Riverbend Telephone Company Case Study Solution


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Riverbend Telephone Company Case Study Analysis

Background and Facts

Riverbend Telephone Company an office materials merchant for little as well as moderate sized businesses has just recently been associated with preparing for a merging with its rival Residence Deport, which has affected efficiency degrees in departmentswith the senior supervisor involved in lawful difficulties presented by the government Profession Commission. With the Advertising and marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the role in the near future. With difficulties in the kind of a possible cultural adjustment as well as low worker spirits, the company requires a total reengineering initiative at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible social change at the advertising department of Riverbend Telephone Company is boosting unpredictability in the workplace leading to various obstacles for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing calculated choices given that Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Trade Commission's treatment at the same time. Offered the truth that the store has a worldwide presence with branches in UK, U.S.A., Canada and also Germany, political consider each of these nations may have the ability to affect efficiency or tactical goals. Federal Profession Payment's antitrust suit versus the merging used up valuable time of the organization's elderly management suggesting that 'political' factors can have significant implications for an international company.

Economic Factors: Financial factors such as the development of local business in the international circumstance recommend that Riverbend Telephone Company is prospering in an environment where there is possible growth of organisations. In addition to this, truth that store consumers are mainly searching for office products for home offices recommends that the market has an increasing fad of business owners and home organisations.

Social factors: Social fads in the economic situation reveal that customers are seeking convenience as well as attractive rates. Marketing research shows how the consumer for Riverbend Telephone Company does not have awareness about locating remedies which can offer a combination of ease and also low costs.

Technological factors: Technology plays a crucial duty in Riverbend Telephone Company's organisation method particularly as the organization is piloting Innovation facilities which would certainly offer modern technology sales and also assistance in the kind of memory upgrades, outer setups. (Recap of PARASITE in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Organizational Behavior problems can be seen in Riverbend Telephone Company's case as highlighted in this area.

Apprehensions regarding cultural change: There is worry concerning a social change that would certainly happen once Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with the majority of the employee currently showing discontent over this prospective move. This anticipated modification has actually produced tension in the workplace which has actually been combined with the past stress and anxiety of preparing the company for a potential merging with Residence Deport.
Pest Analysis
Stressful Job Atmosphere for Newcomers: There is lack of employees that can match the difficult setting of a busy company. Not just does this cause difficulty in finding the appropriate individuals, it places stress and anxiety on brand-new hires as can not withstand the pace and also pressure that the company anticipates them to bear.

Dual Reporting Lines: Novices discover this organizational society cumbersome and difficult to deal with specifically as dotted line relationships are suggested to be weaker generally as well as unbiased setting and also performance examination is still done by the strong line manager. This suggests that novices might shed clearness about their particular functions and also goals particularly as populated line reporting does not maintain them in straight communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had been guessed that the latter would take Krasnow's placement came as an impact to her spirits. Lewis may have been qualified as well as ideal for the job however the truth that Kransnow's separation would make Coles a direct record to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Task Instability: Anxiety and insecurity can be recognized as 2 significant problems that Lewis would be managing especially as the merging has now be cancelled as well as 2 senior executives of the advertising and marketing department would certainly be leaving. The whole duty of the department would be dropping on Lewis's shoulders who would not just supervise of brining regarding a cultural change however would certainly likewise have to prove herself in her brand-new duty.

Incompatible Management Style of Leader: Lewis's monitoring style and its conflict with the advertising department's function can also be seen as an OB challenge particularly as she has been made use of to dealing with concerns in the operations division where employees are taught to focus on procedures and also obtain them right. The marketing division on the various other hand can be viewed as a team of individuals that are made use of to being nurtured by Krasnow who focused much more on output than procedures.

Interdepartmental Disputes: Interdepartmental disagreements between 3 divisions, marketing, merchandizing and operations specifically over the allocation of the advertising and marketing mix can be identified as another OB worry. Although the advertising and marketing division does not share the same vision as the other 2 divisions relating to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and also procedures departments do not agree over the marketing mix allowance among each other either.

Disintegration in Advertising Division: Fragmentation in between the marketing and advertising departments can be determined as one more OB issue which can require further focus. The reality that the marketing and advertising areas in the advertising division are separated is avoiding both departments from gaining from each various other's experience as well as competence. Assimilation of advertising with merchandising and operations would certainly become harder if the advertising division itself is disintegrated which can be another possible OB worry.

Riverbend Telephone Company Analysis

Different theories have actually been made use of to clarify the circumstances to obtain more clarity about the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors think that juniors are passive and also lazy, have little passion and stand up to adjustment. The situation at Riverbend Telephone Company is not entirely adhering to Theory X, it can be seen that new hires are discovering this atmosphere instead difficult which may ultimately lead to a greater inclination of the management towards Theory X. Also while evaluating Lewis's monitoring style, theory X may have been appropriate in the operations division to some extent yet the Advertising and marketing department would need dependence on Concept Y in order to get the creativity and originality from the groups.

Tuckman's Teamwork Theory: As for Lewis's worry regarding bringing harmony between the marketing and advertising department is worried, this would at first bring about clash as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, during the first stage of group advancement, people might not bond, as they are active discovering their area in the group. By combining the marketing and advertising department's job, there may coincide preliminary separate which might result in the 2nd stage of 'storming' where the groups challenge one another. Nevertheless, it is just during the 3rd phase or 'norming' when they would come together to share suggestions before the team can produce synergy in the fourth phase 'doing'.

Bridges' Shift Model: As per William Bridge's concept (appendix 4), people are rather unpleasant with change, which is noticeable by the scenario at Riverbend Telephone Company The situation can be seen as a typical training course of life if is researched based on Bridge's concept where he discusses that individuals go through 3 phases of shift when they experience adjustment. 'Closing, losing as well as Letting go', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When individuals are presented with change, they get in stage one therefore there may be emotions like sadness, unpredictability, frustration, rage, fear, rejection as well as disorientation.The circumstance at the advertising and marketing department of Riverbend Telephone Company is similar so Lewis can obtain comfortable with the suggestion that it is not phenomenal actions. In the 2nd phase, there may be a need to connect the gap between the brand-new and old culture so Lewis might need to face this challenge when Krasnow leaves. There may be low spirits and reduced performance at this stage which need to not be taken as a setback. It is throughout this stage that Lewis will have to offer guidance to the department to make sure that they can locate a sense of direction. It can be seen exactly how Krasnow has already made this shift simpler by making Lewis get associated with the department a year prior to his real departure. According to Bridges' Design, stage three will produce openness to understanding, High power and commitment as individuals will certainly welcome the modification (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB issue pertaining to instability at the work environment has been activated to start with by the modification in administration and secondly by the fact that the merger will certainly no longer be launched. Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has goes over the value of 'safety requires as being a reduced degree demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel protected and also unharmed' goes to the second level of requirements. Prior to a staff member can be made to develop emotionally, he needs to have his 'Physiological 'and 'Security' needs satisfied. This suggests that unless the workers are made to feel safe and secure concerning their present employment standing in Riverbend Telephone Company they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Riverbend Telephone Company Case Study

Ramification of Analysis.

The OB analysis has actually taken a look at numerous theories to recognize just how to manage the existing circumstance handy. The following 3 alternatives have actually been suggested to help Lewis manage the organizational difficulties in the marketing division. Each of these choices has been proposed for easing the transition required to bring the marketing division in line with the needs of the market and also for making the social change that would comply with when the existing leader leaves.

Integration of marketing and advertising features. Dividing Adverting and also Production functions. Integration of Advertising And Marketing with Procedures.

Analysis of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis during the earlier merging days has knowledge in business-to-business advertising along with agency and also retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both marketing as well as marketing features.

The benefit of this technique is that it will certainly integrate the two features while reducing the requirement for employing an additional resource for advertising and marketing. Lewis would be heading the advertising department and in any type of case her substitute would certainly be needed for the present function that she is carrying out. The drawback of this alternative is that external hiring might produce bitterness from inner employees that might be looking at the placement of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Production: Offered the competitive stress and top quality work needed from the advertising agency, it is recommended that Lewis ought to permit the manufacturing unit to be a different function from the advertising unit. Since a lot of advertising agencies had these 2 features as separate units, it makes more sense to comply with the standard. Both functions may be able to focus on their core activates more successfully. The downside of this strategy would be that additional costs would certainly have to be birthed for establishing up separate production features. In addition to this, a production head may need to be worked with which might increase expenses for the organization.

Combination of Marketing with Operations: Because Lewis is currently caring for the marketing and also operations divisions all at once; it makes good sense to integrate both features considering that she has actually been successfully dealing with both ends. The fact that both departments currently have major distinctions over appropriation of sources recommends that this integration may be able to produce consistency especially as Lewis would be heading both ends.However there are various disadvantages of this relocation especially as it would certainly put way too much worry over Lewis's shoulders. The fact that Lewis needs to adapt her administration design for the advertising and marketing division recommends that these two divisions would be culturally diverse. Along with this, Lewis may not have the ability to use one kind of leadership style to both divisions which could result in inefficiency in either one of the two features.


An assessment of the 3 options shows that integration of advertising and marketing and also operations would certainly not be a possible action as a result of the substantial distinctions in between both departments despite the fact that currently Lewis is taking care of both. While splitting up of the production function might have been a desirable move for the marketing department, the truth that it would mean putting a 3rd feature under Lewis's wing suggests this ought to be avoided. The combination of the advertising and marketing division is the most effective alternative in terms of getting the ideal arise from the department. An action prepare for this option is reviewed below.

Activity Strategy.
Lewis will take control of the role of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would be combined.

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

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

Lewis will certainly divide herself from operations.

A democratic leadership design with worker empowerment will be utilized in marketing department.

Open door policy as well as focus on cross department interaction will be focused on removing dissonance.

Contingency plan.

If the assimilation does not work out as planned, a backup strategy would follow which would divide the production function from the marketing function to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the marketing division without an SVP. Because case the manufacturing feature will definitely be separated by putting it under an SVP production.