Dodlas Dilemma Case Study Help


Home >> Chicago Booth >> Dodlas Dilemma >>

Dodlas Dilemma Case Study Help

Background and Facts

Dodlas Dilemma a workplace supplies retailer for small as well as average sized companies has recently been involved in planning for a merging with its competitor House Deport, which has actually impacted effectiveness levels in departmentswith the elderly supervisor involved in legal problems put forth by the federal Profession Compensation. With the Marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the existing head of procedures has been asked to take the function in the near future. With challenges in the form of a possible cultural adjustment as well as low worker spirits, the organization wants a complete reengineering effort at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The prospective social modification at the advertising and marketing department of Dodlas Dilemma is enhancing unpredictability in the working environment leading to different difficulties 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 function in impacting strategic decisions since Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Trade Commission's treatment at the same time. Given the truth that the store has a worldwide existence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries may be able to affect performance or critical goals. Federal Trade Compensation's antitrust fit versus the merging took up beneficial time of the organization's senior management suggesting that 'political' factors can have significant implications for a worldwide company.

Economic Factors: Financial factors such as the introduction of small businesses in the worldwide scenario recommend that Dodlas Dilemma is prospering in an environment where there is prospective growth of organisations. Along with this, reality that shop clients are primarily searching for workplace materials for home offices recommends that the marketplace has a rising pattern of entrepreneurs as well as home based organisations.

Social factors: Social trends in the economic climate reveal that customers are trying to find convenience in addition to eye-catching prices. Marketing research shows how the client for Dodlas Dilemma does not have understanding about discovering solutions which can use a combination of ease and also low costs.

Technical factors: Technology plays an important role in Dodlas Dilemma's service technique particularly as the organization is piloting Modern technology centers which would certainly supply technology sales and support in the form of memory upgrades, outer installments. (Recap of BUG in appendix 2).

OB Issues and Effects.

Several underlying Organizational Behavior problems can be seen in Dodlas Dilemma's case as highlighted in this area.

Concerns regarding social adjustment: There is uneasiness regarding a social change that would happen as soon as Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with most of the employee currently revealing discontent over this potential action. This predicted change has created stress and anxiety in the work environment which has actually been coupled with the previous anxiety of preparing the company for a potential merger with House Deport.
Pest Analysis
Difficult Task Setting for Newcomers: There is shortage of workers that can match the stressful setting of a busy company. Not only does this bring about trouble in discovering the best individuals, it puts anxiety on brand-new hires as can not endure the speed and pressure that the company anticipates them to bear.

Double Coverage Lines: Newbies find this business society troublesome and also hard to deal with specifically as populated line partnerships are indicated to be weaker generally and unbiased setting and performance analysis is still done by the solid line manager. This suggests that newbies could lose clearness about their corresponding roles as well as goals especially as dotted line reporting does not maintain them in direct communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles although it had been guessed that the latter would certainly take Krasnow's placement came as a strike to her spirits. Lewis might have been qualified and ideal for the job however the fact that Kransnow's separation would make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Worry & Task Instability: Worry and also insecurity can be determined as two significant problems that Lewis would be taking care of especially as the merger has currently be cancelled as well as 2 senior executives of the marketing division would certainly be leaving. The whole duty of the division would be falling on Lewis's shoulders that would not just be in charge of brining regarding a cultural change however would likewise need to confirm herself in her new role.

Inappropriate Monitoring Design of Leader: Lewis's management style as well as its conflict with the advertising and marketing division's function can likewise be seen as an OB difficulty specifically as she has actually been made use of to handling issues in the operations department where workers are educated to concentrate on processes and also obtain them right. The advertising division on the other hand can be viewed as a team of people who are made use of to being supported by Krasnow that focused more on result than procedures.

Interdepartmental Disputes: Interdepartmental disputes in between 3 divisions, advertising and marketing, merchandizing as well as operations respectively over the allotment of the advertising mix can be recognized as another OB concern. The advertising and marketing division does not share the same vision as the other two departments concerning the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing as well as procedures departments do not agree over the advertising and marketing mix allocation among one another either.

Disintegration in Advertising And Marketing Division: Disintegration in between the advertising and marketing divisions can be determined as another OB concern which might require more interest. The truth that the advertising and marketing sections in the advertising division are disconnected is stopping both divisions from acquiring from each various other's experience and also proficiency. Combination of advertising with merchandising as well as operations would certainly come to be more difficult if the marketing division itself is broken down which can be an additional prospective OB worry.

Dodlas Dilemma Analysis

Numerous theories have been used to explain the scenarios to obtain additional clarity about the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that subordinates are easy and also lazy, have little ambition and withstand adjustment. The situation at Dodlas Dilemma is not entirely adhering to Theory X, it can be seen that brand-new hires are finding this setting rather demanding which may eventually lead to a higher disposition of the administration in the direction of Theory X. Even while analyzing Lewis's administration design, theory X might have been appropriate in the operations department to some level but the Advertising department would certainly need reliance on Concept Y in order to obtain the imagination as well as originality from the groups.

Tuckman's Synergy Concept: As much as Lewis's problem about bringing consistency in between the advertising as well as marketing division is worried, this would originally lead to conflict as talked about by Bruce Tuckman in his 'Synergy Theory'. By combining the advertising and also marketing division's work, there may be the exact same first detach which could lead to the 2nd phase of 'storming' where the teams test one another.

When individuals are presented with change, they get in stage one and also so there might be emotions like unhappiness, unpredictability, stress, anger, anxiety, rejection and disorientation.The circumstance at the advertising and marketing department of Dodlas Dilemma is comparable so Lewis can get comfortable with the concept that it is not extraordinary habits. It is throughout this stage that Lewis will certainly have to offer assistance to the department so that they can find a sense of direction. It can be seen just how Krasnow has already made this shift much easier by making Lewis obtain involved in the division a year before his real departure.
Vrio Analysis
Maslow's Demand hierarchy: The OB concern pertaining to insecurity at the office has actually been set off firstly by the modification in management as well as second of all by the reality that the merging will certainly no more be launched. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has goes over the relevance of 'safety and security needs as being a lower degree requirement of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to feel safe and out of danger' is at the 2nd degree of needs. Before an employee can be made to create psychologically, he needs to have his 'Physical 'and also 'Safety and security' needs satisfied. This indicates that unless the employees are made to really feel safe and secure about their existing employment standing in Dodlas Dilemma they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Dodlas Dilemma Case Study

Implication of Analysis.

The OB analysis has checked out numerous concepts to comprehend just how to manage the present circumstance at hand. The complying with three options have actually been proposed to help Lewis handle the organizational difficulties in the marketing department. Each of these alternatives has been suggested for relieving the transition needed to bring the advertising and marketing division in line with the needs of the market as well as for making the cultural change that would adhere to as soon as the existing leader leaves.

Assimilation of marketing and advertising features. Separating Adverting and also Production features. Integration of Advertising with Procedures.

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merger days has proficiency in business-to-business marketing along with company and also retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both advertising and also advertising and marketing features.

The benefit of this method is that it will certainly integrate both functions while lowering the demand for working with an extra source for marketing. Along with this, Lewis would certainly be heading the marketing department as well as in any case her substitute would certainly be required for the current function that she is performing. The disadvantage of this option is that exterior hiring might bring about resentment from internal workers that might be eying the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Manufacturing: Provided the affordable stress and also high top quality job needed from the marketing company, it is advised that Lewis needs to allow the production unit to be a different function from the advertising device. Given that a lot of marketing firms had these two functions as separate devices, it makes even more feeling to adhere to the standard.

Integration of Advertising And Marketing with Workflows: Considering that Lewis is currently looking after the advertising and marketing and procedures divisions at the same time; it makes good sense to integrate the two functions given that she has actually been efficiently dealing with both ends. The truth that both divisions already have significant distinctions over allocation of sources suggests that this assimilation might have the ability to cause harmony especially as Lewis would be heading both ends.However there are numerous drawbacks of this step particularly as it would certainly put excessive problem over Lewis's shoulders. The reality that Lewis has to adapt her management style for the advertising division suggests that these 2 departments would be culturally varied. Lewis might not be able to apply one kind of management design to both departments which could result in inadequacy in either one of the 2 features.


An examination of the three choices indicates that integration of advertising and marketing as well as operations would certainly not be a feasible relocation due to the large differences between the two departments despite the reality that currently Lewis is handling both. While separation of the manufacturing function might have been a desirable step for the advertising and marketing department, the reality that it would mean placing a 3rd feature under Lewis's wing implies this need to be prevented.

Action Strategy.
Lewis will take control of the function of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would be merged.

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

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

Lewis will divide herself from procedures.

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

Open up door plan and focus on cross departmental interaction will be aimed at removing dissonance.

Contingency plan.

If the integration does not exercise as prepared, a backup strategy would certainly comply with which would divide the production feature from the advertising and marketing feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising division without an SVP. In that case the manufacturing function will most definitely be separated by putting it under an SVP manufacturing.