The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study Solution


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Background and Facts

The Risk Management Foundation Of The Harvard Medical Institutions Inc a workplace supplies seller for little as well as medium sized businesses has recently been associated with planning for a merging with its competitor House Deport, which has actually impacted performance degrees in departmentswith the elderly supervisor involved in legal difficulties presented by the government Profession Compensation. With the Marketing Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the role in the near future. With difficulties in the type of a potential cultural modification and also low employee spirits, the company requires a total reengineering effort at the advertising and marketing department.

Issue Statement
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising and marketing division of The Risk Management Foundation Of The Harvard Medical Institutions Inc is enhancing unpredictability in the working environment bring about different obstacles for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting critical decisions given that Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Trade Compensation's treatment at the same time. Provided the fact that the shop has an international presence with branches in UK, U.S.A., Canada and also Germany, political consider each of these nations might have the ability to impact performance or strategic objectives. Federal Trade Payment's antitrust fit against the merger occupied beneficial time of the company's senior monitoring recommending that 'political' factors can have significant ramifications for a worldwide company.

Economic Factors: Economic factors such as the development of local business in the worldwide situation suggest that The Risk Management Foundation Of The Harvard Medical Institutions Inc is growing in a setting where there is potential growth of companies. Truth that store clients are primarily looking for workplace supplies for residence workplaces recommends that the market has a climbing fad of business owners as well as home based services.

Social factors: Social fads in the economic climate show that customers are trying to find benefit in addition to attractive costs. Marketing research demonstrates how the client for The Risk Management Foundation Of The Harvard Medical Institutions Inc lacks recognition concerning locating remedies which can provide a combination of comfort and also low costs.

Technical factors: Technology plays a crucial role in The Risk Management Foundation Of The Harvard Medical Institutions Inc's service method specifically as the company is piloting Modern technology centers which would supply technology sales and assistance in the form of memory upgrades, outer installments. (Summary of PEST in appendix 2).

OB Issues and Symptoms.

Numerous underlying Business Actions problems can be seen in The Risk Management Foundation Of The Harvard Medical Institutions Inc's case as highlighted in this area.

Uneasiness about cultural modification: There is concern regarding a cultural modification that would certainly occur as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Marketing with most of the personnel already showing discontent over this potential relocation. This predicted modification has produced tension in the office which has been paired with the previous stress of preparing the company for a possible merging with House Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is scarcity of employees that can match the stressful atmosphere of a hectic organization. Not just does this lead to trouble in finding the ideal individuals, it places tension on new hires as can not stand up to the speed and pressure that the company expects them to birth.

Dual Reporting Lines: Newcomers locate this business culture cumbersome and also challenging to deal with specifically as dotted line partnerships are meant to be weak in general and also objective setup and also performance examination is still done by the strong line manager. This indicates that novices can lose clarity regarding their corresponding duties and goals particularly as dotted line reporting does not maintain them in direct interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles despite the fact that it had been speculated that the last would certainly take Krasnow's setting came as an impact to her morale. Lewis might have been qualified and suitable for the job but the truth that Kransnow's separation would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from services.

Fear & Work Insecurity: Concern as well as insecurity can be recognized as two significant worries that Lewis would be taking care of specifically as the merging has now be cancelled as well as two senior execs of the advertising department would be leaving. The entire responsibility of the division would be dropping on Lewis's shoulders that would certainly not simply be in charge of brining regarding a cultural adjustment but would additionally need to prove herself in her brand-new duty.

Inappropriate Management Style of Leader: Lewis's administration style and its conflict with the advertising and marketing division's function can additionally be seen as an OB challenge especially as she has been made use of to dealing with issues in the operations department where personnel are educated to concentrate on processes and also get them. The advertising division on the various other hand can be viewed as a team of individuals who are used to being supported by Krasnow that focused much more on result than procedures.

Interdepartmental Differences: Interdepartmental disagreements in between 3 departments, advertising and marketing, merchandizing and also procedures specifically over the allocation of the marketing mix can be recognized as an additional OB concern. The advertising and marketing division does not share the exact same vision as the various other 2 divisions pertaining to the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing as well as operations departments do not agree over the advertising and marketing mix allotment among one an additional either.

Disintegration in Advertising And Marketing Division: Fragmentation between the advertising and marketing departments can be recognized as an additional OB issue which might require additional focus. The reality that the marketing and advertising areas in the advertising and marketing department are detached is stopping both divisions from acquiring from each various other's experience as well as know-how. Assimilation of advertising with merchandising as well as operations would certainly become harder if the advertising division itself is disintegrated which can be an additional potential OB issue.

The Risk Management Foundation Of The Harvard Medical Institutions Inc Analysis

Various theories have actually been used to clarify the situations to obtain additional clarity regarding the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most supervisors think that subordinates are easy as well as lazy, have little passion as well as stand up to modification. The hard variation of this concept emphasized threat, limited controls, dangers as well as punishments. Gradually it produces low efficiency, subtle sabotage and also competition (Offer, 2003). The scenario at The Risk Management Foundation Of The Harvard Medical Institutions Inc is not totally adhering to Theory X, it can be seen that brand-new hires are discovering this atmosphere instead difficult which might ultimately lead to a greater disposition of the administration towards Theory X. Based on McGregor's advocated view, which he called Theory Y, the crucial task of the administration is to prepare business conditions to make sure that individuals can accomplish their own goals best by directing their initiatives in the direction of business rewards. If individuals discover no fulfillment in their work, the management would have little choice yet to depend on concept X and also external control (Offer, 2003). Even while evaluating Lewis's administration style, theory X may have been suitable in the procedures division to some extent yet the Marketing division would need reliance on Theory Y to get the creative thinking and also originality from the teams.

Tuckman's Synergy Theory: As for Lewis's issue concerning bringing consistency between the marketing and advertising department is concerned, this would at first lead to conflict as discussed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, during the first phase of group growth, people might not bond, as they are active discovering their location in the group. By combining the marketing and advertising division's work, there may coincide preliminary separate which might result in the second stage of 'storming' where the groups challenge each other. Nonetheless, it is only throughout the 3rd stage or 'norming' when they would collaborate to share suggestions prior to the team can produce harmony in the 4th stage 'doing'.

Bridges' Shift Version: Based On William Bridge's theory (appendix 4), individuals are quite uncomfortable with adjustment, which is apparent by the scenario at The Risk Management Foundation Of The Harvard Medical Institutions Inc The scenario can be seen as a regular training course of life if is examined according to Bridge's concept where he clarifies that people undergo 3 phases of change when they experience change. 'Ending, shedding and also Letting go', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When people are presented with change, they enter phase one therefore there may be feelings like sadness, uncertainty, stress, anger, anxiety, denial and also disorientation.The circumstance at the marketing department of The Risk Management Foundation Of The Harvard Medical Institutions Inc is comparable so Lewis can obtain comfortable with the concept that it is not extraordinary behavior. In the second phase, there may be a demand to link the space in between the new as well as old society so Lewis might have to face this challenge as soon as Krasnow leaves. There might be low spirits and also reduced efficiency at this stage which need to not be taken as a setback. It is during this stage that Lewis will have to give guidance to the department to ensure that they can locate an orientation. It can be seen just how Krasnow has currently made this shift simpler by making Lewis obtain associated with the department a year before his real departure. As per Bridges' Version, phase three will certainly cause visibility to understanding, High power and also commitment as individuals will embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB concern related to insecurity at the workplace has actually been caused first of all by the modification in administration and also second of all by the fact that the merger will certainly no longer be initiated. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has talks about the importance of 'safety requires as being a reduced degree requirement of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to really feel safe and secure and untouched' goes to the 2nd level of requirements. Before a worker can be made to establish psychologically, he requires to have his 'Physical 'and also 'Safety' needs satisfied. This suggests that unless the employees are made to really feel protected about their existing employment standing in The Risk Management Foundation Of The Harvard Medical Institutions Inc they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for The Risk Management Foundation Of The Harvard Medical Institutions Inc Case Study

Ramification of Analysis.

The OB analysis has actually looked at various theories to recognize just how to deal with the existing circumstance at hand. The complying with 3 choices have been proposed to assist Lewis handle the business obstacles in the advertising and marketing division. Each of these choices has been proposed for alleviating the shift needed to bring the marketing department in line with the needs of the market as well as for making the social modification that would follow as soon as the existing leader leaves.

Combination of marketing and advertising features. Separating Adverting and Production functions. Combination of Advertising with Procedures.

Evaluation of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merging days has competence in business-to-business advertising and marketing along with agency and retail advertising experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both advertising as well as marketing functions.

The advantage of this method is that it will certainly incorporate both features while lowering the requirement for employing an added resource for advertising. In addition to this, Lewis would be heading the advertising department and regardless her replacement would certainly be needed for the present function that she is performing. The negative aspect of this alternative is that external hiring might bring about bitterness from inner employees that might be eying the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting as well as Production: Offered the competitive stress and high quality work required from the advertising and marketing agency, it is recommended that Lewis ought to allow the manufacturing system to be a separate function from the advertising and marketing device. Since a lot of advertising and marketing companies had these two features as different systems, it makes more feeling to comply with the standard.

Integration of Marketing with Operations: Because Lewis is already caring for the marketing and procedures divisions at the same time; it makes sense to incorporate both features considering that she has actually been successfully taking care of both ends. The reality that both departments currently have major differences over appropriation of sources suggests that this assimilation may have the ability to cause harmony particularly as Lewis would certainly be heading both ends.However there are various disadvantages of this move specifically as it would certainly place too much worry over Lewis's shoulders. The truth that Lewis has to adapt her administration design for the advertising division recommends that these two divisions would certainly be culturally diverse. In addition to this, Lewis may not be able to apply one sort of management style to both divisions which might lead to inadequacy in either among both functions.


An examination of the three choices shows that integration of marketing as well as procedures would not be a viable move due to the vast distinctions between the 2 departments regardless of the truth that currently Lewis is taking care of both. While separation of the manufacturing feature may have been a favorable relocation for the advertising and marketing division, the truth that it would certainly mean positioning a third function under Lewis's wing indicates this ought to be prevented.

Activity Strategy.
Lewis will certainly take over the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Manufacturing function will stay part of advertising and marketing under advertising and marketing function.

Lewis will divide herself from procedures.

A democratic leadership style with employee empowerment will be utilized in marketing division.

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

Backup plan.

If the combination does not work out as planned, a contingency plan would adhere to which would separate the manufacturing feature from the advertising function to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising division without an SVP. Because case the manufacturing feature will most definitely be separated by placing it under an SVP production.