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Athleta Case Study Help

Background and Facts

Athleta a workplace products seller for little and medium sized companies has lately been involved in preparing for a merging with its rival Residence Deport, which has actually impacted performance levels in departmentswith the senior manager associated with legal issues put forth by the federal Profession Compensation. With the Advertising and marketing Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the future. With obstacles in the type of a prospective cultural modification and low staff member spirits, the company wants a total reengineering effort at the advertising division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible social change at the advertising and marketing division of Athleta is increasing uncertainty in the workplace bring about different obstacles for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing strategic decisions because Stapes Inc. needed to desert its strategies of combining with Office Deport after the Federal Trade Commission's intervention while doing so. Given the reality that the shop has a global existence with branches in UK, U.S.A., Canada and Germany, political consider each of these nations may have the ability to impact efficiency or critical goals. Federal Trade Payment's antitrust fit versus the merger took up important time of the company's senior administration suggesting that 'political' factors can have major ramifications for a global service.

Economic Factors: Financial factors such as the appearance of small businesses in the worldwide scenario suggest that Athleta is flourishing in an atmosphere where there is possible growth of organisations. In addition to this, fact that shop consumers are mainly seeking workplace materials for office suggests that the marketplace has a climbing fad of business owners as well as home companies.

Social factors: Social fads in the economic climate reveal that clients are seeking benefit as well as eye-catching costs. Marketing research shows how the client for Athleta does not have awareness about finding solutions which can provide a mix of convenience and also low costs.

Technical factors: Innovation plays an important function in Athleta's organisation technique specifically as the organization is piloting Innovation centers which would certainly supply technology sales as well as assistance in the type of memory upgrades, peripheral installments. (Summary of INSECT in appendix 2).

OB Issues and Manifestations.

A number of underlying Business Actions problems can be seen in Athleta's case as highlighted in this section.

Worries concerning cultural change: There is apprehension regarding a social adjustment that would certainly happen as soon as Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising And Marketing with the majority of the personnel currently revealing discontent over this prospective relocation. This predicted change has created stress in the office which has actually been paired with the past stress of preparing the firm for a potential merging with Home Deport.
Pest Analysis
Stressful Task Setting for Newcomers: There is shortage of workers that can match the difficult environment of a busy company. Not only does this result in difficulty in discovering the right people, it puts anxiety on new hires as can not stand up to the speed and stress that the company anticipates them to bear.

Dual Coverage Lines: Newbies locate this organizational culture troublesome and hard to handle especially as populated line relationships are indicated to be weaker generally and objective setting and performance assessment is still done by the solid line supervisor. This means that beginners might lose quality regarding their particular functions and goals specifically as populated line reporting does not maintain them in straight communication with the strong 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 guessed that the latter would certainly take Krasnow's position came as an impact to her spirits. Lewis may have been capable and also suitable for the work yet the reality that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Job Insecurity: Worry as well as instability can be determined as 2 significant issues that Lewis would certainly be dealing with especially as the merging has actually now be cancelled as well as 2 senior executives of the marketing division would be leaving. The entire obligation of the division would be dropping on Lewis's shoulders who would certainly not simply supervise of brining regarding a cultural change but would additionally need to confirm herself in her brand-new role.

Inappropriate Administration Style of Leader: Lewis's monitoring design and its conflict with the advertising and marketing department's role can also be viewed as an OB difficulty particularly as she has been used to managing concerns in the procedures division where employees are shown to concentrate on procedures as well as obtain them right. The advertising division on the various other hand can be viewed as a team of people who are made use of to being supported by Krasnow who focused much more on output than procedures.

Interdepartmental Differences: Interdepartmental disagreements in between 3 departments, marketing, merchandizing and also operations respectively over the allotment of the marketing mix can be identified as an additional OB worry. The advertising and marketing division does not share the very same vision as the other 2 divisions concerning the aloocation of the marketing mix twoards promos and advertsing, the merchandizing and also procedures divisions do not concur over the marketing mix allocation amongst one an additional either.

Fragmentation in Advertising And Marketing Department: Disintegration in between the advertising and marketing divisions can be identified as an additional OB issue which could require additional attention. The truth that the marketing and advertising sections in the marketing department are separated is preventing both departments from getting from each various other's experience and also knowledge. Assimilation of advertising and marketing with merchandising and also operations would end up being more difficult if the marketing division itself is degenerated which can be an additional possible OB worry.

Athleta Analysis

Numerous concepts have actually been utilized to explain the circumstances to obtain additional clarity about the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors believe that juniors are easy and also lazy, have little aspiration as well as stand up to modification. The scenario at Athleta is not completely adhering to Concept X, it can be seen that new hires are finding this atmosphere instead demanding which might eventually lead to a higher disposition of the administration in the direction of Concept X. Also while evaluating Lewis's monitoring design, concept X might have been suitable in the operations department to some degree yet the Marketing department would require reliance on Concept Y in order to get the creative thinking as well as originality from the teams.

Tuckman's Team effort Concept: As for Lewis's issue regarding bringing harmony in between the advertising and marketing division is concerned, this would at first result in clash as reviewed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, throughout the preliminary stage of group development, people might not bond, as they are hectic discovering their place in the team. By incorporating the marketing and advertising division's job, there may coincide initial detach which can lead to the 2nd stage of 'storming' where the groups challenge each other. It is only during the 3rd phase or 'norming' when they would certainly come with each other to share suggestions prior to the group can bring around harmony in the 4th phase 'carrying out'.

Bridges' Change Design: As per William Bridge's concept (appendix 4), individuals are fairly awkward with modification, which is evident by the situation at Athleta The circumstance can be seen as a normal training course of life if is studied according to Bridge's concept where he describes that individuals undergo 3 stages of shift when they experience change. 'Ending, losing and also Letting go', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When people exist with change, they get in stage one therefore there might be emotions like despair, uncertainty, aggravation, temper, anxiety, rejection and also disorientation.The circumstance at the marketing department of Athleta is similar so Lewis can obtain comfortable with the concept that it is not extraordinary habits. In the second phase, there might be a need to bridge the space in between the brand-new and also old culture so Lewis may need to encounter this ordeal as soon as Krasnow leaves. There may be reduced morale and also reduced performance at this phase which must not be taken as a trouble. It is during this phase that Lewis will certainly need to give assistance to the department so that they can find a sense of direction. It can be seen how Krasnow has actually currently made this transition easier by making Lewis get involved in the department a year prior to his real departure. Based on Bridges' Design, stage 3 will produce visibility to understanding, High energy and also commitment as individuals will accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has talks about the value of 'safety requires as being a reduced level need of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel protected and out of danger' is at the second level of demands. Before an employee can be made to create emotionally, he needs to have his 'Physical 'as well as 'Safety' needs satisfied.

SWOT Analysis for Athleta Case Study



Implication of Analysis.

The OB analysis has actually checked out numerous concepts to recognize exactly how to cope with the current circumstance at hand. The following three options have actually been proposed to help Lewis deal with the business obstacles in the marketing department. Each of these choices has been recommended for reducing the transition required to bring the advertising and marketing division in accordance with the requirements of the marketplace and also for making the social adjustment that would comply with when the present leader leaves.

Assimilation of marketing and advertising features. Separating Adverting as well as Production functions. Integration of Advertising And Marketing with Workflow.

Analysis of Alternatives.

Integration of Marketing & Advertising Functions: The internal marketing company of Athleta is currently strength for the organization in terms of conserving up on overheads related to advertising and marketing and also promotion. Because no new recruitment has been done after Bridget Cole's departure with the reporting line being directly designated to Krasnow for the advertising and marketing function, this is a favorable chance for integrating the advertising and marketing features. Judith Shapiro that has earlier been interviewed by Lewis during the earlier merger days has know-how in business-to-business advertising and marketing along with firm as well as retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing functions.

The advantage of this strategy is that it will certainly integrate the two functions while reducing the requirement for employing an extra resource for advertising. Lewis would be heading the marketing division and also in any case her substitute would certainly be needed for the present role that she is performing. The drawback of this alternative is that outside hiring may produce bitterness from interior workers that might be eying the placement of EVP after Lewis takes over Krasnow's placement.

Separating Adverting as well as Production: Given the competitive stress and also high quality work called for from the ad agency, it is suggested that Lewis needs to permit the production system to be a separate feature from the advertising device. Considering that many ad agency had these 2 functions as separate units, it makes even more sense to comply with the norm. In addition to this, both features might have the ability to concentrate on their core activates a lot more successfully. Nonetheless, the downside of this technique would be that added costs would need to be borne for setting up different production features. A production head may have to be hired which could increase expenses for the organization.

Assimilation of Advertising And Marketing with Procedures: Given that Lewis is already taking treatment of the advertising and marketing and operations divisions concurrently; it makes sense to integrate the two functions considering that she has been efficiently taking care of both ends. The truth that Lewis has to adapt her administration design for the advertising division suggests that these 2 divisions would be culturally varied.

Referral.



An evaluation of the three choices indicates that assimilation of advertising and operations would certainly not be a practical step because of the vast differences between both departments although that presently Lewis is dealing with both. While splitting up of the manufacturing feature might have been a beneficial step for the advertising and marketing department, the fact that it would imply positioning a 3rd feature under Lewis's wing indicates this must be avoided also. The integration of the advertising department is the most effective alternative in terms of obtaining the ideal arise from the division. An action plan for this alternative is talked about below.

Action Strategy.
Recommendation
Lewis will take over the role of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

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

Lewis will certainly separate herself from operations.

A democratic leadership design with worker empowerment will certainly be utilized in advertising division.

Open door policy as well as emphasis on cross departmental communication will certainly be aimed at removing dissonance.

Contingency plan.

If the integration does not work out as planned, a contingency strategy would adhere to which would certainly divide the production function from the advertising and marketing feature to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing division without an SVP. In that case the manufacturing function will absolutely be divided by positioning it under an SVP manufacturing.