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The Solow Model Unleashed Understanding Economic Growth Case Study Solution

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The Solow Model Unleashed Understanding Economic Growth Case Study Help

Background and Facts

The Solow Model Unleashed Understanding Economic Growth an office products seller for tiny and also medium sized services has actually recently been involved in preparing for a merger with its competitor Residence Deport, which has actually impacted efficiency levels in departmentswith the elderly supervisor associated with lawful problems put forth by the federal Trade Compensation. With the Advertising and marketing Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the duty in the future. With difficulties in the form of a possible cultural change as well as low staff member spirits, the company is in need of a complete reengineering initiative at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising and marketing division of The Solow Model Unleashed Understanding Economic Growth is increasing unpredictability in the working environment bring about various difficulties 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 major duty in influencing tactical choices given that Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Compensation's intervention at the same time. Offered the fact that the shop has an international existence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries may have the ability to affect efficiency or calculated objectives. Federal Trade Compensation's antitrust match versus the merger took up beneficial time of the company's elderly management suggesting that 'political' factors can have significant implications for an international business.

Economic Factors: Financial factors such as the development of small companies in the international circumstance recommend that The Solow Model Unleashed Understanding Economic Growth is thriving in an atmosphere where there is possible growth of services. Along with this, truth that store clients are primarily searching for workplace materials for home offices recommends that the market has a rising fad of business owners as well as home services.

Social factors: Social fads in the economic situation reveal that clients are trying to find ease in addition to appealing costs. Market research demonstrates how the client for The Solow Model Unleashed Understanding Economic Growth does not have awareness about discovering remedies which can provide a combination of comfort and also inexpensive.

Technical factors: Technology plays an important duty in The Solow Model Unleashed Understanding Economic Growth's service technique especially as the company is piloting Modern technology facilities which would supply innovation sales and support in the form of memory upgrades, outer installments. (Recap of PARASITE in appendix 2).

OB Issues as well as Effects.

A number of underlying Business Actions problems can be seen in The Solow Model Unleashed Understanding Economic Growth's case as highlighted in this area.

Worries concerning cultural change: There is concern regarding a social adjustment that would certainly happen as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with the majority of the employee already revealing discontent over this prospective action. This anticipated change has created stress and anxiety in the work environment which has actually been coupled with the previous tension of preparing the firm for a potential merging with Home Deport.
Pest Analysis
Stressful Task Setting for Newcomers: There is lack of personnel that can match the demanding environment of a fast-paced organization. Not only does this result in difficulty in discovering the best individuals, it puts stress and anxiety on new hires as can not hold up against the rate and pressure that the organization expects them to bear.

Dual Reporting Lines: Newbies locate this business culture troublesome as well as difficult to handle specifically as dotted line relationships are suggested to be weak generally and unbiased setting as well as efficiency evaluation is still done by the solid line supervisor. This implies that beginners might shed clarity about their corresponding functions and purposes especially as dotted line coverage does not maintain them in straight communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had been guessed that the latter would certainly take Krasnow's position came as an impact to her spirits. Lewis might have been capable and also appropriate for the work however the truth that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Work Insecurity: Worry as well as instability can be recognized as 2 major concerns that Lewis would be managing especially as the merger has now be cancelled as well as two elderly execs of the advertising and marketing department would be leaving. The entire duty of the department would be falling on Lewis's shoulders who would certainly not just be in charge of brining concerning a cultural adjustment yet would also need to verify herself in her new role.

Inappropriate Monitoring Style of Leader: Lewis's monitoring style and also its incompatibility with the advertising and marketing division's duty can also be seen as an OB challenge specifically as she has been utilized to taking care of issues in the procedures department where employees are educated to concentrate on procedures and get them right. The advertising division on the other hand can be seen as a group of individuals who are utilized to being nurtured by Krasnow that focused more on result than processes.

Interdepartmental Arguments: Interdepartmental arguments between 3 departments, advertising, merchandizing and also operations respectively over the appropriation of the marketing mix can be recognized as one more OB worry. Although the advertising department does not share the same vision as the other 2 divisions regarding the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and also procedures departments do not concur over the marketing mix allotment among one another either.

Disintegration in Advertising Division: Fragmentation between the marketing and advertising divisions can be identified as another OB issue which can require additional focus. The reality that the advertising and marketing areas in the advertising and marketing department are disconnected is avoiding both departments from getting from each various other's experience and also competence. Combination of marketing with retailing and operations would certainly become harder if the advertising and marketing department itself is degenerated which can be one more potential OB concern.

The Solow Model Unleashed Understanding Economic Growth Analysis

Numerous theories have been utilized to describe the circumstances to get additional clearness regarding the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers think that juniors are passive and also careless, have little ambition and also stand up to adjustment. The tough variation of this theory highlighted threat, tight controls, risks and punishments. In time it generates low efficiency, subtle sabotage as well as competition (Deal, 2003). The scenario at The Solow Model Unleashed Understanding Economic Growth is not completely complying with Concept X, it can be seen that brand-new hires are finding this atmosphere rather difficult which may eventually lead to a better disposition of the administration towards Theory X. As per McGregor's supported view, which he called Theory Y, the vital task of the monitoring is to set up business problems to ensure that people can attain their own objectives best by routing their initiatives in the direction of business benefits. If individuals discover no fulfillment in their job, the monitoring would have little option yet to rely on theory X and also external control (Deal, 2003). Even while examining Lewis's management design, concept X may have appropriated in the operations department to some extent yet the Advertising department would certainly require reliance on Theory Y to get the imagination and creativity from the groups.

Tuckman's Synergy Theory: As for Lewis's issue concerning bringing consistency between the marketing and advertising department is concerned, this would originally cause conflict as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, throughout the first stage of team growth, people might not bond, as they are active finding their place in the group. By integrating the marketing and advertising department's job, there may coincide first separate which can bring about the 2nd stage of 'storming' where the groups challenge each other. It is just during the third phase or 'norming' when they would certainly come with each other to share ideas prior to the group can bring around harmony in the fourth phase 'executing'.

Bridges' Change Model: According To William Bridge's theory (appendix 4), individuals are quite uneasy with adjustment, which is evident by the scenario at The Solow Model Unleashed Understanding Economic Growth The situation can be seen as a typical training course of life if is examined according to Bridge's theory where he describes that people undergo three phases of change when they experience adjustment. 'End, losing and also Releasing', The Neutral Zone and 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they enter stage one therefore there might be feelings like unhappiness, unpredictability, frustration, temper, worry, rejection as well as disorientation.The scenario at the advertising division of The Solow Model Unleashed Understanding Economic Growth is similar so Lewis can get comfy with the idea that it is not amazing actions. In the second phase, there may be a need to bridge the gap between the brand-new and old culture so Lewis might have to face this challenge once Krasnow leaves. There might be low spirits and reduced efficiency at this phase which should not be taken as an obstacle. It is throughout this phase that Lewis will certainly need to offer support to the department so that they can locate a sense of direction. It can be seen just how Krasnow has actually already made this transition less complicated by making Lewis get involved in the department a year before his real separation. As per Bridges' Version, phase 3 will cause openness to understanding, High energy as well as commitment as people will embrace the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has discusses the significance of 'safety requires as being a lower degree need of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and secure and out of danger' is at the second level of needs. Prior to a staff member can be made to develop psychologically, he requires to have his 'Physiological 'as well as 'Security' needs satisfied.

SWOT Analysis for The Solow Model Unleashed Understanding Economic Growth Case Study



Ramification of Analysis.

The OB analysis has considered various theories to recognize how to cope with the current scenario available. The following three choices have been proposed to assist Lewis deal with the organizational challenges in the advertising department. Each of these options has been suggested for easing the shift needed to bring the advertising department in line with the demands of the marketplace as well as for making the social change that would follow once the existing leader leaves.

Combination of advertising and marketing functions. Separating Adverting as well as Production functions. Combination of Advertising with Procedures.

Examination of Alternatives.

Assimilation of Advertising & Advertising And Marketing Functions: The internal advertising and marketing firm of The Solow Model Unleashed Understanding Economic Growth is currently strength for the organization in terms of saving up on expenses related to advertising and marketing and promo. Given that no brand-new employment has been done after Bridget Cole's separation with the reporting line being directly designated to Krasnow for the advertising and marketing feature, this is a favorable chance for integrating the marketing and advertising features. Judith Shapiro who has earlier been talked to by Lewis during the earlier merger days has expertise in business-to-business advertising and marketing together with firm as well as retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to take care of both marketing and advertising features.

The advantage of this method is that it will certainly incorporate the two functions while lowering the requirement for employing an extra source for advertising. Lewis would certainly be heading the marketing division and in any case her substitute would certainly be required for the current duty that she is doing. The disadvantage of this alternative is that exterior hiring may bring about bitterness from inner workers who may be eying the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Manufacturing: Provided the competitive stress and also premium quality work called for from the advertising agency, it is advised that Lewis needs to permit the production system to be a separate function from the advertising unit. Considering that most advertising agencies had these 2 functions as different units, it makes even more feeling to comply with the standard. Along with this, both features may have the ability to focus on their core turns on a lot more effectively. However, the negative aspect of this approach would be that added prices would need to be birthed for establishing separate production functions. Along with this, a manufacturing head may have to be worked with which could raise expenses for the company.

Combination of Advertising And Marketing with Operations: Given that Lewis is already taking care of the advertising and operations departments simultaneously; it makes sense to incorporate the 2 features given that she has actually been effectively taking treatment of both ends. The truth that Lewis has to adjust her administration design for the marketing department recommends that these two divisions would certainly be culturally diverse.

Referral.



An assessment of the three options suggests that integration of advertising and marketing as well as procedures would certainly not be a feasible relocation due to the large distinctions in between the 2 departments regardless of the reality that presently Lewis is taking care of both. While splitting up of the production feature may have been a favorable relocation for the advertising division, the truth that it would certainly suggest positioning a 3rd function under Lewis's wing means this ought to be avoided.

Action Plan.
Recommendation
Lewis will take control of the function of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would be combined.

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

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

Lewis will divide herself from procedures.

A democratic management design with employee empowerment will be made use of in advertising department.

Open up door plan and also focus on cross departmental interaction will be targeted at eliminating discord.

Backup strategy.

If the integration does not work out as prepared, a contingency plan would adhere to which would divide the production function from the marketing function to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising department without an SVP. Because case the manufacturing feature will most definitely be separated by placing it under an SVP production.