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Astral Records Ltd North America Case Study Analysis

Background and Facts

Astral Records Ltd North America a workplace products store for tiny and moderate sized services has lately been involved in preparing for a merger with its competitor House Deport, which has actually affected efficiency degrees in departmentswith the senior supervisor involved in lawful difficulties presented by the government Trade Compensation. With the Advertising Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the duty in the future. With difficulties in the form of a potential social adjustment and also reduced employee spirits, the organization wants a full reengineering initiative at the marketing department.

Trouble Declaration

The prospective cultural adjustment at the advertising and marketing division of Astral Records Ltd North America is enhancing uncertainty in the working environment causing different difficulties for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting tactical choices given that Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Profession Payment's treatment in the process. Offered the fact that the store has a global existence with branches in UK, USA, Canada and Germany, political factors in each of these countries may be able to affect efficiency or tactical goals. Federal Profession Payment's antitrust suit versus the merging used up beneficial time of the company's elderly management suggesting that 'political' factors can have major implications for an international organisation.

Economic Factors: Economic factors such as the introduction of small businesses in the global situation recommend that Astral Records Ltd North America is growing in an atmosphere where there is possible development of companies. Reality that shop clients are mainly looking for workplace supplies for residence workplaces suggests that the market has a climbing fad of business owners and also house based services.

Social factors: Social fads in the economic climate reveal that consumers are searching for ease along with appealing prices. Market research shows how the consumer for Astral Records Ltd North America lacks awareness about discovering options which can use a mix of convenience and low costs.

Technological factors: Modern technology plays a vital function in Astral Records Ltd North America's company approach specifically as the company is piloting Technology facilities which would offer technology sales as well as assistance in the kind of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Business Actions issues can be seen in Astral Records Ltd North America's case as highlighted in this section.

Worries about cultural modification: There is concern regarding a cultural adjustment that would occur when Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with the majority of the staff members already revealing discontent over this potential action. This anticipated modification has developed tension in the work environment which has been coupled with the previous stress of preparing the company for a potential merging with House Deport.

Demanding Task Setting for Newcomers: There is shortage of personnel that can match the stressful atmosphere of a fast-paced organization. Not just does this lead to problem in discovering the best people, it puts tension on brand-new hires as can not stand up to the pace and also pressure that the organization anticipates them to birth.

Dual Reporting Lines: Newcomers find this organizational culture troublesome and also challenging to manage especially as populated line partnerships are suggested to be weak as a whole and unbiased setup and also efficiency evaluation is still done by the strong line manager. This means that newbies can shed clearness concerning their particular roles and also objectives particularly as dotted line coverage does not maintain them in straight interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles although it had actually been hypothesized that the last would certainly take Krasnow's placement came as a blow to her spirits. Lewis may have been capable and ideal for the task yet the reality that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Job Insecurity: Fear and also instability can be recognized as two significant concerns that Lewis would certainly be taking care of particularly as the merger has actually currently be cancelled as well as two senior execs of the advertising and marketing division would certainly be leaving. The whole responsibility of the division would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining about a social adjustment but would certainly likewise have to show herself in her new duty.

Inappropriate Monitoring Design of Leader: Lewis's administration style as well as its conflict with the advertising department's function can also be seen as an OB challenge particularly as she has been made use of to taking care of problems in the procedures department where employees are instructed to concentrate on processes and get them right. The advertising and marketing division on the various other hand can be seen as a team of people who are utilized to being supported by Krasnow who concentrated much more on result than processes.

Interdepartmental Differences: Interdepartmental disputes between three divisions, marketing, merchandizing and also procedures specifically over the appropriation of the advertising mix can be determined as another OB problem. Although the advertising and marketing department does not share the very same vision as the other two departments relating to the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and operations departments do not concur over the marketing mix allotment amongst one another either.

Fragmentation in Marketing Division: Disintegration between the advertising and marketing divisions can be recognized as one more OB concern which can need more attention. The fact that the advertising and marketing sections in the advertising and marketing department are detached is stopping both departments from gaining from each various other's experience and also know-how. Assimilation of advertising and marketing with retailing and procedures would come to be more difficult if the advertising and marketing division itself is disintegrated which can be another possible OB worry.

Astral Records Ltd North America Analysis

Different concepts have actually been used to discuss the situations to get additional quality concerning the scenario available.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers think that staffs are passive as well as careless, have little ambition and also withstand change. The scenario at Astral Records Ltd North America is not entirely following Concept X, it can be seen that brand-new hires are discovering this atmosphere rather demanding which may eventually lead to a greater disposition of the management towards Concept X. Even while assessing Lewis's administration design, theory X might have been appropriate in the procedures division to some level but the Advertising and marketing division would certainly require reliance on Theory Y in order to get the imagination as well as originality from the groups.

Tuckman's Team effort Concept: Regarding Lewis's issue concerning bringing harmony between the marketing and advertising department is concerned, this would originally bring about contrast as talked about by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, throughout the initial stage of team growth, individuals may not bond, as they are active locating their area in the group. By incorporating the advertising and marketing department's work, there may be the same first detach which could lead to the 2nd phase of 'storming' where the groups test one another. Nevertheless, it is only during the 3rd stage or 'norming' when they would come together to share concepts before the group can cause harmony in the fourth phase 'doing'.

When individuals are provided with adjustment, they go into phase one and so there may be feelings like despair, uncertainty, aggravation, temper, concern, rejection and disorientation.The circumstance at the advertising and marketing department of Astral Records Ltd North America is comparable so Lewis can get comfy with the idea that it is not remarkable actions. It is throughout this stage that Lewis will have to offer assistance to the division so that they can discover a sense of instructions. It can be seen how Krasnow has actually already made this transition simpler by making Lewis get involved in the department a year prior to his actual departure.

Maslow's Need hierarchy: The OB issue pertaining to instability at the work environment has been set off to start with by the modification in management and secondly by the truth that the merger will certainly no longer be initiated. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has talks about the value of 'protection needs as being a lower level requirement of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel protected and out of danger' is at the second degree of needs. Prior to an employee can be made to develop psychologically, he needs to have his 'Physiological 'and 'Security' needs satisfied. This indicates that unless the workers are made to feel safe regarding their present employment condition in Astral Records Ltd North America they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Astral Records Ltd North America Case Study

Implication of Analysis.

The OB analysis has actually checked out various concepts to comprehend just how to cope with the existing situation at hand. The following 3 alternatives have actually been proposed to assist Lewis deal with the organizational challenges in the advertising department. Each of these choices has been proposed for easing the shift required to bring the marketing department in line with the demands of the marketplace and also for making the cultural modification that would adhere to when the present leader leaves.

Integration of marketing and advertising features. Dividing Adverting as well as Production features. Combination of Advertising with Workflow.

Assessment of Alternatives.

Integration of Advertising And Marketing & Advertising Functions: The internal advertising agency of Astral Records Ltd North America is currently toughness for the organization in regards to saving up on overheads connected to advertising as well as promo. Considering that no brand-new recruitment has actually been done after Bridget Cole's departure with the coverage line being straight designated to Krasnow for the advertising and marketing feature, this is a beneficial chance for integrating the marketing and advertising functions. Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merger days has expertise in business-to-business advertising and marketing together with firm and also retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both advertising and marketing functions.

The advantage of this approach is that it will incorporate the two features while reducing the need for hiring an added resource for marketing. Along with this, Lewis would be heading the marketing division as well as in any case her substitute would certainly be required for the current function that she is executing. The negative aspect of this choice is that outside hiring might produce animosity from inner workers that might be considering the position of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting as well as Production: Given the competitive stress as well as high quality work called for from the advertising and marketing agency, it is advised that Lewis must enable the production system to be a separate feature from the advertising system. Given that the majority of marketing firms had these 2 functions as different units, it makes more sense to adhere to the norm.

Assimilation of Advertising And Marketing with Operations: Given that Lewis is already dealing with the advertising and procedures departments simultaneously; it makes good sense to incorporate the two features considering that she has been efficiently looking after both ends. The fact that the two divisions currently have major distinctions over appropriation of resources recommends that this combination might have the ability to produce harmony specifically as Lewis would certainly be heading both ends.However there are different disadvantages of this move especially as it would certainly put excessive concern over Lewis's shoulders. The reality that Lewis needs to adjust her monitoring style for the advertising division suggests that these two departments would be culturally varied. Lewis might not be able to use one type of leadership style to both divisions which might result in inadequacy in either one of the 2 functions.


An analysis of the three options suggests that combination of advertising and also operations would certainly not be a viable step due to the substantial differences between the 2 divisions despite the truth that presently Lewis is taking care of both. While splitting up of the production feature might have been a desirable move for the marketing division, the fact that it would certainly indicate positioning a third feature under Lewis's wing indicates this ought to be stayed clear of.

Activity Strategy.

Lewis will certainly take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

Production feature will certainly remain part of advertising and marketing under marketing feature.

Lewis will certainly divide herself from operations.

A democratic management style with worker empowerment will certainly be made use of in marketing department.

Open up door plan and emphasis on cross departmental communication will be aimed at removing disharmony.

Contingency strategy.

If the combination does not exercise as planned, a backup plan would adhere to which would divide the manufacturing feature from the advertising and marketing feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the marketing department without an SVP. In that case the production function will definitely be separated by placing it under an SVP production.