Deutsche Allgemeinversicherung Case Study Solution


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Deutsche Allgemeinversicherung Case Study Analysis

Background and Facts

Deutsche Allgemeinversicherung an office products seller for tiny as well as moderate sized businesses has actually just recently been associated with planning for a merging with its competitor Residence Deport, which has impacted effectiveness levels in departmentswith the senior manager involved in lawful issues presented by the government Profession Payment. With the Advertising and marketing Head advancing the information of his separation 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 difficulties in the form of a possible social modification as well as reduced employee spirits, the company requires a complete reengineering effort at the advertising and marketing department.

Problem Statement

The potential cultural change at the advertising and marketing division of Deutsche Allgemeinversicherung is boosting uncertainty in the working environment bring about different difficulties for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting calculated decisions because Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Trade Compensation's intervention in the process. Offered the truth that the store has a worldwide presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries might be able to affect efficiency or critical goals. Federal Profession Payment's antitrust fit against the merging occupied useful time of the company's senior management suggesting that 'political' factors can have serious effects for an international company.

Economic Factors: Economic factors such as the introduction of small businesses in the global situation suggest that Deutsche Allgemeinversicherung is prospering in a setting where there is potential growth of companies. Along with this, truth that store consumers are primarily looking for office products for home offices suggests that the marketplace has a climbing pattern of entrepreneurs and home based organisations.

Social factors: Social trends in the economic climate show that customers are looking for convenience as well as attractive costs. Marketing research demonstrates how the client for Deutsche Allgemeinversicherung does not have understanding regarding discovering options which can supply a mix of comfort and low costs.

Technical factors: Innovation plays a vital function in Deutsche Allgemeinversicherung's service strategy specifically as the organization is piloting Technology facilities which would use modern technology sales as well as assistance in the form of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Organizational Habits concerns can be seen in Deutsche Allgemeinversicherung's case as highlighted in this section.

Apprehensions about cultural modification: There is concern about a cultural change that would certainly happen when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising with most of the employee currently showing unhappiness over this prospective step. This predicted change has developed tension in the workplace which has been coupled with the previous stress of preparing the firm for a possible merger with Residence Deport.

Stressful Work Setting for Newcomers: There is scarcity of workers that can match the difficult environment of a fast-paced organization. Not just does this bring about trouble in locating the appropriate individuals, it places tension on brand-new hires as can not hold up against the rate and also stress that the company expects them to birth.

Dual Reporting Lines: Novices locate this business society difficult and tough to handle especially as populated line partnerships are indicated to be weaker generally and also unbiased setting and efficiency assessment is still done by the strong line supervisor. This implies that novices can shed quality regarding their corresponding duties and purposes particularly as dotted line reporting does not keep them in direct interaction with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles despite the fact that it had been speculated that the latter would take Krasnow's placement came as an impact to her morale. Lewis might have been capable as well as proper for the task but the reality that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Job Instability: Worry and also instability can be determined as 2 significant problems that Lewis would be dealing with specifically as the merging has currently be cancelled as well as two elderly executives of the advertising and marketing division would be leaving. The whole duty of the department would be falling on Lewis's shoulders that would certainly not simply supervise of brining concerning a social adjustment yet would certainly also have to confirm herself in her new role.

Inappropriate Management Design of Leader: Lewis's administration design and also its conflict with the advertising department's function can also be seen as an OB obstacle especially as she has actually been used to handling concerns in the procedures division where employees are educated to concentrate on procedures and also obtain them right. The advertising and marketing division on the various other hand can be viewed as a group of individuals that are utilized to being supported by Krasnow that focused extra on result than procedures.

Interdepartmental Disagreements: Interdepartmental disputes in between three departments, advertising and marketing, merchandizing as well as procedures specifically over the allocation of the advertising and marketing mix can be determined as another OB issue. Although the advertising and marketing department does not share the very same vision as the other two departments regarding the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and procedures departments do not agree over the advertising mix allowance among each other either.

Disintegration in Marketing Division: Fragmentation in between the marketing and advertising departments can be identified as one more OB issue which might require additional interest. The truth that the marketing and advertising sections in the advertising and marketing department are detached is preventing both divisions from acquiring from each other's experience and also expertise. Assimilation of marketing with merchandising and procedures would certainly become harder if the marketing department itself is broken down which can be one more potential OB issue.

Deutsche Allgemeinversicherung Analysis

Different theories have actually been utilized to explain the situations to get more clearness concerning the scenario handy.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that juniors are easy as well as lazy, have little passion and also withstand modification. The situation at Deutsche Allgemeinversicherung is not entirely adhering to Theory X, it can be seen that brand-new hires are locating this atmosphere instead stressful which might at some point lead to a better disposition of the monitoring in the direction of Theory X. Even while assessing Lewis's management style, theory X might have been ideal in the procedures department to some level but the Advertising department would certainly call for dependence on Concept Y in order to get the creativity as well as creativity from the groups.

Tuckman's Team effort Theory: As far as Lewis's concern about bringing harmony between the advertising as well as advertising and marketing department is worried, this would at first lead to contrast as gone over by Bruce Tuckman in his 'Team effort Concept'. By integrating the marketing and marketing department's job, there may be the same initial disconnect which might lead to the second stage of 'storming' where the teams challenge one another.

Bridges' Transition Version: According To William Bridge's theory (appendix 4), people are fairly awkward with change, which is apparent by the situation at Deutsche Allgemeinversicherung The circumstance can be seen as a regular course of life if is studied according to Bridge's concept where he describes that individuals go through 3 phases of transition when they experience modification. 'Closing, shedding and also Letting go', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When people exist with change, they get in phase one and so there may be emotions like unhappiness, unpredictability, disappointment, anger, concern, rejection and also disorientation.The circumstance at the advertising department of Deutsche Allgemeinversicherung is similar so Lewis can get comfy with the concept that it is not amazing behavior. In the 2nd stage, there may be a need to bridge the void in between the new as well as old culture so Lewis may need to face this challenge when Krasnow leaves. There might be reduced spirits as well as reduced productivity at this phase which need to not be taken as a problem. It is throughout this phase that Lewis will have to offer guidance to the division so that they can discover an orientation. It can be seen exactly how Krasnow has actually already made this change less complicated by making Lewis get associated with the department a year prior to his real separation. According to Bridges' Version, stage three will certainly produce openness to knowing, High power and also commitment as individuals will certainly welcome the change (Bridges, 2004).

Maslow's Demand power structure: The OB problem pertaining to instability at the work environment has been set off to start with by the change in management as well as secondly by the fact that the merger will no more be initiated. Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has goes over the relevance of 'protection requires as being a lower level demand of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel secure as well as out of danger' is at the second level of needs. Before a staff member can be made to develop psychologically, he requires to have his 'Physiological 'as well as 'Security' requires met. This suggests that unless the personnel are made to really feel protected concerning their present employment standing in Deutsche Allgemeinversicherung they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Deutsche Allgemeinversicherung Case Study

Ramification of Analysis.

The OB analysis has actually looked at numerous concepts to recognize how to handle the present situation at hand. The complying with three options have actually been proposed to help Lewis take care of the organizational challenges in the advertising division. Each of these options has been proposed for relieving the change required to bring the advertising department in line with the requirements of the market as well as for making the social adjustment that would certainly comply with as soon as the present leader leaves.

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

Assessment of Alternatives.

Integration of Advertising & Marketing Functions: The in-house advertising firm of Deutsche Allgemeinversicherung is already toughness for the company in regards to conserving up on overheads related to marketing as well as promo. Since no new employment has been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the marketing feature, this is a positive opportunity for integrating the advertising and marketing functions. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merger days has proficiency in business-to-business marketing together with firm as well as retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both marketing and advertising features.

The advantage of this method is that it will integrate both functions while decreasing the need for employing an extra source for advertising. Along with this, Lewis would be heading the marketing department and regardless her substitute would be needed for the present role that she is doing. The negative aspect of this alternative is that exterior hiring may cause resentment from internal workers that may be considering the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting as well as Manufacturing: Offered the affordable pressures and top quality work called for from the advertising agency, it is advised that Lewis needs to allow the manufacturing system to be a different function from the advertising unit. Because a lot of advertising agencies had these two features as separate devices, it makes even more sense to follow the norm. Both features might be able to concentrate on their core turns on more efficiently. However, the drawback of this technique would certainly be that additional expenses would certainly need to be birthed for establishing different production features. A manufacturing head might have to be employed which could increase overheads for the organization.

Combination of Advertising with Operations: Because Lewis is currently taking treatment of the advertising and operations divisions concurrently; it makes sense to integrate the 2 features because she has actually been efficiently taking treatment of both ends. The fact that Lewis has to adjust her monitoring design for the advertising division suggests that these 2 divisions would certainly be culturally diverse.


An examination of the 3 choices indicates that integration of advertising and also procedures would certainly not be a possible action due to the substantial differences between the 2 divisions despite the fact that presently Lewis is dealing with both. While splitting up of the production function may have been a desirable step for the marketing department, the reality that it would certainly indicate putting a third function under Lewis's wing implies this need to be prevented.

Activity Strategy.

Lewis will take over the function of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

Manufacturing function will certainly stay component of advertising and marketing under advertising and marketing feature.

Lewis will separate herself from procedures.

A democratic leadership design with employee empowerment will be used in marketing division.

Open up door plan and emphasis on cross department interaction will be targeted at removing dissonance.

Backup plan.

If the combination does not exercise as prepared, a backup plan would comply with which would separate the production function from the marketing feature to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the marketing division without an SVP. Because case the production feature will definitely be divided by placing it under an SVP manufacturing.