The Decline Of The Dollar 1978 Case Study Analysis


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Background and Facts

The Decline Of The Dollar 1978 an office materials seller for little and moderate sized organisations has lately been involved in preparing for a merging with its competitor House Deport, which has influenced effectiveness degrees in departmentswith the senior manager involved in legal complications put forth by the federal Profession Compensation. With the Advertising Head advancing the information of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has been asked to take the duty in the near future. With difficulties in the type of a potential social adjustment as well as low employee morale, the company requires a complete reengineering initiative at the marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The potential social modification at the advertising department of The Decline Of The Dollar 1978 is enhancing uncertainty in the workplace causing various challenges 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 significant role in impacting strategic choices considering that Stapes Inc. had to desert its plans of combining with Office Deport after the Federal Trade Commission's treatment in the process. Provided the reality that the store has a global visibility with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries might have the ability to influence efficiency or tactical objectives. Federal Trade Compensation's antitrust fit against the merging used up important time of the organization's elderly monitoring recommending that 'political' factors can have severe implications for an international organisation.

Economic Factors: Financial factors such as the emergence of small businesses in the worldwide scenario recommend that The Decline Of The Dollar 1978 is growing in a setting where there is potential growth of businesses. Truth that shop clients are mostly looking for office products for house workplaces recommends that the market has a rising pattern of business owners and residence based organisations.

Social factors: Social trends in the economy reveal that consumers are trying to find benefit as well as attractive prices. Market research shows how the client for The Decline Of The Dollar 1978 lacks understanding regarding finding remedies which can provide a mix of convenience as well as low costs.

Technical factors: Innovation plays an important role in The Decline Of The Dollar 1978's organisation approach specifically as the organization is piloting Modern technology facilities which would certainly supply innovation sales as well as support in the type of memory upgrades, outer setups. (Summary of BUG in appendix 2).

OB Issues and also Manifestations.

A number of underlying Organizational Habits problems can be seen in The Decline Of The Dollar 1978's case as highlighted in this area.

Concerns regarding social change: There is apprehension regarding a social change that would take place when Todd Krasnow leaves from his position as the Executive Vice President of Advertising with the majority of the staff members currently showing unhappiness over this prospective action. This anticipated change has created anxiety in the work environment which has actually been combined with the previous tension of preparing the company for a potential merging with Residence Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is shortage of employees that can match the difficult environment of a fast-paced organization. Not just does this result in difficulty in finding the right people, it puts stress and anxiety on brand-new hires as can not withstand the pace and also pressure that the company expects them to bear.

Twin Reporting Lines: Beginners locate this business culture difficult and also difficult to cope with specifically as populated line relationships are implied to be weaker generally as well as unbiased setup and performance assessment is still done by the strong line manager. This means that newbies could shed quality regarding their particular roles and also objectives especially as populated line reporting does not maintain them in straight interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles even though it had been speculated that the latter would take Krasnow's setting came as an impact to her spirits. Lewis might have been capable as well as ideal for the job however the fact that Kransnow's separation would make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Fear & Work Insecurity: Worry and also insecurity can be recognized as 2 major issues that Lewis would certainly be managing particularly as the merger has now be terminated as well as 2 elderly execs of the marketing division would certainly 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 however would certainly additionally have to verify herself in her new function.

Inappropriate Monitoring Style of Leader: Lewis's management style and also its incompatibility with the advertising and marketing department's duty can likewise be seen as an OB difficulty particularly as she has actually been used to taking care of problems in the procedures division where personnel are educated to focus on processes as well as get them. The advertising and marketing department on the various other hand can be seen as a group of individuals that are used to being nurtured by Krasnow who concentrated more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental arguments in between 3 divisions, advertising and marketing, merchandizing as well as operations respectively over the allocation of the advertising mix can be recognized as an additional OB concern. Although the advertising and marketing division does not share the very same vision as the various other two divisions concerning the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing as well as operations departments do not concur over the advertising mix allotment among one another either.

Disintegration in Advertising Division: Fragmentation between the advertising and marketing divisions can be recognized as one more OB problem which can require more attention. The reality that the advertising and marketing sections in the advertising division are separated is avoiding both divisions from getting from each other's experience as well as experience. Integration of marketing with retailing as well as procedures would certainly become harder if the advertising department itself is degenerated which can be one more possible OB problem.

The Decline Of The Dollar 1978 Analysis

Various concepts have actually been used to discuss the circumstances to get more clearness regarding the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors think that juniors are easy and also lazy, have little aspiration and withstand change. The difficult version of this concept emphasized browbeating, tight controls, dangers and also penalties. With time it produces reduced performance, subtle sabotage and competition (Deal, 2003). The scenario at The Decline Of The Dollar 1978 is not completely complying with Concept X, it can be seen that new hires are finding this atmosphere rather demanding which may eventually lead to a greater inclination of the monitoring towards Concept X. Based on McGregor's advocated view, which he called Theory Y, the essential job of the management is to set up business conditions to make sure that individuals can attain their very own goals best by routing their efforts in the direction of business incentives. If individuals locate no complete satisfaction in their job, the monitoring would have little selection yet to rely upon concept X and also outside control (Offer, 2003). Even while examining Lewis's administration style, theory X might have appropriated in the operations division to some extent however the Marketing division would certainly require reliance on Concept Y in order to get the creative thinking and also creativity from the teams.

Tuckman's Team effort Concept: As for Lewis's issue concerning bringing consistency between the advertising and marketing department is concerned, this would originally lead to contrast as discussed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's theory shown in appendix 3, during the initial phase of group development, people might not bond, as they are active discovering their place in the group. By integrating the advertising and marketing department's work, there might coincide preliminary disconnect which can result in the 2nd stage of 'storming' where the groups challenge each other. Nonetheless, it is just throughout the 3rd phase or 'norming' when they would certainly collaborate to share suggestions before the group can produce synergy in the 4th stage 'performing'.

When individuals are provided with adjustment, they get in phase one and also so there might be feelings like sadness, uncertainty, frustration, anger, anxiety, denial and disorientation.The scenario at the advertising and marketing division of The Decline Of The Dollar 1978 is similar so Lewis can obtain comfy with the idea that it is not remarkable behavior. It is throughout this stage that Lewis will certainly have to provide assistance to the division so that they can discover a feeling of instructions. It can be seen how Krasnow has actually already made this transition less complicated by making Lewis obtain involved in the division a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has goes over the value of 'safety and security needs as being a reduced degree demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel safe and secure and also out of danger' is at the 2nd level of needs. Before a staff member can be made to develop emotionally, he needs to have his 'Physical 'and 'Security' requires fulfilled.

SWOT Analysis for The Decline Of The Dollar 1978 Case Study

Implication of Analysis.

The OB analysis has actually checked out different theories to recognize exactly how to cope with the existing circumstance at hand. The following 3 alternatives have been suggested to help Lewis deal with the business challenges in the advertising department. Each of these choices has been suggested for relieving the change required to bring the advertising and marketing division in accordance with the demands of the market and for making the social change that would follow once the present leader leaves.

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

Evaluation of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis during the earlier merging days has experience in business-to-business advertising along with agency and also retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to deal with both advertising and also advertising features.

The advantage of this strategy is that it will certainly integrate the two features while reducing the requirement for employing an additional resource for advertising and marketing. Lewis would certainly be heading the advertising and marketing department and also in any case her replacement would certainly be required for the current duty that she is performing. The downside of this option is that outside hiring may produce resentment from interior personnel that may be looking at the placement of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Manufacturing: Provided the affordable stress as well as high quality job needed from the advertising and marketing company, it is recommended that Lewis ought to permit the production device to be a different function from the advertising and marketing device. Since many advertising and marketing companies had these 2 features as separate devices, it makes even more sense to follow the norm.

Assimilation of Advertising with Workflows: Because Lewis is already taking treatment of the marketing as well as procedures departments all at once; it makes feeling to integrate the two features because she has been efficiently taking care of both ends. The fact that Lewis has to adapt her management style for the advertising and marketing department recommends that these 2 divisions would be culturally varied.


An analysis of the three choices shows that assimilation of advertising and marketing as well as operations would certainly not be a feasible move due to the substantial distinctions between the 2 departments despite the truth that presently Lewis is taking care of both. While splitting up of the manufacturing feature may have been a favorable action for the marketing division, the reality that it would imply positioning a third feature under Lewis's wing indicates this must be stayed clear of.

Action Strategy.
Lewis will take over the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

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

Manufacturing function will remain part of marketing under advertising and marketing function.

Lewis will separate herself from operations.

An autonomous management style with staff member empowerment will be used in advertising and marketing division.

Open door policy and also emphasis on cross department communication will be aimed at eliminating disharmony.

Backup plan.

If the combination does not work out as planned, a contingency strategy would certainly adhere to which would divide the production function from the advertising feature to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising department without an SVP. Because case the manufacturing feature will definitely be divided by putting it under an SVP manufacturing.