Aucnet Tv Auction Network System Case Study Solution


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Aucnet Tv Auction Network System Case Study Analysis

Background and Facts

Aucnet Tv Auction Network System a workplace products retailer for little and average sized organisations has just recently been associated with planning for a merger with its rival House Deport, which has influenced efficiency levels in departmentswith the senior supervisor involved in legal problems put forth by the government Trade Payment. With the Advertising and marketing Head advancing the information of his departure from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the near future. With challenges in the form of a possible cultural adjustment and low staff member spirits, the company requires a full reengineering effort at the advertising and marketing division.

Issue Statement
Porter's 5 Forces Analysis
The potential cultural modification at the advertising and marketing department of Aucnet Tv Auction Network System is raising uncertainty in the working environment bring about various difficulties 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 significant role in influencing critical choices given that Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Trade Commission's treatment in the process. Offered the fact that the shop has an international visibility with branches in UK, U.S.A., Canada and Germany, political consider each of these nations may have the ability to affect efficiency or strategic goals. Federal Profession Compensation's antitrust match versus the merger used up important time of the organization's senior monitoring recommending that 'political' factors can have severe ramifications for a global company.

Economic Factors: Financial factors such as the introduction of small businesses in the global scenario suggest that Aucnet Tv Auction Network System is prospering in an environment where there is prospective growth of services. Truth that shop customers are primarily looking for office products for home offices suggests that the market has a climbing fad of business owners and home based services.

Social factors: Social fads in the economic situation show that customers are looking for comfort along with eye-catching rates. Marketing research demonstrates how the consumer for Aucnet Tv Auction Network System lacks understanding about locating remedies which can provide a mix of benefit and also low costs.

Technological factors: Technology plays an important role in Aucnet Tv Auction Network System's service strategy specifically as the company is piloting Innovation facilities which would certainly provide modern technology sales and support in the type of memory upgrades, peripheral installations. (Summary of PEST in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Business Behavior concerns can be seen in Aucnet Tv Auction Network System's case as highlighted in this section.

Uneasiness regarding cultural change: There is worry regarding a social change that would happen when Todd Krasnow leaves from his placement as the Exec Vice President of Advertising with most of the personnel currently showing discontent over this potential relocation. This expected modification has produced tension in the workplace which has been coupled with the previous stress of preparing the firm for a prospective merging with Residence Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is lack of workers that can match the demanding setting of a fast-paced organization. Not only does this bring about difficulty in discovering the best people, it puts stress on brand-new hires as can not endure the rate and also pressure that the organization expects them to birth.

Double Reporting Lines: Newbies locate this business culture troublesome and hard to cope with specifically as dotted line partnerships are meant to be weaker generally and objective setup and also performance assessment is still done by the strong line supervisor. This implies that newcomers could shed quality concerning their respective functions and objectives specifically as populated line reporting does not maintain them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had been guessed that the latter would take Krasnow's placement came as a strike to her spirits. Lewis may have been capable and suitable for the task however the fact that Kransnow's separation would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Task Instability: Worry as well as insecurity can be identified as two significant worries that Lewis would be dealing with specifically as the merging has currently be cancelled as well as two elderly executives of the advertising department would be leaving. The whole obligation of the division would certainly be dropping on Lewis's shoulders who would not simply be in charge of brining concerning a cultural adjustment however would certainly additionally need to verify herself in her new duty.

Incompatible Monitoring Style of Leader: Lewis's management design as well as its conflict with the advertising and marketing department's function can additionally be seen as an OB difficulty especially as she has been made use of to managing concerns in the procedures department where workers are instructed to concentrate on procedures as well as obtain them. The advertising and marketing division on the other hand can be seen as a team of individuals who are made use of to being supported by Krasnow who focused a lot more on output than processes.

Interdepartmental Disputes: Interdepartmental arguments between 3 departments, marketing, merchandizing and also procedures specifically over the allowance of the advertising and marketing mix can be determined as one more OB problem. Although the marketing department does not share the same vision as the other two divisions relating to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and operations divisions do not agree over the advertising and marketing mix appropriation amongst each other either.

Fragmentation in Advertising Department: Disintegration between the marketing and advertising divisions can be determined as an additional OB problem which could require further focus. The truth that the advertising and marketing areas in the advertising department are separated is avoiding both departments from obtaining from each other's experience as well as know-how. Integration of marketing with retailing and operations would certainly become harder if the marketing department itself is degenerated which can be another potential OB concern.

Aucnet Tv Auction Network System Analysis

Numerous theories have been used to describe the situations to obtain more clarity regarding the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers think that subordinates are passive and lazy, have little ambition and stand up to change. The situation at Aucnet Tv Auction Network System is not totally adhering to Theory X, it can be seen that new hires are discovering this environment rather difficult which may ultimately lead to a greater inclination of the monitoring in the direction of Theory X. Even while examining Lewis's management style, concept X might have been suitable in the procedures department to some extent but the Advertising division would certainly need dependence on Concept Y in order to get the imagination as well as originality from the groups.

Tuckman's Synergy Theory: As for Lewis's concern regarding bringing harmony in between the advertising and marketing department is concerned, this would originally lead to conflict as talked about by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, throughout the preliminary phase of team growth, individuals may not bond, as they are busy locating their place in the group. By integrating the advertising and marketing department's job, there may coincide initial disconnect which can cause the second phase of 'storming' where the teams challenge one another. However, it is just throughout the third stage or 'norming' when they would certainly integrate to share concepts prior to the group can bring about synergy in the 4th phase 'performing'.

When individuals are presented with change, they get in stage one and so there may be feelings like despair, unpredictability, irritation, temper, anxiety, rejection as well as disorientation.The circumstance at the marketing department of Aucnet Tv Auction Network System is comparable so Lewis can obtain comfortable with the suggestion that it is not phenomenal habits. It is during this stage that Lewis will have to provide guidance to the department so that they can discover a feeling of instructions. It can be seen exactly how Krasnow has actually already made this transition easier by making Lewis get entailed in the department a year before his real departure.
Vrio Analysis
Maslow's Demand power structure: The OB concern related to insecurity at the office has been triggered firstly by the change in management as well as secondly by the truth that the merging will no longer be started. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has reviews the significance of 'safety needs as being a reduced level requirement of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the requirement to really feel protected as well as safe' goes to the second degree of requirements. Prior to an employee can be made to create psychologically, he needs to have his 'Physiological 'and also 'Safety and security' needs satisfied. This indicates that unless the employees are made to really feel safe and secure regarding their existing work standing in Aucnet Tv Auction Network System they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Aucnet Tv Auction Network System Case Study

Ramification of Analysis.

The OB analysis has actually considered different theories to understand how to manage the existing situation handy. The complying with 3 choices have actually been suggested to aid Lewis deal with the organizational obstacles in the marketing department. Each of these choices has been recommended for relieving the transition required to bring the advertising and marketing department in accordance with the demands of the marketplace as well as for making the social modification that would follow when the current leader leaves.

Combination of marketing and advertising functions. Dividing Adverting and also Manufacturing features. Integration of Advertising with Procedures.

Examination of Alternatives.

Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merging days has knowledge in business-to-business marketing along with agency as well as retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to take care of both marketing and also marketing functions.

The advantage of this technique is that it will certainly incorporate both features while decreasing the need for hiring an added resource for marketing. In addition to this, Lewis would certainly be heading the marketing department and also in any case her substitute would certainly be needed for the existing duty that she is performing. The drawback of this option is that exterior hiring might produce resentment from inner workers that may be eying the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Production: Offered the affordable pressures and also premium quality work called for from the ad agency, it is suggested that Lewis must allow the production unit to be a different function from the marketing unit. Given that the majority of ad agency had these 2 functions as different devices, it makes more feeling to comply with the norm. Both functions may be able to focus on their core activates more efficiently. The drawback of this technique would certainly be that added expenses would have to be borne for establishing up different manufacturing functions. A production head might have to be employed which can enhance overheads for the company.

Combination of Marketing with Procedures: Since Lewis is currently dealing with the advertising and marketing and also procedures departments all at once; it makes good sense to incorporate the two features since she has actually been successfully looking after both ends. The reality that both divisions already have significant differences over allowance of sources suggests that this integration might have the ability to produce consistency particularly as Lewis would certainly be heading both ends.However there are numerous drawbacks of this action especially as it would place excessive problem over Lewis's shoulders. The truth that Lewis has to adapt her monitoring style for the advertising and marketing division suggests that these 2 departments would be culturally diverse. Lewis may not be able to use one type of leadership style to both divisions which could result in inadequacy in either one of the two functions.


An analysis of the 3 alternatives shows that combination of advertising and marketing and operations would certainly not be a viable relocation due to the large differences between both divisions although that currently Lewis is dealing with both. While separation of the production function might have been a favorable relocation for the advertising and marketing division, the fact that it would certainly mean positioning a 3rd feature under Lewis's wing implies this need to be prevented also. The assimilation of the advertising department is the most effective choice in regards to obtaining the ideal arise from the department. An action prepare for this alternative is gone over listed below.

Action Plan.
Lewis will take control of the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Production feature will certainly continue to be component of advertising and marketing under advertising and marketing function.

Lewis will divide herself from procedures.

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

Open up door policy and emphasis on cross department communication will be aimed at getting rid of disharmony.

Contingency strategy.

If the integration does not exercise as intended, a backup plan would certainly adhere to which would divide the manufacturing function from the advertising and marketing function to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing department without an SVP. In that case the production function will absolutely be divided by putting it under an SVP production.