Out Foxing The Flu Case Study Help


Home >> Chicago Booth >> Out Foxing The Flu >>

Out Foxing The Flu Case Study Analysis

Background and Facts

Out Foxing The Flu an office products retailer for tiny and average sized services has recently been involved in preparing for a merger with its competitor Residence Deport, which has impacted efficiency degrees in departmentswith the senior manager associated with legal difficulties put forth by the government Profession Commission. With the Marketing Head advancing the news of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the function in the future. With difficulties in the kind of a prospective cultural adjustment as well as reduced staff member morale, the organization is in need of a total reengineering effort at the advertising division.

Problem Declaration
Porter's 5 Forces Analysis
The possible cultural change at the advertising division of Out Foxing The Flu is increasing unpredictability in the workplace causing various obstacles for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in influencing tactical decisions considering that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Compensation's intervention at the same time. Provided the reality that the store has a global presence with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these countries may be able to affect efficiency or strategic objectives. Federal Trade Commission's antitrust fit versus the merger took up important time of the company's elderly administration suggesting that 'political' factors can have severe implications for an international company.

Economic Factors: Economic factors such as the introduction of small businesses in the worldwide situation suggest that Out Foxing The Flu is thriving in an environment where there is potential growth of services. Reality that store customers are primarily looking for workplace materials for house offices recommends that the market has a climbing fad of entrepreneurs as well as home based services.

Social factors: Social fads in the economic climate reveal that customers are trying to find benefit as well as eye-catching costs. Marketing research shows how the consumer for Out Foxing The Flu lacks awareness about finding solutions which can offer a combination of ease and inexpensive.

Technical factors: Innovation plays a crucial role in Out Foxing The Flu's organisation method specifically as the organization is piloting Technology centers which would certainly use modern technology sales and also assistance in the form of memory upgrades, peripheral setups. (Recap of PEST in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Business Actions issues can be seen in Out Foxing The Flu's case as highlighted in this area.

Uneasiness about cultural change: There is uneasiness regarding a social adjustment that would certainly take place once Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Marketing with the majority of the team member currently showing discontent over this possible action. This predicted adjustment has produced stress in the office which has actually been combined with the past tension of preparing the company for a possible merging with Home Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is lack of personnel that can match the demanding setting of a busy organization. Not just does this cause difficulty in discovering the ideal individuals, it places tension on new hires as can not withstand the pace as well as stress that the organization anticipates them to birth.

Twin Coverage Lines: Beginners find this business society troublesome as well as challenging to cope with specifically as populated line partnerships are implied to be weak in general and also objective setting as well as efficiency analysis is still done by the solid line supervisor. This means that novices might lose clarity regarding their respective duties as well as purposes specifically as populated line coverage does not keep them in straight communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had been hypothesized that the last would take Krasnow's position came as a strike to her morale. Lewis may have been qualified and appropriate for the task but the fact that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Worry & Task Insecurity: Worry as well as insecurity can be recognized as two major issues that Lewis would certainly be managing particularly as the merging has currently be cancelled and 2 elderly executives of the advertising department would be leaving. The entire responsibility of the department would be falling on Lewis's shoulders who would not simply supervise of brining regarding a cultural modification yet would likewise have to verify herself in her new role.

Inappropriate Management Design of Leader: Lewis's monitoring style as well as its conflict with the advertising and marketing department's function can additionally be viewed as an OB challenge particularly as she has been used to managing problems in the procedures division where workers are taught to concentrate on processes and also get them right. The advertising division on the other hand can be viewed as a team of people that are used to being supported by Krasnow that concentrated more on output than processes.

Interdepartmental Arguments: Interdepartmental disagreements between 3 departments, marketing, merchandizing and procedures specifically over the allotment of the advertising mix can be determined as one more OB issue. Although the advertising department does not share the exact same vision as the various other two departments relating to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and operations divisions do not concur over the marketing mix appropriation amongst each other either.

Disintegration in Advertising And Marketing Department: Disintegration between the marketing and advertising departments can be determined as another OB issue which might need additional interest. The fact that the marketing and advertising sections in the advertising and marketing division are disconnected is preventing both departments from acquiring from each various other's experience as well as know-how. Integration of marketing with merchandising as well as procedures would certainly become harder if the advertising and marketing division itself is degenerated which can be an additional possible OB worry.

Out Foxing The Flu Analysis

Various theories have actually been made use of to clarify the situations to obtain more clarity concerning the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers think that juniors are easy and lazy, have little passion and stand up to modification. The difficult version of this concept stressed threat, limited controls, dangers as well as penalties. Over time it produces low productivity, refined sabotage and competition (Deal, 2003). The situation at Out Foxing The Flu is not completely adhering to Concept X, it can be seen that brand-new hires are finding this atmosphere instead difficult which might eventually lead to a higher disposition of the monitoring in the direction of Concept X. Based on McGregor's supported sight, which he called Concept Y, the essential job of the monitoring is to arrange business conditions so that individuals can achieve their very own objectives best by directing their initiatives in the direction of organizational benefits. If individuals locate no contentment in their job, the administration would have little option however to depend on theory X and also exterior control (Bargain, 2003). Even while examining Lewis's monitoring style, theory X may have been suitable in the operations department to some extent however the Advertising and marketing division would require reliance on Theory Y so as to get the imagination and also originality from the groups.

Tuckman's Team effort Concept: Regarding Lewis's issue concerning bringing harmony between the advertising and marketing division is concerned, this would originally lead to clash as discussed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, throughout the preliminary stage of group growth, people might not bond, as they are active discovering their place in the team. By incorporating the advertising and marketing division's job, there might coincide initial detach which could bring about the second phase of 'storming' where the groups challenge one another. Nevertheless, it is just during the third phase or 'norming' when they would integrate to share suggestions before the group can bring about synergy in the fourth phase 'performing'.

When people are provided with modification, they enter stage one and also so there might be emotions like unhappiness, unpredictability, aggravation, rage, anxiety, denial and disorientation.The circumstance at the advertising and marketing division of Out Foxing The Flu is similar so Lewis can get comfy with the idea that it is not amazing behavior. It is throughout this phase that Lewis will have to give advice to the department so that they can discover a feeling of instructions. It can be seen just how Krasnow has already made this transition simpler by making Lewis get included in the division a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has reviews the importance of 'safety requires as being a lower degree requirement of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel protected and out of risk' is at the 2nd degree of requirements. Prior to an employee can be made to create mentally, he requires to have his 'Physical 'as well as 'Safety and security' requires met.

SWOT Analysis for Out Foxing The Flu Case Study

Implication of Analysis.

The OB analysis has actually considered different theories to comprehend just how to manage the existing situation handy. The complying with three alternatives have been recommended to assist Lewis deal with the organizational challenges in the advertising department. Each of these options has actually been suggested for easing the shift needed to bring the advertising and marketing division according to the needs of the market and also for making the cultural modification that would adhere to when the current leader leaves.

Integration of marketing and advertising features. Separating Adverting and also Manufacturing functions. Combination of Advertising with Procedures.

Evaluation of Alternatives.

Integration of Marketing & Marketing Functions: The in-house marketing agency of Out Foxing The Flu is already strength for the organization in terms of saving up on overheads associated with advertising and also promo. Because no brand-new employment has actually been done after Bridget Cole's separation with the coverage line being directly appointed to Krasnow for the advertising feature, this is a favorable chance for integrating the marketing and advertising features. Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merging days has proficiency in business-to-business marketing together with company and also retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both marketing and advertising functions.

The benefit of this technique is that it will certainly incorporate both features while reducing the need for hiring an additional source for advertising and marketing. In addition to this, Lewis would be heading the advertising division and all the same her replacement would certainly be required for the present duty that she is doing. The disadvantage of this alternative is that exterior hiring may bring about animosity from internal workers who may be considering the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and also Production: Given the affordable stress and also high quality job called for from the advertising company, it is recommended that Lewis needs to enable the manufacturing device to be a separate feature from the marketing unit. Since many advertising firms had these two functions as separate systems, it makes even more sense to follow the norm.

Combination of Advertising with Workflows: Since Lewis is already taking care of the advertising and marketing as well as procedures departments concurrently; it makes sense to integrate the two functions since she has been efficiently taking treatment of both ends. The reality that Lewis has to adapt her monitoring design for the advertising and marketing division recommends that these two divisions would be culturally diverse.


An evaluation of the three choices shows that assimilation of marketing as well as operations would certainly not be a viable action due to the vast differences in between the two divisions regardless of the truth that currently Lewis is handling both. While splitting up of the manufacturing function might have been a positive relocation for the marketing division, the truth that it would certainly imply placing a third feature under Lewis's wing means this need to be stayed clear of.

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

Marketing and advertising functions would be combined.

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

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

Lewis will separate herself from operations.

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

Open door plan and also emphasis on cross departmental communication will certainly be focused on removing disharmony.

Backup strategy.

If the combination does not exercise as intended, a contingency plan would adhere to which would certainly separate the production feature from the advertising feature to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the manufacturing function will certainly be divided by putting it under an SVP manufacturing.