Student Educational Loan Fund Inc Case Study Help


Home >> Harvard >> Student Educational Loan Fund Inc >>

Student Educational Loan Fund Inc Case Study Solution

Background and Facts

Student Educational Loan Fund Inc an office supplies store for tiny and also medium sized organisations has recently been involved in planning for a merging with its rival House Deport, which has impacted effectiveness degrees in departmentswith the senior manager associated with lawful issues presented by the federal Profession Commission. With the Advertising Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the near future. With difficulties in the form of a prospective social adjustment and low employee morale, the organization requires a complete reengineering effort at the advertising division.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising division of Student Educational Loan Fund Inc is raising uncertainty in the workplace leading to various challenges for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting tactical choices since Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Trade Payment's treatment while doing so. Offered the reality that the shop has a worldwide existence with branches in UK, USA, Canada and also Germany, political factors in each of these countries may have the ability to affect performance or strategic objectives. Federal Profession Commission's antitrust suit versus the merger took up useful time of the company's senior administration suggesting that 'political' factors can have major effects for an international organisation.

Economic Factors: Economic factors such as the emergence of small companies in the worldwide circumstance suggest that Student Educational Loan Fund Inc is flourishing in an environment where there is prospective growth of services. Along with this, fact that shop consumers are mostly trying to find office supplies for office suggests that the marketplace has a climbing fad of entrepreneurs and home based businesses.

Social factors: Social trends in the economy reveal that clients are searching for benefit as well as attractive prices. Market research demonstrates how the customer for Student Educational Loan Fund Inc does not have understanding about locating solutions which can offer a combination of comfort as well as inexpensive.

Technological factors: Innovation plays an important function in Student Educational Loan Fund Inc's business approach especially as the organization is piloting Innovation facilities which would provide modern technology sales and support in the type of memory upgrades, peripheral installations. (Recap of PARASITE in appendix 2).

OB Issues as well as Symptoms.

Several underlying Business Actions problems can be seen in Student Educational Loan Fund Inc's case as highlighted in this area.

Apprehensions about cultural adjustment: There is worry concerning a social adjustment that would take place as soon as Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with a lot of the employee already revealing unhappiness over this possible action. This expected adjustment has actually developed stress in the workplace which has been combined with the past stress of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is scarcity of workers that can match the stressful atmosphere of a hectic company. Not just does this bring about problem in locating the appropriate people, it puts stress and anxiety on brand-new hires as can not endure the pace and pressure that the company anticipates them to birth.

Dual Reporting Lines: Novices discover this organizational culture troublesome as well as difficult to deal with especially as populated line relationships are indicated to be weak as a whole as well as objective setup as well as efficiency assessment is still done by the strong line manager. This suggests that beginners can shed clarity concerning their corresponding duties and goals specifically as dotted line coverage does not maintain them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles although it had actually been hypothesized that the latter would take Krasnow's position came as a strike to her spirits. Lewis might have been qualified and also appropriate for the task but the truth that Kransnow's separation would make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Work Instability: Concern as well as insecurity can be determined as 2 major concerns that Lewis would be taking care of particularly as the merger has currently be cancelled as well as 2 elderly execs of the marketing department would be leaving. The entire obligation of the division would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining regarding a cultural adjustment yet would also have to verify herself in her brand-new duty.

Inappropriate Administration Design of Leader: Lewis's management design and also its conflict with the advertising and marketing department's role can additionally be seen as an OB difficulty specifically as she has actually been made use of to taking care of issues in the procedures department where workers are educated to concentrate on procedures as well as obtain them. The marketing division on the various other hand can be seen as a team of people who are used to being supported by Krasnow who concentrated more on output than processes.

Interdepartmental Differences: Interdepartmental arguments in between three departments, advertising, merchandizing as well as operations respectively over the allotment of the advertising and marketing mix can be identified as another OB worry. Although the marketing department does not share the same vision as the other 2 divisions regarding the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and also operations departments do not concur over the marketing mix allotment amongst each other either.

Disintegration in Marketing Division: Fragmentation between the advertising and marketing divisions can be recognized as one more OB problem which can require further attention. The fact that the marketing and advertising areas in the advertising division are separated is stopping both divisions from gaining from each various other's experience as well as competence. Assimilation of marketing with merchandising and procedures would certainly come to be more difficult if the advertising department itself is broken down which can be another prospective OB issue.

Student Educational Loan Fund Inc Analysis

Numerous concepts have been used to explain the scenarios to obtain further clarity concerning the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors think that juniors are easy and also lazy, have little ambition and also stand up to modification. The hard version of this concept highlighted browbeating, tight controls, risks and also penalties. With time it creates reduced productivity, refined sabotage and competition (Deal, 2003). Although the circumstance at Student Educational Loan Fund Inc is not totally adhering to Theory X, it can be seen that new hires are finding this environment rather difficult which might at some point lead to a better inclination of the management in the direction of Concept X. As per McGregor's supported sight, which he called Concept Y, the necessary job of the administration is to organize business problems so that people can attain their very own goals best by guiding their initiatives towards organizational benefits. If individuals find no contentment in their work, the administration would certainly have little selection but to rely upon concept X as well as external control (Offer, 2003). Even while evaluating Lewis's monitoring style, concept X might have appropriated in the operations division somewhat yet the Advertising and marketing division would require dependence on Concept Y in order to get the imagination and originality from the teams.

Tuckman's Teamwork Concept: As far as Lewis's issue concerning bringing harmony between the marketing and also advertising and marketing department is worried, this would initially lead to clash as reviewed by Bruce Tuckman in his 'Teamwork Theory'. By combining the marketing and also advertising division's job, there may be the same preliminary separate which can lead to the second phase of 'storming' where the groups test one another.

When people are provided with change, they get in stage one and so there may be feelings like unhappiness, unpredictability, disappointment, rage, worry, denial and also disorientation.The circumstance at the advertising department of Student Educational Loan Fund Inc is similar so Lewis can get comfortable with the concept that it is not amazing habits. It is during this stage that Lewis will have to provide assistance to the division so that they can discover a sense of instructions. It can be seen just how Krasnow has already made this shift less complicated by making Lewis get included in the division a year before his real separation.
Vrio Analysis
Maslow's Demand power structure: The OB concern pertaining to instability at the office has been caused to start with by the modification in management as well as second of all by the truth that the merger will certainly no longer be started. Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has reviews the significance of 'protection needs as being a reduced degree need of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the demand to feel protected as well as untouched' is at the 2nd level of demands. Before an employee can be made to develop psychologically, he requires to have his 'Physical 'as well as 'Safety' requires fulfilled. This shows that unless the personnel are made to really feel secure regarding their current employment standing in Student Educational Loan Fund Inc they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Student Educational Loan Fund Inc Case Study

Ramification of Analysis.

The OB analysis has actually looked at different concepts to comprehend how to deal with the existing circumstance handy. The complying with 3 alternatives have been suggested to assist Lewis deal with the organizational challenges in the marketing division. Each of these alternatives has been suggested for easing the transition required to bring the advertising division according to the needs of the marketplace and also for making the cultural modification that would adhere to when the present leader leaves.

Integration of advertising and marketing functions. Separating Adverting and Manufacturing functions. Integration of Advertising with Procedures.

Examination of Alternatives.

Combination of Advertising And Marketing & Marketing Functions: The in-house marketing agency of Student Educational Loan Fund Inc is already strength for the organization in terms of conserving up on expenses associated with marketing and also promo. Because no new recruitment has actually been done after Bridget Cole's separation with the coverage line being directly appointed to Krasnow for the advertising and marketing feature, this is a desirable opportunity for integrating the marketing and advertising features. Judith Shapiro that has earlier been talked to by Lewis during the earlier merging days has experience in business-to-business advertising along with company and also retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both marketing and advertising functions.

The benefit of this approach is that it will integrate both features while decreasing the need for employing an additional resource for marketing. Lewis would be heading the advertising division and also in any case her substitute would be required for the present duty that she is executing. The drawback of this option is that exterior hiring might bring about animosity from interior personnel that may be looking at the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting as well as Production: Provided the competitive pressures and also high top quality job needed from the advertising and marketing firm, it is advised that Lewis should permit the manufacturing unit to be a separate feature from the advertising and marketing unit. Since the majority of marketing firms had these two functions as separate devices, it makes even more feeling to adhere to the standard.

Combination of Marketing with Workflows: Given that Lewis is already looking after the advertising and marketing and procedures divisions at the same time; it makes good sense to integrate the two features because she has actually been efficiently taking care of both ends. The truth that the two departments currently have significant distinctions over allotment of sources recommends that this assimilation might be able to cause consistency especially as Lewis would be heading both ends.However there are various disadvantages of this action particularly as it would certainly place too much worry over Lewis's shoulders. The truth that Lewis has to adjust her monitoring design for the advertising and marketing division suggests that these 2 divisions would certainly be culturally diverse. Lewis might not be able to use one kind of leadership design to both departments which could result in inadequacy in either one of the 2 functions.


An assessment of the three choices indicates that combination of advertising as well as operations would not be a practical move due to the large differences between the two divisions despite the fact that presently Lewis is handling both. While separation of the production feature might have been a positive move for the marketing department, the truth that it would indicate positioning a third feature under Lewis's wing suggests this must be stayed clear of.

Action Strategy.
Lewis will take over the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Production feature will certainly continue to be part of advertising and marketing under advertising function.

Lewis will divide herself from operations.

A democratic leadership design with staff member empowerment will certainly be made use of in advertising and marketing department.

Open door policy and focus on cross department communication will certainly be focused on eliminating discord.

Backup plan.

If the integration does not work out as prepared, a backup strategy would certainly comply with which would separate the manufacturing feature from the advertising and marketing feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the advertising division without an SVP. Because case the manufacturing feature will definitely be divided by positioning it under an SVP production.