Social Security Reform Case Study Analysis


Home >> Harvard >> Social Security Reform >>

Social Security Reform Case Study Help

Background and Facts

Social Security Reform an office products store for tiny as well as average sized organisations has just recently been involved in planning for a merger with its competitor Home Deport, which has impacted effectiveness levels in departmentswith the elderly manager associated with lawful difficulties presented by the federal Trade Compensation. With the Advertising and marketing Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the near future. With obstacles in the kind of a possible social adjustment and also reduced employee spirits, the organization is in need of a full reengineering effort at the advertising and marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective cultural change at the marketing department of Social Security Reform is enhancing uncertainty in the workplace resulting in numerous difficulties for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting critical decisions since Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Profession Compensation's treatment at the same time. Provided the truth that the shop has a global presence with branches in UK, U.S.A., Canada and also Germany, political consider each of these nations might be able to affect performance or calculated objectives. Federal Profession Compensation's antitrust suit against the merger used up valuable time of the company's elderly monitoring suggesting that 'political' factors can have significant effects for a global company.

Economic Factors: Financial factors such as the introduction of small companies in the international circumstance recommend that Social Security Reform is prospering in an atmosphere where there is possible growth of businesses. In addition to this, truth that store customers are mainly trying to find office products for office suggests that the market has a rising fad of entrepreneurs and also home based businesses.

Social factors: Social fads in the economy reveal that consumers are looking for comfort along with eye-catching costs. Market research shows how the client for Social Security Reform does not have awareness regarding locating remedies which can use a combination of comfort and inexpensive.

Technical factors: Modern technology plays an essential duty in Social Security Reform's business technique particularly as the organization is piloting Technology centers which would certainly offer modern technology sales as well as support in the kind of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues and also Symptoms.

Several underlying Business Habits issues can be seen in Social Security Reform's case as highlighted in this section.

Apprehensions concerning cultural adjustment: There is apprehension about a social adjustment that would happen as soon as Todd Krasnow leaves from his setting as the Executive Vice President of Advertising with most of the staff members already showing discontent over this potential step. This predicted change has produced stress in the office which has been combined with the past tension of preparing the firm for a potential merging with House Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is scarcity of workers that can match the demanding setting of a busy company. Not just does this cause trouble in discovering the right people, it puts anxiety on brand-new hires as can not withstand the speed as well as pressure that the company expects them to bear.

Twin Reporting Lines: Newbies find this business culture difficult and also challenging to cope with especially as dotted line relationships are suggested to be weak in general as well as unbiased setup as well as efficiency analysis is still done by the solid line supervisor. This means that novices might shed clearness regarding their corresponding duties and also purposes particularly as populated line reporting does not keep them in direct interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been guessed that the last would certainly take Krasnow's placement came as a strike to her morale. Lewis may have been qualified as well as ideal for the job yet the reality that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Anxiety & Task Instability: Concern and instability can be determined as 2 major worries that Lewis would certainly be handling specifically as the merger has actually currently be cancelled and 2 elderly executives of the marketing division would be leaving. The whole obligation of the division would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining concerning a cultural modification yet would certainly additionally need to verify herself in her new duty.

Inappropriate Administration Design of Leader: Lewis's management design and also its conflict with the marketing department's function can additionally be seen as an OB difficulty especially as she has actually been used to managing concerns in the operations division where workers are taught to focus on processes and get them. The advertising department on the other hand can be viewed as a group of people who are used to being nurtured by Krasnow that focused much more on output than procedures.

Interdepartmental Differences: Interdepartmental disputes in between three divisions, advertising and marketing, merchandizing as well as procedures respectively over the appropriation of the advertising mix can be determined as another OB worry. Although the advertising and marketing department does not share the very same vision as the various other 2 divisions concerning the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and operations departments do not concur over the advertising and marketing mix appropriation amongst each other either.

Disintegration in Advertising Division: Fragmentation between the advertising and marketing divisions can be recognized as another OB concern which might require additional interest. The truth that the marketing and advertising sections in the advertising department are detached is avoiding both departments from getting from each other's experience and experience. Assimilation of advertising and marketing with merchandising and procedures would come to be harder if the marketing department itself is degenerated which can be one more prospective OB worry.

Social Security Reform Analysis

Numerous concepts have actually been used to describe the circumstances to obtain additional clearness about the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that subordinates are passive as well as lazy, have little aspiration as well as stand up to change. The circumstance at Social Security Reform is not entirely adhering to Theory X, it can be seen that new hires are finding this setting rather stressful which might eventually lead to a better disposition of the monitoring towards Theory X. Also while analyzing Lewis's management design, concept X might have been ideal in the procedures division to some degree however the Marketing division would certainly require reliance on Theory Y in order to get the creative thinking as well as originality from the groups.

Tuckman's Synergy Theory: As for Lewis's issue regarding bringing harmony between the marketing and advertising division is concerned, this would originally lead to clash as gone over by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, during the initial stage of team development, individuals might not bond, as they are hectic locating their place in the team. By combining the advertising and marketing division's work, there may coincide preliminary separate which could bring about the second phase of 'storming' where the teams test one another. Nevertheless, it is only during the 3rd stage or 'norming' when they would come together to share ideas before the group can cause harmony in the 4th stage 'performing'.

When individuals are presented with adjustment, they go into phase one and also so there might be feelings like despair, uncertainty, disappointment, anger, concern, rejection as well as disorientation.The scenario at the marketing department of Social Security Reform is similar so Lewis can obtain comfy with the concept that it is not amazing behavior. It is throughout this phase that Lewis will have to provide guidance to the division so that they can locate a feeling of direction. It can be seen how Krasnow has already made this shift easier by making Lewis obtain involved in the department a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has goes over the importance of 'protection needs as being a reduced level need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel protected and out of threat' is at the 2nd level of requirements. Prior to an employee can be made to create mentally, he needs to have his 'Physiological 'as well as 'Security' requires fulfilled.

SWOT Analysis for Social Security Reform Case Study

Ramification of Analysis.

The OB analysis has looked at different theories to understand exactly how to cope with the existing situation handy. The complying with 3 options have actually been recommended to assist Lewis handle the organizational challenges in the advertising and marketing department. Each of these alternatives has actually been recommended for reducing the transition needed to bring the marketing department in line with the requirements of the market as well as for making the social change that would comply with as soon as the existing leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting as well as Production functions. Combination of Advertising with Operations.

Analysis of Alternatives.

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

The advantage of this approach is that it will certainly integrate the two features while minimizing the need for employing an additional resource for advertising and marketing. Lewis would certainly be heading the marketing department and in any kind of case her substitute would certainly be required for the existing duty that she is doing. The downside of this alternative is that exterior hiring may cause bitterness from internal employees that might be considering the setting of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Manufacturing: Provided the affordable pressures as well as high quality work called for from the ad agency, it is advised that Lewis ought to enable the production system to be a different function from the marketing system. Considering that the majority of ad agency had these two features as separate units, it makes even more feeling to comply with the standard. Both functions might be able to focus on their core activates a lot more effectively. The negative aspect of this technique would certainly be that additional costs would certainly have to be borne for setting up different production features. Along with this, a manufacturing head might have to be hired which can enhance expenses for the organization.

Integration of Advertising And Marketing with Workflows: Considering that Lewis is already taking care of the advertising and also operations departments at the same time; it makes sense to integrate the two functions because she has been successfully taking care of both ends. The fact that Lewis has to adapt her monitoring style for the marketing department suggests that these two divisions would certainly be culturally varied.


An analysis of the 3 alternatives suggests that assimilation of marketing as well as procedures would not be a practical move as a result of the large distinctions in between the two divisions although that presently Lewis is managing both. While splitting up of the production function might have been a beneficial action for the advertising and marketing division, the reality that it would certainly imply putting a 3rd feature under Lewis's wing suggests this should be stayed clear of as well. The assimilation of the advertising department is the very best alternative in terms of getting the ideal results from the division. An action plan for this choice is discussed below.

Activity Strategy.
Lewis will take control of the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

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

Manufacturing function will certainly continue to be part of marketing under marketing feature.

Lewis will certainly divide herself from procedures.

An autonomous management style with staff member empowerment will be used in marketing department.

Open door policy and also emphasis on cross department communication will be focused on removing disharmony.

Backup plan.

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