Silicon Graphics Inc Case Study Solution


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Silicon Graphics Inc Case Study Solution

Background and Facts

Silicon Graphics Inc a workplace products store for tiny and also moderate sized organisations has just recently been associated with preparing for a merging with its competitor Residence Deport, which has affected performance degrees in departmentswith the elderly supervisor involved in legal complications put forth by the government Profession Payment. With the Marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the function in the future. With challenges in the form of a possible social adjustment and reduced staff member spirits, the organization wants a complete reengineering effort at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The prospective social modification at the marketing department of Silicon Graphics Inc is increasing unpredictability in the working environment causing numerous challenges for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting calculated choices because Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Payment's intervention while doing so. Provided the truth that the store has a worldwide presence with branches in UK, USA, Canada as well as Germany, political consider each of these countries might have the ability to influence efficiency or critical goals. Federal Trade Commission's antitrust fit against the merger occupied useful time of the organization's elderly administration recommending that 'political' factors can have serious implications for a global company.

Economic Factors: Economic factors such as the introduction of local business in the worldwide situation suggest that Silicon Graphics Inc is flourishing in an environment where there is prospective growth of companies. Truth that shop clients are mainly looking for workplace products for residence workplaces recommends that the market has an increasing pattern of entrepreneurs and also home based organisations.

Social factors: Social fads in the economic climate show that customers are seeking convenience along with appealing costs. Marketing research shows how the customer for Silicon Graphics Inc lacks awareness concerning finding options which can offer a combination of ease and also inexpensive.

Technological factors: Technology plays a crucial role in Silicon Graphics Inc's business method particularly as the company is piloting Innovation facilities which would certainly use technology sales and assistance in the form of memory upgrades, peripheral setups. (Summary of PARASITE in appendix 2).

OB Issues and also Effects.

Several underlying Business Actions issues can be seen in Silicon Graphics Inc's case as highlighted in this section.

Worries about cultural modification: There is uneasiness about a social modification that would certainly occur once Todd Krasnow leaves from his setting as the Exec Vice President of Advertising And Marketing with most of the employee currently showing discontent over this possible move. This predicted adjustment has actually produced stress and anxiety in the office which has actually been combined with the previous stress and anxiety of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Demanding Job Environment for Newcomers: There is lack of personnel that can match the demanding atmosphere of a busy organization. Not just does this result in trouble in finding the best individuals, it places anxiety on new hires as can not hold up against the speed and stress that the company expects them to bear.

Dual Coverage Lines: Beginners discover this business society troublesome and hard to deal with especially as populated line relationships are suggested to be weaker generally as well as unbiased setup and efficiency assessment is still done by the solid line supervisor. This indicates that newcomers can shed clearness about their corresponding functions as well as purposes specifically as dotted line reporting does not maintain them in direct communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles even though it had actually been speculated that the last would take Krasnow's setting came as a blow to her spirits. Lewis may have been qualified as well as appropriate for the task yet the fact that Kransnow's departure would make Coles a direct record to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Job Instability: Worry as well as instability can be determined as two significant issues that Lewis would certainly be dealing with particularly as the merging has actually currently be cancelled as well as two elderly execs of the advertising and marketing department would certainly be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders that would not just be in charge of brining concerning a social adjustment but would certainly additionally have to prove herself in her brand-new role.

Incompatible Administration Design of Leader: Lewis's monitoring design and also its conflict with the advertising and marketing department's function can also be seen as an OB difficulty specifically as she has been made use of to dealing with issues in the operations division where personnel are instructed to focus on processes as well as get them. The advertising and marketing department on the other hand can be seen as a group of individuals who are made use of to being supported by Krasnow who concentrated much more on outcome than procedures.

Interdepartmental Disputes: Interdepartmental disputes in between three divisions, advertising and marketing, merchandizing as well as operations respectively over the allotment of the advertising and marketing mix can be identified as another OB problem. Although the marketing department does not share the very same vision as the other two divisions relating to the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and operations divisions do not agree over the advertising mix allotment among one another either.

Fragmentation in Marketing Department: Disintegration in between the advertising and marketing divisions can be determined as another OB concern which might need more interest. The reality that the marketing and advertising areas in the advertising department are separated is preventing both departments from getting from each other's experience and also proficiency. Combination of marketing with merchandising as well as procedures would certainly come to be more difficult if the advertising division itself is degenerated which can be another possible OB problem.

Silicon Graphics Inc Analysis

Numerous concepts have been made use of to explain the conditions to get further clearness concerning the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors think that juniors are passive and careless, have little passion as well as resist change. The circumstance at Silicon Graphics Inc is not totally complying with Concept X, it can be seen that brand-new hires are finding this atmosphere rather demanding which may at some point lead to a higher disposition of the management in the direction of Theory X. Even while examining Lewis's management design, concept X might have been suitable in the procedures department to some degree but the Advertising division would call for dependence on Theory Y in order to obtain the creative thinking as well as originality from the groups.

Tuckman's Teamwork Concept: As far as Lewis's concern concerning bringing consistency between the advertising and marketing division is concerned, this would initially lead to conflict as discussed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, during the initial phase of team development, individuals may not bond, as they are hectic finding their place in the group. By incorporating the advertising and marketing department's job, there might coincide first separate which might cause the 2nd stage of 'storming' where the teams challenge each other. Nevertheless, it is just throughout the third phase or 'norming' when they would certainly integrate to share ideas prior to the team can bring about synergy in the fourth stage 'doing'.

Bridges' Shift Model: According To William Bridge's theory (appendix 4), people are rather uncomfortable with change, which is obvious by the circumstance at Silicon Graphics Inc The situation can be seen as a normal course of life if is examined according to Bridge's theory where he describes that people undergo 3 phases of change when they experience adjustment. 'End, shedding as well as Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When individuals are presented with modification, they go into phase one and so there might be emotions like sadness, uncertainty, disappointment, temper, fear, rejection as well as disorientation.The circumstance at the advertising and marketing department of Silicon Graphics Inc is comparable so Lewis can get comfy with the suggestion that it is not phenomenal behavior. In the second phase, there might be a requirement to connect the void between the new and also old culture so Lewis might have to face this challenge when Krasnow leaves. There may be low spirits and low efficiency at this phase which need to not be taken as a setback. It is throughout this stage that Lewis will certainly have to provide guidance to the department to make sure that they can discover a sense of direction. It can be seen just how Krasnow has actually already made this transition simpler by making Lewis obtain involved in the division a year before his actual separation. According to Bridges' Model, stage three will certainly produce openness to learning, High energy as well as commitment as people will certainly accept the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has discusses the value of 'safety requires as being a reduced level need of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel safe and also out of danger' is at the second level of requirements. Prior to a worker can be made to establish mentally, he requires to have his 'Physical 'and also 'Safety' needs satisfied.

SWOT Analysis for Silicon Graphics Inc Case Study

Effects of Analysis.

The OB analysis has actually checked out different concepts to recognize how to cope with the existing circumstance at hand. The adhering to 3 choices have actually been suggested to aid Lewis deal with the business challenges in the advertising and marketing department. Each of these options has actually been proposed for alleviating the shift needed to bring the marketing department in accordance with the demands of the marketplace and for making the social adjustment that would certainly adhere to as soon as the existing leader leaves.

Integration of marketing and advertising features. Separating Adverting and also Manufacturing functions. Combination of Advertising And Marketing with Operations.

Assessment of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis during the earlier merging days has competence in business-to-business advertising along with company as well as retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to manage both advertising as well as advertising and marketing functions.

The benefit of this strategy is that it will certainly incorporate the two functions while reducing the requirement for hiring an added resource for marketing. Lewis would certainly be heading the advertising department as well as in any kind of case her substitute would be needed for the present duty that she is executing. The negative aspect of this alternative is that external hiring might bring about animosity from interior employees who might be considering the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Production: Given the affordable pressures and also high top quality job required from the advertising and marketing agency, it is recommended that Lewis needs to allow the manufacturing unit to be a different feature from the advertising system. Because many advertising and marketing agencies had these 2 features as different units, it makes even more sense to follow the norm.

Combination of Advertising with Operations: Given that Lewis is currently caring for the marketing and operations divisions all at once; it makes good sense to incorporate both features considering that she has been successfully caring for both ends. The truth that both divisions currently have significant differences over allowance of resources recommends that this combination might have the ability to bring about consistency specifically as Lewis would be heading both ends.However there are various drawbacks of this action particularly as it would place too much concern over Lewis's shoulders. The fact that Lewis has to adjust her monitoring design for the advertising division suggests that these two departments would be culturally varied. Lewis may not be able to use one type of leadership style to both divisions which could result in inadequacy in either one of the two functions.


An evaluation of the 3 alternatives suggests that assimilation of advertising and marketing and also procedures would certainly not be a practical move due to the substantial distinctions between the two departments despite the fact that currently Lewis is taking care of both. While splitting up of the production feature might have been a desirable move for the advertising and marketing division, the reality that it would certainly indicate positioning a 3rd function under Lewis's wing indicates this should be stayed clear of.

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

Marketing and advertising functions would certainly be combined.

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

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

Lewis will certainly separate herself from operations.

An autonomous leadership style with worker empowerment will certainly be used in advertising and marketing department.

Open up door policy as well as focus on cross departmental communication will be aimed at getting rid of disharmony.

Backup strategy.

If the combination does not work out as planned, a contingency plan would certainly follow which would separate the manufacturing feature from the marketing feature to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising and marketing division without an SVP. In that case the production function will absolutely be divided by putting it under an SVP manufacturing.