Salem Telephone Co Case Study Analysis


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Background and Facts

Salem Telephone Co a workplace supplies merchant for tiny and also moderate sized services has lately been involved in planning for a merging with its rival Residence Deport, which has influenced performance degrees in departmentswith the elderly supervisor involved in legal problems presented by the government Profession Compensation. With the Advertising and marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the duty in the future. With difficulties in the type of a prospective cultural modification as well as low staff member spirits, the company is in need of a total reengineering effort at the advertising and marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible social modification at the marketing division of Salem Telephone Co is boosting uncertainty in the workplace bring about numerous difficulties 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 major duty in influencing critical choices since Stapes Inc. needed to abandon its plans of combining with Workplace Deport after the Federal Profession Commission's intervention at the same time. Given the reality that the shop has an international presence with branches in UK, U.S.A., Canada and Germany, political consider each of these nations may have the ability to impact efficiency or calculated goals. Federal Trade Commission's antitrust match against the merging used up beneficial time of the company's elderly management recommending that 'political' factors can have major effects for a worldwide business.

Economic Factors: Economic factors such as the introduction of local business in the global situation recommend that Salem Telephone Co is thriving in an atmosphere where there is possible development of services. Truth that store customers are mostly looking for office materials for residence workplaces recommends that the market has an increasing pattern of entrepreneurs and also home based organisations.

Social factors: Social fads in the economic situation reveal that customers are trying to find ease as well as attractive prices. Marketing research shows how the client for Salem Telephone Co lacks awareness about discovering remedies which can supply a combination of ease and also inexpensive.

Technical factors: Technology plays an important function in Salem Telephone Co's business method particularly as the organization is piloting Innovation facilities which would certainly use modern technology sales as well as assistance in the type of memory upgrades, outer setups. (Recap of INSECT in appendix 2).

OB Issues as well as Effects.

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

Uneasiness about social change: There is worry regarding a cultural adjustment that would occur once Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with a lot of the team member currently showing unhappiness over this prospective action. This expected change has actually produced tension in the workplace which has been coupled with the past stress of preparing the firm for a prospective merger with Residence Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is scarcity of personnel that can match the stressful atmosphere of a hectic company. Not only does this cause difficulty in locating the appropriate people, it places tension on new hires as can not endure the pace and also pressure that the organization expects them to birth.

Double Reporting Lines: Newcomers discover this organizational society troublesome as well as hard to manage specifically as dotted line connections are implied to be weaker in general as well as objective setting and performance evaluation is still done by the solid line supervisor. This suggests that novices might lose quality concerning their particular roles and objectives especially as populated line coverage does not maintain them in direct interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been guessed that the latter would certainly take Krasnow's setting came as an impact to her spirits. Lewis might have been capable as well as ideal for the job however the reality that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Worry & Task Instability: Fear and instability can be recognized as 2 significant worries that Lewis would certainly be managing especially as the merger has actually now be terminated and also two senior executives of the advertising department would be leaving. The entire obligation of the division would be dropping on Lewis's shoulders who would certainly not simply supervise of brining regarding a social adjustment but would certainly likewise need to show herself in her brand-new function.

Inappropriate Management Design of Leader: Lewis's management style and its conflict with the advertising and marketing department's function can also be seen as an OB obstacle particularly as she has been used to dealing with issues in the operations division where workers are shown to focus on procedures and get them right. The marketing department on the other hand can be seen as a team of people who are made use of to being nurtured by Krasnow that concentrated extra on outcome than processes.

Interdepartmental Differences: Interdepartmental disputes between 3 divisions, advertising and marketing, merchandizing as well as operations specifically over the allotment of the advertising mix can be recognized as one more OB worry. The advertising and marketing division does not share the exact same vision as the various other two departments regarding the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing as well as procedures divisions do not concur over the marketing mix allocation among one another either.

Fragmentation in Marketing Department: Disintegration in between the marketing and advertising divisions can be identified as another OB concern which can require more attention. The fact that the advertising and marketing areas in the marketing department are detached is preventing both divisions from obtaining from each various other's experience and know-how. Combination of advertising with merchandising and also operations would come to be more difficult if the advertising and marketing division itself is degenerated which can be an additional prospective OB concern.

Salem Telephone Co Analysis

Various theories have been made use of to clarify the conditions to get additional clearness regarding the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers believe that staffs are passive and careless, have little ambition and resist modification. The difficult version of this theory emphasized browbeating, limited controls, threats as well as penalties. In time it creates low productivity, subtle sabotage and competition (Deal, 2003). Although the scenario at Salem Telephone Co is not entirely complying with Theory X, it can be seen that new hires are discovering this environment instead demanding which may ultimately cause a greater disposition of the monitoring towards Theory X. Based on McGregor's promoted sight, which he called Theory Y, the crucial job of the administration is to prepare business conditions so that people can attain their very own objectives best by routing their initiatives in the direction of business rewards. If individuals discover no fulfillment in their job, the management would have little option but to count on theory X as well as exterior control (Bargain, 2003). Also while analyzing Lewis's management design, concept X may have appropriated in the operations division somewhat but the Advertising and marketing division would require reliance on Theory Y so as to get the imagination and also creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's worry concerning bringing harmony in between the advertising and marketing department is worried, this would initially result in conflict as reviewed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, during the initial stage of group advancement, people might not bond, as they are busy finding their place in the team. By incorporating the marketing and advertising division's job, there might be the same initial separate which might bring about the 2nd stage of 'storming' where the groups challenge 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 stage 'performing'.

When individuals are presented with modification, they go into stage one and also so there might be emotions like unhappiness, uncertainty, aggravation, anger, concern, denial and also disorientation.The scenario at the advertising and marketing division of Salem Telephone Co is similar so Lewis can get comfortable with the concept that it is not amazing habits. It is during this phase that Lewis will certainly have to give advice to the division so that they can locate a feeling of instructions. It can be seen exactly how Krasnow has currently made this transition less complicated by making Lewis get entailed in the department a year before his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has talks about the importance of 'security requires as being a reduced level demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel secure as well as out of threat' is at the 2nd level of requirements. Prior to an employee can be made to develop psychologically, he needs to have his 'Physiological 'as well as 'Security' requires satisfied.

SWOT Analysis for Salem Telephone Co Case Study

Effects of Analysis.

The OB analysis has taken a look at various concepts to comprehend just how to manage the existing circumstance available. The complying with three choices have actually been proposed to help Lewis take care of the organizational obstacles in the marketing division. Each of these choices has actually been suggested for relieving the shift required to bring the advertising and marketing department in accordance with the requirements of the market and also for making the social change that would adhere to once the current leader leaves.

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

Assessment of Alternatives.

Combination of Advertising & Advertising And Marketing Functions: The in-house advertising company of Salem Telephone Co is currently stamina for the organization in regards to saving up on overheads connected to advertising as well as promo. Given that no brand-new recruitment has been done after Bridget Cole's departure with the reporting line being directly designated to Krasnow for the marketing function, this is a favorable opportunity for incorporating the advertising and marketing features. Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merging days has experience in business-to-business marketing together with agency and also retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to handle both marketing and advertising functions.

The benefit of this method is that it will certainly incorporate the two functions while reducing the requirement for working with an additional source for advertising and marketing. In addition to this, Lewis would be heading the advertising department and also regardless her replacement would be needed for the present function that she is performing. The disadvantage of this option is that external hiring might cause resentment from internal workers who might be eying the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and Manufacturing: Provided the affordable stress and also high quality work needed from the advertising and marketing firm, it is recommended that Lewis should permit the production system to be a different feature from the marketing device. Given that many marketing firms had these two functions as different units, it makes more feeling to adhere to the norm.

Assimilation of Advertising And Marketing with Workflows: Because Lewis is already taking treatment of the advertising and marketing as well as procedures departments simultaneously; it makes sense to integrate the two functions since she has actually been successfully taking treatment of both ends. The fact that Lewis has to adapt her management design for the advertising and marketing department recommends that these two divisions would certainly be culturally varied.


An assessment of the three options suggests that combination of advertising as well as procedures would certainly not be a feasible move as a result of the large differences in between the two departments despite the fact that currently Lewis is dealing with both. While separation of the production feature might have been a beneficial relocation for the marketing department, the fact that it would mean putting a 3rd function under Lewis's wing indicates this must be prevented. The assimilation of the advertising and marketing department is the very best option in terms of obtaining the optimal results from the department. An action plan for this choice is gone over below.

Action Strategy.
Lewis will take control of the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Manufacturing feature will certainly stay part of marketing under advertising and marketing feature.

Lewis will divide herself from operations.

A democratic leadership design with staff member empowerment will certainly be made use of in marketing department.

Open door plan as well as emphasis on cross departmental communication will certainly be aimed at getting rid of discord.

Contingency strategy.

If the integration does not work out as intended, a contingency plan would comply with which would divide the manufacturing function from the marketing feature to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising and marketing department without an SVP. In that case the manufacturing feature will definitely be divided by positioning it under an SVP production.