Air Miles Canada Case Study Analysis


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Air Miles Canada Case Study Analysis

Background and Facts

Air Miles Canada a workplace products store for small as well as moderate sized organisations has recently been involved in preparing for a merger with its competitor Home Deport, which has impacted efficiency degrees in departmentswith the elderly supervisor involved in legal complications put forth by the government Trade Compensation. With the Advertising and marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the role in the near future. With obstacles in the form of a possible cultural modification and also low employee morale, the organization wants a full reengineering initiative at the marketing division.

Issue Statement
Porter's 5 Forces Analysis
The possible social adjustment at the advertising and marketing department of Air Miles Canada is enhancing unpredictability in the workplace resulting in different obstacles for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing calculated choices given that Stapes Inc. needed to abandon its strategies of combining with Workplace Deport after the Federal Trade Commission's treatment while doing so. Offered the fact that the store has a global existence with branches in UK, USA, Canada as well as Germany, political consider each of these countries might be able to affect efficiency or calculated goals. Federal Profession Payment's antitrust suit versus the merger occupied beneficial time of the company's elderly monitoring recommending that 'political' factors can have serious implications for a worldwide service.

Economic Factors: Financial factors such as the development of local business in the international circumstance suggest that Air Miles Canada is prospering in an atmosphere where there is possible growth of companies. Truth that shop clients are mainly looking for office products for residence workplaces suggests that the market has a rising pattern of entrepreneurs and also house based organisations.

Social factors: Social patterns in the economic situation show that consumers are seeking convenience along with appealing prices. Market research shows how the customer for Air Miles Canada does not have recognition about finding solutions which can use a combination of comfort and inexpensive.

Technical factors: Modern technology plays an important duty in Air Miles Canada's business approach particularly as the organization is piloting Innovation centers which would offer technology sales and assistance in the form of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Organizational Behavior issues can be seen in Air Miles Canada's case as highlighted in this area.

Apprehensions concerning social modification: There is worry concerning a social adjustment that would occur when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with the majority of the personnel already showing unhappiness over this prospective move. This expected adjustment has produced anxiety in the work environment which has been combined with the past tension of preparing the company for a prospective merging with Residence Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is lack of personnel that can match the stressful atmosphere of a fast-paced organization. Not just does this bring about problem in locating the right individuals, it puts anxiety on brand-new hires as can not withstand the speed and also pressure that the company anticipates them to bear.

Dual Coverage Lines: Newbies find this organizational society difficult and hard to deal with particularly as populated line partnerships are meant to be weak as a whole and also objective setup as well as efficiency assessment is still done by the solid line supervisor. This indicates that novices might lose quality concerning their particular roles and objectives particularly as populated line coverage does not maintain them in straight interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had been speculated that the latter would take Krasnow's position came as an impact to her morale. Lewis may have been capable and also ideal for the task yet the fact that Kransnow's departure would make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Work Instability: Concern and also instability can be determined as two major problems that Lewis would certainly be taking care of particularly as the merger has now be terminated as well as 2 senior executives of the marketing division would certainly be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders that would not simply be in charge of brining about a cultural change but would certainly also have to show herself in her brand-new role.

Incompatible Management Design of Leader: Lewis's management style and also its incompatibility with the advertising department's role can likewise be seen as an OB challenge specifically as she has been used to taking care of problems in the operations department where workers are shown to concentrate on processes and also obtain them. The advertising department on the other hand can be viewed as a team of people that are utilized to being supported by Krasnow that concentrated more on output than processes.

Interdepartmental Differences: Interdepartmental disputes between 3 departments, advertising, merchandizing and operations specifically over the allocation of the advertising and marketing mix can be identified as another OB problem. The advertising department does not share the exact same vision as the various other 2 departments concerning the aloocation of the advertising mix twoards promos and advertsing, the merchandizing as well as operations departments do not concur over the marketing mix appropriation among one an additional either.

Fragmentation in Marketing Division: Fragmentation between the advertising and marketing departments can be recognized as one more OB issue which might need more interest. The fact that the marketing and advertising areas in the advertising and marketing division are detached is avoiding both departments from acquiring from each other's experience as well as knowledge. Combination of advertising and marketing with merchandising and operations would become harder if the marketing department itself is degenerated which can be another prospective OB worry.

Air Miles Canada Analysis

Various theories have actually been utilized to describe the situations to obtain additional clarity concerning the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers believe that subordinates are easy as well as careless, have little passion as well as withstand adjustment. The scenario at Air Miles Canada is not entirely following Concept X, it can be seen that brand-new hires are discovering this atmosphere instead difficult which might ultimately lead to a better disposition of the management in the direction of Concept X. Also while analyzing Lewis's administration style, concept X might have been suitable in the operations division to some extent but the Marketing department would require dependence on Concept Y in order to get the creativity and also creativity from the teams.

Tuckman's Teamwork Concept: As much as Lewis's concern about bringing harmony in between the marketing and also marketing department is concerned, this would initially lead to conflict as talked about by Bruce Tuckman in his 'Synergy Concept'. By combining the advertising as well as marketing division's work, there might be the exact same first disconnect which can lead to the second stage of 'storming' where the groups test one an additional.

Bridges' Change Design: Based On William Bridge's theory (appendix 4), individuals are quite uncomfortable with adjustment, which is obvious by the situation at Air Miles Canada The circumstance can be viewed as a regular course of life if is researched according to Bridge's concept where he discusses that individuals go through three phases of transition when they experience change. 'Ending, losing as well as Letting go', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When people exist with change, they get in stage one therefore there might be feelings like unhappiness, uncertainty, irritation, temper, concern, rejection and also disorientation.The situation at the advertising and marketing division of Air Miles Canada is similar so Lewis can obtain comfy with the concept that it is not extraordinary behavior. In the 2nd stage, there may be a demand to connect the void between the new and also old society so Lewis may need to encounter this ordeal once Krasnow leaves. There might be low morale and low performance at this stage which ought to not be taken as a trouble. It is throughout this stage that Lewis will have to give advice to the division so that they can find a sense of direction. It can be seen just how Krasnow has actually already made this change much easier by making Lewis get involved in the department a year prior to his real departure. According to Bridges' Version, phase three will certainly produce visibility to discovering, High power and dedication as individuals will certainly embrace the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has discusses the value of 'safety requires as being a reduced degree requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel secure and out of risk' is at the 2nd degree of requirements. Before a staff member can be made to develop mentally, he requires to have his 'Physiological 'and 'Safety and security' requires met.

SWOT Analysis for Air Miles Canada Case Study

Effects of Analysis.

The OB analysis has checked out numerous concepts to recognize how to handle the existing circumstance handy. The following 3 choices have actually been recommended to aid Lewis deal with the business challenges in the marketing department. Each of these alternatives has been proposed for relieving the shift required to bring the advertising and marketing department in accordance with the needs of the marketplace and for making the social modification that would certainly follow as soon as the existing leader leaves.

Integration of advertising and marketing features. Dividing Adverting and also Production features. Integration of Advertising And Marketing with Operations.

Evaluation of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merging days has know-how in business-to-business marketing along with firm and also retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to deal with both advertising and also advertising functions.

The benefit of this method is that it will certainly incorporate both features while decreasing the demand for working with an extra resource for advertising and marketing. Lewis would be heading the advertising and marketing division and also in any case her substitute would certainly be needed for the existing role that she is doing. The drawback of this alternative is that outside hiring might bring about resentment from interior workers that may be looking at the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Production: Provided the competitive stress as well as high top quality job called for from the advertising firm, it is recommended that Lewis ought to permit the production device to be a separate feature from the advertising and marketing system. Considering that most advertising companies had these 2 functions as separate systems, it makes more feeling to comply with the standard.

Assimilation of Advertising And Marketing with Operations: Considering that Lewis is already taking care of the advertising and operations divisions simultaneously; it makes good sense to incorporate both functions given that she has been effectively caring for both ends. The reality that the two departments currently have significant differences over allotment of sources suggests that this combination may be able to bring about consistency especially as Lewis would be heading both ends.However there are numerous drawbacks of this action especially as it would certainly place way too much concern over Lewis's shoulders. The fact that Lewis needs to adjust her administration style for the marketing department suggests that these 2 divisions would certainly be culturally varied. Along with this, Lewis may not have the ability to apply one sort of leadership design to both departments which might lead to ineffectiveness in either among the two features.


An examination of the three choices shows that assimilation of marketing as well as operations would certainly not be a viable action because of the substantial distinctions between the two divisions despite the fact that currently Lewis is handling both. While splitting up of the manufacturing function may have been a desirable action for the advertising and marketing department, the truth that it would certainly indicate putting a third feature under Lewis's wing means this should be avoided. The integration of the marketing department is the most effective option in regards to obtaining the ideal results from the department. An action plan for this alternative is gone over listed below.

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

Advertising and Marketing features would certainly be merged.

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

Manufacturing feature will stay part of marketing under advertising function.

Lewis will separate herself from operations.

An autonomous leadership design with employee empowerment will certainly be made use of in marketing department.

Open door policy as well as focus on cross departmental communication will certainly be aimed at getting rid of dissonance.

Backup strategy.

If the integration does not exercise as planned, a contingency strategy would certainly follow which would certainly divide the manufacturing feature from the advertising feature to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the marketing department without an SVP. In that case the manufacturing feature will most definitely be divided by placing it under an SVP manufacturing.