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Phon Tech Corporation Case Study Solution

Background and Facts

Phon Tech Corporation a workplace products seller for tiny as well as moderate sized organisations has actually lately been associated with preparing for a merger with its rival Residence Deport, which has influenced effectiveness degrees in departmentswith the senior manager associated with legal problems put forth by the government Profession Compensation. With the Marketing Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the near future. With challenges in the kind of a potential cultural change and low staff member spirits, the company requires a complete reengineering initiative at the marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The potential social change at the advertising and marketing department of Phon Tech Corporation is enhancing unpredictability in the workplace resulting in numerous challenges for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting critical choices since Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Trade Payment's treatment while doing so. Given the truth that the shop has a worldwide visibility with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries might be able to affect efficiency or strategic objectives. Federal Profession Commission's antitrust fit versus the merging used up valuable time of the company's elderly management recommending that 'political' factors can have severe effects for a worldwide business.

Economic Factors: Economic factors such as the introduction of local business in the international scenario suggest that Phon Tech Corporation is prospering in an atmosphere where there is potential development of services. Fact that store customers are mostly looking for office supplies for residence workplaces suggests that the market has a rising trend of business owners and residence based services.

Social factors: Social patterns in the economic situation show that consumers are trying to find ease along with eye-catching rates. Market research shows how the client for Phon Tech Corporation lacks understanding concerning discovering options which can supply a combination of ease and also inexpensive.

Technological factors: Technology plays an important duty in Phon Tech Corporation's company approach especially as the company is piloting Innovation facilities which would offer modern technology sales and also assistance in the type of memory upgrades, peripheral setups. (Recap of PEST in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Organizational Habits concerns can be seen in Phon Tech Corporation's case as highlighted in this section.

Concerns regarding cultural change: There is worry regarding a cultural modification that would certainly take place when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with the majority of the team member already revealing unhappiness over this potential relocation. This predicted modification has produced anxiety in the office which has been coupled with the past anxiety of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Stressful Work Environment for Newcomers: There is lack of workers that can match the stressful setting of a fast-paced organization. Not only does this result in trouble in locating the best people, it places tension on brand-new hires as can not hold up against the pace and pressure that the company expects them to birth.

Double Reporting Lines: Novices locate this business culture cumbersome and also challenging to deal with especially as populated line connections are indicated to be weak as a whole and unbiased setup and performance assessment is still done by the strong line manager. This implies that newbies can lose quality regarding their corresponding functions and also goals particularly as dotted line reporting does not maintain them in direct communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles although it had been hypothesized that the latter would certainly take Krasnow's placement came as a strike to her spirits. Lewis might have been qualified and proper for the work but the fact that Kransnow's separation would certainly make Coles a straight record to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Job Instability: Worry and also insecurity can be identified as 2 significant problems that Lewis would be dealing with particularly as the merger has actually currently be cancelled as well as two senior execs of the marketing department would certainly be leaving. The entire duty of the department would be falling on Lewis's shoulders who would certainly not simply be in charge of brining concerning a cultural modification but would certainly also need to confirm herself in her brand-new duty.

Incompatible Monitoring Style of Leader: Lewis's administration style and its conflict with the advertising and marketing department's duty can likewise be seen as an OB difficulty particularly as she has actually been made use of to handling problems in the operations division where employees are taught to concentrate on processes and also get them. The marketing department on the other hand can be viewed as a team of people who are used to being supported by Krasnow who focused a lot more on output than processes.

Interdepartmental Disputes: Interdepartmental disagreements between 3 divisions, advertising and marketing, merchandizing and procedures respectively over the allowance of the advertising and marketing mix can be determined as an additional OB concern. The marketing department does not share the same vision as the other two divisions relating to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing as well as procedures divisions do not agree over the advertising and marketing mix appropriation amongst one an additional either.

Disintegration in Advertising Division: Disintegration in between the marketing and advertising departments can be recognized as another OB concern which might need additional attention. The reality that the marketing and advertising sections in the marketing division are disconnected is preventing both departments from obtaining from each various other's experience as well as competence. Assimilation of advertising with retailing and operations would certainly become more difficult if the advertising and marketing division itself is degenerated which can be one more potential OB problem.

Phon Tech Corporation Analysis

Numerous concepts have actually been made use of to describe the conditions to get further clearness regarding the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that staffs are passive and careless, have little aspiration as well as withstand modification. The circumstance at Phon Tech Corporation is not totally following Concept X, it can be seen that new hires are discovering this environment instead stressful which might at some point lead to a better inclination of the administration towards Theory X. Also while evaluating Lewis's administration style, theory X might have been suitable in the procedures division to some extent but the Advertising division would certainly need dependence on Concept Y in order to obtain the imagination as well as creativity from the teams.

Tuckman's Team effort Concept: As much as Lewis's problem concerning bringing harmony between the advertising and marketing division is concerned, this would at first lead to clash as discussed by Bruce Tuckman in his 'Teamwork Theory'. By combining the marketing and also advertising division's job, there might be the very same first disconnect which could lead to the second stage of 'storming' where the groups test one another.

Bridges' Change Design: According To William Bridge's concept (appendix 4), individuals are fairly unpleasant with change, which is evident by the situation at Phon Tech Corporation The circumstance can be seen as a typical training course of life if is researched according to Bridge's theory where he discusses that people go through three phases of transition when they experience change. 'Closing, losing and Releasing', The Neutral Area and also 'The New Starting' (Bridges, 2004). When individuals are presented with modification, they get in stage one therefore there may be emotions like unhappiness, unpredictability, disappointment, anger, worry, denial and also disorientation.The scenario at the marketing department of Phon Tech Corporation is similar so Lewis can obtain comfortable with the concept that it is not extraordinary behavior. In the 2nd stage, there might be a need to connect the space between the new and old culture so Lewis might need to face this ordeal when Krasnow leaves. There might be reduced spirits and reduced productivity at this phase which must not be taken as a trouble. It is during this phase that Lewis will have to give support to the department to ensure that they can discover an orientation. It can be seen how Krasnow has already made this shift much easier by making Lewis obtain associated with the department a year before his actual separation. Based on Bridges' Design, phase three will certainly cause openness to learning, High energy and also dedication as individuals will certainly welcome the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has talks about the importance of 'safety needs as being a lower level requirement of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel safe and out of danger' is at the second degree of needs. Before a staff member can be made to establish mentally, he requires to have his 'Physical 'and also 'Security' requires fulfilled.

SWOT Analysis for Phon Tech Corporation Case Study

Effects of Analysis.

The OB analysis has actually considered numerous concepts to recognize how to handle the present scenario handy. The adhering to 3 alternatives have been proposed to aid Lewis manage the organizational challenges in the advertising and marketing department. Each of these options has actually been suggested for alleviating the shift needed to bring the advertising department in line with the requirements of the marketplace as well as for making the cultural change that would certainly comply with once the existing leader leaves.

Integration of advertising and marketing functions. Dividing Adverting and also Manufacturing functions. Assimilation of Marketing with Procedures.

Analysis of Alternatives.

Assimilation of Advertising And Marketing & Marketing Functions: The in-house marketing firm of Phon Tech Corporation is currently strength for the company in terms of conserving up on overheads related to advertising and marketing and also promo. Given that no new employment has actually been done after Bridget Cole's separation with the reporting line being straight assigned to Krasnow for the advertising feature, this is a positive opportunity for integrating the marketing and advertising features. Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merger days has knowledge in business-to-business advertising and marketing in addition to firm as well as retail advertising experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to handle both marketing and advertising features.

The advantage of this approach is that it will certainly integrate both features while reducing the need for hiring an additional resource for advertising. Lewis would be heading the advertising and marketing division and also in any type of case her substitute would be required for the present role that she is executing. The negative aspect of this alternative is that external hiring may cause resentment from inner workers that might be eying the setting of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and also Production: Provided the competitive pressures and high top quality job called for from the advertising and marketing company, it is recommended that Lewis must enable the production system to be a separate function from the marketing device. Because the majority of advertising and marketing firms had these 2 functions as different units, it makes more feeling to comply with the standard.

Combination of Marketing with Workflows: Since Lewis is currently caring for the advertising and marketing and also operations departments all at once; it makes good sense to integrate both functions considering that she has actually been efficiently dealing with both ends. The truth that both departments already have significant distinctions over allowance of resources suggests that this integration might have the ability to bring about consistency especially as Lewis would be heading both ends.However there are numerous downsides of this action particularly as it would certainly put too much worry over Lewis's shoulders. The truth that Lewis has to adapt her monitoring design for the marketing department recommends that these 2 divisions would certainly be culturally diverse. In addition to this, Lewis may not be able to use one kind of management design to both divisions which could result in inadequacy in either one of both features.


An evaluation of the three choices suggests that combination of advertising and also operations would not be a viable step due to the huge distinctions in between the 2 divisions in spite of the truth that presently Lewis is handling both. While splitting up of the manufacturing function might have been a beneficial action for the marketing division, the fact that it would indicate putting a third function under Lewis's wing implies this must be prevented.

Action Plan.
Lewis will certainly take over the function of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Manufacturing function will stay component of marketing under advertising feature.

Lewis will separate herself from operations.

A democratic management design with staff member empowerment will certainly be utilized in advertising and marketing department.

Open up door plan and also focus on cross department communication will certainly be aimed at getting rid of disharmony.

Backup plan.

If the combination does not exercise as prepared, a contingency strategy would certainly follow which would certainly separate the production function from the advertising and marketing function to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the marketing division without an SVP. Because case the manufacturing function will definitely be divided by putting it under an SVP production.