Pawson Foundation August 2006 Case Study Analysis


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Pawson Foundation August 2006 Case Study Analysis

Background and Facts

Pawson Foundation August 2006 an office supplies seller for small and also medium sized companies has recently been associated with preparing for a merger with its competitor House Deport, which has influenced efficiency degrees in departmentswith the senior supervisor associated with lawful complications put forth by the federal Profession Compensation. With the Advertising Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the current head of operations has actually been asked to take the role in the near future. With obstacles in the type of a potential social change and also low worker spirits, the organization requires a total reengineering effort at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The potential social modification at the marketing department of Pawson Foundation August 2006 is increasing uncertainty in the working environment bring about 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 major role in affecting critical decisions given that Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Trade Payment's intervention while doing so. Given the fact that the store has a global visibility with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these nations might be able to affect efficiency or critical goals. Federal Trade Payment's antitrust match versus the merging occupied useful time of the company's elderly management suggesting that 'political' factors can have major implications for a global service.

Economic Factors: Financial factors such as the development of local business in the global circumstance suggest that Pawson Foundation August 2006 is thriving in a setting where there is prospective growth of companies. Fact that store clients are mostly looking for workplace materials for residence workplaces recommends that the market has a rising trend of business owners and also home based businesses.

Social factors: Social fads in the economic climate show that clients are seeking ease in addition to eye-catching prices. Marketing research demonstrates how the client for Pawson Foundation August 2006 does not have recognition concerning locating solutions which can provide a combination of ease and also low costs.

Technical factors: Innovation plays an essential function in Pawson Foundation August 2006's business approach specifically as the company is piloting Technology facilities which would use technology sales as well as support in the form of memory upgrades, outer installations. (Recap of PEST in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Organizational Habits issues can be seen in Pawson Foundation August 2006's case as highlighted in this section.

Apprehensions concerning cultural change: There is apprehension regarding a cultural adjustment that would happen once Todd Krasnow leaves from his position as the Exec Vice President of Marketing with a lot of the team member already showing unhappiness over this possible step. This expected adjustment has produced stress in the workplace which has actually been combined with the previous tension of preparing the firm for a prospective merger with Home Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is shortage of personnel that can match the demanding atmosphere of a fast-paced company. Not just does this bring about trouble in finding the appropriate people, it places tension on brand-new hires as can not hold up against the pace and stress that the company anticipates them to bear.

Double Reporting Lines: Novices locate this business society difficult and hard to manage specifically as populated line relationships are suggested to be weak in general and objective setup and also efficiency assessment is still done by the solid line manager. This suggests that newcomers can shed clearness about their corresponding duties as well as objectives specifically as populated line coverage does not maintain them in straight communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had actually been guessed that the last would take Krasnow's position came as an impact to her spirits. Lewis may have been qualified and also appropriate for the task however the truth that Kransnow's departure would make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Task Insecurity: Fear and also instability can be recognized as two major problems that Lewis would be taking care of specifically as the merger has actually now be cancelled as well as two senior executives of the advertising and marketing department would be leaving. The entire responsibility of the division would be dropping on Lewis's shoulders that would not simply supervise of brining about a social modification however would certainly likewise need to show herself in her new function.

Incompatible Administration Design of Leader: Lewis's monitoring style and also its conflict with the advertising division's role can likewise be viewed as an OB obstacle particularly as she has been used to dealing with issues in the procedures division where personnel are instructed to concentrate on processes as well as get them right. The advertising and marketing division on the various other hand can be seen as a group of individuals that are used to being supported by Krasnow who focused a lot more on output than procedures.

Interdepartmental Disputes: Interdepartmental arguments between 3 departments, advertising and marketing, merchandizing and also operations specifically over the allocation of the advertising mix can be recognized as another OB problem. The advertising department does not share the same vision as the various other 2 divisions concerning the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing as well as procedures divisions do not concur over the advertising and marketing mix allocation amongst one another either.

Disintegration in Advertising Department: Fragmentation in between the advertising and marketing departments can be identified as an additional OB problem which could require additional interest. The reality that the advertising and marketing areas in the marketing division are disconnected is avoiding both departments from gaining from each other's experience and also know-how. Integration of marketing with retailing and procedures would certainly become more difficult if the advertising department itself is disintegrated which can be one more potential OB problem.

Pawson Foundation August 2006 Analysis

Different theories have been used to explain the situations to get further quality concerning the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers believe that juniors are easy as well as careless, have little ambition and withstand change. The circumstance at Pawson Foundation August 2006 is not totally following Theory X, it can be seen that new hires are locating this environment rather demanding which may ultimately lead to a better disposition of the management in the direction of Concept X. Even while assessing Lewis's administration style, concept X may have been ideal in the procedures division to some extent however the Marketing division would call for reliance on Theory Y in order to obtain the creativity and creativity from the teams.

Tuckman's Team effort Theory: As much as Lewis's issue about bringing consistency between the advertising and also marketing department is concerned, this would at first lead to conflict as reviewed by Bruce Tuckman in his 'Team effort Theory'. By integrating the advertising and marketing as well as advertising and marketing division's work, there might be the same first disconnect which might lead to the second phase of 'storming' where the groups challenge one another.

Bridges' Transition Model: As per William Bridge's concept (appendix 4), people are fairly unpleasant with adjustment, which is evident by the situation at Pawson Foundation August 2006 The situation can be viewed as a regular course of life if is studied as per Bridge's concept where he clarifies that individuals undergo 3 stages of transition when they experience adjustment. 'Closing, shedding as well as Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When individuals are presented with change, they enter phase one and so there might be emotions like despair, unpredictability, irritation, temper, anxiety, rejection and disorientation.The scenario at the advertising and marketing department of Pawson Foundation August 2006 is similar so Lewis can get comfortable with the idea that it is not extraordinary behavior. In the second stage, there may be a requirement to connect the space between the brand-new and also old culture so Lewis may have to encounter this experience once Krasnow leaves. There might be low spirits as well as reduced efficiency at this stage which should not be taken as a problem. It is throughout this stage that Lewis will certainly have to give support to the department so that they can discover a sense of direction. It can be seen how Krasnow has actually already made this shift much easier by making Lewis get associated with the department a year prior to his actual departure. As per Bridges' Design, stage 3 will certainly bring about openness to understanding, High energy and also commitment as individuals will accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has reviews the significance of 'security needs as being a reduced level need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel safe and secure and also out of threat' is at the 2nd degree of requirements. Before a staff member can be made to develop mentally, he needs to have his 'Physiological 'and 'Safety' needs met.

SWOT Analysis for Pawson Foundation August 2006 Case Study

Effects of Analysis.

The OB analysis has actually looked at numerous concepts to recognize just how to cope with the current situation at hand. The following three options have actually been recommended to help Lewis deal with the business obstacles in the marketing division. Each of these options has been suggested for reducing the change required to bring the marketing division in line with the requirements of the market and also for making the social adjustment that would adhere to when the existing leader leaves.

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

Examination of Alternatives.

Integration of Marketing & Advertising Functions: The internal marketing company of Pawson Foundation August 2006 is already toughness for the organization in terms of saving up on expenses associated with advertising and marketing and promotion. Since no brand-new recruitment has actually been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the advertising feature, this is a positive chance for incorporating the advertising and marketing functions. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merging days has knowledge in business-to-business advertising and marketing along with agency and retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both advertising and marketing features.

The benefit of this strategy is that it will certainly incorporate the two features while reducing the need for working with an added source for advertising and marketing. Along with this, Lewis would certainly be heading the advertising department and in any case her substitute would be needed for the present function that she is performing. The negative aspect of this choice is that outside hiring may produce bitterness from internal workers who might be looking at the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and also Production: Given the competitive pressures as well as premium quality work required from the ad agency, it is recommended that Lewis ought to permit the manufacturing unit to be a separate feature from the advertising and marketing system. Given that many advertising agencies had these two functions as separate devices, it makes more sense to follow the norm. Both features might be able to focus on their core activates more successfully. However, the disadvantage of this approach would certainly be that added expenses would need to be birthed for setting up different manufacturing features. In addition to this, a production head might have to be worked with which could raise overheads for the organization.

Integration of Advertising And Marketing with Operations: Since Lewis is currently taking care of the advertising and marketing as well as operations departments at the same time; it makes good sense to integrate both functions considering that she has been efficiently caring for both ends. The reality that both departments currently have significant distinctions over allocation of resources recommends that this assimilation might have the ability to cause harmony particularly as Lewis would be heading both ends.However there are numerous negative aspects of this action particularly as it would place way too much worry over Lewis's shoulders. The fact that Lewis has to adapt her monitoring design for the advertising department suggests that these 2 divisions would be culturally diverse. In addition to this, Lewis may not be able to use one kind of leadership style to both departments which could cause inefficiency in either among the two functions.


An examination of the 3 alternatives suggests that integration of advertising and marketing and also procedures would not be a viable action due to the huge distinctions between the two divisions although that presently Lewis is managing both. While splitting up of the production function might have been a desirable relocation for the marketing department, the fact that it would certainly mean placing a 3rd function under Lewis's wing indicates this should be avoided. The integration of the advertising department is the most effective alternative in terms of getting the optimum arise from the department. An action plan for this option is talked about below.

Activity Plan.
Lewis will certainly take over the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising features would 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 advertising feature.

Lewis will divide herself from operations.

An autonomous leadership style with staff member empowerment will certainly be utilized in advertising and marketing division.

Open up door plan and also emphasis on cross departmental interaction will certainly be focused on removing dissonance.

Contingency plan.

If the assimilation does not exercise as planned, a contingency plan would certainly comply with which would certainly separate the production function from the advertising feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the advertising department without an SVP. In that case the production function will definitely be divided by positioning it under an SVP manufacturing.