The Scotts Company B Developing A Supply Chain Balanced Scorecard Case Study Analysis


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The Scotts Company B Developing A Supply Chain Balanced Scorecard Case Study Analysis

Background and Facts

The Scotts Company B Developing A Supply Chain Balanced Scorecard an office materials store for tiny and also average sized organisations has actually lately been involved in preparing for a merging with its rival House Deport, which has actually influenced efficiency levels in departmentswith the senior manager involved in legal complications put forth by the government Trade Commission. With the Marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the function in the near future. With challenges in the form of a possible social modification and low employee morale, the organization needs a full reengineering effort at the marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The possible cultural change at the marketing division of The Scotts Company B Developing A Supply Chain Balanced Scorecard is increasing uncertainty in the workplace leading to different challenges for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting critical decisions given that Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Profession Payment's intervention in the process. Given the truth that the shop has an international existence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries might be able to impact efficiency or calculated goals. Federal Profession Commission's antitrust suit against the merging took up important time of the company's senior monitoring suggesting that 'political' factors can have major effects for a global organisation.

Economic Factors: Financial factors such as the appearance of local business in the international circumstance suggest that The Scotts Company B Developing A Supply Chain Balanced Scorecard is flourishing in a setting where there is prospective growth of businesses. Reality that store customers are mostly looking for office supplies for home workplaces recommends that the market has a rising fad of business owners and also residence based businesses.

Social factors: Social trends in the economic situation show that clients are searching for benefit as well as attractive costs. Market research demonstrates how the consumer for The Scotts Company B Developing A Supply Chain Balanced Scorecard lacks awareness regarding finding services which can use a mix of ease and affordable.

Technological factors: Technology plays an essential function in The Scotts Company B Developing A Supply Chain Balanced Scorecard's organisation approach specifically as the company is piloting Modern technology facilities which would provide innovation sales and also support in the form of memory upgrades, peripheral installments. (Recap of PARASITE in appendix 2).

OB Issues and also Symptoms.

A number of underlying Business Actions issues can be seen in The Scotts Company B Developing A Supply Chain Balanced Scorecard's case as highlighted in this area.

Uneasiness concerning cultural modification: There is apprehension about a social modification that would certainly occur when Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising with the majority of the personnel already revealing unhappiness over this potential move. This anticipated change has produced stress in the workplace which has actually been coupled with the previous stress and anxiety of preparing the company for a potential merger with Home Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is lack of personnel that can match the difficult setting of a fast-paced organization. Not just does this lead to trouble in discovering the ideal people, it puts stress and anxiety on brand-new hires as can not withstand the speed as well as pressure that the company expects them to bear.

Twin Coverage Lines: Beginners find this organizational culture cumbersome and tough to handle especially as dotted line relationships are suggested to be weaker in general and also unbiased setting and also performance evaluation is still done by the strong line supervisor. This implies that beginners could shed clarity concerning their corresponding functions as well as goals specifically as dotted line coverage does not maintain them in direct interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles although it had been hypothesized that the last would take Krasnow's setting came as a blow to her morale. Lewis may have been qualified as well as ideal for the task but the reality that Kransnow's separation would make Coles a direct report to Lewis may have been the reason for Coles' resignation from solutions.

Worry & Task Insecurity: Concern and also insecurity can be identified as two major problems that Lewis would be managing particularly as the merging has actually now be terminated and also two elderly execs of the marketing division would certainly be leaving. The entire responsibility of the department would certainly be dropping on Lewis's shoulders who would not just be in charge of brining regarding a cultural change yet would additionally need to confirm herself in her brand-new duty.

Inappropriate Administration Style of Leader: Lewis's management design as well as its incompatibility with the advertising and marketing division's role can likewise be viewed as an OB difficulty specifically as she has been utilized to managing issues in the operations department where workers are taught to focus on processes as well as get them right. The advertising division on the various other hand can be viewed as a team of individuals that are utilized to being nurtured by Krasnow that focused a lot more on output than processes.

Interdepartmental Differences: Interdepartmental disputes in between three departments, advertising and marketing, merchandizing and also operations specifically over the appropriation of the advertising mix can be determined as one more OB worry. The advertising and marketing department does not share the same vision as the other 2 divisions relating to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and operations divisions do not agree over the marketing mix allotment among one another either.

Disintegration in Advertising Department: Fragmentation between the marketing and advertising departments can be determined as another OB problem which could require additional interest. The truth that the marketing and advertising areas in the marketing division are disconnected is avoiding both departments from obtaining from each various other's experience and also know-how. Assimilation of marketing with merchandising and operations would certainly become harder if the marketing department itself is disintegrated which can be one more possible OB worry.

The Scotts Company B Developing A Supply Chain Balanced Scorecard Analysis

Various concepts have been utilized to discuss the circumstances to obtain additional quality concerning the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors think that subordinates are passive and lazy, have little aspiration and also withstand change. The difficult version of this theory highlighted coercion, limited controls, risks and also punishments. In time it produces low productivity, subtle sabotage and also competition (Bargain, 2003). Although the scenario at The Scotts Company B Developing A Supply Chain Balanced Scorecard is not totally following Concept X, it can be seen that brand-new hires are locating this atmosphere instead stressful which may at some point cause a greater disposition of the monitoring towards Concept X. Based on McGregor's supported sight, which he called Concept Y, the vital task of the monitoring is to prepare organizational problems so that individuals can accomplish their very own goals best by routing their efforts towards organizational benefits. If individuals discover no contentment in their work, the management would certainly have little choice yet to rely upon concept X and also external control (Deal, 2003). Even while evaluating Lewis's monitoring design, theory X may have been suitable in the procedures department to some extent however the Advertising and marketing department would certainly require dependence on Concept Y to get the creative thinking and also originality from the teams.

Tuckman's Team effort Concept: As far as Lewis's problem concerning bringing consistency between the marketing and also advertising department is concerned, this would initially lead to conflict as gone over by Bruce Tuckman in his 'Teamwork Theory'. By combining the advertising and marketing and advertising division's job, there may be the very same preliminary detach which can lead to the 2nd stage of 'storming' where the teams challenge one an additional.

Bridges' Transition Model: As per William Bridge's theory (appendix 4), people are rather unpleasant with change, which is apparent by the situation at The Scotts Company B Developing A Supply Chain Balanced Scorecard The situation can be viewed as a normal course of life if is researched based on Bridge's theory where he describes that people go through 3 phases of change when they experience adjustment. 'Closing, shedding as well as Releasing', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people are presented with change, they enter stage one and so there might be emotions like sadness, uncertainty, irritation, rage, concern, rejection as well as disorientation.The scenario at the advertising and marketing department of The Scotts Company B Developing A Supply Chain Balanced Scorecard is comparable so Lewis can obtain comfortable with the suggestion that it is not phenomenal actions. In the 2nd phase, there may be a demand to link the gap in between the new and old society so Lewis might need to encounter this challenge once Krasnow leaves. There may be reduced spirits and reduced efficiency at this stage which need to not be taken as a trouble. It is throughout this stage that Lewis will certainly need to provide assistance to the division so that they can find an orientation. It can be seen how Krasnow has actually already made this change easier by making Lewis get associated with the division a year before his real departure. According to Bridges' Version, stage three will cause openness to understanding, High power as well as commitment as individuals will certainly welcome the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has talks about the significance of 'protection needs 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 requirement to feel secure and also out of threat' is at the 2nd degree of needs. Prior to a staff member can be made to create mentally, he needs to have his 'Physical 'as well as 'Safety and security' requires satisfied.

SWOT Analysis for The Scotts Company B Developing A Supply Chain Balanced Scorecard Case Study

Implication of Analysis.

The OB analysis has actually taken a look at numerous theories to comprehend just how to deal with the present circumstance handy. The complying with 3 choices have been proposed to aid Lewis handle the business obstacles in the marketing department. Each of these options has been proposed for easing the transition required to bring the advertising division in line with the requirements of the market and for making the social change that would certainly comply with when the present leader leaves.

Combination of advertising and marketing features. Dividing Adverting and Production features. Combination of Advertising And Marketing with Workflow.

Assessment of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merger days has experience in business-to-business advertising and marketing along with firm and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to manage both advertising as well as marketing features.

The advantage of this technique is that it will integrate the two features while lowering the need for working with an added source for advertising and marketing. Lewis would be heading the marketing department and also in any kind of case her replacement would be needed for the existing role that she is performing. The drawback of this alternative is that external hiring might cause resentment from internal personnel that might be considering the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Production: Provided the affordable stress and high quality work needed from the marketing firm, it is advised that Lewis should enable the manufacturing device to be a separate feature from the marketing system. Since many advertising firms had these 2 functions as separate units, it makes more sense to follow the norm.

Combination of Advertising And Marketing with Workflows: Considering that Lewis is currently caring for the marketing and procedures divisions simultaneously; it makes sense to integrate both features because she has been effectively dealing with both ends. The fact that the two divisions already have major differences over allowance of sources suggests that this integration may have the ability to cause consistency specifically as Lewis would certainly be heading both ends.However there are various downsides of this move especially as it would certainly place too much problem over Lewis's shoulders. The truth that Lewis has to adjust her administration style for the advertising division recommends that these 2 divisions would certainly be culturally varied. Lewis may not be able to apply one type of leadership style to both divisions which might result in inadequacy in either one of the two features.


An analysis of the three options shows that assimilation of marketing and operations would not be a viable relocation due to the vast distinctions between the two divisions regardless of the reality that presently Lewis is dealing with both. While splitting up of the manufacturing feature may have been a favorable relocation for the marketing division, the reality that it would certainly indicate putting a 3rd function under Lewis's wing indicates this need to be stayed clear of.

Activity Plan.
Lewis will take control of the function of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would be merged.

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

Production feature will stay component of advertising and marketing under marketing function.

Lewis will separate herself from procedures.

A democratic management style with worker empowerment will certainly be utilized in advertising division.

Open door plan and focus on cross department interaction will certainly be aimed at removing disharmony.

Contingency plan.

If the integration does not work out as prepared, a backup plan would certainly follow which would divide the production function from the advertising and marketing feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising department without an SVP. Because case the manufacturing function will absolutely be divided by positioning it under an SVP manufacturing.