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Videoguide Inc A Case Study Solution

CASE ANALYSIS

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Videoguide Inc A Case Study Solution

Background and Facts

Videoguide Inc A a workplace supplies retailer for little and also moderate sized services has recently been associated with preparing for a merger with its competitor Home Deport, which has actually impacted effectiveness levels in departmentswith the elderly supervisor involved in lawful difficulties presented by the federal Trade Payment. With the Advertising and marketing Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the role in the near future. With difficulties in the kind of a potential cultural change as well as low worker spirits, the organization wants a total reengineering initiative at the advertising department.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective cultural adjustment at the marketing department of Videoguide Inc A is enhancing unpredictability in the working environment bring about numerous challenges 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 calculated choices since Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Profession Payment's treatment in the process. Provided the truth that the store has a global visibility with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations may be able to impact efficiency or calculated goals. Federal Profession Compensation's antitrust fit against the merging used up beneficial time of the company's elderly administration recommending that 'political' factors can have major effects for a global organisation.

Economic Factors: Financial factors such as the emergence of local business in the international scenario recommend that Videoguide Inc A is thriving in an environment where there is prospective growth of services. Along with this, truth that shop consumers are primarily trying to find office materials for office recommends that the marketplace has an increasing fad of entrepreneurs and also home based businesses.

Social factors: Social trends in the economic climate reveal that consumers are seeking convenience as well as eye-catching rates. Market research demonstrates how the customer for Videoguide Inc A does not have recognition about finding services which can supply a mix of convenience and affordable.

Technological factors: Modern technology plays a vital function in Videoguide Inc A's organisation approach especially as the organization is piloting Innovation facilities which would certainly supply innovation sales and also support in the form of memory upgrades, peripheral setups. (Recap of PEST in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Organizational Actions issues can be seen in Videoguide Inc A's case as highlighted in this section.

Apprehensions concerning social change: There is apprehension about a social modification that would take place once Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with a lot of the team member already showing discontent over this possible step. This expected change has developed stress in the workplace which has actually been paired with the past stress and anxiety of preparing the firm for a potential merger with Home Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is lack of workers that can match the difficult setting of a hectic company. Not only does this result in problem in discovering the ideal individuals, it puts tension on new hires as can not withstand the pace as well as stress that the company expects them to birth.

Dual Coverage Lines: Newcomers find this business society difficult as well as challenging to handle especially as populated line relationships are meant to be weak in general and unbiased setup as well as performance examination is still done by the solid line manager. This means that newcomers could lose quality concerning their particular duties and also goals particularly as dotted line reporting does not keep them in direct communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had actually been speculated that the last would take Krasnow's position came as a strike to her morale. Lewis may have been capable as well as ideal for the job yet the reality that Kransnow's separation would make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Work Insecurity: Concern as well as instability can be determined as 2 major issues that Lewis would certainly be handling specifically as the merging has now be cancelled and also 2 elderly executives of the advertising department would be leaving. The entire duty of the department would be dropping on Lewis's shoulders who would not simply supervise of brining about a cultural change however would additionally have to show herself in her new role.

Incompatible Monitoring Style of Leader: Lewis's administration style and its incompatibility with the advertising and marketing division's duty can likewise be seen as an OB obstacle specifically as she has been utilized to handling issues in the procedures division where employees are instructed to concentrate on processes as well as get them. The advertising division on the various other hand can be viewed as a group of individuals that are made use of to being supported by Krasnow who focused more on result than processes.

Interdepartmental Disputes: Interdepartmental arguments in between three departments, advertising and marketing, merchandizing and also operations respectively over the appropriation of the advertising mix can be identified as another OB issue. The advertising department does not share the exact same vision as the various other 2 divisions relating to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and also procedures departments do not agree over the advertising mix allowance amongst one another either.

Disintegration in Marketing Department: Fragmentation between the marketing and advertising departments can be determined as another OB concern which could require further attention. The truth that the advertising and marketing sections in the marketing department are separated is protecting against both divisions from acquiring from each other's experience as well as know-how. Assimilation of advertising with retailing and procedures would come to be harder if the advertising and marketing division itself is broken down which can be an additional prospective OB problem.

Videoguide Inc A Analysis

Various theories have been made use of to explain the scenarios to obtain further clarity about the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors believe that staffs are easy and lazy, have little aspiration as well as stand up to modification. The hard variation of this concept highlighted coercion, limited controls, risks as well as penalties. In time it produces reduced efficiency, refined sabotage as well as rivalry (Offer, 2003). The scenario at Videoguide Inc A is not entirely adhering to Concept X, it can be seen that new hires are locating this setting instead difficult which may at some point lead to a higher disposition of the administration in the direction of Theory X. According to McGregor's promoted view, which he called Theory Y, the essential job of the monitoring is to set up organizational problems to ensure that people can attain their very own objectives best by directing their initiatives towards business incentives. If individuals discover no fulfillment in their job, the monitoring would have little option yet to depend on theory X as well as external control (Offer, 2003). Even while examining Lewis's monitoring style, concept X may have appropriated in the operations department to some extent however the Advertising department would call for reliance on Theory Y to get the creativity as well as originality from the groups.

Tuckman's Teamwork Theory: As for Lewis's concern regarding bringing harmony in between the advertising and marketing department is worried, this would originally result in conflict as reviewed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, during the initial stage of team growth, individuals might not bond, as they are hectic discovering their location in the team. By integrating the marketing and advertising department's job, there may be the same initial disconnect which can bring about the second stage of 'storming' where the teams challenge one another. It is just during the 3rd stage 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 'performing'.

When individuals are provided with modification, they enter phase one and so there might be feelings like unhappiness, uncertainty, disappointment, rage, fear, denial and disorientation.The scenario at the advertising division of Videoguide Inc A is similar so Lewis can get comfortable with the concept that it is not remarkable actions. It is during this stage that Lewis will certainly have to offer support to the department so that they can find a sense of direction. It can be seen how Krasnow has actually currently made this change easier by making Lewis obtain included in the department a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has discusses the value of 'safety requires as being a reduced degree need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel safe as well as out of danger' is at the second level of demands. Prior to an employee can be made to establish emotionally, he needs to have his 'Physiological 'as well as 'Safety and security' requires fulfilled.

SWOT Analysis for Videoguide Inc A Case Study



Effects of Analysis.

The OB analysis has actually taken a look at various theories to understand just how to handle the present scenario at hand. The following three alternatives have been recommended to assist Lewis manage the organizational difficulties in the marketing division. Each of these options has been suggested for reducing the transition needed to bring the advertising and marketing department in line with the demands of the market as well as for making the cultural modification that would adhere to as soon as the current leader leaves.

Combination of marketing and advertising features. Dividing Adverting as well as Manufacturing functions. Integration of Advertising with Operations.

Examination of Alternatives.

Assimilation of Advertising And Marketing & Advertising And Marketing Functions: The in-house advertising and marketing firm of Videoguide Inc A is currently toughness for the organization in terms of saving up on expenses related to marketing and promotion. Because no new recruitment has been done after Bridget Cole's separation with the coverage line being straight assigned to Krasnow for the marketing function, this is a desirable opportunity for incorporating the marketing and advertising features. Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merging days has proficiency in business-to-business advertising and marketing along with agency and retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both advertising and marketing functions.

The benefit of this approach is that it will integrate both functions while lowering the demand for employing an additional source for marketing. Lewis would be heading the advertising and marketing department and in any case her replacement would be required for the current duty that she is executing. The negative aspect of this option is that outside hiring might produce bitterness from interior employees who might be considering the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting as well as Production: Offered the affordable stress and high quality work needed from the advertising and marketing agency, it is advised that Lewis must allow the production device to be a separate feature from the advertising and marketing device. Given that most advertising agencies had these two functions as separate units, it makes even more feeling to comply with the norm.

Integration of Marketing with Operations: Because Lewis is currently caring for the marketing and also procedures departments at the same time; it makes good sense to integrate the two functions given that she has actually been effectively dealing with both ends. The truth that both divisions already have significant distinctions over appropriation of sources suggests that this integration might be able to cause consistency specifically as Lewis would be heading both ends.However there are numerous downsides of this action particularly as it would put excessive problem over Lewis's shoulders. The reality that Lewis has to adapt her management style for the marketing department suggests that these 2 divisions would be culturally diverse. Along with this, Lewis may not have the ability to use one type of leadership design to both divisions which can result in inadequacy in either among both features.

Referral.



An evaluation of the three options suggests that combination of advertising and marketing as well as operations would not be a practical relocation as a result of the large distinctions between both departments although that presently Lewis is handling both. While splitting up of the production function might have been a favorable move for the advertising department, the fact that it would mean positioning a third function under Lewis's wing means this should be prevented as well. The integration of the marketing division is the most effective alternative in terms of obtaining the optimum results from the department. An activity plan for this choice is reviewed listed below.

Activity Plan.
Recommendation
Lewis will take over the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

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

Lewis will separate herself from procedures.

An autonomous leadership design with worker empowerment will be used in marketing department.

Open door plan and focus on cross departmental communication will be targeted at getting rid of dissonance.

Contingency plan.

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