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Prime Micro Inc Case Study Solution

Background and Facts

Prime Micro Inc a workplace materials store for tiny and average sized businesses has just recently been associated with planning for a merging with its rival Residence Deport, which has actually impacted efficiency levels in departmentswith the elderly manager involved in lawful difficulties put forth by the federal Trade Commission. With the Advertising and marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the duty in the near future. With challenges in the type of a prospective social change as well as low staff member morale, the organization wants a full reengineering initiative at the marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The potential cultural change at the marketing division of Prime Micro Inc is boosting uncertainty in the working environment leading to different difficulties for the Jeannie Lewis that would 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 because Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Profession Payment's intervention at the same time. Provided the fact that the shop has an international visibility with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these nations might have the ability to affect performance or tactical objectives. Federal Trade Payment's antitrust suit versus the merging occupied important time of the company's elderly management suggesting that 'political' factors can have major effects for a global business.

Economic Factors: Economic factors such as the emergence of small companies in the worldwide situation suggest that Prime Micro Inc is thriving in an atmosphere where there is possible growth of companies. Truth that shop customers are mainly looking for workplace supplies for home offices suggests that the market has an increasing fad of business owners and house based services.

Social factors: Social fads in the economic climate show that customers are looking for ease as well as eye-catching prices. Marketing research shows how the client for Prime Micro Inc lacks awareness regarding locating services which can supply a mix of comfort as well as low costs.

Technical factors: Innovation plays a crucial role in Prime Micro Inc's company technique especially as the organization is piloting Modern technology centers which would certainly use innovation sales and assistance in the type of memory upgrades, outer setups. (Recap of PARASITE in appendix 2).

OB Issues and also Symptoms.

A number of underlying Business Actions concerns can be seen in Prime Micro Inc's case as highlighted in this area.

Uneasiness concerning cultural adjustment: There is worry about a cultural adjustment that would happen when Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with most of the personnel already showing discontent over this prospective step. This anticipated change has actually developed stress and anxiety in the workplace which has been coupled with the past tension of preparing the firm for a prospective merger with House Deport.
Pest Analysis
Demanding Job Atmosphere for Newcomers: There is scarcity of employees that can match the difficult atmosphere of a busy organization. Not just does this lead to trouble in discovering the ideal people, it puts tension on new hires as can not endure the rate and also stress that the company anticipates them to bear.

Dual Coverage Lines: Beginners find this organizational society difficult and also difficult to cope with specifically as populated line connections are suggested to be weaker generally and also objective setup as well as performance assessment is still done by the solid line supervisor. This indicates that beginners can lose clarity concerning their particular duties and also purposes specifically as populated line coverage does not keep them in straight communication with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had actually been hypothesized that the latter would take Krasnow's setting came as an impact to her spirits. Lewis may have been qualified as well as appropriate for the work but the fact that Kransnow's separation would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Work Instability: Worry and also insecurity can be identified as two major issues that Lewis would be dealing with especially as the merger has currently be cancelled as well as two elderly execs of the advertising and marketing department would be leaving. The whole obligation of the department would be dropping on Lewis's shoulders that would certainly not simply be in charge of brining regarding a social adjustment yet would likewise need to prove herself in her brand-new duty.

Incompatible Management Style of Leader: Lewis's monitoring style as well as its conflict with the advertising and marketing division's role can also be seen as an OB obstacle specifically as she has been utilized to managing problems in the procedures department where employees are instructed to focus on processes and obtain them right. The marketing department on the various other hand can be viewed as a team of people who are used to being nurtured by Krasnow who concentrated much more on output than processes.

Interdepartmental Arguments: Interdepartmental arguments between 3 departments, advertising and marketing, merchandizing and procedures respectively over the appropriation of the advertising mix can be determined as another OB concern. Although the advertising department does not share the exact same vision as the various other two departments pertaining to the aloocation of the advertising mix twoards promos and advertsing, the merchandizing as well as operations departments do not agree over the marketing mix allotment amongst each other either.

Fragmentation in Advertising And Marketing Department: Disintegration in between the marketing and advertising departments can be recognized as one more OB concern which might require further focus. The truth that the advertising and marketing areas in the advertising and marketing department are separated is preventing both departments from gaining from each various other's experience as well as know-how. Integration of marketing with merchandising and also procedures would end up being harder if the advertising department itself is disintegrated which can be one more possible OB concern.

Prime Micro Inc Analysis

Different theories have been used to clarify the conditions to get further clarity concerning the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers think that staffs are easy and also lazy, have little passion and withstand modification. The difficult version of this theory emphasized threat, limited controls, risks and also punishments. With time it generates low efficiency, subtle sabotage as well as competition (Bargain, 2003). The circumstance at Prime Micro Inc is not completely complying with Concept X, it can be seen that brand-new hires are locating this setting rather difficult which might at some point lead to a higher inclination of the management in the direction of Concept X. As per McGregor's advocated view, which he called Theory Y, the essential job of the administration is to organize organizational conditions to make sure that individuals can achieve their own goals best by routing their efforts in the direction of organizational rewards. If people locate no complete satisfaction in their job, the management would certainly have little option but to rely upon concept X and exterior control (Bargain, 2003). Even while assessing Lewis's monitoring style, concept X may have been suitable in the procedures division to some extent but the Advertising and marketing division would need reliance on Concept Y to get the creativity and originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's worry about bringing harmony between the advertising and marketing as well as advertising division is worried, this would originally lead to conflict as discussed by Bruce Tuckman in his 'Synergy Theory'. By integrating the marketing as well as advertising and marketing division's work, there may be the same initial separate which could lead to the 2nd stage of 'storming' where the groups challenge one another.

Bridges' Shift Version: As per William Bridge's theory (appendix 4), individuals are fairly awkward with modification, which is obvious by the situation at Prime Micro Inc The situation can be seen as a normal course of life if is studied based on Bridge's concept where he describes that individuals undergo 3 phases of transition when they experience change. 'Closing, losing as well as Releasing', The Neutral Area and also 'The New Starting' (Bridges, 2004). When people are presented with change, they get in phase one therefore there might be emotions like unhappiness, uncertainty, aggravation, anger, anxiety, denial and disorientation.The situation at the advertising division of Prime Micro Inc is comparable so Lewis can obtain comfortable with the concept that it is not remarkable behavior. In the 2nd phase, there may be a requirement to link the gap between the brand-new and also old culture so Lewis might have to face this ordeal when Krasnow leaves. There may be reduced spirits and low performance at this stage which should not be taken as a problem. It is throughout this stage that Lewis will need to give assistance to the division to ensure that they can find an orientation. It can be seen exactly how Krasnow has actually already made this change much easier by making Lewis get involved in the department a year before his actual departure. According to Bridges' Design, phase three will produce openness to discovering, High power and dedication as individuals will certainly welcome the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has talks about the significance of 'protection requires as being a lower degree requirement of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel safe and also out of threat' is at the second level of requirements. Before an employee can be made to develop emotionally, he needs to have his 'Physiological 'and also 'Security' needs fulfilled.

SWOT Analysis for Prime Micro Inc Case Study



Implication of Analysis.

The OB analysis has actually looked at different concepts to comprehend just how to cope with the present situation available. The following 3 options have been proposed to assist Lewis deal with the business challenges in the advertising and marketing division. Each of these alternatives has been recommended for alleviating the shift needed to bring the advertising department in accordance with the requirements of the market as well as for making the social change that would follow as soon as the existing leader leaves.

Assimilation of advertising and marketing features. Separating Adverting and Production functions. Assimilation of Advertising And Marketing with Operations.

Assessment of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis during the earlier merger days has know-how in business-to-business advertising along with company and also retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both marketing and also marketing features.

The advantage of this strategy is that it will incorporate both features while minimizing the need for employing an additional source for marketing. Lewis would certainly be heading the advertising and marketing department and in any kind of case her replacement would certainly be required for the present function that she is performing. The negative aspect of this alternative is that outside hiring might produce bitterness from interior personnel who may be considering the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and also Production: Offered the affordable pressures and also high quality job needed from the advertising agency, it is recommended that Lewis should permit the manufacturing unit to be a separate function from the advertising device. Since the majority of advertising agencies had these two functions as separate units, it makes more feeling to adhere to the standard. Both features may be able to focus on their core turns on a lot more successfully. Nonetheless, the drawback of this approach would be that additional costs would need to be birthed for establishing separate manufacturing features. Along with this, a manufacturing head might have to be hired which can increase expenses for the organization.

Assimilation of Marketing with Operations: Given that Lewis is currently taking treatment of the advertising and marketing and operations departments all at once; it makes feeling to integrate the two features considering that she has been successfully taking treatment of both ends. The reality that Lewis has to adapt her management style for the advertising division recommends that these 2 divisions would be culturally varied.

Suggestion.



An analysis of the 3 choices shows that assimilation of advertising and also procedures would certainly not be a viable action due to the large distinctions between the two departments regardless of the truth that presently Lewis is managing both. While separation of the production feature might have been a positive step for the advertising and marketing department, the fact that it would certainly mean placing a 3rd feature under Lewis's wing suggests this should be avoided.

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

Marketing and advertising features would be merged.

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

Production function will continue to be component of marketing under marketing function.

Lewis will separate herself from operations.

A democratic leadership design with worker empowerment will be utilized in advertising and marketing division.

Open door plan as well as emphasis on cross department communication will certainly be focused on removing dissonance.

Contingency strategy.

If the assimilation does not work out as planned, a contingency strategy would adhere to which would certainly divide the manufacturing feature from the advertising and marketing function to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing division without an SVP. In that case the production function will definitely be divided by placing it under an SVP production.