Menu

A Costly Train Journey B Case Study Solution

CASE STUDY

Home >> Ivey >> A Costly Train Journey B >>

A Costly Train Journey B Case Study Help

Background and Facts

A Costly Train Journey B a workplace materials retailer for little and also medium sized organisations has lately been involved in planning for a merger with its rival House Deport, which has actually influenced efficiency levels in departmentswith the elderly supervisor associated with lawful issues presented by the federal Profession Payment. With the Advertising Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the near future. With challenges in the type of a possible social change and also reduced worker spirits, the organization needs a complete reengineering initiative at the marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective social change at the advertising division of A Costly Train Journey B is increasing uncertainty in the working environment bring about different obstacles 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 function in affecting strategic decisions considering that Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Trade Commission's treatment while doing so. Offered the reality that the store has a global presence with branches in UK, USA, Canada as well as Germany, political consider each of these countries might be able to affect performance or critical objectives. Federal Profession Commission's antitrust suit against the merger used up important time of the organization's elderly management suggesting that 'political' factors can have significant ramifications for a worldwide company.

Economic Factors: Financial factors such as the introduction of small companies in the global scenario suggest that A Costly Train Journey B is thriving in an atmosphere where there is prospective growth of organisations. Fact that store clients are primarily looking for workplace products for residence workplaces recommends that the market has a rising fad of entrepreneurs and also home based organisations.

Social factors: Social trends in the economic climate show that consumers are searching for comfort along with attractive rates. Marketing research shows how the customer for A Costly Train Journey B does not have recognition about locating remedies which can supply a combination of convenience and also inexpensive.

Technological factors: Modern technology plays an important role in A Costly Train Journey B's company method particularly as the organization is piloting Innovation centers which would supply innovation sales as well as support in the form of memory upgrades, outer installations. (Summary of PARASITE in appendix 2).

OB Issues and Effects.

Numerous underlying Organizational Behavior concerns can be seen in A Costly Train Journey B's case as highlighted in this section.

Worries about cultural adjustment: There is concern concerning a social change that would certainly happen once Todd Krasnow leaves from his position as the Executive Vice President of Advertising with most of the staff members currently showing unhappiness over this prospective action. This predicted change has developed stress and anxiety in the office which has been combined with the previous tension of preparing the company for a possible merger with Home Deport.
Pest Analysis
Stressful Work Environment for Newcomers: There is scarcity of personnel that can match the difficult setting of a hectic company. Not only does this result in difficulty in locating the best people, it puts stress on new hires as can not endure the speed as well as stress that the organization expects them to birth.

Double Reporting Lines: Beginners locate this business society cumbersome and also tough to deal with particularly as populated line partnerships are implied to be weak as a whole as well as objective setting and also efficiency analysis is still done by the solid line manager. This implies that newbies might shed clarity about their corresponding duties and also purposes particularly as populated line reporting does not keep them in straight interaction with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had been speculated that the latter would take Krasnow's placement came as a blow to her spirits. Lewis might have been capable and also suitable for the job however the reality that Kransnow's departure would make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.

Anxiety & Job Insecurity: Fear and instability can be determined as two major issues that Lewis would be managing especially as the merger has currently be terminated and also two elderly execs of the marketing division would be leaving. The whole responsibility of the department would be falling on Lewis's shoulders that would certainly not simply supervise of brining regarding a cultural adjustment yet would certainly additionally need to show herself in her brand-new function.

Incompatible Management Design of Leader: Lewis's monitoring style and its conflict with the advertising department's function can additionally be seen as an OB obstacle especially as she has actually been used to taking care of problems in the operations department where workers are shown to concentrate on procedures and also obtain them. The advertising division on the various other hand can be seen as a group of people that are made use of to being supported by Krasnow who concentrated much more on outcome than processes.

Interdepartmental Differences: Interdepartmental arguments between 3 divisions, marketing, merchandizing as well as procedures respectively over the appropriation of the advertising mix can be recognized as an additional OB problem. The advertising and marketing department does not share the exact same vision as the various other two divisions pertaining to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and procedures departments do not agree over the advertising and marketing mix allotment among one an additional either.

Fragmentation in Marketing Department: Fragmentation in between the marketing and advertising divisions can be recognized as an additional OB problem which could require more attention. The fact that the advertising and marketing areas in the advertising and marketing division are detached is avoiding both divisions from getting from each various other's experience and know-how. Assimilation of advertising with merchandising as well as procedures would end up being harder if the marketing division itself is broken down which can be an additional prospective OB concern.

A Costly Train Journey B Analysis

Numerous concepts have actually been made use of to discuss the situations to get further quality about the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of supervisors think that staffs are easy and also lazy, have little ambition and also resist change. The difficult variation of this concept stressed threat, tight controls, hazards and also penalties. In time it produces low efficiency, subtle sabotage and rivalry (Bargain, 2003). The situation at A Costly Train Journey B is not totally adhering to Theory X, it can be seen that new hires are locating this atmosphere instead demanding which may ultimately lead to a greater disposition of the monitoring towards Concept X. According to McGregor's promoted view, which he called Theory Y, the necessary job of the monitoring is to set up business conditions so that individuals can accomplish their own goals best by routing their efforts towards business rewards. If individuals find no satisfaction in their job, the monitoring would certainly have little choice however to count on concept X as well as outside control (Offer, 2003). Also while assessing Lewis's monitoring design, concept X may have appropriated in the operations department to some extent however the Marketing department would require reliance on Concept Y so as to get the imagination as well as originality from the groups.

Tuckman's Teamwork Theory: As for Lewis's worry regarding bringing consistency between the marketing and advertising division is worried, this would initially lead to contrast as talked about by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, throughout the preliminary phase of group development, people might not bond, as they are active locating their location in the team. By integrating the marketing and advertising department's work, there may coincide preliminary detach which could result in the 2nd phase of 'storming' where the groups challenge each other. It is just throughout the 3rd phase or 'norming' when they would come together to share ideas before the team can bring about harmony in the fourth phase 'carrying out'.

Bridges' Transition Version: Based On William Bridge's theory (appendix 4), individuals are quite unpleasant with modification, which is evident by the scenario at A Costly Train Journey B The scenario can be viewed as a regular training course of life if is studied according to Bridge's theory where he describes that people undergo 3 stages of transition when they experience change. 'Closing, shedding and Letting go', The Neutral Area and also 'The New Starting' (Bridges, 2004). When individuals exist with change, they go into stage one and so there might be feelings like unhappiness, uncertainty, frustration, anger, anxiety, rejection as well as disorientation.The scenario at the advertising and marketing department of A Costly Train Journey B is comparable so Lewis can get comfortable with the suggestion that it is not extraordinary actions. In the 2nd stage, there may be a need to link the space between the new and also old society so Lewis might have to encounter this ordeal when Krasnow leaves. There may be low spirits as well as reduced efficiency at this stage which should not be taken as a problem. It is during this stage that Lewis will certainly need to provide assistance to the department so that they can locate a sense of direction. It can be seen how Krasnow has already made this change simpler by making Lewis get associated with the division a year prior to his real separation. As per Bridges' Version, stage three will certainly produce openness to understanding, High power and also dedication as people will certainly welcome the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has discusses the significance of 'protection requires as being a lower level demand of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel safe and out of threat' is at the second level of requirements. Prior to an employee can be made to develop emotionally, he requires to have his 'Physiological 'and also 'Safety and security' needs met.

SWOT Analysis for A Costly Train Journey B Case Study



Effects of Analysis.

The OB analysis has actually considered numerous theories to comprehend just how to manage the existing circumstance available. The complying with three options have been proposed to aid Lewis handle the business challenges in the advertising division. Each of these choices has actually been proposed for reducing the shift needed to bring the advertising and marketing department in accordance with the demands of the marketplace and also for making the cultural adjustment that would adhere to as soon as the current leader leaves.

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

Analysis of Alternatives.

Combination of Advertising And Marketing & Marketing Functions: The internal advertising and marketing agency of A Costly Train Journey B is currently toughness for the company in regards to saving up on expenses connected to marketing and promotion. Given that no brand-new employment has been done after Bridget Cole's separation with the reporting line being directly appointed to Krasnow for the advertising function, this is a beneficial chance for integrating the advertising and marketing functions. Judith Shapiro who has earlier been interviewed by Lewis during the earlier merger days has competence in business-to-business advertising together with company and also retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both marketing and advertising features.

The benefit of this strategy is that it will certainly incorporate both features while lowering the requirement for employing an added resource for advertising and marketing. Lewis would certainly be heading the marketing division as well as in any case her replacement would certainly be needed for the current function that she is carrying out. The drawback of this alternative is that external hiring might bring about resentment from interior employees who may be considering the placement of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Manufacturing: Provided the affordable stress and high quality job called for from the advertising agency, it is suggested that Lewis needs to enable the manufacturing unit to be a different function from the advertising and marketing system. Given that the majority of advertising agencies had these 2 functions as different systems, it makes even more sense to follow the norm. Along with this, both features may have the ability to focus on their core triggers more successfully. Nevertheless, the negative aspect of this strategy would be that additional costs would need to be borne for establishing separate production features. Along with this, a production head might have to be employed which might boost overheads for the organization.

Combination of Advertising with Workflows: Because Lewis is already caring for the advertising as well as operations divisions at the same time; it makes sense to integrate the two features because she has actually been effectively dealing with both ends. The truth that both divisions currently have major differences over appropriation of resources suggests that this integration may be able to produce harmony specifically as Lewis would be heading both ends.However there are numerous negative aspects of this step especially as it would certainly place way too much burden over Lewis's shoulders. The reality that Lewis needs to adapt her management style for the advertising and marketing department recommends that these two departments would be culturally diverse. Along with this, Lewis may not have the ability to use one type of leadership design to both departments which can result in ineffectiveness in either among the two functions.

Referral.



An examination of the three choices indicates that assimilation of advertising as well as procedures would not be a feasible move due to the vast distinctions in between the two departments despite the fact that currently Lewis is managing both. While separation of the production feature might have been a beneficial move for the advertising and marketing department, the fact that it would mean placing a 3rd function under Lewis's wing implies this should be avoided. The integration of the advertising and marketing department is the most effective alternative in terms of obtaining the optimal results from the division. An activity plan for this alternative is gone over listed below.

Action Plan.
Recommendation
Lewis will take over the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Production function will certainly stay part of marketing under advertising function.

Lewis will separate herself from procedures.

A democratic management style with employee empowerment will be utilized in advertising and marketing division.

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

Contingency strategy.

If the combination does not work out as planned, a backup plan would certainly adhere to which would certainly divide the manufacturing feature from the advertising and marketing function to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing division without an SVP. Because case the production feature will most definitely be separated by positioning it under an SVP production.