Menu

Terra Lycos Profiting From Information Products Case Study Analysis

CASE SOLUTION

Home >> Harvard >> Terra Lycos Profiting From Information Products >>

Terra Lycos Profiting From Information Products Case Study Analysis

Background and Facts

Terra Lycos Profiting From Information Products an office products seller for small and medium sized organisations has actually lately been involved in planning for a merger with its rival House Deport, which has influenced efficiency levels in departmentswith the senior manager involved in legal complications put forth by the federal Trade Compensation. With the Advertising Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the present head of procedures has been asked to take the duty in the future. With difficulties in the form of a prospective cultural change and also low staff member spirits, the organization requires a complete reengineering effort at the advertising division.

Problem Declaration

The prospective social modification at the marketing department of Terra Lycos Profiting From Information Products is increasing uncertainty in the workplace resulting in numerous difficulties for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting strategic decisions given that Stapes Inc. needed to abandon its strategies of merging with Office Deport after the Federal Profession Compensation's treatment while doing so. Offered the truth that the shop has a worldwide visibility with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these nations may be able to affect efficiency or critical objectives. Federal Profession Commission's antitrust fit against the merging took up important time of the organization's senior monitoring recommending that 'political' factors can have significant effects for a global service.

Economic Factors: Economic factors such as the appearance of small companies in the international situation suggest that Terra Lycos Profiting From Information Products is growing in a setting where there is potential development of companies. In addition to this, fact that store clients are primarily searching for office supplies for office recommends that the marketplace has an increasing trend of business owners as well as online companies.

Social factors: Social trends in the economic situation reveal that customers are looking for benefit along with appealing rates. Market research demonstrates how the consumer for Terra Lycos Profiting From Information Products lacks awareness about locating solutions which can use a combination of ease and also inexpensive.

Technological factors: Innovation plays a crucial role in Terra Lycos Profiting From Information Products's service approach particularly as the company is piloting Innovation centers which would certainly supply modern technology sales as well as support in the kind of memory upgrades, outer setups. (Summary of INSECT in appendix 2).

OB Issues and Manifestations.

A number of underlying Organizational Behavior concerns can be seen in Terra Lycos Profiting From Information Products's case as highlighted in this section.

Worries concerning cultural modification: There is apprehension regarding a social adjustment that would certainly happen as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Marketing with the majority of the personnel currently revealing unhappiness over this potential action. This expected change has created anxiety in the workplace which has actually been paired with the previous stress and anxiety of preparing the firm for a possible merging with Residence Deport.

Demanding Task Setting for Newcomers: There is scarcity of workers that can match the demanding atmosphere of a hectic organization. Not just does this bring about trouble in discovering the right individuals, it places anxiety on new hires as can not withstand the speed and stress that the company expects them to bear.

Double Coverage Lines: Newbies locate this business culture troublesome and challenging to manage specifically as populated line partnerships are indicated to be weak as a whole and objective setting and performance evaluation is still done by the solid line manager. This indicates that beginners can lose clearness concerning their respective functions and also goals particularly as populated line reporting does not maintain them in direct communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles even though it had been hypothesized that the last would certainly take Krasnow's position came as an impact to her spirits. Lewis may have been qualified and also appropriate for the job however the reality that Kransnow's departure would make Coles a straight report to Lewis may have been the reason for Coles' resignation from services.

Fear & Job Instability: Fear as well as insecurity can be recognized as two significant problems that Lewis would be managing particularly as the merger has actually currently be cancelled and also 2 elderly execs of the advertising and marketing department would be leaving. The entire duty of the division would be falling on Lewis's shoulders that would certainly not simply supervise of brining regarding a social modification but would certainly likewise have to confirm herself in her new function.

Incompatible Management Style of Leader: Lewis's administration style as well as its conflict with the advertising division's duty can likewise be viewed as an OB difficulty especially as she has actually been made use of to dealing with concerns in the operations division where workers are educated to concentrate on procedures and obtain them right. The marketing division on the other hand can be viewed as a team of individuals who are utilized to being nurtured by Krasnow who concentrated more on output than procedures.

Interdepartmental Differences: Interdepartmental arguments between 3 departments, advertising and marketing, merchandizing and also operations specifically over the allotment of the advertising and marketing mix can be recognized as another OB issue. The advertising and marketing division does not share the very same vision as the other two divisions pertaining to the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and also procedures departments do not concur over the marketing mix appropriation amongst one another either.

Disintegration in Marketing Department: Disintegration between the marketing and advertising divisions can be identified as another OB problem which could need more focus. The truth that the marketing and advertising sections in the advertising and marketing division are separated is protecting against both divisions from obtaining from each various other's experience and expertise. Assimilation of marketing with retailing and also procedures would certainly come to be harder if the marketing department itself is disintegrated which can be an additional prospective OB worry.

Terra Lycos Profiting From Information Products Analysis

Different theories have actually been used to describe the circumstances to obtain additional clarity about the circumstance at hand.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that subordinates are easy and careless, have little passion as well as stand up to adjustment. The situation at Terra Lycos Profiting From Information Products is not completely adhering to Concept X, it can be seen that brand-new hires are discovering this setting rather demanding which might ultimately lead to a better inclination of the administration in the direction of Theory X. Also while evaluating Lewis's administration design, theory X may have been ideal in the operations department to some degree yet the Marketing department would certainly need reliance on Theory Y in order to get the imagination and creativity from the groups.

Tuckman's Synergy Concept: As far as Lewis's issue concerning bringing consistency in between the advertising and marketing division is concerned, this would at first cause clash as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, throughout the first stage of team advancement, people might not bond, as they are hectic finding their location in the group. By integrating the marketing and advertising division's work, there might be the same first separate which can bring about the second stage of 'storming' where the teams challenge one another. It is just during the third stage or 'norming' when they would come with each other to share ideas before the group can bring about harmony in the fourth stage 'executing'.

When individuals are offered with adjustment, they get in phase one and also so there might be feelings like sadness, unpredictability, disappointment, temper, fear, denial as well as disorientation.The circumstance at the marketing division of Terra Lycos Profiting From Information Products is similar so Lewis can obtain comfy with the idea that it is not remarkable actions. It is throughout this stage that Lewis will certainly have to provide support to the division so that they can find a sense of instructions. It can be seen exactly how Krasnow has currently made this change simpler by making Lewis get involved in the department a year prior to his actual departure.

Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has goes over the significance of 'protection requires as being a reduced level requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel protected as well as out of danger' is at the second degree of demands. Prior to a staff member can be made to establish emotionally, he needs to have his 'Physiological 'and 'Safety' needs satisfied.

SWOT Analysis for Terra Lycos Profiting From Information Products Case Study



Effects of Analysis.

The OB analysis has actually checked out different theories to understand just how to deal with the current scenario at hand. The complying with three choices have actually been recommended to help Lewis manage the organizational challenges in the advertising department. Each of these options has been proposed for relieving the transition required to bring the advertising division in line with the demands of the market as well as for making the cultural modification that would comply with once the present leader leaves.

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

Analysis of Alternatives.

Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merger days has knowledge in business-to-business advertising and marketing along with agency and retail advertising experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to deal with both advertising and marketing and marketing functions.

The benefit of this technique is that it will certainly incorporate the two features while lowering the requirement for hiring an additional resource for marketing. Lewis would be heading the marketing department and also in any kind of case her replacement would certainly be needed for the existing function that she is executing. The negative aspect of this option is that external hiring might produce bitterness from inner workers that might be considering the placement of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and also Manufacturing: Given the competitive pressures and also high top quality job required from the advertising firm, it is suggested that Lewis must enable the production unit to be a separate feature from the marketing unit. Because many marketing firms had these two features as separate devices, it makes more feeling to adhere to the standard.

Combination of Advertising with Operations: Since Lewis is already taking treatment of the advertising and operations divisions concurrently; it makes sense to incorporate the two functions because she has actually been successfully taking care of both ends. The truth that Lewis has to adapt her monitoring style for the advertising and marketing division suggests that these two departments would certainly be culturally varied.

Referral.



An examination of the 3 choices indicates that assimilation of advertising and also operations would not be a practical relocation due to the vast distinctions in between the 2 divisions regardless of the fact that presently Lewis is taking care of both. While separation of the production feature might have been a desirable step for the advertising and marketing department, the truth that it would imply positioning a 3rd feature under Lewis's wing means this need to be avoided.

Action Strategy.

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

Advertising and Marketing features would certainly be combined.

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

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

Lewis will separate herself from procedures.

A democratic management style with worker empowerment will be utilized in advertising and marketing division.

Open up door policy as well as emphasis on cross departmental communication will be targeted at removing disharmony.

Backup strategy.

If the combination does not work out as planned, a backup strategy would comply with which would certainly separate the production feature from the advertising feature to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will certainly be heading the marketing department without an SVP. In that case the manufacturing feature will definitely be divided by placing it under an SVP manufacturing.