Seitel Inc Case Study Solution


Home >> Harvard >> Seitel Inc >>

Seitel Inc Case Study Solution

Background and Facts

Seitel Inc an office supplies store for tiny as well as average sized organisations has actually lately been involved in preparing for a merging with its competitor House Deport, which has actually affected effectiveness levels in departmentswith the elderly supervisor associated with lawful difficulties presented by the federal 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 procedures has been asked to take the duty in the near future. With challenges in the type of a possible cultural modification and low worker spirits, the company requires a complete reengineering initiative at the advertising division.

Problem Declaration
Porter's 5 Forces Analysis
The possible social adjustment at the advertising and marketing division of Seitel Inc is boosting uncertainty in the workplace resulting in numerous obstacles for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting tactical choices considering that Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Trade Commission's intervention in the process. Given the fact that the store has a global visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations might have the ability to affect efficiency or calculated objectives. Federal Profession Compensation's antitrust suit against the merging occupied useful time of the company's senior monitoring recommending that 'political' factors can have significant effects for an international organisation.

Economic Factors: Financial factors such as the introduction of small businesses in the international scenario suggest that Seitel Inc is prospering in an environment where there is possible development of services. In addition to this, truth that store consumers are primarily searching for workplace supplies for office recommends that the marketplace has a climbing trend of entrepreneurs and also online services.

Social factors: Social fads in the economy show that consumers are searching for benefit along with appealing prices. Marketing research shows how the client for Seitel Inc does not have recognition about locating services which can provide a mix of ease as well as affordable.

Technological factors: Technology plays a vital function in Seitel Inc's service strategy especially as the organization is piloting Technology facilities which would certainly provide modern technology sales and also support in the form of memory upgrades, peripheral setups. (Summary of BUG in appendix 2).

OB Issues as well as Effects.

A number of underlying Business Habits problems can be seen in Seitel Inc's case as highlighted in this section.

Concerns regarding social adjustment: There is worry regarding a social modification that would certainly take place once Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising with most of the staff members currently showing discontent over this potential step. This predicted change has actually developed stress in the workplace which has actually been coupled with the previous stress and anxiety of preparing the company for a potential merging with Residence Deport.
Pest Analysis
Stressful Work Environment for Newcomers: There is lack of employees that can match the demanding atmosphere of a fast-paced company. Not only does this result in trouble in finding the best individuals, it places tension on brand-new hires as can not hold up against the rate and also stress that the organization expects them to bear.

Double Reporting Lines: Newbies discover this organizational culture cumbersome as well as challenging to handle especially as populated line relationships are indicated to be weaker generally and also unbiased setup and also performance evaluation is still done by the strong line manager. This indicates that novices can shed clarity about their corresponding functions and objectives especially as dotted line coverage does not maintain them in direct communication with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had actually been hypothesized that the last would take Krasnow's position came as a blow to her morale. Lewis may have been qualified and also proper for the task but the fact that Kransnow's departure would make Coles a straight record to Lewis may have been the reason for Coles' resignation from services.

Fear & Work Insecurity: Worry and also insecurity can be recognized as two major issues that Lewis would certainly be taking care of specifically as the merger has actually now be terminated and also 2 elderly execs of the advertising and marketing division would certainly be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders who would not just supervise of brining concerning a social adjustment however would certainly likewise need to confirm herself in her new function.

Incompatible Monitoring Style of Leader: Lewis's monitoring style and its conflict with the advertising department's duty can additionally be seen as an OB challenge specifically as she has been utilized to managing problems in the operations division where personnel are taught to concentrate on procedures and also obtain them. The advertising division on the other hand can be seen as a group of people who are utilized to being nurtured by Krasnow that focused more on result than procedures.

Interdepartmental Arguments: Interdepartmental differences in between three departments, marketing, merchandizing and also operations specifically over the allotment of the advertising and marketing mix can be determined as one more OB problem. Although the marketing department does not share the same vision as the various other 2 divisions regarding the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing as well as procedures divisions do not agree over the advertising mix allocation among each other either.

Fragmentation in Advertising And Marketing Department: Disintegration between the advertising and marketing divisions can be recognized as one more OB issue which might require more focus. The truth that the advertising and marketing sections in the advertising and marketing division are disconnected is stopping both divisions from gaining from each various other's experience and also expertise. Assimilation of advertising with retailing and procedures would become more difficult if the marketing department itself is broken down which can be another prospective OB concern.

Seitel Inc Analysis

Numerous theories have been made use of to clarify the scenarios to obtain further clearness about the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers believe that juniors are passive as well as careless, have little aspiration and also resist adjustment. The circumstance at Seitel Inc is not entirely complying with Theory X, it can be seen that new hires are finding this setting instead demanding which might ultimately lead to a better inclination of the management in the direction of Theory X. Also while analyzing Lewis's management style, concept X may have been appropriate in the operations department to some extent but the Advertising and marketing department would certainly need dependence on Concept Y in order to get the imagination and originality from the groups.

Tuckman's Team effort Theory: As for Lewis's problem about bringing consistency in between the advertising and marketing department is concerned, this would initially lead to clash as gone over by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, throughout the preliminary stage of team advancement, people might not bond, as they are busy discovering their place in the group. By incorporating the advertising and marketing division's job, there may be the same preliminary separate which might result in the 2nd stage of 'storming' where the teams challenge each other. It is only throughout the 3rd phase or 'norming' when they would certainly come together to share ideas before the team can bring around harmony in the 4th phase 'executing'.

Bridges' Transition Model: As per William Bridge's concept (appendix 4), people are quite uneasy with adjustment, which is noticeable by the situation at Seitel Inc The scenario can be seen as a normal training course of life if is examined according to Bridge's theory where he describes that people go through three stages of shift when they experience adjustment. 'End, shedding as well as Letting go', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When people exist with modification, they go into stage one and so there might be emotions like sadness, uncertainty, disappointment, rage, anxiety, denial as well as disorientation.The situation at the advertising division of Seitel Inc is similar so Lewis can obtain comfortable with the idea that it is not phenomenal habits. In the 2nd stage, there might be a requirement to bridge the space in between the new and also old society so Lewis might have to face this ordeal when Krasnow leaves. There may be low morale and also low performance at this stage which must not be taken as a setback. It is during this stage that Lewis will have to provide guidance to the division to ensure that they can locate an orientation. It can be seen exactly how Krasnow has actually already made this change easier by making Lewis obtain involved in the department a year before his actual departure. Based on Bridges' Version, stage 3 will bring about visibility to learning, High energy and also commitment as individuals will certainly welcome the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has goes over the significance of 'security requires as being a lower level requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel secure and out of danger' is at the second level of needs. Prior to a worker can be made to develop emotionally, he needs to have his 'Physiological 'as well as 'Safety' requires satisfied.

SWOT Analysis for Seitel Inc Case Study

Ramification of Analysis.

The OB analysis has actually taken a look at various theories to comprehend just how to manage the present situation available. The adhering to 3 options have been suggested to aid Lewis deal with the organizational obstacles in the marketing department. Each of these choices has been proposed for easing the change needed to bring the advertising and marketing division in accordance with the needs of the marketplace and for making the social change that would follow when the present leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting and Manufacturing functions. Combination of Advertising And Marketing with Workflow.

Analysis of Alternatives.

Integration of Marketing & Advertising And Marketing Functions: The internal advertising and marketing agency of Seitel Inc is already stamina for the company in terms of conserving up on expenses associated with advertising and marketing as well as promo. Since no new recruitment has actually been done after Bridget Cole's separation with the reporting line being straight designated to Krasnow for the marketing feature, this is a beneficial opportunity for integrating the marketing and advertising features. Judith Shapiro who has earlier been spoken with by Lewis during the earlier merging days has proficiency in business-to-business advertising along with company and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both advertising and marketing functions.

The advantage of this method is that it will incorporate the two functions while decreasing the need for employing an additional resource for advertising and marketing. Along with this, Lewis would certainly be heading the advertising division as well as regardless her substitute would certainly be needed for the present function that she is doing. The disadvantage of this alternative is that exterior hiring might cause resentment from interior workers who might be considering the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and Manufacturing: Given the affordable pressures and also high quality work required from the ad agency, it is recommended that Lewis ought to permit the production unit to be a separate function from the advertising and marketing unit. Given that a lot of ad agency had these 2 functions as separate systems, it makes even more feeling to adhere to the norm. In addition to this, both functions might be able to focus on their core triggers much more successfully. The disadvantage of this technique would certainly be that additional prices would certainly have to be birthed for setting up different manufacturing functions. A manufacturing head may have to be hired which might boost expenses for the organization.

Assimilation of Advertising And Marketing with Operations: Given that Lewis is currently taking care of the marketing and procedures divisions concurrently; it makes good sense to integrate the two features because she has been efficiently dealing with both ends. The truth that both divisions currently have major distinctions over allotment of sources recommends that this assimilation might be able to bring about harmony specifically as Lewis would be heading both ends.However there are different negative aspects of this relocation particularly as it would put way too much worry over Lewis's shoulders. The reality that Lewis needs to adjust her monitoring design for the advertising department recommends that these two divisions would be culturally varied. In addition to this, Lewis may not be able to apply one type of management design to both divisions which could result in inadequacy in either one of both features.


An examination of the 3 options indicates that integration of advertising as well as operations would not be a viable relocation due to the large distinctions in between the two divisions although that presently Lewis is managing both. While splitting up of the manufacturing function might have been a positive relocation for the advertising and marketing department, the reality that it would certainly imply putting a 3rd feature under Lewis's wing implies this ought to be avoided too. The assimilation of the advertising and marketing division is the best choice in regards to obtaining the optimal results from the department. An activity prepare for this choice is gone over listed below.

Activity Plan.
Lewis will take over the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Manufacturing feature will stay component of advertising under marketing feature.

Lewis will separate herself from operations.

A democratic leadership style with staff member empowerment will be made use of in marketing division.

Open door plan and focus on cross departmental interaction will certainly be focused on removing dissonance.

Backup plan.

If the assimilation does not work out as planned, a backup strategy would certainly comply with which would certainly divide the production function from the marketing feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing division without an SVP. In that case the manufacturing feature will definitely be divided by putting it under an SVP production.