on Concept Y to get the creative thinking and also creativity from the teams.

Tuckman's Teamwork Concept: As far as Lewis's concern about bringing consistency in between the advertising and marketing and advertising and marketing division is concerned, this would initially lead to conflict as talked about by Bruce Tuckman in his 'Team effort Theory'. By integrating the advertising as well as advertising and marketing division's work, there might be the exact same initial separate which can lead to the 2nd phase of 'storming' where the teams test one another.

When people are presented with adjustment, they enter stage one and also so there might be emotions like despair, uncertainty, stress, rage, anxiety, rejection as well as disorientation.The circumstance at the advertising division of Medtronic Inc is comparable so Lewis can get comfy with the suggestion that it is not phenomenal actions. It is throughout this phase that Lewis will certainly have to offer support to the department so that they can discover a sense of direction. It can be seen exactly how Krasnow has actually already made this shift much easier by making Lewis get included in the division a year before his real separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has goes over the value of 'protection requires as being a reduced level requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel safe and secure and also out of danger' is at the second level of requirements. Before a worker can be made to develop emotionally, he needs to have his 'Physiological 'and also 'Security' requires satisfied.

SWOT Analysis for Medtronic Inc Case Study

Effects of Analysis.

The OB analysis has checked out different theories to understand exactly how to handle the current situation handy. The following 3 options have been proposed to aid Lewis handle the business difficulties in the marketing division. Each of these alternatives has actually been proposed for reducing the transition needed to bring the advertising department in accordance with the requirements of the market and also for making the cultural modification that would follow when the existing leader leaves.

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

Examination of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merging days has proficiency in business-to-business marketing along with company and also retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing functions.

The advantage of this strategy is that it will incorporate both features while reducing the demand for hiring an added source for advertising and marketing. Along with this, Lewis would certainly be heading the advertising and marketing division and also in any case her replacement would certainly be needed for the existing role that she is doing. The disadvantage of this alternative is that exterior hiring might cause resentment from interior personnel that may be looking at the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Manufacturing: Offered the affordable pressures and high top quality work needed from the advertising and marketing agency, it is recommended that Lewis needs to permit the production system to be a different feature from the advertising device. Given that most advertising and marketing companies had these two features as separate devices, it makes more sense to adhere to the norm.

Assimilation of Marketing with Procedures: Because Lewis is currently taking treatment of the advertising and marketing and also procedures departments all at once; it makes feeling to incorporate the 2 functions considering that she has been efficiently taking care of both ends. The fact that Lewis has to adjust her management style for the marketing department suggests that these two departments would certainly be culturally varied.


An analysis of the three choices indicates that integration of marketing and also operations would certainly not be a possible step due to the substantial distinctions between the two divisions in spite of the reality that currently Lewis is managing both. While separation of the production feature may have been a desirable step for the advertising department, the truth that it would certainly mean putting a 3rd feature under Lewis's wing implies this need to be avoided.

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

Marketing and advertising functions would be combined.

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

Production feature will certainly remain component of advertising under advertising function.

Lewis will certainly divide herself from operations.

An autonomous management style with employee empowerment will certainly be used in marketing department.

Open up door policy as well as focus on cross department interaction will be focused on removing dissonance.

Contingency strategy.

If the integration does not exercise as intended, a backup plan would certainly adhere to which would certainly divide the production feature from the advertising function to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising division without an SVP. Because case the production feature will certainly be separated by positioning it under an SVP manufacturing.