Background and Facts
Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry a workplace materials store for small as well as medium sized companies has lately been involved in planning for a merger with its rival House Deport, which has influenced performance levels in departmentswith the senior manager involved in legal issues put forth by the government Profession Payment. With the Marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the present head of operations has been asked to take the duty in the near future. With challenges in the type of a possible social modification as well as reduced employee spirits, the company wants a total reengineering initiative at the marketing division.Problem Declaration
The prospective social change at the advertising and marketing division of Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry is raising unpredictability in the working environment bring about various obstacles for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis
PEST analysis
Political Factors: Political factors play a major function in affecting strategic decisions considering that Stapes Inc. had to abandon its strategies of combining with Workplace Deport after the Federal Trade Commission's treatment while doing so. Offered the fact that the shop has an international visibility with branches in UK, U.S.A., Canada and also Germany, political consider each of these nations may have the ability to influence efficiency or tactical goals. Federal Profession Payment's antitrust suit versus the merger used up valuable time of the company's elderly administration recommending that 'political' factors can have major effects for a global service.
Economic Factors: Financial factors such as the appearance of small businesses in the international circumstance recommend that Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry is growing in an environment where there is possible development of companies. Fact that store clients are primarily looking for office products for residence workplaces recommends that the market has a rising pattern of business owners and also house based organisations.
Social factors: Social patterns in the economic situation show that clients are searching for benefit in addition to appealing prices. Marketing research demonstrates how the consumer for Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry lacks awareness regarding discovering options which can use a combination of ease as well as inexpensive.
Technical factors: Technology plays a crucial function in Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry's service approach especially as the company is piloting Innovation facilities which would certainly provide modern technology sales and assistance in the kind of memory upgrades, outer installments. (Summary of BUG in appendix 2).
OB Issues and Manifestations.
A number of underlying Organizational Behavior issues can be seen in Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry's case as highlighted in this section.
Uneasiness about social adjustment: There is concern concerning a cultural change that would take place when Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with a lot of the staff members currently revealing unhappiness over this possible relocation. This predicted adjustment has actually created tension in the office which has actually been combined with the previous tension of preparing the company for a prospective merger with House Deport.
Demanding Job Atmosphere for Newcomers: There is scarcity of workers that can match the stressful atmosphere of a busy company. Not just does this result in difficulty in finding the appropriate individuals, it puts tension on new hires as can not endure the pace and pressure that the company expects them to birth.
Twin Reporting Lines: Beginners discover this business society difficult and also hard to cope with particularly as dotted line partnerships are suggested to be weak generally as well as unbiased setup and efficiency examination is still done by the solid line manager. This implies that newcomers might shed clarity about their respective duties and purposes particularly as populated line coverage does not keep them in straight communication with the strong line supervisors.
Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had actually been guessed that the latter would certainly take Krasnow's position came as a blow to her morale. Lewis may have been capable and proper for the job yet the fact that Kransnow's separation would make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.
Anxiety & Task Insecurity: Concern and also insecurity can be recognized as two major problems that Lewis would be managing particularly as the merging has now be terminated and also two elderly execs of the advertising division would certainly be leaving. The entire duty of the department would certainly be dropping on Lewis's shoulders that would certainly not simply be in charge of brining about a social change however would additionally have to verify herself in her new role.
Inappropriate Monitoring Style of Leader: Lewis's management style and its incompatibility with the marketing department's duty can additionally be seen as an OB difficulty specifically as she has been made use of to managing problems in the operations division where personnel are instructed to focus on procedures as well as get them. The advertising department on the other hand can be seen as a team of individuals that are used to being supported by Krasnow that focused more on result than procedures.
Interdepartmental Differences: Interdepartmental differences in between 3 departments, advertising and marketing, merchandizing and also operations respectively over the allotment of the advertising mix can be determined as one more OB problem. Although the advertising and marketing department does not share the very same vision as the other two departments regarding the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing as well as procedures departments do not concur over the advertising mix allocation amongst one another either.
Disintegration in Marketing Department: Disintegration in between the advertising and marketing departments can be determined as an additional OB issue which can require more focus. The reality that the marketing and advertising areas in the advertising department are disconnected is protecting against both divisions from getting from each various other's experience and also know-how. Assimilation of marketing with merchandising as well as procedures would certainly end up being more difficult if the advertising and marketing department itself is broken down which can be another prospective OB problem.
Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry Analysis
Different concepts have actually been used to discuss the scenarios to get further quality about the scenario at hand.
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers believe that juniors are easy and also careless, have little ambition and resist change. The situation at Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry is not entirely complying with Theory X, it can be seen that new hires are discovering this atmosphere instead stressful which might ultimately lead to a higher inclination of the administration in the direction of Theory X. Even while examining Lewis's management style, theory X may have been suitable in the operations department to some degree but the Advertising and marketing department would certainly need dependence on Concept Y in order to get the creativity and also creativity from the groups.
Tuckman's Team effort Theory: As much as Lewis's problem about bringing consistency between the advertising and also advertising division is worried, this would at first lead to clash as discussed by Bruce Tuckman in his 'Team effort Theory'. By integrating the advertising and advertising department's job, there may be the very same preliminary detach which can lead to the second phase of 'storming' where the groups test one an additional.
Bridges' Shift Model: According To William Bridge's theory (appendix 4), individuals are fairly uneasy with change, which is obvious by the scenario at Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry The situation can be viewed as a regular course of life if is researched as per Bridge's concept where he explains that individuals experience three stages of transition when they experience change. 'End, shedding and also Letting go', The Neutral Area and 'The New Beginning' (Bridges, 2004). When individuals exist with adjustment, they get in phase one and so there may be emotions like sadness, unpredictability, disappointment, temper, concern, rejection as well as disorientation.The scenario at the advertising division of Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry is similar so Lewis can obtain comfortable with the idea that it is not phenomenal habits. In the 2nd stage, there might be a requirement to link the gap in between the brand-new and also old society so Lewis might have to face this challenge once Krasnow leaves. There might be reduced spirits and also low efficiency at this stage which ought to not be taken as a problem. It is throughout this phase that Lewis will have to give support to the division to make sure that they can locate a sense of direction. It can be seen how Krasnow has currently made this shift easier by making Lewis get associated with the department a year before his actual separation. According to Bridges' Model, phase 3 will certainly produce visibility to knowing, High power and also commitment as people will certainly welcome the adjustment (Bridges, 2004).
Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has goes over the significance of 'safety needs as being a lower level demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel secure and also out of danger' is at the 2nd level of needs. Before an employee can be made to establish emotionally, he needs to have his 'Physical 'and 'Safety' requires fulfilled.
SWOT Analysis for Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry Case Study
Ramification of Analysis.
The OB analysis has actually considered different concepts to understand exactly how to handle the existing situation available. The following 3 options have actually been suggested to assist Lewis deal with the business difficulties in the advertising division. Each of these alternatives has actually been proposed for reducing the change required to bring the marketing division in accordance with the requirements of the marketplace as well as for making the cultural adjustment that would adhere to as soon as the existing leader leaves.
Integration of marketing and advertising functions. Dividing Adverting and Production functions. Assimilation of Marketing with Workflow.
Examination of Alternatives.
Integration of Advertising And Marketing & Marketing Functions: The in-house advertising firm of Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry is already toughness for the company in regards to conserving up on expenses associated with advertising and also promo. Given that no brand-new employment has been done after Bridget Cole's separation with the coverage line being straight assigned to Krasnow for the advertising and marketing function, this is a positive chance for integrating the marketing and advertising features. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merger days has expertise in business-to-business advertising and marketing together with agency and also retail advertising 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 method is that it will incorporate the two functions while reducing the requirement for working with an added resource for advertising. Lewis would certainly be heading the advertising and marketing division and also in any kind of case her replacement would be needed for the present duty that she is carrying out. The downside of this choice is that exterior hiring may cause resentment from internal personnel who may be considering the placement of EVP after Lewis takes over Krasnow's placement.
Dividing Adverting and also Manufacturing: Provided the affordable stress as well as premium quality job required from the ad agency, it is suggested that Lewis needs to allow the manufacturing system to be a separate function from the advertising and marketing system. Considering that most advertising agencies had these 2 features as different units, it makes more feeling to follow the norm. Both features might be able to focus on their core triggers a lot more efficiently. Nevertheless, the drawback of this approach would be that additional costs would need to be borne for setting up different production features. A production head may have to be worked with which can boost overheads for the organization.
Combination of Advertising with Workflows: Given that Lewis is already taking treatment of the advertising and also operations divisions at the same time; it makes feeling to integrate the 2 features considering that she has been successfully taking treatment of both ends. The reality that Lewis has to adjust her management style for the advertising and marketing department recommends that these 2 departments would certainly be culturally diverse.
Recommendation.
An examination of the three options suggests that integration of marketing and procedures would not be a possible action because of the vast distinctions between the two departments although that presently Lewis is managing both. While separation of the manufacturing function may have been a desirable move for the marketing department, the reality that it would suggest placing a third feature under Lewis's wing implies this need to be prevented as well. The integration of the marketing division is the very best option in terms of obtaining the optimal results from the division. An action plan for this option is discussed listed below.
Activity Plan.
Lewis will take over the role of EVP Advertising and marketing after Krasnow leaves.
Marketing and advertising features would certainly be merged.
Judith Shapiro will certainly be employed to take Lewis's place as SVP of advertising and marketing.
Manufacturing feature will continue to be component of marketing under advertising and marketing function.
Lewis will certainly separate herself from operations.
An autonomous management design with worker empowerment will be utilized in advertising and marketing division.
Open door plan and also focus on cross department interaction will be focused on removing disharmony.
Backup plan.
If the assimilation does not exercise as planned, a backup strategy would certainly follow which would separate the production function from the marketing function to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the marketing department without an SVP. In that case the manufacturing function will certainly be divided by positioning it under an SVP production.