Videoguide Inc A Case Study Solution


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Videoguide Inc A Case Study Analysis

Background and Facts

Videoguide Inc A a workplace supplies store for tiny and moderate sized services has lately been involved in planning for a merger with its competitor Residence Deport, which has actually influenced effectiveness degrees in departmentswith the elderly manager associated with legal difficulties presented by the federal Profession Commission. With the Advertising Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the future. With difficulties in the type of a possible social change as well as reduced worker spirits, the organization is in need of a total reengineering effort at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising and marketing division of Videoguide Inc A is enhancing uncertainty in the working environment bring about various difficulties for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting critical decisions because Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Profession Payment's treatment while doing so. Given the reality that the store has a worldwide visibility with branches in UK, USA, Canada as well as Germany, political factors in each of these nations may be able to affect efficiency or critical objectives. Federal Profession Commission's antitrust suit against the merger used up useful time of the company's senior administration suggesting that 'political' factors can have significant ramifications for an international business.

Economic Factors: Financial factors such as the emergence of small companies in the international situation recommend that Videoguide Inc A is thriving in an atmosphere where there is possible growth of companies. Along with this, truth that store consumers are primarily trying to find workplace supplies for home offices suggests that the marketplace has a climbing trend of entrepreneurs and also home based companies.

Social factors: Social fads in the economic climate show that clients are searching for ease as well as attractive rates. Market research demonstrates how the customer for Videoguide Inc A lacks understanding about locating options which can supply a combination of ease and low costs.

Technical factors: Technology plays an important role in Videoguide Inc A's service approach especially as the organization is piloting Innovation centers which would certainly supply technology sales and assistance in the kind of memory upgrades, peripheral setups. (Recap of BUG in appendix 2).

OB Issues as well as Manifestations.

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

Apprehensions regarding social change: There is worry concerning a social adjustment that would occur when Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with most of the team member already revealing unhappiness over this prospective step. This anticipated adjustment has actually created stress in the workplace which has actually been coupled with the previous stress and anxiety of preparing the company for a possible merging with Home Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is scarcity of employees that can match the difficult environment of a busy company. Not only does this lead to difficulty in finding the appropriate individuals, it puts stress and anxiety on new hires as can not endure the speed and also pressure that the company anticipates them to birth.

Dual Coverage Lines: Beginners discover this organizational culture troublesome and tough to deal with specifically as populated line connections are suggested to be weak as a whole as well as unbiased setting and performance evaluation is still done by the strong line manager. This means that novices could shed quality concerning their corresponding roles as well as purposes specifically as dotted line coverage does not maintain them in straight communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles even though it had actually been guessed that the last would certainly take Krasnow's placement came as an impact to her spirits. Lewis might have been qualified as well as appropriate for the work however the truth that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Fear & Job Instability: Fear and also instability can be recognized as 2 significant worries that Lewis would be taking care of particularly as the merger has currently be cancelled and 2 senior executives of the advertising and marketing department would be leaving. The entire duty of the division would certainly be falling on Lewis's shoulders who would not simply be in charge of brining concerning a social adjustment but would certainly additionally need to show herself in her new function.

Inappropriate Management Design of Leader: Lewis's management design and also its incompatibility with the advertising department's duty can additionally be seen as an OB challenge specifically as she has been made use of to taking care of issues in the operations division where personnel are educated to concentrate on procedures and also obtain them. The advertising and marketing department on the various other hand can be viewed as a group of people that are used to being supported by Krasnow who concentrated extra on outcome than processes.

Interdepartmental Arguments: Interdepartmental disagreements in between three departments, advertising and marketing, merchandizing and also operations respectively over the appropriation of the advertising mix can be identified as an additional OB worry. The advertising department does not share the same vision as the other 2 departments regarding the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and operations departments do not agree over the advertising mix allocation amongst one another either.

Disintegration in Marketing Division: Disintegration between the advertising and marketing departments can be determined as an additional OB concern which could require more focus. The fact that the marketing and advertising sections in the advertising and marketing department are detached is protecting against both divisions from gaining from each other's experience as well as experience. Combination of advertising and marketing with retailing and also operations would come to be harder if the advertising division itself is degenerated which can be an additional possible OB concern.

Videoguide Inc A Analysis

Various theories have been utilized to describe the situations to get more clarity regarding the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many supervisors believe that staffs are passive as well as careless, have little passion and also stand up to adjustment. The hard variation of this theory highlighted threat, limited controls, threats as well as penalties. Over time it generates low performance, subtle sabotage as well as competition (Offer, 2003). Although the circumstance at Videoguide Inc A is not totally following Concept X, it can be seen that brand-new hires are locating this atmosphere rather stressful which might eventually lead to a better disposition of the administration in the direction of Concept X. According to McGregor's promoted sight, which he called Concept Y, the vital task of the management is to prepare organizational conditions to make sure that individuals can achieve their own goals best by routing their efforts in the direction of organizational incentives. If people locate no contentment in their job, the administration would certainly have little selection yet to count on concept X and external control (Deal, 2003). Also while analyzing Lewis's monitoring style, concept X may have appropriated in the procedures department somewhat but the Marketing division would certainly require dependence on Theory Y in order to get the creative thinking and also creativity from the teams.

Tuckman's Team effort Theory: Regarding Lewis's worry about bringing consistency in between the advertising and marketing division is concerned, this would at first cause conflict as discussed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's theory received appendix 3, throughout the preliminary phase of group development, individuals may not bond, as they are active locating their place in the team. By integrating the advertising and marketing division's job, there might coincide first separate which might result in the 2nd stage of 'storming' where the groups challenge one another. However, it is just throughout the 3rd stage or 'norming' when they would integrate to share ideas prior to the group can bring about synergy in the 4th stage 'carrying out'.

Bridges' Shift Model: Based On William Bridge's theory (appendix 4), people are rather unpleasant with change, which is apparent by the scenario at Videoguide Inc A The scenario can be viewed as a regular course of life if is researched based on Bridge's concept where he discusses that people go through 3 phases of shift when they experience modification. 'Closing, shedding and also Releasing', The Neutral Area and 'The New Starting' (Bridges, 2004). When individuals are presented with modification, they get in stage one therefore there might be feelings like sadness, unpredictability, aggravation, rage, worry, rejection and disorientation.The scenario at the marketing department of Videoguide Inc A is similar so Lewis can obtain comfortable with the suggestion that it is not phenomenal actions. In the second stage, there may be a demand to link the void in between the new and also old society so Lewis might have to encounter this challenge once Krasnow leaves. There might be low spirits and reduced efficiency at this stage which should not be taken as a problem. It is during this stage that Lewis will have to give assistance to the division to make sure that they can discover an orientation. It can be seen exactly how Krasnow has actually currently made this change simpler by making Lewis obtain involved in the division a year prior to his actual departure. As per Bridges' Design, phase three will certainly cause visibility to discovering, High power and dedication as individuals will certainly embrace the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has reviews the relevance of 'security needs as being a lower degree requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel secure as well as out of threat' is at the 2nd degree of requirements. Before an employee can be made to establish psychologically, he requires to have his 'Physiological 'and also 'Security' needs satisfied.

SWOT Analysis for Videoguide Inc A Case Study

Effects of Analysis.

The OB analysis has actually looked at different theories to comprehend exactly how to deal with the current circumstance at hand. The adhering to three alternatives have actually been proposed to aid Lewis take care of the organizational obstacles in the marketing division. Each of these choices has actually been recommended for easing the shift required to bring the advertising department according to the demands of the market and for making the social change that would certainly comply with when the present leader leaves.

Combination of marketing and advertising functions. Dividing Adverting and Production features. Assimilation of Advertising with Operations.

Analysis of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merging days has expertise in business-to-business advertising and marketing along with company and retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to take care of both advertising and advertising and marketing functions.

The advantage of this method is that it will incorporate the two features while reducing the need for employing an additional resource for advertising and marketing. Lewis would be heading the marketing department and in any type of case her substitute would certainly be required for the existing role that she is carrying out. The disadvantage of this alternative is that external hiring may produce animosity from inner personnel who may be considering the placement of EVP after Lewis takes over Krasnow's setting.

Separating Adverting as well as Production: Given the affordable pressures as well as high quality work needed from the advertising agency, it is suggested that Lewis needs to permit the production device to be a separate feature from the advertising system. Since most advertising agencies had these two features as separate devices, it makes even more sense to adhere to the norm. Along with this, both functions may have the ability to focus on their core turns on a lot more effectively. Nonetheless, the negative aspect of this strategy would certainly be that extra prices would certainly have to be borne for establishing different production features. A manufacturing head might have to be worked with which can boost overheads for the organization.

Combination of Advertising with Procedures: Given that Lewis is already taking care of the advertising and operations divisions simultaneously; it makes feeling to incorporate the 2 functions since she has been effectively taking care of both ends. The truth that Lewis has to adjust her monitoring design for the advertising department suggests that these two divisions would certainly be culturally varied.


An evaluation of the 3 alternatives indicates that integration of advertising and operations would not be a practical action as a result of the large distinctions in between both departments despite the fact that presently Lewis is dealing with both. While splitting up of the production function may have been a beneficial action for the marketing division, the fact that it would indicate putting a 3rd function under Lewis's wing means this must be avoided. The combination of the advertising and marketing department is the best option in terms of getting the optimal arise from the division. An action prepare for this choice is reviewed below.

Action Strategy.
Lewis will take control of the role of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would be combined.

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

Manufacturing function will remain part of advertising under advertising feature.

Lewis will separate herself from procedures.

A democratic leadership design with employee empowerment will be made use of in marketing division.

Open door plan and also emphasis on cross departmental communication will be focused on eliminating dissonance.

Contingency strategy.

If the combination does not exercise as planned, a contingency plan would follow which would certainly separate the manufacturing feature from the marketing feature to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising department without an SVP. Because case the manufacturing feature will certainly be separated by putting it under an SVP manufacturing.