Paint Pen Inc Case Study Analysis


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Paint Pen Inc Case Study Analysis

Background and Facts

Paint Pen Inc an office supplies merchant for tiny as well as medium sized businesses has actually recently been associated with preparing for a merging with its competitor Home Deport, which has actually impacted performance levels in departmentswith the senior manager involved in lawful issues presented by the government Trade Compensation. With the Advertising Head advancing the information of his separation from the company in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the future. With obstacles in the form of a potential social modification as well as low worker morale, the company is in need of a full reengineering effort at the advertising division.

Problem Statement

The potential social change at the advertising division of Paint Pen Inc is increasing unpredictability in the workplace bring about various difficulties for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting critical choices given that Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Trade Compensation's treatment at the same time. Offered the fact that the store has a global presence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations may have the ability to impact efficiency or strategic objectives. Federal Profession Commission's antitrust fit against the merger occupied important time of the company's senior monitoring suggesting that 'political' factors can have major ramifications for a worldwide organisation.

Economic Factors: Economic factors such as the introduction of local business in the global situation recommend that Paint Pen Inc is prospering in an atmosphere where there is prospective development of businesses. Truth that store consumers are mainly looking for workplace products for house workplaces recommends that the market has an increasing trend of entrepreneurs as well as house based businesses.

Social factors: Social patterns in the economic situation reveal that consumers are looking for benefit as well as attractive prices. Market research demonstrates how the client for Paint Pen Inc does not have understanding concerning locating services which can offer a mix of comfort as well as low costs.

Technical factors: Innovation plays a vital role in Paint Pen Inc's company technique especially as the organization is piloting Technology facilities which would certainly provide innovation sales and assistance in the form of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues and also Manifestations.

A number of underlying Business Actions concerns can be seen in Paint Pen Inc's case as highlighted in this section.

Apprehensions regarding social adjustment: There is apprehension about a social modification that would happen as soon as Todd Krasnow leaves from his setting as the Exec Vice President of Advertising And Marketing with a lot of the personnel already showing unhappiness over this potential step. This expected adjustment has actually created tension in the work environment which has actually been combined with the previous stress and anxiety of preparing the firm for a possible merger with House Deport.

Stressful Work Setting for Newcomers: There is scarcity of employees that can match the difficult atmosphere of a busy company. Not just does this bring about trouble in finding the appropriate individuals, it places stress on brand-new hires as can not endure the rate as well as stress that the organization anticipates them to bear.

Double Reporting Lines: Novices find this organizational society cumbersome and also challenging to deal with particularly as populated line relationships are suggested to be weaker as a whole and unbiased setting as well as performance evaluation is still done by the solid line supervisor. This indicates that newcomers might lose clarity about their respective functions and goals especially as populated line reporting does not maintain them in straight interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles even though it had been hypothesized that the latter would certainly take Krasnow's position came as an impact to her morale. Lewis may have been capable and also proper for the work yet the fact that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.

Worry & Work Insecurity: Concern as well as insecurity can be determined as 2 major problems that Lewis would be handling particularly as the merger has now be terminated and 2 senior executives of the marketing department would certainly be leaving. The entire obligation of the department would be falling on Lewis's shoulders that would not just be in charge of brining about a cultural change but would likewise have to prove herself in her brand-new function.

Inappropriate Monitoring Style of Leader: Lewis's management style and also its incompatibility with the advertising and marketing department's role can additionally be viewed as an OB challenge specifically as she has actually been utilized to dealing with concerns in the operations department where employees are taught to concentrate on procedures as well as get them right. The marketing division on the various other hand can be viewed as a team of individuals that are utilized to being nurtured by Krasnow who concentrated more on output than procedures.

Interdepartmental Arguments: Interdepartmental arguments in between three departments, advertising and marketing, merchandizing and also procedures specifically over the allotment of the marketing mix can be identified as an additional OB worry. Although the marketing division does not share the exact same vision as the other two divisions regarding the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing as well as procedures divisions do not concur over the advertising mix appropriation among one another either.

Fragmentation in Marketing Department: Disintegration in between the marketing and advertising divisions can be recognized as one more OB problem which can require more attention. The fact that the marketing and advertising areas in the advertising department are detached is stopping both divisions from obtaining from each various other's experience and knowledge. Combination of advertising with merchandising and also procedures would come to be harder if the advertising and marketing department itself is degenerated which can be an additional possible OB issue.

Paint Pen Inc Analysis

Numerous concepts have actually been used to discuss the scenarios to get further quality concerning the scenario available.

McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors believe that juniors are passive and also lazy, have little ambition and resist change. The hard variation of this theory highlighted threat, limited controls, dangers as well as punishments. With time it creates reduced performance, subtle sabotage and rivalry (Deal, 2003). The situation at Paint Pen Inc is not entirely adhering to Theory X, it can be seen that new hires are discovering this atmosphere instead difficult which might ultimately lead to a higher inclination of the administration towards Theory X. Based on McGregor's promoted view, which he called Theory Y, the important job of the monitoring is to organize organizational conditions to make sure that individuals can accomplish their very own objectives best by routing their efforts in the direction of business rewards. If people discover no complete satisfaction in their work, the administration would certainly have little selection however to count on theory X as well as exterior control (Deal, 2003). Also while examining Lewis's management style, theory X may have been suitable in the procedures division somewhat yet the Advertising and marketing division would call for dependence on Theory Y to get the creativity as well as creativity from the groups.

Tuckman's Teamwork Theory: As for Lewis's concern concerning bringing harmony between the marketing and advertising division is worried, this would initially lead to contrast as discussed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, during the first stage of team growth, individuals may not bond, as they are busy locating their area in the group. By integrating the advertising and marketing division's work, there might coincide first detach which might result in the second stage of 'storming' where the groups challenge one another. It is only throughout the third stage or 'norming' when they would certainly come with each other to share ideas prior to the team can bring about harmony in the 4th stage 'executing'.

Bridges' Transition Version: As per William Bridge's theory (appendix 4), people are quite uneasy with change, which is noticeable by the scenario at Paint Pen Inc The circumstance can be viewed as a typical course of life if is studied according to Bridge's theory where he discusses that people experience three stages of transition when they experience adjustment. 'End, shedding and also Letting go', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When people are presented with change, they get in stage one and so there might be emotions like sadness, uncertainty, disappointment, rage, worry, rejection as well as disorientation.The scenario at the marketing division of Paint Pen Inc is similar so Lewis can get comfortable with the concept that it is not extraordinary habits. In the 2nd stage, there might be a need to link the void in between the brand-new as well as old society so Lewis may have to encounter this ordeal when Krasnow leaves. There might be reduced morale and reduced efficiency at this stage which ought to not be taken as a problem. It is during this stage that Lewis will certainly need to provide assistance to the department so that they can find a sense of direction. It can be seen how Krasnow has actually currently made this transition easier by making Lewis obtain associated with the department a year before his real separation. According to Bridges' Version, phase 3 will certainly produce openness to discovering, High power and dedication as individuals will certainly embrace the adjustment (Bridges, 2004).

Maslow's Need pecking order: The OB issue related to insecurity at the office has actually been triggered firstly by the change in administration as well as second of all by the reality that the merger will no longer be started. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has discusses the significance of 'security needs as being a reduced degree demand of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the requirement to really feel safe and secure and also safe' goes to the second degree of requirements. Before an employee can be made to establish psychologically, he needs to have his 'Physiological 'as well as 'Safety' requires satisfied. This suggests that unless the employees are made to really feel safe and secure about their existing work standing in Paint Pen Inc they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Paint Pen Inc Case Study

Implication of Analysis.

The OB analysis has actually looked at numerous theories to recognize exactly how to manage the present situation handy. The complying with 3 alternatives have actually been recommended to aid Lewis deal with the organizational challenges in the advertising division. Each of these alternatives has actually been recommended for alleviating the shift required to bring the advertising department in accordance with the requirements of the market and also for making the social adjustment that would adhere to when the present leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting as well as Manufacturing features. Combination of Marketing with Workflow.

Analysis of Alternatives.

Integration of Marketing & Marketing Functions: The in-house marketing firm of Paint Pen Inc is currently stamina for the organization in terms of conserving up on expenses connected to marketing as well as promotion. Given that no new employment has actually been done after Bridget Cole's departure with the coverage line being straight designated to Krasnow for the marketing feature, this is a positive chance for incorporating the marketing and advertising features. Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merger days has know-how in business-to-business marketing along with company and retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to deal with both marketing and advertising features.

The advantage of this technique is that it will certainly integrate the two functions while lowering the need for working with an added resource for advertising. Along with this, Lewis would certainly be heading the advertising department and also regardless her replacement would be needed for the existing duty that she is executing. The drawback of this choice is that outside hiring may bring about resentment from inner personnel that may be eying the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Production: Offered the competitive pressures and also premium quality work required from the ad agency, it is suggested that Lewis ought to enable the manufacturing device to be a separate feature from the marketing unit. Since the majority of advertising agencies had these 2 functions as separate systems, it makes even more feeling to comply with the norm. Both features might be able to concentrate on their core turns on much more effectively. The downside of this approach would be that additional prices would have to be birthed for establishing up separate manufacturing functions. Along with this, a manufacturing head might need to be employed which might enhance overheads for the organization.

Combination of Advertising And Marketing with Procedures: Because Lewis is already looking after the marketing as well as procedures departments concurrently; it makes good sense to incorporate the two features because she has actually been effectively taking care of both ends. The fact that both departments already have significant distinctions over allowance of sources suggests that this combination may be able to cause harmony particularly as Lewis would be heading both ends.However there are various disadvantages of this action specifically as it would certainly place way too much worry over Lewis's shoulders. The reality that Lewis needs to adjust her administration design for the advertising division suggests that these 2 departments would certainly be culturally varied. Lewis might not be able to apply one type of leadership design to both divisions which can result in inefficiency in either one of the two features.


An examination of the three options shows that assimilation of advertising and marketing as well as procedures would not be a practical relocation due to the huge distinctions in between both departments despite the fact that presently Lewis is taking care of both. While splitting up of the manufacturing function might have been a desirable relocation for the advertising and marketing division, the fact that it would imply placing a third function under Lewis's wing suggests this must be stayed clear of as well. The combination of the marketing department is the very best option in terms of getting the optimal results from the division. An activity plan for this alternative is reviewed listed below.

Action Plan.

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

Advertising and Marketing features would be merged.

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

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

Lewis will certainly divide herself from operations.

A democratic management style with worker empowerment will be used in advertising and marketing division.

Open up door plan and also focus on cross department interaction will be focused on eliminating dissonance.

Contingency strategy.

If the assimilation does not work out as intended, a backup strategy would comply with which would certainly separate the production function from the advertising and marketing function to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the marketing division without an SVP. Because case the manufacturing function will most definitely be separated by placing it under an SVP manufacturing.