Menu

Changing Channels Progressive Insurance Drive Insurance Case Study Analysis

CASE STUDY

Home >> Ivey >> Changing Channels Progressive Insurance Drive Insurance >>

Changing Channels Progressive Insurance Drive Insurance Case Study Analysis

Background and Facts

Changing Channels Progressive Insurance Drive Insurance a workplace products retailer for small and moderate sized companies has actually recently been involved in preparing for a merging with its rival Home Deport, which has affected performance degrees in departmentswith the senior manager associated with legal difficulties put forth by the federal Trade Payment. With the Advertising and marketing Head advancing the news of his separation from the company in one year, Jeannie Lewis, the present head of operations has actually been asked to take the role in the future. With difficulties in the type of a prospective cultural modification as well as low worker spirits, the organization needs a complete reengineering initiative at the advertising and marketing department.

Trouble Statement

The prospective cultural adjustment at the advertising department of Changing Channels Progressive Insurance Drive Insurance is raising unpredictability in the workplace resulting in 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 calculated choices given that Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Profession Compensation's treatment at the same time. Provided the reality that the store has an international visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries might have the ability to affect performance or critical goals. Federal Profession Commission's antitrust suit against the merger used up valuable time of the organization's elderly monitoring recommending that 'political' factors can have significant implications for an international business.

Economic Factors: Economic factors such as the introduction of small companies in the worldwide scenario recommend that Changing Channels Progressive Insurance Drive Insurance is prospering in a setting where there is prospective development of companies. Along with this, reality that store clients are mainly looking for workplace products for home offices recommends that the marketplace has an increasing trend of entrepreneurs and also online organisations.

Social factors: Social fads in the economy show that consumers are seeking benefit along with eye-catching rates. Market research demonstrates how the client for Changing Channels Progressive Insurance Drive Insurance lacks awareness regarding finding services which can use a combination of comfort as well as affordable.

Technological factors: Technology plays a vital function in Changing Channels Progressive Insurance Drive Insurance's organisation approach especially as the company is piloting Innovation facilities which would certainly supply modern technology sales as well as support in the form of memory upgrades, outer installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Manifestations.

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

Worries regarding social change: There is apprehension regarding a cultural adjustment that would certainly take place when Todd Krasnow leaves from his position as the Executive Vice President of Advertising with most of the employee already revealing discontent over this possible move. This expected modification has produced stress in the office which has actually been combined with the previous stress and anxiety of preparing the company for a prospective merger with House Deport.

Demanding Work Atmosphere for Newcomers: There is shortage of personnel that can match the demanding atmosphere of a hectic organization. Not just does this cause difficulty in locating the appropriate people, it puts anxiety on brand-new hires as can not hold up against the speed and stress that the company expects them to bear.

Dual Coverage Lines: Novices locate this organizational culture troublesome and difficult to manage especially as populated line relationships are indicated to be weaker as a whole as well as unbiased setup and also performance analysis is still done by the solid line supervisor. This suggests that novices could lose clearness concerning their corresponding duties and goals particularly as populated line coverage does not keep them in direct communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles although it had actually been speculated that the last would take Krasnow's position came as a strike to her morale. Lewis might have been qualified and also ideal for the work but the truth that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Job Insecurity: Fear and insecurity can be identified as two significant concerns that Lewis would certainly be dealing with especially as the merging has now be terminated as well as 2 elderly executives of the advertising and marketing department would certainly be leaving. The whole duty of the department would certainly be falling on Lewis's shoulders who would certainly not simply be in charge of brining regarding a cultural adjustment but would certainly additionally have to prove herself in her brand-new role.

Inappropriate Monitoring Design of Leader: Lewis's administration design as well as its conflict with the marketing department's function can also be viewed as an OB difficulty especially as she has been used to managing problems in the operations department where personnel are taught to focus on processes and also obtain them right. The advertising division on the various other hand can be viewed as a group of individuals that are used to being supported by Krasnow that concentrated a lot more on result than procedures.

Interdepartmental Disagreements: Interdepartmental differences in between 3 divisions, advertising and marketing, merchandizing as well as operations respectively over the allowance of the advertising and marketing mix can be recognized as one more OB concern. The advertising division does not share the very same vision as the other two departments regarding the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and operations departments do not concur over the marketing mix allotment amongst one an additional either.

Disintegration in Advertising Department: Disintegration in between the marketing and advertising divisions can be recognized as an additional OB problem which could require additional focus. The reality that the marketing and advertising areas in the advertising and marketing department are disconnected is stopping both divisions from obtaining from each other's experience and know-how. Combination of marketing with retailing and procedures would certainly come to be harder if the marketing department itself is broken down which can be another possible OB problem.

Changing Channels Progressive Insurance Drive Insurance Analysis

Numerous concepts have been made use of to explain the circumstances to obtain further quality concerning the circumstance at hand.

McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers think that juniors are passive and careless, have little ambition as well as stand up to change. The scenario at Changing Channels Progressive Insurance Drive Insurance is not totally following Theory X, it can be seen that brand-new hires are finding this setting rather difficult which may at some point lead to a better disposition of the administration in the direction of Theory X. Also while analyzing Lewis's management style, concept X might have been ideal in the operations division to some level however the Advertising and marketing department would certainly call for dependence on Concept Y in order to get the imagination and creativity from the teams.

Tuckman's Team effort Theory: As for Lewis's problem concerning bringing harmony between the advertising and marketing department is concerned, this would originally bring about conflict as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). As per Tuckman's theory displayed in appendix 3, during the first stage of team development, individuals might not bond, as they are active locating their area in the group. By integrating the marketing and advertising division's job, there might coincide first detach which can bring about the second phase of 'storming' where the teams challenge one another. Nevertheless, it is only during the third phase or 'norming' when they would come together to share concepts prior to the group can bring about synergy in the 4th phase 'doing'.

When people are provided with change, they go into phase one as well as so there might be emotions like sadness, unpredictability, irritation, temper, concern, rejection as well as disorientation.The scenario at the advertising division of Changing Channels Progressive Insurance Drive Insurance is similar so Lewis can get comfortable with the idea that it is not amazing actions. It is throughout this stage that Lewis will have to provide support to the division so that they can find a feeling of instructions. It can be seen just how Krasnow has currently made this shift simpler by making Lewis obtain entailed in the division a year before his actual separation.

Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has talks about the significance of 'protection requires as being a lower degree requirement of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel safe and secure and out of danger' is at the second level of requirements. Before an employee can be made to develop mentally, he needs to have his 'Physical 'and also 'Safety and security' requires satisfied.

SWOT Analysis for Changing Channels Progressive Insurance Drive Insurance Case Study



Implication of Analysis.

The OB analysis has checked out various concepts to recognize just how to deal with the existing scenario at hand. The following three choices have been suggested to aid Lewis handle the business obstacles in the marketing division. Each of these choices has been proposed for easing the change needed to bring the advertising division according to the demands of the market as well as for making the social adjustment that would certainly comply with when the present leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting and also Manufacturing features. Assimilation of Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merging days has proficiency in business-to-business advertising along with company and retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both marketing as well as advertising and marketing features.

The advantage of this method is that it will integrate both features while reducing the requirement for working with an additional source for advertising and marketing. Lewis would certainly be heading the marketing department and also in any type of case her replacement would be required for the current function that she is doing. The downside of this alternative is that outside hiring may cause resentment from internal employees who may be considering the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Manufacturing: Offered the affordable stress and also premium quality work needed from the advertising agency, it is recommended that Lewis needs to enable the manufacturing unit to be a different function from the advertising and marketing device. Because the majority of ad agency had these 2 functions as different systems, it makes more sense to comply with the norm. Both features may be able to focus on their core activates extra successfully. Nevertheless, the negative aspect of this method would be that extra expenses would certainly have to be birthed for establishing different manufacturing features. A production head might have to be hired which might boost overheads for the organization.

Integration of Advertising And Marketing with Operations: Given that Lewis is already looking after the marketing and also operations departments simultaneously; it makes sense to integrate the two functions considering that she has actually been effectively dealing with both ends. The reality that the two divisions already have major distinctions over allocation of resources recommends that this integration might have the ability to bring about consistency particularly as Lewis would certainly be heading both ends.However there are numerous negative aspects of this step especially as it would put excessive worry over Lewis's shoulders. The truth that Lewis needs to adapt her administration design for the advertising department suggests that these 2 divisions would be culturally varied. Along with this, Lewis might not have the ability to apply one sort of management style to both divisions which could result in inefficiency in either one of the two features.

Suggestion.



An evaluation of the 3 alternatives indicates that assimilation of advertising and marketing and operations would certainly not be a practical action because of the vast differences in between both departments despite the fact that currently Lewis is managing both. While separation of the production feature might have been a desirable step for the advertising and marketing division, the fact that it would imply putting a third function under Lewis's wing suggests this should be avoided. The combination of the marketing department is the very best alternative in regards to obtaining the optimal results from the division. An activity prepare for this choice is talked about listed below.

Activity Plan.

Lewis will certainly take over the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Production feature will remain component of advertising and marketing under advertising feature.

Lewis will certainly divide herself from procedures.

A democratic leadership style with employee empowerment will be made use of in advertising and marketing division.

Open up door plan and also focus on cross department interaction will be aimed at removing dissonance.

Contingency plan.

If the integration does not work out as intended, a contingency strategy would comply with which would separate the production function from the advertising and marketing function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the manufacturing function will definitely be divided by putting it under an SVP production.