Eric Wood A Case Study Help


Home >> Darden >> Eric Wood A >>

Eric Wood A Case Study Solution

Background and Facts

Eric Wood A a workplace supplies seller for tiny and moderate sized organisations has recently been involved in preparing for a merging with its competitor Home Deport, which has actually influenced effectiveness degrees in departmentswith the elderly supervisor associated with lawful issues presented by the government Trade Compensation. With the Advertising Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the near future. With difficulties in the type of a potential cultural change and reduced employee spirits, the organization requires a full reengineering effort at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective social modification at the marketing division of Eric Wood A is boosting uncertainty in the workplace resulting in various challenges for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing calculated decisions because Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Profession Compensation's treatment while doing so. Offered the reality that the shop has an international visibility with branches in UK, USA, Canada as well as Germany, political factors in each of these nations may have the ability to affect performance or calculated goals. Federal Trade Payment's antitrust fit versus the merging took up useful time of the company's senior administration suggesting that 'political' factors can have severe implications for an international company.

Economic Factors: Economic factors such as the appearance of small companies in the global situation suggest that Eric Wood A is growing in an environment where there is prospective growth of companies. Along with this, fact that store clients are mostly trying to find workplace materials for home offices suggests that the marketplace has an increasing pattern of entrepreneurs and also home based services.

Social factors: Social trends in the economy show that customers are seeking benefit in addition to eye-catching prices. Market research demonstrates how the client for Eric Wood A lacks understanding about locating services which can supply a combination of ease and also affordable.

Technical factors: Innovation plays a vital duty in Eric Wood A's business approach especially as the organization is piloting Technology centers which would certainly use innovation sales and support in the kind of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues and also Effects.

Several underlying Organizational Behavior problems can be seen in Eric Wood A's case as highlighted in this area.

Uneasiness about social modification: There is uneasiness about a cultural adjustment that would occur as soon as Todd Krasnow leaves from his position as the Executive Vice President of Marketing with most of the employee already showing unhappiness over this possible relocation. This expected modification has actually developed tension in the work environment which has actually been paired with the previous tension of preparing the company for a prospective merger with House Deport.
Pest Analysis
Demanding Work Environment for Newcomers: There is lack of personnel that can match the stressful environment of a fast-paced company. Not only does this result in difficulty in discovering the ideal individuals, it places stress on brand-new hires as can not endure the pace as well as pressure that the organization anticipates them to birth.

Dual Reporting Lines: Newbies find this business society troublesome and also tough to cope with specifically as populated line relationships are indicated to be weak in general as well as objective setting as well as efficiency assessment is still done by the solid line manager. This implies that beginners could shed clearness concerning their respective functions and objectives especially as dotted line reporting does not keep them in direct communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had actually been guessed that the latter would certainly take Krasnow's setting came as a strike to her spirits. Lewis might have been capable as well as proper for the job however the reality that Kransnow's departure would make Coles a straight record to Lewis may have been the reason for Coles' resignation from services.

Anxiety & Work Insecurity: Anxiety as well as insecurity can be identified as 2 significant worries that Lewis would certainly be managing especially as the merger has now be terminated as well as 2 elderly executives of the advertising and marketing division would certainly be leaving. The whole duty of the department would certainly be dropping on Lewis's shoulders that would certainly not simply be in charge of brining regarding a cultural modification however would additionally need to verify herself in her brand-new duty.

Incompatible Administration Design of Leader: Lewis's management style and also its conflict with the advertising and marketing division's duty can additionally be seen as an OB difficulty specifically as she has actually been made use of to taking care of concerns in the operations department where employees are shown to concentrate on processes and also get them. The advertising and marketing division on the various other hand can be seen as a team of people that are made use of to being nurtured by Krasnow that focused a lot more on result than processes.

Interdepartmental Arguments: Interdepartmental disputes between three departments, advertising, merchandizing and also procedures respectively over the allocation 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 departments relating to the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and also operations departments do not agree over the marketing mix appropriation among each other either.

Fragmentation in Advertising And Marketing Division: Disintegration between the advertising and marketing departments can be identified as another OB problem which could require further attention. The truth that the marketing and advertising sections in the advertising division are separated is avoiding both divisions from acquiring from each other's experience and experience. Assimilation of advertising with retailing and also operations would come to be harder if the advertising department itself is broken down which can be another potential OB issue.

Eric Wood A Analysis

Numerous concepts have actually been made use of to discuss the conditions to obtain further clarity about the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers think that subordinates are easy and careless, have little passion as well as withstand adjustment. The hard variation of this concept stressed browbeating, limited controls, threats and penalties. Over time it creates low productivity, refined sabotage and also rivalry (Bargain, 2003). Although the circumstance at Eric Wood A is not completely complying with Concept X, it can be seen that new hires are finding this environment instead stressful which might eventually result in a higher inclination of the management towards Concept X. Based on McGregor's advocated sight, which he called Concept Y, the necessary task of the management is to arrange business problems to ensure that individuals can achieve their own objectives best by routing their efforts towards business benefits. If people find no fulfillment in their job, the management would certainly have little option however to depend on concept X and also external control (Offer, 2003). Also while analyzing Lewis's monitoring style, concept X might have been suitable in the operations department to some extent however the Marketing department would certainly require reliance on Theory Y so as to get the creative thinking and also originality from the teams.

Tuckman's Team effort Theory: Regarding Lewis's concern regarding bringing consistency in between the marketing and advertising department is concerned, this would originally bring about contrast as discussed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, throughout the initial phase of team growth, individuals might not bond, as they are hectic finding their area in the group. By integrating the advertising and marketing division's work, there might coincide first disconnect which can result in the 2nd phase of 'storming' where the teams test one another. However, it is only throughout the third phase or 'norming' when they would certainly integrate to share suggestions prior to the team can cause synergy in the 4th stage 'executing'.

Bridges' Shift Model: According To William Bridge's concept (appendix 4), individuals are quite unpleasant with modification, which is apparent by the circumstance at Eric Wood A The circumstance can be seen as a regular program of life if is researched according to Bridge's theory where he discusses that individuals undergo 3 phases of shift when they experience modification. 'Ending, losing and also Releasing', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When individuals exist with modification, they enter phase one therefore there might be feelings like despair, unpredictability, disappointment, rage, fear, rejection and also disorientation.The situation at the advertising and marketing division of Eric Wood A is similar so Lewis can get comfortable with the idea that it is not phenomenal behavior. In the second stage, there might be a demand to link the space between the new as well as old society so Lewis might need to encounter this ordeal once Krasnow leaves. There may be low morale as well as low performance at this stage which ought to not be taken as an obstacle. It is throughout this stage that Lewis will need to give guidance to the department so that they can discover an orientation. It can be seen how Krasnow has currently made this transition less complicated by making Lewis obtain involved in the division a year prior to his real departure. Based on Bridges' Design, phase three will certainly produce openness to learning, High energy as well as dedication as individuals will certainly welcome the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB problem pertaining to insecurity at the workplace has actually been caused first of all by the modification in monitoring as well as secondly by the reality that the merger will no more be started. Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has reviews the significance of 'safety needs as being a lower level need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel secure and also unharmed' is at the second level of requirements. Prior to an employee can be made to establish emotionally, he needs to have his 'Physiological 'and 'Security' needs fulfilled. This shows that unless the personnel are made to really feel safe about their existing employment status in Eric Wood A they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Eric Wood A Case Study

Effects of Analysis.

The OB analysis has actually checked out different concepts to recognize exactly how to manage the present circumstance available. The adhering to 3 options have been proposed to help Lewis take care of the business challenges in the marketing division. Each of these choices has actually been suggested for relieving the shift required to bring the marketing department in line with the demands of the market and also for making the social change that would comply with as soon as the existing leader leaves.

Integration of advertising and marketing features. Dividing Adverting as well as Production features. Combination of Marketing with Procedures.

Assessment of Alternatives.

Assimilation of Advertising And Marketing & Advertising Functions: The in-house advertising firm of Eric Wood A is currently strength for the organization in regards to conserving up on overheads associated with advertising and also promo. Because no brand-new employment has actually been done after Bridget Cole's separation with the reporting line being directly designated to Krasnow for the marketing feature, this is a beneficial opportunity for integrating the marketing and advertising features. Judith Shapiro who has earlier been interviewed by Lewis during the earlier merger days has knowledge in business-to-business advertising along with firm and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing functions.

The advantage of this strategy is that it will integrate both functions while lowering the requirement for working with an added resource for advertising and marketing. Lewis would certainly be heading the advertising and marketing division as well as in any kind of case her replacement would be required for the present duty that she is carrying out. The disadvantage of this option is that external hiring might produce bitterness from interior personnel that may be considering the setting of EVP after Lewis takes over Krasnow's position.

Separating Adverting and also Manufacturing: Offered the competitive pressures and high quality work called for from the marketing company, it is advised that Lewis should enable the production system to be a separate function from the advertising unit. Given that a lot of advertising firms had these two functions as different systems, it makes even more sense to comply with the standard.

Combination of Advertising with Workflows: Considering that Lewis is already taking treatment of the advertising and marketing and procedures departments at the same time; it makes feeling to integrate the 2 features considering that she has actually been successfully taking care of both ends. The reality that Lewis has to adjust her management style for the marketing department recommends that these 2 departments would be culturally diverse.


An assessment of the 3 options shows that integration of marketing and procedures would not be a feasible relocation due to the huge distinctions between both divisions although that presently Lewis is dealing with both. While splitting up of the production function may have been a favorable step for the advertising and marketing division, the truth that it would indicate putting a third function under Lewis's wing suggests this need to be avoided. The assimilation of the advertising department is the very best alternative in regards to getting the ideal arise from the department. An action prepare for this choice is reviewed below.

Action Strategy.
Lewis will certainly take control of the duty of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

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

Production feature will certainly stay component of marketing under advertising and marketing function.

Lewis will certainly divide herself from operations.

An autonomous leadership style with staff member empowerment will be used in advertising division.

Open up door policy and emphasis on cross department interaction will be targeted at getting rid of discord.

Backup strategy.

If the integration does not work out as prepared, a contingency plan would certainly follow which would separate the production function from the advertising feature to lower the load 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 manufacturing function will certainly be divided by putting it under an SVP production.