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Embracing Digital Technology A New Strategic Imperative Case Study Solution

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Background and Facts

Embracing Digital Technology A New Strategic Imperative an office materials retailer for little as well as average sized companies has just recently been associated with preparing for a merging with its competitor Home Deport, which has impacted efficiency degrees in departmentswith the elderly supervisor associated with lawful complications put forth by the government Trade Commission. With the Advertising Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the future. With difficulties in the kind of a prospective social modification and also low employee morale, the company is in need of a total reengineering effort at the advertising and marketing division.

Problem Statement

The potential social adjustment at the advertising department of Embracing Digital Technology A New Strategic Imperative is increasing unpredictability in the workplace bring about numerous obstacles for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in influencing critical decisions because Stapes Inc. had to abandon its plans of merging with Office Deport after the Federal Trade Compensation's intervention in the process. Given the fact that the shop has a worldwide visibility with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these countries may have the ability to influence efficiency or tactical objectives. Federal Trade Payment's antitrust suit versus the merging took up beneficial time of the organization's elderly monitoring recommending that 'political' factors can have severe implications for a global business.

Economic Factors: Financial factors such as the introduction of small companies in the international scenario suggest that Embracing Digital Technology A New Strategic Imperative is growing in a setting where there is prospective development of organisations. Truth that store customers are primarily looking for workplace materials for residence workplaces recommends that the market has a rising trend of entrepreneurs and residence based services.

Social factors: Social trends in the economic situation reveal that clients are seeking benefit along with attractive costs. Marketing research demonstrates how the client for Embracing Digital Technology A New Strategic Imperative does not have recognition about locating services which can offer a mix of benefit and also inexpensive.

Technological factors: Innovation plays an important role in Embracing Digital Technology A New Strategic Imperative's company method especially as the organization is piloting Innovation facilities which would provide innovation sales and assistance in the form of memory upgrades, peripheral installments. (Summary of PEST in appendix 2).

OB Issues as well as Effects.

Several underlying Business Actions issues can be seen in Embracing Digital Technology A New Strategic Imperative's case as highlighted in this section.

Worries concerning cultural adjustment: There is concern regarding a cultural modification that would certainly happen when Todd Krasnow leaves from his position as the Exec Vice President of Advertising with a lot of the employee already showing unhappiness over this possible move. This anticipated adjustment has produced stress in the office which has actually been paired with the past anxiety of preparing the company for a potential merging with House Deport.

Difficult Task Environment for Newcomers: There is scarcity of employees that can match the stressful atmosphere of a hectic organization. Not just does this bring about trouble in discovering the appropriate individuals, it places stress on brand-new hires as can not hold up against the speed and pressure that the organization expects them to birth.

Dual Coverage Lines: Newbies discover this business culture troublesome and hard to handle specifically as dotted line relationships are meant to be weak generally and also unbiased setting as well as efficiency examination is still done by the strong line supervisor. This implies that newbies might lose clarity concerning their respective roles as well as goals particularly as populated line reporting does not keep them in straight communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles despite the fact that it had been speculated that the last would take Krasnow's setting came as a strike to her spirits. Lewis might have been qualified and also appropriate for the job however the truth that Kransnow's departure would make Coles a direct report to Lewis may have been the factor for Coles' resignation from services.

Worry & Task Insecurity: Worry and insecurity can be determined as two significant concerns that Lewis would certainly be taking care of specifically as the merger has currently be terminated as well as 2 elderly execs of the marketing department would be leaving. The entire responsibility of the department would certainly be dropping on Lewis's shoulders who would not just supervise of brining regarding a cultural modification however would additionally have to prove herself in her new role.

Incompatible Management Style of Leader: Lewis's administration design and its conflict with the marketing division's function can also be viewed as an OB challenge particularly as she has actually been utilized to handling concerns in the procedures division where personnel are taught to focus on processes and also obtain them right. The advertising and marketing division on the other hand can be viewed as a team of people who are utilized to being supported by Krasnow that focused more on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental disputes between 3 departments, advertising and marketing, merchandizing and procedures respectively over the appropriation of the marketing mix can be identified as an additional OB worry. The advertising department does not share the very same vision as the various other two divisions pertaining to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and procedures divisions do not concur over the marketing mix allotment among one another either.

Fragmentation in Advertising Department: Disintegration between the advertising and marketing divisions can be determined as an additional OB problem which can require further attention. The fact that the advertising and marketing areas in the advertising department are disconnected is avoiding both divisions from gaining from each various other's experience as well as competence. Assimilation of advertising and marketing with retailing as well as procedures would come to be more difficult if the marketing department itself is broken down which can be an additional potential OB issue.

Embracing Digital Technology A New Strategic Imperative Analysis

Different concepts have actually been used to explain the scenarios to obtain more quality regarding the scenario at hand.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most managers believe that subordinates are easy and careless, have little ambition as well as resist modification. The difficult version of this concept stressed browbeating, limited controls, threats and punishments. Over time it generates reduced performance, subtle sabotage and competition (Bargain, 2003). The scenario at Embracing Digital Technology A New Strategic Imperative is not completely following Theory X, it can be seen that brand-new hires are locating this setting instead demanding which might at some point lead to a higher disposition of the administration towards Theory X. Based on McGregor's supported sight, which he called Theory Y, the necessary task of the management is to prepare business problems so that individuals can attain their very own objectives best by directing their initiatives in the direction of organizational benefits. If people locate no contentment in their job, the administration would have little option but to rely upon concept X and also external control (Bargain, 2003). Also while analyzing Lewis's administration style, concept X may have been suitable in the procedures division to some extent however the Marketing department would certainly need reliance on Concept Y to get the imagination as well as creativity from the groups.

Tuckman's Synergy Concept: As far as Lewis's concern regarding bringing consistency in between the marketing as well as advertising and marketing division is worried, this would initially lead to conflict as reviewed by Bruce Tuckman in his 'Synergy Concept'. By incorporating the marketing and also advertising and marketing division's job, there might be the exact same first detach which can lead to the second phase of 'storming' where the groups challenge one another.

When individuals are presented with adjustment, they go into stage one and so there might be emotions like sadness, uncertainty, disappointment, temper, worry, rejection and disorientation.The circumstance at the advertising and marketing department of Embracing Digital Technology A New Strategic Imperative is comparable so Lewis can obtain comfortable with the suggestion that it is not extraordinary actions. It is throughout this phase that Lewis will have to give support to the department so that they can locate a sense of instructions. It can be seen exactly how Krasnow has actually already made this shift easier by making Lewis obtain included in the division a year prior to his actual separation.

Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has discusses the significance of 'safety and security requires as being a reduced degree demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel safe and secure and out of danger' is at the second degree of demands. Prior to a worker can be made to create emotionally, he needs to have his 'Physical 'and 'Safety and security' requires satisfied.

SWOT Analysis for Embracing Digital Technology A New Strategic Imperative Case Study



Ramification of Analysis.

The OB analysis has looked at numerous concepts to comprehend how to manage the current scenario available. The complying with three options have actually been proposed to aid Lewis manage the business challenges in the marketing department. Each of these alternatives has actually been suggested for relieving the shift needed to bring the marketing division in line with the demands of the market and for making the cultural change that would adhere to once the existing leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and Manufacturing functions. Combination of Advertising with Procedures.

Analysis of Alternatives.

Combination of Advertising And Marketing & Marketing Functions: The in-house advertising agency of Embracing Digital Technology A New Strategic Imperative is currently strength for the company in terms of conserving up on expenses connected to advertising and marketing as well as promotion. Given that no brand-new employment has been done after Bridget Cole's separation with the coverage line being straight appointed to Krasnow for the advertising and marketing feature, this is a favorable possibility for incorporating the marketing and advertising functions. Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merging days has competence in business-to-business advertising and marketing together with company and also retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both advertising and marketing 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 advertising. Lewis would be heading the advertising and marketing department and also in any kind of case her substitute would certainly be required for the existing function that she is doing. The drawback of this alternative is that exterior hiring might cause animosity from internal personnel who may be considering the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting as well as Manufacturing: Offered the affordable pressures and also high top quality work required from the marketing company, it is recommended that Lewis should allow the manufacturing device to be a different function from the advertising system. Considering that a lot of marketing agencies had these two features as different devices, it makes even more sense to adhere to the standard.

Assimilation of Advertising And Marketing with Procedures: Considering that Lewis is currently dealing with the advertising and marketing as well as procedures departments simultaneously; it makes sense to incorporate both functions considering that she has actually been efficiently looking after both ends. The reality that both departments currently have significant distinctions over appropriation of sources suggests that this assimilation might be able to produce consistency especially as Lewis would certainly be heading both ends.However there are various negative aspects of this step specifically as it would put too much problem over Lewis's shoulders. The fact that Lewis has to adjust her monitoring design for the advertising division suggests that these two departments would certainly be culturally varied. Lewis might not be able to use one type of leadership design to both divisions which could result in ineffectiveness in either one of the 2 functions.

Suggestion.



An analysis of the 3 choices indicates that assimilation of marketing and procedures would not be a feasible move due to the large differences in between the two departments regardless of the fact that currently Lewis is dealing with both. While splitting up of the production feature might have been a favorable relocation for the marketing division, the truth that it would certainly indicate putting a third function under Lewis's wing indicates this should be stayed clear of.

Activity Strategy.

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

Advertising and Marketing functions would certainly be merged.

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

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

Lewis will certainly divide herself from operations.

A democratic management design with staff member empowerment will be used in advertising department.

Open door plan and also focus on cross department interaction will certainly be targeted at eliminating disharmony.

Backup plan.

If the combination does not work out as intended, a contingency plan would certainly adhere to which would divide the production feature from the advertising and marketing feature to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising and marketing department without an SVP. In that case the production feature will most definitely be separated by placing it under an SVP production.