Preem A Case Study Analysis


Home >> Harvard >> Preem A >>

Preem A Case Study Solution

Background and Facts

Preem A a workplace supplies store for small as well as medium sized businesses has just recently been associated with preparing for a merging with its competitor Home Deport, which has actually influenced effectiveness levels in departmentswith the senior supervisor involved in lawful issues presented by the federal Trade Compensation. With the Advertising Head advancing the news of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the duty in the near future. With challenges in the form of a potential cultural adjustment and reduced worker spirits, the company wants a total reengineering effort at the advertising and marketing division.

Problem Statement

The prospective cultural modification at the advertising and marketing department of Preem A is increasing uncertainty in the working environment leading to numerous challenges 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 role in impacting tactical decisions considering that Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Profession Commission's intervention in the process. Provided the truth that the store has an international visibility with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these countries may have the ability to impact efficiency or calculated goals. Federal Trade Compensation's antitrust suit against the merging used up valuable time of the company's elderly administration recommending that 'political' factors can have serious effects for an international company.

Economic Factors: Economic factors such as the development of local business in the worldwide scenario recommend that Preem A is flourishing in an atmosphere where there is potential growth of services. Truth that store customers are primarily looking for office materials for residence workplaces recommends that the market has an increasing fad of business owners and house based companies.

Social factors: Social fads in the economic climate reveal that customers are searching for convenience along with attractive costs. Market research shows how the customer for Preem A lacks recognition concerning finding options which can use a combination of comfort as well as inexpensive.

Technological factors: Technology plays a vital duty in Preem A's service approach especially as the company is piloting Modern technology centers which would certainly use innovation sales and also assistance in the kind of memory upgrades, outer installments. (Summary of PARASITE in appendix 2).

OB Issues and also Manifestations.

Several underlying Organizational Actions concerns can be seen in Preem A's case as highlighted in this section.

Apprehensions concerning cultural change: There is worry about a cultural adjustment that would take place when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with the majority of the employee currently showing discontent over this prospective relocation. This expected modification has actually created stress in the workplace which has actually been paired with the previous tension of preparing the company for a potential merging with House Deport.

Stressful Work Atmosphere for Newcomers: There is scarcity of employees that can match the demanding environment of a fast-paced company. Not just does this result in trouble in discovering the ideal people, it places tension on brand-new hires as can not endure the pace and stress that the company anticipates them to bear.

Dual Reporting Lines: Newbies find this business society difficult as well as challenging to handle particularly as dotted line connections are suggested to be weaker as a whole and objective setup and also efficiency examination is still done by the strong line manager. This means that newbies could shed clearness regarding their particular duties and also purposes specifically as populated line coverage does not maintain them in straight communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles although it had actually been guessed that the last would certainly take Krasnow's position came as a blow to her morale. Lewis may have been capable and appropriate for the work however the truth that Kransnow's separation would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Work Insecurity: Concern and also insecurity can be determined as 2 major problems that Lewis would be dealing with particularly as the merging has actually currently be terminated and 2 senior execs of the advertising and marketing department would be leaving. The entire duty of the department would certainly be falling on Lewis's shoulders who would certainly not just supervise of brining about a social adjustment yet would likewise need to confirm herself in her new duty.

Incompatible Monitoring Design of Leader: Lewis's administration style and also its conflict with the advertising and marketing division's function can likewise be seen as an OB difficulty especially as she has actually been made use of to handling concerns in the procedures division where personnel are taught to concentrate on procedures and obtain them. The advertising department on the various other hand can be viewed as a team of people who are made use of to being supported by Krasnow that focused extra on result than procedures.

Interdepartmental Disagreements: Interdepartmental differences between 3 departments, advertising, merchandizing and also procedures specifically over the appropriation of the marketing mix can be recognized as another OB issue. The marketing division does not share the same vision as the other two departments concerning the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and also procedures departments do not concur over the advertising and marketing mix appropriation among one another either.

Fragmentation in Advertising Department: Disintegration in between the marketing and advertising divisions can be determined as one more OB issue which can require further interest. The fact that the advertising and marketing areas in the marketing division are separated is preventing both departments from getting from each various other's experience and also proficiency. Combination of advertising with merchandising and operations would come to be more difficult if the marketing division itself is disintegrated which can be another possible OB worry.

Preem A Analysis

Numerous theories have actually been made use of to explain the situations to get more clearness regarding the situation available.

McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that juniors are passive as well as careless, have little aspiration as well as withstand change. The tough version of this concept stressed threat, limited controls, dangers as well as penalties. In time it generates reduced performance, subtle sabotage and rivalry (Deal, 2003). Although the scenario at Preem A is not totally following Theory X, it can be seen that new hires are finding this setting rather demanding which might at some point lead to a higher inclination of the administration in the direction of Concept X. Based on McGregor's advocated sight, which he called Theory Y, the essential job of the monitoring is to set up business problems so that people can achieve their own goals best by routing their efforts towards business rewards. If people locate no complete satisfaction in their work, the administration would certainly have little choice however to depend on theory X and external control (Bargain, 2003). Also while evaluating Lewis's management style, concept X might have appropriated in the operations department to some extent but the Advertising division would call for dependence on Theory Y so as to get the creative thinking and also creativity from the groups.

Tuckman's Team effort Concept: As far as Lewis's problem regarding bringing harmony in between the marketing and advertising division is worried, this would at first lead to contrast as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, during the first stage of group growth, people might not bond, as they are busy discovering their area in the team. By combining the marketing and advertising department's job, there may coincide initial disconnect which might result in the second stage of 'storming' where the groups test one another. It is only throughout the 3rd phase or 'norming' when they would come with each other to share suggestions prior to the group can bring about harmony in the fourth phase 'performing'.

Bridges' Shift Version: According To William Bridge's concept (appendix 4), people are rather uncomfortable with change, which is apparent by the situation at Preem A The circumstance can be seen as a normal training course of life if is studied according to Bridge's theory where he discusses that people experience three stages of transition when they experience adjustment. 'End, losing and also Releasing', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When individuals are presented with modification, they enter stage one and so there may be feelings like despair, uncertainty, irritation, rage, fear, rejection and also disorientation.The circumstance at the marketing division of Preem A is similar so Lewis can obtain comfy with the idea that it is not remarkable actions. In the second phase, there may be a requirement to connect the void between the new and also old society so Lewis may have to face this ordeal as soon as Krasnow leaves. There may be low spirits and also low performance at this phase which need to not be taken as a trouble. It is throughout this stage that Lewis will certainly need to offer assistance to the department to make sure that they can discover an orientation. It can be seen just how Krasnow has actually already made this change less complicated by making Lewis get associated with the division a year before his real separation. As per Bridges' Version, phase 3 will produce openness to learning, High energy and also dedication as individuals will welcome the modification (Bridges, 2004).

Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has talks about the relevance of 'safety and security needs as being a reduced level demand of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel safe and also out of risk' is at the second level of needs. Before an employee can be made to establish psychologically, he requires to have his 'Physiological 'and 'Safety and security' requires met.

SWOT Analysis for Preem A Case Study

Implication of Analysis.

The OB analysis has actually checked out numerous concepts to understand exactly how to handle the existing scenario available. The complying with 3 alternatives have been suggested to assist Lewis handle the organizational challenges in the advertising division. Each of these choices has actually been proposed for relieving the change required to bring the advertising and marketing division according to the demands of the market as well as for making the social modification that would certainly follow when the existing leader leaves.

Integration of advertising and marketing functions. Dividing Adverting and also Production functions. Assimilation of Advertising And Marketing with Procedures.

Analysis of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merger days has experience in business-to-business marketing along with firm and retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both advertising and also advertising features.

The benefit of this strategy is that it will certainly integrate both features while minimizing the demand for employing an added resource for advertising and marketing. Lewis would certainly be heading the advertising department and also in any case her substitute would be required for the current role that she is performing. The downside of this choice is that external hiring might cause resentment from inner personnel that might be looking at the position of EVP after Lewis takes over Krasnow's placement.

Separating Adverting as well as Manufacturing: Provided the competitive stress and high quality job required from the marketing firm, it is recommended that Lewis should enable the manufacturing unit to be a different function from the advertising system. Given that the majority of advertising firms had these two functions as separate systems, it makes even more feeling to follow the standard.

Combination of Advertising with Procedures: Given that Lewis is currently taking care of the advertising and marketing as well as procedures departments at the same time; it makes sense to integrate the 2 functions given that she has actually been successfully taking care of both ends. The reality that Lewis has to adapt her management design for the advertising division suggests that these two departments would certainly be culturally diverse.


An analysis of the three options shows that assimilation of advertising and marketing and procedures would certainly not be a practical relocation due to the huge differences between the 2 divisions despite the fact that currently Lewis is dealing with both. While splitting up of the manufacturing feature might have been a favorable action for the marketing department, the reality that it would certainly indicate putting a 3rd function under Lewis's wing suggests this must be avoided.

Action Strategy.

Lewis will certainly take control of the duty of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Production feature will certainly stay component of marketing under advertising and marketing feature.

Lewis will separate herself from procedures.

An autonomous management style with employee empowerment will certainly be used in marketing division.

Open up door plan as well as emphasis on cross departmental interaction will be targeted at getting rid of discord.

Backup strategy.

If the integration does not work out as prepared, a backup plan would certainly adhere to which would separate the production feature from the advertising feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising and marketing division without an SVP. In that case the production feature will definitely be divided by positioning it under an SVP production.