Prestige Telephone Co Chinese Version Case Study Solution


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Prestige Telephone Co Chinese Version Case Study Solution

Background and Facts

Prestige Telephone Co Chinese Version an office products merchant for little and also medium sized companies has actually just recently been involved in planning for a merger with its rival Home Deport, which has actually affected performance degrees in departmentswith the senior manager involved in legal issues put forth by the federal Trade Commission. With the Advertising Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the role in the future. With challenges in the kind of a prospective social adjustment and also reduced staff member morale, the organization requires a complete reengineering initiative at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the marketing department of Prestige Telephone Co Chinese Version is boosting uncertainty in the workplace bring about numerous obstacles for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting strategic choices given that Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Profession Commission's intervention in the process. Given the truth that the store has a global visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries might have the ability to affect performance or tactical goals. Federal Trade Compensation's antitrust suit versus the merger occupied beneficial time of the organization's senior administration suggesting that 'political' factors can have significant ramifications for a worldwide organisation.

Economic Factors: Economic factors such as the emergence of local business in the worldwide scenario recommend that Prestige Telephone Co Chinese Version is prospering in an environment where there is potential development of organisations. In addition to this, fact that store customers are mainly searching for office materials for office suggests that the market has a climbing pattern of business owners as well as home businesses.

Social factors: Social trends in the economic climate reveal that customers are searching for ease along with appealing prices. Marketing research shows how the consumer for Prestige Telephone Co Chinese Version lacks understanding regarding finding solutions which can provide a mix of ease as well as affordable.

Technical factors: Technology plays a vital role in Prestige Telephone Co Chinese Version's company approach especially as the company is piloting Modern technology centers which would supply modern technology sales as well as assistance in the form of memory upgrades, outer installations. (Recap of BUG in appendix 2).

OB Issues and Symptoms.

A number of underlying Business Habits problems can be seen in Prestige Telephone Co Chinese Version's case as highlighted in this area.

Apprehensions regarding social change: There is apprehension regarding a social adjustment that would occur as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising And Marketing with a lot of the personnel already showing discontent over this prospective step. This anticipated change has actually produced stress and anxiety in the workplace which has actually been paired with the previous stress of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is scarcity of personnel that can match the demanding environment of a fast-paced company. Not only does this lead to problem in finding the appropriate individuals, it places stress on new hires as can not endure the rate and also pressure that the organization expects them to bear.

Double Reporting Lines: Newcomers discover this organizational culture cumbersome as well as hard to handle especially as populated line relationships are suggested to be weak as a whole as well as objective setting as well as performance examination is still done by the solid line supervisor. This means that newcomers can shed clarity regarding their corresponding duties as well as objectives especially as dotted line coverage does not maintain them in direct communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles even though it had actually been hypothesized that the latter would take Krasnow's placement came as an impact to her morale. Lewis may have been capable and suitable for the job yet the truth that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from services.

Concern & Task Insecurity: Anxiety and instability can be determined as 2 major issues that Lewis would certainly be dealing with especially as the merging has actually currently be cancelled and two elderly executives of the advertising and marketing department would be leaving. The entire duty of the department would certainly be dropping on Lewis's shoulders who would not just be in charge of brining about a social modification but would certainly likewise need to confirm herself in her brand-new function.

Inappropriate Monitoring Style of Leader: Lewis's monitoring style and its incompatibility with the advertising department's function can additionally be seen as an OB challenge especially as she has actually been used to dealing with issues in the operations division where personnel are taught to focus on processes as well as get them. The advertising division on the various other hand can be seen as a team of individuals who are utilized to being nurtured by Krasnow that concentrated a lot more on outcome than procedures.

Interdepartmental Differences: Interdepartmental differences between three divisions, advertising and marketing, merchandizing and operations specifically over the allowance of the advertising mix can be determined as an additional OB issue. The advertising and marketing department does not share the very same vision as the various other two departments relating to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing as well as operations divisions do not concur over the advertising and marketing mix allowance amongst one another either.

Disintegration in Marketing Division: Disintegration in between the marketing and advertising departments can be determined as another OB issue which might need additional attention. The truth that the marketing and advertising areas in the advertising division are separated is avoiding both divisions from acquiring from each other's experience and expertise. Integration of advertising with retailing and operations would become harder if the marketing division itself is degenerated which can be another prospective OB worry.

Prestige Telephone Co Chinese Version Analysis

Numerous theories have been utilized to discuss the scenarios to obtain additional clearness about the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that staffs are easy and also lazy, have little passion and also stand up to change. The hard version of this concept highlighted coercion, tight controls, risks and punishments. With time it produces low efficiency, subtle sabotage as well as rivalry (Deal, 2003). Although the situation at Prestige Telephone Co Chinese Version is not completely complying with Concept X, it can be seen that new hires are discovering this setting rather stressful which might at some point result in a greater inclination of the management towards Concept X. As per McGregor's advocated view, which he called Concept Y, the vital task of the monitoring is to set up business conditions so that individuals can accomplish their own objectives best by guiding their initiatives in the direction of organizational incentives. If individuals find no contentment in their job, the monitoring would have little selection however to depend on concept X as well as outside control (Offer, 2003). Also while assessing Lewis's administration design, theory X may have been suitable in the procedures division somewhat yet the Advertising division would certainly need dependence on Concept Y to get the creative thinking and also originality from the teams.

Tuckman's Teamwork Concept: As much as Lewis's concern concerning bringing consistency between the advertising and advertising and marketing department is concerned, this would at first lead to contrast as talked about by Bruce Tuckman in his 'Team effort Concept'. By combining the marketing and advertising department's job, there might be the same first detach which might lead to the 2nd phase of 'storming' where the groups challenge one another.

When individuals are provided with modification, they go into stage one and also so there may be feelings like unhappiness, uncertainty, stress, temper, concern, rejection and disorientation.The circumstance at the advertising division of Prestige Telephone Co Chinese Version is comparable so Lewis can get comfortable with the concept that it is not remarkable habits. It is during this phase that Lewis will certainly have to offer advice to the department so that they can discover a feeling of instructions. It can be seen exactly how Krasnow has actually already made this transition much easier by making Lewis get entailed in the division a year prior to his real separation.
Vrio Analysis
Maslow's Demand power structure: The OB problem pertaining to insecurity at the workplace has actually been set off firstly by the change in administration and also second of all by the truth that the merging will no longer be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has reviews the importance of 'protection needs as being a reduced level requirement of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel safe and secure and safe' is at the second level of needs. Before a staff member can be made to create emotionally, he requires to have his 'Physiological 'as well as 'Safety and security' needs satisfied. This shows that unless the personnel are made to really feel protected about their present employment standing in Prestige Telephone Co Chinese Version they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Prestige Telephone Co Chinese Version Case Study

Implication of Analysis.

The OB analysis has taken a look at numerous concepts to comprehend just how to manage the existing scenario handy. The complying with 3 alternatives have been suggested to assist Lewis handle the organizational obstacles in the advertising and marketing division. Each of these choices has been proposed for alleviating the shift needed to bring the advertising department in accordance with the demands of the marketplace and for making the social adjustment that would certainly comply with when the existing leader leaves.

Assimilation of advertising and marketing features. Separating Adverting and Production functions. Integration of Marketing with Procedures.

Evaluation of Alternatives.

Combination of Advertising And Marketing & Advertising And Marketing Functions: The internal marketing firm of Prestige Telephone Co Chinese Version is already stamina for the company in regards to conserving up on overheads connected to marketing and also promo. Because no brand-new employment has actually been done after Bridget Cole's departure with the coverage line being directly appointed to Krasnow for the advertising function, this is a desirable possibility for integrating the advertising and marketing features. Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merger days has knowledge in business-to-business marketing in addition to company and also retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both marketing and advertising features.

The benefit of this approach is that it will incorporate both features while decreasing the demand for working with an additional resource for advertising. Along with this, Lewis would certainly be heading the advertising division and regardless her substitute would be required for the existing duty that she is performing. The drawback of this option is that outside hiring may cause animosity from inner workers that may be eying the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting as well as Manufacturing: Given the affordable stress as well as excellent quality work called for from the ad agency, it is advised that Lewis must permit the manufacturing device to be a different feature from the marketing unit. Since most advertising agencies had these 2 functions as different systems, it makes even more sense to follow the norm. Along with this, both functions might have the ability to focus on their core triggers more successfully. The disadvantage of this approach would be that additional expenses would have to be birthed for establishing up separate production features. In addition to this, a production head might need to be worked with which could boost expenses for the organization.

Combination of Advertising with Procedures: Since Lewis is already taking treatment of the marketing as well as procedures divisions simultaneously; it makes sense to integrate the two functions because she has actually been effectively taking care of both ends. The fact that Lewis has to adjust her management design for the advertising and marketing division suggests that these two departments would certainly be culturally varied.


An examination of the 3 alternatives shows that integration of advertising and operations would certainly not be a practical move as a result of the substantial distinctions in between both departments although that presently Lewis is taking care of both. While splitting up of the production function might have been a positive relocation for the advertising and marketing department, the truth that it would imply placing a third function under Lewis's wing means this should be avoided as well. The combination of the marketing department is the very best alternative in regards to obtaining the optimum results from the department. An action plan for this choice is reviewed listed below.

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

Advertising and Marketing functions would certainly be merged.

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

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

Lewis will divide herself from procedures.

A democratic leadership design with employee empowerment will be used in advertising division.

Open door policy and also emphasis on cross department communication will be aimed at removing disharmony.

Contingency strategy.

If the integration does not exercise as intended, a contingency strategy would certainly follow which would divide the production feature from the advertising and marketing function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising division without an SVP. Because case the production feature will absolutely be separated by putting it under an SVP production.