Third Party Logistics Services B Flying Cargo Case Study Solution


Home >> Chicago Booth >> Third Party Logistics Services B Flying Cargo >>

Third Party Logistics Services B Flying Cargo Case Study Help

Background and Facts

Third Party Logistics Services B Flying Cargo a workplace supplies retailer for tiny and also moderate sized organisations has actually recently been involved in preparing for a merger with its rival Home Deport, which has actually affected effectiveness degrees in departmentswith the elderly supervisor associated with lawful difficulties presented by the government Trade Commission. With the Marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the near future. With challenges in the kind of a possible cultural adjustment and reduced employee morale, the company is in need of a total reengineering effort at the marketing division.

Problem Declaration

The prospective social adjustment at the marketing department of Third Party Logistics Services B Flying Cargo is boosting unpredictability in the workplace leading to various difficulties 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 calculated choices because Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Trade Compensation's intervention in the process. Given the reality that the shop has a global presence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries might have the ability to impact efficiency or calculated goals. Federal Trade Compensation's antitrust fit against the merging occupied valuable time of the company's senior monitoring suggesting that 'political' factors can have major implications for a global organisation.

Economic Factors: Financial factors such as the emergence of local business in the international situation recommend that Third Party Logistics Services B Flying Cargo is growing in an environment where there is potential growth of companies. Truth that store customers are mostly looking for office supplies for residence offices suggests that the market has a climbing fad of business owners as well as home based organisations.

Social factors: Social trends in the economy reveal that clients are looking for comfort along with eye-catching rates. Market research shows how the consumer for Third Party Logistics Services B Flying Cargo does not have recognition regarding finding options which can provide a mix of benefit and inexpensive.

Technological factors: Technology plays a crucial function in Third Party Logistics Services B Flying Cargo's organisation strategy especially as the organization is piloting Innovation facilities which would certainly use technology sales as well as support in the form of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and Manifestations.

Several underlying Organizational Habits problems can be seen in Third Party Logistics Services B Flying Cargo's case as highlighted in this section.

Concerns concerning cultural adjustment: There is apprehension regarding a cultural adjustment that would happen once Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with most of the employee currently revealing unhappiness over this prospective action. This expected change has created tension in the office which has actually been paired with the past stress and anxiety of preparing the company for a potential merger with House Deport.

Demanding Job Setting for Newcomers: There is lack of personnel that can match the demanding setting of a fast-paced company. Not only does this cause problem in finding the right people, it places tension on brand-new hires as can not hold up against the rate as well as stress that the organization expects them to birth.

Dual Reporting Lines: Newcomers discover this business culture difficult and difficult to manage specifically as populated line partnerships are suggested to be weaker in general and unbiased setting and performance evaluation is still done by the strong line supervisor. This suggests that newcomers could lose clearness about their particular duties as well as objectives particularly as populated line reporting does not maintain them in direct communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles despite the fact that it had been hypothesized that the last would take Krasnow's placement came as a strike to her spirits. Lewis might have been capable as well as suitable for the task yet the fact that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Task Insecurity: Worry and insecurity can be identified as two major worries that Lewis would be handling especially as the merging has now be cancelled as well as 2 elderly executives of the marketing department would certainly be leaving. The whole duty of the department would certainly be falling on Lewis's shoulders that would certainly not just be in charge of brining concerning a cultural change yet would certainly also need to confirm herself in her new function.

Inappropriate Management Design of Leader: Lewis's management design and its incompatibility with the advertising and marketing department's role can likewise be viewed as an OB difficulty specifically as she has actually been made use of to taking care of problems in the procedures department where personnel are instructed to focus on processes as well as get them right. The marketing department on the various other hand can be viewed as a group of individuals that are used to being nurtured by Krasnow who focused a lot more on result than procedures.

Interdepartmental Arguments: Interdepartmental disagreements between 3 departments, advertising and marketing, merchandizing as well as procedures specifically over the allocation of the advertising mix can be determined as one more OB worry. The advertising and marketing department does not share the exact same vision as the various other 2 departments pertaining to the aloocation of the marketing mix twoards promos and advertsing, the merchandizing as well as procedures divisions do not agree over the advertising mix appropriation among one an additional either.

Disintegration in Advertising And Marketing Division: Fragmentation between the marketing and advertising divisions can be recognized as another OB concern which might need further interest. The truth that the advertising and marketing areas in the advertising department are detached is preventing both divisions from acquiring from each various other's experience and competence. Combination of advertising and marketing with merchandising as well as procedures would certainly come to be more difficult if the advertising division itself is broken down which can be an additional potential OB concern.

Third Party Logistics Services B Flying Cargo Analysis

Numerous theories have actually been utilized to clarify the situations to obtain additional clearness regarding the situation available.

McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that subordinates are passive and careless, have little aspiration and stand up to change. The circumstance at Third Party Logistics Services B Flying Cargo is not entirely adhering to Theory X, it can be seen that new hires are locating this setting rather demanding which might eventually lead to a greater disposition of the monitoring towards Concept X. Also while evaluating Lewis's administration design, concept X might have been suitable in the procedures department to some level yet the Marketing division would require dependence on Concept Y in order to get the imagination and originality from the teams.

Tuckman's Synergy Concept: As much as Lewis's problem concerning bringing consistency in between the marketing as well as advertising division is worried, this would originally lead to conflict as talked about by Bruce Tuckman in his 'Teamwork Theory'. By combining the advertising and advertising division's work, there may be the exact same first disconnect which can lead to the second phase of 'storming' where the teams test one another.

Bridges' Transition Model: Based On William Bridge's concept (appendix 4), people are fairly unpleasant with modification, which is evident by the circumstance at Third Party Logistics Services B Flying Cargo The circumstance can be seen as a typical program of life if is studied as per Bridge's theory where he explains that individuals go through three phases of shift when they experience adjustment. 'End, shedding and also Releasing', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When individuals are presented with adjustment, they go into stage one therefore there may be feelings like despair, uncertainty, stress, anger, anxiety, rejection and also disorientation.The situation at the marketing department of Third Party Logistics Services B Flying Cargo is comparable so Lewis can get comfortable with the suggestion that it is not phenomenal actions. In the second stage, there might be a demand to connect the void between the new and also old society so Lewis may have to face this ordeal once Krasnow leaves. There might be low spirits as well as reduced productivity at this phase which ought to not be taken as a setback. It is throughout this phase that Lewis will certainly have to offer guidance to the division so that they can locate a sense of direction. It can be seen how Krasnow has actually currently made this change less complicated by making Lewis obtain associated with the division a year prior to his actual departure. Based on Bridges' Model, stage 3 will cause openness to learning, High power and dedication as people will certainly welcome the adjustment (Bridges, 2004).

Maslow's Requirement hierarchy: The OB problem pertaining to instability at the office has actually been caused firstly by the adjustment in administration and second of all by the fact that the merging will certainly no more be launched. Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has discusses the value of 'safety and security needs as being a lower degree need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel secure as well as untouched' goes to the 2nd degree of requirements. Prior to a worker can be made to develop psychologically, he needs to have his 'Physiological 'as well as 'Security' requires fulfilled. This shows that unless the employees are made to feel safe and secure about their present employment status in Third Party Logistics Services B Flying Cargo they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Third Party Logistics Services B Flying Cargo Case Study

Implication of Analysis.

The OB analysis has actually looked at various theories to recognize exactly how to cope with the current scenario available. The adhering to 3 choices have actually been suggested to help Lewis deal with the business difficulties in the advertising and marketing department. Each of these options has been recommended for reducing the transition needed to bring the marketing department in line with the needs of the market as well as for making the cultural modification that would adhere to when the existing leader leaves.

Combination of advertising and marketing functions. Separating Adverting and Production features. Integration of Advertising And Marketing with Workflow.

Assessment of Alternatives.

Assimilation of Advertising And Marketing & Marketing Functions: The in-house advertising and marketing company of Third Party Logistics Services B Flying Cargo is currently toughness for the organization in regards to saving up on expenses related to advertising as well as promotion. Considering that no new employment has been done after Bridget Cole's departure with the coverage line being directly assigned to Krasnow for the advertising and marketing feature, this is a desirable possibility for integrating the advertising and marketing features. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merging days has know-how in business-to-business advertising together with agency and retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to deal with both advertising and marketing features.

The benefit of this strategy is that it will certainly integrate both functions while reducing the need for employing an added source for advertising and marketing. Along with this, Lewis would be heading the advertising department and also all the same her substitute would be needed for the present function that she is performing. The negative aspect of this choice is that outside hiring may produce resentment from internal employees that might be eying the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Production: Offered the affordable stress as well as excellent quality job required from the advertising agency, it is advised that Lewis should permit the production system to be a different function from the marketing device. Given that the majority of ad agency had these two functions as separate devices, it makes even more feeling to comply with the standard. In addition to this, both functions might be able to focus on their core turns on much more successfully. The disadvantage of this method would be that added prices would certainly have to be borne for setting up different manufacturing functions. Along with this, a manufacturing head might need to be hired which can boost overheads for the organization.

Assimilation of Marketing with Workflows: Because Lewis is currently caring for the advertising and also operations departments all at once; it makes good sense to incorporate the two features since she has been efficiently caring for both ends. The truth that both divisions already have major differences over allocation of resources recommends that this combination might be able to cause harmony particularly as Lewis would be heading both ends.However there are numerous disadvantages of this step especially as it would place excessive burden over Lewis's shoulders. The fact that Lewis has to adjust her administration style for the marketing department suggests that these 2 departments would certainly be culturally diverse. In addition to this, Lewis may not have the ability to apply one sort of leadership style to both departments which can cause inefficiency in either one of both features.


An assessment of the 3 options shows that integration of advertising and marketing as well as operations would certainly not be a viable action due to the vast differences between the two departments regardless of the fact that currently Lewis is managing both. While separation of the manufacturing function might have been a beneficial relocation for the advertising and marketing division, the fact that it would certainly indicate putting a 3rd feature under Lewis's wing suggests this ought to be prevented.

Activity Strategy.

Lewis will take over the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would be merged.

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

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

Lewis will separate herself from operations.

A democratic management style with staff member empowerment will be made use of in advertising and marketing department.

Open up door plan and also focus on cross department communication will be aimed at removing discord.

Backup strategy.

If the assimilation does not work out as prepared, a backup strategy would comply with which would separate the production feature from the advertising function 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 department without an SVP. Because case the manufacturing feature will most definitely be separated by putting it under an SVP production.