Straight Talk From The New Ceo Case Study Analysis


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Straight Talk From The New Ceo Case Study Analysis

Background and Facts

Straight Talk From The New Ceo a workplace supplies retailer for tiny and also average sized services has actually just recently been involved in preparing for a merging with its rival House Deport, which has influenced performance levels in departmentswith the elderly manager involved in lawful complications presented by the federal Trade Payment. With the Advertising Head advancing the news of his separation from the business in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the duty in the future. With challenges in the form of a possible social adjustment as well as low worker spirits, the organization needs a full reengineering effort at the advertising division.

Problem Statement
Porter's 5 Forces Analysis
The possible social modification at the advertising and marketing department of Straight Talk From The New Ceo is enhancing uncertainty in the working environment causing different 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 significant role in impacting critical choices since Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Commission's treatment in the process. Offered the truth that the store has a global existence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations might be able to affect performance or calculated objectives. Federal Trade Compensation's antitrust suit versus the merging used up beneficial time of the organization's senior monitoring suggesting that 'political' factors can have significant effects for an international service.

Economic Factors: Financial factors such as the appearance of small businesses in the global situation recommend that Straight Talk From The New Ceo is flourishing in an atmosphere where there is potential growth of services. In addition to this, truth that store customers are mostly seeking office products for office recommends that the market has an increasing pattern of business owners and also home based organisations.

Social factors: Social trends in the economic situation reveal that clients are trying to find benefit in addition to eye-catching costs. Market research shows how the customer for Straight Talk From The New Ceo does not have understanding regarding finding remedies which can supply a mix of benefit and low costs.

Technological factors: Technology plays a crucial function in Straight Talk From The New Ceo's business approach specifically as the organization is piloting Technology centers which would certainly use modern technology sales and also support in the kind of memory upgrades, peripheral setups. (Recap of PEST in appendix 2).

OB Issues as well as Manifestations.

Several underlying Business Actions concerns can be seen in Straight Talk From The New Ceo's case as highlighted in this section.

Concerns concerning social adjustment: There is uneasiness regarding a cultural change that would certainly happen when Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with a lot of the team member currently showing unhappiness over this possible action. This expected adjustment has created stress and anxiety in the workplace which has actually been coupled with the previous anxiety of preparing the firm for a potential merger with House Deport.
Pest Analysis
Stressful Job Atmosphere for Newcomers: There is lack of personnel that can match the difficult atmosphere of a hectic organization. Not just does this bring about trouble in finding the appropriate individuals, it places stress on brand-new hires as can not stand up to the rate and also stress that the organization expects them to birth.

Double Reporting Lines: Newbies find this business culture troublesome and hard to manage specifically as dotted line connections are suggested to be weaker generally as well as unbiased setup as well as efficiency examination is still done by the strong line manager. This indicates that novices could lose quality regarding their corresponding functions as well as goals especially as populated line reporting does not maintain them in straight interaction with the solid line supervisors.

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 last would certainly take Krasnow's setting came as a blow to her spirits. Lewis might have been qualified and proper for the work however the reality that Kransnow's separation would make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Fear & Task Instability: Worry as well as insecurity can be determined as two significant problems that Lewis would be taking care of especially as the merger has currently be cancelled and two elderly executives of the marketing department would certainly be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders that would certainly not just supervise of brining about a cultural modification but would certainly additionally need to show herself in her brand-new duty.

Inappropriate Monitoring Style of Leader: Lewis's monitoring design and its conflict with the marketing department's duty can likewise be seen as an OB challenge specifically as she has been used to managing issues in the operations division where workers are instructed to focus on processes and get them. The advertising division on the various other hand can be viewed as a team of people who are utilized to being supported by Krasnow who focused much more on outcome than processes.

Interdepartmental Disputes: Interdepartmental disagreements in between three departments, marketing, merchandizing and also procedures respectively over the allotment of the advertising mix can be recognized as another OB problem. Although the marketing department does not share the same vision as the other two departments concerning the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing as well as operations departments do not agree over the advertising mix appropriation among one another either.

Disintegration in Advertising Division: Fragmentation between the marketing and advertising departments can be determined as an additional OB problem which can require additional interest. The fact that the marketing and advertising areas in the marketing department are separated is stopping both departments from gaining from each various other's experience and also competence. Assimilation of advertising with merchandising and procedures would end up being more difficult if the marketing department itself is degenerated which can be one more potential OB problem.

Straight Talk From The New Ceo Analysis

Various concepts have been used to describe the situations to obtain additional quality about the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors believe that staffs are easy as well as lazy, have little ambition as well as resist modification. The hard variation of this theory emphasized browbeating, tight controls, threats and also punishments. With time it produces reduced efficiency, subtle sabotage as well as competition (Bargain, 2003). The circumstance at Straight Talk From The New Ceo is not entirely adhering to Concept X, it can be seen that brand-new hires are discovering this setting rather stressful which might eventually lead to a greater disposition of the administration in the direction of Concept X. According to McGregor's advocated view, which he called Theory Y, the essential task of the administration is to arrange organizational conditions so that individuals can accomplish their own objectives best by guiding their initiatives towards organizational incentives. If individuals locate no satisfaction in their job, the administration would have little selection however to count on concept X as well as outside control (Deal, 2003). Also while analyzing Lewis's administration style, theory X might have appropriated in the procedures department to some extent yet the Marketing division would certainly call for reliance on Concept Y in order to get the creative thinking and also creativity from the teams.

Tuckman's Teamwork Concept: As much as Lewis's concern regarding bringing consistency in between the advertising and also marketing department is concerned, this would at first lead to conflict as reviewed by Bruce Tuckman in his 'Team effort Concept'. By incorporating the marketing and also advertising and marketing department's work, there may be the same first detach which could lead to the 2nd phase of 'storming' where the teams challenge one another.

When individuals are presented with modification, they get in phase one and also so there might be emotions like unhappiness, unpredictability, irritation, rage, worry, denial as well as disorientation.The scenario at the advertising and marketing division of Straight Talk From The New Ceo is similar so Lewis can get comfy with the concept that it is not phenomenal actions. It is throughout this phase that Lewis will have to give assistance to the division so that they can locate a feeling of direction. It can be seen how Krasnow has actually currently made this shift less complicated by making Lewis obtain included in the department a year prior to his real departure.
Vrio Analysis
Maslow's Demand power structure: The OB problem related to instability at the work environment has been caused firstly by the modification in monitoring and also second of all by the fact that the merging will certainly no more be launched. Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has reviews the significance of 'safety needs as being a reduced degree need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel safe as well as untouched' goes to the 2nd degree of requirements. Before a worker can be made to create psychologically, he needs to have his 'Physical 'and also 'Safety and security' needs fulfilled. This shows that unless the personnel are made to feel protected regarding their current employment condition in Straight Talk From The New Ceo they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Straight Talk From The New Ceo Case Study

Ramification of Analysis.

The OB analysis has actually checked out numerous theories to recognize exactly how to handle the current situation handy. The following 3 options have been recommended to help Lewis take care of the organizational obstacles in the advertising department. Each of these options has been recommended for reducing the transition needed to bring the advertising department in line with the needs of the marketplace and also for making the social adjustment that would adhere to once the current leader leaves.

Integration of marketing and advertising functions. Separating Adverting and also Manufacturing features. Integration of Marketing with Workflow.

Assessment of Alternatives.

Integration of Advertising And Marketing & Advertising Functions: The in-house advertising agency of Straight Talk From The New Ceo is currently stamina for the company in terms of conserving up on expenses related to marketing and promo. Because no brand-new recruitment has been done after Bridget Cole's departure with the reporting line being straight appointed to Krasnow for the marketing feature, this is a beneficial possibility for integrating the advertising and marketing features. Judith Shapiro that has earlier been spoken with by Lewis during the earlier merger days has experience in business-to-business advertising together with company and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing functions.

The benefit of this technique is that it will integrate both features while decreasing the demand for working with an extra resource for marketing. Lewis would certainly be heading the advertising and marketing division as well as in any type of case her substitute would certainly be required for the present duty that she is performing. The negative aspect of this option is that external hiring may bring about bitterness from internal personnel that might be looking at the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting as well as Manufacturing: Offered the affordable stress and premium quality work required from the ad agency, it is suggested that Lewis must allow the manufacturing device to be a different feature from the advertising and marketing system. Given that a lot of ad agency had these 2 features as different systems, it makes more feeling to adhere to the norm. Both functions may be able to concentrate on their core activates more successfully. The downside of this method would certainly be that additional expenses would certainly have to be birthed for establishing up different manufacturing functions. Along with this, a production head might need to be worked with which can raise overheads for the organization.

Combination of Advertising with Operations: Given that Lewis is currently dealing with the advertising as well as operations divisions all at once; it makes sense to incorporate both features because she has been efficiently looking after both ends. The fact that both divisions currently have major differences over appropriation of resources recommends that this assimilation might have the ability to bring about harmony specifically as Lewis would certainly be heading both ends.However there are different disadvantages of this move specifically as it would certainly put too much worry over Lewis's shoulders. The reality that Lewis needs to adapt her management style for the advertising and marketing division recommends that these 2 divisions would certainly be culturally varied. Lewis might not be able to apply one kind of management style to both divisions which might result in ineffectiveness in either one of the 2 features.


An evaluation of the 3 options suggests that combination of marketing as well as operations would certainly not be a possible relocation because of the vast differences between the two divisions despite the fact that currently Lewis is handling both. While separation of the manufacturing function may have been a desirable relocation for the marketing department, the truth that it would certainly mean putting a 3rd feature under Lewis's wing means this need to be prevented too. The combination of the advertising and marketing division is the best alternative in terms of getting the optimum arise from the division. An activity plan for this alternative is discussed listed below.

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

Marketing and advertising features would certainly be combined.

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

Manufacturing feature will certainly stay part of advertising and marketing under advertising feature.

Lewis will divide herself from procedures.

An autonomous leadership style with worker empowerment will be used in advertising division.

Open door plan as well as emphasis on cross departmental interaction will certainly be targeted at eliminating discord.

Backup strategy.

If the combination does not exercise as intended, a contingency plan would certainly follow which would certainly divide the production function from the advertising and marketing feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the marketing division without an SVP. Because case the production function will most definitely be divided by placing it under an SVP production.