Reagan Plan Update Case Study Solution


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Reagan Plan Update Case Study Solution

Background and Facts

Reagan Plan Update an office materials retailer for little as well as medium sized companies has actually recently been associated with preparing for a merger with its competitor House Deport, which has actually influenced effectiveness levels in departmentswith the senior supervisor associated with lawful complications put forth by the government Profession Compensation. With the Advertising Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the role in the near future. With challenges in the type of a prospective social change and reduced worker spirits, the company is in need of a total reengineering initiative at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The possible social change at the advertising and marketing department of Reagan Plan Update is increasing unpredictability in the workplace leading to different obstacles for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting calculated choices because Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Trade Compensation's treatment while doing so. Provided the fact that the shop has an international presence with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries may have the ability to impact efficiency or tactical objectives. Federal Trade Compensation's antitrust match against the merging took up valuable time of the company's senior administration suggesting that 'political' factors can have severe ramifications for a global organisation.

Economic Factors: Economic factors such as the emergence of small businesses in the global scenario suggest that Reagan Plan Update is thriving in a setting where there is possible growth of services. Reality that shop customers are mostly looking for office supplies for house offices suggests that the market has a climbing trend of business owners and also residence based businesses.

Social factors: Social trends in the economic climate show that consumers are trying to find convenience along with eye-catching rates. Marketing research demonstrates how the client for Reagan Plan Update lacks recognition regarding discovering solutions which can offer a mix of convenience and also affordable.

Technical factors: Modern technology plays an important function in Reagan Plan Update's organisation technique especially as the organization is piloting Modern technology facilities which would certainly provide modern technology sales and also support in the type of memory upgrades, peripheral setups. (Recap of BUG in appendix 2).

OB Issues as well as Effects.

A number of underlying Organizational Behavior concerns can be seen in Reagan Plan Update's case as highlighted in this section.

Apprehensions regarding cultural modification: There is apprehension concerning a cultural change that would occur once Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Marketing with the majority of the staff members already showing discontent over this possible step. This anticipated modification has actually developed anxiety in the office which has been coupled with the previous stress of preparing the company for a prospective merging with Residence Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is shortage of employees that can match the difficult atmosphere of a hectic company. Not just does this cause problem in finding the appropriate individuals, it places tension on brand-new hires as can not withstand the rate as well as pressure that the company anticipates them to bear.

Twin Coverage Lines: Novices discover this business culture cumbersome and also tough to cope with specifically as populated line partnerships are implied to be weaker in general as well as objective setup and performance analysis is still done by the solid line manager. This means that novices might shed clearness about their corresponding duties and objectives particularly as populated line coverage does not maintain them in direct interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had actually been speculated that the last would certainly take Krasnow's position came as an impact to her spirits. Lewis might have been capable and also suitable for the task yet the reality that Kransnow's separation would make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Fear & Task Insecurity: Anxiety as well as instability can be recognized as 2 major problems that Lewis would be handling specifically as the merging has currently be cancelled as well as two senior executives of the advertising department would be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders who would certainly not just supervise of brining about a social adjustment but would likewise need to confirm herself in her new function.

Inappropriate Administration Style of Leader: Lewis's administration design as well as its incompatibility with the advertising and marketing department's duty can likewise be viewed as an OB difficulty especially as she has been utilized to managing problems in the procedures division where workers are educated to focus on procedures and also obtain them right. The advertising and marketing division on the various other hand can be seen as a team of individuals that are used to being nurtured by Krasnow who focused more on outcome than processes.

Interdepartmental Differences: Interdepartmental disagreements in between three departments, advertising, merchandizing and operations respectively over the allowance of the marketing mix can be identified as an additional OB concern. Although the advertising and marketing division does not share the very same vision as the other two divisions regarding the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and also procedures divisions do not agree over the advertising and marketing mix allowance among one another either.

Disintegration in Advertising Department: Fragmentation between the marketing and advertising departments can be determined as an additional OB issue which can need further interest. The fact that the marketing and advertising sections in the advertising division are disconnected is preventing both departments from getting from each various other's experience and also know-how. Assimilation of advertising with retailing and also operations would certainly end up being more difficult if the advertising and marketing department itself is broken down which can be an additional potential OB issue.

Reagan Plan Update Analysis

Various concepts have been made use of to clarify the scenarios to get further clarity concerning the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that staffs are easy and also lazy, have little ambition and also resist modification. The tough variation of this theory stressed browbeating, tight controls, risks and punishments. With time it generates reduced efficiency, refined sabotage and rivalry (Bargain, 2003). The circumstance at Reagan Plan Update is not totally following Theory X, it can be seen that brand-new hires are locating this environment instead difficult which may ultimately lead to a higher inclination of the monitoring in the direction of Concept X. As per McGregor's supported sight, which he called Concept Y, the necessary job of the monitoring is to organize organizational problems to ensure that individuals can attain their own goals best by routing their initiatives towards business benefits. If individuals locate no complete satisfaction in their job, the management would have little option yet to depend on concept X as well as exterior control (Offer, 2003). Even while assessing Lewis's monitoring style, concept X might have appropriated in the procedures division to some extent but the Advertising and marketing department would certainly need reliance on Theory Y so as to get the creativity and creativity from the groups.

Tuckman's Synergy Theory: As much as Lewis's worry concerning bringing consistency in between the marketing as well as advertising division is concerned, this would originally lead to clash as gone over by Bruce Tuckman in his 'Teamwork Theory'. By combining the advertising and also advertising division's work, there might be the very same first detach which might lead to the 2nd stage of 'storming' where the groups test one an additional.

When individuals are presented with adjustment, they enter phase one as well as so there may be feelings like unhappiness, uncertainty, irritation, anger, anxiety, denial and also disorientation.The situation at the advertising and marketing department of Reagan Plan Update is similar so Lewis can get comfy with the suggestion that it is not phenomenal behavior. It is throughout this stage that Lewis will certainly have to give guidance to the division so that they can locate a sense of direction. It can be seen how Krasnow has actually currently made this change much easier by making Lewis get included in the division a year before his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has discusses the importance of 'protection requires as being a lower level need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel protected and out of threat' is at the 2nd level of needs. Prior to an employee can be made to develop emotionally, he needs to have his 'Physiological 'and 'Safety' needs met.

SWOT Analysis for Reagan Plan Update Case Study

Ramification of Analysis.

The OB analysis has actually taken a look at various concepts to comprehend just how to cope with the present situation at hand. The complying with 3 options have been recommended to help Lewis manage the business challenges in the advertising and marketing department. Each of these alternatives has been suggested for relieving the change needed to bring the advertising division in line with the requirements of the marketplace and for making the cultural modification that would follow once the existing leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting as well as Manufacturing features. Combination of Advertising with Procedures.

Assessment of Alternatives.

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

The advantage of this method is that it will certainly integrate the two functions while reducing the need for hiring an added source for advertising and marketing. In addition to this, Lewis would certainly be heading the advertising and marketing division and regardless her substitute would certainly be needed for the current role that she is performing. The negative aspect of this alternative is that outside hiring may cause animosity from inner employees who might be looking at the placement of EVP after Lewis takes over Krasnow's position.

Separating Adverting and also Production: Offered the affordable stress and also high quality job needed from the ad agency, it is recommended that Lewis ought to permit the manufacturing unit to be a different function from the marketing unit. Because most advertising agencies had these 2 features as different devices, it makes more feeling to follow the standard. In addition to this, both functions may have the ability to focus on their core activates much more efficiently. The downside of this method would certainly be that extra costs would certainly have to be birthed for setting up different production features. A manufacturing head may have to be hired which might enhance expenses for the organization.

Combination of Advertising And Marketing with Procedures: Since Lewis is already looking after the advertising and also operations departments concurrently; it makes sense to incorporate the two functions because she has actually been efficiently looking after both ends. The reality that the two departments already have significant differences over allotment of sources recommends that this integration may have the ability to cause consistency especially as Lewis would certainly be heading both ends.However there are numerous negative aspects of this step specifically as it would put way too much worry over Lewis's shoulders. The truth that Lewis has to adjust her monitoring style for the advertising and marketing division suggests that these 2 divisions would be culturally diverse. Lewis might not be able to use one type of management style to both divisions which can result in inadequacy in either one of the two features.


An analysis of the three alternatives suggests that combination of advertising and marketing and operations would certainly not be a viable relocation due to the large differences in between the 2 departments regardless of the reality that currently Lewis is taking care of both. While splitting up of the production feature might have been a favorable step for the marketing division, the fact that it would imply positioning a third feature under Lewis's wing means this should be stayed clear of.

Action Plan.
Lewis will take over the role of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would be combined.

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

Manufacturing feature will stay component of advertising and marketing under advertising and marketing feature.

Lewis will certainly separate herself from operations.

An autonomous management style with employee empowerment will be used in marketing department.

Open door policy and also emphasis on cross departmental interaction will certainly be focused on eliminating disharmony.

Contingency strategy.

If the combination does not work out as prepared, a backup strategy would certainly adhere to which would divide the production function from the advertising and marketing feature to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the marketing division without an SVP. Because case the manufacturing function will most definitely be divided by putting it under an SVP production.