Seitel Inc Case Study Solution


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Seitel Inc Case Study Solution

Background and Facts

Seitel Inc a workplace supplies store for tiny as well as medium sized companies has actually just recently been associated with planning for a merging with its rival Home Deport, which has influenced effectiveness levels in departmentswith the elderly manager involved in legal issues presented by the federal Profession Commission. With the Advertising and marketing Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the near future. With obstacles in the type of a possible social adjustment as well as reduced worker morale, the organization wants a complete reengineering effort at the advertising division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural change at the advertising and marketing department of Seitel Inc is raising unpredictability in the working environment resulting in different challenges 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 significant function in influencing critical decisions considering that Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Trade Payment's treatment in the process. Provided the reality that the shop has a global presence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations might be able to influence performance or critical objectives. Federal Trade Commission's antitrust suit versus the merging used up useful time of the company's elderly monitoring recommending that 'political' factors can have serious implications for a global organisation.

Economic Factors: Economic factors such as the development of local business in the worldwide scenario suggest that Seitel Inc is prospering in an environment where there is prospective growth of companies. Reality that store clients are mainly looking for workplace supplies for home offices recommends that the market has an increasing pattern of business owners and residence based companies.

Social factors: Social fads in the economic situation reveal that consumers are trying to find comfort as well as eye-catching rates. Marketing research demonstrates how the consumer for Seitel Inc does not have awareness about locating remedies which can offer a mix of convenience as well as low costs.

Technological factors: Innovation plays a crucial duty in Seitel Inc's service method especially as the organization is piloting Modern technology centers which would offer technology sales and support in the kind of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues as well as Manifestations.

Several underlying Organizational Behavior concerns can be seen in Seitel Inc's case as highlighted in this area.

Uneasiness about social adjustment: There is concern regarding a cultural modification that would certainly occur once Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with a lot of the staff members currently revealing unhappiness over this prospective move. This expected adjustment has actually produced anxiety in the office which has been paired with the previous stress and anxiety of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is scarcity of employees that can match the stressful atmosphere of a fast-paced organization. Not only does this result in problem in locating the right individuals, it puts tension on new hires as can not endure the speed and stress that the organization expects them to bear.

Dual Reporting Lines: Newbies find this business society cumbersome and difficult to cope with specifically as dotted line partnerships are meant to be weaker as a whole and also objective setting as well as efficiency evaluation is still done by the solid line supervisor. This suggests that novices might lose clearness about their respective duties and also objectives specifically as populated line reporting does not keep them in straight interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been guessed that the last would take Krasnow's setting came as an impact to her spirits. Lewis may have been qualified as well as proper for the work but the fact that Kransnow's departure would make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Worry & Job Insecurity: Worry as well as instability can be recognized as two significant concerns that Lewis would certainly be handling particularly as the merger has actually now be terminated and also two elderly execs of the marketing division would certainly be leaving. The whole duty of the division would be falling on Lewis's shoulders who would not just be in charge of brining about a social adjustment however would certainly additionally have to show herself in her brand-new duty.

Incompatible Monitoring Style of Leader: Lewis's administration style and its incompatibility with the marketing department's function can likewise be seen as an OB difficulty specifically as she has been made use of to handling concerns in the procedures department where personnel are taught to focus on processes and obtain them. The marketing division on the various other hand can be viewed as a team of people that are utilized to being supported by Krasnow who focused extra on result than procedures.

Interdepartmental Differences: Interdepartmental differences between 3 divisions, advertising and marketing, merchandizing as well as procedures respectively over the allotment of the marketing mix can be determined as an additional OB worry. Although the marketing department does not share the same vision as the various other 2 departments relating to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing as well as procedures departments do not concur over the advertising mix allowance among one another either.

Fragmentation in Advertising And Marketing Department: Disintegration between the advertising and marketing departments can be recognized as an additional OB problem which might need more attention. The fact that the marketing and advertising areas in the advertising and marketing division are disconnected is stopping both divisions from obtaining from each other's experience and also proficiency. Combination of advertising with merchandising and also procedures would end up being harder if the advertising and marketing department itself is disintegrated which can be one more possible OB concern.

Seitel Inc Analysis

Different theories have been used to clarify the conditions to obtain further clarity concerning the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers think that juniors are easy and lazy, have little ambition as well as withstand change. The situation at Seitel Inc is not completely adhering to Concept X, it can be seen that new hires are locating this atmosphere rather difficult which may eventually lead to a higher disposition of the management towards Concept X. Even while assessing Lewis's monitoring design, concept X might have been ideal in the procedures division to some extent yet the Advertising department would call for reliance on Concept Y in order to obtain the imagination and also creativity from the teams.

Tuckman's Teamwork Concept: Regarding Lewis's issue about bringing consistency in between the marketing and advertising division is worried, this would initially result in conflict as discussed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's theory shown in appendix 3, during the first stage of group growth, individuals might not bond, as they are hectic finding their place in the group. By incorporating the marketing and advertising division's job, there may coincide preliminary disconnect which can bring about the second stage of 'storming' where the groups challenge one another. It is just during the third stage or 'norming' when they would come with each other to share ideas prior to the group can bring about harmony in the fourth stage 'executing'.

Bridges' Transition Design: As per William Bridge's concept (appendix 4), people are quite uncomfortable with modification, which is noticeable by the situation at Seitel Inc The scenario can be viewed as a typical course of life if is studied according to Bridge's concept where he describes that individuals undergo three stages of shift when they experience adjustment. 'Ending, losing and Releasing', The Neutral Zone and 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they go into stage one and so there may be emotions like despair, uncertainty, frustration, rage, anxiety, denial and disorientation.The scenario at the advertising and marketing department of Seitel Inc is comparable so Lewis can get comfortable with the concept that it is not extraordinary actions. In the 2nd phase, there may be a demand to link the space in between the brand-new and also old culture so Lewis may need to encounter this ordeal when Krasnow leaves. There might be reduced spirits as well as reduced productivity at this phase which should not be taken as an obstacle. It is throughout this stage that Lewis will have to provide assistance to the division to make sure that they can find an orientation. It can be seen just how Krasnow has actually already made this change simpler by making Lewis obtain involved in the division a year prior to his actual departure. As per Bridges' Version, stage three will bring about visibility to discovering, High energy and also commitment as individuals will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has discusses the relevance of 'safety needs as being a lower degree need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel secure and out of threat' is at the second level of needs. Prior to a worker can be made to establish emotionally, he needs to have his 'Physiological 'and also 'Safety and security' requires met.

SWOT Analysis for Seitel Inc Case Study

Ramification of Analysis.

The OB analysis has actually checked out numerous concepts to recognize how to manage the current scenario available. The following 3 options have been proposed to help Lewis manage the organizational challenges in the advertising department. Each of these options has actually been proposed for easing the transition needed to bring the advertising department in accordance with the needs of the marketplace and also for making the cultural adjustment that would certainly adhere to when the existing leader leaves.

Integration of advertising and marketing features. Separating Adverting and also Manufacturing functions. Integration of Advertising with Procedures.

Examination of Alternatives.

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

The advantage of this technique is that it will certainly incorporate both functions while minimizing the requirement for employing an extra source for marketing. Lewis would be heading the advertising and marketing division as well as in any type of case her substitute would certainly be needed for the current role that she is carrying out. The downside of this choice is that external hiring might produce animosity from interior employees that may be eying the position of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Manufacturing: Provided the affordable pressures and also high top quality work needed from the advertising agency, it is suggested that Lewis ought to allow the production system to be a different feature from the advertising and marketing unit. Since the majority of advertising companies had these 2 functions as different units, it makes even more feeling to follow the norm.

Integration of Advertising And Marketing with Operations: Given that Lewis is already taking treatment of the advertising and also procedures divisions simultaneously; it makes sense to incorporate the 2 features considering that she has been effectively taking care of both ends. The reality that Lewis has to adapt her monitoring style for the marketing department suggests that these two divisions would certainly be culturally varied.


An examination of the 3 alternatives shows that combination of marketing and procedures would certainly not be a practical action due to the vast distinctions between the two divisions in spite of the fact that presently Lewis is taking care of both. While splitting up of the production feature might have been a positive step for the marketing department, the reality that it would suggest placing a third function under Lewis's wing implies this need to be avoided.

Action Strategy.
Lewis will take control of the role of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Manufacturing feature will certainly remain part of advertising and marketing under advertising function.

Lewis will separate herself from operations.

An autonomous leadership style with worker empowerment will certainly be utilized in marketing division.

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

Backup plan.

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