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Progreso Financiero Growing Sales Case Study Analysis

Background and Facts

Progreso Financiero Growing Sales an office materials seller for small and also average sized companies has just recently been involved in preparing for a merger with its rival Home Deport, which has actually influenced efficiency degrees in departmentswith the elderly supervisor associated with legal difficulties presented by the government Trade Payment. With the Advertising Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the future. With obstacles in the kind of a prospective social adjustment as well as low staff member morale, the organization wants a complete reengineering effort at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The possible social modification at the advertising and marketing department of Progreso Financiero Growing Sales is enhancing uncertainty in the working environment resulting in numerous obstacles for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting calculated choices since Stapes Inc. had to abandon its plans of merging with Office Deport after the Federal Profession Payment's treatment while doing so. Offered the truth that the shop has an international existence with branches in UK, USA, Canada as well as Germany, political factors in each of these countries might have the ability to influence performance or strategic objectives. Federal Trade Payment's antitrust match versus the merger took up valuable time of the company's senior administration suggesting that 'political' factors can have significant implications for a global service.

Economic Factors: Economic factors such as the development of local business in the worldwide circumstance recommend that Progreso Financiero Growing Sales is thriving in a setting where there is prospective development of companies. Truth that shop customers are primarily looking for office materials for residence workplaces suggests that the market has a climbing pattern of business owners as well as home based businesses.

Social factors: Social trends in the economy show that consumers are searching for comfort as well as attractive rates. Market research demonstrates how the consumer for Progreso Financiero Growing Sales lacks recognition about discovering solutions which can use a combination of convenience and also low costs.

Technical factors: Modern technology plays a crucial function in Progreso Financiero Growing Sales's service technique especially as the organization is piloting Innovation centers which would offer technology sales and also assistance in the kind of memory upgrades, outer installations. (Recap of BUG in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Business Habits issues can be seen in Progreso Financiero Growing Sales's case as highlighted in this area.

Apprehensions regarding social change: There is uneasiness concerning a cultural change that would certainly take place once Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with a lot of the employee already revealing discontent over this possible move. This expected modification has created stress and anxiety in the workplace which has been combined with the past tension of preparing the firm for a potential merger with House Deport.
Pest Analysis
Stressful Job Atmosphere for Newcomers: There is shortage of employees that can match the stressful setting of a hectic organization. Not just does this bring about trouble in finding the best individuals, it puts stress and anxiety on brand-new hires as can not withstand the speed as well as pressure that the organization anticipates them to bear.

Twin Coverage Lines: Beginners find this organizational society cumbersome and difficult to handle especially as populated line relationships are indicated to be weaker generally as well as objective setting and also efficiency examination is still done by the strong line supervisor. This indicates that newcomers can shed quality concerning their respective roles as well as purposes especially as dotted line reporting does not maintain them in straight interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been guessed that the last would certainly take Krasnow's setting came as a blow to her morale. Lewis might have been qualified and appropriate for the work however the truth that Kransnow's separation would make Coles a straight report to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Task Insecurity: Concern as well as insecurity can be identified as two major issues that Lewis would be handling especially as the merger has currently be terminated as well as two senior executives of the advertising and marketing department would certainly be leaving. The whole responsibility of the division would certainly be dropping on Lewis's shoulders that would not just supervise of brining about a cultural change but would certainly additionally have to prove herself in her new duty.

Incompatible Monitoring Style of Leader: Lewis's management design and also its incompatibility with the advertising division's function can likewise be seen as an OB difficulty particularly as she has been utilized to taking care of concerns in the procedures department where employees are shown to focus on procedures as well as obtain them. The advertising division on the other hand can be seen as a group of people that are used to being nurtured by Krasnow who focused a lot more on outcome than processes.

Interdepartmental Disagreements: Interdepartmental disagreements between three departments, advertising, merchandizing as well as procedures specifically over the appropriation of the marketing mix can be recognized as one more OB problem. Although the marketing department does not share the exact same vision as the other 2 departments concerning the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and operations divisions do not agree over the marketing mix appropriation among one another either.

Fragmentation in Marketing Department: Disintegration between the marketing and advertising divisions can be determined as an additional OB concern which could require additional focus. The truth that the marketing and advertising sections in the advertising division are detached is protecting against both divisions from acquiring from each other's experience as well as competence. Combination of marketing with retailing and procedures would come to be harder if the advertising and marketing division itself is degenerated which can be an additional possible OB worry.

Progreso Financiero Growing Sales Analysis

Various theories have actually been made use of to clarify the scenarios to obtain further clarity regarding the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors believe that subordinates are passive and lazy, have little ambition and resist modification. The scenario at Progreso Financiero Growing Sales is not totally adhering to Theory X, it can be seen that brand-new hires are finding this setting instead demanding which may ultimately lead to a better inclination of the monitoring towards Concept X. Also while evaluating Lewis's monitoring design, concept X might have been appropriate in the procedures division to some level but the Advertising and marketing division would certainly require reliance on Concept Y in order to get the creative thinking as well as originality from the groups.

Tuckman's Team effort Concept: As far as Lewis's concern regarding bringing harmony in between the advertising and marketing as well as advertising department is concerned, this would originally lead to conflict as reviewed by Bruce Tuckman in his 'Team effort Theory'. By incorporating the marketing and advertising and marketing division's work, there may be the very same preliminary disconnect which could lead to the second stage of 'storming' where the groups challenge one another.

When individuals are offered with adjustment, they enter phase one as well as so there may be feelings like despair, unpredictability, disappointment, temper, worry, denial as well as disorientation.The circumstance at the advertising department of Progreso Financiero Growing Sales is comparable so Lewis can obtain comfy with the idea that it is not phenomenal actions. It is throughout this phase that Lewis will have to provide assistance to the department so that they can find a feeling of direction. It can be seen exactly how Krasnow has already made this shift much easier by making Lewis obtain involved in the division a year prior to his actual separation.
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue pertaining to instability at the office has actually been set off first of all by the modification in management and secondly by the fact that the merger will certainly no longer be launched. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has talks about the relevance of 'safety and security needs as being a lower level demand of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the need to feel protected as well as unharmed' is at the 2nd level of demands. Before a worker can be made to develop mentally, he needs to have his 'Physical 'and 'Security' requires met. This suggests that unless the employees are made to really feel safe and secure concerning their current work standing in Progreso Financiero Growing Sales they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Progreso Financiero Growing Sales Case Study

Effects of Analysis.

The OB analysis has looked at different concepts to comprehend just how to handle the existing situation at hand. The complying with three options have been suggested to assist Lewis deal with the business difficulties in the marketing department. Each of these options has actually been recommended for easing the shift needed to bring the advertising division in line with the needs of the marketplace and also for making the social change that would certainly follow once the present leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting as well as Production functions. Integration of Marketing with Procedures.

Analysis of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merging days has competence in business-to-business advertising along with agency as well as retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to manage both advertising and advertising and marketing functions.

The advantage of this approach is that it will certainly integrate both functions while reducing the demand for employing an extra source for advertising. In addition to this, Lewis would be heading the advertising and marketing department and all the same her replacement would certainly be required for the current duty that she is doing. The downside of this option is that outside hiring might bring about animosity from internal employees that might be considering the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Production: Offered the competitive pressures as well as high top quality work called for from the advertising and marketing company, it is advised that Lewis should enable the production device to be a different function from the advertising and marketing device. Considering that a lot of advertising companies had these two features as separate units, it makes more feeling to follow the norm.

Integration of Advertising And Marketing with Workflows: Considering that Lewis is currently taking care of the marketing as well as operations departments all at once; it makes good sense to incorporate both features given that she has actually been effectively caring for both ends. The reality that both divisions currently have major distinctions over allowance of sources recommends that this combination may be able to produce consistency particularly as Lewis would be heading both ends.However there are numerous negative aspects of this relocation especially as it would certainly place too much burden over Lewis's shoulders. The fact that Lewis needs to adjust her monitoring style for the marketing division suggests that these two departments would certainly be culturally varied. In addition to this, Lewis may not be able to apply one kind of leadership design to both departments which might lead to ineffectiveness in either among the two functions.


An assessment of the 3 options shows that combination of advertising and marketing and procedures would certainly not be a feasible relocation due to the substantial differences in between the two divisions despite the fact that presently Lewis is handling both. While separation of the production feature might have been a favorable step for the marketing division, the reality that it would certainly imply positioning a 3rd feature under Lewis's wing means this should be avoided.

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

Marketing and advertising functions would certainly be combined.

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

Manufacturing feature will remain component of advertising under marketing function.

Lewis will certainly separate herself from procedures.

An autonomous leadership design with employee empowerment will certainly be used in advertising and marketing department.

Open up door policy as well as emphasis on cross departmental communication will be focused on eliminating discord.

Backup strategy.

If the combination does not work out as prepared, a contingency strategy would certainly comply with which would certainly separate the production function from the marketing function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising department without an SVP. In that case the manufacturing feature will most definitely be separated by placing it under an SVP production.