Reinsurance Negotiation Confidential Information For Brack Re Case Study Solution


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Reinsurance Negotiation Confidential Information For Brack Re Case Study Solution

Background and Facts

Reinsurance Negotiation Confidential Information For Brack Re an office supplies store for tiny as well as average sized businesses has just recently been associated with preparing for a merger with its competitor Home Deport, which has actually affected efficiency degrees in departmentswith the elderly supervisor associated with legal 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 existing head of procedures has actually been asked to take the role in the future. With difficulties in the type of a possible social adjustment as well as low employee spirits, the organization requires a complete reengineering initiative at the advertising and marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The potential social modification at the marketing division of Reinsurance Negotiation Confidential Information For Brack Re is enhancing uncertainty in the working environment resulting in various difficulties for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting strategic decisions because Stapes Inc. had to abandon its strategies of combining with Workplace Deport after the Federal Trade Commission's intervention while doing so. Given the truth that the shop has an international presence with branches in UK, USA, Canada as well as Germany, political factors in each of these countries may be able to impact efficiency or calculated goals. Federal Trade Payment's antitrust suit versus the merger used up useful time of the organization's senior monitoring suggesting that 'political' factors can have major implications for an international business.

Economic Factors: Economic factors such as the introduction of local business in the global scenario recommend that Reinsurance Negotiation Confidential Information For Brack Re is prospering in a setting where there is prospective development of companies. In addition to this, truth that store clients are mainly searching for office products for home offices suggests that the market has an increasing fad of entrepreneurs and home based companies.

Social factors: Social fads in the economic climate show that consumers are looking for convenience in addition to eye-catching rates. Market research shows how the client for Reinsurance Negotiation Confidential Information For Brack Re does not have understanding regarding finding services which can supply a combination of benefit as well as low costs.

Technical factors: Modern technology plays a vital function in Reinsurance Negotiation Confidential Information For Brack Re's service technique especially as the company is piloting Innovation facilities which would certainly use modern technology sales and also assistance in the form of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues and Effects.

A number of underlying Business Habits problems can be seen in Reinsurance Negotiation Confidential Information For Brack Re's case as highlighted in this section.

Apprehensions regarding cultural change: There is worry about a cultural modification that would certainly happen once Todd Krasnow leaves from his position as the Executive Vice President of Marketing with a lot of the team member currently showing discontent over this potential step. This predicted modification has actually developed tension in the office which has been coupled with the previous stress of preparing the company for a potential merging with Home Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is scarcity of personnel that can match the stressful atmosphere of a busy company. Not just does this bring about difficulty in locating the right individuals, it puts tension on new hires as can not endure the pace as well as pressure that the organization anticipates them to birth.

Twin Reporting Lines: Newcomers find this organizational culture cumbersome and difficult to deal with particularly as dotted line partnerships are implied to be weaker generally and also unbiased setup and efficiency examination is still done by the strong line supervisor. This indicates that newbies can lose quality about their corresponding duties and objectives especially as populated line coverage does not maintain them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles despite the fact that it had actually been guessed that the last would certainly take Krasnow's placement came as a blow to her spirits. Lewis might have been capable and also proper for the job but the truth that Kransnow's separation would make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.

Concern & Job Insecurity: Worry and also insecurity can be determined as two major worries that Lewis would certainly be managing especially as the merging has now be terminated as well as two elderly executives of the marketing division would be leaving. The whole obligation of the department would certainly be dropping on Lewis's shoulders who would not just supervise of brining about a social modification yet would additionally have to prove herself in her new function.

Inappropriate Administration Style of Leader: Lewis's management style as well as its conflict with the advertising division's function can also be seen as an OB difficulty especially as she has actually been utilized to dealing with issues in the procedures department where workers are shown to concentrate on processes and obtain them. The marketing division on the other hand can be viewed as a team of people who are used to being supported by Krasnow who concentrated more on result than processes.

Interdepartmental Differences: Interdepartmental arguments in between three departments, advertising and marketing, merchandizing as well as procedures respectively over the appropriation of the advertising mix can be recognized as one more OB issue. The advertising and marketing department does not share the very same vision as the other 2 departments regarding the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and also operations divisions do not concur over the advertising mix allotment amongst one another either.

Fragmentation in Advertising And Marketing Department: Disintegration between the marketing and advertising divisions can be determined as another OB concern which might need further focus. The fact that the advertising and marketing areas in the advertising division are disconnected is avoiding both divisions from obtaining from each other's experience and also experience. Combination of advertising with merchandising as well as procedures would come to be more difficult if the marketing department itself is broken down which can be another possible OB problem.

Reinsurance Negotiation Confidential Information For Brack Re Analysis

Different theories have actually been used to discuss the conditions to obtain further clearness about the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors think that subordinates are passive and also lazy, have little aspiration and also withstand modification. The hard variation of this concept stressed browbeating, tight controls, threats and also punishments. Gradually it produces reduced efficiency, refined sabotage as well as rivalry (Deal, 2003). Although the circumstance at Reinsurance Negotiation Confidential Information For Brack Re is not totally following Concept X, it can be seen that new hires are discovering this setting instead stressful which may at some point lead to a greater disposition of the monitoring towards Theory X. As per McGregor's advocated view, which he called Theory Y, the necessary job of the monitoring is to arrange organizational conditions to make sure that individuals can achieve their own objectives best by routing their efforts in the direction of business incentives. If individuals discover no complete satisfaction in their job, the monitoring would have little choice however to depend on theory X and exterior control (Bargain, 2003). Even while analyzing Lewis's administration style, theory X might have been suitable in the operations division somewhat but the Advertising and marketing division would need dependence on Theory Y in order to get the creativity and also creativity from the teams.

Tuckman's Team effort Concept: As for Lewis's problem about bringing consistency between the advertising and marketing division is concerned, this would originally result in conflict as talked about by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). According to Tuckman's theory displayed in appendix 3, throughout the preliminary stage of group growth, people might not bond, as they are busy locating their place in the team. By incorporating the marketing and advertising department's job, there may coincide initial detach which can result in the 2nd phase of 'storming' where the groups test one another. Nonetheless, it is just throughout the third stage or 'norming' when they would certainly integrate to share suggestions prior to the team can produce synergy in the 4th phase 'executing'.

When individuals are provided with modification, they enter phase one and also so there might be emotions like unhappiness, uncertainty, disappointment, anger, anxiety, denial as well as disorientation.The situation at the advertising department of Reinsurance Negotiation Confidential Information For Brack Re is similar so Lewis can obtain comfortable with the suggestion that it is not phenomenal habits. It is throughout this phase that Lewis will certainly have to offer support to the department so that they can find a sense of direction. It can be seen just how Krasnow has currently made this change simpler by making Lewis get included in the department a year before his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has goes over the value of 'safety and security requires as being a lower degree demand of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel secure and out of danger' is at the 2nd level of requirements. Before a worker can be made to develop emotionally, he needs to have his 'Physiological 'and also 'Safety and security' requires satisfied.

SWOT Analysis for Reinsurance Negotiation Confidential Information For Brack Re Case Study

Implication of Analysis.

The OB analysis has actually checked out numerous concepts to understand how to deal with the present scenario at hand. The following three choices have been proposed to assist Lewis deal with the organizational challenges in the advertising and marketing division. Each of these options has actually been recommended for alleviating the change required to bring the advertising division in line with the requirements of the marketplace as well as for making the cultural change that would certainly comply with when the existing leader leaves.

Combination of marketing and advertising features. Dividing Adverting as well as Production functions. Assimilation of Marketing with Workflow.

Assessment of Alternatives.

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

The advantage of this method is that it will incorporate the two functions while minimizing the requirement for employing an additional source for advertising and marketing. Along with this, Lewis would certainly be heading the advertising and marketing department as well as all the same her substitute would be required for the present role that she is performing. The disadvantage of this option is that exterior hiring may produce bitterness from interior employees that might be considering the setting of EVP after Lewis takes over Krasnow's setting.

Separating Adverting as well as Manufacturing: Offered the competitive stress and high quality job called for from the advertising agency, it is suggested that Lewis needs to enable the production system to be a separate feature from the advertising device. Given that most advertising agencies had these two features as separate systems, it makes more sense to adhere to the standard. Both features might be able to focus on their core turns on extra successfully. The disadvantage of this technique would be that added prices would have to be borne for establishing up different manufacturing functions. A production head might have to be employed which can enhance expenses for the organization.

Assimilation of Advertising with Procedures: Considering that Lewis is already taking treatment of the marketing as well as procedures divisions concurrently; it makes feeling to incorporate the two functions considering that she has actually been efficiently taking care of both ends. The fact that Lewis has to adjust her management design for the advertising division suggests that these two divisions would certainly be culturally diverse.


An analysis of the 3 alternatives shows that combination of marketing and also operations would not be a practical move due to the huge differences in between the 2 divisions regardless of the fact that currently Lewis is taking care of both. While separation of the production function might have been a beneficial relocation for the advertising division, the reality that it would certainly imply placing a 3rd feature under Lewis's wing means this must be avoided.

Action Strategy.
Lewis will take over the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Manufacturing feature will stay part of advertising under advertising feature.

Lewis will certainly separate herself from operations.

A democratic management style with worker empowerment will certainly be used in advertising and marketing department.

Open door policy and focus on cross departmental communication will be focused on getting rid of dissonance.

Backup plan.

If the combination does not exercise as planned, a backup plan would certainly adhere to which would divide the production function from the advertising function to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising division without an SVP. Because case the production feature will definitely be divided by placing it under an SVP production.