Relationships Among Siblings And Cousins In A Family Firm Case Study Solution


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Relationships Among Siblings And Cousins In A Family Firm Case Study Analysis

Background and Facts

Relationships Among Siblings And Cousins In A Family Firm an office products seller for little as well as medium sized services has just recently been involved in preparing for a merger with its competitor House Deport, which has actually influenced effectiveness degrees in departmentswith the elderly supervisor involved in lawful problems presented by the federal Profession Commission. With the Advertising Head advancing the information of his separation from the business in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the future. With difficulties in the type of a possible social adjustment and low worker morale, the company is in need of a complete reengineering effort at the advertising and marketing division.

Trouble Declaration

The possible social adjustment at the marketing division of Relationships Among Siblings And Cousins In A Family Firm is boosting uncertainty in the working environment resulting in various obstacles for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting calculated choices given that Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Profession Payment's treatment at the same time. Offered the fact that the store has a global presence with branches in UK, USA, Canada and also Germany, political consider each of these countries may have the ability to impact performance or tactical objectives. Federal Trade Compensation's antitrust suit versus the merger used up useful time of the company's elderly monitoring suggesting that 'political' factors can have major effects for an international business.

Economic Factors: Financial factors such as the appearance of small companies in the worldwide circumstance suggest that Relationships Among Siblings And Cousins In A Family Firm is flourishing in an atmosphere where there is possible growth of businesses. In addition to this, reality that store customers are mostly looking for workplace products for office suggests that the marketplace has a climbing pattern of entrepreneurs as well as home services.

Social factors: Social fads in the economy reveal that consumers are seeking convenience as well as eye-catching costs. Market research demonstrates how the client for Relationships Among Siblings And Cousins In A Family Firm does not have awareness concerning finding options which can offer a mix of ease as well as low costs.

Technical factors: Innovation plays a vital function in Relationships Among Siblings And Cousins In A Family Firm's company method specifically as the organization is piloting Modern technology facilities which would offer innovation sales and also support in the type of memory upgrades, peripheral setups. (Summary of PEST in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Organizational Actions concerns can be seen in Relationships Among Siblings And Cousins In A Family Firm's case as highlighted in this area.

Concerns about cultural adjustment: There is apprehension concerning a cultural adjustment that would certainly happen when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with most of the staff members already showing unhappiness over this prospective action. This expected modification has produced stress in the work environment which has actually been coupled with the past anxiety of preparing the firm for a possible merger with Residence Deport.

Difficult Work Setting for Newcomers: There is shortage of employees that can match the difficult atmosphere of a busy company. Not just does this bring about problem in finding the best individuals, it places tension on new hires as can not hold up against the pace and stress that the organization expects them to bear.

Double Reporting Lines: Newcomers locate this business society troublesome and difficult to deal with especially as dotted line relationships are meant to be weaker generally as well as objective setting as well as efficiency assessment is still done by the solid line supervisor. This suggests that beginners could lose quality regarding their particular roles and also goals especially as dotted line coverage does not maintain them in direct communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles even though it had actually been hypothesized that the last would take Krasnow's setting came as a strike to her spirits. Lewis may have been qualified and also appropriate for the job yet the truth that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Work Instability: Worry and also insecurity can be recognized as 2 major issues that Lewis would certainly be managing specifically as the merger has actually currently be terminated as well as 2 senior execs of the advertising division would certainly be leaving. The entire obligation of the division would be falling on Lewis's shoulders who would not just be in charge of brining about a cultural adjustment yet would certainly also need to prove herself in her new duty.

Inappropriate Management Style of Leader: Lewis's monitoring style as well as its conflict with the marketing division's duty can also be seen as an OB obstacle especially as she has been made use of to taking care of issues in the procedures division where personnel are shown to focus on processes as well as get them. The marketing division on the various other hand can be viewed as a team of people who are made use of to being nurtured by Krasnow who focused much more on result than processes.

Interdepartmental Arguments: Interdepartmental arguments in between 3 divisions, advertising, merchandizing as well as procedures respectively over the allowance of the advertising and marketing mix can be recognized as one more OB issue. Although the advertising division does not share the same vision as the various other 2 divisions concerning the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and also procedures divisions do not concur over the advertising and marketing mix appropriation among one another either.

Fragmentation in Marketing Division: Fragmentation between the advertising and marketing divisions can be recognized as one more OB problem which might require more attention. The reality that the marketing and advertising sections in the advertising division are disconnected is protecting against both departments from getting from each various other's experience and also expertise. Integration of marketing with retailing and procedures would end up being harder if the advertising and marketing department itself is degenerated which can be one more prospective OB concern.

Relationships Among Siblings And Cousins In A Family Firm Analysis

Numerous theories have been made use of to describe the situations to get further clearness about the circumstance available.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that subordinates are passive and lazy, have little aspiration and also stand up to modification. The hard variation of this concept emphasized browbeating, limited controls, hazards and punishments. With time it produces low performance, refined sabotage and rivalry (Deal, 2003). Although the circumstance at Relationships Among Siblings And Cousins In A Family Firm is not completely complying with Theory X, it can be seen that new hires are discovering this setting rather demanding which might ultimately lead to a higher disposition of the management in the direction of Concept X. As per McGregor's supported sight, which he called Concept Y, the important task of the monitoring is to set up organizational conditions to make sure that people can attain their very own objectives best by routing their efforts in the direction of organizational benefits. If people find no contentment in their job, the management would have little choice however to rely on concept X and also external control (Bargain, 2003). Also while evaluating Lewis's management style, concept X may have appropriated in the procedures division somewhat however the Advertising department would certainly require reliance on Concept Y so as to get the imagination and also originality from the teams.

Tuckman's Team effort Concept: As far as Lewis's worry regarding bringing consistency between the advertising and marketing as well as marketing division is concerned, this would initially lead to clash as talked about by Bruce Tuckman in his 'Synergy Concept'. By incorporating the marketing and advertising department's job, there might be the same first separate which might lead to the 2nd stage of 'storming' where the teams challenge one another.

When individuals are provided with change, they get in phase one and so there may be feelings like sadness, unpredictability, irritation, anger, anxiety, rejection as well as disorientation.The circumstance at the marketing department of Relationships Among Siblings And Cousins In A Family Firm is comparable so Lewis can get comfortable with the suggestion that it is not phenomenal actions. It is throughout this phase that Lewis will have to offer assistance to the division so that they can discover a sense of instructions. It can be seen just how Krasnow has actually currently made this change less complicated by making Lewis get involved in the division a year before his actual departure.

Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has reviews the significance of 'safety and security requires as being a lower degree requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel safe and also out of risk' is at the 2nd level of requirements. Before an employee can be made to create psychologically, he requires to have his 'Physiological 'as well as 'Safety' requires fulfilled.

SWOT Analysis for Relationships Among Siblings And Cousins In A Family Firm Case Study

Effects of Analysis.

The OB analysis has actually looked at different theories to comprehend exactly how to manage the present scenario available. The adhering to three alternatives have been recommended to aid Lewis handle the organizational difficulties in the marketing division. Each of these alternatives has been proposed for relieving the transition needed to bring the advertising and marketing division in line with the demands of the marketplace and also for making the social modification that would certainly comply with once the existing leader leaves.

Combination of marketing and advertising features. Dividing Adverting and Manufacturing functions. Integration of Marketing with Operations.

Assessment of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merging days has proficiency in business-to-business marketing along with firm as well as retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to deal with both marketing as well as advertising features.

The advantage of this method is that it will integrate both features while lowering the requirement for working with an extra resource for advertising and marketing. Lewis would certainly be heading the advertising division and also in any case her substitute would certainly be needed for the present function that she is performing. The disadvantage of this alternative is that external hiring might produce resentment from interior personnel that may be looking at the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting as well as Production: Provided the affordable stress as well as high quality job needed from the advertising and marketing company, it is recommended that Lewis must permit the production system to be a different function from the marketing system. Considering that most advertising firms had these two features as separate devices, it makes more sense to adhere to the standard.

Assimilation of Marketing with Procedures: Given that Lewis is already taking treatment of the advertising and also procedures departments at the same time; it makes feeling to integrate the two features given that she has actually been efficiently taking treatment of both ends. The truth that Lewis has to adjust her management style for the marketing division suggests that these 2 departments would certainly be culturally varied.


An examination of the three choices indicates that combination of marketing as well as procedures would not be a practical action due to the huge differences between the 2 divisions in spite of the reality that currently Lewis is taking care of both. While splitting up of the production feature may have been a beneficial action for the advertising and marketing division, the reality that it would imply positioning a third function under Lewis's wing indicates this ought to be stayed clear of.

Activity Plan.

Lewis will take over the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Production function will certainly continue to be component of advertising under advertising function.

Lewis will certainly separate herself from operations.

An autonomous leadership style with worker empowerment will be made use of in advertising and marketing division.

Open door plan and emphasis on cross departmental communication will certainly be aimed at eliminating disharmony.

Backup plan.

If the assimilation does not work out as intended, a contingency strategy would certainly follow 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 get hired, Lewis will be heading the marketing department without an SVP. In that case the production feature will absolutely be separated by putting it under an SVP production.