Samsung Electronics Tv In An Era Of Convergence Case Study Analysis


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Samsung Electronics Tv In An Era Of Convergence Case Study Analysis

Background and Facts

Samsung Electronics Tv In An Era Of Convergence a workplace materials merchant for little and medium sized businesses has actually just recently been associated with preparing for a merging with its rival Residence Deport, which has impacted efficiency degrees in departmentswith the senior manager associated with legal problems presented by the government Profession Payment. With the Marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the current head of operations has been asked to take the duty in the future. With challenges in the type of a possible social modification and reduced employee morale, the organization requires a total reengineering effort at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The potential social change at the advertising and marketing division of Samsung Electronics Tv In An Era Of Convergence is increasing unpredictability in the working environment causing various challenges for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting critical decisions given that Stapes Inc. had to abandon its plans of merging with Office Deport after the Federal Trade Commission's treatment at the same time. Offered the truth that the shop has a worldwide presence with branches in UK, USA, Canada and also Germany, political factors in each of these nations might be able to affect performance or calculated objectives. Federal Trade Payment's antitrust fit versus the merging occupied beneficial time of the organization's elderly monitoring recommending that 'political' factors can have severe ramifications for a global service.

Economic Factors: Financial factors such as the introduction of local business in the global scenario suggest that Samsung Electronics Tv In An Era Of Convergence is growing in a setting where there is potential development of companies. Along with this, reality that store customers are primarily seeking office supplies for office suggests that the marketplace has a rising pattern of entrepreneurs and also home services.

Social factors: Social patterns in the economic situation reveal that clients are trying to find ease as well as appealing rates. Marketing research shows how the customer for Samsung Electronics Tv In An Era Of Convergence does not have understanding about discovering options which can offer a mix of comfort and also affordable.

Technical factors: Technology plays a vital duty in Samsung Electronics Tv In An Era Of Convergence's service strategy specifically as the company is piloting Technology centers which would certainly supply innovation sales and support in the kind of memory upgrades, outer setups. (Summary of BUG in appendix 2).

OB Issues as well as Symptoms.

Numerous underlying Organizational Actions problems can be seen in Samsung Electronics Tv In An Era Of Convergence's case as highlighted in this section.

Apprehensions regarding social change: There is uneasiness regarding a cultural adjustment that would occur when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with most of the employee currently showing discontent over this possible action. This expected change has created anxiety in the work environment which has actually been combined with the previous tension of preparing the company for a potential merger with Residence Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is scarcity of workers that can match the demanding setting of a busy organization. Not only does this bring about problem in finding the ideal people, it places anxiety on new hires as can not stand up to the speed as well as stress that the organization anticipates them to bear.

Twin Reporting Lines: Newcomers find this business culture cumbersome as well as tough to handle especially as populated line connections are suggested to be weak as a whole as well as objective setup as well as efficiency assessment is still done by the solid line manager. This suggests that newcomers might lose quality concerning their respective duties and also purposes particularly as populated line reporting does not keep them in direct communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been hypothesized that the latter would take Krasnow's setting came as a strike to her spirits. Lewis might have been capable and proper for the job yet the reality that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Task Instability: Worry and instability can be identified as two major concerns that Lewis would certainly be handling especially as the merger has actually now be terminated as well as 2 senior execs of the marketing department would be leaving. The whole obligation of the department would be dropping on Lewis's shoulders that would certainly not simply supervise of brining about a cultural change yet would additionally have to show herself in her new duty.

Inappropriate Monitoring Design of Leader: Lewis's monitoring style as well as its incompatibility with the marketing division's function can also be seen as an OB obstacle especially as she has been used to managing issues in the operations division where personnel are instructed to focus on processes and also get them. The advertising division on the other hand can be viewed as a group of individuals who are made use of to being supported by Krasnow that concentrated extra on output than procedures.

Interdepartmental Disputes: Interdepartmental differences between three departments, advertising and marketing, merchandizing and operations specifically over the allotment of the advertising and marketing mix can be determined as another OB problem. Although the advertising and marketing division does not share the very same vision as the other 2 divisions relating to the aloocation of the advertising mix twoards promos and advertsing, the merchandizing as well as procedures divisions do not concur over the marketing mix allotment amongst each other either.

Fragmentation in Marketing Division: Fragmentation between the marketing and advertising departments can be recognized as one more OB issue which might need additional interest. The reality that the advertising and marketing sections in the marketing division are separated is avoiding both divisions from gaining from each various other's experience as well as expertise. Combination of advertising with retailing and operations would end up being more difficult if the advertising department itself is degenerated which can be an additional potential OB worry.

Samsung Electronics Tv In An Era Of Convergence Analysis

Various concepts have been made use of to describe the scenarios to obtain more clearness about the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers think that subordinates are easy and also lazy, have little passion and resist adjustment. The situation at Samsung Electronics Tv In An Era Of Convergence is not entirely complying with Theory X, it can be seen that new hires are finding this environment rather difficult which may eventually lead to a better disposition of the administration in the direction of Theory X. Also while assessing Lewis's monitoring design, theory X might have been appropriate in the procedures department to some level however the Advertising department would certainly require dependence on Theory Y in order to obtain the creative thinking and creativity from the teams.

Tuckman's Team effort Theory: As much as Lewis's worry regarding bringing consistency in between the marketing as well as advertising and marketing division is worried, this would originally lead to contrast as gone over by Bruce Tuckman in his 'Team effort Theory'. By combining the marketing and also advertising and marketing division's job, there might be the very same initial disconnect which can lead to the 2nd stage of 'storming' where the teams test one an additional.

Bridges' Transition Model: As per William Bridge's theory (appendix 4), people are rather uneasy with adjustment, which is noticeable by the circumstance at Samsung Electronics Tv In An Era Of Convergence The situation can be seen as a normal program of life if is researched as per Bridge's theory where he explains that people go through 3 phases of transition when they experience adjustment. 'End, losing and also Releasing', The Neutral Area and 'The New Beginning' (Bridges, 2004). When individuals exist with adjustment, they go into phase one therefore there may be emotions like unhappiness, unpredictability, frustration, rage, anxiety, denial and also disorientation.The situation at the marketing department of Samsung Electronics Tv In An Era Of Convergence is comparable so Lewis can get comfy with the suggestion that it is not phenomenal behavior. In the 2nd phase, there might be a requirement to bridge the gap between the brand-new and also old culture so Lewis may have to encounter this challenge as soon as Krasnow leaves. There may be low morale and also reduced performance at this stage which should not be taken as an obstacle. It is throughout this phase that Lewis will certainly need to provide advice to the department to ensure that they can find an orientation. It can be seen just how Krasnow has actually currently made this transition easier by making Lewis get involved in the department a year prior to his actual separation. Based on Bridges' Version, stage 3 will certainly bring about visibility to discovering, High energy and commitment as people will embrace the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has talks about the significance of 'security requires as being a lower level demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel protected and also out of threat' is at the 2nd degree of requirements. Before a staff member can be made to create psychologically, he requires to have his 'Physical 'and also 'Safety' requires satisfied.

SWOT Analysis for Samsung Electronics Tv In An Era Of Convergence Case Study

Implication of Analysis.

The OB analysis has actually looked at numerous theories to recognize exactly how to handle the current situation at hand. The adhering to three choices have been suggested to aid Lewis manage the business challenges in the marketing department. Each of these options has actually been proposed for alleviating the transition needed to bring the advertising division according to the needs of the market as well as for making the cultural modification that would follow when the present leader leaves.

Combination of marketing and advertising functions. Separating Adverting and also Production features. Combination of Advertising And Marketing with Workflow.

Assessment of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merger days has knowledge in business-to-business advertising along with agency as well as retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to handle both marketing as well as marketing features.

The benefit of this method is that it will certainly integrate the two functions while minimizing the demand for employing an extra resource for advertising. Lewis would be heading the advertising and marketing division and also in any case her replacement would certainly be required for the existing duty that she is performing. The negative aspect of this option is that exterior hiring may produce resentment from interior employees that may be considering the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting as well as Production: Given the affordable stress and also excellent quality job called for from the ad agency, it is advised that Lewis must enable the production device to be a different feature from the advertising and marketing system. Because many ad agency had these 2 features as separate systems, it makes more feeling to comply with the norm. Both functions might be able to focus on their core triggers more efficiently. However, the negative aspect of this method would be that added costs would certainly have to be borne for establishing separate production functions. A manufacturing head might have to be employed which can boost expenses for the company.

Combination of Advertising And Marketing with Procedures: Since Lewis is already caring for the advertising and operations departments simultaneously; it makes good sense to integrate both functions since she has been effectively dealing with both ends. The fact that the two departments currently have major differences over allocation of sources recommends that this combination may be able to produce consistency especially as Lewis would be heading both ends.However there are different drawbacks of this action particularly as it would place too much worry over Lewis's shoulders. The reality that Lewis has to adapt her management design for the marketing division recommends that these two departments would be culturally varied. Lewis may not be able to use one kind of leadership design to both divisions which might result in inadequacy in either one of the 2 functions.


An examination of the 3 options suggests that assimilation of advertising and marketing and operations would certainly not be a practical relocation due to the huge distinctions in between the two departments regardless of the truth that presently Lewis is managing both. While splitting up of the manufacturing feature may have been a positive move for the advertising department, the reality that it would certainly imply placing a 3rd feature under Lewis's wing indicates this need to be stayed clear of.

Action Strategy.
Lewis will take over the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would be merged.

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

Production feature will stay part of advertising and marketing under advertising function.

Lewis will certainly divide herself from procedures.

A democratic leadership design with worker empowerment will certainly be used in marketing department.

Open door policy as well as emphasis on cross departmental interaction will certainly be targeted at eliminating discord.

Backup plan.

If the integration does not exercise as intended, a contingency strategy would adhere to which would certainly divide the manufacturing function from the advertising function to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing department without an SVP. Because case the manufacturing feature will certainly be divided by putting it under an SVP manufacturing.