Student Educational Loan Fund Inc Abridged Case Study Solution


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Student Educational Loan Fund Inc Abridged Case Study Analysis

Background and Facts

Student Educational Loan Fund Inc Abridged a workplace materials merchant for tiny and also moderate sized businesses has recently been associated with planning for a merger with its rival Residence Deport, which has influenced effectiveness degrees in departmentswith the elderly supervisor involved in lawful issues presented by the federal Trade Payment. With the Advertising Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the near future. With obstacles in the type of a prospective social adjustment and also low staff member spirits, the organization needs a complete reengineering effort at the advertising division.

Trouble Declaration

The possible social adjustment at the advertising and marketing division of Student Educational Loan Fund Inc Abridged is enhancing unpredictability in the working environment resulting in different obstacles for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting critical choices because Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Profession Compensation's treatment in the process. Given the truth that the store has an international visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries might have the ability to impact performance or critical goals. Federal Profession Payment's antitrust match versus the merger used up important time of the company's elderly management suggesting that 'political' factors can have serious ramifications for an international business.

Economic Factors: Financial factors such as the appearance of local business in the worldwide scenario suggest that Student Educational Loan Fund Inc Abridged is growing in an atmosphere where there is potential development of businesses. In addition to this, fact that store customers are primarily searching for office supplies for home offices suggests that the marketplace has an increasing pattern of business owners and home based companies.

Social factors: Social fads in the economic situation reveal that customers are looking for ease as well as appealing costs. Marketing research shows how the client for Student Educational Loan Fund Inc Abridged does not have understanding about discovering services which can provide a mix of convenience and low costs.

Technological factors: Modern technology plays a crucial duty in Student Educational Loan Fund Inc Abridged's service strategy specifically as the organization is piloting Technology facilities which would use technology sales as well as assistance in the form of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues as well as Effects.

Several underlying Business Habits concerns can be seen in Student Educational Loan Fund Inc Abridged's case as highlighted in this section.

Concerns regarding social adjustment: There is concern about a social modification that would occur once Todd Krasnow leaves from his position as the Exec Vice President of Marketing with most of the team member currently showing discontent over this possible move. This expected modification has created stress and anxiety in the office which has actually been paired with the past anxiety of preparing the firm for a potential merging with House Deport.

Difficult Job Environment for Newcomers: There is scarcity of personnel that can match the difficult setting of a hectic organization. Not just does this lead to trouble in locating the right individuals, it puts stress on new hires as can not stand up to the rate as well as pressure that the organization expects them to bear.

Dual Coverage Lines: Beginners locate this organizational culture troublesome and also hard to cope with especially as dotted line connections are implied to be weak generally and objective setup as well as efficiency examination is still done by the solid line supervisor. This means that newbies can lose quality regarding their corresponding functions as well as purposes particularly as dotted line reporting does not maintain them in straight communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had actually been guessed that the last would certainly take Krasnow's placement came as an impact to her spirits. Lewis might have been qualified and proper for the task but the reality that Kransnow's departure would make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Job Instability: Worry and also instability can be determined as two significant problems that Lewis would certainly be managing especially as the merging has actually now be terminated as well as two elderly execs of the marketing department would certainly be leaving. The entire duty of the division would certainly be dropping on Lewis's shoulders who would not just supervise of brining regarding a social modification yet would certainly also need to show herself in her brand-new function.

Inappropriate Administration Style of Leader: Lewis's administration design as well as its incompatibility with the marketing division's function can additionally be viewed as an OB difficulty especially as she has been utilized to handling issues in the operations department where employees are educated to focus on procedures and obtain them right. The marketing department on the various other hand can be viewed as a group of people who are made use of to being supported by Krasnow who concentrated extra on outcome than processes.

Interdepartmental Arguments: Interdepartmental disputes between three divisions, advertising, merchandizing as well as procedures specifically over the allotment of the advertising and marketing mix can be recognized as an additional OB issue. Although the marketing division does not share the same vision as the other two divisions pertaining to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and also procedures divisions do not agree over the marketing mix appropriation among each other either.

Disintegration in Marketing Division: Disintegration in between the advertising and marketing departments can be identified as another OB concern which can need more attention. The reality that the marketing and advertising areas in the marketing division are separated is protecting against both departments from acquiring from each other's experience as well as experience. Integration of marketing with retailing as well as procedures would certainly come to be more difficult if the advertising department itself is broken down which can be one more prospective OB problem.

Student Educational Loan Fund Inc Abridged Analysis

Numerous concepts have been used to explain the situations to obtain additional clarity about the scenario at hand.

McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers believe that juniors are passive and also lazy, have little aspiration as well as resist adjustment. The hard variation of this concept highlighted coercion, limited controls, dangers and also penalties. Over time it produces reduced productivity, subtle sabotage as well as rivalry (Offer, 2003). Although the situation at Student Educational Loan Fund Inc Abridged is not entirely adhering to Concept X, it can be seen that new hires are locating this setting instead demanding which might at some point result in a higher disposition of the monitoring in the direction of Theory X. According to McGregor's advocated sight, which he called Theory Y, the necessary task of the administration is to set up organizational problems to make sure that individuals can achieve their own objectives best by directing their efforts in the direction of business incentives. If people locate no satisfaction in their work, the management would have little option however to count on concept X and also outside control (Bargain, 2003). Also while evaluating Lewis's administration design, concept X might have appropriated in the procedures department to some extent but the Marketing division would certainly need dependence on Concept Y so as to get the creativity and originality from the teams.

Tuckman's Team effort Theory: As far as Lewis's problem about bringing consistency in between the marketing and advertising department is worried, this would originally lead to conflict as reviewed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, during the preliminary phase of team advancement, individuals might not bond, as they are busy discovering their place in the team. By integrating the marketing and advertising division's work, there may coincide initial disconnect which can cause the 2nd phase of 'storming' where the teams challenge each other. It is only during the 3rd phase or 'norming' when they would come together to share suggestions prior to the group can bring about harmony in the 4th stage 'doing'.

When individuals are provided with modification, they get in stage one and so there may be emotions like despair, unpredictability, disappointment, temper, fear, rejection and also disorientation.The circumstance at the advertising and marketing division of Student Educational Loan Fund Inc Abridged is similar so Lewis can get comfy with the concept that it is not amazing actions. It is during this stage that Lewis will have to give advice to the division so that they can locate a sense of direction. It can be seen how Krasnow has actually currently made this shift much easier by making Lewis get entailed in the department a year before his real departure.

Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has goes over the value of 'protection needs as being a lower level requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel secure and also out of danger' is at the second level of needs. Prior to an employee can be made to create emotionally, he needs to have his 'Physical 'as well as 'Safety' requires satisfied.

SWOT Analysis for Student Educational Loan Fund Inc Abridged Case Study

Effects of Analysis.

The OB analysis has actually checked out different concepts to comprehend just how to manage the current scenario available. The adhering to 3 alternatives have been recommended to assist Lewis manage the business difficulties in the marketing department. Each of these options has actually been recommended for reducing the transition required to bring the advertising department in line with the needs of the market and for making the cultural adjustment that would certainly adhere to as soon as the existing leader leaves.

Integration of marketing and advertising features. Dividing Adverting and Production functions. Assimilation of Marketing with Workflow.

Analysis of Alternatives.

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

The advantage of this strategy is that it will incorporate both features while lowering the requirement for working with an extra resource for marketing. In addition to this, Lewis would certainly be heading the advertising department and all the same her replacement would be needed for the current role that she is performing. The disadvantage of this alternative is that external hiring might bring about bitterness from inner workers that may be considering the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting as well as Production: Offered the competitive stress and also high top quality job needed from the advertising company, it is recommended that Lewis ought to allow the production unit to be a different function from the advertising unit. Considering that many marketing agencies had these two features as separate devices, it makes even more feeling to comply with the norm.

Combination of Advertising And Marketing with Workflows: Because Lewis is currently taking care of the advertising and marketing and procedures departments at the same time; it makes sense to integrate both features because she has been efficiently dealing with both ends. The reality that both departments currently have major differences over allotment of resources suggests that this combination might be able to cause consistency specifically as Lewis would be heading both ends.However there are numerous drawbacks of this action particularly as it would put excessive worry over Lewis's shoulders. The fact that Lewis needs to adjust her administration design for the marketing division recommends that these 2 departments would be culturally diverse. Lewis may not be able to use one kind of leadership style to both departments which could result in ineffectiveness in either one of the 2 features.


An examination of the 3 choices shows that integration of advertising and also operations would certainly not be a practical action because of the vast differences in between the two departments despite the fact that presently Lewis is taking care of both. While separation of the production feature might have been a positive move for the advertising department, the reality that it would certainly mean putting a third function under Lewis's wing suggests this need to be stayed clear of. The combination of the advertising division is the most effective option in terms of getting the optimum arise from the department. An action plan for this alternative is gone over below.

Action Strategy.

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

Advertising and Marketing functions would certainly be combined.

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

Manufacturing function will certainly remain component of advertising and marketing under advertising feature.

Lewis will separate herself from procedures.

An autonomous management style with employee empowerment will certainly be utilized in marketing division.

Open up door plan as well as focus on cross departmental interaction will be targeted at getting rid of discord.

Backup strategy.

If the combination does not work out as planned, a contingency strategy would adhere to which would divide the manufacturing function from the advertising and marketing function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the marketing division without an SVP. In that case the production feature will certainly be separated by positioning it under an SVP production.