Preferred Customer Service At Us Airways Case Study Solution


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Preferred Customer Service At Us Airways Case Study Analysis

Background and Facts

Preferred Customer Service At Us Airways an office supplies seller for tiny as well as moderate sized organisations has actually just recently been involved in planning for a merger with its competitor Home Deport, which has affected efficiency levels in departmentswith the senior manager involved in legal difficulties 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 duty in the future. With obstacles in the type of a potential cultural change and reduced staff member spirits, the organization is in need of a total reengineering effort at the advertising and marketing division.

Problem Declaration

The prospective social modification at the advertising and marketing department of Preferred Customer Service At Us Airways is boosting unpredictability in the workplace causing different challenges for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting calculated choices because Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Trade Compensation's treatment in the process. Offered the reality that the store has a global existence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries may be able to impact efficiency or tactical objectives. Federal Trade Compensation's antitrust fit versus the merger occupied beneficial time of the company's senior administration recommending that 'political' factors can have severe effects for an international service.

Economic Factors: Economic factors such as the emergence of small businesses in the worldwide situation recommend that Preferred Customer Service At Us Airways is thriving in an atmosphere where there is possible growth of organisations. Reality that shop consumers are primarily looking for office supplies for home workplaces suggests that the market has an increasing trend of business owners and house based services.

Social factors: Social patterns in the economy reveal that customers are looking for comfort as well as attractive rates. Marketing research shows how the customer for Preferred Customer Service At Us Airways does not have understanding about locating options which can offer a mix of convenience and also inexpensive.

Technical factors: Innovation plays a crucial role in Preferred Customer Service At Us Airways's service method specifically as the organization is piloting Technology centers which would certainly supply technology sales as well as assistance in the kind of memory upgrades, outer installations. (Summary of PEST in appendix 2).

OB Issues and Effects.

A number of underlying Organizational Habits issues can be seen in Preferred Customer Service At Us Airways's case as highlighted in this section.

Concerns concerning social modification: There is worry concerning a cultural change that would occur when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising And Marketing with a lot of the personnel currently revealing discontent over this possible move. This predicted adjustment has produced tension in the office which has been paired with the past anxiety of preparing the company for a prospective merging with Residence Deport.

Demanding Task Atmosphere for Newcomers: There is shortage of employees that can match the difficult setting of a busy company. Not only does this bring about problem in finding the ideal people, it places stress and anxiety on new hires as can not stand up to the speed as well as pressure that the company anticipates them to birth.

Double Reporting Lines: Novices locate this organizational society difficult and also difficult to handle specifically as dotted line connections are implied to be weak in general and also objective setup and performance evaluation is still done by the solid line manager. This means that newbies can lose clarity regarding their particular duties as well as objectives particularly as dotted line coverage does not keep them in direct interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had been speculated that the last would take Krasnow's setting came as a strike to her morale. Lewis may have been qualified and suitable for the job yet the reality that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the reason for Coles' resignation from services.

Concern & Job Instability: Worry and instability can be determined as 2 significant problems that Lewis would certainly be managing especially as the merger has actually now be cancelled and 2 senior executives of the advertising and marketing department would be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders who would not just be in charge of brining regarding a cultural adjustment yet would also have to confirm herself in her new duty.

Inappropriate Management Style of Leader: Lewis's management style and also its conflict with the advertising division's duty can also be seen as an OB challenge specifically as she has been utilized to dealing with problems in the operations department where employees are educated to focus on processes and obtain them. The advertising department on the other hand can be viewed as a team of people who are made use of to being supported by Krasnow who focused more on output than procedures.

Interdepartmental Arguments: Interdepartmental disputes between three departments, marketing, merchandizing and also procedures specifically over the allotment of the marketing mix can be recognized as another OB problem. Although the advertising division does not share the same vision as the various other two departments concerning the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as procedures divisions do not agree over the advertising mix appropriation amongst each other either.

Fragmentation in Marketing Division: Disintegration between the advertising and marketing departments can be determined as an additional OB concern which could need more attention. The truth that the marketing and advertising areas in the marketing department are disconnected is avoiding both divisions from obtaining from each various other's experience as well as knowledge. Integration of advertising with merchandising and also operations would certainly end up being more difficult if the advertising and marketing division itself is degenerated which can be one more prospective OB worry.

Preferred Customer Service At Us Airways Analysis

Various concepts have actually been made use of to discuss the circumstances to get additional clearness concerning the scenario available.

McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that staffs are passive and also careless, have little ambition and also stand up to change. The scenario at Preferred Customer Service At Us Airways is not totally complying with Concept X, it can be seen that brand-new hires are locating this setting instead demanding which might at some point lead to a better inclination of the monitoring towards Concept X. Also while analyzing Lewis's monitoring style, theory X may have been suitable in the procedures department to some extent yet the Marketing department would need dependence on Concept Y in order to get the creative thinking and creativity from the groups.

Tuckman's Team effort Theory: Regarding Lewis's worry concerning bringing harmony between the marketing and advertising department is worried, this would initially bring about clash as reviewed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, during the first stage of team advancement, individuals may not bond, as they are active finding their area in the team. By incorporating the advertising and marketing division's job, there might be the same first separate which could lead to the 2nd stage of 'storming' where the teams challenge each other. Nonetheless, it is just throughout the 3rd phase or 'norming' when they would come together to share ideas before the team can bring about synergy in the fourth stage 'doing'.

When individuals are presented with change, they go into phase one as well as so there may be feelings like unhappiness, uncertainty, stress, anger, anxiety, rejection and also disorientation.The circumstance at the advertising department of Preferred Customer Service At Us Airways is similar so Lewis can obtain comfortable with the suggestion that it is not remarkable actions. It is during this stage that Lewis will have to give guidance to the department so that they can find a sense of direction. It can be seen just how Krasnow has actually currently made this shift less complicated by making Lewis obtain involved in the department a year prior to his real departure.

Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has reviews the relevance of 'safety and security requires as being a reduced degree requirement of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel secure and out of risk' is at the 2nd level of needs. Prior to a worker can be made to create emotionally, he requires to have his 'Physical 'and also 'Safety' requires fulfilled.

SWOT Analysis for Preferred Customer Service At Us Airways Case Study

Ramification of Analysis.

The OB analysis has actually taken a look at different concepts to understand just how to handle the current situation handy. The complying with 3 options have been recommended to aid Lewis take care of the organizational challenges in the marketing division. Each of these alternatives has actually been recommended for relieving the transition needed to bring the advertising and marketing department according to the demands of the marketplace as well as for making the social change that would follow when the existing leader leaves.

Integration of advertising and marketing functions. Separating Adverting and also Manufacturing functions. Assimilation of Marketing with Workflow.

Evaluation of Alternatives.

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

The advantage of this strategy is that it will incorporate the two functions while reducing the need for hiring an added resource for advertising and marketing. In addition to this, Lewis would be heading the advertising division and regardless her substitute would be required for the current role that she is executing. The drawback of this choice is that outside hiring may bring about bitterness from internal workers that might be considering the position of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and also Manufacturing: Offered the affordable stress and premium quality job needed from the advertising agency, it is advised that Lewis ought to enable the manufacturing device to be a different function from the advertising unit. Considering that most advertising agencies had these 2 features as separate devices, it makes more feeling to adhere to the norm. Both functions may be able to focus on their core activates extra effectively. However, the negative aspect of this method would be that additional costs would certainly have to be borne for setting up separate production functions. A production head might have to be hired which can boost overheads for the company.

Combination of Advertising with Workflows: Because Lewis is already taking treatment of the advertising and marketing as well as procedures departments simultaneously; it makes sense to integrate the 2 features since she has been effectively taking treatment of both ends. The truth that Lewis has to adjust her monitoring style for the advertising and marketing division recommends that these 2 departments would certainly be culturally diverse.


An evaluation of the three alternatives indicates that integration of advertising and operations would not be a practical action due to the large distinctions in between the two divisions although that currently Lewis is handling both. While splitting up of the manufacturing function may have been a positive action for the marketing department, the fact that it would suggest putting a third function under Lewis's wing means this need to be prevented also. The integration of the marketing division is the most effective choice in terms of obtaining the optimum results from the department. An action prepare for this choice is discussed below.

Action Strategy.

Lewis will certainly take over the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would be merged.

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

Manufacturing feature will stay component of marketing under advertising feature.

Lewis will separate herself from operations.

An autonomous leadership design with employee empowerment will be used in marketing division.

Open door policy as well as focus on cross department interaction will certainly be focused on removing disharmony.

Backup plan.

If the integration does not exercise as intended, a backup strategy would comply with which would certainly divide the manufacturing feature from the marketing function to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising division without an SVP. Because case the production feature will certainly be separated by positioning it under an SVP manufacturing.