Western Technology Investment Case Study Solution


Home >> Harvard >> Western Technology Investment >>

Western Technology Investment Case Study Solution

Background and Facts

Western Technology Investment a workplace materials merchant for small and medium sized businesses has actually lately been associated with planning for a merger with its rival House Deport, which has actually impacted effectiveness degrees in departmentswith the elderly supervisor involved in legal issues presented by the government Trade Payment. 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 been asked to take the function in the near future. With obstacles in the kind of a possible cultural adjustment and reduced worker morale, the organization wants a complete reengineering effort at the advertising and marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible cultural change at the advertising department of Western Technology Investment is boosting uncertainty in the working environment causing different difficulties for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing critical decisions given that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Commission's treatment in the process. Provided the truth that the shop has a worldwide presence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries might have the ability to impact efficiency or strategic goals. Federal Profession Payment's antitrust match versus the merging took up valuable time of the company's senior administration recommending that 'political' factors can have severe implications for a worldwide business.

Economic Factors: Financial factors such as the emergence of small businesses in the global situation suggest that Western Technology Investment is growing in a setting where there is potential development of companies. In addition to this, fact that shop customers are mainly trying to find office materials for office suggests that the market has a rising pattern of business owners and also home based services.

Social factors: Social patterns in the economic situation reveal that clients are looking for ease as well as attractive rates. Market research shows how the customer for Western Technology Investment lacks awareness about discovering options which can use a mix of benefit and inexpensive.

Technical factors: Innovation plays a vital function in Western Technology Investment's service method specifically as the company is piloting Modern technology centers which would supply innovation sales as well as assistance in the type of memory upgrades, peripheral installations. (Recap of BUG in appendix 2).

OB Issues and also Symptoms.

A number of underlying Business Actions issues can be seen in Western Technology Investment's case as highlighted in this section.

Apprehensions about cultural adjustment: There is concern concerning a social change that would take place once Todd Krasnow leaves from his setting as the Exec Vice President of Advertising And Marketing with most of the personnel already showing unhappiness over this possible relocation. This anticipated adjustment has actually produced stress and anxiety in the work environment which has actually been combined with the previous anxiety of preparing the firm for a possible merging with Residence Deport.
Pest Analysis
Demanding Job Environment for Newcomers: There is lack of employees that can match the stressful environment of a hectic organization. Not just does this cause problem in finding the best individuals, it places anxiety on new hires as can not hold up against the pace and also pressure that the organization expects them to birth.

Dual Coverage Lines: Beginners find this business society difficult and hard to deal with specifically as populated line connections are indicated to be weaker generally as well as unbiased setting and also efficiency evaluation is still done by the solid line manager. This means that novices could lose quality about their particular functions and goals specifically as dotted line coverage does not keep them in straight communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had been speculated that the last would take Krasnow's setting came as a strike to her morale. Lewis may have been qualified as well as ideal for the job yet the truth that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Job Insecurity: Worry and instability can be determined as two major worries that Lewis would be taking care of especially as the merger has now be cancelled and also two elderly execs of the advertising and marketing division would certainly be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders that would certainly not simply supervise of brining regarding a social adjustment however would certainly also have to prove herself in her brand-new duty.

Incompatible Management Design of Leader: Lewis's management design and also its conflict with the marketing department's duty can additionally be viewed as an OB obstacle specifically as she has actually been made use of to taking care of problems in the operations division where personnel are instructed to focus on procedures and also get them right. The marketing division on the various other hand can be seen as a group of individuals who are made use of to being supported by Krasnow who concentrated a lot more on outcome than processes.

Interdepartmental Arguments: Interdepartmental arguments in between three divisions, marketing, merchandizing and procedures specifically over the allotment of the advertising and marketing mix can be identified as another OB concern. The marketing division does not share the exact same vision as the other 2 divisions relating to the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and procedures departments do not agree over the advertising and marketing mix allotment amongst one another either.

Disintegration in Advertising And Marketing Department: Disintegration in between the advertising and marketing divisions can be recognized as one more OB concern which might need more focus. The fact that the marketing and advertising areas in the advertising department are separated is protecting against both departments from acquiring from each other's experience and also expertise. Assimilation of advertising with retailing and operations would become harder if the advertising and marketing department itself is degenerated which can be an additional prospective OB concern.

Western Technology Investment Analysis

Different theories have been used to discuss the circumstances to get more quality regarding the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that juniors are passive and also lazy, have little passion and also stand up to change. The scenario at Western Technology Investment is not completely complying with Theory X, it can be seen that new hires are discovering this environment instead difficult which may ultimately lead to a higher disposition of the management towards Concept X. Even while analyzing Lewis's administration style, theory X might have been suitable in the operations division to some degree however the Advertising and marketing department would certainly need dependence on Theory Y in order to obtain the creativity as well as originality from the groups.

Tuckman's Team effort Theory: As for Lewis's worry regarding bringing consistency in between the advertising and marketing department is concerned, this would initially lead to contrast as reviewed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, throughout the initial stage of group advancement, people might not bond, as they are hectic discovering their place in the group. By incorporating the advertising and marketing department's job, there might be the same first detach which might result in the second stage of 'storming' where the groups challenge each other. Nonetheless, it is just throughout the 3rd stage or 'norming' when they would integrate to share concepts before the group can bring about synergy in the 4th stage 'carrying out'.

When individuals are provided with adjustment, they go into phase one and so there may be emotions like despair, unpredictability, aggravation, anger, fear, rejection and also disorientation.The situation at the advertising division of Western Technology Investment is comparable so Lewis can obtain comfy with the concept that it is not phenomenal habits. It is throughout this phase that Lewis will certainly have to offer assistance to the department so that they can find a sense of instructions. It can be seen just how Krasnow has actually currently made this change much easier by making Lewis obtain included in the department a year before his actual separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has discusses the relevance of 'safety and security needs as being a lower level need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel safe and out of risk' is at the second degree of needs. Prior to an employee can be made to establish mentally, he needs to have his 'Physical 'as well as 'Safety and security' needs met.

SWOT Analysis for Western Technology Investment Case Study

Ramification of Analysis.

The OB analysis has actually considered various theories to recognize exactly how to handle the current situation available. The adhering to three options have actually been recommended to assist Lewis deal with the business difficulties in the advertising division. Each of these options has actually been proposed for easing the shift required to bring the marketing division in line with the requirements of the marketplace as well as for making the cultural modification that would certainly follow when the existing leader leaves.

Combination of marketing and advertising functions. Separating Adverting and also Production functions. Assimilation of Marketing with Workflow.

Evaluation of Alternatives.

Assimilation of Marketing & Advertising Functions: The in-house advertising firm of Western Technology Investment is already stamina for the organization in terms of conserving up on overheads connected to marketing and promo. Since no brand-new employment has been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the advertising and marketing function, this is a desirable opportunity for integrating the marketing and advertising functions. Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merger days has expertise in business-to-business advertising along with company as well as retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing features.

The benefit of this technique is that it will certainly integrate the two features while decreasing the requirement for hiring an added resource for advertising and marketing. Lewis would be heading the advertising and marketing division and in any case her replacement would be required for the existing duty that she is performing. The drawback of this choice is that exterior hiring might bring about resentment from internal personnel who might be looking at the placement of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and also Production: Given the affordable stress and also high quality job needed from the marketing company, it is suggested that Lewis needs to permit the production unit to be a separate function from the advertising and marketing unit. Given that many marketing agencies had these 2 features as separate systems, it makes more feeling to adhere to the norm.

Combination of Advertising And Marketing with Workflows: Considering that Lewis is currently taking care of the advertising and also procedures departments simultaneously; it makes feeling to integrate the two features because she has been successfully taking treatment of both ends. The reality that Lewis has to adjust her administration style for the marketing department recommends that these two divisions would certainly be culturally varied.


An examination of the 3 alternatives suggests that assimilation of marketing as well as operations would not be a possible action due to the vast distinctions in between the two departments although that presently Lewis is handling both. While separation of the production feature may have been a positive step for the marketing division, the fact that it would suggest placing a third function under Lewis's wing means this should be prevented. The integration of the advertising and marketing department is the very best alternative in terms of getting the optimal arise from the division. An activity prepare for this choice is talked about listed below.

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

Advertising and Marketing functions would be combined.

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

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

Lewis will divide herself from procedures.

A democratic management design with staff member empowerment will be made use of in marketing department.

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

Backup plan.

If the integration does not work out as prepared, a backup strategy would certainly follow which would separate the production function from the advertising and marketing feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing department without an SVP. Because case the manufacturing function will absolutely be separated by positioning it under an SVP production.