How Velcro Got Hooked On Quality Case Study Solution


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How Velcro Got Hooked On Quality Case Study Analysis

Background and Facts

How Velcro Got Hooked On Quality a workplace products store for little as well as moderate sized companies has lately been associated with preparing for a merger with its competitor Residence Deport, which has affected performance degrees in departmentswith the elderly manager involved in lawful difficulties put forth by the government Profession Commission. With the Advertising Head advancing the information of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has been asked to take the function in the future. With obstacles in the form of a possible social change and low employee spirits, the organization requires a complete reengineering effort at the advertising division.

Issue Statement
Porter's 5 Forces Analysis
The potential cultural change at the advertising and marketing division of How Velcro Got Hooked On Quality is raising unpredictability in the workplace leading to various challenges for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting critical choices considering that Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Trade Payment's intervention at the same time. Given the truth that the store has a worldwide visibility with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations may have the ability to affect performance or tactical goals. Federal Trade Payment's antitrust suit against the merger occupied important time of the company's elderly management recommending that 'political' factors can have serious ramifications for a global business.

Economic Factors: Financial factors such as the introduction of small businesses in the worldwide circumstance recommend that How Velcro Got Hooked On Quality is growing in an atmosphere where there is possible development of companies. In addition to this, truth that shop consumers are mostly trying to find workplace supplies for office recommends that the marketplace has a climbing trend of business owners and also home based organisations.

Social factors: Social patterns in the economic climate reveal that consumers are searching for comfort in addition to eye-catching prices. Market research demonstrates how the customer for How Velcro Got Hooked On Quality does not have awareness regarding locating solutions which can supply a combination of ease as well as affordable.

Technological factors: Technology plays an essential role in How Velcro Got Hooked On Quality's company technique especially as the organization is piloting Modern technology facilities which would supply technology sales and assistance in the type of memory upgrades, peripheral installments. (Summary of BUG in appendix 2).

OB Issues as well as Effects.

Numerous underlying Organizational Actions problems can be seen in How Velcro Got Hooked On Quality's case as highlighted in this area.

Worries about social modification: There is apprehension about a cultural change that would happen as soon as Todd Krasnow leaves from his position as the Exec Vice President of Advertising with the majority of the staff members already revealing unhappiness over this potential move. This expected change has actually created anxiety in the work environment which has been combined with the previous anxiety of preparing the firm for a potential merger with Home Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is lack of personnel that can match the stressful environment of a hectic organization. Not only does this result in problem in discovering the ideal people, it places stress on new hires as can not withstand the pace and pressure that the organization anticipates them to birth.

Double Reporting Lines: Newbies discover this business culture difficult as well as hard to deal with specifically as dotted line partnerships are meant to be weak in general and also unbiased setup and also performance examination is still done by the solid line supervisor. This indicates that newcomers might lose clearness concerning their corresponding roles and also purposes particularly as dotted line reporting does not maintain them in direct communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles although it had actually been hypothesized that the latter would take Krasnow's position came as a strike to her spirits. Lewis may have been capable as well as appropriate for the work but the reality that Kransnow's separation would make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Job Instability: Concern as well as insecurity can be determined as 2 significant concerns that Lewis would certainly be managing especially as the merging has actually now be cancelled and also 2 elderly execs of the advertising division would certainly be leaving. The whole responsibility of the division would certainly be falling on Lewis's shoulders that would certainly not simply supervise of brining regarding a cultural change but would likewise have to verify herself in her new role.

Inappropriate Monitoring Design of Leader: Lewis's administration design and also its incompatibility with the advertising and marketing division's role can also be seen as an OB obstacle especially as she has been used to handling concerns in the operations department where employees are taught to focus on processes and also obtain them. The marketing division on the various other hand can be viewed as a team of individuals that are utilized to being supported by Krasnow who focused a lot more on result than processes.

Interdepartmental Disputes: Interdepartmental differences between 3 divisions, marketing, merchandizing and procedures respectively over the allotment of the advertising mix can be identified as one more OB concern. The marketing division does not share the exact same vision as the various other two departments pertaining to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and also operations departments do not agree over the advertising mix appropriation amongst one another either.

Disintegration in Advertising And Marketing Division: Disintegration between the advertising and marketing divisions can be recognized as an additional OB concern which can need additional attention. The reality that the advertising and marketing sections in the advertising and marketing division are detached is stopping both departments from obtaining from each various other's experience and also expertise. Combination of advertising and marketing with merchandising and also procedures would end up being harder if the marketing division itself is degenerated which can be an additional potential OB issue.

How Velcro Got Hooked On Quality Analysis

Numerous theories have actually been made use of to describe the conditions to get additional clearness regarding the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers think that juniors are passive as well as lazy, have little ambition as well as resist modification. The tough version of this theory emphasized browbeating, tight controls, hazards as well as penalties. Over time it creates reduced efficiency, refined sabotage and competition (Deal, 2003). Although the circumstance at How Velcro Got Hooked On Quality is not entirely adhering to Concept X, it can be seen that new hires are finding this atmosphere rather stressful which might ultimately cause a greater inclination of the monitoring in the direction of Theory X. Based on McGregor's supported view, which he called Concept Y, the important job of the management is to prepare business conditions to make sure that people can accomplish their own objectives best by directing their initiatives towards business incentives. If people locate no fulfillment in their job, the monitoring would have little choice yet to rely upon theory X as well as exterior control (Bargain, 2003). Even while analyzing Lewis's administration style, concept X may have appropriated in the operations department somewhat however the Advertising and marketing department would call for dependence on Theory Y in order to get the creative thinking and also originality from the teams.

Tuckman's Synergy Concept: As for Lewis's problem concerning bringing consistency between the marketing and advertising department is worried, this would initially bring about conflict as discussed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, throughout the preliminary phase of group growth, people may not bond, as they are active locating their area in the group. By integrating the marketing and advertising division's job, there might coincide first detach which might result in the 2nd phase of 'storming' where the teams test each other. Nonetheless, it is just throughout the 3rd stage or 'norming' when they would integrate to share ideas before the team can bring about synergy in the fourth stage 'doing'.

Bridges' Change Model: As per William Bridge's concept (appendix 4), people are rather awkward with adjustment, which is noticeable by the circumstance at How Velcro Got Hooked On Quality The scenario can be seen as a regular training course of life if is examined based on Bridge's theory where he discusses that people go through three stages of change when they experience adjustment. 'End, shedding and Releasing', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people exist with modification, they get in stage one and so there might be emotions like sadness, uncertainty, stress, anger, fear, rejection and disorientation.The circumstance at the advertising department of How Velcro Got Hooked On Quality is similar so Lewis can get comfortable with the concept that it is not remarkable habits. In the second stage, there may be a demand to connect the space in between the new as well as old society so Lewis might have to face this challenge once Krasnow leaves. There might be reduced spirits and also reduced productivity at this phase which ought to not be taken as a setback. It is during this phase that Lewis will certainly need to provide advice to the department so that they can locate an orientation. It can be seen exactly how Krasnow has actually currently made this change less complicated by making Lewis obtain involved in the department a year before his actual separation. As per Bridges' Model, phase three will certainly bring about visibility to discovering, High energy as well as dedication as people will accept the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has reviews the importance of 'safety needs as being a lower degree requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel protected and out of threat' is at the second degree of demands. Prior to a staff member can be made to establish psychologically, he requires to have his 'Physiological 'as well as 'Safety and security' needs satisfied.

SWOT Analysis for How Velcro Got Hooked On Quality Case Study

Effects of Analysis.

The OB analysis has actually considered numerous theories to understand just how to handle the existing situation at hand. The following three choices have been proposed to assist Lewis manage the business obstacles in the advertising division. Each of these alternatives has actually been suggested for alleviating the shift required to bring the marketing division in accordance with the requirements of the market as well as for making the social adjustment that would certainly follow when the present leader leaves.

Combination of marketing and advertising functions. Separating Adverting and Manufacturing features. Assimilation of Marketing with Procedures.

Assessment of Alternatives.

Assimilation of Marketing & Advertising And Marketing Functions: The internal advertising and marketing agency of How Velcro Got Hooked On Quality is already stamina for the company in regards to saving up on expenses associated with marketing and promotion. Because no new recruitment has actually been done after Bridget Cole's departure with the reporting line being directly appointed to Krasnow for the advertising and marketing function, this is a desirable opportunity for incorporating the marketing and advertising features. Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merging days has know-how in business-to-business advertising together with company and retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to handle both advertising and marketing features.

The benefit of this approach is that it will incorporate the two functions while minimizing the need for employing an additional resource for marketing. Along with this, Lewis would be heading the advertising division and in any case her substitute would be required for the present duty that she is performing. The negative aspect of this alternative is that exterior hiring may bring about resentment from inner employees that may be eying the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and also Production: Offered the affordable stress and high quality job required from the marketing company, it is suggested that Lewis ought to permit the manufacturing system to be a separate feature from the advertising and marketing device. Since a lot of advertising agencies had these two features as separate systems, it makes even more sense to follow the standard.

Assimilation of Advertising And Marketing with Workflows: Considering that Lewis is currently taking treatment of the advertising and marketing as well as operations divisions concurrently; it makes sense to incorporate the 2 functions since she has actually been successfully taking treatment of both ends. The fact that Lewis has to adapt her management style for the advertising and marketing division suggests that these 2 departments would certainly be culturally varied.


An evaluation of the three alternatives shows that integration of advertising and marketing and procedures would not be a possible relocation as a result of the large distinctions between the two departments although that presently Lewis is handling both. While separation of the production feature may have been a beneficial action for the marketing department, the truth that it would certainly mean placing a 3rd function under Lewis's wing means this should be stayed clear of also. The assimilation of the marketing division is the very best option in terms of getting the ideal results from the department. An activity prepare for this alternative is gone over below.

Action Plan.
Lewis will take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

Manufacturing feature will certainly continue to be part of advertising and marketing under advertising feature.

Lewis will certainly divide herself from operations.

A democratic management design with employee empowerment will certainly be made use of in marketing division.

Open up door plan as well as emphasis on cross departmental interaction will be aimed at removing discord.

Backup strategy.

If the integration does not exercise as intended, a backup strategy would certainly comply with which would separate the manufacturing function from the advertising function to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising and marketing division without an SVP. Because case the manufacturing function will definitely be separated by positioning it under an SVP manufacturing.