Menu

The Decision Case Study Help

CASE SOLUTION

Home >> Harvard >> The Decision >>

The Decision Case Study Analysis

Background and Facts

The Decision a workplace products seller for small as well as average sized organisations has just recently been involved in planning for a merging with its competitor Residence Deport, which has influenced effectiveness levels in departmentswith the senior supervisor involved in legal difficulties presented by the government Trade Payment. With the Marketing Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the near future. With obstacles in the kind of a potential social modification and reduced staff member morale, the organization requires a total reengineering initiative at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible social change at the advertising department of The Decision is boosting uncertainty in the working environment resulting in various challenges for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting calculated decisions since Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Commission's treatment at the same time. Provided the reality that the shop has a global existence with branches in UK, U.S.A., Canada and Germany, political factors in each of these nations might have the ability to affect performance or tactical goals. Federal Profession Payment's antitrust fit versus the merger took up useful time of the company's senior administration recommending that 'political' factors can have major implications for a global business.

Economic Factors: Economic factors such as the development of small companies in the international situation suggest that The Decision is flourishing in a setting where there is potential growth of businesses. Truth that store consumers are primarily looking for workplace materials for house offices suggests that the market has an increasing fad of business owners as well as home based organisations.

Social factors: Social fads in the economic situation reveal that clients are looking for benefit along with eye-catching rates. Market research demonstrates how the client for The Decision does not have understanding regarding finding remedies which can use a mix of convenience and inexpensive.

Technological factors: Innovation plays an important duty in The Decision's business technique particularly as the company is piloting Innovation facilities which would certainly supply technology sales and also assistance in the form of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues and Effects.

Several underlying Business Behavior problems can be seen in The Decision's case as highlighted in this section.

Uneasiness regarding cultural modification: There is apprehension about a cultural modification that would occur when Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising with most of the personnel already revealing discontent over this potential move. This expected change has actually developed stress in the office which has been combined with the past stress and anxiety of preparing the company for a prospective merger with Home Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is lack of employees that can match the difficult atmosphere of a busy organization. Not just does this result in trouble in discovering the best individuals, it places stress on new hires as can not withstand the pace as well as pressure that the company anticipates them to bear.

Dual Coverage Lines: Novices find this business culture troublesome and also difficult to manage especially as dotted line partnerships are suggested to be weak in general and also unbiased setup and efficiency analysis is still done by the solid line manager. This suggests that novices can lose clarity about their corresponding roles as well as objectives especially as populated line coverage does not keep them in direct interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been speculated that the latter would take Krasnow's placement came as an impact to her morale. Lewis may have been qualified and proper for the job however the truth that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Worry & Work Instability: Concern and also instability can be identified as 2 major issues that Lewis would certainly be managing specifically as the merging has actually now be terminated as well as two elderly executives of the advertising department would be leaving. The whole responsibility of the department would be dropping on Lewis's shoulders that would not just be in charge of brining concerning a cultural adjustment but would certainly likewise need to verify herself in her brand-new function.

Inappropriate Monitoring Style of Leader: Lewis's management style and its conflict with the advertising division's function can additionally be seen as an OB difficulty especially as she has been used to taking care of problems in the procedures division where personnel are instructed to focus on procedures as well as get them right. The advertising and marketing division on the various other hand can be viewed as a team of individuals that are utilized to being nurtured by Krasnow who concentrated more on output than procedures.

Interdepartmental Differences: Interdepartmental arguments between 3 divisions, advertising and marketing, merchandizing and also operations specifically over the appropriation of the advertising and marketing mix can be identified as one more OB concern. Although the advertising and marketing department does not share the very same vision as the other two divisions pertaining to the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and operations divisions do not concur over the advertising mix allotment among each other either.

Fragmentation in Marketing Department: Disintegration in between the advertising and marketing divisions can be recognized as one more OB concern which might require further attention. The reality that the marketing and advertising areas in the advertising department are detached is avoiding both departments from obtaining from each various other's experience as well as proficiency. Assimilation of advertising with merchandising and procedures would become harder if the advertising and marketing division itself is broken down which can be an additional possible OB issue.

The Decision Analysis

Numerous theories have been utilized to explain the conditions to obtain further clarity regarding the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers believe that subordinates are easy as well as careless, have little aspiration and resist modification. The scenario at The Decision is not completely complying with Theory X, it can be seen that new hires are finding this atmosphere rather demanding which might at some point lead to a greater inclination of the monitoring towards Theory X. Also while examining Lewis's monitoring design, concept X may have been ideal in the operations division to some extent yet the Advertising department would certainly require dependence on Concept Y in order to get the imagination and also originality from the teams.

Tuckman's Teamwork Concept: As much as Lewis's problem about bringing harmony between the advertising and advertising division is concerned, this would initially lead to conflict as talked about by Bruce Tuckman in his 'Team effort Concept'. By integrating the marketing as well as marketing division's work, there may be the very same preliminary detach which can lead to the 2nd stage of 'storming' where the groups challenge one an additional.

Bridges' Transition Design: As per William Bridge's theory (appendix 4), people are quite uneasy with modification, which is apparent by the scenario at The Decision The situation can be viewed as a normal training course of life if is researched as per Bridge's concept where he discusses that individuals experience 3 phases of transition when they experience change. 'Ending, losing as well as Releasing', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When individuals exist with change, they go into phase one therefore there might be emotions like unhappiness, uncertainty, frustration, temper, fear, denial and disorientation.The situation at the advertising and marketing department of The Decision is similar so Lewis can get comfortable with the idea that it is not extraordinary habits. In the second phase, there might be a requirement to link the space in between the new as well as old culture so Lewis might have to encounter this experience as soon as Krasnow leaves. There might be low morale as well as low performance at this stage which need to not be taken as a setback. It is during this stage that Lewis will certainly need to provide support to the division so that they can discover an orientation. It can be seen how Krasnow has currently made this transition less complicated by making Lewis get associated with the department a year before his real separation. Based on Bridges' Version, phase three will certainly produce visibility to learning, High energy and commitment as individuals will certainly accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has talks about the value of 'protection requires as being a lower degree demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and secure and also out of threat' is at the 2nd degree of demands. Prior to an employee can be made to create psychologically, he needs to have his 'Physical 'as well as 'Safety and security' needs fulfilled.

SWOT Analysis for The Decision Case Study



Effects of Analysis.

The OB analysis has actually taken a look at different theories to understand how to manage the current circumstance available. The adhering to three options have been suggested to aid Lewis deal with the organizational obstacles in the advertising and marketing division. Each of these alternatives has actually been suggested for reducing the transition required to bring the advertising and marketing division in line with the requirements of the market as well as for making the cultural adjustment that would follow as soon as the current leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and Production functions. Integration of Advertising with Workflow.

Analysis of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merging days has expertise in business-to-business marketing along with agency and also retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to take care of both advertising and advertising and marketing features.

The advantage of this approach is that it will certainly incorporate both functions while decreasing the demand for hiring an additional source for advertising and marketing. In addition to this, Lewis would certainly be heading the marketing division as well as in any case her replacement would be needed for the current function that she is executing. The disadvantage of this choice is that exterior hiring may produce bitterness from inner employees who might be looking at the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Production: Offered the competitive stress and also premium quality job called for from the ad agency, it is suggested that Lewis should permit the production unit to be a separate feature from the advertising system. Given that most advertising agencies had these two features as separate systems, it makes more sense to comply with the standard. In addition to this, both functions may have the ability to concentrate on their core turns on more successfully. The downside of this strategy would certainly be that extra expenses would certainly have to be birthed for establishing up different manufacturing functions. A manufacturing head may have to be hired which could boost expenses for the company.

Assimilation of Advertising with Operations: Given that Lewis is currently taking treatment of the marketing and also procedures divisions simultaneously; it makes feeling to integrate the 2 features since she has actually been efficiently taking care of both ends. The reality that Lewis has to adapt her management style for the advertising division suggests that these 2 departments would certainly be culturally diverse.

Suggestion.



An examination of the three alternatives shows that combination of marketing and procedures would not be a possible action as a result of the large distinctions in between both divisions despite the fact that presently Lewis is taking care of both. While splitting up of the manufacturing function might have been a favorable action for the marketing department, the truth that it would certainly suggest positioning a third function under Lewis's wing suggests this must be avoided too. The combination of the advertising and marketing division is the very best alternative in terms of getting the optimum results from the department. An activity prepare for this choice is gone over below.

Activity Plan.
Recommendation
Lewis will certainly take over the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be combined.

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

Production feature will remain component of advertising under advertising feature.

Lewis will certainly separate herself from operations.

A democratic management style with worker empowerment will be made use of in advertising and marketing department.

Open door policy as well as focus on cross departmental communication will certainly be aimed at getting rid of discord.

Backup strategy.

If the assimilation does not work out as intended, a contingency plan would certainly comply with which would separate the production feature from the advertising function to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising division without an SVP. Because case the production function will absolutely be divided by placing it under an SVP manufacturing.