Liberal Government Of Ontarios Eco Tax Fiasco Case Study Solution


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Liberal Government Of Ontarios Eco Tax Fiasco Case Study Analysis

Background and Facts

Liberal Government Of Ontarios Eco Tax Fiasco an office materials retailer for tiny as well as average sized companies has lately been associated with preparing for a merger with its rival House Deport, which has actually affected performance levels in departmentswith the elderly manager associated with lawful problems presented by the government Profession Payment. With the Advertising and marketing Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the current head of operations has actually been asked to take the role in the near future. With difficulties in the form of a possible social adjustment and also reduced worker spirits, the company wants a total reengineering initiative at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The prospective social modification at the advertising and marketing department of Liberal Government Of Ontarios Eco Tax Fiasco is boosting uncertainty in the workplace leading to numerous obstacles 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 major duty in influencing critical decisions given that Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Trade Payment's treatment at the same time. Given the fact that the store has an international presence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries may have the ability to influence efficiency or strategic goals. Federal Profession Commission's antitrust fit versus the merging occupied important time of the company's senior management suggesting that 'political' factors can have severe implications for an international service.

Economic Factors: Economic factors such as the emergence of small companies in the global situation recommend that Liberal Government Of Ontarios Eco Tax Fiasco is growing in an environment where there is potential development of businesses. Truth that store consumers are primarily looking for workplace supplies for residence offices recommends that the market has a climbing pattern of business owners and home based organisations.

Social factors: Social patterns in the economic situation show that customers are looking for benefit along with attractive costs. Marketing research demonstrates how the consumer for Liberal Government Of Ontarios Eco Tax Fiasco lacks understanding regarding finding options which can offer a mix of convenience and also affordable.

Technical factors: Innovation plays an important duty in Liberal Government Of Ontarios Eco Tax Fiasco's business method particularly as the organization is piloting Technology facilities which would certainly offer modern technology sales and assistance in the type of memory upgrades, peripheral setups. (Recap of PARASITE in appendix 2).

OB Issues and also Effects.

Several underlying Organizational Actions problems can be seen in Liberal Government Of Ontarios Eco Tax Fiasco's case as highlighted in this area.

Apprehensions about social change: There is worry concerning a cultural change that would certainly occur once Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising And Marketing with a lot of the personnel currently showing discontent over this possible action. This predicted adjustment has developed anxiety in the workplace which has been paired with the past tension of preparing the company for a potential merging with Residence Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is shortage of workers that can match the demanding atmosphere of a fast-paced company. Not only does this cause problem in discovering the ideal individuals, it puts stress on new hires as can not stand up to the pace and also pressure that the organization anticipates them to birth.

Double Reporting Lines: Newbies find this organizational culture difficult and also tough to deal with specifically as populated line relationships are indicated to be weaker as a whole and objective setting as well as performance analysis is still done by the strong line supervisor. This implies that beginners can shed clearness about their respective duties as well as objectives specifically as populated line reporting does not maintain them in direct communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had been hypothesized that the latter would take Krasnow's position came as a strike to her spirits. Lewis may have been qualified and also ideal for the job yet the reality that Kransnow's departure would make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Job Insecurity: Fear and also insecurity can be recognized as two significant concerns that Lewis would be handling especially as the merger has actually currently be terminated and also 2 senior executives of the advertising department would certainly be leaving. The entire duty of the department would be falling on Lewis's shoulders who would not just supervise of brining regarding a cultural modification however would certainly additionally have to confirm herself in her new role.

Inappropriate Monitoring Design of Leader: Lewis's management style and also its incompatibility with the marketing department's role can also be viewed as an OB difficulty specifically as she has been made use of to taking care of concerns in the operations division where personnel are educated to focus on processes and obtain them right. The advertising and marketing division on the various other hand can be viewed as a group of individuals that are made use of to being supported by Krasnow who concentrated much more on outcome than processes.

Interdepartmental Arguments: Interdepartmental disputes in between 3 divisions, advertising and marketing, merchandizing and also procedures respectively over the allotment of the advertising and marketing mix can be determined as another OB concern. Although the advertising and marketing division does not share the exact same vision as the other two divisions relating to the aloocation of the advertising mix twoards promos and advertsing, the merchandizing as well as operations departments do not agree over the advertising and marketing mix allotment amongst each other either.

Fragmentation in Advertising And Marketing Division: Fragmentation in between the advertising and marketing divisions can be recognized as another OB problem which might need additional attention. The reality that the advertising and marketing areas in the advertising and marketing department are detached is avoiding both departments from obtaining from each other's experience as well as expertise. Integration of marketing with merchandising as well as procedures would end up being more difficult if the marketing division itself is broken down which can be one more possible OB problem.

Liberal Government Of Ontarios Eco Tax Fiasco Analysis

Different concepts have actually been utilized to describe the situations to get additional clarity concerning the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors think that juniors are easy as well as careless, have little aspiration and withstand modification. The difficult variation of this concept emphasized browbeating, limited controls, threats and also penalties. In time it generates low performance, subtle sabotage and competition (Bargain, 2003). Although the scenario at Liberal Government Of Ontarios Eco Tax Fiasco is not entirely complying with Concept X, it can be seen that new hires are locating this setting rather demanding which may at some point cause a greater inclination of the management towards Concept X. According to McGregor's advocated sight, which he called Concept Y, the necessary job of the monitoring is to set up organizational conditions to ensure that individuals can accomplish their very own goals best by routing their efforts in the direction of organizational benefits. If people find no complete satisfaction in their work, the administration would certainly have little choice however to rely on concept X and also outside control (Bargain, 2003). Also while assessing Lewis's management design, theory X may have appropriated in the operations department somewhat however the Advertising division would certainly call for reliance on Theory Y so as to get the creative thinking and also creativity from the groups.

Tuckman's Teamwork Concept: As much as Lewis's worry about bringing harmony between the marketing as well as marketing division is concerned, this would at first lead to clash as gone over by Bruce Tuckman in his 'Synergy Concept'. By incorporating the marketing as well as marketing department's job, there may be the very same first detach which can lead to the second phase of 'storming' where the teams challenge one an additional.

When individuals are offered with adjustment, they go into phase one and so there might be emotions like despair, unpredictability, irritation, rage, worry, denial and also disorientation.The situation at the marketing department of Liberal Government Of Ontarios Eco Tax Fiasco is comparable so Lewis can obtain comfortable with the idea that it is not amazing behavior. It is during this phase that Lewis will certainly have to provide advice to the division so that they can locate a feeling of instructions. It can be seen just how Krasnow has currently made this shift easier by making Lewis obtain included in the division a year prior to his real separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has discusses the significance of 'security needs as being a reduced level requirement of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel safe and also out of danger' is at the second degree of requirements. Prior to a staff member can be made to establish emotionally, he needs to have his 'Physiological 'and 'Safety and security' needs met.

SWOT Analysis for Liberal Government Of Ontarios Eco Tax Fiasco Case Study

Effects of Analysis.

The OB analysis has considered various theories to understand just how to handle the existing situation at hand. The complying with three alternatives have been suggested to help Lewis handle the organizational difficulties in the marketing department. Each of these options has been recommended for easing the transition needed to bring the marketing division in accordance with the needs of the marketplace as well as for making the social change that would certainly follow once the existing leader leaves.

Integration of marketing and advertising functions. Separating Adverting and Production features. Assimilation of Marketing with Workflow.

Assessment of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis during the earlier merger days has knowledge in business-to-business advertising and marketing along with firm and retail advertising and marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to manage both advertising and also marketing functions.

The benefit of this strategy is that it will certainly incorporate both functions while minimizing the requirement for hiring an added resource for advertising. Lewis would be heading the advertising department and also in any kind of case her replacement would be required for the current function that she is performing. The drawback of this choice is that external hiring may cause bitterness from interior workers that may be eying the placement of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting as well as Production: Given the competitive pressures and high quality job called for from the ad agency, it is recommended that Lewis ought to allow the manufacturing unit to be a different function from the marketing device. Considering that the majority of ad agency had these 2 functions as different devices, it makes even more feeling to adhere to the norm. In addition to this, both features may be able to concentrate on their core turns on much more effectively. The downside of this strategy would certainly be that added prices would have to be borne for setting up different production functions. Along with this, a manufacturing head might have to be employed which could boost expenses for the company.

Assimilation of Marketing with Procedures: Because Lewis is already caring for the marketing and also operations departments concurrently; it makes good sense to incorporate the two features considering that she has actually been efficiently caring for both ends. The fact that both departments already have significant differences over allocation of sources recommends that this integration might be able to cause consistency particularly as Lewis would certainly be heading both ends.However there are different drawbacks of this action specifically as it would place way too much worry over Lewis's shoulders. The reality that Lewis has to adapt her administration design for the advertising division suggests that these two departments would be culturally varied. Lewis may not be able to use one kind of leadership style to both divisions which can result in inefficiency in either one of the 2 functions.


An examination of the 3 options shows that combination of advertising and marketing as well as operations would not be a practical relocation due to the substantial distinctions between the 2 departments despite the reality that currently Lewis is dealing with both. While separation of the production function might have been a beneficial step for the advertising and marketing department, the reality that it would indicate putting a 3rd function under Lewis's wing means this must be stayed clear of.

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

Marketing and advertising functions would certainly be combined.

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

Manufacturing function will stay component of advertising and marketing under advertising function.

Lewis will separate herself from procedures.

An autonomous leadership design with staff member empowerment will certainly be used in marketing department.

Open up door policy and emphasis on cross departmental interaction will be aimed at eliminating disharmony.

Contingency plan.

If the combination does not exercise as intended, a contingency strategy would comply with which would certainly divide the manufacturing function from the marketing feature to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising department without an SVP. In that case the manufacturing function will certainly be divided by positioning it under an SVP production.