Astral Records Ltd North America Case Study Solution


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Astral Records Ltd North America Case Study Solution

Background and Facts

Astral Records Ltd North America a workplace materials store for little as well as moderate sized organisations has actually recently been involved in preparing for a merger with its competitor Residence Deport, which has actually affected efficiency levels in departmentswith the elderly supervisor associated with legal issues put forth by the government Trade Payment. With the Advertising and marketing 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 near future. With obstacles in the type of a potential social change and also reduced worker spirits, the organization needs a total reengineering effort at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The potential cultural change at the advertising department of Astral Records Ltd North America is raising uncertainty in the workplace resulting in various obstacles for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing critical choices because Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Profession Commission's intervention at the same time. Given the fact that the store has a global presence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations might have the ability to affect performance or critical objectives. Federal Trade Compensation's antitrust match against the merging used up important time of the organization's elderly monitoring recommending that 'political' factors can have severe effects for an international company.

Economic Factors: Financial factors such as the emergence of small businesses in the worldwide situation suggest that Astral Records Ltd North America is growing in an atmosphere where there is prospective development of companies. Reality that store clients are mainly looking for workplace supplies for home workplaces suggests that the market has a rising trend of business owners as well as residence based services.

Social factors: Social fads in the economy reveal that consumers are seeking convenience along with appealing prices. Marketing research demonstrates how the consumer for Astral Records Ltd North America lacks understanding about discovering solutions which can offer a combination of convenience and also low costs.

Technological factors: Modern technology plays an important role in Astral Records Ltd North America's organisation approach particularly as the organization is piloting Modern technology facilities which would certainly supply technology sales and also assistance in the kind of memory upgrades, outer setups. (Summary of PEST in appendix 2).

OB Issues and also Manifestations.

Numerous underlying Organizational Behavior issues can be seen in Astral Records Ltd North America's case as highlighted in this area.

Worries regarding cultural modification: There is apprehension concerning a social change that would happen when Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with the majority of the personnel currently showing discontent over this possible relocation. This anticipated modification has developed stress in the workplace which has actually been coupled with the past stress of preparing the firm for a prospective merger with House Deport.
Pest Analysis
Demanding Job Environment for Newcomers: There is scarcity of workers that can match the stressful setting of a hectic organization. Not only does this cause trouble in locating the ideal individuals, it places stress and anxiety on brand-new hires as can not stand up to the speed as well as pressure that the company expects them to birth.

Dual Coverage Lines: Novices locate this organizational society cumbersome and tough to handle particularly as populated line connections are indicated to be weak generally and also unbiased setting as well as efficiency assessment is still done by the solid line manager. This implies that newbies could shed clearness regarding their corresponding functions as well as purposes particularly as populated line coverage does not maintain them in straight communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had been hypothesized that the last would take Krasnow's setting came as a blow to her morale. Lewis might have been qualified as well as appropriate for the job yet the truth that Kransnow's departure would make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Task Insecurity: Concern and also insecurity can be recognized as 2 major concerns that Lewis would be managing particularly as the merger has now be terminated and 2 elderly executives of the advertising and marketing department would certainly be leaving. The entire obligation of the division would be dropping on Lewis's shoulders who would certainly not just be in charge of brining about a social adjustment yet would also have to show herself in her new role.

Inappropriate Monitoring Style of Leader: Lewis's management design and its conflict with the marketing department's function can additionally be seen as an OB obstacle especially as she has been made use of to taking care of problems in the procedures department where workers are educated to concentrate on procedures as well as get them. The marketing department on the various other hand can be seen as a team of individuals who are utilized to being nurtured by Krasnow who focused more on result than processes.

Interdepartmental Differences: Interdepartmental disagreements in between 3 departments, marketing, merchandizing and also procedures respectively over the allotment of the advertising and marketing mix can be recognized as an additional OB worry. Although the advertising and marketing department does not share the exact same vision as the various other two departments concerning the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and also procedures departments do not concur over the advertising mix appropriation amongst one another either.

Disintegration in Marketing Department: Disintegration in between the advertising and marketing departments can be determined as one more OB concern which might require additional focus. The reality that the advertising and marketing areas in the advertising division are separated is avoiding both departments from acquiring from each other's experience as well as competence. Integration of advertising with retailing and also operations would certainly become more difficult if the marketing department itself is degenerated which can be one more potential OB problem.

Astral Records Ltd North America Analysis

Numerous theories have actually been used to explain the scenarios to obtain additional clearness concerning the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers think that subordinates are easy and also careless, have little aspiration as well as withstand modification. The hard version of this concept highlighted coercion, tight controls, dangers as well as punishments. Gradually it produces reduced performance, refined sabotage and rivalry (Bargain, 2003). The scenario at Astral Records Ltd North America is not completely adhering to Theory X, it can be seen that brand-new hires are locating this setting instead stressful which may at some point lead to a better disposition of the administration towards Concept X. Based on McGregor's promoted view, which he called Concept Y, the crucial job of the monitoring is to set up organizational problems so that people can achieve their very own objectives best by guiding their initiatives towards organizational benefits. If people find no complete satisfaction in their work, the monitoring would have little option however to rely upon concept X and outside control (Bargain, 2003). Even while assessing Lewis's administration style, concept X may have appropriated in the operations department to some extent however the Advertising and marketing division would certainly require dependence on Theory Y so as to get the creativity and originality from the teams.

Tuckman's Teamwork Concept: As much as Lewis's worry regarding bringing consistency in between the marketing as well as marketing department is concerned, this would originally lead to conflict as discussed by Bruce Tuckman in his 'Synergy Concept'. By incorporating the advertising and marketing as well as advertising and marketing department's job, there might be the exact same preliminary detach which might lead to the 2nd stage of 'storming' where the teams challenge one another.

Bridges' Transition Model: As per William Bridge's theory (appendix 4), individuals are rather unpleasant with change, which is noticeable by the circumstance at Astral Records Ltd North America The circumstance can be seen as a regular training course of life if is studied according to Bridge's theory where he clarifies that people undergo 3 phases of transition when they experience modification. 'End, shedding and also Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people are presented with change, they go into stage one and so there might be emotions like despair, uncertainty, disappointment, rage, fear, denial and disorientation.The situation at the advertising division of Astral Records Ltd North America is comparable so Lewis can get comfortable with the idea that it is not extraordinary actions. In the 2nd stage, there might be a demand to link the void between the brand-new and old society so Lewis might have to encounter this experience as soon as Krasnow leaves. There might be low spirits and reduced efficiency at this stage which need to not be taken as a trouble. It is during this stage that Lewis will need to provide advice to the department to make sure that they can find a sense of direction. It can be seen exactly how Krasnow has actually currently made this shift simpler by making Lewis obtain associated with the division a year prior to his actual separation. Based on Bridges' Model, phase 3 will bring about openness to discovering, High energy and also dedication as individuals will welcome the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has goes over the value of 'safety and security needs as being a lower level demand of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel protected and also out of danger' is at the second level of needs. Before a staff member can be made to develop emotionally, he needs to have his 'Physiological 'as well as 'Safety' requires fulfilled.

SWOT Analysis for Astral Records Ltd North America Case Study

Ramification of Analysis.

The OB analysis has actually looked at numerous concepts to understand exactly how to deal with the existing scenario at hand. The complying with 3 options have been recommended to assist Lewis deal with the organizational difficulties in the marketing division. Each of these alternatives has actually been recommended for easing the transition needed to bring the marketing division in line with the needs of the marketplace as well as for making the social change that would comply with once the current leader leaves.

Combination of advertising and marketing features. Separating Adverting and also Manufacturing functions. Assimilation of Marketing with Operations.

Assessment of Alternatives.

Integration of Marketing & Marketing Functions: The internal advertising and marketing agency of Astral Records Ltd North America is currently toughness for the organization in terms of saving up on overheads associated with marketing and promotion. Given that no new recruitment has actually been done after Bridget Cole's departure with the reporting line being directly designated to Krasnow for the marketing function, this is a desirable chance for incorporating the advertising and marketing functions. Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merging days has competence in business-to-business advertising in addition to firm as well as retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to deal with both advertising and marketing functions.

The advantage of this strategy is that it will certainly incorporate the two features while decreasing the need for employing an additional source for advertising and marketing. Lewis would certainly be heading the advertising division as well as in any kind of case her substitute would be needed for the present duty that she is executing. The disadvantage of this choice is that external hiring may cause animosity from inner workers who may be eying the setting of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Production: Offered the affordable stress and also high top quality job needed from the advertising and marketing firm, it is recommended that Lewis must enable the production device to be a different feature from the advertising and marketing system. Considering that many advertising agencies had these 2 features as different devices, it makes more feeling to adhere to the standard.

Combination of Advertising And Marketing with Workflows: Given that Lewis is already taking treatment of the marketing and also operations divisions all at once; it makes feeling to integrate the two functions given that she has actually been effectively taking treatment of both ends. The reality that Lewis has to adapt her monitoring design for the advertising department recommends that these 2 divisions would be culturally diverse.


An evaluation of the three options shows that integration of marketing and procedures would not be a feasible move due to the vast distinctions between the two departments regardless of the fact that presently Lewis is managing both. While separation of the production feature might have been a desirable relocation for the marketing department, the truth that it would certainly mean putting a 3rd feature under Lewis's wing means this need to be prevented.

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

Marketing and advertising functions would certainly be combined.

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

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

Lewis will certainly divide herself from procedures.

A democratic management design with employee empowerment will be made use of in advertising department.

Open up door plan and also focus on cross department interaction will certainly be aimed at getting rid of dissonance.

Contingency plan.

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