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


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

Background and Facts

The Scotts Company B Developing A Supply Chain Balanced Scorecard an office materials seller for little and also medium sized businesses has recently been associated with preparing for a merger with its rival House Deport, which has affected effectiveness degrees in departmentswith the elderly supervisor involved in legal difficulties presented by the federal Profession Commission. With the Advertising Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the role in the near future. With difficulties in the type of a prospective cultural adjustment as well as low worker morale, the company is in need of a total reengineering effort at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising division of The Scotts Company B Developing A Supply Chain Balanced Scorecard is raising uncertainty in the working environment resulting in various obstacles for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting tactical decisions because Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Trade Payment's intervention in the process. Provided the fact that the store has an international presence with branches in UK, USA, Canada as well as Germany, political consider each of these countries may be able to affect performance or calculated objectives. Federal Trade Compensation's antitrust fit against the merging took up valuable time of the company's elderly monitoring suggesting that 'political' factors can have serious effects for a global business.

Economic Factors: Financial factors such as the development of small businesses in the global situation suggest that The Scotts Company B Developing A Supply Chain Balanced Scorecard is thriving in an environment where there is potential development of businesses. In addition to this, truth that shop clients are mostly looking for workplace products for home offices recommends that the market has an increasing fad of entrepreneurs and online businesses.

Social factors: Social trends in the economy reveal that clients are looking for benefit as well as eye-catching rates. Market research demonstrates how the consumer for The Scotts Company B Developing A Supply Chain Balanced Scorecard does not have understanding regarding locating services which can provide a mix of benefit and also inexpensive.

Technological factors: Modern technology plays a crucial role in The Scotts Company B Developing A Supply Chain Balanced Scorecard's company strategy especially as the company is piloting Technology centers which would offer technology sales and also support in the form of memory upgrades, peripheral setups. (Summary of BUG in appendix 2).

OB Issues and also Symptoms.

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

Apprehensions regarding social change: There is worry regarding a cultural adjustment that would happen as soon as Todd Krasnow leaves from his placement as the Exec Vice President of Advertising with most of the employee currently revealing unhappiness over this prospective move. This expected adjustment has actually created stress in the work environment which has been combined with the previous anxiety of preparing the firm for a prospective merger with House Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is scarcity of workers that can match the stressful environment of a busy organization. Not only does this result in problem in locating the best individuals, it places stress on new hires as can not stand up to the rate and pressure that the company expects them to bear.

Twin Coverage Lines: Newbies find this organizational society troublesome and tough to cope with specifically as populated line connections are indicated to be weaker as a whole as well as unbiased setting and performance examination is still done by the solid line supervisor. This implies that newbies could lose quality regarding their corresponding functions and purposes specifically as dotted line reporting does not keep them in direct communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles despite the fact that it had been hypothesized that the latter would certainly take Krasnow's setting came as a blow to her morale. Lewis may have been qualified as well as ideal for the task yet the truth that Kransnow's separation would make Coles a straight report to Lewis may have been the reason for Coles' resignation from services.

Anxiety & Work Insecurity: Concern and insecurity can be determined as 2 significant concerns that Lewis would be handling especially as the merger has now be terminated and 2 elderly executives of the advertising and marketing division would certainly be leaving. The entire duty of the division would certainly be falling on Lewis's shoulders who would not simply be in charge of brining regarding a social modification yet would certainly additionally have to confirm herself in her new role.

Incompatible Administration Style of Leader: Lewis's monitoring design and its conflict with the advertising department's duty can also be seen as an OB obstacle particularly as she has been made use of to managing problems in the operations division where personnel are taught to concentrate on processes and get them. The marketing division on the various other hand can be seen as a group of people that are made use of to being supported by Krasnow that focused much more on result than procedures.

Interdepartmental Arguments: Interdepartmental arguments between 3 divisions, marketing, merchandizing and procedures specifically over the appropriation of the advertising and marketing mix can be identified as one more OB concern. Although the advertising division does not share the very same vision as the other 2 divisions concerning the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and also procedures departments do not concur over the marketing mix allotment among each other either.

Disintegration in Advertising And Marketing Division: Disintegration in between the advertising and marketing departments can be recognized as another OB problem which can require additional focus. The reality that the advertising and marketing sections in the marketing division are detached is avoiding both departments from obtaining from each various other's experience as well as experience. Integration of advertising and marketing with retailing and operations would come to be harder if the advertising and marketing division itself is disintegrated which can be an additional prospective OB problem.

The Scotts Company B Developing A Supply Chain Balanced Scorecard Analysis

Numerous theories have actually been made use of to discuss the conditions to obtain additional clearness regarding the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers believe that juniors are passive and also careless, have little ambition and also resist adjustment. The scenario at The Scotts Company B Developing A Supply Chain Balanced Scorecard is not entirely adhering to Concept X, it can be seen that brand-new hires are locating this setting instead stressful which may ultimately lead to a higher inclination of the monitoring towards Theory X. Even while analyzing Lewis's management design, concept X might have been suitable in the operations division to some level but the Advertising department would call for reliance on Theory Y in order to get the imagination as well as originality from the teams.

Tuckman's Team effort Concept: As far as Lewis's worry regarding bringing consistency between the advertising and marketing division is worried, this would at first cause conflict as reviewed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, throughout the first phase of group development, individuals may not bond, as they are hectic discovering their location in the team. By integrating the marketing and advertising division's work, there may be the same first detach which could cause the 2nd phase of 'storming' where the groups test one another. It is only throughout the 3rd phase or 'norming' when they would come with each other to share ideas prior to the group can bring around harmony in the 4th phase 'carrying out'.

Bridges' Change Version: As per William Bridge's concept (appendix 4), people are quite unpleasant with change, which is apparent by the circumstance at The Scotts Company B Developing A Supply Chain Balanced Scorecard The situation can be seen as a typical program of life if is researched as per Bridge's theory where he discusses that individuals undergo three phases of shift when they experience adjustment. 'Ending, losing as well as Releasing', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people exist with adjustment, they go into phase one therefore there might be emotions like despair, unpredictability, disappointment, anger, worry, 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 comfy with the idea that it is not extraordinary habits. In the 2nd phase, there might be a requirement to bridge the void in between the brand-new and old society so Lewis might have to encounter this experience when Krasnow leaves. There may be reduced spirits as well as low productivity at this stage which need to not be taken as an obstacle. It is during this stage that Lewis will have to give assistance to the department so that they can locate a sense of direction. It can be seen how Krasnow has actually already made this change easier by making Lewis obtain involved in the division a year before his actual separation. As per Bridges' Version, phase three will produce openness to discovering, High power as well as commitment as individuals will accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has talks about the value of 'safety and security requires as being a lower level need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel protected as well as out of risk' is at the 2nd level of demands. Prior to a staff member can be made to develop mentally, he needs to have his 'Physiological 'as well as 'Safety' requires met.

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

Ramification of Analysis.

The OB analysis has considered different theories to comprehend just how to handle the current scenario at hand. The adhering to 3 choices have been recommended to help Lewis handle the organizational obstacles in the advertising division. Each of these choices has actually been proposed for alleviating the change required to bring the marketing division in accordance with the needs of the market and for making the social modification that would certainly follow when the existing leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and also Manufacturing functions. Integration of Marketing with Procedures.

Analysis of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merger days has knowledge in business-to-business advertising and marketing along with agency and also retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to manage both marketing and also advertising functions.

The advantage of this approach is that it will certainly integrate the two functions while reducing the requirement for employing an added resource for marketing. In addition to this, Lewis would be heading the advertising and marketing department and all the same her replacement would be needed for the present role that she is performing. The downside of this option is that external hiring might produce bitterness from interior workers who may be eying the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Manufacturing: Given the competitive stress and also premium quality work needed from the advertising agency, it is recommended that Lewis ought to permit the production device to be a separate feature from the marketing device. Because most advertising agencies had these 2 functions as separate systems, it makes more sense to follow the standard. Along with this, both features may have the ability to focus on their core activates a lot more efficiently. The drawback of this method would certainly be that extra expenses would certainly have to be borne for setting up separate production functions. Along with this, a production head may have to be hired which can enhance overheads for the organization.

Combination of Marketing with Procedures: Since Lewis is already taking treatment of the advertising and marketing and also operations divisions at the same time; it makes sense to incorporate the 2 functions given that she has been efficiently taking care of both ends. The truth that Lewis has to adjust her management design for the advertising division suggests that these two departments would certainly be culturally varied.


An assessment of the 3 options indicates that integration of marketing as well as procedures would certainly not be a practical step due to the huge differences between the two departments despite the fact that currently Lewis is managing both. While separation of the production feature might have been a favorable action for the advertising and marketing department, the fact that it would imply positioning a 3rd function under Lewis's wing implies this must be prevented as well. The combination of the advertising and marketing division is the very best choice in regards to getting the ideal arise from the division. An action prepare for this alternative is gone over listed below.

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

Advertising and Marketing features would certainly be combined.

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

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

Lewis will divide herself from operations.

An autonomous management design with employee empowerment will be utilized in advertising and marketing division.

Open door policy as well as emphasis on cross departmental interaction will be focused on removing disharmony.

Backup plan.

If the integration does not exercise as intended, a contingency strategy would follow which would separate the manufacturing function from the marketing feature to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the advertising and marketing division without an SVP. In that case the production feature will most definitely be divided by placing it under an SVP production.