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Piedmont University Case Study Solution

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Background and Facts

Piedmont University a workplace materials merchant for small and moderate sized services has actually recently been involved in preparing for a merger with its rival Home Deport, which has actually influenced efficiency levels in departmentswith the senior manager involved in legal problems presented by the government Trade Payment. With the Advertising and marketing Head advancing the news of his departure from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the function in the near future. With challenges in the form of a possible cultural change and also low worker spirits, the company requires a total reengineering initiative at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural modification at the marketing division of Piedmont University is boosting uncertainty in the workplace leading to different obstacles for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting strategic decisions since Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Trade Payment's treatment at the same time. Provided the truth that the shop has a worldwide existence with branches in UK, U.S.A., Canada and Germany, political consider each of these countries may have the ability to affect efficiency or tactical goals. Federal Trade Compensation's antitrust suit against the merging used up useful time of the organization's senior management recommending that 'political' factors can have severe effects for an international business.

Economic Factors: Financial factors such as the introduction of local business in the international situation suggest that Piedmont University is flourishing in an atmosphere where there is prospective growth of services. In addition to this, reality that store consumers are mainly seeking office materials for office recommends that the marketplace has a rising fad of entrepreneurs as well as home services.

Social factors: Social patterns in the economic climate show that customers are seeking comfort in addition to attractive rates. Marketing research demonstrates how the consumer for Piedmont University does not have understanding about finding services which can supply a combination of convenience and also inexpensive.

Technical factors: Innovation plays a crucial duty in Piedmont University's service approach specifically as the organization is piloting Modern technology centers which would offer innovation sales as well as assistance in the form of memory upgrades, peripheral setups. (Summary of PARASITE in appendix 2).

OB Issues as well as Manifestations.

Several underlying Organizational Habits concerns can be seen in Piedmont University's case as highlighted in this section.

Apprehensions concerning social change: There is worry regarding a cultural modification that would occur once Todd Krasnow leaves from his setting as the Exec Vice President of Advertising with the majority of the personnel already showing discontent over this potential step. This anticipated change has actually produced stress in the workplace which has actually been combined with the previous stress and anxiety of preparing the company for a possible merger with House Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is scarcity of employees that can match the stressful setting of a fast-paced organization. Not just does this lead to problem in discovering the best people, it puts tension on brand-new hires as can not endure the pace as well as stress that the company anticipates them to bear.

Dual Reporting Lines: Novices find this business culture troublesome as well as hard to deal with especially as dotted line connections are implied to be weaker as a whole and also unbiased setup and performance evaluation is still done by the strong line supervisor. This implies that novices could lose quality concerning their particular functions and objectives specifically as populated line reporting does not keep them in direct interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had been hypothesized that the latter would take Krasnow's position came as a strike to her spirits. Lewis may have been capable as well as suitable for the job but the reality that Kransnow's departure would certainly make Coles a straight record to Lewis may have been the reason for Coles' resignation from solutions.

Anxiety & Task Insecurity: Worry as well as insecurity can be determined as two major worries that Lewis would be taking care of particularly as the merger has actually currently be terminated as well as two senior executives of the advertising division would be leaving. The entire duty of the division would be dropping on Lewis's shoulders who would not simply be in charge of brining regarding a social change but would additionally need to verify herself in her new function.

Incompatible Management Design of Leader: Lewis's management design and its conflict with the advertising and marketing department's function can additionally be seen as an OB difficulty particularly as she has actually been made use of to dealing with problems in the operations department where personnel are shown to focus on processes and obtain them right. The advertising division on the various other hand can be seen as a team of people that are utilized to being supported by Krasnow who focused extra on result than processes.

Interdepartmental Differences: Interdepartmental disagreements in between 3 departments, advertising and marketing, merchandizing and also procedures respectively over the allotment of the advertising and marketing mix can be determined as another OB concern. Although the marketing division does not share the same vision as the other two divisions concerning the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing as well as operations departments do not agree over the marketing mix allowance amongst each other either.

Disintegration in Marketing Department: Disintegration between the marketing and advertising divisions can be identified as another OB issue which can require further focus. The truth that the marketing and advertising sections in the marketing department are detached is avoiding both departments from getting from each other's experience and also competence. Integration of marketing with merchandising and operations would certainly become more difficult if the advertising department itself is degenerated which can be another possible OB issue.

Piedmont University Analysis

Different theories have actually been made use of to describe the situations to obtain further clarity concerning the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that subordinates are easy as well as careless, have little passion and also stand up to modification. The circumstance at Piedmont University is not entirely complying with Theory X, it can be seen that new hires are finding this setting rather difficult which might ultimately lead to a higher disposition of the monitoring in the direction of Theory X. Also while evaluating Lewis's management style, concept X might have been suitable in the procedures division to some degree yet the Advertising and marketing division would need dependence on Concept Y in order to get the creative thinking as well as creativity from the groups.

Tuckman's Synergy Theory: As for Lewis's worry concerning bringing consistency in between the advertising and marketing department is concerned, this would at first cause contrast as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's theory displayed in appendix 3, during the initial phase of group advancement, people might not bond, as they are active discovering their location in the group. By integrating the marketing and advertising division's job, there might be the same first detach which could bring about the second stage of 'storming' where the teams challenge one another. It is only during the 3rd stage or 'norming' when they would certainly come with each other to share concepts prior to the group can bring about harmony in the 4th stage 'performing'.

Bridges' Transition Model: As per William Bridge's theory (appendix 4), people are quite unpleasant with modification, which is apparent by the circumstance at Piedmont University The situation can be viewed as a typical program of life if is researched according to Bridge's theory where he describes that individuals go through 3 stages of transition when they experience change. 'End, losing and also Letting go', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When individuals are presented with modification, they get in phase one and so there may be emotions like despair, unpredictability, disappointment, temper, anxiety, rejection and disorientation.The circumstance at the advertising and marketing department of Piedmont University is comparable so Lewis can get comfortable with the suggestion that it is not amazing habits. In the 2nd stage, there may be a need to link the gap in between the brand-new and also old society so Lewis might need to encounter this challenge when Krasnow leaves. There may be reduced spirits as well as reduced efficiency at this stage which must not be taken as a setback. It is throughout this phase that Lewis will certainly have to offer advice to the department to make sure that they can find a sense of direction. It can be seen exactly how Krasnow has already made this change less complicated by making Lewis get associated with the department a year prior to his actual separation. As per Bridges' Design, phase 3 will certainly produce visibility to learning, High power and also commitment as individuals will accept the change (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB problem pertaining to instability at the work environment has actually been triggered to start with by the adjustment in administration as well as secondly by the truth that the merging will no longer be initiated. Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has talks about the relevance of 'protection needs as being a lower level demand of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to feel secure as well as untouched' is at the 2nd degree of demands. Before a staff member can be made to develop emotionally, he requires to have his 'Physiological 'and 'Safety' requires satisfied. This suggests that unless the employees are made to really feel secure regarding their present work standing in Piedmont University they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Piedmont University Case Study



Effects of Analysis.

The OB analysis has checked out numerous concepts to comprehend how to cope with the current situation at hand. The complying with three options have been recommended to assist Lewis manage the organizational challenges in the advertising department. Each of these alternatives has actually been proposed for easing the shift needed to bring the marketing division in line with the demands of the marketplace and for making the social adjustment that would certainly comply with as soon as the current leader leaves.

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

Assessment of Alternatives.

Integration of Advertising And Marketing & Advertising Functions: The internal advertising firm of Piedmont University is already stamina for the company in terms of conserving up on expenses connected to advertising and promotion. Given that no brand-new recruitment has actually been done after Bridget Cole's separation with the coverage line being straight assigned to Krasnow for the marketing feature, this is a beneficial opportunity for integrating the marketing and advertising features. Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merging days has competence in business-to-business advertising and marketing in addition to company and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to manage both marketing and advertising features.

The benefit of this method is that it will integrate both functions while lowering the requirement for working with an added source for marketing. Along with this, Lewis would certainly be heading the marketing division and also in any case her substitute would be required for the present role that she is performing. The drawback of this choice is that exterior hiring might cause bitterness from inner workers who may be considering the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting as well as Manufacturing: Provided the affordable pressures and also premium quality job needed from the ad agency, it is suggested that Lewis should permit the production unit to be a separate function from the advertising and marketing device. Because most advertising agencies had these 2 features as separate units, it makes more sense to adhere to the norm. Both functions might be able to concentrate on their core turns on a lot more successfully. Nevertheless, the drawback of this strategy would certainly be that additional prices would certainly have to be birthed for setting up separate production functions. Along with this, a manufacturing head may need to be employed which can increase expenses for the organization.

Combination of Advertising And Marketing with Workflows: Given that Lewis is already dealing with the advertising as well as operations departments concurrently; it makes good sense to integrate the two features because she has actually been successfully dealing with both ends. The truth that both departments currently have significant differences over allotment of sources suggests that this assimilation might be able to bring about consistency especially as Lewis would certainly be heading both ends.However there are numerous downsides of this move especially as it would certainly put way too much burden over Lewis's shoulders. The reality that Lewis needs to adapt her management style for the advertising and marketing division recommends that these two departments would certainly be culturally diverse. Lewis might not be able to use one type of management style to both divisions which might result in inefficiency in either one of the two features.

Suggestion.



An analysis of the three alternatives indicates that integration of advertising and marketing and procedures would certainly not be a possible step due to the large distinctions in between the two divisions regardless of the truth that presently Lewis is dealing with both. While separation of the manufacturing feature may have been a favorable move for the advertising division, the fact that it would certainly indicate positioning a 3rd function under Lewis's wing indicates this ought to be avoided.

Activity Strategy.
Recommendation
Lewis will take over the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

Judith Shapiro will be employed to take Lewis's place as SVP of advertising and marketing.

Production function will certainly continue to be part of advertising under marketing feature.

Lewis will separate herself from procedures.

An autonomous management style with worker empowerment will be used in advertising and marketing division.

Open up door plan as well as focus on cross department communication will certainly be targeted at getting rid of disharmony.

Contingency strategy.

If the combination does not work out as planned, a backup strategy would follow which would divide the production function from the advertising and marketing function to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the marketing division without an SVP. Because case the manufacturing feature will absolutely be separated by placing it under an SVP manufacturing.