Menu

Westmount Retirement Residence Case Study Solution

CASE HELP

Home >> Harvard >> Westmount Retirement Residence >>

Westmount Retirement Residence Case Study Solution

Background and Facts

Westmount Retirement Residence a workplace supplies retailer for small and also moderate sized services has actually lately been involved in planning for a merging with its rival Residence Deport, which has actually influenced efficiency levels in departmentswith the senior supervisor associated with legal difficulties put forth by the government Profession Payment. With the Advertising Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the near future. With difficulties in the form of a prospective cultural adjustment and reduced staff member spirits, the company wants a complete reengineering effort at the marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising division of Westmount Retirement Residence is raising uncertainty in the workplace resulting in different difficulties for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in influencing critical choices because Stapes Inc. had to abandon its strategies of combining with Office Deport after the Federal Profession Compensation's treatment at the same time. Provided the truth that the store has a worldwide visibility with branches in UK, USA, Canada and also Germany, political factors in each of these nations might have the ability to affect performance or critical goals. Federal Trade Compensation's antitrust match against the merger took up beneficial time of the company's elderly management suggesting that 'political' factors can have significant effects for a worldwide organisation.

Economic Factors: Financial factors such as the development of small businesses in the worldwide situation suggest that Westmount Retirement Residence is flourishing in an atmosphere where there is possible growth of services. Reality that store clients are mostly looking for office supplies for house offices suggests that the market has a climbing trend of business owners and also residence based businesses.

Social factors: Social trends in the economy show that consumers are searching for convenience along with appealing prices. Market research demonstrates how the client for Westmount Retirement Residence lacks understanding about finding services which can offer a combination of benefit and also affordable.

Technical factors: Innovation plays a crucial role in Westmount Retirement Residence's business method specifically as the organization is piloting Modern technology facilities which would certainly use innovation sales as well as assistance in the form of memory upgrades, peripheral installments. (Summary of PARASITE in appendix 2).

OB Issues and Manifestations.

Numerous underlying Organizational Behavior concerns can be seen in Westmount Retirement Residence's case as highlighted in this area.

Concerns about cultural modification: There is worry regarding a cultural change that would certainly happen once Todd Krasnow leaves from his setting as the Exec Vice President of Marketing with most of the personnel currently revealing discontent over this prospective action. This anticipated adjustment has produced anxiety in the work environment which has actually been coupled with the previous tension of preparing the company for a possible merging with House Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is scarcity of workers that can match the stressful environment of a busy company. Not just does this lead to problem in locating the appropriate individuals, it places anxiety on brand-new hires as can not endure the speed and stress that the company expects them to birth.

Twin Reporting Lines: Newbies locate this organizational society cumbersome as well as difficult to handle especially as populated line relationships are meant to be weaker as a whole and objective setup and also efficiency examination is still done by the solid line supervisor. This implies that newcomers can lose clarity regarding their particular roles and objectives especially 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 rather than Bridget Coles although it had actually been guessed that the latter would take Krasnow's placement came as a strike to her morale. Lewis may have been qualified and appropriate for the job but the truth that Kransnow's separation would make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Anxiety & Task Instability: Fear as well as instability can be recognized as two major problems that Lewis would certainly be managing specifically as the merging has now be cancelled and two elderly execs of the marketing department would certainly be leaving. The whole responsibility of the department would be falling on Lewis's shoulders that would certainly not simply be in charge of brining about a cultural adjustment however would certainly additionally need to show herself in her new duty.

Inappropriate Monitoring Style of Leader: Lewis's monitoring design and also its conflict with the advertising and marketing division's role can additionally be seen as an OB difficulty specifically as she has been used to handling problems in the operations division where workers are instructed to focus on processes 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 focused extra on output than procedures.

Interdepartmental Disputes: Interdepartmental disagreements between 3 divisions, marketing, merchandizing as well as procedures specifically over the allowance of the marketing mix can be identified as another OB concern. Although the advertising division does not share the same vision as the other 2 departments concerning the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing as well as procedures divisions do not agree over the marketing mix appropriation among each other either.

Fragmentation in Advertising Division: Fragmentation between the advertising and marketing departments can be determined as one more OB issue which could require additional focus. The fact that the advertising and marketing sections in the marketing division are separated is protecting against both departments from getting from each various other's experience and also know-how. Assimilation of marketing with retailing and also procedures would certainly come to be harder if the advertising and marketing department itself is disintegrated which can be an additional possible OB concern.

Westmount Retirement Residence Analysis

Numerous concepts have actually been made use of to clarify the circumstances to get more clearness about the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers believe that staffs are passive as well as lazy, have little passion and resist adjustment. The difficult version of this concept highlighted coercion, limited controls, risks as well as punishments. Gradually it produces reduced productivity, refined sabotage as well as rivalry (Deal, 2003). Although the scenario at Westmount Retirement Residence is not entirely following Concept X, it can be seen that brand-new hires are discovering this setting rather difficult which may eventually bring about a higher disposition of the administration towards Concept X. As per McGregor's supported sight, which he called Concept Y, the necessary task of the administration is to set up business conditions to make sure that people can attain their own goals best by routing their efforts in the direction of business incentives. If people locate no satisfaction in their work, the management would certainly have little option yet to rely upon concept X and external control (Bargain, 2003). Also while analyzing Lewis's management design, theory X might have been suitable in the operations division somewhat but the Advertising and marketing department would certainly need reliance on Theory Y so as to get the imagination and creativity from the teams.

Tuckman's Team effort Concept: As much as Lewis's concern concerning bringing harmony in between the marketing and also marketing department is concerned, this would at first lead to conflict as gone over by Bruce Tuckman in his 'Teamwork Theory'. By incorporating the marketing as well as advertising and marketing division's work, there might be the same initial disconnect which could lead to the 2nd stage of 'storming' where the teams challenge one an additional.

When individuals are provided with adjustment, they go into stage one as well as so there may be feelings like unhappiness, uncertainty, disappointment, anger, fear, denial as well as disorientation.The situation at the marketing division of Westmount Retirement Residence is comparable so Lewis can obtain comfortable with the idea that it is not extraordinary habits. It is during this stage that Lewis will have to offer assistance to the division so that they can find a feeling of direction. It can be seen exactly how Krasnow has actually already made this shift less complicated by making Lewis obtain entailed in the division a year prior to his real separation.
Vrio Analysis
Maslow's Requirement power structure: The OB issue related to insecurity at the office has actually been set off firstly by the modification in administration as well as second of all by the truth that the merger will certainly no longer be initiated. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has talks about the importance of 'safety and security needs as being a lower level need of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to feel protected and unharmed' is at the second level of demands. Before an employee can be made to establish psychologically, he needs to have his 'Physiological 'and 'Safety' needs fulfilled. This suggests that unless the personnel are made to really feel secure regarding their existing work status in Westmount Retirement Residence they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Westmount Retirement Residence Case Study



Effects of Analysis.

The OB analysis has looked at different concepts to comprehend how to handle the present situation handy. The following three options have been suggested to aid Lewis take care of the organizational obstacles in the advertising division. Each of these choices has actually been suggested for easing the transition required to bring the advertising and marketing department according to the requirements of the marketplace as well as for making the cultural adjustment that would adhere to once the current leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting as well as Manufacturing features. Combination of Marketing with Procedures.

Evaluation of Alternatives.

Assimilation of Marketing & Marketing Functions: The in-house advertising and marketing firm of Westmount Retirement Residence is currently toughness for the company in regards to conserving up on expenses related to advertising as well as promotion. Because no brand-new recruitment has been done after Bridget Cole's departure with the reporting line being straight appointed to Krasnow for the marketing function, this is a desirable opportunity for incorporating the marketing and advertising functions. Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merging days has know-how in business-to-business advertising together with firm and also retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to manage both advertising and marketing functions.

The benefit of this technique is that it will certainly integrate the two features while reducing the demand for hiring an added resource for marketing. Lewis would certainly be heading the marketing department and in any kind of case her substitute would be required for the existing role that she is executing. The disadvantage of this alternative is that external hiring might cause bitterness from inner personnel that might be considering the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and also Production: Offered the competitive stress as well as premium quality job needed from the ad agency, it is advised that Lewis must allow the production device to be a different function from the advertising and marketing system. Because a lot of ad agency had these 2 features as different units, it makes even more sense to follow the norm. Both functions may be able to focus on their core triggers much more successfully. However, the downside of this strategy would be that added prices would have to be borne for setting up different manufacturing features. A manufacturing head may have to be employed which can raise expenses for the company.

Assimilation of Advertising with Operations: Because Lewis is currently looking after the advertising and operations departments at the same time; it makes sense to incorporate the two features considering that she has been successfully caring for both ends. The reality that both divisions already have significant differences over allotment of resources suggests that this assimilation might be able to produce consistency specifically as Lewis would be heading both ends.However there are different disadvantages of this relocation specifically as it would certainly place way too much worry over Lewis's shoulders. The fact that Lewis has to adjust her administration design for the advertising and marketing department recommends that these two departments would be culturally varied. In addition to this, Lewis might not be able to use one type of leadership style to both divisions which could lead to inadequacy in either among the two functions.

Suggestion.



An evaluation of the 3 alternatives shows that integration of advertising and marketing and operations would not be a viable step due to the vast differences between the 2 departments despite the truth that currently Lewis is taking care of both. While splitting up of the production feature might have been a favorable relocation for the advertising and marketing division, the reality that it would certainly mean placing a third feature under Lewis's wing suggests this need to be avoided.

Activity Strategy.
Recommendation
Lewis will certainly take over the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

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

Manufacturing function will certainly stay part of marketing under advertising and marketing feature.

Lewis will divide herself from operations.

A democratic leadership design with worker empowerment will certainly be used in advertising and marketing division.

Open up door plan and also emphasis on cross department communication will be focused on getting rid of disharmony.

Contingency strategy.

If the integration does not work out as intended, a contingency strategy would certainly comply with which would certainly separate the production function from the advertising and marketing feature to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising department without an SVP. Because case the manufacturing feature will most definitely be separated by positioning it under an SVP manufacturing.