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Reworking Office Space Industry City Brooklyn Case Study Solution

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Reworking Office Space Industry City Brooklyn Case Study Solution

Background and Facts

Reworking Office Space Industry City Brooklyn an office materials merchant for tiny and also average sized services has actually recently been associated with preparing for a merger with its competitor Residence Deport, which has influenced effectiveness degrees in departmentswith the elderly manager involved in legal difficulties put forth by the federal Trade Payment. With the Advertising Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the future. With difficulties in the type of a possible social adjustment and also low staff member morale, the organization needs a complete reengineering effort at the advertising division.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the marketing division of Reworking Office Space Industry City Brooklyn is increasing uncertainty in the working environment causing various obstacles for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing strategic decisions given that Stapes Inc. had to desert its plans of combining with Office Deport after the Federal Profession Commission's treatment in the process. Offered the truth that the shop has a worldwide presence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations might be able to influence performance or strategic goals. Federal Profession Commission's antitrust suit against the merger used up valuable time of the company's elderly monitoring recommending that 'political' factors can have significant implications for an international organisation.

Economic Factors: Economic factors such as the emergence of local business in the worldwide scenario suggest that Reworking Office Space Industry City Brooklyn is prospering in a setting where there is possible development of organisations. Truth that shop customers are mostly looking for workplace products for house workplaces suggests that the market has an increasing trend of entrepreneurs and home based services.

Social factors: Social fads in the economy reveal that clients are searching for ease as well as appealing costs. Marketing research demonstrates how the customer for Reworking Office Space Industry City Brooklyn does not have understanding about locating options which can provide a mix of comfort and inexpensive.

Technical factors: Modern technology plays an important duty in Reworking Office Space Industry City Brooklyn's organisation approach particularly as the company is piloting Innovation facilities which would supply innovation sales as well as assistance in the kind of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues and Symptoms.

Several underlying Business Habits concerns can be seen in Reworking Office Space Industry City Brooklyn's case as highlighted in this area.

Uneasiness about cultural modification: There is apprehension concerning a cultural modification that would occur as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising with a lot of the staff members already showing discontent over this prospective relocation. This predicted modification has developed stress and anxiety in the work environment which has been paired with the past tension of preparing the company for a prospective merging with Residence Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is shortage of employees that can match the stressful environment of a fast-paced organization. Not only does this cause difficulty in discovering the best people, it puts stress on brand-new hires as can not stand up to the pace and pressure that the company expects them to bear.

Double Reporting Lines: Newbies locate this business culture cumbersome and also hard to deal with particularly as populated line connections are suggested to be weak as a whole and unbiased setting and efficiency analysis is still done by the strong line supervisor. This suggests that novices can shed clarity regarding their particular functions and purposes particularly as dotted line reporting does not maintain them in direct communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had been guessed that the last would certainly take Krasnow's placement came as a blow to her morale. Lewis might have been capable and proper for the task 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.

Concern & Work Instability: Concern and also insecurity can be determined as two major problems that Lewis would certainly be handling particularly as the merger has actually now be cancelled and two elderly execs of the advertising division would certainly be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders who would not just be in charge of brining about a cultural modification yet would certainly also have to show herself in her brand-new duty.

Inappropriate Administration Style of Leader: Lewis's administration design and also its conflict with the advertising department's duty can likewise be seen as an OB obstacle particularly as she has been made use of to dealing with issues in the procedures department where personnel are shown to concentrate on processes as well as obtain them right. The advertising and marketing department on the other hand can be viewed as a team of individuals who are made use of to being nurtured by Krasnow who concentrated more on result than processes.

Interdepartmental Differences: Interdepartmental disagreements between 3 departments, advertising and marketing, merchandizing and operations specifically over the appropriation of the advertising mix can be determined as one more OB problem. The advertising division does not share the same vision as the various other 2 departments pertaining to the aloocation of the marketing mix twoards promos and advertsing, the merchandizing and also operations divisions do not agree over the advertising mix allocation among one another either.

Fragmentation in Marketing Department: Fragmentation between the marketing and advertising divisions can be identified as one more OB problem which can need more interest. The reality that the marketing and advertising areas in the advertising and marketing department are separated is preventing both divisions from getting from each various other's experience and experience. Assimilation of advertising with retailing as well as operations would come to be more difficult if the marketing department itself is disintegrated which can be another potential OB issue.

Reworking Office Space Industry City Brooklyn Analysis

Different theories have actually been made use of to clarify the situations to get more quality concerning the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors believe that staffs are easy and careless, have little ambition and resist change. The circumstance at Reworking Office Space Industry City Brooklyn is not entirely following Concept X, it can be seen that new hires are discovering this setting rather demanding which might eventually lead to a greater disposition of the administration in the direction of Theory X. Even while evaluating Lewis's administration design, concept X might have been ideal in the operations department to some level however the Advertising division would require dependence on Concept Y in order to obtain the creativity as well as creativity from the groups.

Tuckman's Team effort Theory: As far as Lewis's worry regarding bringing harmony between the advertising and marketing department is concerned, this would originally lead to contrast as talked about by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, throughout the first phase of group development, individuals might not bond, as they are active locating their area in the group. By integrating the advertising and marketing division's job, there may coincide first detach which might result in the 2nd phase of 'storming' where the teams test one another. It is just throughout the 3rd stage or 'norming' when they would certainly come with each other to share suggestions prior to the team can bring about synergy in the fourth phase 'performing'.

Bridges' Change Design: According To William Bridge's concept (appendix 4), people are rather unpleasant with change, which is evident by the situation at Reworking Office Space Industry City Brooklyn The circumstance can be seen as a regular program of life if is examined according to Bridge's concept where he explains that people go through three phases of transition when they experience adjustment. 'Ending, shedding and Releasing', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When individuals exist with change, they go into stage one and so there might be feelings like unhappiness, unpredictability, disappointment, rage, anxiety, denial and disorientation.The situation at the advertising division of Reworking Office Space Industry City Brooklyn is comparable so Lewis can get comfy with the idea that it is not amazing habits. In the second phase, there may be a requirement to connect the void between the brand-new and also old culture so Lewis may need to encounter this challenge once Krasnow leaves. There might be reduced spirits as well as low efficiency at this stage which should not be taken as a setback. It is throughout this phase that Lewis will have to provide guidance to the department to ensure that they can find a sense of direction. It can be seen how Krasnow has currently made this change less complicated by making Lewis get associated with the division a year prior to his real departure. As per Bridges' Design, stage 3 will certainly cause openness to understanding, High energy as well as commitment as people will accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Requirement pecking order: The OB issue pertaining to insecurity at the work environment has actually been triggered to start with by the change in management and secondly by the fact that the merger will certainly no longer be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has discusses the significance of 'protection requires as being a reduced degree need of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to feel secure and unharmed' is at the second level of demands. Prior to a staff member can be made to develop psychologically, he requires to have his 'Physical 'and also 'Security' needs satisfied. This shows that unless the personnel are made to feel safe and secure about their existing work standing in Reworking Office Space Industry City Brooklyn they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Reworking Office Space Industry City Brooklyn Case Study



Effects of Analysis.

The OB analysis has actually looked at various theories to understand how to handle the current scenario handy. The adhering to 3 alternatives have actually been suggested to assist Lewis deal with the organizational obstacles in the advertising and marketing division. Each of these alternatives has been suggested for relieving the shift required to bring the advertising and marketing department in line with the needs of the market and for making the social change that would follow as soon as the present leader leaves.

Integration of advertising and marketing features. Dividing Adverting and also Manufacturing features. Integration of Marketing with Workflow.

Analysis of Alternatives.

Integration of Advertising & Advertising Functions: The internal advertising and marketing firm of Reworking Office Space Industry City Brooklyn is currently strength for the company in regards to saving up on expenses connected to marketing and also promo. Given that no new employment has actually been done after Bridget Cole's departure with the reporting line being directly appointed to Krasnow for the advertising function, this is a beneficial chance for incorporating the marketing and advertising functions. Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merging days has experience in business-to-business marketing in addition to firm and also retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to manage both marketing and advertising features.

The benefit of this method is that it will incorporate the two functions while minimizing the demand for employing an additional resource for marketing. Lewis would be heading the marketing division as well as in any case her replacement would be required for the present role that she is executing. The negative aspect of this alternative is that exterior hiring might bring about animosity from interior personnel that may be looking at the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting as well as Manufacturing: Offered the affordable pressures as well as excellent quality job required from the advertising agency, it is advised that Lewis should enable the production unit to be a separate feature from the marketing system. Given that most advertising agencies had these 2 features as separate systems, it makes more sense to follow the norm. Along with this, both functions might have the ability to concentrate on their core triggers much more efficiently. However, the disadvantage of this technique would be that additional prices would certainly need to be borne for establishing different production functions. Along with this, a production head may have to be employed which could raise expenses for the company.

Assimilation of Advertising And Marketing with Procedures: Given that Lewis is currently taking treatment of the marketing and also operations departments all at once; it makes feeling to incorporate the two functions given that she has actually been efficiently taking care of both ends. The reality that Lewis has to adapt her monitoring design for the advertising and marketing department suggests that these two departments would be culturally diverse.

Suggestion.



An analysis of the 3 alternatives indicates that integration of advertising and marketing and also operations would certainly not be a feasible relocation due to the substantial differences in between the 2 divisions in spite of the reality that presently Lewis is managing both. While separation of the manufacturing function might have been a beneficial relocation for the marketing division, the reality that it would mean positioning a third function under Lewis's wing suggests this ought to be prevented.

Action Strategy.
Recommendation
Lewis will take over the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

Production function will remain component of advertising and marketing under advertising and marketing feature.

Lewis will certainly separate herself from operations.

A democratic leadership design with staff member empowerment will be used in advertising and marketing division.

Open door policy and focus on cross department interaction will certainly be targeted at getting rid of dissonance.

Backup strategy.

If the integration does not work out as planned, a backup strategy would certainly comply with which would certainly separate the manufacturing function from the marketing feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the advertising and marketing division without an SVP. Because case the production function will most definitely be separated by placing it under an SVP manufacturing.