Menu

Madison Avenue Digital Media Services A Case Study Analysis

CASE HELP

Home >> Kelloggs >> Madison Avenue Digital Media Services A >>

Madison Avenue Digital Media Services A Case Study Solution

Background and Facts

Madison Avenue Digital Media Services A an office supplies merchant for small as well as average sized organisations has lately been associated with planning for a merging with its rival Residence Deport, which has actually affected effectiveness levels in departmentswith the elderly manager involved in lawful problems presented by the government Trade Compensation. With the Advertising Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the current head of operations has been asked to take the function in the future. With obstacles in the type of a prospective social modification as well as reduced employee spirits, the organization needs a total reengineering effort at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural change at the advertising department of Madison Avenue Digital Media Services A is boosting unpredictability in the workplace causing various difficulties for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing critical decisions since Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Trade Commission's treatment in the process. Provided the truth that the store has a global visibility with branches in UK, USA, Canada as well as Germany, political factors in each of these nations may have the ability to impact efficiency or tactical goals. Federal Profession Commission's antitrust suit against the merger used up valuable time of the organization's elderly management recommending that 'political' factors can have significant effects for a global service.

Economic Factors: Economic factors such as the emergence of small companies in the global circumstance recommend that Madison Avenue Digital Media Services A is thriving in a setting where there is potential development of businesses. Reality that shop consumers are mainly looking for office materials for residence offices recommends that the market has an increasing fad of entrepreneurs and also house based businesses.

Social factors: Social fads in the economic situation reveal that clients are searching for comfort in addition to attractive rates. Marketing research demonstrates how the client for Madison Avenue Digital Media Services A does not have recognition concerning discovering solutions which can offer a mix of convenience and affordable.

Technological factors: Technology plays an important duty in Madison Avenue Digital Media Services A's organisation strategy especially as the company is piloting Modern technology facilities which would certainly offer modern technology sales as well as assistance in the form of memory upgrades, outer installations. (Recap of PARASITE in appendix 2).

OB Issues and Manifestations.

Numerous underlying Organizational Behavior issues can be seen in Madison Avenue Digital Media Services A's case as highlighted in this section.

Apprehensions concerning social adjustment: There is apprehension about a social change that would take place once Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with most of the team member currently revealing discontent over this prospective relocation. This predicted adjustment has actually developed stress in the office which has been combined with the previous tension of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is scarcity of personnel that can match the demanding setting of a hectic company. Not only does this result in problem in discovering the right people, it places anxiety on new hires as can not stand up to the pace and also stress that the company anticipates them to bear.

Dual Reporting Lines: Newbies discover this organizational society difficult and tough to deal with especially as dotted line relationships are suggested to be weaker in general and unbiased setting as well as efficiency evaluation is still done by the solid line supervisor. This suggests that newcomers could lose clearness about their respective roles and also purposes specifically as populated line reporting does not maintain 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 speculated that the latter would take Krasnow's placement came as a blow to her morale. Lewis may have been qualified as well as proper for the task however the fact that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Task Insecurity: Worry and instability can be recognized as 2 major concerns that Lewis would be dealing with especially as the merging has currently be terminated and two senior execs of the marketing department would certainly be leaving. The entire duty of the division would certainly be falling on Lewis's shoulders that would certainly not just be in charge of brining concerning a cultural adjustment yet would certainly additionally need to verify herself in her new function.

Inappropriate Monitoring Design of Leader: Lewis's monitoring style and also its incompatibility with the advertising and marketing division's duty can additionally be seen as an OB difficulty especially as she has been made use of to taking care of issues in the operations department where workers are taught to concentrate on processes and also obtain them. The advertising and marketing department on the other hand can be seen as a group of people that are utilized to being supported by Krasnow that focused more on result than processes.

Interdepartmental Disagreements: Interdepartmental arguments in between 3 divisions, advertising, merchandizing and also operations specifically over the allotment of the marketing mix can be identified as an additional OB concern. The advertising department does not share the very same vision as the other two divisions concerning the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing as well as operations divisions do not agree over the marketing mix allowance among one an additional either.

Fragmentation in Advertising Division: Disintegration between the marketing and advertising departments can be recognized as an additional OB concern which might require further interest. The truth that the advertising and marketing areas in the advertising and marketing division are disconnected is protecting against both departments from acquiring from each other's experience and knowledge. Combination of marketing with merchandising and operations would come to be harder if the marketing department itself is disintegrated which can be an additional prospective OB concern.

Madison Avenue Digital Media Services A Analysis

Various concepts have actually been utilized to explain the circumstances to obtain more clarity concerning the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors believe that juniors are easy and careless, have little ambition and withstand adjustment. The hard variation of this theory emphasized threat, limited controls, hazards and also punishments. In time it produces low performance, subtle sabotage and also rivalry (Offer, 2003). The scenario at Madison Avenue Digital Media Services A is not completely adhering to Theory X, it can be seen that brand-new hires are locating this setting instead stressful which might ultimately lead to a greater disposition of the administration towards Concept X. Based on McGregor's advocated sight, which he called Concept Y, the vital task of the management is to set up organizational conditions to ensure that people can attain their very own objectives best by guiding their initiatives in the direction of organizational rewards. If people locate no complete satisfaction in their work, the monitoring would certainly have little selection however to depend on concept X as well as exterior control (Offer, 2003). Also while examining Lewis's administration style, theory X may have appropriated in the operations department somewhat but the Advertising and marketing division would certainly call for dependence on Theory Y so as to get the imagination and also creativity from the groups.

Tuckman's Synergy Theory: Regarding Lewis's issue about bringing consistency in between the marketing and advertising department is concerned, this would at first result in conflict as gone over by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, during the preliminary phase of group growth, individuals might not bond, as they are hectic finding their location in the group. By incorporating the advertising and marketing department's job, there may coincide preliminary detach which can result in the second stage of 'storming' where the groups test one another. It is just throughout the third phase or 'norming' when they would come together to share suggestions before the group can bring about harmony in the fourth stage 'executing'.

Bridges' Change Version: According To William Bridge's concept (appendix 4), people are quite awkward with adjustment, which is obvious by the situation at Madison Avenue Digital Media Services A The scenario can be seen as a normal program of life if is researched based on Bridge's concept where he describes that individuals undergo 3 phases of shift when they experience modification. 'End, losing and Letting go', The Neutral Zone and 'The New Starting' (Bridges, 2004). When individuals are presented with adjustment, they get in stage one therefore there might be feelings like unhappiness, uncertainty, irritation, anger, anxiety, denial and also disorientation.The scenario at the advertising division of Madison Avenue Digital Media Services A is comparable so Lewis can get comfortable with the suggestion that it is not amazing habits. In the 2nd stage, there might be a need to bridge the gap between the brand-new as well as old culture so Lewis might have to face this ordeal once Krasnow leaves. There might be low spirits and also low productivity at this stage which need to not be taken as a trouble. It is during this stage that Lewis will have to give guidance to the department to make sure that they can locate an orientation. It can be seen just how Krasnow has actually currently made this transition much easier by making Lewis obtain associated with the division a year before his real departure. According to Bridges' Model, stage 3 will bring about visibility to knowing, High power and also commitment as people will welcome the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has talks about the importance of 'safety and security requires as being a lower degree demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel protected as well as out of danger' is at the 2nd level of requirements. Before a worker can be made to establish mentally, he requires to have his 'Physical 'and 'Safety and security' needs met.

SWOT Analysis for Madison Avenue Digital Media Services A Case Study



Implication of Analysis.

The OB analysis has taken a look at numerous concepts to comprehend just how to manage the existing scenario available. The following three options have actually been recommended to assist Lewis handle the organizational challenges in the marketing department. Each of these options has actually been suggested for easing the transition needed to bring the marketing department in line with the demands of the marketplace and also for making the cultural modification that would certainly comply with once the present leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting and also Production functions. Assimilation of Advertising with Procedures.

Examination of Alternatives.

Combination of Advertising And Marketing & Marketing Functions: The in-house advertising company of Madison Avenue Digital Media Services A is already stamina for the organization in regards to saving up on expenses related to advertising and marketing as well as promotion. Because no brand-new recruitment has been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the marketing function, this is a desirable possibility for integrating the advertising and marketing functions. Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merger days has expertise in business-to-business marketing together with firm as well as retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both marketing and advertising functions.

The advantage of this strategy is that it will certainly incorporate both functions while reducing the requirement for working with an additional source for advertising and marketing. Along with this, Lewis would be heading the advertising division and in any case her substitute would be needed for the present role that she is carrying out. The drawback of this alternative is that exterior hiring may cause animosity from internal personnel who might be looking at the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting as well as Manufacturing: Offered the competitive pressures as well as high top quality work needed from the advertising firm, it is advised that Lewis ought to allow the production device to be a different feature from the marketing system. Because the majority of marketing companies had these two features as separate units, it makes even more feeling to follow the standard.

Combination of Advertising And Marketing with Procedures: Since Lewis is already taking care of the marketing as well as procedures divisions all at once; it makes feeling to integrate the 2 features considering that she has actually been efficiently taking care of both ends. The truth that Lewis has to adjust her monitoring style for the advertising and marketing division recommends that these 2 divisions would certainly be culturally diverse.

Recommendation.



An assessment of the 3 choices suggests that combination of advertising and marketing and operations would not be a viable action due to the large differences between the 2 divisions in spite of the reality that presently Lewis is managing both. While separation of the manufacturing feature may have been a desirable relocation for the advertising division, the truth that it would certainly suggest placing a 3rd feature under Lewis's wing suggests this must be prevented.

Action Plan.
Recommendation
Lewis will certainly take over the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Manufacturing feature will remain part of advertising under advertising feature.

Lewis will certainly separate herself from procedures.

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

Open door plan and focus on cross department interaction will certainly be focused on getting rid of dissonance.

Backup strategy.

If the integration does not exercise as intended, a backup strategy would certainly adhere to which would certainly divide the production feature from the advertising and marketing feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising department without an SVP. In that case the production feature will certainly be separated by positioning it under an SVP production.