Anchoring And First Offers In Negotiation Case Study Solution


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Anchoring And First Offers In Negotiation Case Study Analysis

Background and Facts

Anchoring And First Offers In Negotiation an office materials retailer for tiny as well as moderate sized businesses has actually lately been associated with preparing for a merging with its rival Home Deport, which has impacted effectiveness degrees in departmentswith the senior supervisor involved in lawful issues presented by the government Trade Commission. With the Advertising and marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the duty in the near future. With challenges in the type of a possible social change as well as reduced worker spirits, the company requires a full reengineering initiative at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible social change at the advertising department of Anchoring And First Offers In Negotiation is increasing unpredictability in the workplace bring about numerous 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 strategic choices because Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Profession Compensation's treatment in the process. Offered the fact that the store has a worldwide presence with branches in UK, USA, Canada as well as Germany, political consider each of these countries might be able to affect performance or critical goals. Federal Trade Payment's antitrust fit against the merger used up useful time of the company's senior management recommending that 'political' factors can have severe effects for an international organisation.

Economic Factors: Financial factors such as the development of local business in the international situation recommend that Anchoring And First Offers In Negotiation is prospering in a setting where there is potential development of businesses. Fact that shop customers are mainly looking for office supplies for residence workplaces recommends that the market has an increasing fad of business owners and house based services.

Social factors: Social patterns in the economic climate show that clients are searching for benefit in addition to appealing prices. Market research demonstrates how the consumer for Anchoring And First Offers In Negotiation lacks recognition concerning locating services which can supply a mix of benefit and also low costs.

Technical factors: Innovation plays a crucial function in Anchoring And First Offers In Negotiation's organisation approach particularly as the company is piloting Innovation facilities which would provide innovation sales and support in the form of memory upgrades, outer installments. (Recap of PARASITE in appendix 2).

OB Issues and also Symptoms.

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

Uneasiness concerning cultural adjustment: There is worry concerning a social change that would certainly occur as soon as Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with most of the personnel currently revealing unhappiness over this possible action. This anticipated adjustment has created stress and anxiety in the workplace which has been coupled with the previous stress and anxiety of preparing the firm for a prospective merger with Residence Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is lack of employees that can match the stressful environment of a hectic company. Not just does this bring about difficulty in finding the best people, it puts tension on new hires as can not withstand the speed and stress that the organization expects them to bear.

Twin Coverage Lines: Newbies locate this organizational culture difficult as well as difficult to deal with specifically as dotted line partnerships are suggested to be weaker in general and also unbiased setup and performance examination is still done by the solid line supervisor. This suggests that newcomers can shed clarity concerning their corresponding functions and also objectives particularly as dotted line reporting does not keep them in straight interaction with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been hypothesized that the latter would take Krasnow's position came as an impact to her spirits. Lewis may have been capable and also ideal for the task but the truth that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from services.

Concern & Job Instability: Fear as well as instability can be determined as 2 significant problems that Lewis would certainly be handling specifically as the merger has actually now be cancelled as well as two senior executives of the marketing division would certainly be leaving. The entire obligation of the department would be dropping on Lewis's shoulders that would certainly not just supervise of brining about a cultural change but would additionally need to confirm herself in her brand-new function.

Inappropriate Administration Design of Leader: Lewis's management style as well as its conflict with the advertising division's duty can likewise be viewed as an OB challenge specifically as she has been used to managing concerns in the procedures department where employees are instructed to focus on processes and also obtain them right. The advertising and marketing division on the other hand can be viewed as a group of individuals who are used to being supported by Krasnow that concentrated much more on output than processes.

Interdepartmental Differences: Interdepartmental disagreements in between three divisions, advertising, merchandizing as well as procedures specifically over the allocation of the marketing mix can be identified as an additional OB concern. Although the advertising division does not share the exact same vision as the other 2 divisions relating to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and operations divisions do not concur over the marketing mix allowance among one another either.

Fragmentation in Advertising Division: Fragmentation between the marketing and advertising divisions can be determined as another OB issue which can need additional attention. The truth that the advertising and marketing sections in the advertising division are disconnected is stopping both divisions from acquiring from each other's experience as well as competence. Integration of advertising with retailing and operations would certainly come to be harder if the advertising and marketing division itself is broken down which can be an additional potential OB problem.

Anchoring And First Offers In Negotiation Analysis

Numerous theories have been utilized to clarify the conditions to get more clarity about the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that staffs are easy as well as lazy, have little aspiration as well as stand up to adjustment. The situation at Anchoring And First Offers In Negotiation is not entirely adhering to Concept X, it can be seen that brand-new hires are locating this environment instead stressful which might ultimately lead to a better inclination of the administration in the direction of Concept X. Even while analyzing Lewis's management design, theory X may have been suitable in the procedures division to some extent but the Advertising and marketing division would require reliance on Concept Y in order to get the imagination and also originality from the groups.

Tuckman's Synergy Theory: As for Lewis's problem about bringing consistency between the marketing and advertising division is concerned, this would at first cause clash as gone over by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, during the first stage of team growth, individuals might not bond, as they are hectic finding their location in the group. By integrating the advertising and marketing department's job, there may be the same preliminary separate which might bring about the 2nd phase of 'storming' where the teams test one another. It is just during the 3rd phase or 'norming' when they would certainly come with each other to share concepts prior to the team can bring around harmony in the fourth phase 'carrying out'.

Bridges' Shift Version: As per William Bridge's concept (appendix 4), individuals are quite uneasy with adjustment, which is apparent by the situation at Anchoring And First Offers In Negotiation The situation can be seen as a typical program of life if is studied as per Bridge's theory where he explains that individuals experience three phases of shift when they experience modification. 'Ending, losing and also Letting go', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they enter phase one and so there may be feelings like despair, unpredictability, aggravation, temper, concern, denial and also disorientation.The circumstance at the marketing division of Anchoring And First Offers In Negotiation is similar so Lewis can get comfy with the idea that it is not extraordinary habits. In the 2nd stage, there may be a need to bridge the gap in between the brand-new and old culture so Lewis may need to encounter this ordeal once Krasnow leaves. There might be low spirits and also low performance at this stage which should not be taken as a problem. It is throughout this phase that Lewis will need to offer support to the division so that they can find an orientation. It can be seen exactly how Krasnow has actually currently made this transition easier by making Lewis obtain associated with the department a year prior to his actual departure. Based on Bridges' Design, phase three will certainly cause visibility to discovering, High energy and also dedication as individuals will accept the change (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB issue related to insecurity at the work environment has actually been caused to start with by the modification in management and also second of all by the reality that the merging will no more be initiated. Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has reviews the value of 'safety needs as being a reduced degree requirement of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to really feel safe and secure and also untouched' is at the second degree of requirements. Prior to a staff member can be made to develop mentally, he needs to have his 'Physical 'and 'Security' needs fulfilled. This shows that unless the employees are made to really feel secure concerning their present employment condition in Anchoring And First Offers In Negotiation they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Anchoring And First Offers In Negotiation Case Study

Ramification of Analysis.

The OB analysis has actually considered numerous concepts to comprehend just how to deal with the present circumstance at hand. The following three options have been suggested to assist Lewis take care of the business obstacles in the advertising department. Each of these options has been recommended for easing the change needed to bring the advertising department in accordance with the demands of the marketplace and for making the cultural modification that would certainly adhere to once the existing leader leaves.

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

Evaluation of Alternatives.

Combination of Advertising And Marketing & Advertising And Marketing Functions: The internal advertising firm of Anchoring And First Offers In Negotiation is already toughness for the company in regards to saving up on expenses associated with advertising as well as promotion. Since no new recruitment has actually been done after Bridget Cole's departure with the coverage line being directly appointed to Krasnow for the advertising feature, this is a desirable opportunity for incorporating the marketing and advertising features. Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merging days has expertise in business-to-business advertising and marketing along with firm and also retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to handle both advertising and marketing functions.

The benefit of this method is that it will integrate the two functions while lowering the need for working with an additional resource for marketing. Lewis would certainly be heading the marketing division as well as in any type of case her replacement would be required for the existing duty that she is performing. The drawback of this option is that exterior hiring may cause bitterness from inner personnel that may be looking at the placement of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting as well as Production: Offered the affordable pressures and high top quality job required from the advertising agency, it is recommended that Lewis should enable the manufacturing device to be a separate feature from the marketing unit. Given that the majority of advertising agencies had these two functions as separate devices, it makes more sense to adhere to the standard.

Combination of Advertising And Marketing with Procedures: Considering that Lewis is already dealing with the marketing as well as procedures divisions at the same time; it makes good sense to incorporate both features because she has actually been efficiently caring for both ends. The truth that the two departments currently have significant differences over allocation of sources suggests that this assimilation may have the ability to bring about harmony especially as Lewis would be heading both ends.However there are various negative aspects of this relocation particularly as it would certainly place too much concern over Lewis's shoulders. The truth that Lewis needs to adapt her management style for the advertising department suggests that these 2 departments would be culturally varied. In addition to this, Lewis might not have the ability to use one kind of management design to both departments which might cause inadequacy in either one of both features.


An analysis of the 3 choices suggests that combination of marketing and procedures would not be a possible action due to the huge distinctions in between both divisions despite the fact that presently Lewis is dealing with both. While splitting up of the production feature may have been a desirable relocation for the marketing division, the truth that it would certainly imply putting a third feature under Lewis's wing indicates this need to be avoided. The combination of the advertising and marketing department is the most effective option in terms of obtaining the ideal arise from the department. An activity plan for this choice is discussed listed below.

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

Advertising and Marketing features would be merged.

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

Production function will certainly remain component of marketing under marketing feature.

Lewis will certainly divide herself from operations.

An autonomous management style with worker empowerment will be utilized in advertising department.

Open up door plan as well as emphasis on cross department communication will be targeted at eliminating disharmony.

Contingency strategy.

If the integration does not exercise as prepared, a contingency strategy would certainly follow which would certainly separate the manufacturing function from the advertising feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the manufacturing function will most definitely be separated by putting it under an SVP production.