Menu

Precision Parts Inc A Case Study Analysis

CASE SOLUTION

Home >> Harvard >> Precision Parts Inc A >>

Precision Parts Inc A Case Study Solution

Background and Facts

Precision Parts Inc A a workplace supplies store for small and average sized organisations has recently been involved in planning for a merger with its competitor Home Deport, which has affected performance degrees in departmentswith the elderly supervisor associated with legal problems presented by the federal Trade Compensation. With the Advertising and marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the near future. With challenges in the type of a potential social modification and also low employee morale, the organization requires a total reengineering initiative at the advertising and marketing department.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising and marketing department of Precision Parts Inc A is increasing unpredictability in the working environment causing 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 strategic choices given that Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Profession Commission's treatment in the process. Given the reality that the shop has a global presence with branches in UK, U.S.A., Canada and Germany, political consider each of these nations may be able to affect efficiency or critical objectives. Federal Trade Compensation's antitrust fit versus the merging used up useful time of the company's elderly administration recommending that 'political' factors can have significant effects for a global company.

Economic Factors: Financial factors such as the development of small companies in the international situation suggest that Precision Parts Inc A is thriving in a setting where there is prospective growth of companies. Reality that shop customers are mostly looking for workplace materials for residence offices recommends that the market has a rising pattern of entrepreneurs as well as residence based services.

Social factors: Social fads in the economic climate show that clients are searching for ease in addition to attractive costs. Market research shows how the customer for Precision Parts Inc A does not have recognition regarding finding services which can offer a mix of convenience as well as inexpensive.

Technical factors: Innovation plays a vital duty in Precision Parts Inc A's organisation strategy specifically as the company is piloting Innovation facilities which would use technology sales as well as assistance in the kind of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and Effects.

Numerous underlying Business Behavior issues can be seen in Precision Parts Inc A's case as highlighted in this section.

Worries concerning social change: There is apprehension regarding a social change that would occur as soon as Todd Krasnow leaves from his setting as the Exec Vice President of Advertising And Marketing with the majority of the employee currently revealing unhappiness over this potential relocation. This predicted change has actually produced stress and anxiety in the workplace which has been coupled with the previous tension of preparing the firm for a possible merging with House Deport.
Pest Analysis
Difficult Task Setting for Newcomers: There is scarcity of employees that can match the stressful setting of a busy company. Not just does this cause problem in discovering the appropriate individuals, it puts tension on brand-new hires as can not withstand the speed and pressure that the company anticipates them to birth.

Dual Coverage Lines: Novices discover this business society difficult as well as tough to cope with specifically as populated line connections are indicated to be weaker in general as well as unbiased setting as well as efficiency analysis is still done by the strong line manager. This indicates that newbies can shed clearness about their respective roles and also objectives particularly as dotted line coverage does not keep them in direct communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had been hypothesized that the latter would take Krasnow's placement came as a blow to her spirits. Lewis may have been qualified and also appropriate for the task yet the reality that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Anxiety & Work Insecurity: Concern as well as instability can be identified as two major problems that Lewis would be dealing with especially as the merging has now be terminated and two elderly executives of the marketing department would be leaving. The whole responsibility of the division would be dropping on Lewis's shoulders who would certainly not just be in charge of brining regarding a social change yet would also have to show herself in her new function.

Inappropriate Management Design of Leader: Lewis's management design and also its conflict with the advertising department's duty can likewise be seen as an OB challenge particularly as she has actually been utilized to taking care of issues in the operations department where employees are educated to concentrate on procedures and get them right. The advertising department on the various other hand can be seen as a team of individuals who are used to being nurtured by Krasnow who concentrated much more on output than procedures.

Interdepartmental Arguments: Interdepartmental arguments between three divisions, advertising, merchandizing and also operations respectively over the allowance of the advertising mix can be recognized as an additional OB issue. Although the advertising division does not share the very same vision as the other 2 divisions concerning the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and procedures divisions do not concur over the advertising mix allotment among one another either.

Disintegration in Advertising Department: Disintegration between the advertising and marketing departments can be identified as an additional OB concern which can need further attention. The truth that the marketing and advertising areas in the advertising and marketing department are disconnected is protecting against both divisions from obtaining from each other's experience as well as knowledge. Assimilation of marketing with merchandising and operations would certainly become harder if the advertising and marketing department itself is degenerated which can be another prospective OB worry.

Precision Parts Inc A Analysis

Numerous concepts have been made use of to discuss the situations to get further quality regarding the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors think that juniors are easy and also lazy, have little aspiration as well as resist adjustment. The hard version of this theory emphasized threat, tight controls, dangers and also punishments. With time it generates low performance, refined sabotage and also competition (Offer, 2003). The circumstance at Precision Parts Inc A is not totally complying with Theory X, it can be seen that new hires are discovering this environment rather difficult which may ultimately lead to a greater disposition of the administration towards Theory X. According to McGregor's advocated view, which he called Concept Y, the essential job of the administration is to arrange business problems so that individuals can attain their very own objectives best by guiding their efforts in the direction of organizational rewards. If people locate no fulfillment in their job, the monitoring would certainly have little option however to rely on theory X as well as outside control (Deal, 2003). Even while examining Lewis's monitoring style, theory X might have been suitable in the operations department somewhat but the Marketing division would call for dependence on Concept Y in order to get the creativity as well as originality from the teams.

Tuckman's Team effort Concept: As far as Lewis's problem about bringing consistency between the advertising and marketing as well as advertising and marketing department is concerned, this would initially lead to clash as reviewed by Bruce Tuckman in his 'Teamwork Concept'. By integrating the marketing and marketing department's job, there may be the same preliminary separate which might lead to the 2nd phase of 'storming' where the teams challenge one another.

When individuals are provided with change, they enter stage one as well as so there may be feelings like unhappiness, uncertainty, disappointment, rage, anxiety, rejection and disorientation.The circumstance at the marketing division of Precision Parts Inc A is similar so Lewis can obtain comfy with the idea that it is not extraordinary behavior. It is throughout this stage that Lewis will have to offer assistance to the department so that they can discover a sense of direction. It can be seen exactly how Krasnow has actually already made this change easier by making Lewis obtain involved in the division a year prior to his actual departure.
Vrio Analysis
Maslow's Requirement hierarchy: The OB concern pertaining to instability at the office has been set off firstly by the modification in administration and also secondly by the fact that the merger will no longer be started. Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has talks about the significance of 'security needs as being a lower level requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel safe and secure and also out of danger' goes to the 2nd degree of requirements. Prior to a worker can be made to establish mentally, he needs to have his 'Physical 'and 'Safety' needs fulfilled. This shows that unless the personnel are made to feel safe and secure regarding their current work status in Precision Parts Inc A they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Precision Parts Inc A Case Study



Effects of Analysis.

The OB analysis has actually considered numerous theories to understand just how to deal with the current situation handy. The complying with three options have actually been proposed to help Lewis take care of the organizational challenges in the advertising and marketing department. Each of these options has been proposed for reducing the change needed to bring the marketing division in accordance with the demands of the marketplace and for making the social change that would comply with once the present leader leaves.

Integration of marketing and advertising functions. Dividing Adverting as well as Production features. Assimilation of Advertising with Operations.

Evaluation of Alternatives.

Combination of Advertising & Advertising And Marketing Functions: The in-house advertising company of Precision Parts Inc A is already strength for the organization in regards to conserving up on overheads connected to marketing and promotion. Since no brand-new recruitment has actually been done after Bridget Cole's departure with the coverage line being straight designated to Krasnow for the advertising function, this is a favorable possibility for integrating the marketing and advertising features. Judith Shapiro that has earlier been interviewed by Lewis during the earlier merger days has know-how in business-to-business marketing along with company as well as retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to manage both marketing and advertising features.

The benefit of this technique is that it will certainly incorporate the two features while minimizing the need for working with an additional resource for advertising. Along with this, Lewis would certainly be heading the marketing division and also regardless her replacement would be required for the present duty that she is carrying out. The negative aspect of this option is that exterior hiring might cause resentment from inner workers who might be looking at the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Production: Offered the competitive pressures and also premium quality job needed from the advertising agency, it is suggested that Lewis should permit the production device to be a different feature from the advertising unit. Since the majority of advertising agencies had these two functions as different devices, it makes more feeling to follow the norm. In addition to this, both functions might have the ability to focus on their core activates a lot more efficiently. Nonetheless, the disadvantage of this strategy would certainly be that additional costs would certainly need to be borne for establishing separate production functions. In addition to this, a production head may have to be worked with which might raise overheads for the organization.

Integration of Advertising with Operations: Since Lewis is currently caring for the advertising and marketing as well as procedures divisions simultaneously; it makes good sense to incorporate the two features considering that she has actually been effectively dealing with both ends. The fact that the two divisions already have major distinctions over allowance of resources recommends that this integration might be able to produce consistency specifically as Lewis would certainly be heading both ends.However there are different disadvantages of this step especially as it would place way too much worry over Lewis's shoulders. The fact that Lewis needs to adapt her management design for the marketing department recommends that these 2 departments would certainly be culturally varied. Lewis may not be able to use one kind of management style to both divisions which can result in ineffectiveness in either one of the two functions.

Referral.



An evaluation of the 3 options indicates that combination of advertising as well as operations would not be a possible step due to the large differences between the two departments despite the fact that currently Lewis is taking care of both. While separation of the production function may have been a desirable relocation for the marketing division, the fact that it would certainly mean putting a third function under Lewis's wing implies this should be stayed clear of also. The integration of the marketing division is the very best alternative in terms of getting the ideal arise from the division. An activity plan for this alternative is talked about below.

Activity Strategy.
Recommendation
Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would be merged.

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

Manufacturing feature will certainly continue to be part of advertising and marketing under marketing feature.

Lewis will certainly divide herself from operations.

A democratic leadership style with staff member empowerment will be utilized in advertising division.

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

Backup plan.

If the combination does not work out as prepared, a backup strategy would adhere to which would certainly separate the manufacturing feature from the marketing function to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising division without an SVP. In that case the manufacturing function will definitely be divided by placing it under an SVP production.