Background and Facts
Concordia Casting Co an office supplies store for tiny as well as average sized organisations has actually just recently been involved in preparing for a merger with its competitor Home Deport, which has influenced efficiency levels in departmentswith the senior supervisor involved in lawful problems presented by the federal Trade Payment. With the Advertising Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the future. With difficulties in the kind of a potential cultural modification and also low employee morale, the company requires a complete reengineering effort at the marketing department.Problem Declaration
The potential cultural adjustment at the advertising department of Concordia Casting Co is boosting uncertainty in the working environment leading to different difficulties for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis
PEST analysis
Political Factors: Political factors play a major duty in impacting strategic decisions given that Stapes Inc. had to abandon its strategies of combining with Office Deport after the Federal Trade Commission's intervention at the same time. Provided the fact that the shop has a worldwide presence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these nations may have the ability to impact performance or calculated goals. Federal Trade Payment's antitrust fit against the merger used up important time of the company's elderly management suggesting that 'political' factors can have severe implications for a global organisation.
Economic Factors: Economic factors such as the introduction of small businesses in the global situation recommend that Concordia Casting Co is thriving in an environment where there is prospective growth of companies. Fact that store clients are primarily looking for office supplies for house workplaces recommends that the market has a rising trend of entrepreneurs and also home based organisations.
Social factors: Social trends in the economic climate show that consumers are trying to find convenience as well as attractive prices. Market research shows how the customer for Concordia Casting Co lacks recognition about locating options which can supply a combination of ease and low costs.
Technological factors: Technology plays a crucial role in Concordia Casting Co's company strategy specifically as the company is piloting Modern technology centers which would certainly offer technology sales and also assistance in the type of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).
OB Issues and also Manifestations.
Several underlying Organizational Actions problems can be seen in Concordia Casting Co's case as highlighted in this area.
Worries regarding social adjustment: There is apprehension about a cultural change that would certainly occur as soon as Todd Krasnow leaves from his setting as the Exec Vice President of Advertising with most of the staff members currently revealing unhappiness over this potential action. This expected adjustment has created tension in the work environment which has actually been coupled with the previous tension of preparing the firm for a possible merger with Home Deport.
Stressful Job Atmosphere for Newcomers: There is lack of workers that can match the difficult environment of a fast-paced organization. Not only does this bring about trouble in locating the appropriate people, it places stress on new hires as can not endure the pace as well as stress that the company anticipates them to birth.
Double Coverage Lines: Novices discover this organizational culture difficult and challenging to handle especially as populated line connections are indicated to be weak as a whole and also unbiased setting and efficiency analysis is still done by the strong line manager. This implies that newcomers can lose quality regarding their particular functions and also goals particularly as dotted line reporting does not maintain them in direct communication with the solid line managers.
Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles although it had been speculated that the latter would certainly take Krasnow's position came as a strike to her morale. Lewis may have been capable and also proper for the task yet the truth that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from services.
Concern & Work Instability: Fear and also instability can be determined as two significant worries that Lewis would certainly be handling specifically as the merging has currently be terminated as well as two elderly executives of the advertising and marketing department would be leaving. The whole responsibility of the division would certainly be dropping on Lewis's shoulders that would certainly not simply be in charge of brining concerning a social modification yet would also have to prove herself in her new duty.
Inappropriate Management Style of Leader: Lewis's administration style and also its conflict with the advertising department's duty can additionally be viewed as an OB challenge especially as she has actually been utilized to managing problems in the procedures division where workers are instructed to focus on procedures as well as obtain them right. The advertising and marketing division on the other hand can be seen as a group of individuals who are utilized to being nurtured by Krasnow that concentrated much more on output than procedures.
Interdepartmental Disputes: Interdepartmental disputes between three divisions, marketing, merchandizing as well as operations specifically over the allocation of the marketing mix can be identified as an additional OB concern. Although the marketing division does not share the exact same vision as the various other 2 divisions concerning the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and also operations divisions do not agree over the advertising mix allowance amongst each other either.
Disintegration in Advertising And Marketing Division: Disintegration in between the advertising and marketing divisions can be identified as another OB concern which could need further attention. The truth that the advertising and marketing sections in the marketing department are disconnected is preventing both departments from gaining from each other's experience and expertise. Integration of advertising with merchandising and procedures would certainly come to be harder if the advertising division itself is disintegrated which can be one more prospective OB problem.
Concordia Casting Co Analysis
Numerous concepts have actually been made use of to describe the scenarios to obtain further quality about the scenario at hand.
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers think that staffs are passive and also lazy, have little ambition and withstand change. The difficult variation of this theory emphasized browbeating, limited controls, threats and punishments. Over time it produces low productivity, subtle sabotage and competition (Deal, 2003). Although the scenario at Concordia Casting Co is not entirely following Theory X, it can be seen that new hires are discovering this environment rather demanding which might at some point bring about a higher disposition of the monitoring in the direction of Theory X. As per McGregor's supported view, which he called Concept Y, the important job of the monitoring is to arrange organizational conditions to ensure that people can accomplish their very own goals best by routing their initiatives towards business incentives. If people find no satisfaction in their job, the monitoring would certainly have little option however to rely on concept X and external control (Deal, 2003). Also while analyzing Lewis's management style, concept X might have appropriated in the procedures department to some extent however the Marketing division would certainly require reliance on Theory Y so as to get the creativity and creativity from the groups.
Tuckman's Synergy Concept: As far as Lewis's problem concerning bringing harmony in between the advertising and marketing division is concerned, this would at first bring about conflict as discussed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's theory displayed in appendix 3, during the preliminary stage of group development, people may not bond, as they are hectic locating their place in the team. By incorporating the marketing and advertising division's job, there might be the same first disconnect which can cause the 2nd stage of 'storming' where the groups test one another. It is only throughout the third phase or 'norming' when they would certainly come with each other to share concepts before the team can bring about harmony in the fourth phase 'carrying out'.
When individuals are provided with adjustment, they enter phase one and also so there may be emotions like despair, unpredictability, stress, rage, anxiety, denial as well as disorientation.The scenario at the marketing department of Concordia Casting Co is comparable so Lewis can obtain comfortable with the suggestion that it is not amazing habits. It is throughout this stage that Lewis will certainly have to provide guidance to the division so that they can find a sense of direction. It can be seen how Krasnow has already made this transition easier by making Lewis obtain entailed in the division a year before his actual separation.
Maslow's Demand hierarchy: The OB problem pertaining to insecurity at the office has actually been activated first of all by the modification in administration and also secondly by the truth that the merging will no longer be initiated. Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has goes over the importance of 'safety needs as being a reduced degree requirement of a human for triggering inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to really feel safe and secure and also unharmed' goes to the 2nd level of needs. Before a staff member can be made to establish mentally, he requires to have his 'Physical 'and 'Safety' needs satisfied. This indicates that unless the workers are made to feel safe regarding their existing work standing in Concordia Casting Co they might not get to 'Self-Fulfillment'. (King, 2009).
SWOT Analysis for Concordia Casting Co Case Study
Ramification of Analysis.
The OB analysis has actually taken a look at different concepts to understand how to handle the existing circumstance handy. The complying with 3 alternatives have actually been suggested to help Lewis deal with the organizational difficulties in the marketing department. Each of these options has actually been suggested for easing the shift required to bring the marketing department in line with the demands of the market and also for making the cultural modification that would certainly adhere to when the existing leader leaves.
Combination of marketing and advertising functions. Separating Adverting as well as Manufacturing features. Combination of Advertising And Marketing with Operations.
Evaluation of Alternatives.
Judith Shapiro who has earlier been spoken with by Lewis during the earlier merger days has proficiency in business-to-business marketing along with agency and retail marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to take care of both advertising and marketing and also marketing functions.
The benefit of this approach is that it will certainly integrate the two features while minimizing the requirement for working with an added resource for marketing. Along with this, Lewis would certainly be heading the advertising and marketing division and regardless her replacement would certainly be required for the present function that she is performing. The negative aspect of this choice is that external hiring might bring about resentment from internal personnel who may be eying the placement of EVP after Lewis takes over Krasnow's placement.
Dividing Adverting and also Manufacturing: Provided the affordable stress as well as high quality work required from the advertising and marketing company, it is advised that Lewis must permit the manufacturing device to be a different feature from the marketing device. Since most advertising agencies had these 2 features as different systems, it makes more sense to adhere to the norm.
Combination of Advertising And Marketing with Procedures: Since Lewis is currently taking treatment of the advertising and operations divisions concurrently; it makes feeling to incorporate the 2 features since she has actually been successfully taking care of both ends. The truth that Lewis has to adjust her administration style for the advertising department recommends that these 2 departments would certainly be culturally varied.
Suggestion.
An analysis of the three choices indicates that assimilation of marketing as well as operations would not be a practical move due to the huge differences in between the two departments despite the fact that currently Lewis is taking care of both. While splitting up of the manufacturing feature may have been a positive relocation for the marketing division, the fact that it would certainly imply positioning a third function under Lewis's wing suggests this must be avoided.
Activity Plan.
Lewis will take control of the function of EVP Marketing after Krasnow leaves.
Advertising and Marketing features would be merged.
Judith Shapiro will be employed to take Lewis's area as SVP of advertising and marketing.
Manufacturing feature will certainly continue to be component of advertising under advertising and marketing feature.
Lewis will separate herself from operations.
A democratic leadership style with employee empowerment will certainly be made use of in advertising and marketing department.
Open door plan and also focus on cross departmental interaction will be aimed at eliminating discord.
Backup plan.
If the combination does not exercise as planned, a contingency strategy would adhere to which would divide the manufacturing function from the advertising feature to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing department without an SVP. In that case the production feature will absolutely be separated by putting it under an SVP manufacturing.