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Ur Investing The Handr Reit Decision Case Study Solution

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Ur Investing The Handr Reit Decision Case Study Analysis

Background and Facts

Ur Investing The Handr Reit Decision an office supplies seller for small as well as moderate sized organisations has actually recently been associated with preparing for a merging with its rival Home Deport, which has actually influenced efficiency levels in departmentswith the elderly manager involved in legal problems put forth by the federal Profession Compensation. With the Advertising and marketing Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has been asked to take the duty in the near future. With difficulties in the type of a possible cultural change as well as low worker morale, the company needs a total reengineering initiative at the marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The potential cultural change at the advertising and marketing department of Ur Investing The Handr Reit Decision is raising uncertainty in the workplace bring about various obstacles for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting strategic choices given that Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Trade Payment's treatment at the same time. Offered the truth that the shop has an international presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries might have the ability to affect performance or calculated goals. Federal Trade Compensation's antitrust fit against the merging occupied useful time of the organization's senior management suggesting that 'political' factors can have severe implications for a worldwide company.

Economic Factors: Economic factors such as the emergence of small businesses in the worldwide scenario suggest that Ur Investing The Handr Reit Decision is flourishing in an atmosphere where there is potential growth of organisations. In addition to this, reality that store consumers are mostly looking for office materials for home offices suggests that the marketplace has a climbing pattern of business owners and also online services.

Social factors: Social fads in the economic situation reveal that customers are looking for ease in addition to appealing costs. Marketing research demonstrates how the consumer for Ur Investing The Handr Reit Decision does not have recognition regarding locating options which can provide a combination of benefit as well as affordable.

Technical factors: Technology plays an essential function in Ur Investing The Handr Reit Decision's business approach particularly as the organization is piloting Innovation centers which would certainly use technology sales and support in the type of memory upgrades, outer installments. (Recap of PARASITE in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Organizational Habits issues can be seen in Ur Investing The Handr Reit Decision's case as highlighted in this area.

Concerns regarding cultural change: There is worry regarding a social change that would certainly happen when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with most of the personnel already showing unhappiness over this possible step. This expected modification has created stress and anxiety in the workplace which has been combined with the previous tension of preparing the company for a possible merging with Home Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is scarcity of personnel that can match the difficult atmosphere of a fast-paced organization. Not only does this lead to problem in discovering the best people, it places tension on new hires as can not stand up to the rate as well as pressure that the organization expects them to bear.

Double Reporting Lines: Novices discover this organizational society troublesome and also challenging to manage especially as dotted line partnerships are implied to be weaker as a whole as well as unbiased setting and performance evaluation is still done by the strong line manager. This means that newbies might shed clearness about their corresponding roles as well as objectives particularly as dotted line reporting does not keep them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had been hypothesized that the latter would take Krasnow's position came as a strike to her spirits. Lewis might have been qualified and also ideal for the task however the truth that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Worry & Task Insecurity: Anxiety and instability can be determined as two major problems that Lewis would certainly be taking care of particularly as the merging has now be cancelled as well as two elderly executives of the advertising department would be leaving. The whole obligation of the department would certainly be falling on Lewis's shoulders who would certainly not just supervise of brining regarding a social adjustment however would certainly also need to confirm herself in her brand-new role.

Incompatible Monitoring Design of Leader: Lewis's management style and its conflict with the marketing division's function can also be viewed as an OB obstacle specifically as she has actually been utilized to handling problems in the procedures department where personnel are shown to focus on processes and obtain them right. The advertising and marketing division on the various other hand can be seen as a team of people that are made use of to being nurtured by Krasnow who focused extra on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental arguments between three departments, advertising, merchandizing as well as procedures specifically over the allowance of the advertising mix can be recognized as an additional OB worry. The marketing division does not share the same vision as the various other 2 departments relating to the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and also procedures departments do not concur over the advertising mix appropriation among one another either.

Fragmentation in Advertising And Marketing Department: Disintegration between the marketing and advertising divisions can be determined as one more OB issue which can need additional focus. The truth that the marketing and advertising areas in the marketing division are separated is preventing both divisions from obtaining from each other's experience and also know-how. Combination of advertising and marketing with retailing and also procedures would certainly end up being harder if the advertising and marketing division itself is disintegrated which can be an additional potential OB problem.

Ur Investing The Handr Reit Decision Analysis

Different concepts have actually been utilized to explain the conditions to get additional quality concerning the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that subordinates are easy and lazy, have little passion as well as resist modification. The circumstance at Ur Investing The Handr Reit Decision is not completely following Concept X, it can be seen that new hires are discovering this environment instead difficult which might at some point lead to a higher inclination of the administration in the direction of Concept X. Even while assessing Lewis's administration style, concept X may have been suitable in the procedures division to some extent yet the Advertising and marketing department would need dependence on Theory Y in order to get the creative thinking as well as originality from the teams.

Tuckman's Team effort Concept: As much as Lewis's worry regarding bringing consistency between the advertising and marketing and also advertising and marketing division is concerned, this would at first lead to clash as reviewed by Bruce Tuckman in his 'Teamwork Theory'. By combining the advertising and marketing as well as advertising and marketing division's job, there might be the very same preliminary detach which could lead to the 2nd stage of 'storming' where the groups challenge one another.

Bridges' Change Model: Based On William Bridge's concept (appendix 4), people are fairly unpleasant with adjustment, which is noticeable by the circumstance at Ur Investing The Handr Reit Decision The situation can be viewed as a typical training course of life if is studied based on Bridge's concept where he describes that people experience 3 stages of transition when they experience change. 'Closing, losing and also Letting go', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they enter phase one therefore there might be feelings like unhappiness, uncertainty, frustration, rage, worry, denial as well as disorientation.The situation at the marketing department of Ur Investing The Handr Reit Decision is similar so Lewis can obtain comfy with the suggestion that it is not amazing behavior. In the 2nd phase, there might be a requirement to bridge the void in between the brand-new and also old culture so Lewis may have to face this ordeal once Krasnow leaves. There might be reduced morale and also low performance at this phase which ought to not be taken as a problem. It is throughout this phase that Lewis will need to provide assistance to the division to ensure that they can locate an orientation. It can be seen how Krasnow has actually currently made this change easier by making Lewis get associated with the division a year prior to his real departure. According to Bridges' Version, stage 3 will certainly bring about openness to discovering, High energy and also commitment as individuals will embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Demand hierarchy: The OB problem pertaining to insecurity at the workplace has actually been activated firstly by the modification in monitoring and also second of all by the fact that the merger will certainly no more be launched. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has talks about the significance of 'security requires as being a reduced level need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel safe and secure as well as untouched' is at the second level of demands. Prior to an employee can be made to create emotionally, he requires to have his 'Physiological 'and also 'Safety and security' needs met. This suggests that unless the personnel are made to really feel safe about their present work standing in Ur Investing The Handr Reit Decision they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Ur Investing The Handr Reit Decision Case Study



Ramification of Analysis.

The OB analysis has actually looked at various theories to recognize just how to deal with the present scenario at hand. The following 3 choices have been proposed to aid Lewis handle the organizational difficulties in the advertising and marketing department. Each of these options has actually been suggested for reducing the shift needed to bring the advertising department in line with the demands of the market as well as for making the cultural adjustment that would certainly follow when the existing leader leaves.

Combination of advertising and marketing features. Separating Adverting and also Production features. Integration of Advertising And Marketing with Operations.

Examination of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merging days has expertise in business-to-business advertising and marketing along with firm and retail marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to handle both advertising and marketing features.

The advantage of this strategy is that it will incorporate the two features while lowering the need for working with an added resource for marketing. Lewis would certainly be heading the advertising and marketing department and also in any kind of case her substitute would certainly be required for the existing duty that she is doing. The negative aspect of this alternative is that external hiring might produce resentment from inner employees who may be eying the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and also Manufacturing: Given the affordable pressures and also premium quality work called for from the ad agency, it is advised that Lewis ought to enable the production unit to be a different function from the advertising system. Given that many advertising agencies had these two features as separate units, it makes more sense to follow the standard. Along with this, both functions may have the ability to focus on their core triggers much more successfully. The drawback of this technique would certainly be that extra costs would have to be birthed for establishing up separate manufacturing functions. A production head may have to be worked with which could enhance expenses for the company.

Combination of Marketing with Operations: Since Lewis is already taking treatment of the advertising and marketing as well as operations departments concurrently; it makes sense to incorporate the 2 features given that she has actually been successfully taking care of both ends. The reality that Lewis has to adapt her management style for the advertising department suggests that these 2 departments would certainly be culturally diverse.

Suggestion.



An assessment of the three options suggests that combination of advertising and operations would not be a practical step due to the substantial distinctions in between the two departments in spite of the reality that currently Lewis is managing both. While separation of the production feature may have been a desirable move for the advertising division, the reality that it would suggest placing a 3rd feature under Lewis's wing implies this must be stayed clear of.

Action Strategy.
Recommendation
Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Manufacturing feature will certainly remain component of advertising under advertising function.

Lewis will certainly separate herself from operations.

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

Open door plan and emphasis on cross department communication will certainly be aimed at removing disharmony.

Backup strategy.

If the integration does not work out as intended, a backup plan would comply with which would certainly divide the manufacturing function from the marketing feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing department without an SVP. In that case the production function will most definitely be divided by putting it under an SVP production.