Prime Micro Inc Case Study Help


Home >> Harvard >> Prime Micro Inc >>

Prime Micro Inc Case Study Analysis

Background and Facts

Prime Micro Inc a workplace supplies retailer for little as well as medium sized organisations has actually just recently been involved in planning for a merging with its competitor House Deport, which has affected efficiency degrees in departmentswith the senior supervisor involved in lawful issues put forth by the government Profession Compensation. With the Advertising 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 role in the near future. With obstacles in the type of a potential social modification and also low worker morale, the organization requires a total reengineering initiative at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The prospective social adjustment at the advertising and marketing division of Prime Micro Inc is enhancing uncertainty in the workplace bring about numerous obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting calculated decisions considering that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Compensation's treatment while doing so. Provided the truth that the shop has a worldwide presence with branches in UK, USA, Canada as well as Germany, political factors in each of these nations might be able to impact performance or critical objectives. Federal Trade Commission's antitrust fit versus the merging used up valuable time of the company's elderly administration recommending that 'political' factors can have serious implications for an international company.

Economic Factors: Economic factors such as the appearance of small businesses in the global circumstance recommend that Prime Micro Inc is thriving in an environment where there is prospective development of companies. Reality that store customers are mainly looking for workplace materials for residence workplaces recommends that the market has a rising fad of entrepreneurs and also residence based organisations.

Social factors: Social fads in the economic situation reveal that consumers are seeking benefit along with appealing costs. Market research shows how the customer for Prime Micro Inc does not have recognition about discovering services which can use a combination of ease and also low costs.

Technological factors: Technology plays a crucial role in Prime Micro Inc's business method specifically as the company is piloting Modern technology facilities which would supply technology sales as well as assistance in the form of memory upgrades, peripheral installations. (Summary of PEST in appendix 2).

OB Issues and also Effects.

Numerous underlying Organizational Actions problems can be seen in Prime Micro Inc's case as highlighted in this section.

Worries about cultural adjustment: There is uneasiness about a cultural change that would take place when Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising And Marketing with the majority of the team member currently showing discontent over this potential move. This expected modification has produced stress and anxiety in the office which has actually been coupled with the past tension of preparing the company for a prospective merging with House Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is scarcity of workers that can match the difficult environment of a hectic organization. Not just does this bring about problem in locating the right individuals, it puts stress and anxiety on brand-new hires as can not hold up against the rate as well as pressure that the company expects them to birth.

Twin Reporting Lines: Newbies find this organizational culture troublesome as well as challenging to deal with specifically as dotted line partnerships are implied to be weaker generally and objective setup and also efficiency examination is still done by the strong line manager. This suggests that beginners can lose clarity regarding their corresponding functions and objectives particularly as dotted line coverage does not keep them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been hypothesized that the latter would certainly take Krasnow's position came as an impact to her spirits. Lewis may have been capable and also suitable for the work but the truth that Kransnow's separation would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from services.

Fear & Work Instability: Concern as well as instability can be recognized as two major issues that Lewis would be managing particularly as the merger has actually now be terminated and also two senior execs of the advertising and marketing division would certainly be leaving. The whole duty of the division would be dropping on Lewis's shoulders who would certainly not simply supervise of brining concerning a cultural adjustment yet would additionally need to confirm herself in her new duty.

Incompatible Administration Style of Leader: Lewis's monitoring style as well as its incompatibility with the advertising department's function can likewise be viewed as an OB challenge specifically as she has been used to taking care of concerns in the operations department where employees are taught to concentrate on processes as well as get them right. The advertising division on the various other hand can be viewed as a team of people that are utilized to being supported by Krasnow that focused extra on result than procedures.

Interdepartmental Arguments: Interdepartmental arguments in between 3 divisions, advertising, merchandizing as well as operations specifically over the appropriation of the advertising and marketing mix can be recognized as another OB issue. Although the advertising department does not share the same vision as the various other two departments relating to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and procedures divisions do not agree over the advertising and marketing mix allotment among each other either.

Disintegration in Advertising And Marketing Department: Fragmentation between the advertising and marketing departments can be identified as another OB concern which can require further attention. The reality that the advertising and marketing sections in the advertising division are separated is protecting against both departments from gaining from each various other's experience as well as proficiency. Integration of advertising with retailing and procedures would end up being more difficult if the advertising and marketing division itself is disintegrated which can be one more potential OB worry.

Prime Micro Inc Analysis

Numerous theories have actually been utilized to explain the situations to get additional clarity concerning the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors think that staffs are passive as well as lazy, have little passion and also resist modification. The circumstance at Prime Micro Inc is not entirely following Theory X, it can be seen that brand-new hires are locating this environment rather demanding which might at some point lead to a greater disposition of the management in the direction of Theory X. Also while examining Lewis's administration style, concept X may have been appropriate in the operations department to some extent however the Advertising and marketing division would certainly call for dependence on Theory Y in order to obtain the creative thinking as well as originality from the teams.

Tuckman's Teamwork Theory: As much as Lewis's problem regarding bringing consistency between the marketing as well as marketing division is concerned, this would originally lead to conflict as talked about by Bruce Tuckman in his 'Team effort Concept'. By incorporating the advertising and marketing and also advertising department's work, there may be the very same initial detach which can lead to the 2nd stage of 'storming' where the teams test one another.

Bridges' Shift Design: As per William Bridge's concept (appendix 4), people are fairly uncomfortable with adjustment, which is noticeable by the circumstance at Prime Micro Inc The scenario can be viewed as a normal program of life if is researched based on Bridge's concept where he explains that people go through three stages of shift when they experience adjustment. 'Ending, losing and Letting go', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When people exist with modification, they go into stage one therefore there might be feelings like despair, uncertainty, irritation, anger, anxiety, denial as well as disorientation.The circumstance at the marketing division of Prime Micro Inc is similar so Lewis can obtain comfy with the concept that it is not phenomenal behavior. In the second stage, there might be a need to link the gap between the new and also old culture so Lewis may have to face this challenge as soon as Krasnow leaves. There might be low morale and reduced efficiency at this phase which should not be taken as an obstacle. It is throughout this phase that Lewis will have to give support to the division to make sure that they can locate a sense of direction. It can be seen how Krasnow has already made this shift simpler by making Lewis get involved in the division a year prior to his real separation. As per Bridges' Design, stage 3 will produce openness to understanding, High energy as well as commitment as individuals will accept the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has discusses the value of 'protection needs as being a reduced degree requirement of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel safe and secure as well as out of risk' is at the second degree of demands. Before an employee can be made to develop mentally, he requires to have his 'Physical 'and 'Security' requires met.

SWOT Analysis for Prime Micro Inc Case Study

Effects of Analysis.

The OB analysis has taken a look at different concepts to comprehend how to handle the current circumstance at hand. The complying with 3 choices have actually been recommended to help Lewis deal with the organizational challenges in the advertising and marketing division. Each of these alternatives has actually been suggested for reducing the shift required to bring the marketing division in line with the demands of the market as well as for making the cultural modification that would comply with as soon as the current leader leaves.

Integration of marketing and advertising functions. Dividing Adverting as well as Manufacturing features. Combination of Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merger days has experience in business-to-business advertising along with firm as well as retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to deal with both advertising and marketing and advertising functions.

The benefit of this strategy is that it will certainly incorporate both features while decreasing the requirement for hiring an added source for marketing. In addition to this, Lewis would be heading the advertising and marketing division and in any case her substitute would certainly be required for the existing duty that she is doing. The negative aspect of this choice is that external hiring might bring about bitterness from internal workers who might be looking at the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Manufacturing: Given the affordable pressures as well as excellent quality work called for from the advertising agency, it is recommended that Lewis must allow the production unit to be a different feature from the marketing system. Because most advertising agencies had these two functions as different units, it makes even more sense to adhere to the norm. Both features might be able to focus on their core triggers much more successfully. Nonetheless, the drawback of this approach would certainly be that added prices would have to be borne for establishing separate production features. In addition to this, a production head might need to be hired which might enhance overheads for the organization.

Combination of Marketing with Workflows: Since Lewis is already taking care of the advertising and marketing and also operations departments at the same time; it makes sense to incorporate both features considering that she has actually been successfully dealing with both ends. The fact that the two departments already have significant differences over allotment of sources recommends that this integration might be able to bring about consistency particularly as Lewis would be heading both ends.However there are numerous downsides of this move particularly as it would certainly put excessive concern over Lewis's shoulders. The truth that Lewis needs to adjust her management style for the marketing division recommends that these 2 departments would be culturally diverse. Lewis may not be able to use one type of management style to both departments which could result in inefficiency in either one of the 2 features.


An assessment of the 3 options indicates that assimilation of advertising and marketing and also procedures would not be a practical relocation due to the vast differences between the 2 divisions regardless of the reality that presently Lewis is dealing with both. While separation of the production function may have been a favorable step for the advertising department, the truth that it would certainly mean putting a 3rd function under Lewis's wing indicates this need to be prevented.

Activity Plan.
Lewis will certainly take control of the function of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Manufacturing function will certainly stay component of advertising under advertising function.

Lewis will certainly divide herself from procedures.

A democratic leadership design with worker empowerment will be made use of in advertising and marketing division.

Open door policy as well as emphasis on cross department interaction will certainly be targeted at getting rid of dissonance.

Contingency plan.

If the combination does not exercise as prepared, a contingency strategy would certainly follow which would certainly divide the production feature from the advertising function to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the marketing division without an SVP. In that case the production function will absolutely be divided by placing it under an SVP production.