Salem Telephone Co Case Study Solution


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Salem Telephone Co Case Study Analysis

Background and Facts

Salem Telephone Co an office materials retailer for small as well as moderate sized businesses has lately been involved in preparing for a merger with its rival Residence Deport, which has impacted effectiveness degrees in departmentswith the elderly supervisor involved in legal difficulties put forth by the government Trade Payment. With the Marketing Head putting forward 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 function in the future. With obstacles in the form of a possible social adjustment and reduced worker spirits, the organization requires a full reengineering initiative at the advertising division.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective social adjustment at the advertising and marketing division of Salem Telephone Co is increasing unpredictability in the working environment leading to different difficulties for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting calculated decisions considering that Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Profession Payment's intervention at the same time. Given the fact that the store has an international presence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these nations may have the ability to impact performance or tactical goals. Federal Trade Payment's antitrust suit versus the merger occupied beneficial time of the organization's senior administration suggesting that 'political' factors can have significant implications for an international organisation.

Economic Factors: Economic factors such as the appearance of small businesses in the international scenario recommend that Salem Telephone Co is flourishing in an atmosphere where there is possible growth of services. In addition to this, reality that store clients are mostly looking for office materials for office suggests that the marketplace has an increasing trend of business owners and also online organisations.

Social factors: Social patterns in the economic situation show that customers are trying to find comfort as well as eye-catching rates. Marketing research shows how the client for Salem Telephone Co lacks recognition concerning locating remedies which can provide a mix of comfort as well as affordable.

Technical factors: Modern technology plays a vital duty in Salem Telephone Co's company strategy specifically as the company is piloting Modern technology centers which would offer technology sales as well as support in the form of memory upgrades, outer installations. (Recap of BUG in appendix 2).

OB Issues as well as Symptoms.

Several underlying Business Habits concerns can be seen in Salem Telephone Co's case as highlighted in this area.

Apprehensions regarding cultural adjustment: There is concern about a social change that would happen as soon as Todd Krasnow leaves from his setting as the Executive Vice President of Advertising And Marketing with most of the team member currently showing discontent over this prospective relocation. This predicted modification has created anxiety in the workplace which has actually been paired with the past tension of preparing the firm for a potential merger with House Deport.
Pest Analysis
Stressful Task Environment for Newcomers: There is scarcity of workers that can match the demanding environment of a busy organization. Not only does this lead to problem in finding the right people, it places tension on new hires as can not hold up against the pace and also stress that the organization anticipates them to bear.

Twin Reporting Lines: Beginners discover this business culture troublesome as well as tough to deal with specifically as populated line partnerships are implied to be weaker in general and also objective setting and also performance examination is still done by the solid line supervisor. This indicates that beginners can lose clearness about their particular functions as well as objectives specifically as populated line coverage does not maintain them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had been speculated that the last would take Krasnow's placement came as a blow to her spirits. Lewis might have been qualified as well as proper for the job but the fact that Kransnow's separation would make Coles a straight report to Lewis may have been the reason for Coles' resignation from services.

Worry & Task Instability: Concern and insecurity can be identified as two significant issues that Lewis would certainly be taking care of particularly as the merging has now be terminated and 2 senior execs of the advertising and marketing department would be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders that would not just be in charge of brining about a cultural adjustment but would certainly likewise have to verify herself in her new role.

Incompatible Administration Style of Leader: Lewis's administration design and its conflict with the marketing division's duty can likewise be seen as an OB challenge specifically as she has been utilized to dealing with concerns in the procedures division where employees are shown to focus on processes and get them right. The marketing department on the other hand can be seen as a team of people who are utilized to being supported by Krasnow that focused extra on output than processes.

Interdepartmental Disputes: Interdepartmental arguments between 3 departments, advertising and marketing, merchandizing and procedures specifically over the allocation of the advertising and marketing mix can be determined as another OB concern. Although the advertising department does not share the exact same vision as the various other 2 departments pertaining to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing as well as operations departments do not agree over the advertising mix appropriation amongst each other either.

Disintegration in Advertising Department: Disintegration between the advertising and marketing departments can be determined as an additional OB problem which can need additional interest. The fact that the advertising and marketing sections in the marketing division are detached is avoiding both departments from obtaining from each various other's experience and also expertise. Integration of marketing with retailing as well as procedures would certainly become more difficult if the advertising and marketing department itself is broken down which can be another potential OB problem.

Salem Telephone Co Analysis

Numerous theories have been used to discuss the scenarios to obtain more clearness concerning the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that subordinates are passive as well as lazy, have little aspiration and resist adjustment. The tough version of this theory emphasized browbeating, tight controls, threats as well as punishments. Over time it produces low productivity, subtle sabotage and also competition (Bargain, 2003). The circumstance at Salem Telephone Co is not completely following Theory X, it can be seen that brand-new hires are locating this setting rather stressful which may at some point lead to a higher disposition of the monitoring towards Theory X. Based on McGregor's supported view, which he called Concept Y, the necessary job of the management is to organize business conditions to make sure that individuals can accomplish their own goals best by routing their efforts in the direction of business incentives. If people find no complete satisfaction in their job, the management would certainly have little option yet to count on theory X as well as outside control (Bargain, 2003). Also while evaluating Lewis's management design, theory X might have been suitable in the procedures department to some extent but the Advertising department would call for reliance on Theory Y in order to get the creative thinking and originality from the groups.

Tuckman's Teamwork Concept: As much as Lewis's concern about bringing consistency in between the marketing as well as advertising and marketing department is worried, this would at first lead to clash as discussed by Bruce Tuckman in his 'Synergy Theory'. By integrating the advertising and also advertising division's job, there might be the same preliminary detach which could lead to the 2nd stage of 'storming' where the groups challenge one an additional.

When individuals are provided with modification, they get in phase one and so there might be feelings like unhappiness, uncertainty, disappointment, temper, fear, denial and also disorientation.The situation at the advertising division of Salem Telephone Co is similar so Lewis can obtain comfortable with the concept that it is not amazing habits. It is during this phase that Lewis will certainly have to provide guidance to the department so that they can locate a sense of instructions. It can be seen how Krasnow has actually already made this change less complicated by making Lewis get involved in the department a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has reviews the relevance of 'safety and security requires as being a reduced level demand of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel safe and secure as well as out of risk' is at the 2nd level of demands. Prior to an employee can be made to develop psychologically, he requires to have his 'Physical 'and 'Safety' needs satisfied.

SWOT Analysis for Salem Telephone Co Case Study

Effects of Analysis.

The OB analysis has actually checked out different concepts to comprehend just how to cope with the existing scenario available. The adhering to 3 options have actually been recommended to help Lewis handle the organizational obstacles in the advertising division. Each of these options has actually been proposed for easing the shift required to bring the marketing department according to the demands of the market and also for making the cultural adjustment that would comply with once the current leader leaves.

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

Evaluation of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis throughout 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 manage both advertising and marketing functions.

The advantage of this approach is that it will incorporate the two features while reducing the requirement for hiring an added source for advertising. Lewis would certainly be heading the advertising and marketing division as well as in any kind of case her replacement would certainly be required for the present duty that she is carrying out. The negative aspect of this option is that exterior hiring might cause animosity from inner personnel who might be looking at the placement of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Manufacturing: Provided the affordable stress as well as top quality work required from the ad agency, it is suggested that Lewis should allow the manufacturing device to be a different feature from the advertising and marketing device. Since the majority of advertising agencies had these two functions as separate units, it makes more feeling to adhere to the norm. Both features may be able to concentrate on their core turns on more successfully. The drawback of this technique would be that extra prices would certainly have to be birthed for establishing up different manufacturing functions. A manufacturing head may have to be hired which could enhance overheads for the organization.

Assimilation of Advertising with Procedures: Since Lewis is already looking after the marketing and procedures divisions at the same time; it makes sense to incorporate both features since she has been effectively taking care of both ends. The truth that the two divisions currently have major differences over appropriation of sources recommends that this combination may have the ability to cause harmony specifically as Lewis would be heading both ends.However there are various negative aspects of this action particularly as it would place excessive problem over Lewis's shoulders. The reality that Lewis has to adapt her administration style for the marketing department suggests that these two divisions would be culturally varied. Lewis might not be able to use one kind of management style to both divisions which might result in inadequacy in either one of the two features.


An analysis of the 3 choices indicates that integration of advertising and marketing and operations would certainly not be a possible step as a result of the substantial differences in between the two departments despite the fact that presently Lewis is handling both. While splitting up of the production function may have been a positive relocation for the marketing division, the fact that it would certainly suggest positioning a 3rd feature under Lewis's wing indicates this must be prevented. The combination of the marketing division is the most effective alternative in terms of obtaining the optimal arise from the department. An action plan for this choice is reviewed below.

Action Plan.
Lewis will take over the role of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Manufacturing feature will continue to be component of advertising under advertising and marketing function.

Lewis will certainly separate herself from procedures.

A democratic management design with employee empowerment will be made use of in advertising and marketing division.

Open door policy as well as emphasis on cross departmental interaction will certainly be focused on eliminating disharmony.

Backup strategy.

If the assimilation does not work out as prepared, a contingency strategy would certainly follow which would certainly divide the production feature from the advertising feature to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the advertising and marketing division without an SVP. Because case the manufacturing function will definitely be divided by putting it under an SVP production.