Obamacare Case Study Solution


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Obamacare Case Study Solution

Background and Facts

Obamacare a workplace products retailer for little and also medium sized services has recently been involved in planning for a merging with its competitor House Deport, which has actually influenced efficiency levels in departmentswith the senior supervisor involved in lawful complications presented by the federal Profession Commission. With the Advertising and marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the duty in the future. With challenges in the form of a potential social modification and also reduced employee spirits, the organization wants a full reengineering effort at the marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the advertising and marketing department of Obamacare is raising uncertainty in the working environment causing numerous difficulties 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 significant duty in influencing calculated choices given that Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Trade Commission's intervention while doing so. Given the fact that the store has an international visibility with branches in UK, U.S.A., Canada and Germany, political consider each of these countries may have the ability to affect efficiency or critical goals. Federal Trade Commission's antitrust fit versus the merging took up useful time of the organization's elderly administration suggesting that 'political' factors can have severe effects for an international company.

Economic Factors: Financial factors such as the introduction of local business in the global situation recommend that Obamacare is growing in an atmosphere where there is potential growth of companies. Along with this, reality that shop customers are mainly trying to find workplace products for home offices recommends that the marketplace has an increasing trend of business owners as well as home based businesses.

Social factors: Social patterns in the economic climate reveal that customers are looking for convenience along with attractive costs. Marketing research shows how the consumer for Obamacare lacks understanding regarding finding solutions which can use a mix of benefit and inexpensive.

Technological factors: Modern technology plays an important function in Obamacare's organisation method particularly as the company is piloting Technology facilities which would certainly offer technology sales and support in the kind of memory upgrades, peripheral installations. (Recap of PEST in appendix 2).

OB Issues and also Effects.

Several underlying Business Habits concerns can be seen in Obamacare's case as highlighted in this area.

Apprehensions about cultural change: There is apprehension about a social modification that would take place as soon as Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with a lot of the employee currently revealing unhappiness over this potential action. This anticipated change has actually developed stress and anxiety in the work environment which has been paired with the previous stress and anxiety of preparing the company for a potential merger with Residence Deport.
Pest Analysis
Demanding Work Atmosphere for Newcomers: There is scarcity of workers that can match the stressful atmosphere of a fast-paced company. Not only does this cause problem in discovering the right individuals, it places anxiety on new hires as can not withstand the speed as well as stress that the organization expects them to birth.

Twin Reporting Lines: Newbies discover this organizational society troublesome and also challenging to handle especially as dotted line partnerships are implied to be weaker in general and unbiased setup and efficiency examination is still done by the strong line supervisor. This suggests that beginners can lose quality about their corresponding roles as well as purposes especially 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 actually been speculated that the last would take Krasnow's setting came as a blow to her morale. Lewis may have been capable and also ideal for the task however the fact that Kransnow's departure would make Coles a direct record to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Task Insecurity: Concern and insecurity can be determined as two significant problems that Lewis would be managing particularly as the merger has now be cancelled as well as two elderly executives of the marketing department would be leaving. The entire obligation of the department would be dropping on Lewis's shoulders who would certainly not just supervise of brining regarding a cultural adjustment but would additionally have to prove herself in her new role.

Inappropriate Management Design of Leader: Lewis's administration style and its incompatibility with the marketing department's role can also be seen as an OB difficulty particularly as she has actually been made use of to managing problems in the procedures division where employees are educated to focus on processes and obtain them right. The advertising and marketing division on the other hand can be viewed as a team of people that are used to being nurtured by Krasnow that focused more on result than processes.

Interdepartmental Differences: Interdepartmental disagreements between three departments, marketing, merchandizing as well as operations respectively over the appropriation of the marketing mix can be identified as one more OB worry. The advertising and marketing department does not share the same vision as the various other 2 divisions pertaining to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and procedures departments do not concur over the advertising mix allocation amongst one an additional either.

Disintegration in Advertising And Marketing Division: Disintegration between the marketing and advertising departments can be determined as an additional OB issue which might need more interest. The truth that the marketing and advertising areas in the marketing division are separated is preventing both departments from getting from each various other's experience and also proficiency. Integration of advertising and marketing with merchandising and operations would end up being more difficult if the marketing division itself is degenerated which can be another potential OB problem.

Obamacare Analysis

Different theories have actually been used to describe the conditions to get additional quality regarding the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers think that juniors are easy as well as lazy, have little ambition and also withstand modification. The difficult variation of this theory emphasized threat, tight controls, threats and also penalties. With time it creates low efficiency, refined sabotage and also competition (Offer, 2003). Although the situation at Obamacare is not entirely complying with Concept X, it can be seen that brand-new hires are discovering this atmosphere instead difficult which may at some point bring about a better disposition of the monitoring towards Theory X. According to McGregor's supported view, which he called Concept Y, the necessary job of the administration is to prepare organizational problems to make sure that people can achieve their very own goals best by guiding their initiatives towards business rewards. If people discover no fulfillment in their work, the monitoring would have little option but to rely on concept X and also exterior control (Offer, 2003). Even while examining Lewis's administration design, concept X might have appropriated in the operations department to some extent however the Marketing department would certainly need dependence on Theory Y so as to get the creativity as well as creativity from the groups.

Tuckman's Teamwork Concept: Regarding Lewis's issue concerning bringing consistency between the marketing and advertising division is concerned, this would at first bring about conflict as talked about by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). Based on Tuckman's theory displayed in appendix 3, during the first stage of team development, people might not bond, as they are active discovering their place in the group. By combining the marketing and advertising division's work, there might be the same first disconnect which might lead to the second stage of 'storming' where the teams test one another. It is only during the 3rd phase or 'norming' when they would certainly come together to share concepts prior to the group can bring around harmony in the fourth stage 'carrying out'.

Bridges' Shift Version: According To William Bridge's concept (appendix 4), people are fairly uneasy with modification, which is evident by the circumstance at Obamacare The scenario can be seen as a regular course of life if is researched as per Bridge's theory where he describes that individuals go through 3 phases of transition when they experience modification. 'Closing, shedding and Letting go', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When individuals are presented with change, they go into stage one therefore there may be feelings like unhappiness, unpredictability, frustration, temper, anxiety, denial and disorientation.The situation at the advertising and marketing department of Obamacare is comparable so Lewis can obtain comfy with the suggestion that it is not phenomenal habits. In the second stage, there might be a demand to bridge the space in between the brand-new as well as old culture so Lewis might need to face this challenge as soon as Krasnow leaves. There might be low morale and also reduced efficiency at this stage which must not be taken as a problem. It is throughout this stage that Lewis will certainly have to offer advice to the division to ensure that they can discover an orientation. It can be seen how Krasnow has currently made this transition less complicated by making Lewis get involved in the department a year prior to his real separation. As per Bridges' Design, stage 3 will produce openness to knowing, High power and also dedication as people will accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has talks about the significance of 'protection needs as being a lower degree requirement of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel secure as well as out of risk' is at the 2nd degree of needs. Before a staff member can be made to create psychologically, he requires to have his 'Physical 'and 'Security' requires satisfied.

SWOT Analysis for Obamacare Case Study

Ramification of Analysis.

The OB analysis has actually looked at various concepts to recognize exactly how to cope with the existing circumstance handy. The adhering to three choices have been proposed to help Lewis deal with the organizational difficulties in the marketing department. Each of these options has actually been proposed for alleviating the change required to bring the marketing department in accordance with the requirements of the marketplace and also for making the social adjustment that would comply with when the current leader leaves.

Combination of advertising and marketing functions. Dividing Adverting and also Production features. Assimilation of Advertising with Operations.

Evaluation of Alternatives.

Assimilation of Marketing & Advertising And Marketing Functions: The in-house advertising agency of Obamacare is already strength for the organization in terms of conserving up on expenses related to marketing as well as promo. Considering that no new recruitment has been done after Bridget Cole's departure with the coverage line being directly designated to Krasnow for the advertising feature, this is a favorable opportunity for incorporating the marketing and advertising features. Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merger days has know-how in business-to-business marketing together with company as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to deal with both advertising and marketing functions.

The advantage of this technique is that it will incorporate the two functions while lowering the requirement for working with an extra source for advertising and marketing. Along with this, Lewis would certainly be heading the marketing division and all the same her substitute would be needed for the existing function that she is performing. The disadvantage of this alternative is that outside hiring might bring about resentment from interior employees that may be considering the setting of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Manufacturing: Provided the affordable pressures and premium quality work needed from the ad agency, it is advised that Lewis must allow the manufacturing system to be a different feature from the advertising and marketing unit. Because a lot of ad agency had these two features as different systems, it makes more sense to comply with the standard. In addition to this, both features might have the ability to concentrate on their core triggers extra effectively. The negative aspect of this technique would certainly be that additional expenses would have to be borne for establishing up separate manufacturing functions. In addition to this, a production head might have to be worked with which can raise expenses for the organization.

Combination of Advertising And Marketing with Operations: Since Lewis is currently taking treatment of the advertising as well as operations departments all at once; it makes feeling to incorporate the two functions given that she has actually been effectively taking care of both ends. The fact that Lewis has to adapt her management design for the advertising department recommends that these two departments would certainly be culturally diverse.


An assessment of the three options shows that combination of advertising and operations would not be a practical move due to the huge distinctions between the 2 divisions in spite of the reality that presently Lewis is managing both. While splitting up of the production function may have been a beneficial relocation for the advertising and marketing division, the fact that it would mean putting a 3rd function under Lewis's wing indicates this must be stayed clear of.

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

Marketing and advertising functions would certainly be merged.

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

Production function will remain component 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 marketing division.

Open door policy and focus on cross department communication will be focused on getting rid of disharmony.

Backup strategy.

If the combination does not work out as planned, a contingency strategy would certainly comply with which would separate the production function from the marketing feature 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 manufacturing feature will certainly be separated by putting it under an SVP manufacturing.