5 Fortune One Of Many Chinese Restaurants Case Study Solution


Home >> Harvard >> 5 Fortune One Of Many Chinese Restaurants >>

5 Fortune One Of Many Chinese Restaurants Case Study Solution

Background and Facts

5 Fortune One Of Many Chinese Restaurants a workplace supplies seller for tiny as well as moderate sized companies has actually recently been associated with planning for a merger with its rival Home Deport, which has influenced performance levels in departmentswith the elderly supervisor involved in legal complications presented by the government Trade Commission. With the Advertising and marketing Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the present head of operations has actually been asked to take the role in the near future. With obstacles in the type of a possible social modification and low employee spirits, the organization needs a complete reengineering effort at the marketing division.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the marketing division of 5 Fortune One Of Many Chinese Restaurants is boosting uncertainty in the workplace bring about various difficulties for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing tactical choices given that Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Trade Payment's intervention in the process. Provided the truth that the shop has a worldwide existence with branches in UK, USA, Canada and also Germany, political factors in each of these countries may have the ability to impact efficiency or tactical objectives. Federal Trade Commission's antitrust suit against the merger occupied valuable time of the company's elderly monitoring recommending that 'political' factors can have significant effects for a worldwide organisation.

Economic Factors: Economic factors such as the development of small companies in the global circumstance suggest that 5 Fortune One Of Many Chinese Restaurants is thriving in an environment where there is potential development of organisations. Fact that shop customers are mainly looking for workplace supplies for house workplaces suggests that the market has a rising pattern of business owners and residence based organisations.

Social factors: Social trends in the economic situation reveal that customers are seeking comfort in addition to eye-catching prices. Marketing research shows how the client for 5 Fortune One Of Many Chinese Restaurants does not have recognition about finding options which can use a mix of comfort and inexpensive.

Technological factors: Technology plays an important role in 5 Fortune One Of Many Chinese Restaurants's business approach especially as the organization is piloting Modern technology centers which would provide modern technology sales and also support in the type of memory upgrades, peripheral setups. (Recap of BUG in appendix 2).

OB Issues as well as Effects.

Numerous underlying Organizational Habits issues can be seen in 5 Fortune One Of Many Chinese Restaurants's case as highlighted in this section.

Concerns concerning cultural adjustment: There is uneasiness about a cultural modification that would take place as soon as Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with most of the personnel already showing unhappiness over this potential step. This expected modification has created tension in the workplace which has been paired with the previous stress and anxiety of preparing the company for a prospective merger with Home Deport.
Pest Analysis
Stressful Task Environment for Newcomers: There is shortage of workers that can match the difficult atmosphere of a fast-paced company. Not only does this lead to difficulty in finding the ideal people, it places stress and anxiety on new hires as can not stand up to the speed and also stress that the organization anticipates them to bear.

Double Reporting Lines: Beginners discover this business society difficult as well as hard to cope with particularly as populated line connections are meant to be weak in general and also unbiased setting and efficiency analysis is still done by the solid line manager. This suggests that newbies might shed clarity regarding their corresponding duties and purposes particularly as dotted line coverage does not maintain them in straight communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles even though it had actually been speculated that the latter would take Krasnow's setting came as an impact to her morale. Lewis may have been capable and suitable for the work however the truth that Kransnow's departure would make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Worry & Task Insecurity: Anxiety as well as insecurity can be determined as two significant issues that Lewis would be taking care of particularly as the merger has actually currently be cancelled and also 2 senior execs of the marketing department would certainly be leaving. The entire duty of the division would certainly be dropping on Lewis's shoulders who would not just be in charge of brining regarding a social change yet would certainly likewise need to show herself in her brand-new function.

Inappropriate Monitoring Style of Leader: Lewis's management design and also its incompatibility with the advertising division's duty can additionally be seen as an OB challenge specifically as she has actually been made use of to dealing with problems in the procedures department where workers are shown to concentrate on processes and also get them right. The advertising and marketing division on the various other hand can be viewed as a group of people who are used to being nurtured by Krasnow that concentrated a lot more on outcome than procedures.

Interdepartmental Disputes: Interdepartmental differences between 3 departments, marketing, merchandizing as well as procedures respectively over the allowance of the marketing mix can be recognized as one more OB concern. The marketing department does not share the very same vision as the various other two divisions relating to the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and operations divisions do not concur over the marketing mix allocation amongst one another either.

Disintegration in Advertising And Marketing Division: Disintegration between the marketing and advertising departments can be identified as one more OB concern which might need more interest. The fact that the marketing and advertising areas in the advertising and marketing department are separated is stopping both departments from getting from each various other's experience and also proficiency. Assimilation of marketing with retailing and operations would become harder if the advertising division itself is degenerated which can be one more potential OB issue.

5 Fortune One Of Many Chinese Restaurants Analysis

Various theories have been made use of to clarify the conditions to obtain further quality about the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors believe that juniors are easy and careless, have little ambition and resist modification. The tough variation of this theory highlighted coercion, limited controls, hazards and also punishments. In time it produces low efficiency, subtle sabotage as well as competition (Deal, 2003). Although the circumstance at 5 Fortune One Of Many Chinese Restaurants is not completely complying with Concept X, it can be seen that brand-new hires are locating this setting rather demanding which might eventually cause a greater inclination of the administration in the direction of Theory X. According to McGregor's promoted sight, which he called Theory Y, the crucial task of the administration is to set up organizational conditions to make sure that people can attain their very own goals best by routing their efforts towards organizational benefits. If individuals discover no satisfaction in their job, the administration would certainly have little selection however to rely on concept X as well as external control (Offer, 2003). Also while analyzing Lewis's administration design, concept X may have appropriated in the operations department somewhat but the Advertising division would call for dependence on Concept Y so as to get the imagination as well as originality from the groups.

Tuckman's Teamwork Theory: As far as Lewis's concern regarding bringing harmony in between the marketing and advertising department is concerned, this would initially bring about clash as talked about by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, throughout the initial stage of team advancement, people may not bond, as they are busy locating their location in the group. By integrating the marketing and advertising department's job, there might coincide first disconnect which might lead to the second phase of 'storming' where the groups test each other. Nevertheless, it is just during the 3rd stage or 'norming' when they would certainly come together to share ideas prior to the group can bring about harmony in the fourth stage 'executing'.

Bridges' Transition Version: According To William Bridge's concept (appendix 4), individuals are fairly awkward with change, which is obvious by the scenario at 5 Fortune One Of Many Chinese Restaurants The circumstance can be viewed as a regular training course of life if is studied based on Bridge's concept where he clarifies that people experience three phases of change when they experience adjustment. 'Ending, shedding as well as Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they get in phase one therefore there might be emotions like despair, unpredictability, frustration, temper, concern, rejection and disorientation.The situation at the advertising and marketing division of 5 Fortune One Of Many Chinese Restaurants is similar so Lewis can get comfortable with the suggestion that it is not remarkable habits. In the 2nd phase, there might be a demand to bridge the gap between the brand-new as well as old society so Lewis might need to encounter this challenge as soon as Krasnow leaves. There may be low spirits and also low efficiency at this stage which should not be taken as a trouble. It is during this phase that Lewis will certainly have to provide advice to the department to make sure that they can discover a sense of direction. It can be seen just how Krasnow has already made this change much easier by making Lewis get involved in the department a year prior to his real departure. According to Bridges' Model, stage three will produce visibility to discovering, High energy and dedication as individuals will accept the change (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB problem pertaining to instability at the work environment has been activated firstly by the change in monitoring and also secondly by the truth that the merging will certainly no more be initiated. Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has talks about the importance of 'security needs as being a reduced degree need of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel secure and out of danger' goes to the second level of requirements. Before an employee can be made to establish mentally, he needs to have his 'Physical 'and 'Security' requires fulfilled. This suggests that unless the workers are made to feel safe regarding their present work standing in 5 Fortune One Of Many Chinese Restaurants they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for 5 Fortune One Of Many Chinese Restaurants Case Study

Ramification of Analysis.

The OB analysis has taken a look at various concepts to understand just how to deal with the current circumstance at hand. The following 3 choices have actually been proposed to help Lewis manage the business difficulties in the marketing division. Each of these options has actually been recommended for alleviating the change needed to bring the advertising and marketing division in line with the requirements of the marketplace and also for making the social adjustment that would follow once the present leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and Production features. Integration of Marketing with Procedures.

Analysis of Alternatives.

Integration of Advertising & Advertising Functions: The internal advertising agency of 5 Fortune One Of Many Chinese Restaurants is already stamina for the organization in terms of saving up on overheads related to advertising as well as promo. Considering that no brand-new employment has actually been done after Bridget Cole's departure with the reporting line being directly appointed to Krasnow for the advertising feature, this is a positive possibility for incorporating the advertising and marketing features. Judith Shapiro that has earlier been spoken with by Lewis during the earlier merging days has proficiency in business-to-business advertising together with agency and retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both advertising and marketing functions.

The benefit of this strategy is that it will incorporate both functions while minimizing the need for hiring an extra source for marketing. Lewis would certainly be heading the advertising division and also in any kind of case her substitute would be required for the current role that she is carrying out. The negative aspect of this alternative is that outside hiring may produce resentment from inner employees that might be looking at the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and also Production: Offered the competitive stress and also high top quality job needed from the advertising and marketing agency, it is suggested that Lewis needs to permit the manufacturing system to be a separate feature from the advertising unit. Considering that many advertising agencies had these two features as different devices, it makes even more sense to comply with the standard.

Integration of Marketing with Operations: Considering that Lewis is currently looking after the marketing as well as procedures divisions concurrently; it makes sense to integrate the two features given that she has been efficiently dealing with both ends. The reality that both departments currently have significant distinctions over allocation of resources recommends that this assimilation may have the ability to bring about consistency particularly as Lewis would be heading both ends.However there are various downsides of this relocation especially as it would certainly place way too much worry over Lewis's shoulders. The truth that Lewis has to adjust her administration design for the marketing division recommends that these 2 departments would certainly be culturally diverse. Lewis may not be able to apply one kind of management design to both departments which can result in inefficiency in either one of the 2 functions.


An assessment of the 3 choices suggests that integration of advertising and operations would certainly not be a viable relocation as a result of the huge differences in between the two departments despite the fact that currently Lewis is managing both. While separation of the production feature may have been a desirable step for the marketing department, the fact that it would mean positioning a third feature under Lewis's wing means this ought to be prevented also. The combination of the advertising and marketing division is the most effective option in terms of getting the optimum results from the department. An activity plan for this alternative is gone over below.

Action Plan.
Lewis will certainly take over the function of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Production function will certainly remain component of advertising and marketing under advertising and marketing feature.

Lewis will certainly divide herself from procedures.

A democratic management design with employee empowerment will be used in marketing division.

Open door plan as well as emphasis on cross department communication will certainly be targeted at getting rid of dissonance.

Backup plan.

If the assimilation does not exercise as intended, a contingency plan would certainly adhere to which would certainly separate the production function from the marketing function to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising and marketing division without an SVP. In that case the manufacturing feature will definitely be divided by putting it under an SVP production.