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Science Technology Co 1985 Case Study Analysis

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Science Technology Co 1985 Case Study Solution

Background and Facts

Science Technology Co 1985 an office products seller for little and also moderate sized organisations has actually lately been associated with preparing for a merging with its rival Home Deport, which has affected effectiveness levels in departmentswith the senior manager involved in lawful complications put forth by the federal Profession Payment. With the Advertising and marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the duty in the future. With challenges in the form of a potential social change as well as low staff member spirits, the company requires a total reengineering effort at the advertising and marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The possible social modification at the advertising and marketing division of Science Technology Co 1985 is enhancing unpredictability in the workplace resulting in numerous obstacles for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing strategic decisions considering that Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Trade Payment's treatment while doing so. Provided the reality that the shop has a global existence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these countries might be able to impact efficiency or calculated objectives. Federal Profession Payment's antitrust match against the merging took up important time of the company's senior monitoring recommending that 'political' factors can have severe implications for an international company.

Economic Factors: Financial factors such as the emergence of small companies in the international circumstance recommend that Science Technology Co 1985 is prospering in an atmosphere where there is prospective development of services. Truth that store clients are mainly looking for workplace materials for residence workplaces recommends that the market has a rising pattern of business owners and home based services.

Social factors: Social trends in the economy show that consumers are seeking benefit along with appealing rates. Marketing research shows how the customer for Science Technology Co 1985 lacks understanding regarding discovering solutions which can offer a combination of benefit and inexpensive.

Technological factors: Modern technology plays an essential function in Science Technology Co 1985's service technique especially as the company is piloting Modern technology centers which would supply modern technology sales and also assistance in the type of memory upgrades, peripheral installations. (Summary of INSECT in appendix 2).

OB Issues and Symptoms.

Several underlying Organizational Behavior concerns can be seen in Science Technology Co 1985's case as highlighted in this area.

Worries regarding cultural adjustment: There is worry about a social adjustment that would certainly happen once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising And Marketing with most of the staff members already showing unhappiness over this possible action. This predicted adjustment has created anxiety in the workplace which has been paired with the past anxiety of preparing the company for a prospective merging with Home Deport.
Pest Analysis
Demanding Work Atmosphere for Newcomers: There is shortage of workers that can match the difficult environment of a hectic organization. Not only does this result in trouble in finding the ideal individuals, it puts anxiety on brand-new hires as can not withstand the pace as well as stress that the organization expects them to bear.

Double Coverage Lines: Newbies locate this business culture troublesome as well as tough to cope with particularly as populated line partnerships are meant to be weak generally and unbiased setting as well as efficiency assessment is still done by the solid line manager. This indicates that beginners can lose clearness concerning their corresponding functions and also objectives especially as populated line coverage does not keep them in straight communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been speculated that the last would certainly take Krasnow's setting came as an impact to her spirits. Lewis may have been capable and proper for the task however the fact that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Work Insecurity: Concern as well as instability can be determined as two major concerns that Lewis would certainly be managing especially as the merger has actually currently be cancelled as well as two elderly execs of the advertising and marketing division would be leaving. The entire obligation of the department would be dropping on Lewis's shoulders that would not just supervise of brining about a social adjustment however would certainly also have to confirm herself in her new function.

Incompatible Administration Design of Leader: Lewis's administration design and also its incompatibility with the advertising and marketing division's function can additionally be viewed as an OB challenge particularly as she has actually been used to managing issues in the procedures division where employees are educated to focus on processes as well as obtain them right. The advertising and marketing department on the various other hand can be seen as a group of people that are used to being nurtured by Krasnow who focused more on outcome than processes.

Interdepartmental Arguments: Interdepartmental arguments in between three divisions, advertising and marketing, merchandizing and operations specifically over the allocation of the advertising mix can be determined as another OB problem. Although the marketing division does not share the exact same vision as the other two departments regarding the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and operations departments do not agree over the advertising and marketing mix allotment among each other either.

Fragmentation in Marketing Division: Fragmentation between the advertising and marketing divisions can be determined as one more OB concern which can need more interest. The truth that the advertising and marketing areas in the marketing division are detached is preventing both departments from getting from each various other's experience as well as competence. Assimilation of advertising and marketing with merchandising and procedures would become harder if the advertising department itself is disintegrated which can be an additional possible OB concern.

Science Technology Co 1985 Analysis

Different concepts have been utilized to discuss the situations to obtain more quality about the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that subordinates are passive as well as careless, have little ambition and stand up to modification. The tough variation of this theory highlighted threat, tight controls, dangers as well as penalties. Gradually it produces low productivity, subtle sabotage as well as rivalry (Offer, 2003). The scenario at Science Technology Co 1985 is not completely complying with Theory X, it can be seen that new hires are discovering this setting instead difficult which may at some point lead to a greater disposition of the administration towards Concept X. Based on McGregor's supported sight, which he called Theory Y, the important job of the monitoring is to arrange business problems to ensure that people can accomplish their own objectives best by routing their efforts in the direction of business rewards. If people discover no complete satisfaction in their job, the management would have little selection yet to depend on theory X and outside control (Bargain, 2003). Also while analyzing Lewis's management style, theory X may have been suitable in the operations division somewhat yet the Advertising and marketing division would certainly need reliance on Theory Y to get the creative thinking and originality from the teams.

Tuckman's Team effort Theory: Regarding Lewis's worry regarding bringing harmony in between the marketing and advertising division is worried, this would originally result in conflict as reviewed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, throughout the preliminary phase of team development, individuals might not bond, as they are busy finding their location in the team. By combining the marketing and advertising department's job, there might be the same preliminary detach which might cause the second phase of 'storming' where the groups test one another. However, it is only throughout the third phase or 'norming' when they would certainly integrate to share ideas before the group can bring about harmony in the fourth stage 'doing'.

When individuals are provided with change, they enter stage one and so there may be feelings like unhappiness, unpredictability, irritation, temper, worry, rejection as well as disorientation.The scenario at the marketing division of Science Technology Co 1985 is similar so Lewis can get comfy with the suggestion that it is not remarkable habits. It is during this phase that Lewis will have to give assistance to the division so that they can locate a feeling of direction. It can be seen just how Krasnow has actually currently made this shift easier by making Lewis get included in the division a year prior to his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has discusses the significance of 'safety requires as being a reduced degree demand of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel safe and secure as well as out of risk' is at the 2nd degree of requirements. Prior to an employee can be made to develop psychologically, he needs to have his 'Physical 'and also 'Safety' needs met.

SWOT Analysis for Science Technology Co 1985 Case Study



Implication of Analysis.

The OB analysis has taken a look at various theories to understand just how to manage the present scenario handy. The complying with 3 options have actually been recommended to aid Lewis deal with the organizational difficulties in the marketing division. Each of these alternatives has been recommended for alleviating the transition required to bring the advertising department according to the demands of the marketplace and for making the cultural adjustment that would certainly adhere to when the existing leader leaves.

Assimilation of advertising and marketing features. Separating Adverting as well as Manufacturing functions. Assimilation of Advertising And Marketing with Workflow.

Analysis of Alternatives.

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

The benefit of this strategy is that it will integrate both functions while minimizing the requirement for working with an added source for advertising and marketing. Along with this, Lewis would be heading the advertising department and in any case her replacement would certainly be needed for the present function that she is performing. The negative aspect of this choice is that exterior hiring may produce bitterness from inner personnel who might be looking at the position of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and also Manufacturing: Provided the competitive pressures and also top quality job called for from the advertising agency, it is recommended that Lewis needs to permit the manufacturing unit to be a separate function from the marketing device. Given that many advertising agencies had these two functions as different systems, it makes even more sense to comply with the norm. Both functions may be able to focus on their core turns on a lot more efficiently. Nonetheless, the disadvantage of this method would be that extra costs would need to be borne for setting up different production functions. Along with this, a production head may need to be worked with which could raise overheads for the company.

Combination of Marketing with Procedures: Since Lewis is already looking after the advertising and marketing and also operations departments at the same time; it makes sense to integrate both features since she has been effectively looking after both ends. The reality that the two divisions currently have major differences over allotment of sources suggests that this assimilation may be able to bring about consistency particularly as Lewis would be heading both ends.However there are different drawbacks of this relocation specifically as it would place too much problem over Lewis's shoulders. The reality that Lewis has to adapt her administration design for the advertising division suggests that these 2 departments would certainly be culturally varied. In addition to this, Lewis might not have the ability to use one kind of management style to both divisions which might result in inadequacy in either one of the two functions.

Referral.



An analysis of the 3 choices shows that assimilation of marketing and procedures would not be a feasible relocation due to the large distinctions between the 2 departments in spite of the fact that presently Lewis is managing both. While splitting up of the manufacturing function might have been a beneficial step for the advertising division, the truth that it would certainly indicate placing a 3rd function under Lewis's wing indicates this must be avoided.

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

Advertising and Marketing functions would certainly be merged.

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

Manufacturing function will stay component of marketing under advertising and marketing feature.

Lewis will certainly separate herself from operations.

A democratic leadership design with employee empowerment will be utilized in advertising and marketing division.

Open door plan and focus on cross departmental communication will certainly be focused on getting rid of discord.

Backup strategy.

If the combination does not exercise as planned, a contingency strategy would adhere to which would separate the manufacturing function from the marketing feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the advertising division without an SVP. In that case the production function will absolutely be separated by positioning it under an SVP manufacturing.