Background and FactsConcordia Casting Co an office products merchant for tiny and also average sized services has actually recently been associated with preparing for a merging with its rival Residence Deport, which has affected performance levels in departmentswith the elderly manager associated with legal complications put forth by the federal Trade Payment. With the Advertising and marketing 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 function in the future. With obstacles in the kind of a potential cultural modification and also low staff member morale, the organization needs a full reengineering initiative at the marketing department.
The potential cultural modification at the advertising and marketing division of Concordia Casting Co is raising uncertainty in the workplace resulting in numerous obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis
Political Factors: Political factors play a major function in affecting strategic decisions because Stapes Inc. had to desert its plans of combining with Office Deport after the Federal Profession Commission's intervention at the same time. Offered the fact that the store has a worldwide existence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these countries may be able to affect performance or calculated objectives. Federal Trade Compensation's antitrust fit versus the merger took up important time of the company's elderly administration recommending that 'political' factors can have significant implications for an international business.
Economic Factors: Economic factors such as the appearance of small businesses in the international scenario suggest that Concordia Casting Co is flourishing in an atmosphere where there is possible growth of companies. Fact that store consumers are primarily looking for office products for home workplaces recommends that the market has a rising trend of entrepreneurs and also house based businesses.
Social factors: Social trends in the economic climate show that consumers are trying to find comfort as well as attractive costs. Marketing research shows how the customer for Concordia Casting Co does not have recognition regarding discovering solutions which can use a combination of ease and also affordable.
Technological factors: Technology plays a crucial role in Concordia Casting Co's organisation technique specifically as the organization is piloting Technology centers which would certainly offer innovation sales as well as support in the type of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).
OB Issues and also Symptoms.
Several underlying Business Behavior problems can be seen in Concordia Casting Co's case as highlighted in this area.
Apprehensions concerning social modification: There is apprehension concerning a social modification that would happen once Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising with the majority of the team member currently revealing unhappiness over this prospective step. This predicted change has actually produced stress and anxiety in the office which has been combined with the past stress and anxiety of preparing the company for a possible merger with Home Deport.
Demanding Job Setting for Newcomers: There is lack of employees that can match the demanding atmosphere of a busy company. Not only does this bring about trouble in discovering the appropriate individuals, it puts stress on brand-new hires as can not withstand the pace and also pressure that the company expects them to birth.
Twin Coverage Lines: Beginners discover this organizational society difficult and also challenging to manage especially as dotted line relationships are suggested to be weaker generally and unbiased setup and also efficiency assessment is still done by the strong line manager. This indicates that newcomers could shed quality regarding their corresponding duties and also purposes especially as dotted line reporting does not keep them in direct interaction with the strong line supervisors.
Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles despite the fact that it had actually been hypothesized that the latter would take Krasnow's placement came as a strike to her morale. Lewis might have been capable as well as appropriate for the task but the reality that Kransnow's separation would make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.
Concern & Job Insecurity: Anxiety and insecurity can be identified as two major concerns that Lewis would certainly be handling especially as the merging has currently be cancelled and two elderly execs of the advertising and marketing department would certainly be leaving. The entire obligation of the division would certainly be dropping on Lewis's shoulders who would not just be in charge of brining concerning a social change yet would certainly additionally have to show herself in her new function.
Inappropriate Management Style of Leader: Lewis's administration style and also its conflict with the advertising and marketing department's duty can likewise be viewed as an OB challenge specifically as she has actually been made use of to dealing with concerns in the operations department where employees are shown to concentrate on procedures as well as obtain them right. The advertising division on the other hand can be viewed as a group of individuals who are utilized to being nurtured by Krasnow that concentrated extra on output than processes.
Interdepartmental Disagreements: Interdepartmental disputes between three departments, advertising, merchandizing as well as procedures respectively over the allocation of the advertising and marketing mix can be recognized as another OB worry. Although the advertising and marketing department does not share the exact same vision as the various other two divisions regarding the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and also operations departments do not concur over the marketing mix appropriation amongst one another either.
Fragmentation in Advertising And Marketing Division: Fragmentation between the advertising and marketing departments can be identified as another OB issue which might need further focus. The reality that the marketing and advertising sections in the advertising and marketing division are disconnected is protecting against both divisions from getting from each various other's experience as well as competence. Combination of marketing with retailing and procedures would certainly end up being more difficult if the marketing department itself is disintegrated which can be one more prospective OB issue.
Concordia Casting Co Analysis
Numerous concepts have been utilized to discuss the situations to obtain further clarity regarding the circumstance available.
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of managers think that juniors are passive as well as lazy, have little aspiration and also stand up to modification. The circumstance at Concordia Casting Co is not totally adhering to Theory X, it can be seen that new hires are locating this setting rather stressful which may ultimately lead to a greater disposition of the management towards Theory X. Also while assessing Lewis's administration design, concept X might have been ideal in the operations department to some extent however the Advertising and marketing department would require reliance on Theory Y in order to obtain the creative thinking and also originality from the teams.
Tuckman's Team effort Theory: Regarding Lewis's issue regarding bringing consistency in between the advertising and marketing division is worried, this would originally result in contrast as talked about by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, during the preliminary stage of group advancement, individuals might not bond, as they are active finding their area in the team. By integrating the marketing and advertising department's work, there might be the same preliminary detach which can result in the 2nd phase of 'storming' where the groups challenge each other. However, it is just during the third phase or 'norming' when they would come together to share suggestions prior to the group can produce synergy in the 4th stage 'carrying out'.
When people are provided with adjustment, they get in stage one and so there might be emotions like despair, unpredictability, frustration, rage, concern, denial as well as disorientation.The situation at the advertising and marketing division of Concordia Casting Co is similar so Lewis can get comfy with the suggestion that it is not remarkable actions. It is during this stage that Lewis will have to provide guidance to the department so that they can discover a sense of instructions. It can be seen exactly how Krasnow has currently made this shift much easier by making Lewis get involved in the department a year before his real separation.
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has discusses the importance of 'safety and security requires as being a lower level requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel protected as well as out of risk' is at the 2nd degree of needs. Prior to a staff member can be made to develop mentally, he needs to have his 'Physiological 'as well as 'Safety' requires fulfilled.
SWOT Analysis for Concordia Casting Co Case Study
Effects of Analysis.
The OB analysis has actually considered different theories to understand exactly how to handle the present situation at hand. The following three options have been recommended to assist Lewis take care of the organizational challenges in the marketing division. Each of these choices has actually been recommended for easing the shift needed to bring the marketing division according to the demands of the market and also for making the social modification that would certainly follow when the current leader leaves.
Integration of advertising and marketing features. Separating Adverting as well as Manufacturing functions. Assimilation of Marketing with Operations.
Evaluation of Alternatives.
Integration of Marketing & Advertising And Marketing Functions: The internal advertising agency of Concordia Casting Co is already strength for the company in terms of conserving up on overheads connected to advertising and marketing as well as promotion. Given that no brand-new recruitment has been done after Bridget Cole's separation with the reporting line being straight designated to Krasnow for the advertising feature, this is a desirable opportunity for integrating the advertising and marketing features. Judith Shapiro that has earlier been spoken with by Lewis during the earlier merger days has know-how in business-to-business advertising in addition to agency and also retail advertising experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to manage both marketing and advertising functions.
The advantage of this technique is that it will certainly integrate the two features while reducing the need for working with an added resource for marketing. In addition to this, Lewis would be heading the advertising and marketing division and also all the same her replacement would certainly be needed for the present duty that she is executing. The downside of this alternative is that exterior hiring may bring about bitterness from interior employees who might be considering the position of EVP after Lewis takes control of Krasnow's position.
Dividing Adverting and Manufacturing: Offered the competitive stress as well as high top quality job needed from the advertising agency, it is recommended that Lewis must permit the manufacturing device to be a separate function from the advertising and marketing unit. Considering that the majority of advertising companies had these 2 functions as different systems, it makes even more sense to adhere to the standard.
Assimilation of Marketing with Operations: Because Lewis is currently dealing with the advertising and marketing as well as operations divisions concurrently; it makes sense to incorporate the two functions because she has been successfully looking after both ends. The reality that the two divisions already have major distinctions over appropriation of sources suggests that this combination might have the ability to cause harmony specifically as Lewis would be heading both ends.However there are various disadvantages of this move particularly as it would place excessive burden over Lewis's shoulders. The reality that Lewis needs to adapt her management style for the advertising division recommends that these two divisions would certainly be culturally varied. In addition to this, Lewis may not be able to apply one kind of leadership style to both divisions which can result in ineffectiveness in either among both features.
An examination of the three choices indicates that integration of marketing and also procedures would certainly not be a practical relocation because of the huge differences in between the two departments although that presently Lewis is dealing with both. While separation of the production function may have been a beneficial move for the marketing division, the truth that it would imply putting a third feature under Lewis's wing means this should be prevented as well. The integration of the marketing division is the very best option in regards to getting the optimum results from the department. An action plan for this alternative is discussed below.
Lewis will certainly take control of the role of EVP Marketing after Krasnow leaves.
Marketing and advertising functions would certainly be combined.
Judith Shapiro will certainly be employed to take Lewis's place as SVP of marketing and advertising.
Manufacturing feature will certainly remain part of marketing under marketing feature.
Lewis will divide herself from procedures.
An autonomous leadership design with employee empowerment will be made use of in marketing department.
Open up door plan and also focus on cross department interaction will certainly be targeted at getting rid of disharmony.
If the assimilation does not work out as prepared, a backup strategy would certainly follow which would divide the production feature from the marketing feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the production feature will absolutely be divided by positioning it under an SVP manufacturing.