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Preferred Customer Service At Us Airways Case Study Analysis

Background and Facts

Preferred Customer Service At Us Airways a workplace materials seller for tiny and also average sized organisations has actually recently been involved in planning for a merger with its competitor Residence Deport, which has actually impacted efficiency degrees in departmentswith the senior supervisor associated with legal problems presented by the government Profession Compensation. With the Marketing Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the present head of operations has been asked to take the function in the future. With challenges in the form of a possible cultural adjustment and also reduced employee spirits, the organization wants a complete reengineering initiative at the advertising and marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The potential social adjustment at the marketing department of Preferred Customer Service At Us Airways is raising uncertainty in the workplace causing various obstacles for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting tactical choices because Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Trade Compensation's intervention while doing so. Given the truth that the store has an international presence with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these nations might be able to influence efficiency or tactical objectives. Federal Trade Compensation's antitrust fit against the merger used up useful time of the organization's senior monitoring recommending that 'political' factors can have major effects for a worldwide organisation.

Economic Factors: Financial factors such as the development of local business in the global scenario recommend that Preferred Customer Service At Us Airways is flourishing in an environment where there is possible development of organisations. Reality that store consumers are mainly looking for workplace supplies for residence workplaces recommends that the market has a climbing pattern of business owners and also residence based services.

Social factors: Social fads in the economic climate show that customers are seeking comfort as well as appealing rates. Market research shows how the client for Preferred Customer Service At Us Airways does not have understanding concerning discovering solutions which can offer a combination of comfort and also low costs.

Technical factors: Innovation plays an important role in Preferred Customer Service At Us Airways's organisation technique particularly as the organization is piloting Innovation facilities which would certainly provide technology sales as well as support in the form of memory upgrades, outer installations. (Summary of INSECT in appendix 2).

OB Issues and Manifestations.

Numerous underlying Organizational Habits problems can be seen in Preferred Customer Service At Us Airways's case as highlighted in this area.

Apprehensions regarding cultural change: There is uneasiness concerning a cultural change that would take place as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising with the majority of the team member currently showing discontent over this prospective move. This anticipated adjustment has created stress in the workplace which has actually been combined with the past stress of preparing the company for a potential merger with Home Deport.
Pest Analysis
Demanding Work Atmosphere for Newcomers: There is scarcity of workers that can match the difficult atmosphere of a busy company. Not only does this lead to difficulty in locating the ideal people, it places stress and anxiety on new hires as can not stand up to the pace as well as stress that the organization anticipates them to birth.

Dual Coverage Lines: Beginners find this organizational culture troublesome and also tough to handle specifically as dotted line connections are implied to be weak generally and objective setting and performance analysis is still done by the strong line supervisor. This means that newcomers can lose clearness concerning their respective roles as well as goals specifically as dotted line reporting does not keep them in direct interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had been hypothesized that the last would certainly take Krasnow's setting came as a blow to her spirits. Lewis may have been capable and also ideal for the work however the truth that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Work Instability: Anxiety as well as insecurity can be determined as 2 significant problems that Lewis would be taking care of specifically as the merger has actually currently be terminated and 2 elderly executives of the advertising and marketing department would be leaving. The whole obligation of the department would certainly be dropping on Lewis's shoulders that would not simply be in charge of brining concerning a social adjustment however would likewise have to verify herself in her brand-new function.

Inappropriate Management Style of Leader: Lewis's administration style and also its conflict with the marketing division's function can additionally be seen as an OB difficulty particularly as she has been made use of to handling concerns in the procedures department where personnel are shown to concentrate on processes and also obtain them right. The advertising and marketing division on the various other hand can be seen as a group of individuals who are made use of to being supported by Krasnow who focused extra on result than procedures.

Interdepartmental Arguments: Interdepartmental disputes between 3 divisions, advertising and marketing, merchandizing and also procedures respectively over the allotment of the marketing mix can be recognized as an additional OB concern. Although the advertising and marketing department does not share the same vision as the various other 2 departments concerning the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and procedures divisions do not concur over the advertising and marketing mix appropriation among one another either.

Disintegration in Advertising Department: Fragmentation in between the marketing and advertising departments can be determined as one more OB issue which could require additional interest. The truth that the advertising and marketing areas in the advertising and marketing division are detached is preventing both departments from getting from each other's experience as well as competence. Integration of marketing with retailing and operations would certainly become more difficult if the advertising division itself is degenerated which can be one more possible OB problem.

Preferred Customer Service At Us Airways Analysis

Numerous theories have actually been used to clarify the circumstances to obtain further quality concerning the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors believe that subordinates are passive as well as careless, have little aspiration as well as resist modification. The tough variation of this theory stressed threat, tight controls, hazards and penalties. With time it creates reduced productivity, refined sabotage as well as rivalry (Bargain, 2003). The circumstance at Preferred Customer Service At Us Airways is not completely adhering to Concept X, it can be seen that brand-new hires are locating this setting rather stressful which may ultimately lead to a higher inclination of the monitoring towards Theory X. According to McGregor's promoted view, which he called Theory Y, the important task of the management is to prepare business conditions to make sure that people can achieve their own objectives best by guiding their efforts in the direction of business benefits. If people locate no fulfillment in their job, the management would certainly have little selection however to depend on theory X and also external control (Offer, 2003). Also while analyzing Lewis's monitoring style, theory X might have been suitable in the operations department somewhat however the Advertising division would need dependence on Concept Y in order to get the creative thinking as well as creativity from the teams.

Tuckman's Synergy Theory: As for Lewis's issue about bringing consistency in between the advertising and marketing division is concerned, this would originally result in conflict as discussed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, throughout the first stage of team growth, individuals might not bond, as they are active locating their place in the team. By combining the marketing and advertising department's work, there may coincide initial detach which can cause the 2nd stage of 'storming' where the groups challenge each other. However, it is only throughout the third stage or 'norming' when they would integrate to share suggestions before the group can cause synergy in the fourth stage 'carrying out'.

Bridges' Transition Model: According To William Bridge's theory (appendix 4), individuals are fairly unpleasant with adjustment, which is noticeable by the circumstance at Preferred Customer Service At Us Airways The scenario can be viewed as a normal course of life if is studied as per Bridge's concept where he describes that people experience three stages of change when they experience modification. 'Closing, losing as well as Releasing', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people are presented with adjustment, they get in stage one therefore there may be feelings like despair, unpredictability, irritation, temper, worry, denial and also disorientation.The situation at the advertising and marketing department of Preferred Customer Service At Us Airways is similar so Lewis can get comfortable with the idea that it is not phenomenal behavior. In the second stage, there might be a demand to bridge the space in between the brand-new as well as old society so Lewis may have to face this challenge as soon as Krasnow leaves. There may be low spirits as well as low performance at this stage which ought to not be taken as a trouble. It is throughout this phase that Lewis will need to offer guidance to the department to make sure that they can find an orientation. It can be seen just how Krasnow has already made this change less complicated by making Lewis get associated with the division a year before his real departure. As per Bridges' Version, stage three will certainly produce openness to learning, High energy and dedication as people will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Requirement power structure: The OB problem pertaining to insecurity at the workplace has actually been activated firstly by the adjustment in administration and second of all by the reality that the merging will no more be launched. Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has discusses the value of 'protection requires as being a lower level requirement of a human for triggering inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to really feel protected as well as untouched' is at the 2nd degree of needs. Before an employee can be made to develop mentally, he needs to have his 'Physiological 'and 'Security' requires met. This suggests that unless the employees are made to really feel safe and secure concerning their existing work condition in Preferred Customer Service At Us Airways they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Preferred Customer Service At Us Airways Case Study

Effects of Analysis.

The OB analysis has taken a look at various theories to comprehend exactly how to manage the present scenario available. The following three alternatives have been suggested to assist Lewis handle the organizational obstacles in the advertising and marketing department. Each of these choices has been recommended for alleviating the transition needed to bring the advertising department according to the demands of the marketplace and for making the social change that would certainly adhere to as soon as the existing leader leaves.

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

Evaluation of Alternatives.

Assimilation of Advertising And Marketing & Advertising Functions: The internal advertising and marketing company of Preferred Customer Service At Us Airways is currently toughness for the company in terms of saving up on expenses connected to advertising as well as promo. Considering that no new recruitment has been done after Bridget Cole's departure with the reporting line being directly appointed to Krasnow for the marketing function, this is a desirable opportunity for incorporating the marketing and advertising functions. Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merger days has proficiency in business-to-business advertising and marketing together with agency and retail advertising and marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to manage both advertising and marketing functions.

The benefit of this technique is that it will certainly incorporate the two functions while reducing the requirement for working with an extra resource for advertising. Lewis would certainly be heading the marketing department as well as in any kind of case her substitute would certainly be needed for the current duty that she is doing. The negative aspect of this option is that exterior hiring may bring about resentment from internal employees who may be looking at the placement of EVP after Lewis takes over Krasnow's position.

Separating Adverting and also Manufacturing: Offered the affordable stress and also high top quality job needed from the advertising and marketing company, it is recommended that Lewis must permit the production unit to be a separate function from the advertising and marketing system. Since the majority of advertising and marketing firms had these two functions as separate systems, it makes even more sense to comply with the standard.

Assimilation of Advertising And Marketing with Workflows: Since Lewis is currently taking treatment of the advertising and marketing and also procedures divisions simultaneously; it makes feeling to incorporate the 2 functions because she has been successfully taking treatment of both ends. The reality that Lewis has to adapt her monitoring style for the advertising and marketing department suggests that these 2 departments would be culturally diverse.


An evaluation of the three options indicates that integration of marketing and also operations would certainly not be a possible relocation due to the huge differences in between both departments despite the fact that presently Lewis is taking care of both. While splitting up of the manufacturing function may have been a favorable relocation for the marketing division, the reality that it would certainly mean positioning a third function under Lewis's wing indicates this need to be avoided. The assimilation of the advertising and marketing division is the most effective choice in terms of getting the ideal results from the department. An action prepare for this choice is talked about below.

Activity Plan.
Lewis will certainly take over the function of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would be combined.

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

Manufacturing function will stay part of marketing under advertising feature.

Lewis will certainly separate herself from procedures.

An autonomous leadership design with staff member empowerment will certainly be made use of in advertising department.

Open up door plan and focus on cross department communication will certainly be targeted at removing dissonance.

Contingency strategy.

If the integration does not exercise as intended, a backup plan would comply with which would certainly separate the manufacturing function from the advertising feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the marketing division without an SVP. In that case the manufacturing feature will certainly be divided by putting it under an SVP manufacturing.