Student Educational Loan Fund Inc Abridged Case Study Help


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Student Educational Loan Fund Inc Abridged Case Study Help

Background and Facts

Student Educational Loan Fund Inc Abridged an office materials store for tiny as well as medium sized companies has recently been associated with preparing for a merging with its rival House Deport, which has influenced effectiveness levels in departmentswith the elderly manager involved in legal difficulties put forth by the government Trade Payment. With the Advertising and marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the existing head of procedures has been asked to take the duty in the future. With difficulties in the type of a potential cultural modification and reduced staff member morale, the organization is in need of a total reengineering initiative at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising division of Student Educational Loan Fund Inc Abridged is increasing uncertainty in the workplace causing different obstacles 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 duty in impacting critical choices considering that Stapes Inc. needed to desert its strategies of combining with Office Deport after the Federal Profession Compensation's treatment while doing so. Given the truth that the store has a worldwide presence with branches in UK, USA, Canada and also Germany, political factors in each of these nations may be able to influence efficiency or strategic goals. Federal Trade Compensation's antitrust suit versus the merger took up useful time of the company's elderly monitoring recommending that 'political' factors can have significant implications for a global organisation.

Economic Factors: Economic factors such as the appearance of local business in the worldwide circumstance recommend that Student Educational Loan Fund Inc Abridged is prospering in an atmosphere where there is potential growth of businesses. In addition to this, fact that shop consumers are mainly trying to find workplace materials for office suggests that the marketplace has a climbing trend of business owners and also home services.

Social factors: Social fads in the economy show that customers are seeking ease in addition to appealing rates. Marketing research shows how the client for Student Educational Loan Fund Inc Abridged lacks recognition concerning locating options which can use a mix of ease and also inexpensive.

Technical factors: Modern technology plays an important role in Student Educational Loan Fund Inc Abridged's service method especially as the organization is piloting Technology centers which would certainly supply modern technology sales and support in the kind of memory upgrades, outer installations. (Recap of INSECT in appendix 2).

OB Issues and also Symptoms.

Several underlying Organizational Behavior problems can be seen in Student Educational Loan Fund Inc Abridged's case as highlighted in this section.

Apprehensions regarding cultural adjustment: There is apprehension about a cultural modification that would occur as soon as Todd Krasnow leaves from his position as the Executive Vice President of Advertising with most of the team member already showing discontent over this potential step. This anticipated adjustment has developed tension in the office which has actually been combined with the previous tension of preparing the firm for a potential merger with Residence Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is shortage of employees that can match the demanding setting of a fast-paced company. Not only does this bring about trouble in finding the appropriate people, it places stress and anxiety on brand-new hires as can not hold up against the speed and pressure that the organization expects them to bear.

Double Reporting Lines: Newbies locate this business society cumbersome as well as tough to manage specifically as dotted line relationships are meant to be weaker in general and also objective setting and also performance analysis is still done by the solid line manager. This means that newbies can lose quality regarding their corresponding functions as well as objectives specifically as dotted line coverage does not keep them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had been guessed that the last would certainly take Krasnow's setting came as a blow to her morale. Lewis may have been capable and ideal for the task but the reality that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from services.

Worry & Task Insecurity: Concern as well as instability can be identified as two major issues that Lewis would be taking care of especially as the merging has now be cancelled as well as 2 senior executives of the marketing department would be leaving. The whole responsibility of the department would be falling on Lewis's shoulders who would not simply supervise of brining regarding a cultural modification however would certainly additionally have to prove herself in her brand-new duty.

Inappropriate Management Style of Leader: Lewis's monitoring style and also its conflict with the advertising and marketing department's function can also be seen as an OB challenge especially as she has been utilized to managing problems in the procedures division where workers are taught to concentrate on procedures and also get them. The marketing department on the various other hand can be viewed as a team of individuals who are made use of to being nurtured by Krasnow that focused much more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between three departments, advertising and marketing, merchandizing and procedures specifically over the allotment of the advertising mix can be recognized as one more OB worry. The advertising division does not share the exact same vision as the various other two departments regarding the aloocation of the advertising mix twoards promos and advertsing, the merchandizing as well as operations divisions do not concur over the advertising mix allotment amongst one another either.

Fragmentation in Advertising Division: Disintegration between the advertising and marketing divisions can be determined as another OB issue which can require additional attention. The truth that the marketing and advertising sections in the advertising division are disconnected is stopping both divisions from gaining from each other's experience and expertise. Combination of advertising with retailing and operations would become harder if the marketing department itself is disintegrated which can be an additional potential OB problem.

Student Educational Loan Fund Inc Abridged Analysis

Various theories have actually been utilized to explain the circumstances to get further clarity about the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers believe that subordinates are easy as well as careless, have little aspiration as well as resist change. The tough version of this theory emphasized threat, limited controls, threats as well as punishments. With time it creates reduced productivity, refined sabotage as well as competition (Offer, 2003). The scenario at Student Educational Loan Fund Inc Abridged is not entirely following Theory X, it can be seen that brand-new hires are locating this setting instead demanding which may eventually lead to a higher disposition of the administration towards Concept X. According to McGregor's promoted view, which he called Concept Y, the vital job of the monitoring is to set up business problems so that individuals can attain their very own goals best by guiding their initiatives towards business rewards. If individuals discover no complete satisfaction in their work, the administration would have little selection but to rely upon theory X as well as outside control (Deal, 2003). Also while assessing Lewis's monitoring style, concept X may have been suitable in the operations department to some extent yet the Advertising department would certainly require reliance on Concept Y in order to get the creative thinking as well as creativity from the teams.

Tuckman's Teamwork Concept: As for Lewis's concern concerning bringing harmony in between the marketing and advertising division is concerned, this would originally bring about conflict as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, throughout the preliminary phase of group growth, individuals might not bond, as they are active discovering their location in the group. By incorporating the advertising and marketing division's work, there may coincide first detach which might result in the 2nd phase of 'storming' where the groups challenge each other. It is only during the 3rd stage or 'norming' when they would come with each other to share ideas prior to the team can bring about synergy in the fourth stage 'executing'.

When people are offered with modification, they get in phase one and so there may be emotions like sadness, unpredictability, irritation, anger, worry, denial as well as disorientation.The situation at the marketing department of Student Educational Loan Fund Inc Abridged is comparable so Lewis can obtain comfy with the idea that it is not phenomenal behavior. It is throughout this stage that Lewis will certainly have to give support to the department so that they can discover a feeling of direction. It can be seen how Krasnow has actually currently made this change less complicated by making Lewis obtain involved in the department a year prior to his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has reviews the significance of 'safety requires as being a reduced degree demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel secure as well as out of risk' is at the second degree of needs. Prior to an employee can be made to establish mentally, he requires to have his 'Physiological 'and also 'Safety and security' needs fulfilled.

SWOT Analysis for Student Educational Loan Fund Inc Abridged Case Study

Implication of Analysis.

The OB analysis has checked out various concepts to comprehend how to handle the current situation at hand. The following three choices have been proposed to help Lewis deal with the business difficulties in the advertising division. Each of these alternatives has been suggested for alleviating the transition needed to bring the marketing division according to the needs of the market as well as for making the social adjustment that would certainly comply with once the present leader leaves.

Integration of marketing and advertising features. Dividing Adverting and also Manufacturing features. Assimilation of Advertising And Marketing with Procedures.

Analysis of Alternatives.

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

The benefit of this method is that it will certainly incorporate both functions while minimizing the requirement for working with an added source for marketing. Lewis would be heading the marketing department and also in any case her substitute would certainly be needed for the present function that she is performing. The disadvantage of this choice is that external hiring might bring about animosity from inner employees who might be considering the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Manufacturing: Provided the competitive stress and top quality work needed from the advertising agency, it is recommended that Lewis needs to enable the manufacturing system to be a different feature from the advertising and marketing unit. Considering that many ad agency had these 2 features as different systems, it makes more feeling to adhere to the norm. In addition to this, both features may have the ability to focus on their core activates extra successfully. The drawback of this technique would be that added expenses would have to be borne for setting up separate manufacturing functions. A production head may have to be hired which can boost expenses for the company.

Assimilation of Advertising with Procedures: Because Lewis is currently taking care of the advertising and marketing as well as operations departments at the same time; it makes sense to incorporate the 2 features given that she has been successfully taking treatment of both ends. The fact that Lewis has to adjust her administration style for the advertising and marketing department recommends that these 2 divisions would certainly be culturally diverse.


An assessment of the 3 choices suggests that integration of advertising and operations would not be a possible move due to the substantial distinctions in between the 2 divisions regardless of the fact that presently Lewis is managing both. While splitting up of the manufacturing feature might have been a beneficial action for the advertising department, the fact that it would certainly imply putting a 3rd feature under Lewis's wing implies this ought to be avoided.

Action Plan.
Lewis will certainly take over the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

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

Production feature will remain component of marketing under marketing feature.

Lewis will certainly divide herself from operations.

A democratic leadership style with worker empowerment will certainly be used in advertising division.

Open door policy and emphasis on cross department interaction will certainly be focused on removing discord.

Contingency plan.

If the combination does not exercise as prepared, a backup strategy would certainly follow which would divide the production feature from the marketing feature to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising department without an SVP. Because case the production function will certainly be separated by placing it under an SVP manufacturing.