Paint Pen Inc Case Study Solution


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Paint Pen Inc Case Study Analysis

Background and Facts

Paint Pen Inc an office supplies merchant for small and also average sized organisations has actually recently been involved in planning for a merger with its competitor Home Deport, which has actually affected effectiveness degrees in departmentswith the elderly supervisor involved in legal difficulties presented by the federal Trade Commission. With the Advertising Head putting forward the information of his separation from the firm 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 type of a potential social change as well as low worker morale, the company is in need of a total reengineering initiative at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the advertising division of Paint Pen Inc is enhancing uncertainty in the working environment leading to various obstacles for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting tactical decisions since Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Trade Payment's intervention at the same time. Offered the truth that the store has a global visibility with branches in UK, U.S.A., Canada and Germany, political factors in each of these nations may have the ability to impact efficiency or tactical goals. Federal Trade Commission's antitrust suit against the merger used up useful time of the organization's elderly monitoring suggesting that 'political' factors can have major implications for an international organisation.

Economic Factors: Economic factors such as the emergence of local business in the global circumstance recommend that Paint Pen Inc is thriving in an environment where there is potential growth of companies. Fact that shop clients are mainly looking for office materials for house workplaces suggests that the market has a rising pattern of business owners and also home based businesses.

Social factors: Social trends in the economy show that clients are looking for ease in addition to eye-catching rates. Market research demonstrates how the client for Paint Pen Inc does not have understanding regarding finding solutions which can offer a mix of benefit as well as low costs.

Technological factors: Innovation plays a vital duty in Paint Pen Inc's company approach especially as the organization is piloting Innovation facilities which would use modern technology sales as well as assistance in the form of memory upgrades, outer setups. (Summary of BUG in appendix 2).

OB Issues and Symptoms.

Several underlying Business Habits concerns can be seen in Paint Pen Inc's case as highlighted in this area.

Apprehensions regarding social adjustment: There is apprehension about a cultural modification that would certainly happen when Todd Krasnow leaves from his setting as the Exec Vice President of Marketing with most of the team member currently revealing discontent over this potential step. This predicted change has actually produced tension in the workplace which has actually been combined with the previous anxiety of preparing the firm for a potential merging with Home Deport.
Pest Analysis
Demanding Job Atmosphere for Newcomers: There is lack of employees that can match the demanding atmosphere of a fast-paced company. Not just does this lead to problem in discovering the ideal individuals, it places anxiety on brand-new hires as can not hold up against the pace and also stress that the company expects them to bear.

Dual Reporting Lines: Newbies find this business culture troublesome and also hard to manage particularly as dotted line partnerships are implied to be weak generally and unbiased setup as well as efficiency evaluation is still done by the solid line manager. This suggests that newbies might lose quality about their particular duties and purposes particularly as populated line coverage does not maintain them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles despite the fact that it had been hypothesized that the last would certainly take Krasnow's setting came as a blow to her morale. Lewis might have been capable and also proper for the work however the fact that Kransnow's separation would make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Anxiety & Task Instability: Worry as well as insecurity can be identified as two significant concerns that Lewis would be taking care of specifically as the merging has actually currently be cancelled and two senior execs of the advertising and marketing division would certainly be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders who would not just be in charge of brining concerning a social change yet would also have to prove herself in her new duty.

Inappropriate Management Style of Leader: Lewis's monitoring style and its incompatibility with the marketing division's function can additionally be seen as an OB difficulty particularly as she has been used to handling concerns in the operations division where employees are instructed to focus on procedures and obtain them. The marketing division on the various other hand can be seen as a team of individuals who are made use of to being nurtured by Krasnow who focused a lot more on output than processes.

Interdepartmental Differences: Interdepartmental arguments in between 3 departments, advertising and marketing, merchandizing and procedures specifically over the appropriation of the advertising and marketing mix can be identified as one more OB issue. Although the advertising division does not share the same vision as the other 2 divisions pertaining to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and also operations divisions do not concur over the advertising mix allocation amongst each other either.

Fragmentation in Marketing Department: Fragmentation in between the marketing and advertising divisions can be identified as one more OB problem which might require additional interest. The truth that the marketing and advertising sections in the advertising and marketing division are disconnected is preventing both divisions from obtaining from each other's experience and also knowledge. Combination of marketing with merchandising and operations would end up being harder if the marketing division itself is disintegrated which can be one more possible OB concern.

Paint Pen Inc Analysis

Numerous theories have been made use of to discuss the circumstances to get further quality concerning the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of managers think that juniors are easy and careless, have little aspiration and resist adjustment. The scenario at Paint Pen Inc is not totally complying with Theory X, it can be seen that new hires are finding this atmosphere instead difficult which might at some point lead to a greater inclination of the monitoring in the direction of Theory X. Even while evaluating Lewis's administration design, theory X may have been ideal in the procedures department to some level yet the Marketing department would call for reliance on Theory Y in order to get the imagination as well as creativity from the groups.

Tuckman's Synergy Theory: As for Lewis's issue concerning bringing consistency between the advertising and marketing department is concerned, this would originally cause conflict as gone over by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's theory displayed in appendix 3, throughout the preliminary stage of team growth, individuals might not bond, as they are active discovering their place in the group. By integrating the marketing and advertising division's job, there may coincide preliminary disconnect which could result in the 2nd stage of 'storming' where the groups test 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 about synergy in the fourth stage 'executing'.

When individuals are offered with modification, they go into stage one and so there may be emotions like sadness, uncertainty, aggravation, temper, worry, rejection as well as disorientation.The situation at the advertising department of Paint Pen Inc is similar so Lewis can obtain comfortable with the concept that it is not extraordinary behavior. It is during this phase that Lewis will certainly have to give guidance to the division so that they can find a feeling of direction. It can be seen how Krasnow has already made this change less complicated by making Lewis obtain involved in the division a year prior to his actual departure.
Vrio Analysis
Maslow's Demand hierarchy: The OB problem pertaining to insecurity at the office has actually been activated to start with by the adjustment in administration as well as second of all by the fact that the merger will certainly no longer be launched. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has discusses the value of 'safety requires as being a lower degree demand of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to really feel secure and untouched' goes to the second level of needs. Before a staff member can be made to develop psychologically, he requires to have his 'Physiological 'as well as 'Safety and security' needs fulfilled. This shows that unless the employees are made to really feel protected concerning their existing employment condition in Paint Pen Inc they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Paint Pen Inc Case Study

Ramification of Analysis.

The OB analysis has actually considered numerous concepts to recognize how to handle the existing circumstance available. The complying with 3 options have actually been proposed to help Lewis deal with the business challenges in the advertising and marketing department. Each of these alternatives has actually been recommended for easing the change needed to bring the advertising and marketing division in accordance with the demands of the market and for making the social modification that would certainly follow once the current leader leaves.

Combination of marketing and advertising features. Separating Adverting as well as Production features. Assimilation of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merger days has knowledge in business-to-business marketing along with company and also retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both advertising and also advertising functions.

The advantage of this method is that it will certainly integrate the two functions while lowering the requirement for employing an extra source for marketing. In addition to this, Lewis would certainly be heading the marketing division as well as in any case her substitute would certainly be needed for the present role that she is carrying out. The downside of this choice is that exterior hiring might cause resentment from interior employees who may be eying the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and Production: Offered the affordable pressures as well as high top quality job needed from the advertising and marketing agency, it is recommended that Lewis ought to allow the production system to be a separate feature from the advertising and marketing system. Given that the majority of advertising agencies had these two features as separate systems, it makes even more feeling to comply with the standard.

Assimilation of Advertising with Operations: Given that Lewis is already looking after the advertising and marketing and also procedures divisions at the same time; it makes good sense to incorporate the two features since she has been successfully looking after both ends. The truth that both divisions already have major distinctions over allotment of sources suggests that this integration may be able to bring about consistency especially as Lewis would be heading both ends.However there are various downsides of this step particularly as it would certainly place excessive burden over Lewis's shoulders. The fact that Lewis needs to adjust her administration style for the advertising department recommends that these 2 departments would certainly be culturally varied. Lewis may not be able to apply one type of management design to both divisions which can result in ineffectiveness in either one of the two features.


An examination of the 3 choices suggests that assimilation of advertising and marketing as well as procedures would certainly not be a feasible step because of the vast distinctions in between the two divisions despite the fact that currently Lewis is dealing with both. While splitting up of the production function may have been a desirable step for the advertising and marketing division, the fact that it would imply positioning a 3rd feature under Lewis's wing indicates this must be stayed clear of. The assimilation of the advertising and marketing division is the most effective alternative in regards to getting the ideal results from the department. An action prepare for this option is discussed listed below.

Action Strategy.
Lewis will take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Production feature will remain part of advertising under advertising feature.

Lewis will certainly divide herself from operations.

A democratic leadership style with staff member empowerment will certainly be made use of in marketing department.

Open up door plan and also emphasis on cross department interaction will be targeted at removing disharmony.

Contingency plan.

If the combination does not work out as intended, a backup strategy would certainly adhere to which would divide the manufacturing feature from the advertising feature to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the marketing division without an SVP. Because case the manufacturing function will definitely be divided by positioning it under an SVP production.