The Redevelopment Of Palazzo Tornabuoni B Case Study Solution


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The Redevelopment Of Palazzo Tornabuoni B Case Study Analysis

Background and Facts

The Redevelopment Of Palazzo Tornabuoni B a workplace materials retailer for small and moderate sized organisations has recently been associated with preparing for a merging with its competitor Home Deport, which has actually influenced effectiveness levels in departmentswith the senior supervisor involved in lawful problems put forth by the federal Trade Commission. With the Advertising Head advancing the information of his separation from the company in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the duty in the future. With challenges in the kind of a potential social adjustment and low employee spirits, the company needs a total reengineering effort at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective cultural modification at the marketing division of The Redevelopment Of Palazzo Tornabuoni B is boosting uncertainty in the working environment bring about different challenges for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing strategic choices because Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Trade Compensation's treatment at the same time. Offered the fact that the store has a worldwide presence with branches in UK, USA, Canada and Germany, political consider each of these nations may have the ability to impact efficiency or tactical goals. Federal Profession Compensation's antitrust suit against the merging used up important time of the company's senior administration recommending that 'political' factors can have serious implications for a worldwide company.

Economic Factors: Economic factors such as the introduction of small businesses in the worldwide scenario suggest that The Redevelopment Of Palazzo Tornabuoni B is growing in an environment where there is potential growth of companies. Along with this, fact that store customers are mainly looking for workplace materials for office suggests that the marketplace has a climbing pattern of business owners and also online businesses.

Social factors: Social patterns in the economic climate show that customers are seeking ease along with eye-catching prices. Marketing research demonstrates how the client for The Redevelopment Of Palazzo Tornabuoni B does not have recognition regarding locating solutions which can use a combination of convenience and low costs.

Technical factors: Modern technology plays an essential duty in The Redevelopment Of Palazzo Tornabuoni B's organisation technique particularly as the organization is piloting Technology centers which would supply innovation sales and also support in the type of memory upgrades, peripheral installations. (Summary of BUG in appendix 2).

OB Issues and Symptoms.

Several underlying Organizational Behavior concerns can be seen in The Redevelopment Of Palazzo Tornabuoni B's case as highlighted in this section.

Uneasiness concerning social change: There is apprehension about a cultural adjustment that would certainly occur once Todd Krasnow leaves from his position as the Executive Vice President of Marketing with the majority of the personnel currently revealing unhappiness over this possible relocation. This predicted modification has actually created tension in the workplace which has been paired with the past anxiety of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is lack of personnel that can match the difficult atmosphere of a fast-paced company. Not just does this lead to problem in discovering the right people, it puts tension on brand-new hires as can not stand up to the pace as well as stress that the organization anticipates them to birth.

Dual Reporting Lines: Novices discover this organizational society troublesome and also challenging to handle particularly as dotted line relationships are implied to be weak in general as well as unbiased setup and efficiency examination is still done by the solid line supervisor. This means that newbies might lose quality concerning their corresponding roles as well as objectives especially as dotted line coverage does not keep them in straight interaction with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles despite the fact that it had been guessed that the last would take Krasnow's placement came as an impact to her morale. Lewis may have been qualified and also appropriate for the work yet the reality that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Anxiety & Job Insecurity: Fear and also insecurity can be determined as 2 major concerns that Lewis would certainly be handling specifically as the merging has actually currently be terminated and two elderly executives of the marketing division would be leaving. The entire duty of the division would certainly be falling on Lewis's shoulders that would certainly not simply supervise of brining concerning a social modification however would certainly additionally have to show herself in her new duty.

Incompatible Monitoring Style of Leader: Lewis's management design and also its conflict with the advertising department's function can likewise be viewed as an OB challenge specifically as she has been made use of to dealing with concerns in the procedures department where workers are shown to concentrate on processes and also obtain them right. The marketing department on the other hand can be seen as a team of individuals that are made use of to being supported by Krasnow that concentrated a lot more on outcome than processes.

Interdepartmental Differences: Interdepartmental differences in between 3 divisions, advertising and marketing, merchandizing as well as procedures specifically over the allotment of the marketing mix can be identified as one more OB issue. Although the marketing department does not share the same vision as the various other two divisions pertaining to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and also procedures divisions do not concur over the advertising mix allotment amongst each other either.

Disintegration in Advertising And Marketing Department: Disintegration in between the marketing and advertising divisions can be recognized as one more OB problem which could require further interest. The fact that the advertising and marketing areas in the advertising and marketing department are separated is avoiding both divisions from acquiring from each other's experience as well as expertise. Combination of advertising and marketing with retailing and procedures would certainly become more difficult if the advertising and marketing department itself is broken down which can be another potential OB issue.

The Redevelopment Of Palazzo Tornabuoni B Analysis

Numerous concepts have actually been used to describe the circumstances to obtain further clarity about the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors believe that staffs are easy and also lazy, have little passion and resist change. The difficult variation of this theory highlighted coercion, limited controls, threats as well as penalties. Gradually it creates low performance, refined sabotage and rivalry (Offer, 2003). Although the situation at The Redevelopment Of Palazzo Tornabuoni B is not completely adhering to Concept X, it can be seen that brand-new hires are finding this setting instead stressful which may ultimately result in a better inclination of the administration towards Concept X. Based on McGregor's supported view, which he called Concept Y, the important task of the monitoring is to set up organizational conditions to ensure that individuals can achieve their very own objectives best by routing their efforts in the direction of organizational benefits. If individuals find no contentment in their work, the monitoring would certainly have little option but to rely upon concept X and also exterior control (Deal, 2003). Even while examining Lewis's administration design, concept X may have been suitable in the procedures division somewhat however the Advertising and marketing department would certainly need reliance on Theory Y in order to get the imagination as well as originality from the teams.

Tuckman's Synergy Concept: As much as Lewis's concern about bringing consistency between the advertising and advertising and marketing division is concerned, this would at first lead to clash as talked about by Bruce Tuckman in his 'Teamwork Theory'. By integrating the marketing as well as marketing division's job, there may be the very same initial detach which might lead to the second phase of 'storming' where the teams test one another.

Bridges' Transition Version: According To William Bridge's concept (appendix 4), individuals are rather uncomfortable with adjustment, which is apparent by the circumstance at The Redevelopment Of Palazzo Tornabuoni B The scenario can be seen as a normal program of life if is researched as per Bridge's concept where he describes that individuals experience 3 stages of transition when they experience adjustment. 'End, losing and Releasing', The Neutral Zone and 'The New Starting' (Bridges, 2004). When individuals exist with modification, they enter phase one therefore there might be feelings like sadness, uncertainty, aggravation, rage, anxiety, denial and disorientation.The scenario at the marketing department of The Redevelopment Of Palazzo Tornabuoni B is similar so Lewis can get comfy with the suggestion that it is not phenomenal behavior. In the 2nd phase, there might be a requirement to bridge the space between the brand-new as well as old society so Lewis might have to face this ordeal as soon as Krasnow leaves. There might be reduced spirits and also reduced efficiency at this stage which ought to not be taken as a problem. It is during this stage that Lewis will need to give support to the division so that they can locate a sense of direction. It can be seen how Krasnow has already made this transition easier by making Lewis get involved in the division a year before his actual departure. According to Bridges' Model, stage three will certainly bring about visibility to knowing, High power and also dedication as people will welcome the change (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB concern related to instability at the office has actually been caused firstly by the adjustment in administration as well as second of all by the fact that the merger will certainly no longer be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has goes over the value of 'security requires as being a lower degree requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and secure and untouched' is at the second level of requirements. Prior to a staff member can be made to establish emotionally, he needs to have his 'Physical 'and 'Safety' needs fulfilled. This suggests that unless the employees are made to really feel protected regarding their present work standing in The Redevelopment Of Palazzo Tornabuoni B they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for The Redevelopment Of Palazzo Tornabuoni B Case Study

Effects of Analysis.

The OB analysis has considered different concepts to comprehend just how to handle the existing scenario handy. The adhering to 3 choices have been recommended to aid Lewis take care of the business challenges in the advertising division. Each of these options has been suggested for easing the shift needed to bring the marketing division in line with the demands of the marketplace as well as for making the social change that would adhere to once the existing leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting as well as Manufacturing functions. Integration of Advertising And Marketing with Workflow.

Assessment of Alternatives.

Assimilation of Advertising And Marketing & Advertising Functions: The internal marketing firm of The Redevelopment Of Palazzo Tornabuoni B is currently stamina for the organization in terms of conserving up on overheads related to advertising and promo. Given that no brand-new employment has actually been done after Bridget Cole's departure with the coverage line being straight assigned to Krasnow for the advertising function, this is a desirable chance for incorporating the marketing and advertising functions. Judith Shapiro who has earlier been talked to by Lewis during the earlier merging days has knowledge in business-to-business advertising in addition to agency and also retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to manage both marketing and advertising features.

The advantage of this approach is that it will integrate both functions while reducing the requirement for working with an extra resource for advertising. Along with this, Lewis would be heading the advertising and marketing division and also in any case her substitute would be required for the present duty that she is executing. The negative aspect of this alternative is that external hiring may bring about bitterness from internal employees that might be looking at the position of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and Manufacturing: Given the affordable pressures and high top quality job required from the marketing firm, it is advised that Lewis ought to allow the production system to be a separate function from the advertising device. Given that many advertising and marketing companies had these two functions as separate devices, it makes more feeling to comply with the norm.

Integration of Advertising And Marketing with Operations: Since Lewis is currently looking after the advertising and also operations divisions concurrently; it makes sense to incorporate both features considering that she has been effectively caring for both ends. The truth that both divisions already have major distinctions over allocation of sources suggests that this integration may be able to produce harmony particularly as Lewis would certainly be heading both ends.However there are different downsides of this action particularly as it would certainly place too much concern over Lewis's shoulders. The reality that Lewis has to adjust her administration design for the advertising department recommends that these 2 divisions would certainly be culturally diverse. In addition to this, Lewis might not have the ability to use one sort of leadership design to both divisions which might result in inadequacy in either among both functions.


An evaluation of the 3 alternatives suggests that assimilation of advertising as well as operations would not be a possible action because of the vast distinctions between the two departments despite the fact that currently Lewis is managing both. While splitting up of the production feature may have been a positive relocation for the advertising department, the reality that it would certainly mean placing a third feature under Lewis's wing implies this must be stayed clear of. The assimilation of the advertising division is the most effective choice in regards to getting the ideal arise from the department. An action plan for this choice is reviewed listed below.

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

Advertising and Marketing features would be merged.

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

Manufacturing feature will certainly continue to be part of advertising under advertising function.

Lewis will divide herself from procedures.

A democratic leadership design with worker empowerment will certainly be utilized in advertising department.

Open door policy and emphasis on cross departmental interaction will certainly be targeted at eliminating dissonance.

Contingency strategy.

If the integration does not exercise as planned, a backup strategy would comply with which would separate the production feature from the advertising and marketing feature to lower the tons 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 function will definitely be separated by putting it under an SVP production.