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Texas High Speed Rail Corp Case Study Solution

Background and Facts

Texas High Speed Rail Corp a workplace materials seller for tiny as well as average sized companies has actually recently been involved in planning for a merger with its rival House Deport, which has affected efficiency levels in departmentswith the elderly supervisor involved in legal complications put forth by the federal Profession Commission. With the Marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the role in the near future. With difficulties in the form of a prospective social adjustment and also reduced staff member morale, the company needs a complete reengineering effort at the advertising and marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The possible social modification at the advertising and marketing department of Texas High Speed Rail Corp is raising unpredictability in the workplace resulting in various challenges for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing tactical choices because Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Profession Compensation's intervention in the process. Provided the reality that the store has a worldwide presence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these countries might be able to affect efficiency or tactical goals. Federal Trade Commission's antitrust fit versus the merging used up beneficial time of the organization's elderly management recommending that 'political' factors can have severe ramifications for a global organisation.

Economic Factors: Economic factors such as the emergence of small businesses in the global circumstance suggest that Texas High Speed Rail Corp is prospering in an environment where there is prospective growth of organisations. Reality that shop clients are mainly looking for office supplies for house offices suggests that the market has a rising fad of business owners as well as residence based companies.

Social factors: Social trends in the economic climate reveal that customers are looking for comfort in addition to eye-catching costs. Market research demonstrates how the client for Texas High Speed Rail Corp does not have recognition concerning finding remedies which can provide a mix of convenience as well as inexpensive.

Technological factors: Technology plays an important function in Texas High Speed Rail Corp's service technique specifically as the company is piloting Technology facilities which would provide technology sales as well as support in the type of memory upgrades, outer installments. (Summary of INSECT in appendix 2).

OB Issues and also Symptoms.

Several underlying Organizational Actions issues can be seen in Texas High Speed Rail Corp's case as highlighted in this area.

Apprehensions concerning cultural modification: There is worry concerning a social change that would certainly take place when Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with the majority of the team member already revealing unhappiness over this prospective move. This expected change has actually developed stress in the work environment which has been combined with the past tension of preparing the firm for a possible merger with House Deport.
Pest Analysis
Demanding Job Atmosphere for Newcomers: There is scarcity of personnel that can match the demanding atmosphere of a busy organization. Not only does this bring about trouble in finding the best individuals, it puts tension on new hires as can not hold up against the pace as well as stress that the organization expects them to bear.

Twin Reporting Lines: Newbies locate this organizational society cumbersome as well as hard to handle specifically as dotted line connections are implied to be weaker in general as well as objective setting and also efficiency analysis is still done by the solid line manager. This indicates that newcomers can shed quality concerning their respective roles and goals specifically as dotted line reporting does not maintain them in direct communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had been hypothesized that the latter would take Krasnow's placement came as a strike to her spirits. Lewis may have been qualified as well as ideal for the work but the fact that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Job Instability: Anxiety and also instability can be identified as 2 significant problems that Lewis would be taking care of specifically as the merger has currently be cancelled as well as two elderly executives of the advertising and marketing department would be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders that would not just be in charge of brining about a social change but would certainly additionally have to verify herself in her brand-new duty.

Incompatible Monitoring Style of Leader: Lewis's monitoring style and its conflict with the advertising division's function can additionally be seen as an OB obstacle especially as she has actually been utilized to managing problems in the procedures division where employees are taught to focus on procedures and also obtain them right. The advertising department on the other hand can be viewed as a team of individuals who are used to being nurtured by Krasnow that focused much more on result than procedures.

Interdepartmental Arguments: Interdepartmental differences between 3 departments, marketing, merchandizing as well as procedures specifically over the appropriation of the advertising mix can be recognized as an additional OB concern. The marketing department does not share the very same vision as the other 2 divisions pertaining to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing as well as procedures divisions do not agree over the advertising and marketing mix appropriation among one an additional either.

Fragmentation in Advertising Department: Fragmentation in between the marketing and advertising departments can be identified as one more OB problem which might need more interest. The fact that the marketing and advertising sections in the marketing division are detached is preventing both departments from obtaining from each other's experience and proficiency. Combination of advertising with retailing as well as operations would certainly become more difficult if the marketing division itself is disintegrated which can be another possible OB concern.

Texas High Speed Rail Corp Analysis

Different concepts have actually been utilized to discuss the conditions to obtain more clarity regarding the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that staffs are passive as well as careless, have little ambition and withstand modification. The hard version of this concept stressed coercion, limited controls, threats and also punishments. Over time it generates low productivity, refined sabotage and rivalry (Offer, 2003). The situation at Texas High Speed Rail Corp is not totally complying with Concept X, it can be seen that brand-new hires are discovering this setting instead stressful which may at some point lead to a greater disposition of the administration in the direction of Theory X. According to McGregor's supported view, which he called Concept Y, the vital job of the administration is to prepare business conditions to make sure that individuals can accomplish their own objectives best by guiding their initiatives towards organizational rewards. If individuals discover no complete satisfaction in their job, the management would have little option yet to rely on concept X as well as outside control (Deal, 2003). Also while analyzing Lewis's management style, concept X might have been suitable in the procedures department to some extent yet the Advertising and marketing department would require reliance on Concept Y in order to get the imagination and also originality from the groups.

Tuckman's Synergy Theory: Regarding Lewis's issue regarding bringing consistency between the advertising and marketing department is concerned, this would initially lead to conflict as discussed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's theory displayed in appendix 3, during the first phase of team development, people may not bond, as they are busy discovering their location in the group. By incorporating the marketing and advertising department's job, there might be the same first detach which could result in the 2nd stage of 'storming' where the groups challenge each other. It is just throughout the 3rd stage or 'norming' when they would come together to share suggestions before the group can bring around harmony in the 4th phase 'performing'.

When individuals are offered with change, they enter stage one and also so there might be emotions like despair, uncertainty, disappointment, anger, fear, rejection and also disorientation.The circumstance at the marketing department of Texas High Speed Rail Corp is similar so Lewis can get comfortable with the concept that it is not phenomenal behavior. It is during this phase that Lewis will have to give support to the department so that they can discover a sense of direction. It can be seen how Krasnow has currently made this shift simpler by making Lewis get included in the division a year before his actual separation.
Vrio Analysis
Maslow's Requirement pecking order: The OB issue related to insecurity at the office has actually been caused first of all by the change in administration and also second of all by the fact that the merger will no more be initiated. Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has reviews the significance of 'protection requires as being a lower level need of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to really feel secure as well as out of danger' is at the second degree of needs. Prior to a worker can be made to develop mentally, he requires to have his 'Physiological 'and 'Safety and security' needs satisfied. This shows that unless the workers are made to really feel safe and secure concerning their existing work condition in Texas High Speed Rail Corp they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Texas High Speed Rail Corp Case Study

Implication of Analysis.

The OB analysis has actually checked out various concepts to comprehend exactly how to manage the current situation available. The adhering to 3 choices have been proposed to help Lewis manage the business difficulties in the marketing division. Each of these alternatives has been suggested for relieving the change required to bring the advertising and marketing division in line with the requirements of the marketplace and for making the social adjustment that would follow as soon as the present leader leaves.

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

Examination of Alternatives.

Combination of Advertising And Marketing & Advertising Functions: The internal marketing firm of Texas High Speed Rail Corp is already toughness for the company in regards to saving up on overheads associated with advertising and marketing and also promo. Because no brand-new employment has been done after Bridget Cole's departure with the coverage line being straight assigned to Krasnow for the advertising feature, this is a desirable chance for incorporating the marketing and advertising functions. Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merger days has experience in business-to-business advertising and marketing along with agency and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to take care of both marketing and advertising features.

The benefit of this method is that it will incorporate the two features while minimizing the requirement for hiring an added source for advertising and marketing. Lewis would certainly be heading the advertising division and in any type of case her substitute would certainly be required for the current role that she is doing. The negative aspect of this alternative is that exterior hiring may produce resentment from internal workers that might be eying the setting of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Production: Given the competitive pressures as well as high quality work required from the advertising agency, it is recommended that Lewis needs to permit the manufacturing device to be a separate feature from the advertising unit. Given that a lot of advertising and marketing agencies had these 2 functions as different systems, it makes even more sense to comply with the norm.

Integration of Marketing with Procedures: Considering that Lewis is already taking treatment of the advertising and marketing and procedures divisions simultaneously; it makes sense to incorporate the two functions since she has been effectively taking treatment of both ends. The fact that Lewis has to adapt her administration design for the advertising and marketing division suggests that these two divisions would certainly be culturally diverse.


An examination of the 3 choices shows that combination of advertising as well as operations would not be a possible relocation due to the huge differences in between the two divisions regardless of the reality that presently Lewis is handling both. While separation of the manufacturing function might have been a desirable move for the advertising department, the reality that it would imply positioning a 3rd function under Lewis's wing indicates this should be prevented.

Action Strategy.
Lewis will certainly take control of the role of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be combined.

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

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

Lewis will certainly divide herself from procedures.

A democratic management style with employee empowerment will be made use of in advertising division.

Open up door plan and focus on cross department communication will certainly be aimed at removing disharmony.

Contingency strategy.

If the combination does not work out as planned, a backup plan would follow which would separate the manufacturing function from the advertising feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the marketing division without an SVP. Because case the manufacturing feature will most definitely be divided by putting it under an SVP production.