University Of Virginia Investment Management Company Uvimco 2007 Case Study Solution


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University Of Virginia Investment Management Company Uvimco 2007 Case Study Analysis

Background and Facts

University Of Virginia Investment Management Company Uvimco 2007 an office materials store for tiny and also medium sized organisations has actually lately been associated with preparing for a merger with its rival Home Deport, which has actually impacted efficiency levels in departmentswith the senior manager associated with legal complications presented by the government Profession Compensation. 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 actually been asked to take the function in the near future. With obstacles in the form of a potential social adjustment and also reduced staff member spirits, the company needs a complete reengineering initiative at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The potential social adjustment at the advertising department of University Of Virginia Investment Management Company Uvimco 2007 is boosting uncertainty in the working environment leading to numerous obstacles for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting tactical choices considering that Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Profession Compensation's treatment in the process. Provided the fact that the shop has an international existence with branches in UK, U.S.A., Canada and Germany, political consider each of these nations might have the ability to affect performance or critical objectives. Federal Profession Compensation's antitrust match against the merger took up useful time of the company's senior monitoring suggesting that 'political' factors can have severe implications for an international organisation.

Economic Factors: Economic factors such as the development of small businesses in the worldwide circumstance suggest that University Of Virginia Investment Management Company Uvimco 2007 is prospering in a setting where there is potential development of services. Reality that shop customers are mostly looking for workplace supplies for home offices recommends that the market has a rising trend of business owners and residence based services.

Social factors: Social fads in the economy show that customers are searching for ease in addition to eye-catching prices. Marketing research demonstrates how the client for University Of Virginia Investment Management Company Uvimco 2007 does not have understanding about finding services which can use a combination of comfort and also affordable.

Technical factors: Innovation plays an important role in University Of Virginia Investment Management Company Uvimco 2007's organisation approach especially as the company is piloting Technology centers which would certainly offer innovation sales as well as assistance in the type of memory upgrades, peripheral installations. (Summary of INSECT in appendix 2).

OB Issues and Manifestations.

Several underlying Organizational Actions problems can be seen in University Of Virginia Investment Management Company Uvimco 2007's case as highlighted in this area.

Concerns regarding cultural adjustment: There is worry about a social adjustment that would occur once Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising with the majority of the team member already showing unhappiness over this possible relocation. This anticipated modification has developed stress and anxiety in the work environment which has actually been coupled with the previous anxiety of preparing the firm for a potential merging with Residence Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is scarcity of employees that can match the stressful atmosphere of a fast-paced organization. Not just does this cause problem in locating the best people, it places anxiety on brand-new hires as can not withstand the speed and also stress that the company anticipates them to bear.

Double Reporting Lines: Novices locate this organizational culture troublesome and also difficult to manage specifically as populated line relationships are suggested to be weaker generally and unbiased setup as well as performance evaluation is still done by the strong line supervisor. This indicates that beginners can shed clearness about their corresponding duties as well as objectives specifically as populated line coverage does not maintain them in direct interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles although it had been speculated that the last would take Krasnow's position came as an impact to her morale. Lewis may have been capable and also ideal for the work yet the fact that Kransnow's separation would certainly make Coles a straight report to Lewis may have been the reason for Coles' resignation from solutions.

Fear & Work Instability: Fear as well as insecurity can be recognized as 2 major problems that Lewis would be taking care of especially as the merging has actually currently be terminated and two senior execs of the marketing division would be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders that would certainly not just supervise of brining about a cultural change however would likewise have to show herself in her new role.

Incompatible Management Design of Leader: Lewis's administration design and its conflict with the marketing division's role can also be viewed as an OB difficulty especially as she has been utilized to taking care of problems in the operations department where workers are educated to concentrate on processes as well as get them right. The advertising division on the various other hand can be viewed as a group of people who are utilized to being supported by Krasnow who focused more on result than procedures.

Interdepartmental Disagreements: Interdepartmental disputes in between 3 departments, advertising, merchandizing as well as procedures respectively over the allotment of the marketing mix can be recognized as an additional OB concern. Although the advertising and marketing division does not share the very same vision as the other 2 departments concerning the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and also procedures divisions do not agree over the advertising and marketing mix appropriation amongst one another either.

Disintegration in Advertising Department: Fragmentation in between the marketing and advertising divisions can be recognized as an additional OB issue which can need further attention. The truth that the marketing and advertising sections in the marketing department are detached is stopping both departments from acquiring from each other's experience as well as competence. Integration of advertising and marketing with retailing and also operations would come to be harder if the advertising department itself is disintegrated which can be one more possible OB worry.

University Of Virginia Investment Management Company Uvimco 2007 Analysis

Numerous theories have been made use of to clarify the circumstances to get more quality about the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers think that juniors are easy and lazy, have little ambition and also resist modification. The difficult variation of this theory emphasized coercion, tight controls, dangers as well as penalties. Over time it produces low efficiency, refined sabotage and competition (Bargain, 2003). The circumstance at University Of Virginia Investment Management Company Uvimco 2007 is not completely complying with Theory X, it can be seen that brand-new hires are locating this environment rather demanding which may at some point lead to a greater inclination of the management towards Concept X. Based on McGregor's supported sight, which he called Theory Y, the important task of the monitoring is to organize business problems so that people can achieve their very own objectives best by routing their initiatives in the direction of organizational incentives. If individuals discover no complete satisfaction in their job, the administration would certainly have little selection yet to depend on concept X and external control (Bargain, 2003). Also while analyzing Lewis's administration design, concept X might have appropriated in the operations department to some extent however the Advertising and marketing division would certainly call for reliance on Concept Y so as to get the creative thinking as well as creativity from the groups.

Tuckman's Teamwork Theory: Regarding Lewis's concern concerning bringing consistency between the marketing and advertising division is concerned, this would initially lead to contrast as discussed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, throughout the initial phase of group development, individuals might not bond, as they are hectic finding their place in the team. By integrating the marketing and advertising department's job, there may coincide initial separate which could cause the second stage of 'storming' where the teams test each other. Nevertheless, it is only during the 3rd phase or 'norming' when they would integrate to share ideas prior to the team can cause harmony in the fourth stage 'carrying out'.

Bridges' Change Model: Based On William Bridge's theory (appendix 4), people are rather unpleasant with change, which is apparent by the circumstance at University Of Virginia Investment Management Company Uvimco 2007 The situation can be viewed as a typical course of life if is researched based on Bridge's concept where he explains that people go through 3 stages of shift when they experience modification. 'Ending, losing and also Letting go', The Neutral Area and also 'The New Starting' (Bridges, 2004). When people exist with adjustment, they go into phase one therefore there may be emotions like unhappiness, unpredictability, stress, anger, concern, denial and disorientation.The situation at the advertising and marketing division of University Of Virginia Investment Management Company Uvimco 2007 is similar so Lewis can obtain comfortable with the concept that it is not extraordinary behavior. In the 2nd phase, there might be a requirement to bridge the gap between the brand-new and old society so Lewis may have to encounter this challenge when Krasnow leaves. There might be reduced spirits as well as reduced efficiency at this phase which need to not be taken as a trouble. It is throughout this stage that Lewis will certainly need to give advice to the division so that they can find an orientation. It can be seen exactly how Krasnow has actually currently made this change simpler by making Lewis obtain associated with the department a year prior to his actual departure. Based on Bridges' Version, phase 3 will certainly produce openness to understanding, High power and dedication as people will welcome the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Need pecking order: The OB problem related to instability at the workplace has actually been triggered to start with by the modification in monitoring and secondly by the fact that the merging will no more be launched. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has talks about the importance of 'safety and security requires as being a reduced level demand 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 and also unharmed' goes to the second degree of requirements. Prior to a staff member can be made to establish emotionally, he needs to have his 'Physical 'and 'Safety' needs met. This shows that unless the workers are made to really feel safe and secure regarding their existing work standing in University Of Virginia Investment Management Company Uvimco 2007 they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for University Of Virginia Investment Management Company Uvimco 2007 Case Study

Implication of Analysis.

The OB analysis has actually taken a look at different theories to recognize exactly how to manage the current scenario at hand. The adhering to 3 choices have been recommended to aid Lewis take care of the business difficulties in the marketing division. Each of these options has actually been recommended for reducing the change needed to bring the marketing department in accordance with the needs of the marketplace and for making the cultural adjustment that would certainly follow once the current leader leaves.

Integration of marketing and advertising functions. Separating Adverting and Production features. Assimilation of Advertising with Workflow.

Assessment of Alternatives.

Assimilation of Advertising And Marketing & Advertising And Marketing Functions: The internal advertising agency of University Of Virginia Investment Management Company Uvimco 2007 is currently toughness for the organization in regards to conserving up on overheads related to advertising and marketing as well as promo. Considering that no brand-new recruitment has actually been done after Bridget Cole's departure with the coverage line being directly designated to Krasnow for the marketing feature, this is a desirable possibility for incorporating the marketing and advertising functions. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merging days has experience in business-to-business marketing in addition to company and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both advertising and marketing features.

The benefit of this technique is that it will certainly integrate both features while decreasing the requirement for working with an extra source for advertising. Lewis would be heading the advertising department and also in any case her replacement would be needed for the current function that she is performing. The negative aspect of this option is that outside hiring may bring about animosity from inner personnel that may be eying the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting as well as Manufacturing: Offered the affordable stress and also high top quality work required from the advertising agency, it is recommended that Lewis should permit the production system to be a different feature from the advertising and marketing system. Because most advertising companies had these two functions as separate systems, it makes even more feeling to adhere to the norm.

Combination of Advertising with Workflows: Since Lewis is currently looking after the marketing and also procedures divisions concurrently; it makes good sense to incorporate both features because she has actually been efficiently dealing with both ends. The truth that both divisions currently have significant differences over allocation of sources recommends that this integration might have the ability to cause consistency specifically as Lewis would certainly be heading both ends.However there are numerous downsides of this move particularly as it would place way too much worry over Lewis's shoulders. The truth that Lewis needs to adjust her administration design for the advertising and marketing division suggests that these 2 departments would certainly be culturally varied. Lewis may not be able to use one kind of leadership design to both departments which might result in inadequacy in either one of the 2 functions.


An evaluation of the 3 choices shows that integration of advertising and operations would not be a feasible step due to the vast distinctions between both departments although that presently Lewis is managing both. While splitting up of the production function might have been a positive relocation for the marketing division, the truth that it would certainly indicate putting a third function under Lewis's wing implies this ought to be stayed clear of also. The assimilation of the marketing division is the best alternative in terms of obtaining the ideal arise from the division. An activity plan for this option is reviewed listed below.

Action Plan.
Lewis will certainly take over the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

Production feature will continue to be part of advertising and marketing under marketing function.

Lewis will certainly divide herself from procedures.

An autonomous management style with employee empowerment will be utilized in advertising and marketing division.

Open door plan as well as emphasis on cross departmental interaction will be targeted at getting rid of dissonance.

Contingency strategy.

If the integration does not work out as planned, a contingency plan would adhere to which would divide the production feature from the advertising feature to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the advertising and marketing division without an SVP. Because case the manufacturing feature will certainly be divided by positioning it under an SVP manufacturing.