Marks Spencer And Zara Process Competition In The Textile Apparel Industry Case Study Help


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Marks Spencer And Zara Process Competition In The Textile Apparel Industry Case Study Help

Background and Facts

Marks Spencer And Zara Process Competition In The Textile Apparel Industry a workplace products seller for small and average sized companies has just recently been associated with preparing for a merging with its competitor House Deport, which has affected performance degrees in departmentswith the senior manager associated with lawful issues presented by the government Trade Commission. With the Advertising Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the role in the future. With challenges in the form of a prospective social change and low employee morale, the organization is in need of a total reengineering initiative at the marketing department.

Issue Statement
Porter's 5 Forces Analysis
The prospective cultural adjustment at the marketing division of Marks Spencer And Zara Process Competition In The Textile Apparel Industry is increasing unpredictability in the workplace causing various challenges for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting strategic decisions given that Stapes Inc. needed to abandon its strategies of merging with Office Deport after the Federal Trade Payment's treatment at the same time. Provided the reality that the store has a global presence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries may be able to impact efficiency or tactical goals. Federal Trade Compensation's antitrust match against the merging took up useful time of the organization's elderly administration suggesting that 'political' factors can have serious effects for an international service.

Economic Factors: Economic factors such as the development of small businesses in the worldwide situation recommend that Marks Spencer And Zara Process Competition In The Textile Apparel Industry is flourishing in an environment where there is possible development of companies. Along with this, fact that store customers are primarily looking for workplace products for home offices suggests that the market has an increasing trend of business owners as well as online organisations.

Social factors: Social fads in the economic climate show that customers are looking for ease along with appealing costs. Market research shows how the client for Marks Spencer And Zara Process Competition In The Textile Apparel Industry lacks recognition concerning finding solutions which can supply a combination of convenience and affordable.

Technical factors: Technology plays an essential duty in Marks Spencer And Zara Process Competition In The Textile Apparel Industry's service approach particularly as the company is piloting Modern technology centers which would certainly provide technology sales and also assistance in the kind of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Organizational Habits issues can be seen in Marks Spencer And Zara Process Competition In The Textile Apparel Industry's case as highlighted in this area.

Apprehensions regarding social adjustment: There is concern about a social modification that would certainly occur when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising And Marketing with most of the staff members already showing unhappiness over this prospective relocation. This expected modification has actually produced tension in the workplace which has actually been coupled with the previous tension of preparing the company for a possible merger with Home Deport.
Pest Analysis
Stressful Task Environment for Newcomers: There is lack of workers that can match the difficult environment of a fast-paced company. Not just does this lead to difficulty in finding the right individuals, it places stress on brand-new hires as can not withstand the pace as well as pressure that the company anticipates them to bear.

Double Reporting Lines: Novices discover this business culture difficult and tough to handle specifically as populated line relationships are implied to be weaker generally as well as unbiased setup and also performance examination is still done by the solid line manager. This implies that newcomers might shed quality regarding their particular duties and purposes particularly as dotted line reporting does not maintain them in straight communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles despite the fact that it had actually been hypothesized that the last would certainly take Krasnow's position came as an impact to her morale. Lewis might have been capable and also suitable for the work yet the reality that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Concern & Work Instability: Fear and also insecurity can be recognized as 2 major concerns that Lewis would certainly be taking care of specifically as the merger has now be cancelled and also 2 senior execs of the advertising and marketing department would certainly be leaving. The whole obligation of the division would certainly be dropping on Lewis's shoulders who would not just be in charge of brining regarding a social adjustment yet would certainly additionally need to prove herself in her brand-new role.

Inappropriate Management Design of Leader: Lewis's administration design and also its conflict with the advertising division's role can likewise be seen as an OB difficulty specifically as she has actually been utilized to managing concerns in the operations division where workers are instructed to focus on processes and also obtain them. The marketing department on the other hand can be viewed as a team of people who are made use of to being nurtured by Krasnow who focused a lot more on output than processes.

Interdepartmental Arguments: Interdepartmental disagreements between three departments, marketing, merchandizing as well as operations respectively over the allocation of the advertising and marketing mix can be recognized as an additional OB worry. The marketing department does not share the very same vision as the various other 2 divisions regarding the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing as well as operations departments do not concur over the advertising mix appropriation amongst one another either.

Disintegration in Marketing Division: Fragmentation between the marketing and advertising divisions can be identified as another OB problem which can need more focus. The truth that the advertising and marketing areas in the advertising division are disconnected is stopping both departments from acquiring from each various other's experience and proficiency. Combination of advertising with retailing and also operations would certainly become more difficult if the advertising department itself is disintegrated which can be an additional prospective OB concern.

Marks Spencer And Zara Process Competition In The Textile Apparel Industry Analysis

Different concepts have been utilized to clarify the circumstances to get further clearness regarding the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers believe that juniors are passive and careless, have little aspiration and also withstand adjustment. The situation at Marks Spencer And Zara Process Competition In The Textile Apparel Industry is not completely following Concept X, it can be seen that new hires are locating this atmosphere rather stressful which may eventually lead to a better inclination of the administration in the direction of Concept X. Even while examining Lewis's administration design, concept X might have been suitable in the procedures division to some level however the Marketing department would certainly need reliance on Theory Y in order to get the creative thinking and creativity from the teams.

Tuckman's Teamwork Theory: As far as Lewis's issue concerning bringing harmony between the advertising and marketing as well as marketing division is concerned, this would initially lead to clash as discussed by Bruce Tuckman in his 'Team effort Theory'. By integrating the marketing as well as advertising department's work, there might be the same initial separate which might lead to the 2nd stage of 'storming' where the teams test one an additional.

When individuals are provided with change, they enter stage one as well as so there might be emotions like despair, uncertainty, aggravation, temper, worry, denial and disorientation.The scenario at the advertising department of Marks Spencer And Zara Process Competition In The Textile Apparel Industry is comparable so Lewis can obtain comfortable with the suggestion that it is not extraordinary behavior. It is throughout this stage that Lewis will have to provide assistance to the division so that they can locate a sense of instructions. It can be seen how Krasnow has currently made this shift easier by making Lewis get entailed in the department a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has discusses the significance of 'safety requires as being a lower level need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel protected as well as out of risk' is at the 2nd degree of needs. Before an employee can be made to establish psychologically, he requires to have his 'Physiological 'and 'Safety' requires satisfied.

SWOT Analysis for Marks Spencer And Zara Process Competition In The Textile Apparel Industry Case Study

Ramification of Analysis.

The OB analysis has considered various concepts to comprehend just how to handle the current circumstance handy. The adhering to three choices have been recommended to aid Lewis handle the organizational challenges in the marketing department. Each of these alternatives has been suggested for reducing the change needed to bring the marketing division in line with the demands of the market and for making the cultural modification that would follow when the existing leader leaves.

Combination of marketing and advertising functions. Separating Adverting and Manufacturing functions. Integration of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Assimilation of Advertising & Marketing Functions: The in-house advertising agency of Marks Spencer And Zara Process Competition In The Textile Apparel Industry is already strength for the company in terms of saving up on overheads associated with advertising and promo. Because no new employment has been done after Bridget Cole's departure with the coverage line being straight assigned to Krasnow for the advertising function, this is a favorable possibility for incorporating the marketing and advertising features. Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merging days has experience in business-to-business marketing in addition to agency and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to take care of both marketing and advertising functions.

The benefit of this technique is that it will incorporate the two features while decreasing the demand for employing an extra source for marketing. In addition to this, Lewis would certainly be heading the advertising department and in any case her replacement would be required for the present duty that she is executing. The downside of this alternative is that outside hiring might cause animosity from interior personnel that may be eying the placement of EVP after Lewis takes over Krasnow's position.

Separating Adverting as well as Manufacturing: Offered the competitive pressures and high top quality work needed from the advertising firm, it is advised that Lewis should enable the manufacturing system to be a different function from the advertising unit. Since a lot of advertising and marketing agencies had these two features as separate units, it makes more sense to follow the norm.

Integration of Advertising with Operations: Given that Lewis is already taking treatment of the advertising and marketing and also procedures divisions simultaneously; it makes sense to integrate the two features considering that she has been effectively taking treatment of both ends. The fact that Lewis has to adapt her administration style for the advertising and marketing division suggests that these 2 departments would certainly be culturally varied.


An analysis of the three choices indicates that integration of advertising and marketing and also operations would not be a practical step due to the vast distinctions in between the 2 departments in spite of the fact that presently Lewis is handling both. While splitting up of the manufacturing function may have been a favorable step for the marketing division, the truth that it would certainly imply positioning a 3rd function under Lewis's wing means this need to be avoided.

Activity Strategy.
Lewis will certainly take over the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Manufacturing feature will remain component of advertising and marketing under advertising and marketing function.

Lewis will divide herself from procedures.

A democratic management design with worker empowerment will certainly be made use of in marketing division.

Open up door plan as well as emphasis on cross departmental communication will certainly be aimed at getting rid of dissonance.

Contingency strategy.

If the assimilation does not work out as planned, a backup strategy would comply with which would certainly separate the production function from the advertising function to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising division without an SVP. In that case the manufacturing function will most definitely be separated by positioning it under an SVP production.