Anchoring And First Offers In Negotiation Case Study Solution


Home >> Darden >> Anchoring And First Offers In Negotiation >>

Anchoring And First Offers In Negotiation Case Study Analysis

Background and Facts

Anchoring And First Offers In Negotiation an office supplies retailer for tiny and medium sized companies has recently been involved in preparing for a merger with its competitor House Deport, which has affected performance levels in departmentswith the elderly manager associated with lawful problems put forth by the government Trade Compensation. With the Advertising and marketing Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the role in the near future. With challenges in the form of a prospective cultural modification as well as reduced worker spirits, the organization wants a complete reengineering effort at the advertising division.

Problem Declaration

The prospective social change at the advertising department of Anchoring And First Offers In Negotiation is raising unpredictability in the working environment resulting in different difficulties for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing critical decisions given that Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Profession Compensation's treatment at the same time. Offered the reality that the store has a global existence with branches in UK, USA, Canada and Germany, political consider each of these nations may have the ability to influence efficiency or calculated objectives. Federal Profession Payment's antitrust match versus the merging used up valuable time of the company's senior monitoring suggesting that 'political' factors can have major implications for a worldwide service.

Economic Factors: Economic factors such as the appearance of small businesses in the international scenario suggest that Anchoring And First Offers In Negotiation is thriving in an environment where there is potential growth of businesses. In addition to this, truth that shop clients are mostly searching for workplace products for office recommends that the market has a climbing trend of entrepreneurs and online organisations.

Social factors: Social fads in the economy show that consumers are searching for convenience along with appealing costs. Market research demonstrates how the consumer for Anchoring And First Offers In Negotiation lacks recognition about discovering services which can use a combination of ease and also affordable.

Technical factors: Modern technology plays an essential role in Anchoring And First Offers In Negotiation's company approach particularly as the organization is piloting Innovation centers which would certainly provide modern technology sales as well as support in the kind of memory upgrades, peripheral setups. (Summary of PARASITE in appendix 2).

OB Issues and Effects.

Several underlying Organizational Habits problems can be seen in Anchoring And First Offers In Negotiation's case as highlighted in this area.

Concerns concerning cultural modification: There is apprehension about a social change that would certainly happen when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising And Marketing with most of the team member currently revealing discontent over this prospective relocation. This expected change has actually produced anxiety in the work environment which has actually been paired with the previous anxiety of preparing the company for a potential merging with Home Deport.

Difficult Task Environment for Newcomers: There is lack of workers that can match the stressful environment of a fast-paced organization. Not just does this result in problem in discovering the right individuals, it puts stress and anxiety on brand-new hires as can not endure the rate as well as stress that the organization expects them to bear.

Double Reporting Lines: Newcomers discover this organizational culture troublesome and challenging to cope with particularly as populated line relationships are suggested to be weaker in general as well as unbiased setup and also performance analysis is still done by the solid line supervisor. This indicates that newcomers might shed clarity about their respective roles and also objectives specifically as dotted line coverage does not keep them in direct interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had been guessed that the last would certainly take Krasnow's position came as a strike to her spirits. Lewis may have been qualified and proper for the work however the truth that Kransnow's separation would make Coles a straight report to Lewis may have been the reason for Coles' resignation from services.

Worry & Job Insecurity: Fear and also insecurity can be identified as 2 significant worries that Lewis would be dealing with especially as the merger has actually currently be cancelled and two senior executives of the marketing division would be leaving. The entire responsibility of the department would certainly be dropping on Lewis's shoulders that would certainly not just supervise of brining about a social modification but would likewise have to verify herself in her new function.

Inappropriate Administration Style of Leader: Lewis's monitoring style and also its conflict with the marketing department's function can additionally be seen as an OB obstacle specifically as she has been utilized to handling issues in the operations division where personnel are taught to concentrate on procedures and also get them right. The advertising department on the other hand can be seen as a team of individuals that are utilized to being nurtured by Krasnow that concentrated extra on result than procedures.

Interdepartmental Differences: Interdepartmental disagreements in between three divisions, advertising, merchandizing and also operations respectively over the allowance of the advertising mix can be identified as an additional OB concern. Although the advertising division does not share the same vision as the various other two divisions pertaining to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and also operations departments do not agree over the advertising mix appropriation amongst one another either.

Fragmentation in Advertising And Marketing Department: Fragmentation between the advertising and marketing divisions can be recognized as one more OB problem which could need more attention. The reality that the marketing and advertising areas in the advertising and marketing department are separated is stopping both divisions from getting from each various other's experience and also knowledge. Integration of advertising and marketing with retailing and procedures would certainly become more difficult if the advertising and marketing division itself is broken down which can be one more possible OB worry.

Anchoring And First Offers In Negotiation Analysis

Different concepts have been made use of to explain the circumstances to obtain more clarity regarding the circumstance handy.

McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many supervisors believe that juniors are easy as well as careless, have little ambition and stand up to adjustment. The difficult version of this theory highlighted browbeating, tight controls, threats and also penalties. Over time it produces low productivity, refined sabotage as well as rivalry (Deal, 2003). Although the circumstance at Anchoring And First Offers In Negotiation is not entirely complying with Concept X, it can be seen that new hires are discovering this atmosphere rather difficult which might ultimately lead to a better inclination of the management towards Theory X. According to McGregor's advocated sight, which he called Concept Y, the important job of the administration is to set up organizational conditions to ensure that individuals can attain their own goals best by guiding their efforts towards business rewards. If individuals discover no complete satisfaction in their work, the monitoring would certainly have little selection however to rely upon concept X and also exterior control (Deal, 2003). Even while analyzing Lewis's monitoring design, theory X may have appropriated in the operations division to some extent however the Marketing division would certainly call for reliance on Theory Y in order to get the creativity as well as originality from the teams.

Tuckman's Teamwork Concept: As far as Lewis's issue about bringing consistency between the marketing and advertising and marketing division is worried, this would originally lead to conflict as discussed by Bruce Tuckman in his 'Team effort Theory'. By integrating the marketing and marketing division's job, there might be the exact same preliminary disconnect which can lead to the second stage of 'storming' where the teams test one an additional.

When people are offered with change, they enter stage one and so there might be feelings like sadness, unpredictability, frustration, rage, worry, denial and also disorientation.The situation at the advertising and marketing department of Anchoring And First Offers In Negotiation is comparable so Lewis can obtain comfy with the concept that it is not extraordinary habits. It is throughout this stage that Lewis will have to offer advice to the division so that they can find a feeling of direction. It can be seen just how Krasnow has already made this shift easier by making Lewis obtain involved in the department a year before his real departure.

Maslow's Need hierarchy: The OB concern related to insecurity at the office has actually been caused to start with by the change in management and secondly by the fact that the merger will no longer be launched. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has goes over the relevance of 'protection requires as being a lower degree demand of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the requirement to feel safe as well as safe' goes to the second level of requirements. Prior to an employee can be made to develop emotionally, he needs to have his 'Physiological 'and also 'Safety' requires met. This suggests that unless the employees are made to feel safe concerning their existing employment standing in Anchoring And First Offers In Negotiation they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Anchoring And First Offers In Negotiation Case Study

Implication of Analysis.

The OB analysis has checked out different theories to comprehend exactly how to cope with the existing scenario handy. The complying with three alternatives have actually been recommended to assist Lewis take care of the organizational obstacles in the marketing department. Each of these alternatives has been suggested for reducing the change required to bring the advertising and marketing department in line with the needs of the market and also for making the social modification that would comply with once the present leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting and Production features. Integration of Marketing with Workflow.

Assessment of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis during the earlier merger days has knowledge in business-to-business advertising and marketing along with agency and retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to take care of both advertising and marketing and advertising and marketing features.

The benefit of this strategy is that it will integrate both functions while minimizing the need for hiring an added source for advertising. Lewis would be heading the marketing division and also in any type of case her substitute would certainly be needed for the current role that she is doing. The disadvantage of this option is that exterior hiring may bring about bitterness from inner employees that may be eying the placement of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Production: Provided the competitive stress as well as top quality work needed from the advertising agency, it is recommended that Lewis must permit the production unit to be a separate feature from the advertising device. Given that many ad agency had these two functions as different devices, it makes even more feeling to follow the norm. Both features might be able to concentrate on their core activates extra effectively. The downside of this technique would certainly be that additional costs would have to be birthed for setting up different production features. A production head might have to be worked with which could increase expenses for the organization.

Integration of Marketing with Procedures: Since Lewis is already taking care of the marketing and also procedures departments concurrently; it makes sense to integrate both features given that she has been efficiently looking after both ends. The truth that both departments already have major differences over appropriation of sources recommends that this integration may be able to cause harmony particularly as Lewis would be heading both ends.However there are different drawbacks of this relocation specifically as it would place too much concern over Lewis's shoulders. The reality that Lewis has to adjust her monitoring design for the advertising division suggests that these two divisions would be culturally diverse. Lewis may not be able to use one kind of leadership style to both divisions which could result in inadequacy in either one of the two features.


An analysis of the 3 choices shows that assimilation of advertising as well as operations would certainly not be a viable step due to the vast differences in between the 2 divisions despite the truth that currently Lewis is dealing with both. While splitting up of the production function may have been a positive relocation for the advertising department, the fact that it would indicate putting a 3rd function under Lewis's wing implies this must be avoided.

Action Plan.

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

Marketing and advertising features would certainly be merged.

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

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

Lewis will separate herself from procedures.

A democratic management style with employee empowerment will be used in advertising division.

Open up door plan as well as focus on cross departmental communication will be targeted at removing dissonance.

Backup strategy.

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