Cinemex Case Study Solution


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Cinemex Case Study Analysis

Background and Facts

Cinemex a workplace materials store for little and also moderate sized companies has just recently been involved in planning for a merger with its rival Residence Deport, which has actually influenced performance levels in departmentswith the senior supervisor associated with legal problems presented by the government Trade Commission. With the Marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the duty in the future. With difficulties in the kind of a prospective cultural modification and low employee spirits, the organization wants a complete reengineering effort at the advertising division.

Trouble Declaration

The potential cultural modification at the advertising and marketing division of Cinemex is boosting unpredictability in the working environment resulting in numerous difficulties for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing calculated choices since Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Profession Payment's treatment while doing so. Given the reality that the shop has a worldwide existence with branches in UK, USA, Canada and Germany, political factors in each of these countries might be able to affect efficiency or critical goals. Federal Profession Commission's antitrust suit versus the merging occupied valuable time of the organization's elderly monitoring recommending that 'political' factors can have serious implications for an international business.

Economic Factors: Financial factors such as the introduction of small companies in the worldwide circumstance suggest that Cinemex is growing in an atmosphere where there is possible development of companies. Truth that store clients are mainly looking for workplace products for house workplaces recommends that the market has a rising pattern of business owners and also home based companies.

Social factors: Social fads in the economic situation show that customers are looking for convenience in addition to attractive costs. Market research shows how the customer for Cinemex lacks recognition about discovering remedies which can provide a mix of convenience and inexpensive.

Technical factors: Technology plays a crucial function in Cinemex's business approach specifically as the company is piloting Modern technology facilities which would provide modern technology sales as well as assistance in the form of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Organizational Actions issues can be seen in Cinemex's case as highlighted in this area.

Uneasiness regarding social adjustment: There is concern regarding a cultural change that would certainly happen once Todd Krasnow leaves from his placement as the Exec Vice President of Advertising with a lot of the personnel currently showing discontent over this possible step. This predicted modification has developed stress in the office which has been paired with the previous anxiety of preparing the firm for a possible merger with Residence Deport.

Stressful Job Atmosphere for Newcomers: There is lack of personnel that can match the stressful setting of a hectic organization. Not only does this lead to problem in finding the right individuals, it puts anxiety on brand-new hires as can not stand up to the rate as well as pressure that the organization expects them to bear.

Dual Reporting Lines: Newcomers find this organizational society troublesome as well as hard to manage especially as populated line partnerships are suggested to be weaker in general and also objective setup and also efficiency evaluation is still done by the solid line supervisor. This implies that beginners could lose clarity regarding their corresponding roles as well as objectives particularly as dotted line coverage does not maintain them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles despite the fact that it had been hypothesized that the last would certainly take Krasnow's placement came as a blow to her morale. Lewis might have been qualified as well as suitable for the job yet the reality that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Job Instability: Fear as well as instability can be determined as two significant problems that Lewis would certainly be taking care of especially as the merging has actually now be cancelled and 2 senior execs of the advertising and marketing department would certainly be leaving. The whole responsibility of the division would be dropping on Lewis's shoulders that would not just supervise of brining regarding a social change yet would certainly likewise need to verify herself in her new duty.

Inappropriate Monitoring Design of Leader: Lewis's administration design and its conflict with the advertising department's function can also be viewed as an OB challenge particularly as she has been made use of to managing issues in the procedures division where personnel are instructed to focus on processes and get them right. The advertising division on the various other hand can be viewed as a group of individuals who are used to being nurtured by Krasnow that focused more on result than processes.

Interdepartmental Disagreements: Interdepartmental disagreements between 3 divisions, advertising and marketing, merchandizing as well as operations respectively over the allotment of the advertising and marketing mix can be determined as one more OB issue. Although the advertising and marketing department does not share the exact same vision as the other 2 departments relating to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and operations departments do not concur over the advertising and marketing mix allocation amongst each other either.

Disintegration in Advertising And Marketing Division: Disintegration between the marketing and advertising departments can be recognized as an additional OB concern which might require more focus. The reality that the advertising and marketing areas in the advertising and marketing department are detached is protecting against both departments from getting from each various other's experience and also proficiency. Integration of marketing with retailing and procedures would certainly come to be more difficult if the advertising and marketing division itself is disintegrated which can be another potential OB issue.

Cinemex Analysis

Different concepts have actually been used to discuss the circumstances to get more clarity concerning the circumstance available.

McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that staffs are passive as well as lazy, have little aspiration as well as stand up to change. The hard variation of this theory emphasized threat, tight controls, risks and also penalties. In time it creates reduced productivity, subtle sabotage and competition (Deal, 2003). Although the situation at Cinemex is not entirely following Concept X, it can be seen that new hires are locating this setting instead difficult which may eventually result in a higher disposition of the administration towards Concept X. Based on McGregor's supported view, which he called Concept Y, the necessary task of the management is to arrange business problems to make sure that people can achieve their very own goals best by routing their initiatives towards organizational benefits. If individuals find no fulfillment in their work, the monitoring would certainly have little option but to rely on concept X and outside control (Offer, 2003). Even while analyzing Lewis's monitoring style, theory X may have appropriated in the operations department to some extent but the Advertising division would certainly need dependence on Concept Y to get the creative thinking as well as originality from the groups.

Tuckman's Team effort Theory: As for Lewis's concern about bringing harmony in between the advertising and marketing department is concerned, this would initially result in contrast as gone over by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's concept received appendix 3, throughout the first phase of group development, individuals might not bond, as they are hectic discovering their location in the team. By combining the advertising and marketing department's job, there might coincide first disconnect which can result in the second stage of 'storming' where the groups test each other. It is just during the 3rd stage or 'norming' when they would come with each other to share suggestions prior to the group can bring around harmony in the fourth stage 'carrying out'.

When individuals are provided with adjustment, they go into stage one and also so there may be feelings like despair, unpredictability, disappointment, temper, worry, rejection and disorientation.The situation at the marketing department of Cinemex is comparable so Lewis can obtain comfortable with the suggestion that it is not amazing actions. It is during this stage that Lewis will have to offer advice to the division so that they can locate a sense of direction. It can be seen exactly how Krasnow has already made this change much easier by making Lewis obtain involved in the department a year before his actual departure.

Maslow's Demand pecking order: The OB issue pertaining to insecurity at the workplace has been triggered to start with by the modification in monitoring as well as secondly by the reality that the merging will certainly no more be initiated. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has goes over the value of 'safety and security requires as being a lower level demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel protected as well as safe' goes to the second degree of demands. Before a worker can be made to create psychologically, he requires to have his 'Physiological 'and also 'Safety and security' requires met. This indicates that unless the employees are made to feel protected about their present employment status in Cinemex they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Cinemex Case Study

Effects of Analysis.

The OB analysis has considered numerous theories to comprehend just how to deal with the existing situation available. The following three choices have been recommended to assist Lewis manage the organizational obstacles in the marketing division. Each of these choices has been suggested for easing the transition needed to bring the advertising and marketing division in line with the requirements of the marketplace and for making the social change that would certainly comply with once the present leader leaves.

Integration of marketing and advertising functions. Dividing Adverting as well as Manufacturing features. Assimilation of Advertising with Workflow.

Evaluation of Alternatives.

Judith Shapiro who has earlier been interviewed by Lewis during the earlier merger days has proficiency in business-to-business advertising along with company and retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to deal with both advertising and also advertising features.

The advantage of this approach is that it will incorporate the two functions while decreasing the requirement for hiring an additional resource for advertising. In addition to this, Lewis would be heading the advertising and marketing division and in any case her replacement would be required for the existing duty that she is carrying out. The negative aspect of this alternative is that external hiring may bring about animosity from internal personnel who might be considering the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Production: Given the competitive pressures and high top quality job needed from the advertising agency, it is suggested that Lewis needs to enable the production device to be a separate feature from the advertising device. Because most advertising and marketing companies had these 2 functions as different units, it makes even more feeling to comply with the norm.

Combination of Advertising with Workflows: Considering that Lewis is currently taking treatment of the advertising and marketing and also procedures departments simultaneously; it makes feeling to incorporate the 2 features because she has actually been successfully taking care of both ends. The fact that Lewis has to adapt her management style for the advertising and marketing division recommends that these two divisions would be culturally diverse.


An examination of the three choices suggests that integration of advertising and operations would not be a practical step as a result of the vast distinctions between both divisions although that currently Lewis is managing both. While splitting up of the production feature might have been a positive step for the advertising department, the reality that it would certainly indicate putting a 3rd function under Lewis's wing indicates this need to be avoided too. The assimilation of the advertising department is the most effective alternative in terms of getting the ideal results from the division. An activity prepare for this choice is reviewed below.

Action Plan.

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

Advertising and Marketing features would be combined.

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

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

Lewis will divide herself from operations.

An autonomous management style with staff member empowerment will be used in marketing department.

Open door policy and also focus on cross department communication will certainly be aimed at getting rid of disharmony.

Backup plan.

If the assimilation does not exercise as intended, a contingency strategy would comply with which would certainly separate the manufacturing function from the marketing feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising and marketing division without an SVP. In that case the production feature will definitely be separated by positioning it under an SVP production.