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Smoothpay Growing A Mobile Payment User Base Case Study Analysis

Background and Facts

Smoothpay Growing A Mobile Payment User Base an office materials seller for little and moderate sized companies has actually just recently been involved in preparing for a merging with its competitor Home Deport, which has influenced performance levels in departmentswith the elderly manager associated with legal complications presented by the federal Trade Compensation. With the Marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the near future. With obstacles in the type of a possible social change and reduced worker morale, the company is in need of a full reengineering initiative at the advertising division.

Trouble Declaration

The potential social adjustment at the marketing department of Smoothpay Growing A Mobile Payment User Base is raising unpredictability in the workplace bring about different obstacles 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 impacting tactical decisions since Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Trade Commission's intervention while doing so. Given the reality that the store has a worldwide visibility with branches in UK, USA, Canada and also Germany, political consider each of these countries may be able to influence efficiency or tactical goals. Federal Trade Commission's antitrust match against the merging used up beneficial time of the company's elderly management suggesting that 'political' factors can have severe ramifications for an international organisation.

Economic Factors: Economic factors such as the introduction of local business in the worldwide situation recommend that Smoothpay Growing A Mobile Payment User Base is growing in an environment where there is prospective growth of companies. Reality that store consumers are mainly looking for workplace materials for home offices suggests that the market has a rising fad of business owners and also residence based services.

Social factors: Social patterns in the economic climate reveal that clients are trying to find convenience in addition to eye-catching rates. Market research shows how the client for Smoothpay Growing A Mobile Payment User Base lacks awareness regarding finding options which can use a mix of comfort and also inexpensive.

Technical factors: Modern technology plays an essential function in Smoothpay Growing A Mobile Payment User Base's company method particularly as the company is piloting Modern technology centers which would use innovation sales and assistance in the form of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues and also Effects.

Numerous underlying Business Habits issues can be seen in Smoothpay Growing A Mobile Payment User Base's case as highlighted in this section.

Uneasiness concerning social change: There is worry about a social adjustment that would occur once Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with the majority of the personnel already revealing unhappiness over this potential move. This expected change has produced stress and anxiety in the office which has actually been coupled with the past tension of preparing the firm for a potential merging with House Deport.

Demanding Work Atmosphere for Newcomers: There is shortage of workers that can match the demanding atmosphere of a busy organization. Not only does this lead to difficulty in discovering the ideal people, it puts stress on new hires as can not endure the rate and also stress that the organization anticipates them to bear.

Double Coverage Lines: Newbies locate this business society cumbersome and difficult to deal with particularly as populated line connections are indicated to be weaker generally and unbiased setup and also performance assessment is still done by the strong line manager. This indicates that newcomers can shed quality about their corresponding duties and also purposes particularly as dotted line coverage does not maintain them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been speculated that the latter would take Krasnow's position came as a blow to her spirits. Lewis might have been capable and suitable for the task however the reality that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.

Worry & Job Instability: Anxiety as well as insecurity can be recognized as 2 major concerns that Lewis would be dealing with specifically as the merging has currently be terminated and also two senior executives of the advertising department would certainly be leaving. The entire obligation of the division would be falling on Lewis's shoulders that would certainly not just be in charge of brining regarding a social adjustment yet would certainly additionally have to verify herself in her new duty.

Incompatible Monitoring Style of Leader: Lewis's management design as well as its conflict with the marketing department's duty can likewise be viewed as an OB difficulty specifically as she has actually been made use of to managing issues in the operations division where employees are educated to focus on procedures and also get them right. The advertising and marketing division on the various other hand can be seen as a team of individuals that are used to being nurtured by Krasnow that focused much more on outcome than processes.

Interdepartmental Disputes: Interdepartmental arguments in between 3 departments, advertising and marketing, merchandizing and operations respectively over the allocation of the advertising mix can be determined as an additional OB problem. The advertising and marketing division does not share the very same vision as the various other two departments regarding the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and operations divisions do not agree over the marketing mix appropriation amongst one an additional either.

Disintegration in Advertising Department: Disintegration in between the advertising and marketing divisions can be identified as an additional OB concern which could require more focus. The fact that the advertising and marketing areas in the marketing department are separated is avoiding both divisions from acquiring from each various other's experience and knowledge. Assimilation of advertising with merchandising as well as operations would end up being more difficult if the marketing division itself is disintegrated which can be another potential OB worry.

Smoothpay Growing A Mobile Payment User Base Analysis

Numerous theories have actually been utilized to explain the scenarios to get more quality concerning the scenario handy.

McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that juniors are passive and careless, have little passion and also withstand adjustment. The difficult variation of this concept stressed browbeating, tight controls, risks and also penalties. With time it creates low performance, refined sabotage as well as competition (Deal, 2003). The circumstance at Smoothpay Growing A Mobile Payment User Base is not entirely complying with Concept X, it can be seen that new hires are locating this atmosphere rather difficult which might eventually lead to a higher inclination of the management in the direction of Concept X. According to McGregor's promoted view, which he called Concept Y, the crucial job of the monitoring is to prepare business conditions so that people can achieve their own objectives best by directing their efforts in the direction of organizational benefits. If people locate no satisfaction in their work, the management would certainly have little choice but to rely on concept X as well as exterior control (Bargain, 2003). Even while evaluating Lewis's monitoring style, concept X may have been suitable in the procedures department to some extent but the Marketing department would certainly need dependence on Concept Y in order to get the creativity as well as originality from the groups.

Tuckman's Teamwork Theory: As far as Lewis's issue regarding bringing harmony in between the marketing and also advertising and marketing department is worried, this would at first lead to clash as discussed by Bruce Tuckman in his 'Teamwork Theory'. By integrating the advertising and marketing and advertising and marketing department's work, there might be the very same initial detach which can lead to the 2nd phase of 'storming' where the groups challenge one another.

Bridges' Transition Model: Based On William Bridge's concept (appendix 4), people are fairly unpleasant with change, which is noticeable by the circumstance at Smoothpay Growing A Mobile Payment User Base The circumstance can be seen as a regular training course of life if is researched as per Bridge's concept where he discusses that people experience three phases of shift when they experience modification. 'Ending, losing as well as Releasing', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When individuals are presented with modification, they go into phase one therefore there may be emotions like sadness, uncertainty, frustration, rage, fear, denial and also disorientation.The scenario at the advertising department of Smoothpay Growing A Mobile Payment User Base is comparable so Lewis can obtain comfortable with the concept that it is not extraordinary behavior. In the 2nd stage, there may be a demand to bridge the space between the new and also old culture so Lewis may have to face this ordeal when Krasnow leaves. There might be low spirits as well as low efficiency at this phase which must not be taken as a problem. It is throughout this phase that Lewis will have to provide 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 change less complicated by making Lewis obtain involved in the division a year before his actual separation. Based on Bridges' Model, stage three will bring about openness to learning, High power and also commitment as people will certainly accept the adjustment (Bridges, 2004).

Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has talks about the significance of 'safety and security needs as being a reduced level need of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel secure and out of threat' is at the 2nd level of needs. Before a staff member can be made to create mentally, he needs to have his 'Physiological 'and also 'Safety and security' needs met.

SWOT Analysis for Smoothpay Growing A Mobile Payment User Base Case Study

Ramification of Analysis.

The OB analysis has actually checked out various concepts to understand how to manage the existing circumstance available. The following three choices have been proposed to aid Lewis handle the business difficulties in the marketing department. Each of these choices has actually been recommended for alleviating the transition required to bring the advertising division according to the demands of the market and for making the cultural modification that would certainly adhere to when the present leader leaves.

Assimilation of advertising and marketing features. Separating Adverting and Manufacturing features. Integration of Marketing with Operations.

Analysis of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The in-house advertising agency of Smoothpay Growing A Mobile Payment User Base is already strength for the company in regards to conserving up on overheads related to advertising and also promo. Since no new recruitment has been done after Bridget Cole's separation with the reporting line being straight appointed to Krasnow for the marketing feature, this is a beneficial possibility for incorporating the advertising and marketing functions. Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merger days has proficiency in business-to-business marketing together with agency as well as retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to handle both advertising and marketing features.

The advantage of this approach is that it will certainly incorporate the two features while reducing the demand for working with an additional source for marketing. Lewis would be heading the marketing department and also in any case her replacement would be needed for the existing function that she is performing. The downside of this choice is that exterior hiring may bring about resentment from inner employees who may be eying the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Production: Provided the competitive pressures and high quality job required from the advertising agency, it is advised that Lewis must permit the manufacturing system to be a different function from the advertising device. Because most ad agency had these 2 functions as separate units, it makes more feeling to comply with the norm. Along with this, both features may be able to focus on their core triggers more effectively. The disadvantage of this method would be that extra expenses would certainly have to be borne for establishing up different manufacturing features. In addition to this, a production head might have to be hired which can boost overheads for the organization.

Combination of Advertising with Workflows: Because Lewis is already dealing with the advertising and marketing and operations departments at the same time; it makes good sense to incorporate the two features given that she has actually been efficiently dealing with both ends. The reality that both divisions currently have significant distinctions over allotment of resources suggests that this assimilation might be able to cause harmony especially as Lewis would certainly be heading both ends.However there are various disadvantages of this move specifically as it would certainly put way too much burden over Lewis's shoulders. The fact that Lewis has to adjust her administration style for the advertising division suggests that these two divisions would be culturally diverse. Lewis may not be able to apply one type of leadership style to both departments which can result in inadequacy in either one of the 2 functions.


An evaluation of the three alternatives shows that combination of advertising and marketing as well as procedures would certainly not be a practical action due to the vast distinctions in between both departments although that currently Lewis is handling both. While separation of the manufacturing feature may have been a desirable relocation for the advertising and marketing department, the reality that it would indicate placing a 3rd feature under Lewis's wing indicates this should be stayed clear of as well. The assimilation of the marketing department is the very best option in regards to obtaining the ideal results from the department. An action prepare for this alternative is gone over below.

Action Plan.

Lewis will certainly take control of the function of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Production function will certainly continue to be part of advertising and marketing under marketing function.

Lewis will certainly separate herself from procedures.

An autonomous management style with worker empowerment will be utilized in marketing division.

Open up door plan and focus on cross department communication will be aimed at getting rid of discord.

Contingency plan.

If the integration does not exercise as planned, a backup plan would comply with which would divide the production function from the marketing function to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the marketing department without an SVP. In that case the manufacturing feature will absolutely be divided by putting it under an SVP manufacturing.