All That Glitters Is Gold A Case Of Inventory Accounting Policy Case Study Analysis


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Background and Facts

All That Glitters Is Gold A Case Of Inventory Accounting Policy a workplace supplies merchant for tiny and average sized services has actually just recently been involved in planning for a merger with its rival Home Deport, which has actually influenced effectiveness levels in departmentswith the elderly supervisor associated with lawful 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 current head of procedures has actually been asked to take the function in the future. With difficulties in the type of a prospective cultural modification and also reduced employee morale, the organization wants a full reengineering effort at the marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The prospective cultural adjustment at the marketing division of All That Glitters Is Gold A Case Of Inventory Accounting Policy is raising unpredictability in the working environment causing numerous obstacles for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting tactical decisions considering that Stapes Inc. had to abandon its strategies of combining with Office Deport after the Federal Trade Payment's treatment at the same time. Provided the fact that the store has an international existence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these countries may be able to influence performance or tactical goals. Federal Profession Commission's antitrust fit against the merging took up important time of the company's senior administration recommending that 'political' factors can have severe effects for a worldwide company.

Economic Factors: Economic factors such as the development of local business in the international situation recommend that All That Glitters Is Gold A Case Of Inventory Accounting Policy is prospering in an environment where there is potential development of organisations. Reality that shop consumers are mostly looking for workplace materials for residence workplaces suggests that the market has a rising pattern of business owners as well as home based companies.

Social factors: Social trends in the economic situation reveal that customers are looking for comfort in addition to attractive costs. Marketing research shows how the customer for All That Glitters Is Gold A Case Of Inventory Accounting Policy does not have awareness regarding discovering options which can use a combination of benefit and also affordable.

Technical factors: Modern technology plays an essential function in All That Glitters Is Gold A Case Of Inventory Accounting Policy's organisation approach especially as the company is piloting Modern technology facilities which would certainly use innovation sales as well as assistance in the form of memory upgrades, outer installations. (Summary of INSECT in appendix 2).

OB Issues and also Symptoms.

Several underlying Organizational Behavior problems can be seen in All That Glitters Is Gold A Case Of Inventory Accounting Policy's case as highlighted in this section.

Worries regarding cultural modification: There is concern about a cultural change that would occur when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with most of the staff members currently showing unhappiness over this possible step. This expected change has actually created stress in the office which has actually been combined with the previous tension of preparing the company for a prospective merger with Home Deport.
Pest Analysis
Stressful Task Environment for Newcomers: There is lack of personnel that can match the stressful environment of a busy company. Not just does this bring about difficulty in finding the best individuals, it puts stress and anxiety on new hires as can not endure the pace and stress that the organization expects them to birth.

Twin Coverage Lines: Novices locate this business culture cumbersome and also tough to deal with particularly as dotted line connections are indicated to be weaker in general and unbiased setup and performance analysis is still done by the strong line manager. This indicates that newcomers can lose clarity regarding their corresponding duties and purposes especially as populated line coverage does not maintain them in straight communication with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles despite the fact that it had been guessed that the last would certainly take Krasnow's setting came as a blow to her morale. Lewis may have been capable and also appropriate for the job however the reality that Kransnow's separation would make Coles a straight record to Lewis might have been the reason for Coles' resignation from services.

Concern & Job Insecurity: Fear and also insecurity can be identified as two major worries that Lewis would be managing specifically as the merging has actually currently be terminated and also 2 senior executives of the marketing division would be leaving. The entire responsibility of the department would certainly be dropping on Lewis's shoulders that would not just supervise of brining concerning a social change but would certainly additionally need to verify herself in her brand-new duty.

Inappropriate Management Style of Leader: Lewis's monitoring style and also its incompatibility with the marketing department's duty can additionally be seen as an OB difficulty specifically as she has actually been used to handling concerns in the operations division where workers are shown to concentrate on procedures and also obtain them. The advertising and marketing division on the various other hand can be seen as a group of individuals who are made use of to being nurtured by Krasnow who concentrated extra on output than processes.

Interdepartmental Disagreements: Interdepartmental disagreements between 3 departments, advertising, merchandizing and operations specifically over the appropriation of the advertising and marketing mix can be recognized as an additional OB concern. Although the marketing department does not share the same vision as the various other 2 departments regarding the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and procedures divisions do not concur over the advertising and marketing mix appropriation among one another either.

Fragmentation in Advertising And Marketing Division: Disintegration between the advertising and marketing divisions can be identified as an additional OB issue which could require further focus. The fact that the marketing and advertising areas in the advertising and marketing division are disconnected is stopping both divisions from getting from each various other's experience and also competence. Combination of advertising with merchandising as well as operations would certainly become harder if the marketing department itself is disintegrated which can be another possible OB problem.

All That Glitters Is Gold A Case Of Inventory Accounting Policy Analysis

Numerous theories have been made use of to describe the scenarios to get further clearness regarding the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers think that staffs are easy and careless, have little aspiration and also stand up to modification. The difficult variation of this concept highlighted threat, tight controls, risks and punishments. In time it creates reduced performance, subtle sabotage and also rivalry (Bargain, 2003). The circumstance at All That Glitters Is Gold A Case Of Inventory Accounting Policy is not completely adhering to Theory X, it can be seen that brand-new hires are discovering this setting instead difficult which may eventually lead to a greater disposition of the management towards Concept X. Based on McGregor's advocated sight, which he called Concept Y, the essential task of the monitoring is to set up organizational conditions to make sure that individuals can attain their very own goals best by guiding their initiatives in the direction of business rewards. If individuals find no satisfaction in their job, the management would certainly have little option however to rely on theory X and also external control (Deal, 2003). Even while analyzing Lewis's monitoring style, concept X might have appropriated in the procedures department to some extent but the Marketing division would certainly require dependence on Concept Y in order to get the creativity and also originality from the teams.

Tuckman's Teamwork Concept: As far as Lewis's issue regarding bringing harmony in between the advertising and marketing as well as marketing division is worried, this would at first lead to contrast as gone over by Bruce Tuckman in his 'Teamwork Theory'. By combining the advertising and also advertising division's work, there may be the very same preliminary disconnect which can lead to the second stage of 'storming' where the teams challenge one an additional.

When people are presented with modification, they go into stage one and so there may be emotions like despair, unpredictability, stress, temper, worry, rejection and disorientation.The situation at the advertising division of All That Glitters Is Gold A Case Of Inventory Accounting Policy is similar so Lewis can get comfortable with the suggestion that it is not amazing behavior. It is throughout this stage that Lewis will certainly have to offer support to the department so that they can discover a feeling of instructions. It can be seen just how Krasnow has currently made this shift easier by making Lewis get involved in the department a year prior to his real separation.
Vrio Analysis
Maslow's Requirement power structure: The OB concern pertaining to instability at the work environment has been set off first of all by the adjustment in monitoring and secondly by the truth that the merger will no more be launched. Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has talks about the value of 'safety and security requires as being a reduced degree demand of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the need to feel safe and safe' is at the 2nd degree of needs. Before an employee can be made to develop emotionally, he requires to have his 'Physiological 'and also 'Safety and security' needs satisfied. This shows that unless the workers are made to feel safe concerning their existing work condition in All That Glitters Is Gold A Case Of Inventory Accounting Policy they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for All That Glitters Is Gold A Case Of Inventory Accounting Policy Case Study

Ramification of Analysis.

The OB analysis has actually looked at various theories to recognize just how to handle the current scenario available. The adhering to 3 alternatives have actually been recommended to help Lewis deal with the organizational obstacles in the advertising and marketing division. Each of these alternatives has actually been proposed for relieving the change required to bring the marketing department according to the demands of the market as well as for making the social adjustment that would certainly comply with once the present leader leaves.

Combination of advertising and marketing functions. Dividing Adverting as well as Production functions. Combination of Marketing with Workflow.

Analysis of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merger days has experience in business-to-business advertising and marketing along with agency and retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both marketing and advertising and marketing functions.

The advantage of this technique is that it will incorporate the two features while decreasing the requirement for working with an added resource for advertising. In addition to this, Lewis would be heading the advertising division as well as regardless her substitute would be needed for the current role that she is doing. The downside of this alternative is that external hiring may produce bitterness from internal personnel that might be considering the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and also Manufacturing: Given the affordable stress as well as high quality work called for from the ad agency, it is suggested that Lewis must enable the production device to be a different feature from the advertising system. Because most ad agency had these 2 functions as different units, it makes more sense to follow the standard. Both functions may be able to concentrate on their core turns on a lot more effectively. Nevertheless, the negative aspect of this method would certainly be that added costs would certainly need to be birthed for establishing separate manufacturing functions. A production head may have to be employed which could increase expenses for the company.

Assimilation of Advertising with Operations: Given that Lewis is currently taking care of the marketing as well as operations divisions concurrently; it makes feeling to integrate the 2 features since she has been efficiently taking treatment of both ends. The reality that Lewis has to adapt her administration style for the advertising and marketing department suggests that these 2 departments would certainly be culturally varied.


An examination of the 3 options suggests that assimilation of advertising and also procedures would not be a practical move due to the large distinctions between the 2 departments in spite of the truth that currently Lewis is dealing with both. While splitting up of the manufacturing function may have been a desirable relocation for the advertising and marketing department, the reality that it would imply positioning a 3rd function under Lewis's wing indicates this need to be avoided.

Activity Strategy.
Lewis will certainly take control of the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

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

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

Lewis will divide herself from procedures.

A democratic management design with employee empowerment will be made use of in advertising and marketing department.

Open up door plan and emphasis on cross departmental interaction will certainly be aimed at eliminating discord.

Contingency strategy.

If the integration does not exercise as planned, a contingency plan would adhere to which would separate the manufacturing feature from the advertising function to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising department without an SVP. Because case the manufacturing feature will absolutely be separated by placing it under an SVP manufacturing.