Astral Records Ltd North America Case Study Solution


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Astral Records Ltd North America Case Study Analysis

Background and Facts

Astral Records Ltd North America an office supplies seller for small and also medium sized companies has actually lately been involved in planning for a merging with its competitor Residence Deport, which has actually affected performance degrees in departmentswith the senior supervisor involved in lawful issues put forth by the government Trade Payment. With the Advertising and marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the future. With obstacles in the kind of a potential cultural modification as well as low employee morale, the company needs a complete reengineering initiative at the marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural change 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 replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting calculated choices considering that Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Trade Compensation's intervention at the same time. Given the reality that the shop has a global existence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries might be able to affect performance or strategic goals. Federal Trade Payment's antitrust match versus the merger took up useful time of the company's elderly management recommending that 'political' factors can have significant implications for an international organisation.

Economic Factors: Financial factors such as the emergence of local business in the global scenario recommend that Astral Records Ltd North America is thriving in a setting where there is prospective development of businesses. Reality that shop customers are mostly looking for office products for residence workplaces recommends that the market has a climbing fad of entrepreneurs as well as home based businesses.

Social factors: Social patterns in the economic situation reveal that clients are seeking comfort in addition to appealing costs. Market research shows how the customer for Astral Records Ltd North America lacks recognition regarding locating services which can provide a mix of convenience as well as inexpensive.

Technological factors: Technology plays an essential duty in Astral Records Ltd North America's company strategy particularly as the company is piloting Technology facilities which would offer modern technology sales and support in the type of memory upgrades, peripheral installations. (Summary of INSECT in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Organizational Behavior problems can be seen in Astral Records Ltd North America's case as highlighted in this section.

Apprehensions concerning cultural change: There is apprehension regarding a social change that would certainly occur as soon as Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with most of the staff members already revealing unhappiness over this possible relocation. This anticipated adjustment has produced tension in the workplace which has been paired with the previous stress of preparing the company for a possible merger with Home Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is scarcity of employees that can match the demanding atmosphere of a busy company. Not just does this result in problem in discovering the best people, it puts stress on new hires as can not withstand the rate and also stress that the company expects them to birth.

Twin Coverage Lines: Novices locate this business society difficult as well as difficult to deal with specifically as populated line relationships are indicated to be weaker generally and also objective setup and performance analysis is still done by the strong line manager. This means that beginners can lose clearness regarding their particular roles and also objectives specifically as dotted line coverage does not keep them in direct communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been guessed that the latter would take Krasnow's setting came as a strike to her morale. Lewis might have been capable as well as appropriate for the work but the fact that Kransnow's separation would make Coles a straight report to Lewis may have been the reason for Coles' resignation from services.

Fear & Work Insecurity: Fear and insecurity can be determined as 2 major issues that Lewis would certainly be handling particularly as the merger has currently be cancelled and also two senior executives of the marketing division would certainly be leaving. The entire responsibility of the department would be dropping on Lewis's shoulders who would certainly not just supervise of brining about a social change but would likewise need to confirm herself in her brand-new duty.

Incompatible Administration Design of Leader: Lewis's administration style and also its incompatibility with the marketing department's role can likewise be viewed as an OB difficulty especially as she has actually been used to handling concerns in the procedures department where personnel are shown to focus on processes and also get them right. The advertising and marketing division on the various other hand can be seen as a group of individuals that are utilized to being supported by Krasnow that focused much more on output than processes.

Interdepartmental Disputes: Interdepartmental differences between 3 divisions, advertising and marketing, merchandizing and also operations respectively over the allotment of the advertising mix can be recognized as one more OB issue. Although the advertising division does not share the exact same vision as the other 2 departments relating to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and procedures divisions do not concur over the advertising mix appropriation among one another either.

Fragmentation in Advertising And Marketing Department: Disintegration in between the marketing and advertising divisions can be identified as an additional OB issue which could need further interest. The fact that the advertising and marketing sections in the marketing division are disconnected is preventing both divisions from getting from each other's experience and also know-how. Assimilation of marketing with merchandising as well as procedures would end up being more difficult if the advertising and marketing division itself is degenerated which can be an additional prospective OB worry.

Astral Records Ltd North America Analysis

Various theories have actually been utilized to describe the situations to obtain further quality regarding the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that subordinates are easy and careless, have little passion and also resist change. The hard version of this concept emphasized coercion, tight controls, hazards and also punishments. In time it creates reduced performance, subtle sabotage and rivalry (Offer, 2003). Although the scenario at Astral Records Ltd North America is not completely complying with Theory X, it can be seen that new hires are discovering this atmosphere instead difficult which may eventually bring about a better inclination of the monitoring in the direction of Concept X. As per McGregor's supported sight, which he called Concept Y, the important job of the monitoring is to arrange organizational conditions to make sure that people can achieve their very own goals best by guiding their initiatives in the direction of organizational benefits. If people discover no contentment in their work, the administration would certainly have little option yet to rely upon concept X as well as external control (Offer, 2003). Even while examining Lewis's management design, theory X may have been suitable in the operations division to some extent but the Advertising department would certainly call for reliance on Concept Y in order to get the imagination and also originality from the teams.

Tuckman's Synergy Concept: As much as Lewis's worry about bringing consistency between the advertising and marketing and advertising and marketing division is worried, this would at first lead to clash as talked about by Bruce Tuckman in his 'Team effort Concept'. By incorporating the advertising and marketing and also advertising division's job, there might be the very same preliminary separate which could lead to the second phase of 'storming' where the teams challenge one another.

Bridges' Change Version: Based On William Bridge's theory (appendix 4), people are rather unpleasant with modification, which is noticeable by the scenario at Astral Records Ltd North America The situation can be seen as a typical program of life if is studied as per Bridge's concept where he discusses that people experience three phases of shift when they experience adjustment. 'Closing, losing as well as Letting go', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When people are presented with adjustment, they enter stage one and so there may be feelings like sadness, uncertainty, frustration, rage, fear, denial and disorientation.The circumstance at the marketing department of Astral Records Ltd North America is comparable so Lewis can get comfortable with the suggestion that it is not extraordinary behavior. In the second stage, there may be a need to link the void between the brand-new as well as old culture so Lewis might need to encounter this challenge once Krasnow leaves. There might be low spirits and also low productivity at this stage which need to not be taken as a setback. It is throughout this phase that Lewis will certainly need to offer assistance to the department to ensure that they can discover a sense of direction. It can be seen just how Krasnow has currently made this transition much easier by making Lewis obtain involved in the department a year prior to his real departure. As per Bridges' Version, stage 3 will bring about openness to knowing, High energy and also dedication as individuals will welcome the modification (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue pertaining to instability at the workplace has actually been triggered to start with by the modification in administration as well as secondly by the reality that the merging will no longer be launched. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has reviews the relevance of 'protection needs as being a reduced level need of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to feel secure and also safe' is at the 2nd level of needs. Prior to a staff member can be made to create mentally, he needs to have his 'Physical 'as well as 'Security' requires fulfilled. This indicates that unless the employees are made to feel protected concerning their present employment standing in Astral Records Ltd North America they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Astral Records Ltd North America Case Study

Effects of Analysis.

The OB analysis has looked at different concepts to recognize just how to handle the present situation at hand. The following 3 choices have been proposed to assist Lewis handle the business challenges in the marketing department. Each of these choices has actually been recommended for relieving the transition needed to bring the advertising and marketing department in accordance with the requirements of the marketplace and also for making the cultural modification that would follow when the current leader leaves.

Combination of advertising and marketing features. Dividing Adverting and Production functions. Combination of Advertising with Operations.

Analysis of Alternatives.

Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merging days has know-how in business-to-business advertising along with firm and retail advertising experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to handle both marketing and also marketing functions.

The benefit of this method is that it will integrate both features while minimizing the requirement for hiring an additional resource for advertising. Lewis would certainly be heading the advertising department as well as in any case her replacement would certainly be needed for the present duty that she is doing. The negative aspect of this choice is that outside hiring may produce animosity from inner personnel who might be eying the setting of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and Manufacturing: Provided the affordable stress and high top quality job called for from the marketing agency, it is recommended that Lewis must enable the production device to be a separate function from the marketing system. Because most advertising firms had these two functions as different systems, it makes even more feeling to comply with the standard.

Combination of Advertising And Marketing with Workflows: Since Lewis is currently taking care of the marketing and procedures divisions all at once; it makes good sense to integrate both functions given that she has been effectively taking care of both ends. The truth that both departments currently have major differences over allowance of resources recommends that this combination may be able to cause consistency specifically as Lewis would certainly be heading both ends.However there are different downsides of this move particularly as it would place way too much concern over Lewis's shoulders. The fact that Lewis needs to adapt her administration style for the marketing department suggests that these 2 divisions would certainly be culturally diverse. Lewis might not be able to use one kind of management design to both divisions which could result in inefficiency in either one of the two functions.


An assessment of the 3 options shows that combination of marketing and also operations would not be a practical move because of the huge differences in between both departments despite the fact that presently Lewis is managing both. While splitting up of the production feature might have been a favorable step for the marketing department, the reality that it would mean putting a third feature under Lewis's wing indicates this should be avoided. The integration of the advertising and marketing department is the most effective choice in regards to obtaining the optimum arise from the division. An activity prepare for this choice is talked about listed below.

Activity Strategy.
Lewis will take control of the function of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Manufacturing function will certainly remain part of advertising under marketing feature.

Lewis will divide herself from operations.

A democratic leadership style with worker empowerment will be used in advertising division.

Open door plan and emphasis on cross departmental communication will certainly be focused on removing dissonance.

Backup plan.

If the combination does not work out as planned, a contingency plan would certainly adhere to which would certainly divide the manufacturing feature from the advertising function to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the marketing department without an SVP. Because case the manufacturing function will absolutely be separated by placing it under an SVP manufacturing.