Eric Wood B Case Study Analysis


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Background and Facts

Eric Wood B an office supplies retailer for tiny as well as moderate sized businesses has lately been involved in planning for a merger with its rival Home Deport, which has influenced efficiency degrees in departmentswith the elderly manager associated with legal complications put forth by the federal Profession Commission. With the Advertising and marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the future. With challenges in the kind of a possible cultural adjustment as well as low staff member spirits, the organization is in need of a complete reengineering initiative at the advertising and marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The prospective social change at the advertising department of Eric Wood B is boosting unpredictability in the working environment causing various 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 duty in affecting tactical choices because Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Profession Payment's treatment in the process. Provided the reality that the store has a worldwide visibility with branches in UK, USA, Canada as well as Germany, political consider each of these countries might have the ability to influence efficiency or strategic goals. Federal Profession Commission's antitrust suit against the merging took up useful time of the organization's senior monitoring suggesting that 'political' factors can have significant effects for a global organisation.

Economic Factors: Financial factors such as the development of small businesses in the global circumstance suggest that Eric Wood B is thriving in an atmosphere where there is prospective growth of businesses. In addition to this, fact that store consumers are mostly trying to find workplace materials for home offices suggests that the marketplace has a rising trend of entrepreneurs as well as home based services.

Social factors: Social fads in the economic situation reveal that consumers are trying to find ease in addition to attractive costs. Market research demonstrates how the consumer for Eric Wood B lacks understanding regarding finding services which can offer a combination of benefit and also low costs.

Technical factors: Innovation plays a vital role in Eric Wood B's service strategy specifically as the company is piloting Innovation facilities which would certainly use technology sales and also support in the form of memory upgrades, peripheral installments. (Recap of INSECT in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Organizational Behavior issues can be seen in Eric Wood B's case as highlighted in this section.

Worries about cultural modification: There is uneasiness concerning a social adjustment that would occur when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with most of the staff members already revealing unhappiness over this prospective action. This predicted adjustment has created tension in the work environment which has been coupled with the past stress of preparing the company for a potential merging with House Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is shortage of employees that can match the demanding atmosphere of a hectic company. Not just does this cause trouble in discovering the appropriate individuals, it places stress and anxiety on new hires as can not stand up to the rate as well as pressure that the company expects them to birth.

Double Reporting Lines: Novices discover this organizational culture troublesome and hard to manage particularly as dotted line relationships are meant to be weaker as a whole and also unbiased setting and performance analysis is still done by the strong line manager. This indicates that newcomers can shed clearness concerning their particular duties and purposes especially as populated line coverage does not maintain them in direct communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles even though it had been hypothesized that the latter would take Krasnow's position came as a blow to her morale. Lewis may have been capable and proper for the job yet the fact that Kransnow's departure would make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Fear & Job Insecurity: Worry and instability can be identified as 2 major concerns that Lewis would certainly be taking care of specifically as the merger has currently be cancelled and also 2 elderly execs of the marketing division would certainly be leaving. The entire responsibility of the department would be falling on Lewis's shoulders who would not simply be in charge of brining regarding a cultural adjustment however would additionally need to confirm herself in her new role.

Incompatible Monitoring Design of Leader: Lewis's monitoring design and its conflict with the advertising department's role can additionally be viewed as an OB difficulty specifically as she has actually been used to taking care of concerns in the operations division where workers are shown to concentrate on procedures and get them right. The advertising and marketing division on the various other hand can be seen as a team of individuals who are utilized to being nurtured by Krasnow who focused a lot more on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental disputes between three departments, advertising, merchandizing and operations specifically over the allocation of the advertising mix can be identified as an additional OB worry. The advertising and marketing division does not share the very same vision as the other 2 divisions relating to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing as well as operations divisions do not agree over the advertising and marketing mix appropriation amongst one an additional either.

Fragmentation in Marketing Division: Fragmentation between the marketing and advertising divisions can be identified as one more OB concern which could need further interest. The truth that the marketing and advertising sections in the marketing department are disconnected is preventing both divisions from getting from each various other's experience as well as competence. Combination of advertising with merchandising and also operations would certainly end up being harder if the advertising and marketing department itself is disintegrated which can be one more prospective OB worry.

Eric Wood B Analysis

Various concepts have actually been made use of to describe the situations to get more quality concerning the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers believe that subordinates are passive and also careless, have little ambition and also stand up to change. The tough version of this theory highlighted threat, tight controls, risks as well as punishments. In time it produces reduced productivity, refined sabotage as well as rivalry (Bargain, 2003). Although the scenario at Eric Wood B is not totally complying with Theory X, it can be seen that brand-new hires are locating this setting instead demanding which may ultimately bring about a better disposition of the monitoring in the direction of Theory X. Based on McGregor's promoted view, which he called Concept Y, the crucial task of the monitoring is to organize organizational problems so that people can achieve their own goals best by directing their initiatives in the direction of business rewards. If people find no fulfillment in their job, the management would have little choice however to depend on theory X and outside control (Bargain, 2003). Even while evaluating Lewis's monitoring style, theory X may have appropriated in the operations division somewhat but the Advertising and marketing division would require reliance on Theory Y in order to get the imagination as well as originality from the groups.

Tuckman's Synergy Concept: As far as Lewis's issue about bringing harmony between the advertising and marketing division is worried, this would at first lead to clash as reviewed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's theory displayed in appendix 3, during the initial stage of group advancement, individuals may not bond, as they are active locating their location in the team. By incorporating the advertising and marketing department's job, there might be the same first detach which can result in the second phase of 'storming' where the groups challenge one another. It is just throughout the third phase or 'norming' when they would come together to share suggestions prior to the group can bring around synergy in the fourth phase 'carrying out'.

Bridges' Change Model: Based On William Bridge's theory (appendix 4), people are quite uneasy with change, which is noticeable by the situation at Eric Wood B The circumstance can be viewed as a typical program of life if is examined based on Bridge's theory where he clarifies that individuals experience three phases of shift when they experience modification. 'Closing, shedding and Letting go', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people are presented with adjustment, they get in phase one and so there may be feelings like despair, unpredictability, disappointment, temper, anxiety, denial as well as disorientation.The circumstance at the advertising department of Eric Wood B is similar so Lewis can obtain comfy with the idea that it is not extraordinary behavior. In the second phase, there might be a need to link the gap in between the new and old society so Lewis may need to encounter this challenge once Krasnow leaves. There may be reduced spirits and also low performance at this phase which must not be taken as an obstacle. It is throughout this phase that Lewis will have to offer guidance to the division to ensure that they can discover an orientation. It can be seen just how Krasnow has already made this shift less complicated by making Lewis get associated with the division a year prior to his real departure. As per Bridges' Version, phase 3 will certainly bring about visibility to discovering, High energy as well as dedication as people will certainly welcome the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue pertaining to instability at the office has actually been caused firstly by the modification in management as well as second of all by the fact that the merging will no longer be launched. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has reviews the importance of 'protection needs as being a lower degree requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel secure and also unharmed' is at the 2nd level of needs. Before an employee can be made to establish psychologically, he needs to have his 'Physical 'as well as 'Safety' requires satisfied. This suggests that unless the workers are made to feel safe and secure concerning their current work status in Eric Wood B they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Eric Wood B Case Study

Ramification of Analysis.

The OB analysis has considered various concepts to understand exactly how to cope with the present circumstance available. The following 3 choices have been suggested to help Lewis manage the business obstacles in the advertising and marketing department. Each of these choices has actually been proposed for reducing the change needed to bring the marketing department according to the needs of the marketplace and for making the social change that would certainly comply with as soon as the current leader leaves.

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

Assessment of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merging days has competence in business-to-business advertising along with firm and retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to manage both advertising and advertising and marketing features.

The advantage of this approach is that it will certainly integrate both functions while decreasing the requirement for working with an additional source for advertising. Lewis would certainly be heading the advertising department and in any type of case her replacement would certainly be required for the present duty that she is executing. The downside of this choice is that external hiring might produce bitterness from inner workers that may be looking at the setting of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and Production: Offered the competitive stress as well as high top quality work called for from the advertising and marketing firm, it is suggested that Lewis ought to enable the manufacturing system to be a different function from the marketing unit. Given that the majority of advertising firms had these 2 functions as separate systems, it makes even more feeling to adhere to the standard.

Assimilation of Advertising And Marketing with Procedures: Given that Lewis is already dealing with the marketing and also procedures departments all at once; it makes sense to integrate the two features given that she has been successfully caring for both ends. The truth that both divisions already have major distinctions over allowance of resources recommends that this integration may have the ability to bring about harmony specifically as Lewis would be heading both ends.However there are different disadvantages of this relocation especially as it would certainly place way too much worry over Lewis's shoulders. The truth that Lewis has to adapt her monitoring design for the marketing division recommends that these 2 divisions would certainly be culturally varied. Lewis might not be able to use one kind of management design to both departments which can result in ineffectiveness in either one of the two features.


An examination of the 3 choices suggests that combination of marketing as well as procedures would certainly not be a feasible move due to the huge distinctions between the two divisions in spite of the truth that currently Lewis is managing both. While splitting up of the production function may have been a desirable action for the advertising department, the fact that it would certainly suggest placing a third function under Lewis's wing suggests this should be avoided.

Activity Plan.
Lewis will certainly take over the function of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

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

Lewis will divide herself from procedures.

An autonomous management design with worker empowerment will be utilized in advertising division.

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

Contingency strategy.

If the combination does not work out as intended, a backup plan would follow which would certainly separate the production feature from the advertising function to decrease the tons 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 function will certainly be divided by putting it under an SVP manufacturing.