Changing Channels Progressive Insurance Drive Insurance Case Study Analysis


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Changing Channels Progressive Insurance Drive Insurance Case Study Solution

Background and Facts

Changing Channels Progressive Insurance Drive Insurance an office supplies merchant for little as well as moderate sized companies has actually just recently been involved in preparing for a merger with its rival Home Deport, which has affected performance levels in departmentswith the senior manager associated with legal issues presented by the government Trade Compensation. With the Marketing Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the role in the future. With challenges in the form of a possible social change and also low employee morale, the organization is in need of a complete reengineering initiative at the advertising and marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective social modification at the marketing department of Changing Channels Progressive Insurance Drive Insurance is raising uncertainty in the working environment causing various challenges for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting strategic decisions because Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Profession Compensation's treatment at the same time. Given the truth that the shop has an international presence with branches in UK, U.S.A., Canada and Germany, political consider each of these countries may have the ability to influence performance or strategic goals. Federal Trade Commission's antitrust suit against the merging took up useful time of the company's senior monitoring recommending that 'political' factors can have significant effects for a worldwide business.

Economic Factors: Financial factors such as the appearance of small companies in the worldwide situation suggest that Changing Channels Progressive Insurance Drive Insurance is prospering in an atmosphere where there is prospective development of businesses. Fact that shop customers are mainly looking for office supplies for residence offices suggests that the market has an increasing fad of entrepreneurs and home based businesses.

Social factors: Social patterns in the economic climate show that customers are searching for comfort along with attractive rates. Marketing research shows how the client for Changing Channels Progressive Insurance Drive Insurance does not have awareness about locating services which can use a combination of comfort and affordable.

Technological factors: Modern technology plays a crucial role in Changing Channels Progressive Insurance Drive Insurance's company strategy particularly as the company is piloting Modern technology centers which would provide modern technology sales and assistance in the form of memory upgrades, outer installments. (Recap of PARASITE in appendix 2).

OB Issues and also Manifestations.

A number of underlying Business Actions problems can be seen in Changing Channels Progressive Insurance Drive Insurance's case as highlighted in this area.

Concerns regarding cultural change: There is worry concerning a social adjustment that would certainly take place as soon as Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with most of the personnel already showing discontent over this potential action. This predicted change has developed stress and anxiety in the workplace which has been combined with the past tension of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is shortage of personnel that can match the difficult atmosphere of a fast-paced organization. Not only does this bring about difficulty in locating the ideal people, it places anxiety on brand-new hires as can not stand up to the pace and stress that the company expects them to bear.

Dual Coverage Lines: Beginners find this business society difficult and difficult to handle particularly as dotted line relationships are suggested to be weak as a whole as well as unbiased setup and also performance assessment is still done by the solid line manager. This implies that beginners could shed clearness regarding their corresponding duties and also objectives especially as populated line coverage does not maintain them in straight interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had been guessed that the last would certainly take Krasnow's position came as an impact to her spirits. Lewis may have been qualified and ideal for the job yet the truth that Kransnow's departure would make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Concern & Task Instability: Anxiety and also insecurity can be recognized as 2 significant concerns that Lewis would be managing particularly as the merging has now be cancelled and also two elderly execs of the marketing division would certainly be leaving. The entire responsibility of the department would be falling on Lewis's shoulders who would certainly not simply supervise of brining about a cultural modification but would certainly also have to confirm herself in her brand-new duty.

Incompatible Management Style of Leader: Lewis's monitoring style as well as its incompatibility with the marketing department's role can likewise be seen as an OB challenge especially as she has been made use of to managing concerns in the operations department where employees are instructed to concentrate on processes as well as obtain them. The marketing department on the various other hand can be seen as a group of people that are used to being nurtured by Krasnow that concentrated more on outcome than processes.

Interdepartmental Arguments: Interdepartmental differences between three departments, marketing, merchandizing as well as procedures specifically over the allowance of the marketing mix can be determined as one more OB worry. Although the advertising division does not share the very same vision as the various other two departments regarding the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing as well as procedures departments do not agree over the marketing mix allocation among each other either.

Disintegration in Marketing Division: Fragmentation in between the marketing and advertising departments can be recognized as another OB problem which might need further focus. The fact that the marketing and advertising sections in the marketing division are detached is preventing both departments from getting from each various other's experience as well as proficiency. Assimilation of marketing with retailing as well as procedures would become harder if the advertising department itself is broken down which can be one more potential OB problem.

Changing Channels Progressive Insurance Drive Insurance Analysis

Various theories have actually been made use of to clarify the scenarios to obtain more clearness regarding the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers think that staffs are easy and careless, have little passion and withstand modification. The hard version of this theory highlighted browbeating, limited controls, threats as well as punishments. Gradually it generates low productivity, subtle sabotage and competition (Deal, 2003). The circumstance at Changing Channels Progressive Insurance Drive Insurance is not entirely following Concept X, it can be seen that brand-new hires are finding this environment rather difficult which may eventually lead to a greater disposition of the monitoring in the direction of Concept X. According to McGregor's supported sight, which he called Theory Y, the crucial task of the management is to set up organizational conditions to make sure that people can accomplish their own objectives best by routing their efforts in the direction of organizational rewards. If individuals locate no satisfaction in their job, the monitoring would certainly have little selection however to rely upon concept X and exterior control (Bargain, 2003). Even while analyzing Lewis's management style, concept X might have appropriated in the operations division to some extent but the Advertising and marketing department would certainly require reliance on Theory Y to get the creativity as well as originality from the groups.

Tuckman's Synergy Concept: As far as Lewis's worry regarding bringing harmony between the marketing and advertising division is concerned, this would initially result in clash as discussed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's theory displayed in appendix 3, during the preliminary phase of team advancement, individuals may not bond, as they are active locating their location in the group. By combining the advertising and marketing department's work, there might coincide initial separate which might result in the second phase of 'storming' where the groups challenge each other. It is just throughout the third phase or 'norming' when they would certainly come together to share concepts before the group can bring about harmony in the fourth stage 'carrying out'.

When individuals are presented with change, they get in phase one and also so there might be feelings like unhappiness, uncertainty, disappointment, anger, concern, rejection as well as disorientation.The scenario at the advertising and marketing department of Changing Channels Progressive Insurance Drive Insurance is similar so Lewis can obtain comfortable with the idea that it is not remarkable actions. It is throughout this stage that Lewis will certainly have to provide guidance to the division so that they can discover a sense of instructions. It can be seen how Krasnow has currently made this transition easier by making Lewis get involved in the department a year before his real separation.
Vrio Analysis
Maslow's Requirement power structure: The OB issue related to instability at the work environment has actually been triggered firstly by the change in monitoring and also secondly by the reality that the merger will no longer be started. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has talks about the relevance of 'safety and security requires as being a lower degree need of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel secure and also untouched' is at the second level of needs. Before a worker can be made to establish emotionally, he requires to have his 'Physical 'as well as 'Security' requires met. This shows that unless the workers are made to feel safe and secure regarding their existing work condition in Changing Channels Progressive Insurance Drive Insurance they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Changing Channels Progressive Insurance Drive Insurance Case Study

Implication of Analysis.

The OB analysis has checked out different theories to understand exactly how to cope with the present situation at hand. The complying with 3 alternatives have been proposed to aid Lewis take care of the business difficulties in the advertising division. Each of these options has been recommended for reducing the change needed to bring the advertising division in accordance with the demands of the market as well as for making the social modification that would certainly follow once the present leader leaves.

Combination of advertising and marketing functions. Dividing Adverting and also Manufacturing features. Assimilation of Marketing with Workflow.

Assessment of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis during the earlier merger days has expertise in business-to-business advertising and marketing along with company and retail marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both advertising and also advertising functions.

The advantage of this method is that it will certainly integrate both features while minimizing the demand for hiring an added resource for advertising. Lewis would certainly be heading the advertising and marketing department and in any type of case her replacement would be needed for the existing duty that she is performing. The drawback of this alternative is that exterior hiring might produce animosity from internal employees who might be eying the setting of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Production: Provided the affordable pressures as well as excellent quality work called for from the advertising agency, it is suggested that Lewis needs to permit the manufacturing unit to be a different feature from the advertising system. Since a lot of advertising agencies had these two features as different devices, it makes more feeling to comply with the norm. Both functions might be able to concentrate on their core activates more effectively. However, the downside of this method would certainly be that extra prices would certainly need to be birthed for setting up separate manufacturing functions. A production head might have to be employed which might enhance expenses for the company.

Assimilation of Advertising with Workflows: Since Lewis is already taking treatment of the advertising and also operations divisions simultaneously; it makes sense to incorporate the 2 functions given that she has been effectively taking care of both ends. The truth that Lewis has to adapt her administration style for the marketing department recommends that these two departments would certainly be culturally varied.


An examination of the 3 choices indicates that assimilation of advertising and marketing and also procedures would certainly not be a practical action as a result of the large distinctions between the two divisions despite the fact that presently Lewis is handling both. While splitting up of the manufacturing feature might have been a favorable relocation for the marketing department, the truth that it would indicate positioning a third function under Lewis's wing indicates this need to be prevented. The assimilation of the advertising and marketing division is the very best option in terms of obtaining the optimal results from the division. An action prepare for this alternative is discussed below.

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

Marketing and advertising features would be combined.

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

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

Lewis will certainly divide herself from procedures.

An autonomous leadership style with employee empowerment will certainly be made use of in advertising department.

Open up door policy as well as emphasis on cross departmental communication will certainly be aimed at eliminating dissonance.

Backup strategy.

If the integration does not work out as prepared, a backup strategy would follow which would divide the production feature from the marketing function to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the marketing department without an SVP. In that case the manufacturing function will definitely be divided by positioning it under an SVP manufacturing.