Aucnet Tv Auction Network System Case Study Analysis


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Aucnet Tv Auction Network System Case Study Solution

Background and Facts

Aucnet Tv Auction Network System an office materials seller for tiny and also medium sized organisations has actually recently been associated with preparing for a merging with its competitor House Deport, which has impacted efficiency levels in departmentswith the elderly manager associated with legal difficulties presented by the government Trade Compensation. With the Advertising Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the duty in the future. With obstacles in the type of a potential cultural change as well as low staff member morale, the company wants a complete reengineering effort at the advertising and marketing department.

Issue Declaration

The potential cultural modification at the advertising and marketing department of Aucnet Tv Auction Network System is enhancing unpredictability in the workplace bring about different difficulties 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 significant function in affecting tactical decisions given that Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Trade Payment's intervention at the same time. Given the reality that the store has an international visibility with branches in UK, USA, Canada and also Germany, political consider each of these countries may be able to impact performance or strategic goals. Federal Profession Payment's antitrust match versus the merger occupied important time of the organization's elderly monitoring recommending that 'political' factors can have serious implications for an international organisation.

Economic Factors: Economic factors such as the development of local business in the global circumstance suggest that Aucnet Tv Auction Network System is flourishing in an atmosphere where there is possible development of businesses. Reality that shop clients are mainly looking for office products for house offices recommends that the market has a climbing pattern of entrepreneurs and also home based organisations.

Social factors: Social fads in the economy show that consumers are trying to find ease as well as eye-catching costs. Marketing research shows how the consumer for Aucnet Tv Auction Network System lacks recognition regarding locating solutions which can offer a combination of convenience as well as low costs.

Technical factors: Innovation plays an important function in Aucnet Tv Auction Network System's business approach specifically as the company is piloting Innovation centers which would certainly supply innovation sales and assistance in the kind of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and Effects.

A number of underlying Organizational Actions problems can be seen in Aucnet Tv Auction Network System's case as highlighted in this area.

Uneasiness about social adjustment: There is apprehension about a social adjustment that would happen as soon as Todd Krasnow leaves from his position as the Executive Vice President of Marketing with the majority of the team member currently showing discontent over this prospective step. This anticipated modification has produced stress and anxiety in the work environment which has actually been combined with the previous stress and anxiety of preparing the firm for a possible merging with Home Deport.

Demanding Job Environment for Newcomers: There is shortage of employees that can match the demanding environment of a fast-paced organization. Not only does this cause trouble in finding the ideal people, it places stress and anxiety on brand-new hires as can not withstand the speed and also pressure that the company expects them to birth.

Twin Reporting Lines: Newbies find this organizational society cumbersome and also challenging to manage especially as populated line relationships are meant to be weaker generally as well as unbiased setting and also efficiency evaluation is still done by the strong line manager. This means that beginners can lose quality regarding their respective duties and also goals particularly as populated line coverage does not keep them in straight interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had actually been speculated that the last would certainly take Krasnow's placement came as an impact to her spirits. Lewis might have been capable and also suitable for the job yet the reality that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Fear & Work Insecurity: Fear as well as insecurity can be determined as two major issues that Lewis would be managing especially as the merger has actually now be terminated as well as 2 elderly executives of the marketing department would be leaving. The entire responsibility of the division would be falling on Lewis's shoulders that would not just supervise of brining concerning a cultural change however would additionally have to prove herself in her new role.

Inappropriate Management Design of Leader: Lewis's administration design as well as its conflict with the advertising department's role can likewise be viewed as an OB difficulty especially as she has been used to taking care of problems in the procedures department where employees are shown to focus on procedures and obtain them right. The advertising division on the other hand can be seen as a group of people that are utilized to being nurtured by Krasnow that focused extra on outcome than procedures.

Interdepartmental Disputes: Interdepartmental disagreements in between 3 divisions, advertising and marketing, merchandizing and operations specifically over the appropriation of the advertising mix can be recognized as another OB problem. Although the advertising department does not share the same vision as the other two departments regarding the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as procedures divisions do not concur over the advertising mix allotment amongst each other either.

Fragmentation in Advertising Department: Disintegration in between the marketing and advertising divisions can be recognized as an additional OB concern which can need additional focus. The fact that the advertising and marketing areas in the advertising and marketing division are separated is preventing both departments from acquiring from each various other's experience and experience. Integration of advertising and marketing with retailing and also operations would end up being more difficult if the advertising department itself is disintegrated which can be another possible OB problem.

Aucnet Tv Auction Network System Analysis

Various concepts have actually been made use of to describe the scenarios to get more clarity about the scenario handy.

McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers think that staffs are passive as well as careless, have little ambition and resist adjustment. The tough version of this theory emphasized browbeating, limited controls, hazards and penalties. Gradually it produces low efficiency, refined sabotage and competition (Bargain, 2003). The scenario at Aucnet Tv Auction Network System is not totally complying with Concept X, it can be seen that brand-new hires are discovering this setting rather stressful which might at some point lead to a better disposition of the monitoring towards Theory X. Based on McGregor's advocated sight, which he called Concept Y, the necessary task of the administration is to prepare business conditions to ensure that people can achieve their own objectives best by guiding their efforts towards organizational benefits. If individuals find no satisfaction in their work, the management would certainly have little option yet to rely on theory X and outside control (Bargain, 2003). Also while assessing Lewis's administration style, theory X may have appropriated in the operations division to some extent but the Marketing division would need reliance on Concept Y in order to get the creativity and also creativity from the groups.

Tuckman's Team effort Concept: As far as Lewis's worry about bringing harmony between the advertising and also marketing department is concerned, this would originally lead to conflict as talked about by Bruce Tuckman in his 'Synergy Theory'. By integrating the advertising and marketing and advertising and marketing department's job, there may be the exact same first separate which can lead to the 2nd stage of 'storming' where the teams challenge one another.

When people are presented with modification, they enter phase one as well as so there might be feelings like despair, unpredictability, aggravation, temper, fear, rejection and also disorientation.The situation at the marketing division of Aucnet Tv Auction Network System is similar so Lewis can get comfy with the suggestion that it is not remarkable actions. It is during this stage that Lewis will certainly have to give assistance to the department so that they can discover a feeling of instructions. 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 actual separation.

Maslow's Need pecking order: The OB issue pertaining to insecurity at the office has actually been set off firstly by the adjustment in administration as well as secondly by the reality that the merger will no more be started. Abraham Maslow in his Concept 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 causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel protected and also untouched' goes to the second degree of needs. Before a worker can be made to create emotionally, he needs to have his 'Physiological 'and 'Safety and security' needs met. This indicates that unless the employees are made to really feel protected about their current employment standing in Aucnet Tv Auction Network System they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Aucnet Tv Auction Network System Case Study

Effects of Analysis.

The OB analysis has actually looked at various theories to comprehend just how to manage the current situation available. The complying with three choices have been recommended to aid Lewis take care of the organizational difficulties in the marketing department. Each of these choices has actually been recommended for easing the shift required to bring the advertising and marketing department in accordance with the demands of the marketplace and for making the cultural adjustment that would certainly comply with as soon as the current leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting as well as Production features. Integration of Advertising And Marketing with Operations.

Examination of Alternatives.

Combination of Advertising And Marketing & Marketing Functions: The internal advertising and marketing agency of Aucnet Tv Auction Network System is currently strength for the company in terms of saving up on expenses related to advertising and marketing and promotion. Since no brand-new recruitment has actually been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the advertising and marketing function, this is a desirable chance for integrating the advertising and marketing functions. Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merger days has know-how in business-to-business marketing along with agency and retail advertising experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to handle both marketing and advertising features.

The benefit of this method is that it will certainly incorporate both functions while minimizing the need for hiring an additional resource for advertising and marketing. Lewis would be heading the advertising department and in any kind of case her replacement would certainly be required for the present duty that she is carrying out. The drawback of this choice is that outside hiring might produce bitterness from interior workers who might be considering the placement of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Manufacturing: Provided the affordable pressures as well as excellent quality work needed from the advertising agency, it is suggested that Lewis ought to enable the manufacturing unit to be a separate feature from the advertising system. Because the majority of ad agency had these two features as separate units, it makes even more sense to adhere to the norm. Both features may be able to concentrate on their core activates much more effectively. However, the negative aspect of this strategy would be that added prices would have to be borne for establishing different production functions. Along with this, a production head may have to be hired which might increase overheads for the company.

Combination of Advertising with Operations: Since Lewis is already taking treatment of the marketing and also procedures departments simultaneously; it makes feeling to integrate the two functions considering that she has been successfully taking care of both ends. The fact that Lewis has to adapt her administration design for the advertising division suggests that these two divisions would certainly be culturally diverse.


An analysis of the three options indicates that assimilation of advertising and marketing and also operations would not be a practical move as a result of the vast differences between both divisions although that currently Lewis is handling both. While splitting up of the manufacturing feature may have been a beneficial move for the advertising division, the truth that it would suggest positioning a 3rd feature under Lewis's wing indicates this should be avoided. The assimilation of the advertising and marketing division is the very best option in terms of getting the ideal arise from the division. An action prepare for this choice is gone over listed below.

Action Plan.

Lewis will certainly take control of the role of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would be combined.

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

Manufacturing feature will continue to be part of marketing under advertising and marketing function.

Lewis will certainly separate herself from operations.

A democratic management style with worker empowerment will certainly be made use of in advertising department.

Open door plan and also focus on cross departmental communication will certainly be focused on getting rid of discord.

Contingency plan.

If the integration does not work out as prepared, a contingency plan would certainly comply with which would separate the production function from the marketing function to decrease the lots 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. Because case the manufacturing feature will definitely be separated by putting it under an SVP production.