Facebook The First Ten Years Case Study Analysis


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Facebook The First Ten Years Case Study Analysis

Background and Facts

Facebook The First Ten Years an office supplies store for small as well as moderate sized companies has just recently been involved in planning for a merging with its rival Residence Deport, which has influenced performance degrees in departmentswith the elderly supervisor involved in lawful difficulties put forth by the government Trade Commission. With the Advertising Head advancing the information of his departure from the business in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the near future. With obstacles in the type of a prospective social adjustment and low worker spirits, the company needs a total reengineering initiative at the advertising and marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the marketing division of Facebook The First Ten Years is raising unpredictability in the workplace resulting in various 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 function in impacting tactical decisions considering that Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Profession Commission's treatment in the process. Given the reality that the store has a worldwide presence with branches in UK, USA, Canada and also Germany, political consider each of these nations might have the ability to affect performance or strategic goals. Federal Profession Commission's antitrust suit versus the merger occupied useful time of the company's elderly administration suggesting that 'political' factors can have serious ramifications for a global service.

Economic Factors: Financial factors such as the development of small companies in the global scenario suggest that Facebook The First Ten Years is growing in an environment where there is potential development of businesses. Along with this, fact that shop customers are primarily searching for workplace supplies for office suggests that the market has a climbing fad of entrepreneurs and home based services.

Social factors: Social fads in the economic climate reveal that customers are searching for convenience in addition to appealing prices. Market research demonstrates how the client for Facebook The First Ten Years lacks recognition about finding solutions which can offer a combination of comfort and inexpensive.

Technical factors: Technology plays an essential duty in Facebook The First Ten Years's service strategy especially as the company is piloting Innovation centers which would provide technology sales and also support in the kind of memory upgrades, peripheral setups. (Summary of BUG in appendix 2).

OB Issues and also Symptoms.

A number of underlying Organizational Actions problems can be seen in Facebook The First Ten Years's case as highlighted in this area.

Worries concerning cultural adjustment: There is apprehension concerning a social change that would occur as soon as Todd Krasnow leaves from his placement as the Executive Vice President of Advertising with the majority of the employee already showing discontent over this potential action. This anticipated modification has developed tension in the work environment which has actually been combined with the past tension of preparing the company for a potential merging with Home Deport.
Pest Analysis
Demanding Work Environment for Newcomers: There is lack of personnel that can match the stressful environment of a busy company. Not only does this bring about difficulty in locating the ideal individuals, it places tension on brand-new hires as can not stand up to the speed as well as pressure that the organization expects them to bear.

Dual Coverage Lines: Newbies discover this business culture difficult as well as challenging to cope with specifically as dotted line partnerships are implied to be weak as a whole and unbiased setup and performance analysis is still done by the strong line supervisor. This implies that beginners can lose quality regarding their particular duties as well as goals especially as dotted line coverage does not maintain them in straight communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had been speculated that the latter would certainly take Krasnow's setting came as a strike to her spirits. Lewis might have been capable and also ideal for the task but the reality that Kransnow's separation would make Coles a straight record to Lewis might have been the reason for Coles' resignation from services.

Fear & Work Instability: Fear and insecurity can be determined as two major concerns that Lewis would certainly be managing especially as the merger has actually now be cancelled and also 2 elderly execs of the advertising and marketing division would be leaving. The whole duty of the department would be dropping on Lewis's shoulders who would certainly not just supervise of brining regarding a social adjustment however would certainly likewise need to confirm herself in her brand-new function.

Inappropriate Monitoring Style of Leader: Lewis's administration design as well as its conflict with the advertising department's function can additionally be seen as an OB challenge particularly as she has been used to taking care of problems in the procedures division where workers are educated to focus on processes as well as obtain them right. The advertising division on the various other hand can be seen as a team of individuals that are made use of to being nurtured by Krasnow that concentrated extra on result than procedures.

Interdepartmental Disputes: Interdepartmental arguments between three divisions, advertising, merchandizing as well as operations respectively over the allowance of the advertising mix can be determined as one more OB problem. Although the advertising and marketing division does not share the very same vision as the other two departments pertaining to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing as well as procedures departments do not concur over the advertising and marketing mix allotment among one another either.

Disintegration in Advertising And Marketing Department: Fragmentation between the advertising and marketing divisions can be identified as another OB issue which could require more focus. The reality that the marketing and advertising sections in the advertising division are disconnected is preventing both divisions from gaining from each various other's experience and also knowledge. Integration of marketing with retailing as well as operations would end up being more difficult if the advertising and marketing department itself is disintegrated which can be an additional potential OB worry.

Facebook The First Ten Years Analysis

Numerous concepts have actually been made use of to explain the conditions to get further clarity regarding the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that juniors are passive as well as careless, have little ambition and also withstand change. The hard version of this theory stressed threat, limited controls, risks as well as punishments. In time it generates reduced productivity, refined sabotage as well as competition (Bargain, 2003). The scenario at Facebook The First Ten Years is not totally following Concept X, it can be seen that new hires are discovering this environment rather demanding which may eventually lead to a better inclination of the management towards Concept X. Based on McGregor's advocated view, which he called Concept Y, the important task of the administration is to prepare business conditions to make sure that people can accomplish their very own goals best by routing their efforts towards organizational benefits. If people locate no fulfillment in their work, the management would certainly have little option yet to count on theory X as well as external control (Deal, 2003). Also while analyzing Lewis's monitoring style, theory X may have been suitable in the operations division somewhat however the Marketing division would require reliance on Theory Y in order to get the imagination as well as originality from the groups.

Tuckman's Teamwork Concept: As far as Lewis's worry about bringing consistency in between the advertising and marketing division is concerned, this would at first result in conflict as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, throughout the initial phase of team advancement, people may not bond, as they are active finding their location in the group. By integrating the advertising and marketing division's work, there may be the same initial separate which could lead to the 2nd stage of 'storming' where the teams challenge one another. However, it is just throughout the third phase or 'norming' when they would certainly integrate to share suggestions before the team can bring about synergy in the 4th phase 'performing'.

When individuals are offered with change, they get in phase one as well as so there might be emotions like despair, unpredictability, aggravation, anger, worry, denial as well as disorientation.The situation at the advertising and marketing department of Facebook The First Ten Years is comparable so Lewis can obtain comfortable with the suggestion that it is not remarkable behavior. It is throughout this stage that Lewis will certainly have to offer guidance to the division so that they can find a feeling of direction. It can be seen just how Krasnow has actually already made this shift simpler by making Lewis get entailed in the department a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has talks about the relevance of 'safety and security requires as being a lower degree demand of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel protected and out of risk' is at the 2nd level of needs. Prior to a staff member can be made to create psychologically, he requires to have his 'Physiological 'as well as 'Security' requires fulfilled.

SWOT Analysis for Facebook The First Ten Years Case Study

Effects of Analysis.

The OB analysis has actually checked out various theories to understand how to deal with the present situation available. The complying with three alternatives have been proposed to assist Lewis handle the business challenges in the advertising and marketing department. Each of these choices has been recommended for easing the transition needed to bring the advertising division in line with the demands of the marketplace and also for making the social adjustment that would comply with once the current leader leaves.

Combination of advertising and marketing features. Dividing Adverting as well as Production functions. Combination of Advertising And Marketing with Workflow.

Examination of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis during the earlier merging days has competence in business-to-business advertising along with firm as well as retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both advertising and marketing features.

The benefit of this method is that it will integrate the two functions while reducing the requirement for employing an extra source for advertising and marketing. Along with this, Lewis would be heading the advertising and marketing department and also regardless her substitute would be needed for the existing function that she is doing. The negative aspect of this choice is that exterior hiring may produce animosity from interior personnel who may be eying the setting of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Manufacturing: Provided the affordable stress as well as top quality job called for from the ad agency, it is advised that Lewis must enable the manufacturing system to be a different function from the marketing system. Given that most advertising agencies had these 2 functions as different systems, it makes even more sense to follow the norm. Along with this, both functions may have the ability to concentrate on their core triggers much more efficiently. The disadvantage of this approach would certainly be that additional expenses would have to be birthed for setting up different production features. In addition to this, a production head might need to be employed which can raise overheads for the organization.

Assimilation of Marketing with Workflows: Since Lewis is currently caring for the marketing and also operations departments concurrently; it makes good sense to integrate both features given that she has been successfully caring for both ends. The fact that both departments already have major differences over allotment of sources suggests that this combination might be able to bring about consistency specifically as Lewis would certainly be heading both ends.However there are various downsides of this relocation particularly as it would certainly place way too much burden over Lewis's shoulders. The reality that Lewis has to adjust her administration style for the advertising and marketing department recommends that these 2 departments would certainly be culturally diverse. Lewis might not be able to apply one kind of leadership design to both departments which could result in inefficiency in either one of the 2 functions.


An assessment of the three choices suggests that assimilation of advertising and marketing and also operations would certainly not be a viable move due to the large distinctions in between the 2 departments despite the truth that presently Lewis is taking care of both. While separation of the production function may have been a favorable step for the advertising and marketing department, the fact that it would mean positioning a third function under Lewis's wing indicates this must be avoided.

Action Strategy.
Lewis will take over the role of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would be merged.

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

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

Lewis will certainly separate herself from procedures.

An autonomous leadership style with employee empowerment will be utilized in advertising division.

Open up door policy and focus on cross departmental interaction will certainly be aimed at removing disharmony.

Contingency strategy.

If the combination does not work out as planned, a contingency strategy would certainly adhere to which would certainly divide the manufacturing feature from the advertising function to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the marketing division without an SVP. In that case the production feature will definitely be separated by positioning it under an SVP production.