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Salem Telephone Co Case Study Analysis

CASE ANALYSIS

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Background and Facts

Salem Telephone Co a workplace supplies retailer for small and also moderate sized services has actually lately been associated with preparing for a merging with its rival House Deport, which has influenced effectiveness levels in departmentswith the elderly manager involved in lawful issues put forth by the federal Profession Payment. With the Advertising Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the current head of procedures has been asked to take the duty in the near future. With difficulties in the form of a prospective cultural change as well as reduced worker spirits, the company needs a total reengineering initiative at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible social modification at the advertising and marketing department of Salem Telephone Co is boosting uncertainty in the working environment resulting in various 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 duty in influencing calculated decisions given that Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Profession Commission's intervention while doing so. Given the truth that the store has an international visibility with branches in UK, USA, Canada as well as Germany, political factors in each of these countries might have the ability to impact performance or tactical objectives. Federal Trade Commission's antitrust fit against the merger used up beneficial time of the organization's senior management recommending that 'political' factors can have major ramifications for a worldwide service.

Economic Factors: Economic factors such as the emergence of small companies in the international circumstance suggest that Salem Telephone Co is thriving in a setting where there is potential growth of businesses. Fact that shop customers are primarily looking for office materials for residence workplaces suggests that the market has a rising pattern of entrepreneurs and also home based businesses.

Social factors: Social trends in the economic climate show that consumers are looking for comfort along with attractive rates. Marketing research shows how the consumer for Salem Telephone Co lacks recognition regarding locating solutions which can offer a combination of convenience and also affordable.

Technical factors: Modern technology plays a vital duty in Salem Telephone Co's business strategy especially as the organization is piloting Modern technology facilities which would supply modern technology sales as well as assistance in the kind of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues and Manifestations.

Several underlying Business Behavior issues can be seen in Salem Telephone Co's case as highlighted in this section.

Concerns concerning cultural adjustment: There is apprehension about a cultural change that would certainly happen as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising And Marketing with the majority of the staff members already revealing discontent over this potential relocation. This anticipated adjustment has created anxiety in the office which has actually been combined with the previous anxiety of preparing the firm for a potential merging with Residence Deport.
Pest Analysis
Stressful Job Atmosphere for Newcomers: There is scarcity of employees that can match the difficult atmosphere of a hectic organization. Not only does this result in problem in discovering the appropriate individuals, it puts tension on brand-new hires as can not hold up against the rate as well as pressure that the company expects them to bear.

Double Reporting Lines: Novices find this organizational society troublesome as well as challenging to manage particularly as populated line relationships are meant to be weak as a whole and also unbiased setup and also performance examination is still done by the strong line manager. This means that novices could lose clarity about their respective roles as well as objectives particularly as dotted line reporting does not maintain them in straight communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had been hypothesized that the last would certainly take Krasnow's position came as an impact to her morale. Lewis may have been qualified and appropriate for the task however the truth that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the reason for Coles' resignation from solutions.

Anxiety & Job Insecurity: Fear and instability can be identified as 2 significant worries that Lewis would be taking care of particularly as the merging has actually now be cancelled and two elderly execs of the advertising department would certainly be leaving. The entire responsibility of the department would be dropping on Lewis's shoulders who would certainly not simply supervise of brining regarding a social change but would certainly additionally need to verify herself in her new duty.

Incompatible Monitoring Style of Leader: Lewis's monitoring style as well as its conflict with the marketing division's function can also be seen as an OB obstacle especially as she has been utilized to managing concerns in the procedures department where employees are educated to focus on processes and also get them right. The marketing department on the various other hand can be viewed as a team of people that are used to being supported by Krasnow that concentrated more on output than procedures.

Interdepartmental Differences: Interdepartmental arguments between 3 divisions, advertising, merchandizing and procedures specifically over the allowance of the advertising and marketing mix can be identified as an additional OB issue. Although the advertising department does not share the same vision as the various other 2 divisions concerning the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and procedures divisions do not agree over the advertising mix allowance among one another either.

Disintegration in Advertising Department: Fragmentation in between the advertising and marketing divisions can be determined as one more OB concern which might require additional attention. The fact that the advertising and marketing sections in the advertising and marketing department are detached is stopping both departments from gaining from each various other's experience as well as proficiency. Integration of marketing with retailing and procedures would certainly come to be harder if the marketing division itself is broken down which can be an additional possible OB concern.

Salem Telephone Co Analysis

Numerous concepts have been utilized to describe the situations to get more quality concerning the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers think that juniors are easy as well as careless, have little aspiration as well as resist modification. The hard variation of this concept emphasized threat, limited controls, hazards and also penalties. With time it generates low performance, subtle sabotage as well as rivalry (Deal, 2003). Although the scenario at Salem Telephone Co is not totally adhering to Theory X, it can be seen that brand-new hires are discovering this atmosphere instead demanding which might eventually bring about a higher disposition of the management towards Concept X. Based on McGregor's promoted view, which he called Theory Y, the vital task of the management is to set up business problems so that individuals can accomplish their very own goals best by guiding their efforts towards organizational incentives. If people discover no satisfaction in their job, the monitoring would have little choice however to rely on theory X and also external control (Bargain, 2003). Even while examining Lewis's monitoring style, theory X may have appropriated in the procedures department somewhat yet the Advertising and marketing department would require reliance on Concept Y to get the creative thinking as well as originality from the groups.

Tuckman's Teamwork Concept: As far as Lewis's concern about bringing harmony between the marketing and also marketing division is concerned, this would at first lead to contrast as gone over by Bruce Tuckman in his 'Teamwork Concept'. By incorporating the advertising and marketing and marketing department's work, there might be the same first disconnect which might lead to the second phase of 'storming' where the groups test one an additional.

When people are provided with modification, they get in phase one and so there might be emotions like despair, uncertainty, frustration, anger, fear, rejection and disorientation.The scenario at the advertising and marketing division of Salem Telephone Co is comparable so Lewis can obtain comfy with the idea that it is not phenomenal behavior. It is during this phase that Lewis will certainly have to give support to the division so that they can find a feeling of instructions. It can be seen how Krasnow has already made this shift much easier by making Lewis get entailed in the department a year prior to his real departure.
Vrio Analysis
Maslow's Need pecking order: The OB concern related to insecurity at the workplace has been triggered first of all by the change in management and second of all by the truth that the merger will no more be started. Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has reviews the relevance of 'safety and security requires as being a reduced level requirement of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the demand to really feel safe as well as untouched' is at the 2nd level of demands. Before a worker can be made to establish mentally, he needs to have his 'Physical 'and 'Security' requires fulfilled. This shows that unless the workers are made to feel secure regarding their current work condition in Salem Telephone Co they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Salem Telephone Co Case Study



Implication of Analysis.

The OB analysis has checked out numerous theories to understand just how to deal with the current situation at hand. The following three options have actually been recommended to assist Lewis handle the organizational challenges in the advertising and marketing division. Each of these alternatives has been proposed for relieving the shift needed to bring the advertising and marketing division in accordance with the needs of the marketplace as well as for making the social change that would comply with as soon as the existing leader leaves.

Integration of marketing and advertising features. Separating Adverting as well as Production functions. Integration of Advertising with Procedures.

Assessment of Alternatives.

Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merging days has proficiency in business-to-business marketing along with agency and also retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to manage both advertising and marketing and marketing features.

The benefit of this method is that it will integrate the two features while decreasing the need for hiring an additional source for marketing. Along with this, Lewis would be heading the advertising and marketing department as well as in any case her substitute would certainly be needed for the existing role that she is doing. The downside of this choice is that external hiring might bring about bitterness from inner workers that might be eying the placement of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and also Production: Provided the affordable pressures as well as high top quality work called for from the advertising firm, it is recommended that Lewis must allow the manufacturing unit to be a separate feature from the advertising and marketing device. Given that most advertising agencies had these 2 functions as different devices, it makes even more feeling to adhere to the standard.

Integration of Advertising with Procedures: Since Lewis is already looking after the marketing and also procedures departments simultaneously; it makes good sense to integrate the two functions because she has been effectively caring for both ends. The truth that both divisions already have significant differences over appropriation of sources suggests that this assimilation may have the ability to cause harmony especially as Lewis would certainly be heading both ends.However there are various downsides of this move particularly as it would place excessive concern over Lewis's shoulders. The reality that Lewis needs to adapt her administration style for the advertising and marketing division suggests that these 2 departments would certainly be culturally varied. Lewis might not be able to apply one kind of management style to both divisions which could result in ineffectiveness in either one of the 2 features.

Suggestion.



An assessment of the 3 choices suggests that integration of advertising and marketing and also procedures would certainly not be a practical move due to the huge distinctions in between the 2 divisions despite the reality that currently Lewis is dealing with both. While separation of the manufacturing function may have been a positive move for the advertising division, the truth that it would imply positioning a third function under Lewis's wing indicates this need to be stayed clear of.

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

Marketing and advertising functions would be combined.

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

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

Lewis will certainly divide herself from procedures.

An autonomous management style with worker empowerment will be used in advertising division.

Open door policy as well as focus on cross departmental communication will certainly be focused on eliminating disharmony.

Backup strategy.

If the integration does not work out as prepared, a backup strategy would certainly comply with which would separate the production feature from the advertising feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising and marketing department without an SVP. In that case the production feature will definitely be separated by placing it under an SVP production.