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Embracing Digital Technology A New Strategic Imperative Case Study Analysis

CASE SOLUTION

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Embracing Digital Technology A New Strategic Imperative Case Study Analysis

Background and Facts

Embracing Digital Technology A New Strategic Imperative a workplace materials seller for small and also medium sized organisations has just recently been involved in preparing for a merger with its rival Home Deport, which has actually impacted performance levels in departmentswith the senior supervisor associated with lawful problems presented by the government Trade Commission. With the Marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the future. With challenges in the type of a prospective social change and also reduced worker spirits, the company is in need of a complete reengineering effort at the advertising department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective cultural change at the advertising and marketing division of Embracing Digital Technology A New Strategic Imperative is raising unpredictability in the workplace leading to numerous 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 significant duty in impacting tactical choices given that Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Payment's treatment in the process. Given the reality that the shop has an international existence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these nations may have the ability to affect efficiency or strategic objectives. Federal Trade Compensation's antitrust suit versus the merger used up important time of the organization's elderly management suggesting that 'political' factors can have severe ramifications for a global company.

Economic Factors: Economic factors such as the emergence of small businesses in the global circumstance suggest that Embracing Digital Technology A New Strategic Imperative is prospering in a setting where there is possible growth of companies. Along with this, fact that store clients are mostly looking for workplace products for office suggests that the market has a climbing trend of entrepreneurs and also home based businesses.

Social factors: Social fads in the economy reveal that consumers are searching for convenience in addition to appealing rates. Market research demonstrates how the customer for Embracing Digital Technology A New Strategic Imperative does not have understanding concerning locating solutions which can supply a mix of ease and inexpensive.

Technical factors: Technology plays a crucial function in Embracing Digital Technology A New Strategic Imperative's organisation approach particularly as the organization is piloting Technology facilities which would certainly supply modern technology sales as well as assistance in the type of memory upgrades, peripheral installations. (Summary of PEST in appendix 2).

OB Issues and Manifestations.

Numerous underlying Business Habits issues can be seen in Embracing Digital Technology A New Strategic Imperative's case as highlighted in this area.

Worries concerning social adjustment: There is worry concerning a cultural change that would take place when Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Marketing with the majority of the employee already showing discontent over this possible step. This predicted change has developed stress in the workplace which has actually been paired with the past stress and anxiety of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is scarcity of personnel that can match the stressful environment of a busy company. Not just does this result in trouble in discovering the best individuals, it puts stress on new hires as can not stand up to the pace and also stress that the company anticipates them to bear.

Double Reporting Lines: Newcomers discover this organizational culture difficult and also challenging to cope with specifically as populated line relationships are indicated to be weaker generally and unbiased setup as well as performance assessment is still done by the solid line manager. This implies that novices could lose clearness concerning their particular duties and also objectives especially as dotted line coverage does not keep them in direct interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been hypothesized that the last would certainly take Krasnow's position came as a blow to her spirits. Lewis might have been capable as well as appropriate for the work yet the reality that Kransnow's departure would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Job Insecurity: Concern as well as instability can be identified as two major issues that Lewis would certainly be dealing with specifically as the merger has now be cancelled and also two elderly execs of the advertising and marketing division would be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders that would not just be in charge of brining concerning a social adjustment yet would certainly also need to show herself in her new duty.

Incompatible Monitoring Design of Leader: Lewis's management style and also its conflict with the advertising and marketing division's duty can likewise be seen as an OB challenge especially as she has been made use of to handling issues in the operations division where workers are educated to concentrate on processes and also obtain them. The marketing division on the various other hand can be viewed as a group of individuals who are used to being supported by Krasnow that concentrated a lot more on result than processes.

Interdepartmental Disputes: Interdepartmental disagreements between 3 departments, marketing, merchandizing as well as procedures respectively over the allotment of the advertising and marketing mix can be recognized as one more OB worry. Although the advertising division does not share the exact same vision as the other two divisions concerning the aloocation of the marketing mix twoards promos and advertsing, the merchandizing and procedures divisions do not agree over the advertising and marketing mix allotment amongst each other either.

Fragmentation in Advertising Division: Disintegration between the marketing and advertising departments can be determined as another OB problem which can require more interest. The reality that the advertising and marketing areas in the advertising division are detached is avoiding both departments from obtaining from each other's experience and also expertise. Assimilation of advertising with retailing and also operations would end up being harder if the marketing division itself is degenerated which can be an additional potential OB problem.

Embracing Digital Technology A New Strategic Imperative Analysis

Different theories have actually been made use of to describe the situations to obtain additional clarity about the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most managers think that subordinates are passive and careless, have little passion and stand up to adjustment. The situation at Embracing Digital Technology A New Strategic Imperative is not completely complying with Theory X, it can be seen that brand-new hires are locating this environment rather difficult which might at some point lead to a greater inclination of the management in the direction of Concept X. Even while assessing Lewis's administration design, concept X may have been ideal in the procedures department to some level but the Advertising division would certainly call for dependence on Concept Y in order to get the imagination and originality from the groups.

Tuckman's Team effort Concept: Regarding Lewis's concern regarding bringing consistency in between the advertising and marketing department is worried, this would initially cause conflict as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, throughout the preliminary stage of group development, people may not bond, as they are busy locating their location in the team. By incorporating the marketing and advertising division's work, there might be the same first separate which could cause the 2nd phase of 'storming' where the teams test each other. Nonetheless, it is only throughout the 3rd phase or 'norming' when they would certainly come together to share ideas before the team can produce synergy in the fourth stage 'executing'.

Bridges' Transition Version: Based On William Bridge's theory (appendix 4), people are quite unpleasant with modification, which is evident by the scenario at Embracing Digital Technology A New Strategic Imperative The situation can be viewed as a typical training course of life if is studied as per Bridge's concept where he discusses that individuals experience 3 stages of transition when they experience adjustment. 'Closing, losing and also Letting go', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people are presented with modification, they go into stage one therefore there may be feelings like despair, uncertainty, irritation, temper, anxiety, denial and also disorientation.The scenario at the marketing division of Embracing Digital Technology A New Strategic Imperative is similar so Lewis can get comfy with the idea that it is not phenomenal actions. In the 2nd stage, there might be a demand to bridge the gap in between the new and old society so Lewis may have to face this experience once Krasnow leaves. There may be low spirits and also reduced performance at this phase which must not be taken as a setback. It is during this phase that Lewis will certainly have to give guidance to the department to make sure that they can discover an orientation. It can be seen how Krasnow has currently made this change simpler by making Lewis obtain associated with the department a year prior to his actual separation. Based on Bridges' Version, stage 3 will bring about openness to learning, High energy and also dedication as individuals will certainly welcome the change (Bridges, 2004).
Vrio Analysis
Maslow's Demand hierarchy: The OB issue pertaining to insecurity at the work environment has been set off first of all by the modification in management and second of all by the truth that the merger will no more be started. Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has reviews the importance of 'safety and security requires as being a lower degree demand of a human for causing inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to really feel safe as well as unharmed' is at the 2nd degree of needs. Prior to a worker can be made to establish emotionally, he requires to have his 'Physical 'as well as 'Safety' requires met. This suggests that unless the workers are made to feel protected regarding their existing employment status in Embracing Digital Technology A New Strategic Imperative they might not get to 'Self-Fulfillment'. (King, 2009).

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



Implication of Analysis.

The OB analysis has actually taken a look at various concepts to comprehend exactly how to deal with the current scenario at hand. The adhering to 3 alternatives have actually been recommended to assist Lewis manage the organizational difficulties in the marketing division. Each of these choices has been suggested for relieving the change needed to bring the advertising and marketing department according to the requirements of the market and for making the social modification that would adhere to as soon as the current leader leaves.

Integration of marketing and advertising functions. Separating Adverting and Manufacturing functions. Integration of Advertising with Workflow.

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merging days has experience in business-to-business advertising along with firm and retail advertising experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to handle both advertising and marketing and advertising and marketing functions.

The advantage of this strategy is that it will incorporate both functions while minimizing the need for employing an extra source for advertising and marketing. Along with this, Lewis would be heading the advertising and marketing division and also all the same her substitute would be required for the present role that she is executing. The disadvantage of this choice is that exterior hiring may bring about animosity from inner employees who might be eying the position of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and also Production: Provided the competitive stress and high top quality job called for from the marketing firm, it is recommended that Lewis must permit the production unit to be a separate feature from the advertising unit. Considering that most advertising firms had these two features as different systems, it makes more feeling to adhere to the norm.

Combination of Advertising with Workflows: Because Lewis is currently caring for the advertising and operations departments at the same time; it makes sense to integrate both functions given that she has been efficiently taking care of both ends. The reality that both divisions already have major distinctions over appropriation of resources recommends that this assimilation might be able to produce consistency especially as Lewis would be heading both ends.However there are various disadvantages of this relocation particularly as it would put excessive concern over Lewis's shoulders. The fact that Lewis has to adapt her administration design for the marketing department recommends that these 2 divisions would be culturally varied. In addition to this, Lewis may not have the ability to use one kind of management style to both divisions which might result in inadequacy in either among the two functions.

Suggestion.



An evaluation of the three choices indicates that assimilation of advertising and marketing and also procedures would not be a practical step due to the huge differences between both departments although that presently Lewis is handling both. While separation of the manufacturing function might have been a favorable action for the advertising and marketing division, the truth that it would certainly mean positioning a 3rd function under Lewis's wing suggests this must be prevented. The assimilation of the advertising department is the best choice in regards to obtaining the optimal results from the department. An action plan for this choice is reviewed below.

Action Plan.
Recommendation
Lewis will take over the function of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be merged.

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

Manufacturing feature will certainly remain part of advertising under marketing function.

Lewis will divide herself from operations.

A democratic leadership style with worker empowerment will certainly be made use of in marketing division.

Open door plan as well as emphasis on cross department interaction will certainly be focused on removing discord.

Contingency strategy.

If the combination does not exercise as intended, a contingency strategy would follow which would divide the manufacturing function from the advertising function to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising and marketing division without an SVP. In that case the production feature will absolutely be separated by putting it under an SVP production.