Micrus Activity Based Management For Business Turnaround Case Study Solution


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Micrus Activity Based Management For Business Turnaround Case Study Analysis

Background and Facts

Micrus Activity Based Management For Business Turnaround a workplace materials seller for little and also average sized companies has actually just recently been associated with preparing for a merger with its competitor Residence Deport, which has influenced performance levels in departmentswith the senior supervisor associated with lawful complications put forth by the federal Profession Compensation. With the Advertising and marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the near future. With obstacles in the form of a possible cultural change and reduced staff member spirits, the company requires a complete reengineering effort at the advertising and marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The possible social modification at the advertising division of Micrus Activity Based Management For Business Turnaround is enhancing uncertainty in the workplace leading to numerous challenges for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting calculated decisions considering that Stapes Inc. needed to abandon its strategies of merging with Office Deport after the Federal Profession Commission's intervention while doing so. Provided the reality that the shop has an international existence with branches in UK, USA, Canada and Germany, political consider each of these countries might be able to impact efficiency or strategic objectives. Federal Profession Compensation's antitrust suit versus the merger occupied important time of the organization's senior administration suggesting that 'political' factors can have serious implications for a global service.

Economic Factors: Economic factors such as the development of small companies in the international scenario recommend that Micrus Activity Based Management For Business Turnaround is growing in a setting where there is possible growth of businesses. In addition to this, truth that store consumers are primarily trying to find office products for office recommends that the market has a climbing pattern of business owners and home based businesses.

Social factors: Social trends in the economic climate show that customers are looking for benefit in addition to eye-catching rates. Market research demonstrates how the client for Micrus Activity Based Management For Business Turnaround does not have awareness regarding discovering solutions which can provide a combination of convenience and also inexpensive.

Technological factors: Technology plays an essential role in Micrus Activity Based Management For Business Turnaround's business strategy particularly as the organization is piloting Technology facilities which would certainly provide modern technology sales and support in the kind of memory upgrades, peripheral installations. (Recap of BUG in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Organizational Actions concerns can be seen in Micrus Activity Based Management For Business Turnaround's case as highlighted in this area.

Worries about cultural modification: There is uneasiness about a cultural modification that would certainly take place when Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with a lot of the team member currently revealing unhappiness over this possible action. This predicted change has actually produced anxiety in the workplace which has been coupled with the previous stress and anxiety of preparing the firm for a prospective merging with Home Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is lack of personnel that can match the demanding setting of a busy organization. Not only does this lead to difficulty in finding the right individuals, it puts anxiety on new hires as can not endure the speed and also stress that the organization anticipates them to birth.

Twin Reporting Lines: Newbies discover this business culture cumbersome as well as tough to handle specifically as populated line partnerships are meant to be weak in general and also objective setting and also efficiency evaluation is still done by the strong line supervisor. This indicates that beginners could shed clearness concerning their particular roles and objectives particularly as dotted line coverage does not maintain them in direct interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had actually been speculated that the last would take Krasnow's setting came as an impact to her morale. Lewis may have been capable as well as appropriate for the job however the fact that Kransnow's departure would make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Work Insecurity: Fear and insecurity can be recognized as two major worries that Lewis would certainly be handling specifically as the merger has now be cancelled and also two senior execs of the marketing division would certainly be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders who would not simply be in charge of brining concerning a cultural adjustment yet would also need to show herself in her new function.

Inappropriate Management Design of Leader: Lewis's administration style and also its conflict with the advertising division's duty can likewise be viewed as an OB difficulty specifically as she has been used to managing issues in the operations department where workers are shown to concentrate on procedures as well as obtain them right. The marketing division on the other hand can be seen as a group of individuals that are made use of to being supported by Krasnow who focused much more on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental arguments between three departments, marketing, merchandizing as well as procedures respectively over the allowance of the marketing mix can be determined as another OB issue. The advertising department does not share the very same vision as the other two divisions regarding the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and operations divisions do not concur over the advertising mix allocation amongst one another either.

Disintegration in Advertising And Marketing Department: Fragmentation between the marketing and advertising departments can be identified as another OB concern which might need more focus. The reality that the marketing and advertising areas in the marketing department are disconnected is avoiding both divisions from gaining from each various other's experience and also proficiency. Combination of advertising and marketing with merchandising and operations would certainly end up being more difficult if the advertising department itself is disintegrated which can be an additional prospective OB problem.

Micrus Activity Based Management For Business Turnaround Analysis

Numerous concepts have been made use of to explain the scenarios to get further clarity concerning the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers think that juniors are passive as well as careless, have little aspiration and also resist change. The hard variation of this concept highlighted threat, limited controls, hazards and penalties. Over time it creates low performance, subtle sabotage and also rivalry (Bargain, 2003). Although the scenario at Micrus Activity Based Management For Business Turnaround is not completely complying with Theory X, it can be seen that new hires are locating this setting instead difficult which might at some point result in a greater disposition of the administration in the direction of Theory X. As per McGregor's supported sight, which he called Concept Y, the essential job of the monitoring is to set up business conditions to make sure that individuals can achieve their own objectives best by routing their initiatives in the direction of organizational incentives. If individuals locate no fulfillment in their job, the administration would have little choice however to depend on theory X and exterior control (Bargain, 2003). Even while examining Lewis's administration design, concept X might have appropriated in the procedures department to some extent yet the Marketing division would certainly need reliance on Theory Y in order to get the creativity and creativity from the teams.

Tuckman's Team effort Theory: Regarding Lewis's worry concerning bringing harmony between the marketing and advertising division is concerned, this would originally result in clash as talked about by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, throughout the first stage of group development, individuals may not bond, as they are busy discovering their location in the team. By integrating the marketing and advertising division's work, there may coincide first detach which might bring about the second phase of 'storming' where the groups challenge one another. It is only throughout the 3rd phase or 'norming' when they would certainly come together to share concepts before the group can bring about synergy in the 4th phase 'performing'.

Bridges' Transition Model: According To William Bridge's concept (appendix 4), people are quite unpleasant with modification, which is apparent by the circumstance at Micrus Activity Based Management For Business Turnaround The situation can be seen as a normal training course of life if is studied according to Bridge's concept where he describes that people go through 3 phases of transition when they experience adjustment. 'Ending, shedding and Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people are presented with change, they enter stage one and so there may be emotions like unhappiness, uncertainty, frustration, rage, worry, denial and also disorientation.The situation at the advertising and marketing department of Micrus Activity Based Management For Business Turnaround is comparable so Lewis can get comfortable with the idea that it is not amazing habits. In the 2nd stage, there may be a demand to bridge the space between the brand-new and old culture so Lewis might need to encounter this ordeal when Krasnow leaves. There may be reduced morale and low productivity at this stage which need to not be taken as an obstacle. It is throughout this phase that Lewis will need to offer guidance to the division to ensure that they can find an orientation. It can be seen just how Krasnow has already made this shift much easier by making Lewis obtain associated with the division a year before his real departure. According to Bridges' Design, stage three will produce openness to discovering, High energy as well as commitment as individuals will accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has discusses the relevance of 'protection requires as being a lower degree requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel secure and out of danger' is at the second level of needs. Prior to an employee can be made to establish psychologically, he needs to have his 'Physiological 'and also 'Safety and security' requires satisfied.

SWOT Analysis for Micrus Activity Based Management For Business Turnaround Case Study

Implication of Analysis.

The OB analysis has actually looked at numerous concepts to understand how to handle the present situation at hand. The adhering to three choices have actually been proposed to help Lewis deal with the organizational obstacles in the advertising and marketing division. Each of these options has been proposed for easing the transition needed to bring the advertising and marketing department in accordance with the demands of the marketplace as well as for making the social adjustment that would comply with as soon as the present leader leaves.

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

Evaluation of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merging days has competence in business-to-business marketing along with company as well as retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to manage both marketing and advertising and marketing features.

The advantage of this approach is that it will integrate both features while reducing the need for hiring an additional resource for advertising and marketing. Lewis would be heading the advertising department and also in any kind of case her substitute would be needed for the current duty that she is performing. The drawback of this choice is that external hiring might bring about resentment from internal personnel who may be considering the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting as well as Production: Given the competitive stress as well as high quality work needed from the advertising and marketing agency, it is recommended that Lewis needs to allow the production system to be a separate function from the marketing device. Since a lot of advertising agencies had these 2 features as separate systems, it makes even more feeling to follow the standard.

Integration of Advertising with Procedures: Considering that Lewis is already dealing with the marketing as well as procedures departments simultaneously; it makes sense to incorporate both features since she has actually been successfully taking care of both ends. The truth that the two divisions currently have major differences over allotment of resources recommends that this combination may be able to bring about consistency particularly as Lewis would certainly be heading both ends.However there are numerous downsides of this action particularly as it would place way too much concern over Lewis's shoulders. The truth that Lewis has to adapt her administration design for the marketing division suggests that these two departments would certainly be culturally diverse. Lewis might not be able to use one type of management style to both divisions which might result in inefficiency in either one of the 2 features.


An examination of the 3 options suggests that assimilation of advertising and also procedures would not be a practical step as a result of the large differences in between both divisions despite the fact that currently Lewis is handling both. While splitting up of the manufacturing function might have been a positive relocation for the advertising and marketing division, the reality that it would mean placing a third function under Lewis's wing implies this ought to be stayed clear of. The combination of the advertising and marketing division is the most effective choice in terms of obtaining the optimal arise from the department. An activity plan for this alternative is discussed below.

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

Marketing and advertising functions would be merged.

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

Production function will certainly continue to be component of advertising under marketing function.

Lewis will certainly divide herself from procedures.

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

Open up door plan and also focus on cross department interaction will be focused on getting rid of dissonance.

Contingency plan.

If the integration does not work out as intended, a backup plan would adhere to which would certainly divide the production function from the marketing feature to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising department without an SVP. Because case the production feature will absolutely be divided by positioning it under an SVP production.