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


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Background and Facts

The Scotts Company B Developing A Supply Chain Balanced Scorecard an office materials retailer for tiny and moderate sized companies has actually lately been associated with preparing for a merging with its competitor House Deport, which has actually influenced effectiveness levels in departmentswith the elderly manager involved in lawful problems presented by the government Profession Compensation. With the Advertising Head advancing the information of his separation from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the future. With obstacles in the type of a prospective cultural modification and also low employee spirits, the organization wants a full reengineering effort at the advertising and marketing division.

Problem Declaration

The prospective cultural change at the marketing division of The Scotts Company B Developing A Supply Chain Balanced Scorecard is boosting uncertainty in the workplace causing different difficulties 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 significant role in influencing calculated choices given that Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Trade Commission's treatment in the process. Offered the truth that the shop has a worldwide existence with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these nations may have the ability to affect performance or critical goals. Federal Trade Compensation's antitrust match versus the merger occupied useful time of the company's elderly management recommending that 'political' factors can have major implications for an international organisation.

Economic Factors: Economic factors such as the emergence of small companies in the worldwide circumstance recommend that The Scotts Company B Developing A Supply Chain Balanced Scorecard is flourishing in an environment where there is prospective development of organisations. Truth that store consumers are mostly looking for office materials for home workplaces recommends that the market has an increasing fad of business owners as well as house based services.

Social factors: Social fads in the economic situation reveal that customers are seeking ease along with eye-catching prices. Marketing research demonstrates how the customer for The Scotts Company B Developing A Supply Chain Balanced Scorecard lacks awareness concerning locating services which can supply a combination of benefit and also inexpensive.

Technological factors: Technology plays an essential function in The Scotts Company B Developing A Supply Chain Balanced Scorecard's company approach specifically as the organization is piloting Innovation centers which would certainly offer technology sales and also support in the form of memory upgrades, outer setups. (Summary of PEST in appendix 2).

OB Issues as well as Effects.

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

Uneasiness regarding cultural modification: There is uneasiness about a social adjustment that would certainly happen as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Marketing with a lot of the employee currently showing unhappiness over this potential move. This predicted change has produced stress in the office which has been combined with the previous tension of preparing the company for a possible merging with House Deport.

Stressful Work Environment for Newcomers: There is lack of personnel that can match the stressful setting of a fast-paced company. Not just does this bring about trouble in discovering the ideal people, it places tension on brand-new hires as can not endure the speed and pressure that the company anticipates them to birth.

Twin Reporting Lines: Beginners discover this organizational culture troublesome and also tough to cope with especially as dotted line partnerships are meant to be weak in general as well as unbiased setup and also performance examination is still done by the solid line supervisor. This means that beginners could shed quality about their particular functions and objectives particularly as populated line reporting does not maintain them in direct interaction with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had been guessed that the latter would certainly take Krasnow's setting came as an impact to her spirits. Lewis may have been capable and proper for the work yet the truth that Kransnow's separation would make Coles a direct record to Lewis may have been the reason for Coles' resignation from services.

Concern & Work Insecurity: Anxiety as well as insecurity can be identified as two significant worries that Lewis would be managing specifically as the merger has currently be terminated and also 2 senior execs of the marketing division would be leaving. The whole obligation of the division would certainly be dropping on Lewis's shoulders that would not just be in charge of brining concerning a cultural adjustment however would also need to verify herself in her brand-new role.

Inappropriate Management Style of Leader: Lewis's management design and its incompatibility with the advertising and marketing division's duty can additionally be viewed as an OB difficulty especially as she has been made use of to dealing with concerns in the operations department where personnel are instructed to concentrate on procedures and get them right. The marketing division on the other hand can be seen as a group of people who are utilized to being nurtured by Krasnow who concentrated much more on outcome than processes.

Interdepartmental Disputes: Interdepartmental differences in between three departments, advertising and marketing, merchandizing and procedures specifically over the allotment of the advertising and marketing mix can be identified as another OB problem. Although the marketing department does not share the very same vision as the other two departments concerning the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and operations departments do not agree over the advertising mix allocation among one another either.

Disintegration in Marketing Department: Fragmentation in between the marketing and advertising departments can be identified as one more OB problem which might need further interest. The fact that the advertising and marketing areas in the marketing department are disconnected is stopping both divisions from obtaining from each various other's experience and also expertise. Integration of advertising with merchandising and also procedures would certainly end up being more difficult if the advertising and marketing department itself is degenerated which can be another prospective OB issue.

The Scotts Company B Developing A Supply Chain Balanced Scorecard Analysis

Different concepts have been used to describe the circumstances to get further clarity concerning the scenario available.

McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of supervisors believe that subordinates are easy as well as lazy, have little ambition as well as withstand adjustment. The circumstance at The Scotts Company B Developing A Supply Chain Balanced Scorecard is not completely following Concept X, it can be seen that brand-new hires are discovering this setting instead difficult which may eventually lead to a higher disposition of the administration in the direction of Concept X. Even while examining Lewis's management design, theory X might have been ideal in the procedures division to some degree but the Advertising and marketing department would require dependence on Concept Y in order to get the imagination and creativity from the groups.

Tuckman's Teamwork Theory: As much as Lewis's concern about bringing consistency in between the advertising and also marketing division is concerned, this would originally lead to conflict as talked about by Bruce Tuckman in his 'Synergy Theory'. By integrating the advertising as well as advertising division's work, there may be the very same initial disconnect which can lead to the second phase of 'storming' where the groups challenge one another.

Bridges' Shift Model: According To William Bridge's theory (appendix 4), individuals are rather uneasy with change, which is noticeable by the circumstance at The Scotts Company B Developing A Supply Chain Balanced Scorecard The circumstance can be viewed as a normal course of life if is studied as per Bridge's concept where he clarifies that people go through three phases of change when they experience modification. 'Closing, losing and also Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people are presented with modification, they go into stage one and so there might be feelings like unhappiness, uncertainty, stress, rage, worry, denial and also disorientation.The circumstance at the marketing department of The Scotts Company B Developing A Supply Chain Balanced Scorecard is comparable so Lewis can get comfy with the idea that it is not phenomenal actions. In the second stage, there may be a requirement to bridge the gap in between the new and also old society so Lewis may have to encounter this ordeal once Krasnow leaves. There might be low morale and also reduced productivity at this phase which ought to not be taken as a trouble. It is throughout this phase that Lewis will certainly have to give assistance to the department to make sure that they can find a sense of direction. It can be seen how Krasnow has actually currently made this change much easier by making Lewis obtain associated with the department a year before his actual departure. According to Bridges' Design, stage three will certainly produce openness to understanding, High energy and also dedication as people will certainly welcome the adjustment (Bridges, 2004).

Maslow's Need hierarchy: The OB concern related to insecurity at the workplace has actually been caused firstly by the modification in monitoring and also secondly by the truth that the merger will certainly no longer be initiated. Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has discusses the relevance of 'protection needs as being a lower level demand of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to feel protected and also safe' goes to the 2nd degree of demands. Prior to an employee can be made to establish mentally, he requires to have his 'Physiological 'and also 'Safety' needs met. This indicates that unless the personnel are made to feel safe regarding their present work standing in The Scotts Company B Developing A Supply Chain Balanced Scorecard they might not reach 'Self-Fulfillment'. (King, 2009).

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

Effects of Analysis.

The OB analysis has actually looked at numerous concepts to recognize exactly how to cope with the current circumstance handy. The following three options have been suggested to help Lewis take care of the organizational difficulties in the advertising and marketing department. Each of these choices has been suggested for easing the transition required to bring the advertising and marketing division according to the needs of the market and also for making the social adjustment that would follow when the present leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting as well as Manufacturing functions. Integration of Advertising with Procedures.

Assessment of Alternatives.

Combination of Advertising & Marketing Functions: The in-house marketing firm of The Scotts Company B Developing A Supply Chain Balanced Scorecard is already stamina for the organization in regards to saving up on expenses associated with marketing and also promotion. Because no brand-new employment has actually been done after Bridget Cole's separation with the coverage line being straight appointed to Krasnow for the marketing feature, this is a positive opportunity for incorporating the marketing and advertising features. Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merging days has know-how in business-to-business marketing together with firm and also retail marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both advertising and marketing features.

The advantage of this method is that it will certainly integrate the two functions while lowering the demand for hiring an added source for advertising. In addition to this, Lewis would be heading the advertising department and all the same her substitute would certainly be needed for the existing duty that she is performing. The negative aspect of this choice is that outside hiring might bring about animosity from interior workers that may be eying the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Manufacturing: Provided the affordable stress as well as high quality work required from the advertising and marketing agency, it is suggested that Lewis must allow the manufacturing unit to be a different feature from the advertising and marketing unit. Given that many advertising companies had these two features as separate systems, it makes more sense to adhere to the standard.

Integration of Advertising And Marketing with Procedures: Because Lewis is currently taking care of the advertising and marketing as well as operations departments all at once; it makes sense to incorporate the 2 features since she has been efficiently taking treatment of both ends. The truth that Lewis has to adjust her administration design for the advertising department suggests that these two divisions would be culturally varied.


An examination of the three alternatives indicates that integration of marketing and also operations would certainly not be a feasible step as a result of the substantial distinctions in between both departments although that presently Lewis is handling both. While separation of the manufacturing feature might have been a desirable action for the advertising and marketing division, the fact that it would certainly imply putting a third feature under Lewis's wing implies this must be prevented. The assimilation of the advertising division is the most effective alternative in terms of obtaining the optimal arise from the division. An activity prepare for this option is reviewed below.

Activity Plan.

Lewis will certainly take control of the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

Manufacturing feature will remain component of advertising under advertising feature.

Lewis will divide herself from procedures.

A democratic management style with employee empowerment will certainly be utilized in marketing department.

Open up door policy as well as focus on cross department communication will certainly be targeted at eliminating disharmony.

Backup strategy.

If the combination does not exercise as planned, a contingency plan would certainly adhere to which would separate the production feature from the advertising function to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the marketing department without an SVP. Because case the manufacturing function will most definitely be separated by positioning it under an SVP manufacturing.