Office Space A Companys Frontier The Corporate Decision To Buy Or Lease Case Study Analysis


Home >> Harvard >> Office Space A Companys Frontier The Corporate Decision To Buy Or Lease >>

Office Space A Companys Frontier The Corporate Decision To Buy Or Lease Case Study Solution

Background and Facts

Office Space A Companys Frontier The Corporate Decision To Buy Or Lease an office supplies retailer for little as well as average sized businesses has lately been associated with planning for a merging with its rival House Deport, which has actually impacted efficiency levels in departmentswith the senior manager associated with lawful issues presented by the federal Profession Payment. With the Advertising and marketing 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 function in the near future. With challenges in the kind of a prospective cultural change as well as low employee spirits, the organization requires a full reengineering effort at the advertising and marketing department.

Problem Statement
Porter's 5 Forces Analysis
The prospective social change at the advertising and marketing division of Office Space A Companys Frontier The Corporate Decision To Buy Or Lease is enhancing uncertainty in the working environment resulting in numerous challenges 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 significant role in affecting tactical decisions since Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Trade Payment's treatment in the process. Offered the reality that the store has an international visibility with branches in UK, U.S.A., Canada and Germany, political consider each of these countries might have the ability to impact efficiency or strategic objectives. Federal Trade Payment's antitrust suit against the merging took up valuable time of the organization's senior administration suggesting that 'political' factors can have serious effects for a global service.

Economic Factors: Financial factors such as the emergence of small businesses in the worldwide scenario recommend that Office Space A Companys Frontier The Corporate Decision To Buy Or Lease is growing in a setting where there is prospective development of services. Reality that shop customers are mostly looking for workplace supplies for house workplaces suggests that the market has a climbing trend of business owners and home based services.

Social factors: Social fads in the economic situation show that consumers are trying to find benefit along with eye-catching costs. Market research demonstrates how the customer for Office Space A Companys Frontier The Corporate Decision To Buy Or Lease lacks awareness regarding discovering options which can supply a mix of comfort and also low costs.

Technical factors: Technology plays an essential function in Office Space A Companys Frontier The Corporate Decision To Buy Or Lease's company method especially as the organization is piloting Innovation centers which would certainly provide innovation sales and support in the type of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues and Symptoms.

Numerous underlying Business Actions problems can be seen in Office Space A Companys Frontier The Corporate Decision To Buy Or Lease's case as highlighted in this section.

Apprehensions concerning cultural change: There is worry concerning a cultural modification that would occur when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising And Marketing with most of the personnel already revealing discontent over this prospective move. This expected change has actually developed anxiety in the office which has been combined with the past anxiety of preparing the company for a prospective merging with House Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is lack of workers that can match the stressful environment of a fast-paced company. Not just does this cause difficulty in discovering the best people, it puts stress and anxiety on brand-new hires as can not stand up to the pace and pressure that the company expects them to birth.

Twin Coverage Lines: Novices locate this organizational society cumbersome and challenging to deal with specifically as populated line connections are suggested to be weaker as a whole as well as objective setup and also efficiency examination is still done by the solid line supervisor. This implies that newcomers can lose clearness about their respective roles and purposes particularly as dotted line reporting does not maintain them in straight interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles despite the fact that it had actually been guessed that the latter would take Krasnow's position came as a strike to her spirits. Lewis might have been capable and suitable for the task yet the reality that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from services.

Worry & Task Instability: Worry and instability can be identified as two major concerns that Lewis would certainly be managing especially as the merger has actually now be cancelled and two elderly execs of the advertising and marketing division would certainly be leaving. The whole obligation of the department would certainly be falling on Lewis's shoulders that would certainly not simply be in charge of brining regarding a social adjustment however would also need to prove herself in her brand-new duty.

Inappropriate Monitoring Design of Leader: Lewis's administration design and its incompatibility with the marketing division's function can additionally be viewed as an OB challenge particularly as she has been made use of to managing issues in the operations department where employees are shown to concentrate on procedures and also get them right. The advertising and marketing department on the various other hand can be seen as a team of people that are used to being nurtured by Krasnow who focused extra on outcome than processes.

Interdepartmental Arguments: Interdepartmental differences between three departments, advertising, merchandizing and procedures respectively over the allocation of the advertising mix can be identified as one more OB issue. The advertising division does not share the same vision as the various other two divisions pertaining to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and also operations divisions do not agree over the marketing mix allowance among one an additional either.

Fragmentation in Marketing Division: Fragmentation in between the marketing and advertising divisions can be identified as an additional OB issue which could require additional focus. The reality that the advertising and marketing sections in the advertising and marketing division are disconnected is protecting against both divisions from obtaining from each other's experience as well as knowledge. Integration of advertising with retailing as well as operations would certainly come to be more difficult if the advertising and marketing division itself is broken down which can be another possible OB issue.

Office Space A Companys Frontier The Corporate Decision To Buy Or Lease Analysis

Different concepts have actually been made use of to discuss the scenarios to get additional clarity about the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers believe that juniors are passive and lazy, have little passion as well as withstand modification. The situation at Office Space A Companys Frontier The Corporate Decision To Buy Or Lease is not totally adhering to Concept X, it can be seen that brand-new hires are locating this environment rather difficult which may eventually lead to a better disposition of the management in the direction of Concept X. Even while assessing Lewis's monitoring style, theory X may have been ideal in the procedures department to some extent however the Advertising department would certainly require dependence on Theory Y in order to obtain the creative thinking and creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's problem concerning bringing consistency in between the marketing and advertising department is worried, this would originally cause conflict as reviewed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's theory shown in appendix 3, during the first phase of team advancement, people might not bond, as they are busy discovering their location in the group. By incorporating the advertising and marketing division's job, there may be the same preliminary detach which might result in the second phase of 'storming' where the teams test each other. It is only throughout the 3rd phase or 'norming' when they would certainly come together to share concepts prior to the group can bring about harmony in the fourth stage 'doing'.

Bridges' Shift Design: Based On William Bridge's theory (appendix 4), people are quite awkward with change, which is apparent by the scenario at Office Space A Companys Frontier The Corporate Decision To Buy Or Lease The scenario can be viewed as a regular training course of life if is examined based on Bridge's concept where he clarifies that people undergo 3 phases of transition when they experience adjustment. 'Closing, shedding and Releasing', The Neutral Zone and 'The New Starting' (Bridges, 2004). When individuals exist with modification, they go into phase one therefore there might be emotions like unhappiness, uncertainty, stress, anger, fear, denial as well as disorientation.The circumstance at the marketing division of Office Space A Companys Frontier The Corporate Decision To Buy Or Lease is similar so Lewis can get comfy with the suggestion that it is not extraordinary behavior. In the 2nd phase, there may be a need to link the void in between the brand-new and also old society so Lewis may need to face this ordeal as soon as Krasnow leaves. There might be reduced spirits as well as reduced performance at this phase which need to not be taken as a problem. It is throughout this stage that Lewis will certainly need to provide assistance to the division to make sure that they can discover a sense of direction. It can be seen just how Krasnow has actually already made this shift less complicated by making Lewis get involved in the division a year prior to his real separation. Based on Bridges' Model, phase 3 will bring about visibility to understanding, High power as well as dedication as individuals will accept the change (Bridges, 2004).
Vrio Analysis
Maslow's Need hierarchy: The OB issue related to insecurity at the workplace has been triggered to start with by the change in monitoring and second of all by the fact that the merging will certainly no more be initiated. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has goes over the importance of 'security requires as being a lower degree need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel secure and also safe' goes to the 2nd degree of requirements. Before a staff member can be made to develop emotionally, he requires to have his 'Physical 'and also 'Security' needs met. This shows that unless the workers are made to feel safe regarding their present employment status in Office Space A Companys Frontier The Corporate Decision To Buy Or Lease they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Office Space A Companys Frontier The Corporate Decision To Buy Or Lease Case Study

Ramification of Analysis.

The OB analysis has actually checked out different theories to understand just how to handle the present scenario at hand. The following 3 alternatives have actually been suggested to aid Lewis take care of the organizational difficulties in the advertising department. Each of these options has actually been suggested for easing the transition needed to bring the marketing department according to the requirements of the market and for making the cultural modification that would follow as soon as the existing leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting and Production functions. Assimilation of Advertising And Marketing with Operations.

Examination of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merging days has proficiency in business-to-business advertising along with agency and retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to manage both marketing and also advertising and marketing functions.

The benefit of this approach is that it will integrate both features while reducing the requirement for hiring an added resource for marketing. Lewis would be heading the advertising and marketing department as well as in any case her substitute would be required for the existing role that she is carrying out. The negative aspect of this option is that outside hiring may produce animosity from interior personnel that might be considering the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting as well as Manufacturing: Offered the affordable pressures as well as high quality work required from the advertising agency, it is advised that Lewis must enable the manufacturing unit to be a different feature from the advertising system. Given that most marketing firms had these 2 functions as different systems, it makes more feeling to follow the standard.

Integration of Advertising with Workflows: Since Lewis is already taking treatment of the advertising and marketing and also procedures departments all at once; it makes sense to integrate the two features given that she has actually been efficiently taking treatment of both ends. The fact that Lewis has to adapt her monitoring style for the advertising and marketing division recommends that these two departments would be culturally diverse.


An assessment of the three options suggests that integration of advertising and procedures would certainly not be a viable move due to the vast differences between the two divisions despite the truth that currently Lewis is taking care of both. While separation of the manufacturing function may have been a favorable relocation for the advertising and marketing department, the reality that it would mean putting a 3rd feature under Lewis's wing implies this should be prevented.

Action Strategy.
Lewis will take control of the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Manufacturing feature will certainly stay part of advertising under marketing function.

Lewis will certainly separate herself from operations.

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

Open door plan as well as focus on cross department interaction will be aimed at removing dissonance.

Contingency strategy.

If the combination does not work out as intended, a contingency plan would adhere to which would separate the manufacturing function from the advertising and marketing feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the marketing department without an SVP. Because case the production feature will definitely be divided by positioning it under an SVP manufacturing.