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Primus Automation Division Case Study Help

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Primus Automation Division Case Study Help

Background and Facts

Primus Automation Division a workplace materials retailer for little and medium sized businesses has actually just recently been involved in preparing for a merging with its rival Residence Deport, which has actually impacted efficiency degrees in departmentswith the elderly manager involved in legal difficulties put forth by the federal Trade Commission. With the Advertising Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the present head of operations has been asked to take the function in the near future. With difficulties in the type of a possible social change as well as reduced employee spirits, the organization needs a total reengineering effort at the advertising and marketing department.

Problem Statement
Porter's 5 Forces Analysis
The prospective social change at the advertising department of Primus Automation Division is boosting unpredictability in the workplace resulting in various difficulties for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting critical decisions because Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Trade Commission's treatment in the process. Offered the fact that the store has an international visibility with branches in UK, UNITED STATES, Canada and Germany, political consider each of these nations might be able to impact performance or critical goals. Federal Profession Commission's antitrust suit versus the merger took up beneficial time of the company's senior monitoring recommending that 'political' factors can have significant ramifications for a worldwide organisation.

Economic Factors: Financial factors such as the appearance of small companies in the worldwide situation suggest that Primus Automation Division is growing in an environment where there is potential development of organisations. Fact that shop customers are mostly looking for workplace supplies for residence offices recommends that the market has a climbing fad of business owners as well as residence based services.

Social factors: Social trends in the economic situation show that clients are seeking comfort as well as eye-catching prices. Marketing research shows how the customer for Primus Automation Division does not have recognition concerning finding solutions which can offer a combination of ease and also inexpensive.

Technical factors: Innovation plays an essential duty in Primus Automation Division's company method especially as the company is piloting Technology centers which would offer technology sales and support in the type of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues as well as Effects.

A number of underlying Organizational Behavior concerns can be seen in Primus Automation Division's case as highlighted in this section.

Concerns about social adjustment: There is uneasiness concerning a cultural adjustment that would certainly take place when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising And Marketing with the majority of the employee already showing unhappiness over this potential move. This predicted modification has actually developed stress and anxiety in the work environment which has actually been combined with the previous stress and anxiety of preparing the firm for a possible merging with House Deport.
Pest Analysis
Stressful Task Environment for Newcomers: There is shortage of employees that can match the stressful environment of a fast-paced organization. Not just does this lead to problem in finding the best people, it puts tension on brand-new hires as can not hold up against the rate and stress that the organization expects them to birth.

Dual Coverage Lines: Novices locate this organizational society cumbersome and also challenging to cope with especially as dotted line relationships are meant to be weaker in general and unbiased setup and also efficiency assessment is still done by the solid line manager. This indicates that newbies can shed clarity concerning their respective functions and goals particularly as populated line reporting does not maintain them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had actually been speculated that the last would take Krasnow's setting came as an impact to her spirits. Lewis may have been qualified and suitable for the job but the fact that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Work Instability: Worry and instability can be identified as 2 major worries that Lewis would be managing specifically as the merger has currently be terminated and 2 senior execs of the marketing department would certainly be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders who would not just be in charge of brining concerning a social modification however would certainly likewise need to confirm herself in her brand-new function.

Inappropriate Monitoring Style of Leader: Lewis's monitoring style and also its conflict with the advertising and marketing division's role can additionally be seen as an OB challenge particularly as she has actually been made use of to taking care of problems in the procedures division where workers are shown to concentrate on processes and also obtain them right. The advertising division on the other hand can be seen as a group of people who are made use of to being supported by Krasnow who focused a lot more on result than processes.

Interdepartmental Disputes: Interdepartmental disagreements in between 3 departments, marketing, merchandizing and also procedures respectively over the allocation of the advertising mix can be recognized as another OB worry. Although the advertising and marketing department does not share the very same vision as the various other 2 departments concerning the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and also procedures divisions do not concur over the advertising mix allocation among one another either.

Fragmentation in Advertising And Marketing Department: Disintegration in between the advertising and marketing divisions can be identified as one more OB issue which can require additional focus. The fact that the advertising and marketing sections in the marketing department are separated is protecting against both divisions from acquiring from each various other's experience and also expertise. Integration of marketing with retailing and also procedures would certainly become harder if the advertising and marketing department itself is broken down which can be an additional possible OB concern.

Primus Automation Division Analysis

Different theories have actually been utilized to describe the scenarios to get additional clarity regarding the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors think that juniors are easy and also lazy, have little passion and resist modification. The situation at Primus Automation Division is not entirely adhering to Theory X, it can be seen that new hires are discovering this environment rather stressful which may eventually lead to a better disposition of the management in the direction of Concept X. Also while evaluating Lewis's management design, concept X might have been ideal in the procedures department to some degree however the Marketing division would require reliance on Concept Y in order to obtain the creative thinking and also originality from the groups.

Tuckman's Team effort Concept: As far as Lewis's issue concerning bringing harmony between the advertising and marketing department is worried, this would originally cause contrast as discussed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, throughout the first phase of group advancement, individuals might not bond, as they are active discovering their location in the team. By incorporating the marketing and advertising division's job, there might be the same preliminary separate which could result in the second stage of 'storming' where the groups test each other. Nonetheless, it is just during the 3rd stage or 'norming' when they would collaborate to share concepts before the team can cause harmony in the 4th phase 'executing'.

Bridges' Change Version: According To William Bridge's concept (appendix 4), people are fairly unpleasant with change, which is noticeable by the scenario at Primus Automation Division The situation can be seen as a regular program of life if is examined according to Bridge's concept where he discusses that people undergo 3 phases of change when they experience modification. 'Ending, shedding and also Releasing', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When people exist with modification, they get in phase one therefore there might be feelings like despair, unpredictability, disappointment, anger, fear, denial as well as disorientation.The scenario at the advertising and marketing division of Primus Automation Division is similar so Lewis can obtain comfortable with the suggestion that it is not amazing behavior. In the second phase, there might be a requirement to connect the void in between the new and also old culture so Lewis might have to encounter this ordeal when Krasnow leaves. There might be low morale as well as low efficiency at this stage which should not be taken as a setback. It is during this phase that Lewis will have to give advice to the division so that they can find an orientation. It can be seen exactly how Krasnow has already made this change less complicated by making Lewis obtain involved in the division a year before his real departure. According to Bridges' Design, phase three will cause openness to knowing, High power and also dedication as individuals will certainly welcome the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has goes over the value of 'safety and security needs as being a reduced degree requirement of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel safe and also out of risk' is at the 2nd degree of demands. Before an employee can be made to create mentally, he requires to have his 'Physical 'and also 'Safety and security' needs satisfied.

SWOT Analysis for Primus Automation Division Case Study



Effects of Analysis.

The OB analysis has actually checked out numerous theories to understand exactly how to deal with the existing situation available. The adhering to three choices have been proposed to assist Lewis manage the business difficulties in the marketing division. Each of these choices has been suggested for reducing the change required to bring the advertising and marketing department in line with the requirements of the marketplace as well as for making the social change that would adhere to as soon as the existing leader leaves.

Integration of marketing and advertising functions. Separating Adverting and also Manufacturing features. Assimilation of Advertising with Workflow.

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merging days has proficiency in business-to-business advertising and marketing along with agency and retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to manage both marketing and also advertising functions.

The advantage of this approach is that it will incorporate the two features while reducing the requirement for working with an extra source for advertising. Along with this, Lewis would certainly be heading the advertising and marketing division and regardless her substitute would certainly be required for the present duty that she is performing. The disadvantage of this alternative is that exterior hiring may bring about animosity from interior workers who may be considering the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Production: Given the affordable stress and excellent quality work required from the ad agency, it is recommended that Lewis should enable the production unit to be a separate feature from the advertising and marketing device. Given that many advertising agencies had these 2 functions as separate units, it makes even more feeling to comply with the standard. Both functions may be able to concentrate on their core triggers more effectively. However, the negative aspect of this technique would be that extra costs would have to be borne for establishing separate production features. Along with this, a manufacturing head might have to be hired which could enhance expenses for the organization.

Combination of Advertising with Procedures: Since Lewis is already taking care of the advertising and marketing as well as operations departments concurrently; it makes sense to integrate the two features since she has actually been successfully taking care of both ends. The fact that both departments already have major distinctions over allocation of resources suggests that this assimilation might have the ability to bring about harmony particularly as Lewis would be heading both ends.However there are different disadvantages of this move specifically as it would place too much worry over Lewis's shoulders. The truth that Lewis needs to adjust her monitoring design for the advertising and marketing department suggests that these 2 divisions would be culturally diverse. Along with this, Lewis may not have the ability to use one sort of leadership design to both divisions which could cause inadequacy in either among both features.

Suggestion.



An analysis of the three choices indicates that integration of advertising as well as operations would certainly not be a feasible move due to the vast differences between the two divisions although that currently Lewis is handling both. While splitting up of the production feature may have been a desirable move for the marketing division, the reality that it would certainly mean placing a third function under Lewis's wing means this need to be prevented too. The assimilation of the marketing department is the very best alternative in regards to obtaining the ideal results from the division. An action plan for this alternative is gone over listed below.

Action Strategy.
Recommendation
Lewis will certainly take over the role of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Production feature will stay part of advertising and marketing under advertising and marketing feature.

Lewis will certainly separate herself from procedures.

A democratic leadership design with employee empowerment will certainly be used in marketing department.

Open door plan and also emphasis on cross departmental communication will certainly be focused on eliminating discord.

Backup plan.

If the integration does not work out as intended, a backup strategy would certainly follow which would divide the manufacturing function from the advertising function to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising department without an SVP. Because case the production feature will absolutely be separated by placing it under an SVP production.