Multifactor Models Case Study Solution


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Multifactor Models Case Study Analysis

Background and Facts

Multifactor Models an office supplies store for little and also medium sized services has actually recently been associated with planning for a merging with its rival Residence Deport, which has impacted efficiency levels in departmentswith the senior manager involved in legal problems presented by the federal Trade Payment. With the Advertising and marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the future. With obstacles in the kind of a prospective cultural adjustment and low employee spirits, the company is in need of a total reengineering initiative at the marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing division of Multifactor Models is boosting uncertainty in the working environment bring about various challenges for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing strategic choices given that Stapes Inc. had to abandon its plans of merging with Office Deport after the Federal Trade Commission's intervention at the same time. Offered the fact that the shop has a global existence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries may have the ability to influence efficiency or strategic objectives. Federal Trade Commission's antitrust suit versus the merger took up useful time of the company's elderly monitoring recommending that 'political' factors can have serious effects for an international organisation.

Economic Factors: Economic factors such as the development of small businesses in the international situation recommend that Multifactor Models is thriving in an atmosphere where there is prospective development of businesses. In addition to this, fact that shop customers are primarily searching for workplace materials for home offices suggests that the market has a climbing pattern of business owners and also home services.

Social factors: Social fads in the economic situation reveal that consumers are seeking convenience as well as attractive prices. Market research shows how the consumer for Multifactor Models lacks recognition concerning locating options which can offer a mix of comfort as well as affordable.

Technological factors: Modern technology plays an essential role in Multifactor Models's service strategy specifically as the organization is piloting Modern technology facilities which would supply innovation sales as well as assistance in the type of memory upgrades, outer setups. (Summary of INSECT in appendix 2).

OB Issues and also Manifestations.

Numerous underlying Organizational Behavior issues can be seen in Multifactor Models's case as highlighted in this area.

Uneasiness about social change: There is apprehension regarding a social change that would occur when Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with most of the employee already showing discontent over this potential move. This expected adjustment has actually created stress and anxiety in the office which has actually been coupled with the past tension of preparing the company for a potential merging with Home Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is scarcity of employees that can match the stressful atmosphere of a busy company. Not just does this lead to problem in finding the ideal people, it places tension on new hires as can not endure the pace as well as stress that the company expects them to birth.

Double Coverage Lines: Newcomers discover this organizational society difficult and also difficult to cope with specifically as populated line partnerships are meant to be weak as a whole and also objective setting as well as efficiency analysis is still done by the strong line supervisor. This indicates that beginners can shed quality concerning their particular roles and also goals specifically as dotted line coverage does not keep them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had been speculated that the latter would take Krasnow's placement came as an impact to her morale. Lewis may have been capable and proper for the job yet the reality that Kransnow's departure would make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Fear & Task Insecurity: Anxiety and insecurity can be determined as two major concerns that Lewis would certainly be managing particularly as the merging has now be cancelled and two elderly executives of the marketing department would certainly be leaving. The entire duty of the department would be dropping on Lewis's shoulders who would certainly not just supervise of brining regarding a social change yet would certainly also need to confirm herself in her new duty.

Incompatible Administration Style of Leader: Lewis's administration design and its incompatibility with the marketing department's function can additionally be seen as an OB challenge specifically as she has been used to dealing with concerns in the procedures department where personnel are shown to concentrate on procedures as well as get them right. The advertising department on the various other hand can be seen as a group of people who are used to being nurtured by Krasnow that concentrated more on outcome than processes.

Interdepartmental Arguments: Interdepartmental disagreements in between three departments, advertising, merchandizing and also operations specifically over the appropriation of the marketing mix can be recognized as one more OB problem. The advertising department does not share the same vision as the other two divisions relating to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and also operations departments do not concur over the advertising and marketing mix allowance among one an additional either.

Fragmentation in Marketing Department: Disintegration between the advertising and marketing departments can be determined as another OB concern which might need additional focus. The reality that the marketing and advertising sections in the advertising and marketing division are detached is avoiding both divisions from obtaining from each various other's experience as well as experience. Assimilation of advertising with merchandising as well as procedures would certainly become more difficult if the advertising and marketing division itself is broken down which can be one more possible OB worry.

Multifactor Models Analysis

Numerous theories have been utilized to describe the situations to obtain further quality concerning the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that subordinates are easy and careless, have little passion and also stand up to adjustment. The scenario at Multifactor Models is not entirely adhering to Theory X, it can be seen that brand-new hires are discovering this atmosphere rather stressful which may at some point lead to a greater disposition of the administration in the direction of Concept X. Also while analyzing Lewis's monitoring style, theory X may have been ideal in the operations department to some degree yet the Advertising department would require reliance on Concept Y in order to get the creative thinking and originality from the groups.

Tuckman's Teamwork Concept: As for Lewis's issue regarding bringing consistency in between the advertising and marketing department is worried, this would at first result in clash as gone over by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, during the initial phase of team advancement, individuals might not bond, as they are active finding their area in the team. By combining the marketing and advertising division's work, there might be the same initial separate which can result in the second phase of 'storming' where the teams challenge each other. Nevertheless, it is just throughout the 3rd stage or 'norming' when they would come together to share suggestions before the team can bring about synergy in the fourth phase 'executing'.

When individuals are presented with change, they go into stage one as well as so there may be emotions like unhappiness, uncertainty, aggravation, anger, fear, denial and disorientation.The scenario at the marketing department of Multifactor Models is similar so Lewis can get comfortable with the concept that it is not phenomenal behavior. It is throughout this phase that Lewis will have to provide assistance to the department so that they can find a feeling of direction. It can be seen how Krasnow has currently made this transition easier by making Lewis get involved in the division a year prior to his real separation.
Vrio Analysis
Maslow's Need pecking order: The OB concern related to instability at the workplace has been activated to start with by the adjustment in management and second of all by the reality that the merging will certainly no more be launched. Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has discusses the significance of 'security needs as being a reduced degree requirement of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to really feel protected and also unharmed' is at the second level of demands. Before a staff member can be made to create mentally, he needs to have his 'Physical 'as well as 'Safety and security' needs met. This suggests that unless the workers are made to feel protected regarding their current work status in Multifactor Models they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Multifactor Models Case Study

Ramification of Analysis.

The OB analysis has checked out different concepts to comprehend just how to manage the existing circumstance available. The following 3 alternatives have actually been suggested to assist Lewis manage the business challenges in the advertising division. Each of these options has actually been recommended for relieving the shift needed to bring the advertising and marketing department in line with the demands of the marketplace and also for making the social adjustment that would follow when the current leader leaves.

Integration of marketing and advertising features. Separating Adverting and Production features. Combination of Marketing with Workflow.

Evaluation of Alternatives.

Combination of Marketing & Marketing Functions: The in-house advertising and marketing agency of Multifactor Models is currently strength for the organization in terms of conserving up on overheads associated with advertising and marketing and promo. Since no new employment has been done after Bridget Cole's separation with the coverage line being directly assigned to Krasnow for the advertising and marketing feature, this is a desirable opportunity for incorporating the advertising and marketing features. Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merging days has expertise in business-to-business advertising in addition to company and also retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing features.

The benefit of this method is that it will certainly integrate the two features while minimizing the demand for employing an extra source for advertising. Lewis would certainly be heading the advertising and marketing division and also in any type of case her substitute would be required for the present function that she is executing. The disadvantage of this alternative is that outside hiring might cause animosity from internal workers who might be eying the setting of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and also Manufacturing: Given the affordable pressures and also top quality work called for from the advertising agency, it is advised that Lewis must enable the production unit to be a different feature from the advertising unit. Because a lot of advertising agencies had these two functions as separate units, it makes more feeling to adhere to the norm. In addition to this, both functions may have the ability to concentrate on their core triggers extra efficiently. The downside of this method would certainly be that additional prices would certainly have to be borne for setting up separate manufacturing features. Along with this, a manufacturing head may need to be employed which could raise expenses for the organization.

Combination of Marketing with Workflows: Considering that Lewis is already taking care of the marketing and also operations divisions at the same time; it makes feeling to incorporate the 2 features considering that she has been successfully taking treatment of both ends. The reality that Lewis has to adapt her management design for the advertising and marketing department suggests that these two departments would certainly be culturally diverse.


An analysis of the 3 alternatives shows that assimilation of marketing and procedures would not be a feasible relocation as a result of the vast differences in between both divisions although that currently Lewis is taking care of both. While separation of the manufacturing feature may have been a desirable relocation for the marketing division, the fact that it would certainly suggest positioning a 3rd feature under Lewis's wing suggests this should be avoided also. The assimilation of the advertising department is the most effective alternative in terms of obtaining the ideal arise from the division. An activity plan for this option is discussed below.

Activity Strategy.
Lewis will certainly take control of the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

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

Lewis will separate herself from operations.

A democratic management style with employee empowerment will certainly be used in advertising department.

Open up door policy and also focus on cross departmental communication will certainly be targeted at removing discord.

Backup plan.

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