Seeking Sustainability Neighborhood Housing Services Of Chicago Faces Financial Challenge Case Study Solution


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Background and Facts

Seeking Sustainability Neighborhood Housing Services Of Chicago Faces Financial Challenge an office materials store for small as well as average sized services has lately been involved in planning for a merger with its competitor Home Deport, which has affected efficiency degrees in departmentswith the elderly manager involved in lawful difficulties put forth by the government Trade Compensation. With the Advertising Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the duty in the future. With obstacles in the form of a prospective cultural adjustment and reduced employee spirits, the organization is in need of a full reengineering effort at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural change at the advertising department of Seeking Sustainability Neighborhood Housing Services Of Chicago Faces Financial Challenge is enhancing uncertainty in the working environment leading to different challenges for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting critical decisions since Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Trade Compensation's treatment while doing so. Offered the reality that the shop has a worldwide visibility with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries may have the ability to affect performance or calculated objectives. Federal Trade Commission's antitrust match against the merging occupied beneficial time of the company's senior administration suggesting that 'political' factors can have serious ramifications for a worldwide service.

Economic Factors: Financial factors such as the introduction of small companies in the worldwide scenario suggest that Seeking Sustainability Neighborhood Housing Services Of Chicago Faces Financial Challenge is thriving in a setting where there is potential growth of organisations. In addition to this, fact that shop clients are primarily trying to find workplace supplies for home offices recommends that the market has a rising trend of business owners as well as online organisations.

Social factors: Social trends in the economic situation show that clients are seeking comfort in addition to eye-catching costs. Marketing research shows how the client for Seeking Sustainability Neighborhood Housing Services Of Chicago Faces Financial Challenge does not have understanding regarding finding services which can offer a mix of benefit and also affordable.

Technical factors: Innovation plays an essential duty in Seeking Sustainability Neighborhood Housing Services Of Chicago Faces Financial Challenge's business technique specifically as the company is piloting Innovation facilities which would provide modern technology sales and support in the type of memory upgrades, outer setups. (Recap of PARASITE in appendix 2).

OB Issues and Manifestations.

Several underlying Business Habits concerns can be seen in Seeking Sustainability Neighborhood Housing Services Of Chicago Faces Financial Challenge's case as highlighted in this area.

Worries regarding social change: There is worry concerning a cultural modification that would certainly take place when Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with a lot of the personnel currently showing unhappiness over this potential move. This anticipated adjustment has created anxiety in the workplace which has been paired with the previous anxiety of preparing the firm for a potential merging with Residence Deport.
Pest Analysis
Stressful Work Environment for Newcomers: There is scarcity of employees that can match the difficult setting of a hectic organization. Not just does this bring about difficulty in finding the best people, it puts stress on brand-new hires as can not endure the rate and pressure that the organization expects them to birth.

Double Reporting Lines: Newcomers discover this organizational culture cumbersome and tough to cope with particularly as populated line connections are indicated to be weaker in general and objective setting and performance examination is still done by the solid line supervisor. This means that beginners could lose clarity concerning their particular roles as well as purposes especially as dotted line coverage does not maintain them in direct communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been guessed that the last would certainly take Krasnow's placement came as a strike to her spirits. Lewis might have been capable and also proper for the work however the fact that Kransnow's departure would make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Concern & Task Instability: Fear and insecurity can be recognized as two major concerns that Lewis would be managing specifically as the merger has actually now be terminated as well as 2 elderly executives of the advertising and marketing department would be leaving. The entire obligation of the division would certainly be falling on Lewis's shoulders that would not simply supervise of brining about a cultural adjustment yet would certainly likewise need to verify herself in her brand-new function.

Inappropriate Management Style of Leader: Lewis's administration style as well as its incompatibility with the advertising and marketing division's role can additionally be seen as an OB difficulty especially as she has actually been used to handling concerns in the operations department where workers are shown to focus on procedures and also obtain them. The marketing department on the other hand can be viewed as a group of individuals that are made use of to being supported by Krasnow that focused more on output than procedures.

Interdepartmental Disputes: Interdepartmental disagreements in between 3 divisions, marketing, merchandizing and also procedures respectively over the allotment of the advertising and marketing mix can be determined as another OB issue. Although the marketing division does not share the same vision as the various other two divisions pertaining to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and operations departments do not agree over the marketing mix allotment amongst one another either.

Disintegration in Marketing Division: Disintegration in between the advertising and marketing divisions can be recognized as another OB problem which can need more interest. The reality that the advertising and marketing areas in the marketing department are disconnected is preventing both departments from gaining from each other's experience and also proficiency. Assimilation of advertising and marketing with merchandising and also operations would certainly come to be harder if the marketing division itself is broken down which can be another prospective OB issue.

Seeking Sustainability Neighborhood Housing Services Of Chicago Faces Financial Challenge Analysis

Different concepts have been made use of to explain the situations to obtain additional clarity about the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers believe that subordinates are passive and lazy, have little ambition as well as withstand change. The situation at Seeking Sustainability Neighborhood Housing Services Of Chicago Faces Financial Challenge is not entirely following Concept X, it can be seen that brand-new hires are discovering this environment instead stressful which might at some point lead to a higher inclination of the monitoring in the direction of Concept X. Also while assessing Lewis's management design, concept X might have been ideal in the operations department to some degree however the Marketing division would certainly require dependence on Theory Y in order to obtain the imagination and originality from the teams.

Tuckman's Synergy Concept: As much as Lewis's concern regarding bringing consistency in between the advertising and advertising department is concerned, this would originally lead to conflict as reviewed by Bruce Tuckman in his 'Team effort Theory'. By integrating the advertising and marketing as well as advertising department's job, there might be the very same initial disconnect which might lead to the second stage of 'storming' where the teams challenge one another.

Bridges' Shift Design: According To William Bridge's theory (appendix 4), people are fairly uncomfortable with adjustment, which is apparent by the situation at Seeking Sustainability Neighborhood Housing Services Of Chicago Faces Financial Challenge The scenario can be seen as a typical training course of life if is examined based on Bridge's concept where he explains that people undergo 3 phases of change when they experience adjustment. 'Ending, losing and Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When individuals are presented with modification, they get in stage one therefore there may be feelings like despair, unpredictability, aggravation, rage, fear, rejection as well as disorientation.The circumstance at the advertising and marketing division of Seeking Sustainability Neighborhood Housing Services Of Chicago Faces Financial Challenge is comparable so Lewis can obtain comfy with the concept that it is not remarkable habits. In the second stage, there might be a demand to connect the space in between the new and old culture so Lewis may have to encounter this challenge once Krasnow leaves. There might be low morale and also reduced performance at this phase which need to not be taken as a trouble. It is during this phase that Lewis will need to give assistance to the division to make sure that they can locate a sense of direction. It can be seen exactly how Krasnow has actually currently made this transition less complicated by making Lewis obtain associated with the division a year before his actual separation. As per Bridges' Version, phase three will certainly produce visibility to discovering, High power as well as dedication as individuals will certainly accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has reviews the value of 'safety requires as being a reduced level need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel secure and also out of risk' is at the second degree of requirements. Before an employee can be made to establish emotionally, he requires to have his 'Physiological 'as well as 'Safety' requires met.

SWOT Analysis for Seeking Sustainability Neighborhood Housing Services Of Chicago Faces Financial Challenge Case Study

Implication of Analysis.

The OB analysis has actually checked out different theories to comprehend exactly how to deal with the present situation available. The complying with 3 alternatives have actually been suggested to help Lewis deal with the organizational challenges in the advertising and marketing division. Each of these options has been recommended for alleviating the change needed to bring the advertising division according to the demands of the market as well as for making the cultural adjustment that would certainly adhere to once the existing leader leaves.

Assimilation of advertising and marketing functions. Dividing Adverting as well as Production functions. Integration of Advertising with Operations.

Examination of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis during the earlier merger days has experience in business-to-business advertising along with agency and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to manage both advertising and advertising and marketing functions.

The advantage of this technique is that it will integrate the two features while lowering the demand for employing an added resource for marketing. Lewis would be heading the advertising division and also in any type of case her replacement would be needed for the present duty that she is doing. The negative aspect of this choice is that exterior hiring might bring about resentment from inner workers who may be looking at the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Production: Offered the competitive stress and also high top quality job called for from the advertising and marketing company, it is recommended that Lewis should allow the manufacturing device to be a separate feature from the advertising and marketing system. Since a lot of advertising companies had these 2 features as different units, it makes more sense to follow the standard.

Assimilation of Marketing with Workflows: Considering that Lewis is already looking after the marketing and also operations departments all at once; it makes good sense to incorporate both features considering that she has been effectively taking care of both ends. The reality that both departments already have significant differences over allotment of resources suggests that this assimilation might have the ability to bring about consistency specifically as Lewis would be heading both ends.However there are numerous disadvantages of this step particularly as it would certainly put way too much burden over Lewis's shoulders. The reality that Lewis needs to adjust her management style for the advertising and marketing division suggests that these 2 departments would be culturally varied. Along with this, Lewis might not have the ability to use one sort of management design to both departments which might result in inadequacy in either among both functions.


An evaluation of the three options indicates that assimilation of advertising and operations would not be a practical relocation because of the large distinctions in between both departments despite the fact that currently Lewis is managing both. While splitting up of the production feature might have been a beneficial step for the advertising division, the reality that it would mean positioning a 3rd feature under Lewis's wing means this need to be stayed clear of also. The integration of the advertising department is the best choice in regards to getting the ideal results from the division. An action prepare for this alternative is discussed below.

Activity Plan.
Lewis will take control of the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would be merged.

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

Production feature will certainly stay component of advertising under advertising feature.

Lewis will certainly separate herself from procedures.

An autonomous management design with employee empowerment will be made use of in advertising and marketing department.

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

Contingency strategy.

If the integration does not work out as planned, a contingency strategy would certainly comply with which would certainly divide the production function from the advertising and marketing function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the marketing division without an SVP. Because case the manufacturing function will most definitely be divided by placing it under an SVP production.