Seitel Inc Case Study Analysis


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Seitel Inc Case Study Solution

Background and Facts

Seitel Inc a workplace materials retailer for small and average sized businesses has actually just recently been involved in planning for a merger with its rival Residence Deport, which has actually impacted effectiveness levels in departmentswith the senior manager involved in legal issues put forth by the federal Trade Commission. With the Advertising Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the near future. With challenges in the type of a possible social adjustment and reduced worker morale, the company wants a total reengineering initiative at the advertising division.

Problem Statement

The prospective social adjustment at the advertising and marketing division of Seitel Inc is boosting uncertainty in the workplace bring about different obstacles for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting tactical decisions considering that Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Trade Commission's intervention in the process. Offered the reality that the shop has an international presence with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these countries might have the ability to influence efficiency or calculated goals. Federal Trade Compensation's antitrust suit versus the merger used up beneficial time of the company's senior management recommending that 'political' factors can have significant implications for a worldwide service.

Economic Factors: Financial factors such as the emergence of local business in the international circumstance recommend that Seitel Inc is growing in an atmosphere where there is potential growth of businesses. Truth that shop customers are mainly looking for workplace supplies for home workplaces suggests that the market has a climbing pattern of entrepreneurs and also residence based businesses.

Social factors: Social patterns in the economic situation show that customers are searching for comfort in addition to attractive costs. Marketing research shows how the client for Seitel Inc does not have recognition concerning locating solutions which can supply a combination of ease and inexpensive.

Technical factors: Innovation plays a crucial role in Seitel Inc's company approach specifically as the organization is piloting Innovation facilities which would certainly supply innovation sales as well as assistance in the type of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues as well as Effects.

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

Concerns concerning social adjustment: There is uneasiness regarding a social change that would certainly take place once Todd Krasnow leaves from his position as the Exec Vice President of Advertising with the majority of the team member already showing unhappiness over this prospective move. This anticipated adjustment has created stress in the work environment which has been paired with the previous stress and anxiety of preparing the company for a potential merger with Residence Deport.

Stressful Work Environment for Newcomers: There is lack of workers that can match the difficult atmosphere of a hectic company. Not only does this bring about difficulty in discovering the appropriate people, it puts stress and anxiety on brand-new hires as can not endure the rate and also pressure that the company expects them to bear.

Dual Reporting Lines: Beginners discover this organizational culture cumbersome and difficult to cope with especially as dotted line relationships are indicated to be weak generally and also unbiased setting and also performance analysis is still done by the strong line manager. This suggests that beginners could shed clearness about their corresponding duties and also objectives specifically as populated line coverage does not maintain them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had been guessed that the latter would take Krasnow's setting came as a strike to her morale. Lewis may have been qualified and proper for the task but the reality that Kransnow's departure would make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Job Insecurity: Anxiety and instability can be determined as two major concerns that Lewis would be dealing with especially as the merger has currently be terminated and 2 elderly executives of the advertising and marketing division would certainly be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining regarding a social change however would certainly also have to verify herself in her brand-new role.

Incompatible Administration Design of Leader: Lewis's management design and its incompatibility with the advertising department's function can also be seen as an OB obstacle specifically as she has actually been used to handling concerns in the procedures department where employees are shown to concentrate on processes as well as obtain them right. The marketing division on the other hand can be seen as a group of individuals that are utilized to being nurtured by Krasnow who concentrated much more on output than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between 3 divisions, advertising, merchandizing and also operations specifically over the allocation of the advertising mix can be recognized as one more OB concern. The advertising division does not share the same vision as the other two divisions pertaining to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and procedures divisions do not agree over the advertising mix allotment among one an additional either.

Disintegration in Marketing Division: Disintegration between the advertising and marketing departments can be identified as one more OB concern which could require more interest. The fact that the advertising and marketing sections in the advertising and marketing division are separated is avoiding both departments from obtaining from each various other's experience and also experience. Integration of marketing with retailing as well as operations would become more difficult if the advertising department itself is degenerated which can be an additional possible OB concern.

Seitel Inc Analysis

Various concepts have actually been utilized to discuss the situations to get additional clearness about the scenario at hand.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers think that juniors are passive as well as lazy, have little passion and withstand adjustment. The circumstance at Seitel Inc is not entirely complying with Theory X, it can be seen that new hires are finding this atmosphere rather stressful which may eventually lead to a better disposition of the administration towards Concept X. Also while assessing Lewis's administration design, concept X may have been appropriate in the procedures division to some degree however the Advertising department would certainly require dependence on Concept Y in order to obtain the creativity and also originality from the teams.

Tuckman's Teamwork Concept: As much as Lewis's issue regarding bringing harmony in between the advertising as well as advertising division is worried, this would initially lead to conflict as reviewed by Bruce Tuckman in his 'Team effort Theory'. By incorporating the marketing and advertising department's work, there may be the very same first disconnect which might lead to the second phase of 'storming' where the groups challenge one another.

When people are presented with adjustment, they get in phase one and so there might be emotions like despair, unpredictability, irritation, temper, anxiety, denial and disorientation.The scenario at the advertising and marketing department of Seitel Inc is similar so Lewis can get comfortable with the idea that it is not amazing habits. It is during this phase that Lewis will have to give guidance to the department so that they can find a sense of instructions. It can be seen how Krasnow has already made this change simpler by making Lewis obtain included in the department a year prior to his actual departure.

Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has discusses the relevance of 'protection requires as being a reduced degree need of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel secure and out of threat' is at the second degree of demands. Before a worker can be made to create mentally, he needs to have his 'Physical 'and also 'Security' needs fulfilled.

SWOT Analysis for Seitel Inc Case Study

Effects of Analysis.

The OB analysis has actually considered numerous theories to understand exactly how to manage the present situation handy. The complying with 3 choices have actually been recommended to assist Lewis take care of the organizational challenges in the advertising department. Each of these options has actually been proposed for alleviating the transition required to bring the marketing division in accordance with the requirements of the marketplace and for making the cultural change that would comply with once the present leader leaves.

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

Assessment of Alternatives.

Combination of Advertising & Advertising And Marketing Functions: The internal advertising agency of Seitel Inc is already stamina for the company in regards to saving up on expenses related to advertising and marketing as well as promo. Given that no brand-new recruitment has actually been done after Bridget Cole's departure with the reporting line being straight appointed to Krasnow for the advertising and marketing feature, this is a desirable possibility for integrating the marketing and advertising functions. Judith Shapiro that has earlier been talked to by Lewis during the earlier merging days has knowledge in business-to-business advertising along with firm and retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to handle both marketing and advertising features.

The benefit of this technique is that it will incorporate the two features while minimizing the requirement for employing an added source for advertising and marketing. Lewis would certainly be heading the advertising and marketing department as well as in any type of case her replacement would be needed for the current duty that she is executing. The downside of this option is that outside hiring might cause animosity from inner personnel who may be considering the position of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and also Production: Given the competitive pressures and also excellent quality work called for from the ad agency, it is suggested that Lewis must enable the production system to be a different feature from the marketing system. Since most advertising agencies had these two functions as separate devices, it makes more sense to follow the norm. Both functions might be able to focus on their core turns on much more successfully. The downside of this method would be that additional expenses would have to be borne for setting up separate production functions. In addition to this, a production head might need to be hired which could raise expenses for the organization.

Assimilation of Advertising with Operations: Given that Lewis is currently looking after the advertising and marketing as well as operations divisions concurrently; it makes good sense to incorporate both functions considering that she has actually been effectively looking after both ends. The truth that the two divisions already have major differences over appropriation of sources recommends that this combination may have the ability to bring about consistency particularly as Lewis would certainly be heading both ends.However there are various disadvantages of this move specifically as it would certainly put way too much problem over Lewis's shoulders. The truth that Lewis has to adapt her management style for the advertising division suggests that these two departments would be culturally varied. Lewis may not be able to use one type of management style to both divisions which might result in inefficiency in either one of the 2 features.


An analysis of the three alternatives indicates that assimilation of advertising and also operations would certainly not be a viable move due to the huge differences between the two departments despite the fact that currently Lewis is taking care of both. While splitting up of the manufacturing function may have been a desirable move for the marketing division, the truth that it would certainly mean placing a 3rd function under Lewis's wing implies this should be avoided. The assimilation of the marketing department is the most effective choice in regards to getting the ideal arise from the division. An action plan for this option is reviewed listed below.

Activity Plan.

Lewis will certainly take over the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Production function will certainly remain part of advertising under marketing feature.

Lewis will separate herself from procedures.

A democratic management style with employee empowerment will certainly be made use of in advertising and marketing department.

Open up door plan and emphasis on cross department interaction will certainly be aimed at getting rid of disharmony.

Contingency strategy.

If the combination does not exercise as prepared, a contingency plan would adhere to which would certainly separate the manufacturing feature from the advertising function to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing division without an SVP. In that case the manufacturing feature will most definitely be separated by putting it under an SVP production.