Seitel Inc Case Study Solution


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Seitel Inc Case Study Help

Background and Facts

Seitel Inc a workplace materials seller for small and medium sized organisations has recently been involved in planning for a merger with its rival Home Deport, which has actually influenced performance levels in departmentswith the elderly supervisor associated with lawful problems presented by the federal Trade Payment. With the Marketing Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the future. With challenges in the type of a prospective cultural adjustment and also low staff member morale, the organization wants a complete reengineering initiative at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural change at the marketing department of Seitel Inc is increasing uncertainty in the workplace causing various obstacles 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 duty in impacting tactical decisions given that Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Trade Commission's intervention while doing so. Provided the truth that the shop has a worldwide existence with branches in UK, USA, Canada as well as Germany, political consider each of these nations may be able to impact performance or critical goals. Federal Trade Compensation's antitrust suit versus the merging took up useful time of the company's senior monitoring recommending that 'political' factors can have severe effects for an international business.

Economic Factors: Economic factors such as the introduction of small businesses in the worldwide situation recommend that Seitel Inc is prospering in an atmosphere where there is potential growth of organisations. Along with this, fact that store customers are mainly looking for workplace materials for home offices suggests that the marketplace has a climbing fad of business owners as well as online organisations.

Social factors: Social fads in the economy reveal that customers are looking for benefit as well as eye-catching costs. Marketing research demonstrates how the customer for Seitel Inc lacks awareness about discovering remedies which can offer a mix of ease and also low costs.

Technical factors: Modern technology plays an important duty in Seitel Inc's business approach especially as the company is piloting Modern technology facilities which would offer modern technology sales and also assistance in the type of memory upgrades, peripheral installations. (Recap of INSECT in appendix 2).

OB Issues and Effects.

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

Concerns concerning social change: There is apprehension about a social change that would certainly happen once Todd Krasnow leaves from his setting as the Exec Vice President of Advertising And Marketing with a lot of the team member currently showing discontent over this prospective step. This anticipated change has developed anxiety in the work environment which has been coupled with the previous stress and anxiety of preparing the firm for a possible merging with House Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is lack of workers that can match the stressful atmosphere of a fast-paced organization. Not only does this bring about trouble in locating the appropriate individuals, it puts stress and anxiety on new hires as can not withstand the speed as well as pressure that the organization anticipates them to bear.

Twin Coverage Lines: Novices locate this business society difficult and tough to cope with particularly as dotted line partnerships are suggested to be weak generally as well as objective setup and performance examination is still done by the solid line manager. This suggests that newcomers could shed clarity about their corresponding duties as well as objectives especially as populated line reporting does not keep them in direct interaction with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles although it had actually been hypothesized that the latter would certainly take Krasnow's placement came as a blow to her morale. Lewis might have been qualified as well as proper for the work however the truth that Kransnow's separation would make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Work Instability: Worry and insecurity can be identified as two significant issues that Lewis would be managing specifically as the merging has actually currently be cancelled as well as two senior execs of the advertising and marketing division would certainly be leaving. The entire duty of the department would be falling on Lewis's shoulders that would certainly not just be in charge of brining regarding a cultural adjustment but would certainly also need to prove herself in her new role.

Inappropriate Management Design of Leader: Lewis's management style and its conflict with the advertising department's duty can likewise be viewed as an OB difficulty particularly as she has actually been used to handling problems in the operations division where personnel are instructed to concentrate on procedures as well as obtain them right. The advertising division on the other hand can be seen as a group of individuals that are made use of to being supported by Krasnow who concentrated more on output than procedures.

Interdepartmental Disagreements: Interdepartmental arguments in between three departments, advertising and marketing, merchandizing and operations specifically over the appropriation of the marketing mix can be determined as an additional OB issue. The advertising division does not share the very same vision as the various other two departments relating to the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and procedures divisions do not agree over the marketing mix appropriation among one an additional either.

Fragmentation in Advertising And Marketing Division: Fragmentation in between the advertising and marketing departments can be recognized as one more OB issue which can require additional focus. The reality that the marketing and advertising areas in the advertising and marketing department are separated is stopping both divisions from gaining from each other's experience as well as experience. Integration of advertising and marketing with merchandising and procedures would end up being harder if the advertising department itself is degenerated which can be another potential OB issue.

Seitel Inc Analysis

Different concepts have actually been utilized to discuss the conditions to obtain further quality about the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that juniors are passive and lazy, have little aspiration and stand up to change. The circumstance at Seitel Inc is not completely complying with Theory X, it can be seen that brand-new hires are discovering this environment instead demanding which might ultimately lead to a greater disposition of the monitoring in the direction of Theory X. Also while analyzing Lewis's administration design, concept X might have been ideal in the operations division to some degree however the Advertising department would call for reliance on Concept Y in order to get the imagination as well as originality from the groups.

Tuckman's Team effort Theory: As for Lewis's problem regarding bringing harmony between the marketing and advertising division is concerned, this would at first bring about conflict as discussed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, throughout the preliminary phase of team development, people might not bond, as they are active finding their area in the team. By incorporating the marketing and advertising division's job, there might coincide first detach which might bring about the second phase of 'storming' where the groups challenge each other. Nonetheless, it is just throughout the third stage or 'norming' when they would integrate to share ideas prior to the team can produce harmony in the fourth stage 'doing'.

When individuals are presented with change, they enter stage one and also so there might be emotions like despair, uncertainty, stress, anger, fear, rejection as well as disorientation.The scenario at the advertising and marketing division of Seitel Inc is similar so Lewis can get comfortable with the suggestion that it is not amazing habits. It is throughout this phase that Lewis will have to offer assistance to the division so that they can locate a sense of direction. It can be seen just how Krasnow has actually currently made this transition less complicated by making Lewis obtain entailed in the department a year before his actual departure.
Vrio Analysis
Maslow's Need pecking order: The OB concern pertaining to instability at the office has been activated firstly by the change in management and also second of all by the reality that the merger will no longer be launched. Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has discusses the relevance of 'security requires as being a reduced degree need of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to really feel protected and out of danger' goes to the 2nd level of needs. Before a staff member can be made to create mentally, he requires to have his 'Physiological 'and also 'Security' needs satisfied. This suggests that unless the personnel are made to really feel safe and secure regarding their existing employment status in Seitel Inc they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Seitel Inc Case Study

Ramification of Analysis.

The OB analysis has actually checked out numerous concepts to recognize exactly how to deal with the present situation handy. The complying with 3 options have actually been proposed to aid Lewis deal with the organizational challenges in the marketing division. Each of these options has been recommended for relieving the transition required to bring the advertising department according to the needs of the marketplace and for making the social adjustment that would follow when the current leader leaves.

Integration of marketing and advertising functions. Separating Adverting and Manufacturing functions. Integration of Advertising with Workflow.

Examination of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merger days has competence in business-to-business marketing along with firm and also retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both marketing as well as advertising functions.

The advantage of this approach is that it will incorporate the two functions while decreasing the requirement for working with an added source for advertising and marketing. Lewis would certainly be heading the advertising division as well as in any case her replacement would be required for the current role that she is carrying out. The downside of this option is that outside hiring may bring about animosity from internal workers who might be looking at the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Production: Offered the competitive stress and also high top quality work called for from the advertising agency, it is recommended that Lewis needs to enable the production system to be a separate feature from the advertising system. Considering that a lot of advertising firms had these 2 features as separate systems, it makes more feeling to comply with the standard.

Assimilation of Advertising And Marketing with Procedures: Because Lewis is already taking care of the advertising and marketing as well as procedures departments all at once; it makes feeling to incorporate the 2 functions given that she has been successfully taking care of both ends. The truth that Lewis has to adjust her management design for the marketing department recommends that these two divisions would be culturally diverse.


An evaluation of the 3 choices indicates that combination of advertising and also procedures would not be a practical move due to the huge differences in between the 2 departments in spite of the truth that currently Lewis is dealing with both. While separation of the manufacturing function might have been a positive step for the advertising and marketing division, the reality that it would certainly indicate placing a third feature under Lewis's wing means this ought to be stayed clear of.

Action Strategy.
Lewis will take over the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

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

Lewis will certainly divide herself from procedures.

A democratic management style with staff member empowerment will be utilized in marketing division.

Open up door policy as well as emphasis on cross department interaction will certainly be focused on eliminating disharmony.

Contingency strategy.

If the integration does not exercise as prepared, a contingency strategy would comply with which would divide the manufacturing feature from the advertising and marketing function to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising department without an SVP. Because case the manufacturing feature will absolutely be divided by positioning it under an SVP manufacturing.