The Wealthfront Generation Case Study Solution


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The Wealthfront Generation Case Study Solution

Background and Facts

The Wealthfront Generation an office materials store for tiny as well as medium sized services has recently been associated with preparing for a merger with its rival Home Deport, which has affected efficiency levels in departmentswith the senior manager associated with lawful complications put forth by the government Trade Payment. With the Marketing Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the present head of operations has been asked to take the role in the future. With obstacles in the form of a prospective cultural adjustment and also reduced staff member morale, the organization requires a full reengineering initiative at the marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The potential cultural change at the advertising division of The Wealthfront Generation is boosting unpredictability in the workplace causing numerous obstacles for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting calculated choices because Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Trade Commission's treatment while doing so. Provided the truth that the shop has a worldwide visibility with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations may have the ability to influence efficiency or critical objectives. Federal Trade Commission's antitrust suit versus the merging occupied beneficial time of the organization's senior management recommending that 'political' factors can have significant effects for a global organisation.

Economic Factors: Economic factors such as the introduction of small businesses in the international circumstance recommend that The Wealthfront Generation is prospering in an atmosphere where there is possible development of businesses. Truth that store customers are primarily looking for office products for home offices recommends that the market has a climbing trend of entrepreneurs as well as home based organisations.

Social factors: Social trends in the economy show that consumers are trying to find benefit in addition to appealing rates. Market research demonstrates how the customer for The Wealthfront Generation does not have understanding about finding options which can use a mix of ease as well as low costs.

Technical factors: Technology plays an important function in The Wealthfront Generation's service technique especially as the company is piloting Innovation facilities which would provide innovation sales and also assistance in the type of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues as well as Effects.

A number of underlying Organizational Behavior issues can be seen in The Wealthfront Generation's case as highlighted in this section.

Concerns regarding social modification: There is apprehension about a social modification that would certainly occur as soon as Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with a lot of the staff members already revealing discontent over this possible action. This predicted change has actually produced tension in the workplace which has been coupled with the previous tension of preparing the company for a prospective merging with Home Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is shortage of workers that can match the stressful environment of a fast-paced organization. Not only does this cause trouble in finding the best people, it puts tension on new hires as can not endure the rate as well as pressure that the company expects them to bear.

Dual Reporting Lines: Beginners find this organizational culture difficult and tough to cope with specifically as dotted line relationships are indicated to be weak as a whole and objective setting and performance examination is still done by the solid line manager. This means that beginners might lose clarity concerning their respective duties as well as purposes particularly as dotted line reporting does not maintain them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles although it had been hypothesized that the latter would certainly take Krasnow's setting came as a strike to her spirits. Lewis might have been qualified and ideal for the task however the fact that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the reason for Coles' resignation from solutions.

Anxiety & Task Insecurity: Concern and insecurity can be identified as 2 major concerns that Lewis would certainly be taking care of specifically as the merging has now be cancelled and 2 senior execs of the marketing department would certainly be leaving. The entire obligation of the division would certainly be falling on Lewis's shoulders who would not simply supervise of brining regarding a social change yet would certainly also have to confirm herself in her new duty.

Incompatible Management Style of Leader: Lewis's management design and also its conflict with the marketing department's role can likewise be seen as an OB difficulty especially as she has been utilized to taking care of issues in the procedures department where workers are instructed to focus on processes and obtain them. The marketing department on the other hand can be viewed as a team of people who are used to being supported by Krasnow that concentrated extra on result than procedures.

Interdepartmental Disagreements: Interdepartmental arguments between 3 departments, advertising, merchandizing as well as procedures respectively over the allotment of the advertising mix can be recognized as one more OB issue. The advertising division does not share the very same vision as the various other 2 departments concerning the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and operations divisions do not concur over the marketing mix appropriation among one an additional either.

Disintegration in Advertising And Marketing Department: Fragmentation between the marketing and advertising divisions can be recognized as an additional OB concern which could need additional attention. The fact that the advertising and marketing sections in the marketing division are disconnected is stopping both departments from gaining from each other's experience and experience. Integration of marketing with merchandising as well as procedures would end up being more difficult if the advertising and marketing department itself is degenerated which can be an additional possible OB issue.

The Wealthfront Generation Analysis

Different theories have actually been made use of to clarify the circumstances to obtain more clarity concerning the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that juniors are easy and also careless, have little ambition as well as resist change. The circumstance at The Wealthfront Generation is not totally complying with Theory X, it can be seen that new hires are discovering this setting instead stressful which may ultimately lead to a better disposition of the administration towards Theory X. Also while evaluating Lewis's administration design, theory X might have been ideal in the procedures department to some extent yet the Marketing department would certainly require reliance on Theory Y in order to get the creativity and creativity from the teams.

Tuckman's Synergy Theory: As far as Lewis's problem regarding bringing consistency in between the marketing and advertising department is concerned, this would at first lead to conflict as gone over by Bruce Tuckman in his 'Team effort Concept'. By incorporating the marketing and also advertising division's work, there may be the exact same preliminary disconnect which can lead to the 2nd stage of 'storming' where the teams test one an additional.

Bridges' Transition Design: According To William Bridge's theory (appendix 4), people are rather uneasy with change, which is evident by the situation at The Wealthfront Generation The scenario can be viewed as a typical course of life if is studied as per Bridge's theory where he clarifies that people experience 3 phases of transition when they experience change. 'Closing, losing and Releasing', The Neutral Area and 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they get in phase one and so there might be emotions like sadness, uncertainty, disappointment, temper, concern, denial and also disorientation.The scenario at the marketing department of The Wealthfront Generation is comparable so Lewis can get comfortable with the concept that it is not remarkable behavior. In the second phase, there might be a requirement to link the space between the new as well as old society so Lewis may need to encounter this experience once Krasnow leaves. There might be reduced morale as well as low efficiency at this phase which ought to not be taken as a problem. It is during this stage that Lewis will certainly need to provide support to the division to make sure that they can find an orientation. It can be seen exactly how Krasnow has currently made this transition simpler by making Lewis get involved in the department a year before his actual separation. Based on Bridges' Model, stage 3 will certainly bring about openness to knowing, High energy and commitment as individuals will certainly welcome the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB concern related to instability at the work environment has actually been activated first of all by the adjustment in monitoring and secondly by the truth that the merger will certainly no longer be started. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has discusses the significance of 'protection needs as being a lower level demand of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel safe and secure and also safe' goes to the 2nd level of demands. Prior to a staff member can be made to establish mentally, he requires to have his 'Physical 'and 'Safety' needs fulfilled. This shows that unless the employees are made to feel safe about their present employment condition in The Wealthfront Generation they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for The Wealthfront Generation Case Study

Implication of Analysis.

The OB analysis has actually taken a look at numerous theories to understand just how to deal with the present scenario handy. The following three choices have actually been proposed to aid Lewis handle the business obstacles in the marketing department. Each of these choices has been proposed for easing the change required to bring the advertising department in line with the demands of the marketplace and also for making the social modification that would adhere to once the existing leader leaves.

Combination of advertising and marketing features. Dividing Adverting and also Manufacturing features. Integration of Marketing with Procedures.

Analysis of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merging days has know-how in business-to-business advertising and marketing along with agency as well as retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both marketing as well as advertising features.

The advantage of this strategy is that it will incorporate the two functions while minimizing the requirement for hiring an additional source for marketing. Lewis would certainly be heading the advertising division as well as in any case her replacement would certainly be required for the existing role that she is doing. The negative aspect of this choice is that external hiring may cause bitterness from interior personnel that may be looking at the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and also Production: Offered the competitive pressures and high top quality work needed from the advertising and marketing firm, it is recommended that Lewis needs to enable the manufacturing unit to be a separate feature from the advertising and marketing device. Considering that many advertising and marketing agencies had these 2 features as different devices, it makes more feeling to follow the standard.

Assimilation of Marketing with Operations: Since Lewis is already dealing with the advertising and marketing and operations departments at the same time; it makes good sense to incorporate the two functions given that she has actually been efficiently looking after both ends. The fact that the two divisions already have significant differences over allowance of sources suggests that this integration might be able to bring about consistency particularly as Lewis would be heading both ends.However there are different disadvantages of this move especially as it would certainly place excessive concern over Lewis's shoulders. The truth that Lewis needs to adapt her management design for the advertising division recommends that these two departments would be culturally varied. Lewis might not be able to use one type of management design to both departments which might result in inadequacy in either one of the 2 features.


An assessment of the three choices indicates that combination of advertising and procedures would not be a viable step as a result of the substantial distinctions in between the two divisions despite the fact that presently Lewis is dealing with both. While separation of the manufacturing feature may have been a desirable move for the advertising and marketing division, the truth that it would certainly mean positioning a 3rd function under Lewis's wing implies this need to be stayed clear of. The integration of the advertising and marketing division is the very best alternative in regards to obtaining the optimal results from the division. An activity prepare for this option is talked about listed below.

Action Plan.
Lewis will take over the function of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be combined.

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

Production feature will stay component of marketing under advertising and marketing feature.

Lewis will divide herself from operations.

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

Open door plan and emphasis on cross department communication will certainly be targeted at eliminating disharmony.

Backup plan.

If the integration does not work out as intended, a backup plan would follow which would certainly separate the production feature from the advertising and marketing function to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising division without an SVP. Because case the manufacturing feature will certainly be separated by positioning it under an SVP production.