Springfield Hospital Case Study Analysis


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Springfield Hospital Case Study Solution

Background and Facts

Springfield Hospital an office products retailer for small as well as medium sized companies has lately been involved in preparing for a merger with its competitor House Deport, which has influenced performance degrees in departmentswith the elderly supervisor involved in lawful difficulties presented by the government Trade Payment. With the Advertising Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the near future. With difficulties in the kind of a possible cultural adjustment and reduced staff member morale, the organization is in need of a complete reengineering effort at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The potential cultural adjustment at the marketing division of Springfield Hospital is raising uncertainty in the workplace causing different challenges for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing strategic decisions given that Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Profession Commission's treatment in the process. Offered the reality that the store has an international visibility with branches in UK, USA, Canada and also Germany, political consider each of these nations may be able to affect efficiency or strategic objectives. Federal Trade Compensation's antitrust match against the merger took up useful time of the organization's elderly monitoring recommending that 'political' factors can have major ramifications for an international company.

Economic Factors: Economic factors such as the introduction of local business in the international scenario suggest that Springfield Hospital is prospering in an environment where there is prospective development of companies. In addition to this, truth that store clients are primarily searching for office products for office recommends that the market has a climbing trend of entrepreneurs and also home companies.

Social factors: Social fads in the economic climate show that customers are trying to find ease along with appealing costs. Marketing research demonstrates how the consumer for Springfield Hospital does not have recognition concerning finding solutions which can supply a mix of benefit as well as affordable.

Technological factors: Technology plays a crucial function in Springfield Hospital's service strategy specifically as the organization is piloting Modern technology facilities which would provide innovation sales as well as assistance in the type of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Organizational Habits issues can be seen in Springfield Hospital's case as highlighted in this section.

Apprehensions about social adjustment: There is worry about a cultural change that would certainly happen when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with the majority of the team member already showing unhappiness over this possible move. This anticipated modification has actually produced stress in the office which has actually been combined with the previous tension of preparing the company for a possible merging with House Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is lack of personnel that can match the stressful setting of a busy company. Not just does this result in problem in discovering the best individuals, it places tension on new hires as can not stand up to the pace and also stress that the organization expects them to bear.

Twin Coverage Lines: Novices discover this business society difficult as well as difficult to cope with particularly as dotted line connections are implied to be weak as a whole and also unbiased setup and also performance assessment is still done by the strong line manager. This suggests that novices might shed clarity concerning their particular duties and objectives specifically as populated line reporting does not maintain them in direct interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been hypothesized that the latter would take Krasnow's position came as a strike to her spirits. Lewis may have been capable as well as proper for the work however the reality that Kransnow's departure would make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Job Insecurity: Worry and insecurity can be identified as 2 major concerns that Lewis would be taking care of specifically as the merging has now be cancelled and two senior execs of the advertising and marketing department would certainly be leaving. The whole duty of the department would be dropping on Lewis's shoulders who would not just be in charge of brining concerning a social change but would certainly additionally need to verify herself in her brand-new role.

Inappropriate Administration Design of Leader: Lewis's monitoring design and its incompatibility with the advertising division's duty can likewise be seen as an OB difficulty particularly as she has been utilized to managing issues in the procedures department where employees are educated to concentrate on procedures and get them. The advertising department on the other hand can be viewed as a group of individuals that are made use of to being nurtured by Krasnow who focused extra on result than procedures.

Interdepartmental Arguments: Interdepartmental arguments in between 3 departments, marketing, merchandizing as well as operations specifically over the allotment of the advertising and marketing mix can be recognized as one more OB worry. The marketing division does not share the very same vision as the various other 2 departments relating to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and operations divisions do not agree over the advertising and marketing mix appropriation among one an additional either.

Fragmentation in Advertising Department: Disintegration between the marketing and advertising divisions can be identified as another OB concern which could require more interest. The fact that the advertising and marketing areas in the advertising and marketing division are separated is preventing both departments from gaining from each various other's experience as well as competence. Assimilation of marketing with merchandising and operations would end up being more difficult if the advertising division itself is broken down which can be an additional prospective OB worry.

Springfield Hospital Analysis

Various theories have been made use of to clarify the scenarios to obtain more clearness about the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers think that juniors are passive and lazy, have little aspiration and also stand up to change. The situation at Springfield Hospital is not completely complying with Theory X, it can be seen that new hires are discovering this environment rather difficult which might ultimately lead to a higher inclination of the management in the direction of Theory X. Also while evaluating Lewis's administration style, theory X may have been appropriate in the operations department to some extent yet the Marketing department would certainly require reliance on Theory Y in order to get the creativity and creativity from the groups.

Tuckman's Team effort Theory: Regarding Lewis's worry regarding bringing consistency in between the marketing and advertising division is concerned, this would originally result in conflict as discussed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, during the first phase of group growth, people might not bond, as they are busy locating their place in the team. By integrating the advertising and marketing department's job, there might be the same initial separate which could lead to the second stage of 'storming' where the groups challenge each other. It is only throughout the third phase or 'norming' when they would come with each other to share ideas before the team can bring around harmony in the fourth stage 'executing'.

When individuals are presented with adjustment, they enter stage one as well as so there might be emotions like sadness, uncertainty, disappointment, temper, worry, rejection and disorientation.The scenario at the advertising and marketing department of Springfield Hospital is similar so Lewis can obtain comfortable with the suggestion that it is not phenomenal behavior. It is during this stage that Lewis will certainly have to give advice to the division so that they can find a feeling of instructions. It can be seen exactly how Krasnow has currently made this shift simpler by making Lewis obtain involved in the department a year prior to his real departure.
Vrio Analysis
Maslow's Requirement pecking order: The OB problem pertaining to instability at the work environment has been activated to start with by the modification in administration as well as secondly by the fact that the merger will no more be started. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has goes over the significance of 'safety and security requires as being a reduced degree demand of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the requirement to really feel safe and secure as well as untouched' is at the 2nd level of demands. Prior to a staff member can be made to develop mentally, he requires to have his 'Physical 'as well as 'Safety' requires met. This indicates that unless the employees are made to feel safe about their current work condition in Springfield Hospital they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Springfield Hospital Case Study

Implication of Analysis.

The OB analysis has actually checked out various theories to comprehend how to manage the current scenario handy. The complying with 3 options have actually been proposed to help Lewis take care of the organizational challenges in the marketing department. Each of these alternatives has actually been suggested for easing the shift needed to bring the marketing division in line with the requirements of the marketplace as well as for making the cultural adjustment that would certainly comply with as soon as the current leader leaves.

Combination of marketing and advertising functions. Separating Adverting and Manufacturing functions. Assimilation of Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merging days has experience in business-to-business advertising and marketing along with company and retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to handle both advertising and marketing and also advertising functions.

The benefit of this method is that it will certainly incorporate both functions while minimizing the demand for employing an additional resource for advertising. In addition to this, Lewis would certainly be heading the advertising division and all the same her replacement would be needed for the current function that she is doing. The negative aspect of this alternative is that outside hiring might cause resentment from inner employees that might be considering the position of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and Manufacturing: Offered the affordable stress as well as high quality work called for from the advertising and marketing company, it is recommended that Lewis needs to allow the production unit to be a separate function from the advertising system. Since many advertising and marketing companies had these 2 features as different units, it makes even more feeling to follow the norm.

Integration of Advertising And Marketing with Operations: Considering that Lewis is already caring for the advertising and procedures divisions all at once; it makes sense to integrate both features given that she has been efficiently dealing with both ends. The reality that the two departments currently have significant distinctions over appropriation of resources recommends that this combination may be able to produce harmony specifically as Lewis would certainly be heading both ends.However there are numerous negative aspects of this move particularly as it would place excessive concern over Lewis's shoulders. The reality that Lewis needs to adjust her management design for the marketing department recommends that these 2 divisions would certainly be culturally varied. Lewis might not be able to apply one type of leadership style to both divisions which could result in inefficiency in either one of the two features.


An examination of the three alternatives shows that integration of advertising and marketing as well as procedures would not be a possible move due to the vast differences between the two divisions despite the fact that presently Lewis is taking care of both. While separation of the manufacturing feature may have been a favorable relocation for the advertising department, the fact that it would indicate putting a third feature under Lewis's wing means this need to be avoided too. The assimilation of the advertising division is the best option in terms of obtaining the optimal results from the department. An activity prepare for this choice is talked about below.

Activity Plan.
Lewis will take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

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

Lewis will separate herself from procedures.

An autonomous management design with employee empowerment will certainly be utilized in advertising and marketing division.

Open up door policy and also focus on cross departmental communication will be focused on removing dissonance.

Contingency strategy.

If the combination does not exercise as planned, a backup strategy would certainly comply with which would certainly separate the production function from the advertising and marketing function to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising division without an SVP. In that case the manufacturing function will absolutely be divided by putting it under an SVP manufacturing.