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Dollar Thrifty Automotive Group Online Discounting Case Study Solution

CASE ANALYSIS

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Dollar Thrifty Automotive Group Online Discounting Case Study Solution

Background and Facts

Dollar Thrifty Automotive Group Online Discounting an office products seller for little as well as moderate sized organisations has actually recently been associated with preparing for a merger with its rival House Deport, which has actually influenced effectiveness levels in departmentswith the elderly supervisor involved in legal complications put forth by the government Trade Compensation. With the Advertising Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the function in the near future. With challenges in the type of a prospective social change and also reduced worker spirits, the company requires a complete reengineering initiative at the marketing department.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising department of Dollar Thrifty Automotive Group Online Discounting is increasing unpredictability in the working environment resulting in different obstacles for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting calculated decisions because Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Commission's intervention while doing so. Provided the fact that the store has an international existence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these nations might have the ability to affect efficiency or tactical goals. Federal Trade Compensation's antitrust suit against the merger took up useful time of the organization's senior monitoring suggesting that 'political' factors can have significant implications for an international company.

Economic Factors: Economic factors such as the emergence of local business in the international circumstance recommend that Dollar Thrifty Automotive Group Online Discounting is growing in a setting where there is potential development of companies. Truth that shop consumers are mostly looking for office materials for residence workplaces recommends that the market has a rising fad of entrepreneurs and also residence based businesses.

Social factors: Social fads in the economic situation show that consumers are searching for ease in addition to appealing prices. Marketing research shows how the consumer for Dollar Thrifty Automotive Group Online Discounting lacks understanding concerning locating remedies which can use a combination of convenience and also inexpensive.

Technological factors: Technology plays an essential role in Dollar Thrifty Automotive Group Online Discounting's service approach especially as the organization is piloting Modern technology facilities which would provide innovation sales and also assistance in the type of memory upgrades, outer installments. (Recap of BUG in appendix 2).

OB Issues and Manifestations.

Several underlying Business Actions concerns can be seen in Dollar Thrifty Automotive Group Online Discounting's case as highlighted in this area.

Concerns concerning cultural change: There is apprehension about a cultural modification that would take place as soon as Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising And Marketing with the majority of the team member currently revealing unhappiness over this prospective step. This expected adjustment has actually produced anxiety in the work environment which has actually been coupled with the previous anxiety of preparing the company for a potential merger with Home Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is shortage of personnel that can match the stressful setting of a busy organization. Not just does this bring about problem in discovering the appropriate individuals, it places tension on new hires as can not stand up to the pace and also pressure that the company expects them to birth.

Dual Coverage Lines: Beginners discover this business culture cumbersome and hard to manage especially as populated line partnerships are indicated to be weaker in general as well as unbiased setup and performance evaluation is still done by the solid line supervisor. This indicates that novices might lose clearness about their particular roles and goals especially as dotted line reporting does not keep them in direct interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles despite the fact that it had actually been speculated that the last would certainly take Krasnow's setting came as a strike to her spirits. Lewis might have been qualified and proper for the job but the truth that Kransnow's departure would make Coles a straight record to Lewis may have been the reason for Coles' resignation from solutions.

Fear & Task Instability: Anxiety and also instability can be recognized as 2 major problems that Lewis would certainly be dealing with specifically as the merger has currently be cancelled and two senior executives of the marketing division would be leaving. The whole obligation of the division would certainly be falling on Lewis's shoulders who would certainly not just be in charge of brining concerning a cultural adjustment however would certainly likewise have to prove herself in her new function.

Inappropriate Monitoring Style of Leader: Lewis's management style and its conflict with the advertising and marketing department's function can additionally be viewed as an OB obstacle particularly as she has actually been used to dealing with issues in the operations division where workers are taught to focus on procedures and also get them right. The marketing division on the other hand can be seen as a team of people that are made use of to being supported by Krasnow who focused extra on output than processes.

Interdepartmental Disputes: Interdepartmental differences in between 3 divisions, marketing, merchandizing as well as procedures specifically over the appropriation of the advertising mix can be recognized as an additional OB problem. Although the advertising division does not share the very same vision as the various other 2 departments pertaining to the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and operations departments do not agree over the advertising mix allotment amongst one another either.

Fragmentation in Advertising Department: Disintegration in between the marketing and advertising departments can be identified as another OB concern which can require further focus. The fact that the marketing and advertising sections in the marketing division are detached is protecting against both departments from getting from each other's experience and also expertise. Combination of advertising and marketing with retailing and also operations would certainly become harder if the advertising and marketing division itself is broken down which can be one more potential OB issue.

Dollar Thrifty Automotive Group Online Discounting Analysis

Different theories have been utilized to clarify the scenarios to get additional clearness concerning the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers think that subordinates are easy as well as careless, have little aspiration and resist adjustment. The tough variation of this concept stressed browbeating, tight controls, hazards and also penalties. With time it produces low efficiency, refined sabotage and also competition (Deal, 2003). Although the situation at Dollar Thrifty Automotive Group Online Discounting is not totally complying with Concept X, it can be seen that new hires are finding this setting instead difficult which might at some point bring about a higher disposition of the management in the direction of Concept X. Based on McGregor's supported view, which he called Theory Y, the necessary task of the monitoring is to organize organizational problems to make sure that people can achieve their own objectives best by guiding their efforts in the direction of organizational incentives. If individuals find no contentment in their work, the management would have little choice but to count on theory X and also exterior control (Offer, 2003). Also while assessing Lewis's administration design, concept X may have been suitable in the operations department to some extent yet the Advertising and marketing division would certainly need dependence on Concept Y to get the creativity and also originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's worry regarding bringing consistency in between the advertising and marketing department is worried, this would originally bring about contrast as discussed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, throughout the first phase of group advancement, people might not bond, as they are active finding their location in the group. By integrating the marketing and advertising department's work, there might coincide first separate which might result in the second stage of 'storming' where the groups test each other. Nonetheless, it is just during the 3rd stage or 'norming' when they would certainly collaborate to share concepts prior to the team can produce synergy in the fourth stage 'performing'.

When people are offered with adjustment, they get in stage one and so there might be feelings like unhappiness, unpredictability, disappointment, anger, anxiety, denial and also disorientation.The situation at the advertising and marketing department of Dollar Thrifty Automotive Group Online Discounting is similar so Lewis can obtain comfortable with the concept that it is not amazing behavior. It is during this phase that Lewis will have to give support to the department so that they can find a sense of instructions. It can be seen just how Krasnow has actually currently made this transition much easier by making Lewis obtain involved in the department a year prior to his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has goes over the value of 'protection requires as being a reduced degree requirement of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel protected and out of risk' is at the second degree of needs. Prior to an employee can be made to develop mentally, he needs to have his 'Physiological 'and also 'Safety' needs satisfied.

SWOT Analysis for Dollar Thrifty Automotive Group Online Discounting Case Study



Ramification of Analysis.

The OB analysis has actually taken a look at numerous theories to comprehend exactly how to deal with the present situation available. The adhering to 3 alternatives have been suggested to assist Lewis deal with the business challenges in the advertising and marketing division. Each of these alternatives has been suggested for reducing the shift required to bring the marketing department according to the requirements of the marketplace and for making the cultural adjustment that would certainly follow once the existing leader leaves.

Integration of marketing and advertising functions. Separating Adverting as well as Manufacturing features. Combination of Advertising with Procedures.

Examination of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merger days has expertise in business-to-business advertising along with agency as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both marketing and advertising and marketing features.

The advantage of this method is that it will certainly integrate the two functions while lowering the need for hiring an extra resource for advertising and marketing. In addition to this, Lewis would be heading the advertising and marketing division and also regardless her replacement would be needed for the current duty that she is doing. The negative aspect of this alternative is that outside hiring might bring about bitterness from interior workers who might be looking at the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Manufacturing: Provided the competitive pressures and excellent quality work called for from the advertising agency, it is recommended that Lewis needs to permit the manufacturing system to be a separate feature from the advertising and marketing system. Given that the majority of ad agency had these two functions as different units, it makes even more sense to comply with the norm. In addition to this, both functions might have the ability to concentrate on their core activates more efficiently. Nonetheless, the disadvantage of this technique would be that additional expenses would certainly need to be borne for setting up separate production features. A manufacturing head may have to be employed which can raise expenses for the company.

Integration of Advertising And Marketing with Procedures: Considering that Lewis is currently looking after the advertising and marketing and also operations departments all at once; it makes sense to integrate both functions considering that she has been efficiently taking care of both ends. The fact that both divisions currently have significant differences over appropriation of resources recommends that this integration might be able to produce harmony specifically as Lewis would certainly be heading both ends.However there are various negative aspects of this relocation particularly as it would place excessive concern over Lewis's shoulders. The reality that Lewis has to adjust her administration style for the advertising division suggests that these two divisions would be culturally diverse. Along with this, Lewis may not be able to apply one sort of leadership style to both departments which might cause inadequacy in either among both functions.

Referral.



An examination of the three options shows that assimilation of advertising and marketing and also operations would certainly not be a possible move due to the vast differences between the 2 divisions despite the fact that presently Lewis is handling both. While separation of the manufacturing feature might have been a favorable relocation for the marketing department, the reality that it would certainly indicate putting a third feature under Lewis's wing means this ought to be avoided.

Activity Plan.
Recommendation
Lewis will take control of the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

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

Lewis will certainly separate herself from procedures.

A democratic leadership design with employee empowerment will be made use of in marketing department.

Open up door plan as well as emphasis on cross department communication will be aimed at eliminating discord.

Backup plan.

If the combination does not exercise as prepared, a backup strategy would comply with which would certainly divide the manufacturing feature from the advertising feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising department without an SVP. Because case the manufacturing function will definitely be divided by putting it under an SVP manufacturing.