Real Estate Investment Trusts Case Study Solution


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Real Estate Investment Trusts Case Study Analysis

Background and Facts

Real Estate Investment Trusts a workplace materials store for small as well as moderate sized organisations has just recently been associated with preparing for a merging with its rival House Deport, which has affected effectiveness levels in departmentswith the elderly supervisor involved in lawful difficulties put forth by the government Trade Commission. With the Advertising Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the duty in the future. With difficulties in the form of a potential social adjustment as well as low staff member morale, the organization requires a complete reengineering effort at the marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The potential cultural change at the marketing division of Real Estate Investment Trusts is raising uncertainty in the working environment resulting in different difficulties for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting calculated choices considering that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Compensation's treatment in the process. Provided the truth that the shop has a global presence with branches in UK, USA, Canada as well as Germany, political factors in each of these nations may be able to influence efficiency or calculated objectives. Federal Profession Compensation's antitrust suit versus the merging took up useful time of the organization's senior monitoring suggesting that 'political' factors can have major effects for a global organisation.

Economic Factors: Financial factors such as the emergence of small businesses in the international circumstance recommend that Real Estate Investment Trusts is prospering in a setting where there is prospective growth of companies. In addition to this, reality that store consumers are mostly looking for office materials for home offices suggests that the market has an increasing fad of entrepreneurs as well as online organisations.

Social factors: Social fads in the economic situation reveal that customers are searching for convenience as well as appealing rates. Market research demonstrates how the client for Real Estate Investment Trusts does not have understanding concerning locating services which can supply a mix of comfort and also affordable.

Technical factors: Innovation plays an important function in Real Estate Investment Trusts's company method particularly as the organization is piloting Innovation facilities which would supply innovation sales and assistance in the form of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues and also Effects.

Numerous underlying Business Habits problems can be seen in Real Estate Investment Trusts's case as highlighted in this area.

Apprehensions about cultural change: There is uneasiness concerning a cultural adjustment that would certainly occur once Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising And Marketing with the majority of the staff members already showing discontent over this potential action. This anticipated modification has developed tension in the office which has actually been coupled with the previous stress and anxiety of preparing the company for a possible merger with House Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is shortage of employees that can match the demanding environment of a busy organization. Not only does this lead to problem in discovering the best people, it places stress on new hires as can not hold up against the pace and also stress that the company expects them to bear.

Double Coverage Lines: Novices discover this organizational society troublesome as well as tough to cope with specifically as populated line connections are meant to be weaker as a whole as well as unbiased setting as well as performance evaluation is still done by the strong line supervisor. This indicates that beginners could shed clearness concerning their particular roles and goals particularly as populated line reporting does not keep them in direct communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles even though it had been speculated that the latter would certainly take Krasnow's position came as an impact to her morale. Lewis may have been capable and proper for the task but the reality that Kransnow's separation would make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Task Insecurity: Worry as well as instability can be recognized as 2 significant worries that Lewis would be taking care of particularly as the merger has now be terminated as well as 2 senior executives of the advertising division would be leaving. The entire responsibility of the department would be falling on Lewis's shoulders that would certainly not just supervise of brining about a social modification yet would certainly also have to verify herself in her new role.

Inappropriate Administration Style of Leader: Lewis's management design as well as its incompatibility with the marketing department's duty can likewise be viewed as an OB difficulty especially as she has actually been used to dealing with problems in the procedures department where personnel are instructed to concentrate on processes and obtain them right. The marketing division on the other hand can be viewed as a team of people that are utilized to being supported by Krasnow who focused much more on result than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between three departments, advertising and marketing, merchandizing and procedures specifically over the allowance of the advertising and marketing mix can be recognized as another OB issue. Although the marketing division does not share the same vision as the various other two divisions concerning the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing as well as procedures divisions do not agree over the advertising and marketing mix allowance amongst one another either.

Disintegration in Advertising Division: Fragmentation in between the marketing and advertising divisions can be determined as another OB issue which could need additional attention. The truth that the advertising and marketing areas in the marketing division are detached is avoiding both departments from getting from each various other's experience and proficiency. Combination of advertising with retailing as well as procedures would come to be harder if the advertising and marketing department itself is disintegrated which can be one more possible OB worry.

Real Estate Investment Trusts Analysis

Various theories have actually been made use of to clarify the circumstances to get more clarity concerning the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that subordinates are easy and also lazy, have little ambition and stand up to adjustment. The situation at Real Estate Investment Trusts is not completely following Theory X, it can be seen that brand-new hires are discovering this environment instead difficult which might ultimately lead to a greater inclination of the management in the direction of Theory X. Even while evaluating Lewis's monitoring style, concept X may have been appropriate in the operations division to some degree yet the Advertising division would need dependence on Theory Y in order to obtain the creative thinking and creativity from the groups.

Tuckman's Teamwork Concept: As for Lewis's concern about bringing harmony between the advertising and marketing department is worried, this would originally result in conflict as talked about by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's theory shown in appendix 3, during the preliminary phase of group advancement, people might not bond, as they are active locating their place in the team. By combining the marketing and advertising division's job, there might coincide first separate which might result in the second stage of 'storming' where the teams test one another. Nonetheless, it is just throughout the 3rd stage or 'norming' when they would certainly collaborate to share ideas prior to the team can cause harmony in the fourth stage 'doing'.

Bridges' Transition Design: As per William Bridge's theory (appendix 4), people are quite uneasy with adjustment, which is noticeable by the situation at Real Estate Investment Trusts The situation can be viewed as a normal course of life if is studied based on Bridge's theory where he discusses that people experience 3 stages of change when they experience change. 'Closing, losing and also Releasing', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When individuals exist with change, they enter phase one therefore there might be feelings like sadness, uncertainty, frustration, temper, fear, rejection and also disorientation.The scenario at the advertising and marketing division of Real Estate Investment Trusts is similar so Lewis can get comfy with the idea that it is not extraordinary actions. In the 2nd phase, there might be a demand to link the void between the brand-new and also old society so Lewis may have to face this ordeal once Krasnow leaves. There might be low spirits and also low productivity at this stage which must not be taken as a problem. It is during this stage that Lewis will need to offer advice to the department to make sure that they can discover an orientation. It can be seen just how Krasnow has actually currently made this change much easier by making Lewis get involved in the department a year prior to his actual departure. According to Bridges' Model, phase 3 will cause visibility to knowing, High power and also commitment as people will certainly welcome the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Demand power structure: The OB issue pertaining to insecurity at the office has actually been set off firstly by the change in monitoring and second of all by the reality that the merging will certainly no more be launched. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has goes over the value of 'safety requires as being a reduced level need of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the need to feel safe and also safe' is at the second degree of needs. Before an employee can be made to establish emotionally, he needs to have his 'Physiological 'and 'Security' requires met. This shows that unless the workers are made to feel protected concerning their existing work standing in Real Estate Investment Trusts they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Real Estate Investment Trusts Case Study

Implication of Analysis.

The OB analysis has checked out numerous concepts to comprehend exactly how to cope with the existing scenario at hand. The following three alternatives have been suggested to assist Lewis manage the organizational difficulties in the marketing department. Each of these options has been proposed for easing the shift needed to bring the advertising department according to the needs of the market as well as for making the social change that would comply with as soon as the current leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting as well as Production functions. Combination of Advertising with Procedures.

Analysis of Alternatives.

Assimilation of Advertising And Marketing & Advertising Functions: The in-house marketing agency of Real Estate Investment Trusts is currently toughness for the organization in regards to conserving up on overheads associated with advertising and marketing and promo. Given that no brand-new employment has actually been done after Bridget Cole's separation with the coverage line being directly designated to Krasnow for the marketing function, this is a positive possibility for integrating the advertising and marketing features. Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merger days has knowledge in business-to-business marketing along with agency and retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing features.

The advantage of this method is that it will certainly incorporate the two features while reducing the demand for employing an extra resource for marketing. Lewis would certainly be heading the marketing division and also in any kind of case her substitute would be needed for the present duty that she is executing. The downside of this choice is that exterior hiring may produce animosity from inner workers that may be looking at the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Manufacturing: Given the affordable stress and also premium quality work called for from the advertising agency, it is suggested that Lewis should enable the production system to be a separate feature from the advertising system. Considering that most advertising agencies had these 2 features as separate units, it makes more sense to adhere to the norm. Both functions may be able to focus on their core triggers more successfully. However, the negative aspect of this method would certainly be that added costs would need to be birthed for establishing different manufacturing functions. Along with this, a production head may need to be worked with which can increase overheads for the company.

Integration of Advertising with Operations: Because Lewis is currently taking treatment of the marketing and also procedures divisions all at once; it makes sense to integrate the two functions considering that she has been efficiently taking treatment of both ends. The truth that Lewis has to adjust her monitoring design for the advertising and marketing division suggests that these 2 divisions would certainly be culturally varied.


An assessment of the 3 alternatives suggests that combination of marketing and procedures would certainly not be a feasible move due to the vast distinctions between the two departments despite the fact that currently Lewis is dealing with both. While separation of the manufacturing feature might have been a favorable relocation for the advertising department, the fact that it would certainly imply putting a third feature under Lewis's wing indicates this must be avoided. The combination of the advertising and marketing department is the best option in terms of getting the optimum arise from the department. An action plan for this choice is discussed below.

Activity Plan.
Lewis will take control of the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

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

Lewis will certainly divide herself from procedures.

An autonomous management design with worker empowerment will be used in advertising division.

Open door plan and also focus on cross departmental communication will be focused on getting rid of discord.

Backup strategy.

If the integration does not exercise as planned, a backup plan would adhere to which would divide the manufacturing function from the marketing function to reduce the tons 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 certainly be divided by placing it under an SVP manufacturing.