Menu

7 Eleven In Thailand Case Study Analysis

CASE HELP

Home >> Harvard >> 7 Eleven In Thailand >>

7 Eleven In Thailand Case Study Solution

Background and Facts

7 Eleven In Thailand a workplace materials store for tiny and medium sized businesses has actually recently been associated with preparing for a merging with its rival House Deport, which has impacted efficiency degrees in departmentswith the senior supervisor associated with legal problems put forth by the federal Trade Payment. With the Advertising Head advancing the information of his departure from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the duty in the near future. With difficulties in the type of a potential cultural modification and also reduced worker morale, the organization requires a total reengineering initiative at the marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The potential social adjustment at the marketing division of 7 Eleven In Thailand is increasing uncertainty in the working environment 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 major function in affecting critical decisions given that Stapes Inc. needed to abandon its strategies of merging with Office Deport after the Federal Trade Compensation's intervention at the same time. Given the reality that the store has a worldwide existence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries may have the ability to impact efficiency or strategic goals. Federal Trade Payment's antitrust suit against the merging occupied useful time of the company's senior management recommending that 'political' factors can have major effects for a worldwide service.

Economic Factors: Economic factors such as the appearance of small businesses in the worldwide situation recommend that 7 Eleven In Thailand is growing in an environment where there is potential growth of organisations. In addition to this, truth that store customers are mainly trying to find office supplies for office recommends that the market has a climbing pattern of entrepreneurs as well as home services.

Social factors: Social patterns in the economic climate show that consumers are searching for comfort in addition to attractive costs. Marketing research demonstrates how the customer for 7 Eleven In Thailand lacks understanding concerning locating services which can supply a mix of benefit and also low costs.

Technical factors: Modern technology plays an essential function in 7 Eleven In Thailand's organisation approach especially as the company is piloting Innovation centers which would certainly offer modern technology sales and also assistance in the type of memory upgrades, outer installations. (Recap of BUG in appendix 2).

OB Issues and also Symptoms.

A number of underlying Organizational Actions issues can be seen in 7 Eleven In Thailand's case as highlighted in this area.

Worries concerning social adjustment: There is apprehension regarding a social change that would take place once Todd Krasnow leaves from his position as the Executive Vice President of Advertising with most of the personnel already revealing discontent over this potential step. This expected modification has actually produced stress and anxiety in the workplace which has actually been paired with the past tension of preparing the firm for a possible merging with Home Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is shortage of workers that can match the difficult setting of a busy company. Not just does this lead to difficulty in locating the right people, it puts stress and anxiety on brand-new hires as can not hold up against the pace as well as stress that the organization expects them to bear.

Double Reporting Lines: Newbies locate this organizational culture cumbersome and also challenging to cope with particularly as populated line relationships are suggested to be weak generally and also objective setup and performance assessment is still done by the strong line manager. This implies that novices can shed quality regarding their corresponding functions and purposes especially as dotted line reporting does not keep them in straight interaction with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been hypothesized that the last would take Krasnow's setting came as a strike to her morale. Lewis may have been qualified and suitable for the job however the truth that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Task Instability: Worry and also insecurity can be determined as 2 significant worries that Lewis would be handling particularly as the merger has actually currently be terminated as well as two senior execs of the advertising department would be leaving. The entire responsibility of the division would be falling on Lewis's shoulders that would certainly not simply be in charge of brining concerning a cultural modification however would certainly likewise have to confirm herself in her brand-new function.

Inappropriate Management Design of Leader: Lewis's monitoring style and also its incompatibility with the advertising division's role can likewise be seen as an OB obstacle specifically as she has been made use of to managing issues in the procedures division where employees are taught to concentrate on processes as well as get them right. The advertising and marketing department on the various other hand can be seen as a team of people who are made use of to being supported by Krasnow who focused more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental arguments between three departments, advertising, merchandizing and operations specifically over the allocation of the advertising and marketing mix can be recognized as one more OB problem. The advertising division does not share the very same vision as the other 2 divisions concerning the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing as well as procedures departments do not concur over the advertising mix allocation amongst one another either.

Disintegration in Advertising Division: Disintegration in between the advertising and marketing departments can be determined as an additional OB concern which might need further attention. The fact that the advertising and marketing areas in the advertising department are detached is stopping both divisions from obtaining from each various other's experience and know-how. Combination of advertising and marketing with merchandising and operations would become more difficult if the advertising and marketing division itself is broken down which can be one more possible OB worry.

7 Eleven In Thailand Analysis

Numerous theories have actually been utilized to discuss the situations to get further clarity about the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors believe that juniors are passive and lazy, have little ambition and also withstand change. The scenario at 7 Eleven In Thailand is not entirely complying with Concept X, it can be seen that brand-new hires are finding this setting instead demanding which may eventually lead to a higher disposition of the monitoring in the direction of Theory X. Also while evaluating Lewis's administration style, concept X might have been appropriate in the procedures department to some degree but the Advertising and marketing division would certainly need reliance on Concept Y in order to get the creative thinking and originality from the teams.

Tuckman's Team effort Concept: As far as Lewis's issue about bringing consistency between the marketing and advertising division is worried, this would originally bring about conflict as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, throughout the initial phase of group advancement, individuals may not bond, as they are hectic discovering their area in the group. By integrating the advertising and marketing department's job, there may coincide initial disconnect which might result in the 2nd phase of 'storming' where the groups test one another. It is just throughout the 3rd phase or 'norming' when they would certainly come with each other to share ideas prior to the team can bring around synergy in the 4th phase 'performing'.

When people are provided with adjustment, they get in phase one and so there might be feelings like sadness, uncertainty, disappointment, rage, worry, denial and also disorientation.The circumstance at the advertising department of 7 Eleven In Thailand is similar so Lewis can obtain comfortable with the concept that it is not phenomenal behavior. It is throughout this stage that Lewis will certainly have to offer guidance to the department so that they can locate a sense of instructions. It can be seen how Krasnow has actually already made this transition less complicated by making Lewis obtain entailed in the division a year prior to his real separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has goes over the significance of 'protection needs as being a lower level requirement of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel protected and out of threat' is at the second degree of requirements. Before a staff member can be made to create emotionally, he requires to have his 'Physical 'and 'Safety and security' requires met.

SWOT Analysis for 7 Eleven In Thailand Case Study



Implication of Analysis.

The OB analysis has checked out different concepts to understand just how to manage the existing scenario available. The following three options have been recommended to help Lewis manage the business difficulties in the advertising department. Each of these choices has actually been suggested for easing the transition needed to bring the marketing department in accordance with the requirements of the market as well as for making the social modification that would comply with once the present leader leaves.

Combination of advertising and marketing functions. Separating Adverting as well as Manufacturing functions. Assimilation of Advertising And Marketing with Operations.

Examination of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merging days has competence in business-to-business advertising along with firm and also retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to handle both advertising and marketing and advertising functions.

The benefit of this strategy is that it will incorporate both features while reducing the requirement for employing an additional source for advertising and marketing. In addition to this, Lewis would be heading the advertising and marketing department and also regardless her replacement would certainly be needed for the existing duty that she is performing. The negative aspect of this alternative is that outside hiring might cause animosity from inner workers that might be eying the placement of EVP after Lewis takes over Krasnow's placement.

Separating Adverting as well as Manufacturing: Offered the affordable stress as well as premium quality work needed from the ad agency, it is advised that Lewis needs to enable the manufacturing unit to be a separate feature from the advertising and marketing device. Given that many advertising agencies had these two features as separate systems, it makes even more sense to adhere to the standard. Both features might be able to concentrate on their core activates extra effectively. Nevertheless, the drawback of this method would be that additional costs would certainly have to be birthed for setting up different production features. A manufacturing head might have to be employed which might raise overheads for the company.

Assimilation of Advertising with Operations: Since Lewis is currently caring for the advertising as well as operations departments concurrently; it makes sense to integrate both functions because she has been effectively caring for both ends. The fact that both departments already have significant differences over allotment of sources suggests that this integration might be able to bring about consistency especially as Lewis would certainly be heading both ends.However there are various disadvantages of this action particularly as it would certainly put way too much problem over Lewis's shoulders. The reality that Lewis needs to adjust her management style for the advertising department recommends that these two departments would be culturally diverse. Lewis might not be able to use one type of management design to both divisions which can result in ineffectiveness in either one of the two functions.

Recommendation.



An examination of the three options indicates that assimilation of marketing and procedures would not be a viable action due to the vast differences between the two divisions despite the fact that presently Lewis is managing both. While splitting up of the production function might have been a favorable action for the marketing division, the fact that it would indicate placing a 3rd feature under Lewis's wing means this should be prevented too. The integration of the advertising and marketing department is the best option in terms of getting the ideal results from the department. An activity plan for this alternative is gone over below.

Action Plan.
Recommendation
Lewis will certainly take control of the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

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

Manufacturing feature will certainly continue to be component of marketing under marketing feature.

Lewis will divide herself from procedures.

An autonomous management style with employee empowerment will certainly be utilized in advertising and marketing department.

Open up door policy as well as focus on cross department interaction will certainly be focused on getting rid of dissonance.

Backup strategy.

If the assimilation does not work out as intended, a contingency strategy would certainly adhere to which would divide the manufacturing function from the advertising function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the manufacturing function will certainly be separated by positioning it under an SVP production.