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Progreso Financiero Growing Sales Case Study Solution

CASE ANALYSIS

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Progreso Financiero Growing Sales Case Study Help

Background and Facts

Progreso Financiero Growing Sales a workplace products store for little as well as medium sized businesses has actually recently been involved in preparing for a merging with its competitor House Deport, which has actually affected performance degrees in departmentswith the elderly supervisor associated with lawful problems put forth by the government Trade Compensation. With the Marketing Head advancing the news of his departure from the company in one year, Jeannie Lewis, the present head of operations has been asked to take the role in the near future. With challenges in the type of a prospective cultural modification and also low employee spirits, the company wants a full reengineering initiative at the advertising and marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising and marketing department of Progreso Financiero Growing Sales is enhancing unpredictability in the working environment bring about numerous obstacles for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing calculated decisions since Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Trade Commission's treatment at the same time. Offered the truth that the shop has a worldwide presence with branches in UK, USA, Canada and also Germany, political consider each of these countries might be able to impact performance or tactical objectives. Federal Trade Compensation's antitrust fit versus the merger took up important time of the company's elderly management suggesting that 'political' factors can have significant implications for a worldwide service.

Economic Factors: Economic factors such as the introduction of local business in the global scenario recommend that Progreso Financiero Growing Sales is thriving in a setting where there is potential growth of services. Along with this, reality that shop customers are primarily looking for workplace products for office suggests that the market has a climbing pattern of business owners as well as home companies.

Social factors: Social trends in the economic climate reveal that consumers are looking for ease in addition to appealing prices. Marketing research shows how the consumer for Progreso Financiero Growing Sales lacks understanding about discovering options which can offer a mix of ease and also low costs.

Technological factors: Modern technology plays a vital duty in Progreso Financiero Growing Sales's business method specifically as the organization is piloting Modern technology centers which would provide technology sales and also support in the type of memory upgrades, peripheral installments. (Summary of INSECT in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Business Behavior issues can be seen in Progreso Financiero Growing Sales's case as highlighted in this area.

Apprehensions concerning cultural modification: There is apprehension regarding a cultural modification that would certainly happen when Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with most of the staff members already revealing unhappiness over this possible relocation. This expected modification has actually developed anxiety in the work environment which has actually been coupled with the past tension of preparing the firm for a possible merging with Residence Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is shortage of workers that can match the stressful setting of a hectic company. Not just does this cause difficulty in locating the best people, it places anxiety on brand-new hires as can not stand up to the speed and also pressure that the organization expects them to birth.

Dual Reporting Lines: Newbies discover this organizational society cumbersome as well as tough to handle specifically as populated line connections are suggested to be weak as a whole and objective setup and also efficiency analysis is still done by the solid line manager. This means that beginners can shed clearness about their corresponding functions and also purposes especially as populated line reporting does not maintain them in direct communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles despite the fact that it had been guessed that the last would take Krasnow's placement came as a strike to her spirits. Lewis might have been capable and appropriate for the task however the fact that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Job Insecurity: Anxiety as well as insecurity can be determined as 2 major problems that Lewis would certainly be managing particularly as the merging has currently be cancelled as well as two senior execs of the marketing department would be leaving. The entire obligation of the department would be dropping on Lewis's shoulders that would certainly not just supervise of brining concerning a cultural change however would additionally need to confirm herself in her brand-new duty.

Incompatible Monitoring Design of Leader: Lewis's management style and its incompatibility with the marketing department's role can also be viewed as an OB obstacle especially as she has actually been used to taking care of issues in the procedures division where workers are instructed to focus on processes as well as obtain them right. The advertising division on the other hand can be viewed as a team of people who are used to being supported by Krasnow who focused much more on output than processes.

Interdepartmental Disagreements: Interdepartmental disagreements in between 3 departments, advertising, merchandizing as well as procedures specifically over the allocation of the marketing mix can be determined as one more OB worry. The advertising and marketing division does not share the same vision as the other 2 departments relating to the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and operations departments do not concur over the advertising and marketing mix appropriation among one an additional either.

Fragmentation in Advertising And Marketing Division: Disintegration in between the advertising and marketing divisions can be identified as an additional OB problem which might need further interest. The reality that the marketing and advertising areas in the advertising division are detached is avoiding both divisions from acquiring from each various other's experience as well as competence. Integration of advertising and marketing with retailing and procedures would certainly become more difficult if the marketing division itself is degenerated which can be another potential OB worry.

Progreso Financiero Growing Sales Analysis

Different theories have actually been used to discuss the scenarios to get additional clearness about the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors believe that staffs are passive as well as lazy, have little aspiration as well as resist change. The scenario at Progreso Financiero Growing Sales is not completely following Concept X, it can be seen that new hires are locating this setting instead stressful which might ultimately lead to a higher inclination of the administration in the direction of Concept X. Also while assessing Lewis's administration design, theory X may have been suitable in the operations division to some level but the Advertising division would need dependence on Concept Y in order to get the imagination and originality from the groups.

Tuckman's Teamwork Theory: As far as Lewis's issue concerning bringing harmony between the advertising and also marketing division is worried, this would originally lead to clash as discussed by Bruce Tuckman in his 'Team effort Theory'. By incorporating the marketing and also advertising and marketing division's job, there might be the same preliminary separate which can lead to the 2nd phase of 'storming' where the teams test one another.

When people are provided with modification, they go into stage one as well as so there might be emotions like unhappiness, uncertainty, disappointment, anger, worry, rejection and also disorientation.The circumstance at the marketing division of Progreso Financiero Growing Sales is similar so Lewis can obtain comfy with the concept that it is not extraordinary actions. It is during this phase that Lewis will have to give advice to the department so that they can locate a sense of instructions. It can be seen how Krasnow has already made this shift less complicated by making Lewis get involved in the division a year before his real departure.
Vrio Analysis
Maslow's Demand hierarchy: The OB issue pertaining to instability at the work environment has actually been triggered first of all by the modification in administration as well as second of all by the truth that the merging will no more be launched. Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has goes over the importance of 'protection needs as being a reduced degree requirement of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the need to feel safe and secure and out of danger' is at the 2nd level of requirements. Prior to an employee can be made to create mentally, he needs to have his 'Physiological 'and also 'Safety' needs satisfied. This suggests that unless the personnel are made to really feel safe about their present employment standing in Progreso Financiero Growing Sales they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Progreso Financiero Growing Sales Case Study



Implication of Analysis.

The OB analysis has looked at various theories to comprehend just how to deal with the existing situation available. The following 3 alternatives have been recommended to aid Lewis deal with the organizational obstacles in the marketing division. Each of these choices has been suggested for alleviating the change needed to bring the advertising and marketing division in accordance with the requirements of the market and also for making the cultural adjustment that would certainly comply with once the current leader leaves.

Assimilation of advertising and marketing features. Separating Adverting and also Manufacturing features. Combination of Marketing with Operations.

Analysis of Alternatives.

Combination of Advertising & Advertising Functions: The internal advertising and marketing firm of Progreso Financiero Growing Sales is already strength for the company in regards to saving up on overheads associated with advertising and marketing and promo. Considering that no new recruitment has been done after Bridget Cole's departure with the coverage line being directly assigned to Krasnow for the advertising feature, this is a favorable possibility for integrating the advertising and marketing features. Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merging days has expertise in business-to-business advertising along with agency and retail marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to deal with both advertising and marketing functions.

The benefit of this approach is that it will certainly incorporate the two features while minimizing the demand for working with an extra source for advertising and marketing. Lewis would certainly be heading the advertising division and also in any case her substitute would be required for the current function that she is executing. The drawback of this choice is that exterior hiring may produce resentment from interior workers that may be considering the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and Manufacturing: Given the affordable stress and high quality work needed from the marketing firm, it is recommended that Lewis should enable the production unit to be a separate feature from the marketing device. Considering that most marketing firms had these 2 functions as different systems, it makes more sense to follow the standard.

Integration of Marketing with Operations: Given that Lewis is currently taking treatment of the advertising and procedures departments all at once; it makes feeling to incorporate the 2 functions because she has been effectively taking treatment of both ends. The truth that Lewis has to adjust her administration style for the advertising and marketing department suggests that these two departments would be culturally diverse.

Recommendation.



An examination of the three options suggests that integration of advertising and also procedures would certainly not be a feasible relocation due to the substantial distinctions between the two departments in spite of the fact that presently Lewis is dealing with both. While splitting up of the manufacturing function might have been a positive action for the marketing division, the truth that it would indicate positioning a 3rd feature under Lewis's wing indicates this must be avoided.

Activity Strategy.
Recommendation
Lewis will certainly take over the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would be merged.

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

Production feature will remain component of marketing under advertising function.

Lewis will certainly divide herself from procedures.

An autonomous management design with staff member empowerment will certainly be utilized in advertising and marketing department.

Open up door plan as well as emphasis on cross departmental communication will be focused on getting rid of disharmony.

Backup strategy.

If the combination does not work out as intended, a contingency strategy would certainly adhere to which would certainly separate the production function from the marketing feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising department without an SVP. Because case the manufacturing feature will definitely be divided by positioning it under an SVP manufacturing.