Revenue Maximization Apartment Rental Units Case Study Solution


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Revenue Maximization Apartment Rental Units Case Study Help

Background and Facts

Revenue Maximization Apartment Rental Units a workplace materials merchant for little as well as moderate sized services has actually just recently been associated with preparing for a merger with its competitor Home Deport, which has impacted efficiency degrees in departmentswith the senior supervisor involved in lawful problems put forth by the federal Trade Commission. With the Advertising Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the function in the future. With obstacles in the type of a potential social adjustment and low worker spirits, the organization wants a complete reengineering initiative at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The potential social change at the advertising division of Revenue Maximization Apartment Rental Units is enhancing uncertainty in the workplace causing different obstacles for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting calculated decisions since Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Profession Compensation's treatment while doing so. Offered the reality that the store has an international presence with branches in UK, USA, Canada and Germany, political consider each of these countries may be able to affect performance or critical goals. Federal Profession Compensation's antitrust suit versus the merger used up useful time of the company's senior management recommending that 'political' factors can have serious effects for a global service.

Economic Factors: Economic factors such as the development of small companies in the worldwide situation recommend that Revenue Maximization Apartment Rental Units is flourishing in a setting where there is prospective development of companies. Truth that store clients are mainly looking for office materials for residence workplaces recommends that the market has a climbing pattern of business owners as well as house based companies.

Social factors: Social fads in the economy show that clients are searching for convenience along with attractive rates. Market research shows how the consumer for Revenue Maximization Apartment Rental Units lacks recognition about discovering solutions which can supply a combination of comfort and also affordable.

Technical factors: Technology plays a crucial function in Revenue Maximization Apartment Rental Units's company approach specifically as the company is piloting Technology centers which would certainly supply technology sales and assistance in the kind of memory upgrades, peripheral installations. (Summary of PEST in appendix 2).

OB Issues and Symptoms.

Numerous underlying Organizational Habits concerns can be seen in Revenue Maximization Apartment Rental Units's case as highlighted in this area.

Worries concerning social modification: There is apprehension regarding a cultural change that would occur as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with most of the team member already revealing unhappiness over this possible move. This predicted modification has actually produced anxiety in the work environment which has been coupled with the past tension of preparing the firm for a potential merging with House Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is lack of workers that can match the difficult atmosphere of a fast-paced organization. Not only does this bring about trouble in discovering the right people, it places stress and anxiety on new hires as can not stand up to the rate as well as pressure that the company anticipates them to bear.

Double Coverage Lines: Newcomers locate this organizational culture difficult and also difficult to cope with especially as dotted line connections are indicated to be weak in general and also unbiased setting as well as performance evaluation is still done by the solid line manager. This indicates that newbies might shed clearness regarding their particular roles as well as objectives particularly as populated line coverage does not maintain them in straight interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had been guessed that the latter would certainly take Krasnow's setting came as a blow to her morale. Lewis may have been qualified and ideal for the job but the fact that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Work Insecurity: Fear and instability can be determined as 2 major worries that Lewis would be handling specifically as the merging has actually now be terminated and also two elderly execs of the advertising and marketing division would certainly be leaving. The entire responsibility of the division would be dropping on Lewis's shoulders who would not just be in charge of brining concerning a social modification however would certainly also have to confirm herself in her brand-new role.

Incompatible Management Style of Leader: Lewis's administration design and its conflict with the advertising and marketing department's duty can also be viewed as an OB difficulty particularly as she has actually been utilized to taking care of problems in the procedures division where employees are instructed to focus on processes and get them right. The advertising and marketing department on the other hand can be viewed as a group of people that are used to being supported by Krasnow who concentrated a lot more on outcome than processes.

Interdepartmental Arguments: Interdepartmental disputes between three departments, advertising and marketing, merchandizing as well as procedures specifically over the allowance of the marketing mix can be identified as another OB concern. Although the advertising department does not share the same vision as the various other 2 departments relating to the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and also operations departments do not concur over the advertising and marketing mix allowance amongst one another either.

Disintegration in Advertising Department: Fragmentation between the marketing and advertising departments can be recognized as one more OB issue which might need more focus. The truth that the marketing and advertising areas in the marketing department are disconnected is stopping both divisions from obtaining from each various other's experience and competence. Assimilation of marketing with merchandising and operations would certainly come to be more difficult if the advertising and marketing division itself is broken down which can be one more possible OB issue.

Revenue Maximization Apartment Rental Units Analysis

Different concepts have actually been used to explain the conditions to get more quality regarding the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers think that staffs are easy as well as careless, have little ambition and withstand change. The hard version of this concept emphasized coercion, limited controls, threats as well as punishments. Gradually it generates low performance, subtle sabotage as well as competition (Offer, 2003). Although the situation at Revenue Maximization Apartment Rental Units is not totally adhering to Theory X, it can be seen that brand-new hires are finding this atmosphere instead difficult which may eventually bring about a better inclination of the monitoring in the direction of Concept X. Based on McGregor's promoted sight, which he called Theory Y, the essential job of the monitoring is to organize organizational problems so that people can accomplish their own goals best by guiding their efforts towards organizational rewards. If individuals find no satisfaction in their job, the management would have little selection but to rely on theory X and also outside control (Deal, 2003). Even while examining Lewis's monitoring style, theory X may have appropriated in the procedures department to some extent yet the Marketing department would certainly need dependence on Theory Y to get the creativity and also creativity from the groups.

Tuckman's Synergy Theory: Regarding Lewis's problem about bringing harmony in between the advertising and marketing division is concerned, this would at first result in clash as talked about by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, during the first stage of group growth, individuals may not bond, as they are active discovering their area in the group. By combining the advertising and marketing department's work, there may coincide first detach which can bring about the second stage of 'storming' where the teams test each other. It is only throughout the 3rd phase or 'norming' when they would come together to share ideas prior to the team can bring about synergy in the fourth phase 'executing'.

Bridges' Shift Version: Based On William Bridge's theory (appendix 4), individuals are quite awkward with modification, which is obvious by the circumstance at Revenue Maximization Apartment Rental Units The circumstance can be seen as a typical program of life if is researched as per Bridge's theory where he describes that individuals go through three phases of transition when they experience change. 'End, losing and also Releasing', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When individuals are presented with change, they enter phase one and so there may be emotions like sadness, unpredictability, disappointment, rage, concern, denial and also disorientation.The situation at the marketing division of Revenue Maximization Apartment Rental Units is comparable so Lewis can get comfortable with the concept that it is not amazing habits. In the second phase, there might be a requirement to link the gap in between the new and old society so Lewis might have to face this experience when Krasnow leaves. There may be reduced morale and low performance at this phase which should not be taken as a problem. It is throughout this stage that Lewis will certainly have to give assistance to the department to make sure that they can find an orientation. It can be seen how Krasnow has already made this shift much easier by making Lewis obtain associated with the department a year prior to his real departure. As per Bridges' Design, stage three will cause openness to knowing, High power and also commitment as people will certainly embrace the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has discusses the significance of 'safety requires as being a reduced degree demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel safe and out of threat' is at the second degree of demands. Prior to a worker can be made to create mentally, he requires to have his 'Physiological 'and 'Security' needs fulfilled.

SWOT Analysis for Revenue Maximization Apartment Rental Units Case Study

Ramification of Analysis.

The OB analysis has looked at various theories to recognize how to cope with the current situation at hand. The complying with 3 choices have actually been recommended to assist Lewis deal with the organizational obstacles in the marketing department. Each of these alternatives has actually been proposed for alleviating the shift needed to bring the marketing division according to the needs of the market and for making the cultural change that would follow when the present leader leaves.

Assimilation of marketing and advertising features. Separating Adverting as well as Manufacturing functions. Assimilation of Advertising with Workflow.

Assessment of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis during the earlier merger days has proficiency in business-to-business marketing along with firm and also retail advertising experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both advertising and marketing and advertising and marketing functions.

The advantage of this technique is that it will certainly integrate the two features while lowering the demand for employing an extra source for marketing. In addition to this, Lewis would be heading the advertising division and all the same her replacement would be required for the present role that she is doing. The disadvantage of this choice is that outside hiring might cause bitterness from inner employees who may be eying the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting as well as Production: Offered the affordable pressures and high top quality job needed from the advertising agency, it is recommended that Lewis needs to enable the production unit to be a separate feature from the marketing unit. Given that the majority of marketing agencies had these 2 functions as different systems, it makes more feeling to adhere to the standard.

Combination of Advertising with Workflows: Considering that Lewis is already taking treatment of the advertising and marketing as well as operations departments all at once; it makes feeling to integrate the two features since she has been effectively taking treatment of both ends. The fact that Lewis has to adjust her monitoring design for the advertising and marketing division suggests that these 2 departments would certainly be culturally varied.


An assessment of the three choices shows that combination of marketing and operations would not be a practical move as a result of the substantial differences in between both divisions despite the fact that presently Lewis is taking care of both. While splitting up of the production function might have been a positive relocation for the advertising and marketing division, the truth that it would indicate putting a 3rd feature under Lewis's wing suggests this need to be stayed clear of. The combination of the advertising and marketing division is the best choice in terms of getting the optimum arise from the department. An action prepare for this alternative is gone over below.

Activity Strategy.
Lewis will certainly take over the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

Production function will stay part of advertising under advertising and marketing feature.

Lewis will certainly divide herself from procedures.

A democratic management design with staff member empowerment will be utilized in advertising and marketing division.

Open door plan as well as focus on cross departmental communication will certainly be aimed at eliminating disharmony.

Contingency strategy.

If the combination does not work out as prepared, a contingency strategy would comply with which would separate the manufacturing feature from the advertising feature to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising department without an SVP. Because case the manufacturing feature will certainly be separated by putting it under an SVP manufacturing.