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7 Eleven In Thailand Case Study Solution

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7 Eleven In Thailand Case Study Analysis

Background and Facts

7 Eleven In Thailand a workplace products retailer for little as well as average sized companies has actually just recently been involved in preparing for a merger with its competitor Home Deport, which has actually influenced performance degrees in departmentswith the senior supervisor associated with legal problems put forth by the government Profession Commission. With the Advertising and marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the role in the near future. With difficulties in the form of a potential social change and also reduced worker morale, the company is in need of a full reengineering initiative at the marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The potential cultural modification at the marketing department of 7 Eleven In Thailand is raising uncertainty in the working environment leading to numerous difficulties for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting tactical choices considering that Stapes Inc. needed to desert its strategies of combining with Office Deport after the Federal Trade Commission's intervention while doing so. Given the fact that the store has a worldwide visibility with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these countries might be able to influence performance or strategic goals. Federal Profession Payment's antitrust suit against the merger occupied useful time of the organization's senior management suggesting that 'political' factors can have significant ramifications for an international business.

Economic Factors: Financial factors such as the emergence of small companies in the global circumstance recommend that 7 Eleven In Thailand is prospering in an environment where there is possible growth of services. Along with this, truth that store clients are mainly searching for office products for office suggests that the marketplace has an increasing fad of business owners and online organisations.

Social factors: Social trends in the economic climate reveal that clients are trying to find comfort in addition to eye-catching prices. Market research demonstrates how the client for 7 Eleven In Thailand lacks recognition concerning locating services which can provide a mix of convenience as well as low costs.

Technological factors: Modern technology plays a crucial duty in 7 Eleven In Thailand's service method especially as the organization is piloting Modern technology facilities which would certainly use technology sales and assistance in the type of memory upgrades, outer installations. (Recap of PEST in appendix 2).

OB Issues and Manifestations.

Numerous underlying Business Habits issues can be seen in 7 Eleven In Thailand's case as highlighted in this area.

Concerns regarding social change: There is concern regarding a social modification that would take place as soon as Todd Krasnow leaves from his position as the Exec Vice President of Advertising with a lot of the staff members currently showing unhappiness over this possible step. This anticipated adjustment has actually developed stress in the workplace which has actually been combined with the past stress of preparing the company for a possible merging with Home Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is scarcity of employees that can match the difficult environment of a hectic company. Not only does this cause trouble in finding the best individuals, it places stress on brand-new hires as can not hold up against the rate as well as stress that the company expects them to birth.

Dual Coverage Lines: Beginners locate this business society difficult and also difficult to manage especially as populated line connections are suggested to be weak generally and also objective setting and also efficiency evaluation is still done by the solid line supervisor. This means that novices can shed clarity about their corresponding functions and also objectives particularly as populated line reporting does not keep them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had actually been speculated that the last would certainly take Krasnow's setting came as a strike to her morale. Lewis might have been capable and also ideal for the work however the fact that Kransnow's separation would make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Work Instability: Concern as well as insecurity can be determined as two major concerns that Lewis would certainly be handling particularly as the merging has actually currently be cancelled and 2 elderly execs of the marketing department would be leaving. The whole duty of the department would certainly be dropping on Lewis's shoulders that would certainly not just be in charge of brining concerning a social change however would also have to confirm herself in her new role.

Inappropriate Monitoring Style of Leader: Lewis's administration design as well as its conflict with the advertising department's role can also be seen as an OB difficulty particularly as she has actually been made use of to dealing with concerns in the procedures division where workers are educated to concentrate on procedures and also get them. The marketing division on the other hand can be seen as a group of people who are made use of to being supported by Krasnow who focused extra on result than processes.

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

Disintegration in Marketing Division: Fragmentation between the marketing and advertising departments can be recognized as an additional OB problem which might need further interest. The reality that the advertising and marketing areas in the advertising department are disconnected is preventing both divisions from getting from each various other's experience and experience. Assimilation of advertising with retailing and operations would certainly end up being harder if the advertising department itself is disintegrated which can be another prospective OB issue.

7 Eleven In Thailand Analysis

Different theories have been used to clarify the scenarios to get further quality regarding the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most managers think that juniors are easy and also careless, have little passion and resist adjustment. The circumstance at 7 Eleven In Thailand is not totally complying with Theory X, it can be seen that new hires are finding this environment rather demanding which might eventually lead to a higher disposition of the monitoring in the direction of Theory X. Also while evaluating Lewis's management style, concept X may have been appropriate in the operations department to some level yet the Marketing department would need reliance on Theory Y in order to obtain the imagination and also originality from the groups.

Tuckman's Teamwork Concept: As far as Lewis's issue regarding bringing harmony between the advertising and marketing and advertising and marketing division is worried, this would originally lead to conflict as gone over by Bruce Tuckman in his 'Synergy Concept'. By combining the advertising as well as advertising and marketing department's work, there may be the exact same initial detach which could lead to the 2nd phase of 'storming' where the groups challenge one an additional.

When people are provided with adjustment, they get in phase one as well as so there might be emotions like despair, uncertainty, stress, rage, worry, denial as well as disorientation.The circumstance at the advertising division of 7 Eleven In Thailand is similar so Lewis can get comfortable with the suggestion that it is not remarkable habits. It is during this phase that Lewis will certainly have to provide assistance to the department so that they can find a feeling of direction. It can be seen just how Krasnow has actually currently made this change easier by making Lewis get involved in the department a year before his real departure.
Vrio Analysis
Maslow's Need hierarchy: The OB issue related to instability at the office has been caused to start with by the adjustment in monitoring and secondly by the fact that the merger will certainly no longer be launched. Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has talks about the relevance of 'safety needs as being a reduced degree need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel protected and safe' is at the 2nd degree of needs. Prior to a staff member can be made to establish emotionally, he requires to have his 'Physiological 'and also 'Safety and security' requires fulfilled. This suggests that unless the employees are made to really feel safe and secure concerning their existing employment condition in 7 Eleven In Thailand they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for 7 Eleven In Thailand Case Study



Ramification of Analysis.

The OB analysis has actually checked out various theories to understand just how to handle the current circumstance handy. The adhering to 3 alternatives have been recommended to help Lewis take care of the business challenges in the marketing department. Each of these alternatives has actually been proposed for relieving the shift required to bring the advertising division according to the needs of the market as well as for making the social modification that would certainly follow when the present leader leaves.

Assimilation of advertising and marketing functions. Dividing Adverting as well as Production features. Assimilation of Marketing with Operations.

Assessment of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merging days has competence in business-to-business advertising and marketing along with agency and also retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to take care of both advertising and marketing features.

The advantage of this approach is that it will incorporate the two functions while decreasing the need for working with an extra source for marketing. Lewis would certainly be heading the marketing department and also in any case her substitute would certainly be needed for the current duty that she is carrying out. The negative aspect of this alternative is that exterior hiring might bring about resentment from internal employees who may be looking at the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and also Manufacturing: Offered the affordable stress and high quality job needed from the ad agency, it is advised that Lewis must enable the production device to be a separate function from the advertising and marketing system. Considering that a lot of ad agency had these two functions as separate systems, it makes even more feeling to comply with the standard. Along with this, both functions may have the ability to concentrate on their core triggers much more effectively. The negative aspect of this strategy would certainly be that additional costs would certainly have to be birthed for establishing up different production features. A manufacturing head may have to be hired which could enhance overheads for the organization.

Integration of Advertising And Marketing with Operations: Since Lewis is currently taking care of the advertising and procedures divisions at the same time; it makes feeling to incorporate the 2 functions given that she has been effectively taking care of both ends. The truth that Lewis has to adapt her management style for the advertising and marketing division recommends that these 2 departments would certainly be culturally varied.

Suggestion.



An evaluation of the three choices suggests that integration of advertising as well as operations would not be a viable action due to the large distinctions in between the two departments despite the fact that presently Lewis is handling both. While splitting up of the production function might have been a positive move for the marketing department, the fact that it would suggest placing a third function under Lewis's wing means this should be prevented.

Action Plan.
Recommendation
Lewis will take control of the function of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would be merged.

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

Manufacturing feature will remain component of marketing under advertising and marketing function.

Lewis will divide herself from operations.

An autonomous leadership style with worker empowerment will certainly be utilized in advertising and marketing division.

Open door plan as well as focus on cross departmental interaction will be focused on removing dissonance.

Contingency strategy.

If the integration does not exercise as prepared, a backup plan would certainly adhere to which would certainly separate the production feature from the advertising and marketing feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the advertising and marketing division without an SVP. Because case the production function will definitely be divided by placing it under an SVP production.