Changing Channels Progressive Insurance Drive Insurance Case Study Help


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

Changing Channels Progressive Insurance Drive Insurance Case Study Help

Background and Facts

Changing Channels Progressive Insurance Drive Insurance an office materials seller for small as well as moderate sized businesses has actually lately been involved in planning for a merging with its rival House Deport, which has actually influenced effectiveness levels in departmentswith the senior manager associated with legal issues put forth by the federal Profession Commission. With the Marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the function in the near future. With challenges in the type of a potential social modification and reduced staff member spirits, the organization is in need of a full reengineering initiative at the advertising and marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The prospective social modification at the advertising division of Changing Channels Progressive Insurance Drive Insurance is boosting uncertainty in the working environment causing numerous difficulties for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing tactical choices because Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Profession Payment's treatment in the process. Offered the reality that the shop has an international presence with branches in UK, USA, Canada and also Germany, political factors in each of these nations might have the ability to influence efficiency or calculated objectives. Federal Trade Payment's antitrust match against the merging used up valuable time of the company's elderly management recommending that 'political' factors can have significant ramifications for a global organisation.

Economic Factors: Financial factors such as the development of small companies in the worldwide circumstance recommend that Changing Channels Progressive Insurance Drive Insurance is thriving in a setting where there is potential growth of services. In addition to this, truth that store clients are mainly searching for workplace materials for home offices suggests that the marketplace has a rising fad of business owners as well as home based organisations.

Social factors: Social patterns in the economy reveal that customers are trying to find benefit along with eye-catching costs. Market research shows how the customer for Changing Channels Progressive Insurance Drive Insurance lacks awareness concerning discovering services which can provide a mix of ease as well as inexpensive.

Technical factors: Modern technology plays a vital role in Changing Channels Progressive Insurance Drive Insurance's company strategy specifically as the company is piloting Innovation facilities which would use modern technology sales and support in the form of memory upgrades, peripheral setups. (Recap of PARASITE in appendix 2).

OB Issues and Effects.

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

Worries about social adjustment: There is apprehension regarding a social modification that would occur when Todd Krasnow leaves from his position as the Exec Vice President of Marketing with most of the staff members already revealing unhappiness over this possible relocation. This predicted adjustment has produced anxiety in the workplace which has been combined with the past stress and anxiety of preparing the company for a prospective merging with House Deport.
Pest Analysis
Demanding Job Atmosphere for Newcomers: There is lack of personnel that can match the difficult environment of a busy company. Not just does this lead to problem in finding the right individuals, it puts tension on new hires as can not hold up against the pace as well as pressure that the company expects them to bear.

Double Coverage Lines: Newcomers locate this business society troublesome and tough to cope with specifically as dotted line partnerships are indicated to be weak as a whole as well as objective setting as well as efficiency analysis is still done by the solid line supervisor. This indicates that newcomers can lose clarity concerning their corresponding roles and purposes specifically as dotted line reporting does not keep them in straight interaction with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had been hypothesized that the latter would take Krasnow's placement came as a blow to her morale. Lewis might have been qualified as well as appropriate for the job yet the fact that Kransnow's separation would make Coles a straight record to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Task Instability: Worry and instability can be recognized as two major concerns that Lewis would certainly be taking care of especially as the merging has actually currently be cancelled and two elderly execs of the marketing department would be leaving. The entire obligation of the department would be falling on Lewis's shoulders who would not simply supervise of brining regarding a cultural change but would also have to confirm herself in her new duty.

Incompatible Administration Style of Leader: Lewis's monitoring style and its incompatibility with the advertising department's role can likewise be seen as an OB difficulty specifically as she has been used to managing problems in the procedures division where personnel are educated to concentrate on processes and also obtain them right. The marketing division on the other hand can be seen as a team of people who are used to being nurtured by Krasnow who concentrated a lot more on outcome than procedures.

Interdepartmental Disputes: Interdepartmental disputes between three departments, advertising, merchandizing and also procedures specifically over the allowance of the advertising mix can be identified as another OB issue. Although the advertising division does not share the exact same vision as the other two divisions pertaining to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing as well as procedures departments do not concur over the marketing mix allotment among each other either.

Disintegration in Advertising And Marketing Department: Disintegration in between the marketing and advertising divisions can be identified as one more OB issue which might need more attention. The fact that the advertising and marketing sections in the marketing division are detached is stopping both departments from obtaining from each other's experience as well as knowledge. Combination of marketing with retailing and also procedures would come to be more difficult if the marketing department itself is disintegrated which can be an additional potential OB worry.

Changing Channels Progressive Insurance Drive Insurance Analysis

Various concepts have actually been used to explain the conditions to get further clearness regarding the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors think that juniors are easy and lazy, have little aspiration as well as withstand change. The scenario at Changing Channels Progressive Insurance Drive Insurance is not entirely following Theory X, it can be seen that new hires are finding this setting rather stressful which may eventually lead to a better inclination of the administration in the direction of Concept X. Also while evaluating Lewis's administration style, theory X may have been ideal in the procedures department to some level yet the Marketing department would certainly call for reliance on Concept Y in order to get the creative thinking as well as creativity from the groups.

Tuckman's Synergy Concept: As for Lewis's problem regarding bringing consistency in between the marketing and advertising department is worried, this would initially cause contrast as discussed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, throughout the initial phase of group advancement, people may not bond, as they are busy discovering their location in the group. By integrating the advertising and marketing department's work, there might be the same initial separate which could bring about the second stage of 'storming' where the teams challenge each other. It is only during the 3rd phase or 'norming' when they would certainly come with each other to share ideas prior to the team can bring about synergy in the 4th phase 'executing'.

When people are provided with modification, they go into phase one and also so there might be feelings like despair, unpredictability, frustration, anger, fear, denial and also disorientation.The scenario at the advertising and marketing department of Changing Channels Progressive Insurance Drive Insurance is comparable so Lewis can get comfy with the concept that it is not amazing actions. It is throughout this phase that Lewis will certainly have to provide support to the department so that they can find a feeling of direction. It can be seen exactly how Krasnow has actually already made this change easier by making Lewis obtain entailed in the division a year before his real departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has goes over the importance of 'protection needs as being a reduced degree requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel secure and out of risk' is at the second degree of needs. Prior to a staff member can be made to establish psychologically, he requires to have his 'Physiological 'and 'Safety' needs met.

SWOT Analysis for Changing Channels Progressive Insurance Drive Insurance Case Study

Implication of Analysis.

The OB analysis has taken a look at numerous concepts to understand just how to handle the current circumstance available. The complying with three options have actually been recommended to help Lewis deal with the organizational difficulties in the marketing department. Each of these choices has actually been suggested for easing the shift required to bring the advertising and marketing division in accordance with the needs of the marketplace and for making the social adjustment that would follow when the current leader leaves.

Integration of advertising and marketing functions. Dividing Adverting as well as Production functions. Assimilation of Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merger days has experience in business-to-business marketing along with firm as well as retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both advertising and advertising features.

The benefit of this approach is that it will certainly incorporate the two functions while reducing the requirement for employing an additional resource for marketing. In addition to this, Lewis would certainly be heading the marketing department as well as regardless her replacement would be required for the present role that she is doing. The drawback of this option is that exterior hiring may produce animosity from inner workers that may be considering the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Production: Offered the competitive stress and also top quality work needed from the advertising agency, it is suggested that Lewis ought to allow the production device to be a separate function from the advertising device. Since many ad agency had these two functions as separate devices, it makes even more sense to comply with the standard. Along with this, both functions might be able to focus on their core turns on more effectively. Nonetheless, the downside of this approach would certainly be that extra prices would certainly need to be borne for establishing separate production features. Along with this, a production head may need to be employed which might increase expenses for the organization.

Integration of Advertising with Operations: Given that Lewis is currently taking care of the marketing and also operations departments at the same time; it makes sense to integrate both features given that she has actually been successfully looking after both ends. The reality that the two departments currently have significant distinctions over allocation of resources recommends that this combination may have the ability to bring about consistency especially as Lewis would be heading both ends.However there are numerous drawbacks of this relocation particularly as it would put excessive burden over Lewis's shoulders. The reality that Lewis has to adjust her monitoring style for the advertising and marketing division recommends that these two departments would be culturally diverse. Along with this, Lewis may not have the ability to apply one type of leadership style to both divisions which might result in inefficiency in either among both features.


An assessment of the three options shows that combination of advertising and marketing and also operations would not be a feasible step as a result of the substantial differences between both divisions despite the fact that presently Lewis is managing both. While splitting up of the manufacturing function may have been a positive move for the advertising and marketing department, the fact that it would certainly indicate putting a 3rd function under Lewis's wing indicates this must be stayed clear of also. The combination of the marketing department is the very best option in regards to obtaining the optimum arise from the division. An activity plan for this alternative is discussed listed below.

Action Strategy.
Lewis will take control of the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

Production function will certainly continue to be component of advertising under advertising and marketing function.

Lewis will separate herself from procedures.

A democratic leadership design with staff member empowerment will certainly be used in advertising and marketing division.

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

Contingency plan.

If the integration does not work out as prepared, a contingency plan would certainly adhere to which would separate the production function from the marketing function to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing department without an SVP. Because case the production feature will absolutely be divided by positioning it under an SVP production.