The Dime That Started A Movement The History And Development Of Credit Unions Case Study Solution


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The Dime That Started A Movement The History And Development Of Credit Unions Case Study Solution

Background and Facts

The Dime That Started A Movement The History And Development Of Credit Unions a workplace products store for tiny and moderate sized businesses has recently been involved in preparing for a merger with its competitor Residence Deport, which has affected efficiency levels in departmentswith the senior supervisor involved in lawful difficulties presented by the government Profession Compensation. With the Marketing Head advancing the news of his separation from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the duty in the near future. With challenges in the kind of a potential cultural adjustment and reduced staff member spirits, the company wants a full reengineering initiative at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible social adjustment at the advertising and marketing department of The Dime That Started A Movement The History And Development Of Credit Unions is boosting uncertainty in the working environment causing different obstacles for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing critical choices given that Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Trade Compensation's intervention at the same time. Provided the truth that the shop has a worldwide presence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations may be able to affect performance or strategic objectives. Federal Profession Payment's antitrust suit versus the merger took up beneficial time of the company's elderly administration recommending that 'political' factors can have significant effects for a global business.

Economic Factors: Financial factors such as the appearance of local business in the international situation recommend that The Dime That Started A Movement The History And Development Of Credit Unions is thriving in a setting where there is prospective development of businesses. Fact that store consumers are mainly looking for office products for house offices suggests that the market has a rising pattern of entrepreneurs as well as home based organisations.

Social factors: Social trends in the economic situation reveal that consumers are seeking convenience as well as attractive prices. Marketing research demonstrates how the customer for The Dime That Started A Movement The History And Development Of Credit Unions does not have recognition concerning finding options which can supply a combination of comfort and affordable.

Technological factors: Technology plays a crucial duty in The Dime That Started A Movement The History And Development Of Credit Unions's company method specifically as the organization is piloting Technology facilities which would certainly offer innovation sales and assistance in the type of memory upgrades, peripheral installations. (Summary of PEST in appendix 2).

OB Issues as well as Symptoms.

Numerous underlying Organizational Behavior problems can be seen in The Dime That Started A Movement The History And Development Of Credit Unions's case as highlighted in this section.

Uneasiness concerning cultural modification: There is apprehension about a cultural change that would certainly take place when Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with most of the staff members already revealing unhappiness over this possible action. This predicted modification has developed tension in the work environment which has actually been coupled with the past tension of preparing the firm for a potential merger with House Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is shortage of personnel that can match the demanding atmosphere of a fast-paced company. Not just does this bring about trouble in discovering the best individuals, it puts anxiety on new hires as can not endure the speed and stress that the company expects them to bear.

Dual Reporting Lines: Novices discover this organizational culture difficult and also tough to manage specifically as dotted line relationships are suggested to be weak in general and also unbiased setup and efficiency evaluation is still done by the solid line supervisor. This indicates that newbies might shed clearness about their particular functions and also goals especially as populated line reporting does not keep them in direct communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had been guessed that the latter would take Krasnow's setting came as an impact to her morale. Lewis may have been capable as well as suitable for the job yet the fact that Kransnow's departure would make Coles a straight report to Lewis may have been the factor for Coles' resignation from services.

Anxiety & Task Insecurity: Anxiety and insecurity can be identified as 2 significant worries that Lewis would certainly be handling especially as the merging has now be terminated as well as 2 elderly executives of the advertising division would certainly be leaving. The entire duty of the division would be falling on Lewis's shoulders that would certainly not just be in charge of brining about a social adjustment however would certainly also need to confirm herself in her new function.

Incompatible Management Style of Leader: Lewis's administration style as well as its conflict with the marketing department's role can likewise be seen as an OB difficulty particularly as she has been used to taking care of issues in the operations department where personnel are educated to focus on processes and also obtain them. The marketing division on the various other hand can be viewed as a team of people who are utilized to being supported by Krasnow who concentrated extra on result than processes.

Interdepartmental Disputes: Interdepartmental disagreements between 3 divisions, advertising and marketing, merchandizing and operations specifically over the appropriation of the marketing mix can be identified as an additional OB issue. The advertising and marketing division does not share the exact same vision as the other 2 departments pertaining to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing as well as operations divisions do not agree over the marketing mix appropriation among one an additional either.

Fragmentation in Advertising Division: Disintegration between the advertising and marketing departments can be determined as an additional OB concern which could need further focus. The reality that the advertising and marketing sections in the advertising and marketing department are separated is protecting against both departments from getting from each various other's experience and expertise. Combination of advertising and marketing with merchandising and also procedures would become more difficult if the advertising department itself is disintegrated which can be one more potential OB issue.

The Dime That Started A Movement The History And Development Of Credit Unions Analysis

Various concepts have actually been made use of to clarify the conditions to get more quality concerning the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers believe that juniors are passive and also careless, have little aspiration and also withstand modification. The tough version of this theory stressed threat, limited controls, hazards as well as penalties. In time it produces reduced productivity, subtle sabotage and rivalry (Deal, 2003). The situation at The Dime That Started A Movement The History And Development Of Credit Unions is not completely complying with Concept X, it can be seen that brand-new hires are finding this atmosphere instead demanding which might ultimately lead to a higher inclination of the administration towards Theory X. According to McGregor's promoted view, which he called Theory Y, the necessary job of the monitoring is to arrange business conditions so that people can accomplish their very own objectives best by guiding their efforts towards organizational incentives. If individuals locate no satisfaction in their job, the monitoring would certainly have little selection yet to rely on concept X and exterior control (Offer, 2003). Even while analyzing Lewis's monitoring style, theory X may have been suitable in the operations division to some extent however the Advertising and marketing department would require reliance on Concept Y in order to get the creativity as well as creativity from the teams.

Tuckman's Team effort Theory: As much as Lewis's worry regarding bringing consistency between the advertising and marketing and advertising department is worried, this would initially lead to clash as reviewed by Bruce Tuckman in his 'Synergy Theory'. By integrating the marketing and also advertising and marketing department's work, there may be the exact same preliminary disconnect which could lead to the 2nd stage of 'storming' where the groups test one an additional.

When individuals are offered with modification, they go into stage one and also so there might be emotions like sadness, unpredictability, stress, temper, anxiety, rejection and disorientation.The scenario at the marketing department of The Dime That Started A Movement The History And Development Of Credit Unions is comparable so Lewis can get comfy with the suggestion that it is not phenomenal habits. It is during this stage that Lewis will certainly have to give guidance to the department so that they can discover a feeling of direction. It can be seen just how Krasnow has actually currently made this transition much easier by making Lewis get included in the department a year before his real separation.
Vrio Analysis
Maslow's Need hierarchy: The OB problem related to insecurity at the workplace has actually been set off firstly by the change in management and secondly by the fact that the merger will no longer be initiated. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has talks about the importance of 'safety requires as being a lower degree requirement of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to really feel secure as well as safe' goes to the second degree of requirements. Before a worker can be made to establish psychologically, he requires to have his 'Physiological 'as well as 'Safety and security' requires satisfied. This indicates that unless the employees are made to feel safe and secure regarding their present employment status in The Dime That Started A Movement The History And Development Of Credit Unions they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for The Dime That Started A Movement The History And Development Of Credit Unions Case Study

Ramification of Analysis.

The OB analysis has considered various concepts to comprehend exactly how to cope with the present circumstance available. The complying with 3 choices have been suggested to aid Lewis handle the business obstacles in the advertising division. Each of these options has actually been proposed for relieving the change required to bring the marketing division in line with the requirements of the marketplace and also for making the social adjustment that would comply with when the existing leader leaves.

Integration of marketing and advertising features. Separating Adverting and Production features. Combination of Advertising with Procedures.

Evaluation of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merging days has experience in business-to-business marketing along with firm as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to handle both advertising and marketing and also advertising and marketing functions.

The benefit of this approach is that it will certainly incorporate the two features while decreasing the need for hiring an additional source for advertising and marketing. Lewis would be heading the marketing department and in any type of case her replacement would be needed for the present function that she is doing. The disadvantage of this choice is that outside hiring may bring about animosity from internal workers that may be considering the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Manufacturing: Offered the affordable stress and high quality job called for from the advertising agency, it is advised that Lewis needs to enable the production device to be a different feature from the advertising and marketing unit. Because many ad agency had these 2 functions as different systems, it makes even more sense to comply with the norm. Both features might be able to focus on their core activates more effectively. The downside of this method would certainly be that additional expenses would certainly have to be birthed for setting up different production features. In addition to this, a manufacturing head may need to be worked with which could raise expenses for the company.

Integration of Advertising And Marketing with Workflows: Given that Lewis is currently taking treatment of the marketing and also procedures departments simultaneously; it makes feeling to integrate the 2 features because she has been effectively taking care of both ends. The reality that Lewis has to adapt her monitoring design for the advertising division suggests that these two departments would be culturally diverse.


An examination of the 3 options shows that combination of marketing and operations would certainly not be a practical step because of the vast distinctions between both divisions despite the fact that presently Lewis is handling both. While splitting up of the manufacturing function might have been a favorable relocation for the advertising and marketing department, the reality that it would suggest positioning a third feature under Lewis's wing means this should be stayed clear of. The integration of the advertising and marketing division is the most effective choice in terms of obtaining the optimum results from the division. An action plan for this option is gone over below.

Activity Strategy.
Lewis will certainly take over the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

Judith Shapiro will certainly be hired 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 feature.

Lewis will divide herself from operations.

A democratic management design with worker empowerment will certainly be utilized in marketing division.

Open door policy and focus on cross department communication will be targeted at getting rid of disharmony.

Backup plan.

If the assimilation does not exercise as planned, a contingency strategy would certainly comply with which would certainly divide the manufacturing feature from the advertising and marketing feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the manufacturing function will certainly be separated by placing it under an SVP production.