Paint Pen Inc Case Study Analysis


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Paint Pen Inc Case Study Solution

Background and Facts

Paint Pen Inc an office supplies store for little and moderate sized services has actually lately been involved in preparing for a merger with its rival Residence Deport, which has impacted effectiveness levels in departmentswith the senior supervisor associated with legal issues put forth by the federal Trade Payment. With the Advertising and marketing Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the future. With difficulties in the kind of a prospective cultural modification and low employee morale, the organization needs a total reengineering effort at the advertising and marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The prospective social change at the advertising department of Paint Pen Inc is enhancing unpredictability in the workplace resulting in numerous difficulties for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting tactical decisions since Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Profession Payment's treatment while doing so. Given the truth that the store has a global existence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these nations might be able to influence performance or calculated objectives. Federal Profession Commission's antitrust fit versus the merger occupied important time of the company's elderly management suggesting that 'political' factors can have serious effects for an international company.

Economic Factors: Economic factors such as the development of small companies in the international situation suggest that Paint Pen Inc is thriving in an environment where there is potential growth of companies. Truth that shop consumers are mostly looking for office products for residence offices suggests that the market has a climbing fad of entrepreneurs and also house based companies.

Social factors: Social fads in the economic climate show that clients are trying to find benefit as well as attractive prices. Market research demonstrates how the customer for Paint Pen Inc lacks recognition concerning finding remedies which can use a mix of ease and also low costs.

Technical factors: Modern technology plays an essential duty in Paint Pen Inc's company strategy especially as the organization is piloting Innovation facilities which would certainly use innovation sales and also assistance in the form of memory upgrades, outer setups. (Summary of BUG in appendix 2).

OB Issues and also Symptoms.

A number of underlying Organizational Actions issues can be seen in Paint Pen Inc's case as highlighted in this area.

Concerns concerning social modification: There is worry about a cultural modification that would take place when Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising with most of the personnel already revealing discontent over this possible move. This expected modification has actually developed stress in the work environment which has been paired with the past stress of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Difficult Work Setting for Newcomers: There is shortage of workers that can match the difficult atmosphere of a fast-paced company. Not just does this cause trouble in discovering the best individuals, it puts tension on new hires as can not hold up against the speed and also stress that the company expects them to bear.

Dual Coverage Lines: Novices discover this business society difficult and also hard to handle particularly as dotted line relationships are implied to be weak in general and unbiased setup and efficiency analysis is still done by the solid line supervisor. This implies that newbies can lose clarity about their particular functions as well as objectives particularly as dotted line reporting does not keep them in direct communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles despite the fact that it had been speculated that the latter would take Krasnow's setting came as a blow to her morale. Lewis may have been capable as well as appropriate for the job however the fact that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Fear & Work Instability: Anxiety and also insecurity can be identified as two significant issues that Lewis would certainly be managing particularly as the merger has currently be cancelled and also two senior executives of the advertising division would be leaving. The whole duty of the department would be falling on Lewis's shoulders who would certainly not just be in charge of brining regarding a cultural adjustment yet would certainly likewise need to show herself in her new duty.

Incompatible Monitoring Style of Leader: Lewis's administration style and its conflict with the marketing division's function can additionally be seen as an OB obstacle particularly as she has been utilized to taking care of concerns in the procedures department where workers are educated to concentrate on processes and also obtain them. The advertising and marketing department on the various other hand can be viewed as a team of individuals that are made use of to being supported by Krasnow that concentrated a lot more on result than procedures.

Interdepartmental Arguments: Interdepartmental disagreements between three divisions, marketing, merchandizing as well as procedures specifically over the allowance of the advertising mix can be determined as one more OB problem. Although the advertising and marketing division does not share the very same vision as the other two departments concerning the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing as well as procedures divisions do not agree over the advertising mix appropriation among one another either.

Fragmentation in Marketing Division: Fragmentation between the advertising and marketing divisions can be recognized as another OB issue which can need further focus. The truth that the advertising and marketing sections in the advertising and marketing department are separated is protecting against both departments from obtaining from each other's experience and also competence. Integration of advertising with merchandising as well as procedures would certainly become harder if the advertising and marketing division itself is broken down which can be an additional prospective OB problem.

Paint Pen Inc Analysis

Various theories have been made use of to explain the conditions to get additional clarity about the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many supervisors think that staffs are passive and also lazy, have little ambition and also stand up to modification. The tough version of this concept emphasized threat, limited controls, dangers and punishments. With time it generates reduced performance, refined sabotage and competition (Deal, 2003). Although the scenario at Paint Pen Inc is not completely complying with Theory X, it can be seen that new hires are discovering this atmosphere instead difficult which might eventually cause a better disposition of the monitoring towards Theory X. According to McGregor's supported view, which he called Concept Y, the necessary job of the monitoring is to organize organizational problems to make sure that individuals can achieve their own objectives best by routing their initiatives in the direction of business rewards. If individuals locate no fulfillment in their work, the monitoring would have little choice but to count on concept X as well as outside control (Bargain, 2003). Even while assessing Lewis's management design, theory X may have appropriated in the operations division to some extent yet the Marketing division would call for dependence on Theory Y to get the creativity and creativity from the groups.

Tuckman's Teamwork Theory: As much as Lewis's worry regarding bringing harmony in between the advertising and also advertising and marketing division is concerned, this would initially lead to conflict as reviewed by Bruce Tuckman in his 'Team effort Theory'. By integrating the marketing and marketing department's work, there might be the same first disconnect which might lead to the second stage of 'storming' where the groups challenge one an additional.

When people are provided with change, they enter stage one and so there might be emotions like sadness, uncertainty, irritation, temper, anxiety, rejection as well as disorientation.The scenario at the advertising and marketing division of Paint Pen Inc is comparable so Lewis can get comfortable with the concept that it is not amazing habits. It is during this phase that Lewis will have to offer advice to the division so that they can locate a feeling of instructions. It can be seen exactly how Krasnow has already made this shift easier by making Lewis get entailed in the division a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has talks about the importance of 'security requires as being a lower degree requirement of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel safe and secure as well as out of risk' is at the second degree of requirements. Prior to a staff member can be made to create emotionally, he requires to have his 'Physiological 'and also 'Safety' requires fulfilled.

SWOT Analysis for Paint Pen Inc Case Study

Implication of Analysis.

The OB analysis has looked at various concepts to recognize just how to cope with the existing situation at hand. The following three options have actually been suggested to help Lewis deal with the business obstacles in the marketing division. Each of these options has been suggested for easing the shift required to bring the advertising and marketing division in line with the requirements of the marketplace and for making the cultural change that would certainly adhere to once the existing leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting and also Manufacturing features. Combination of Advertising And Marketing with Workflow.

Analysis of Alternatives.

Assimilation of Marketing & Advertising Functions: The in-house marketing agency of Paint Pen Inc is already toughness for the organization in terms of saving up on expenses connected to advertising and also promo. Because no brand-new recruitment has been done after Bridget Cole's separation with the reporting line being straight designated to Krasnow for the marketing function, this is a beneficial opportunity for incorporating the marketing and advertising functions. Judith Shapiro who has earlier been spoken with by Lewis during the earlier merging days has knowledge in business-to-business advertising and marketing along with firm and retail advertising experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to manage both marketing and advertising features.

The benefit of this method is that it will integrate the two features while decreasing the requirement for employing an added resource for advertising. In addition to this, Lewis would be heading the advertising division and all the same her replacement would certainly be required for the present duty that she is performing. The negative aspect of this choice is that external hiring may cause resentment from internal employees who may be eying the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Production: Provided the affordable stress as well as high top quality job needed from the marketing company, it is suggested that Lewis needs to allow the manufacturing system to be a different feature from the marketing system. Considering that a lot of advertising agencies had these two features as different units, it makes even more feeling to follow the standard.

Combination of Advertising with Operations: Since Lewis is already taking treatment of the marketing and operations divisions concurrently; it makes sense to integrate the two functions given that she has been effectively taking treatment of both ends. The truth that Lewis has to adapt her monitoring design for the marketing department recommends that these two divisions would be culturally diverse.


An examination of the 3 choices suggests that assimilation of advertising and marketing and also procedures would not be a viable step due to the large differences between the two departments regardless of the truth that presently Lewis is handling both. While splitting up of the manufacturing feature may have been a positive action for the marketing division, the reality that it would certainly indicate putting a third function under Lewis's wing indicates this should be stayed clear of.

Action Plan.
Lewis will 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 place as SVP of advertising and marketing.

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

Lewis will divide herself from operations.

An autonomous leadership design with employee empowerment will certainly be used in advertising and marketing division.

Open up door policy as well as focus on cross department communication will certainly be targeted at getting rid of dissonance.

Backup plan.

If the assimilation does not work out as intended, a contingency plan would comply with which would certainly divide the manufacturing function from the advertising and marketing feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising division without an SVP. In that case the production function will definitely be divided by positioning it under an SVP manufacturing.