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Athleta Case Study Help

Background and Facts

Athleta a workplace products merchant for tiny as well as medium sized businesses has lately been involved in planning for a merger with its rival Residence Deport, which has actually influenced performance degrees in departmentswith the senior supervisor involved in lawful problems presented by the government Profession Commission. With the Advertising Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the present head of operations has actually been asked to take the role in the future. With difficulties in the type of a prospective cultural adjustment and low worker morale, the organization wants a complete reengineering effort at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural change at the marketing division of Athleta is enhancing unpredictability in the workplace bring about various obstacles for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting calculated choices since Stapes Inc. needed to abandon its plans of combining with Workplace Deport after the Federal Trade Commission's treatment while doing so. Provided the reality that the store has an international existence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries may be able to affect efficiency or strategic objectives. Federal Trade Compensation's antitrust match against the merging took up useful time of the organization's senior management suggesting that 'political' factors can have major implications for a global service.

Economic Factors: Economic factors such as the introduction of small companies in the global situation suggest that Athleta is growing in an environment where there is prospective development of services. Fact that store clients are mainly looking for office supplies for residence offices suggests that the market has a climbing trend of business owners and also home based companies.

Social factors: Social trends in the economic situation reveal that consumers are trying to find ease along with appealing rates. Marketing research demonstrates how the consumer for Athleta does not have understanding about locating solutions which can supply a combination of comfort as well as low costs.

Technical factors: Modern technology plays a vital duty in Athleta's service method specifically as the company is piloting Technology centers which would supply modern technology sales and support in the form of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues as well as Symptoms.

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

Concerns about cultural modification: There is apprehension about a cultural adjustment that would take place when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with a lot of the staff members already showing discontent over this potential move. This predicted adjustment has actually produced anxiety in the workplace which has been paired with the past stress of preparing the company for a prospective merger with Home Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is lack of workers that can match the stressful setting of a hectic company. Not only does this bring about difficulty in discovering the right people, it puts stress and anxiety on new hires as can not endure the pace and also pressure that the organization anticipates them to birth.

Double Coverage Lines: Beginners find this business society difficult and challenging to cope with especially as populated line connections are meant to be weaker in general and objective setup and performance examination is still done by the solid line manager. This means that beginners could lose clarity regarding their particular roles as well as goals particularly as populated line reporting does not maintain them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had been guessed that the last would certainly take Krasnow's setting came as a blow to her spirits. Lewis might have been capable as well as appropriate for the task yet the truth that Kransnow's departure would make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Anxiety & Task Insecurity: Anxiety as well as insecurity can be identified as two major issues that Lewis would be managing especially as the merging has now be cancelled and 2 senior executives of the marketing division would certainly be leaving. The whole obligation of the division would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining concerning a cultural adjustment yet would likewise need to show herself in her new role.

Incompatible Administration Style of Leader: Lewis's management style and also its conflict with the advertising and marketing department's function can likewise be viewed as an OB difficulty particularly as she has been made use of to handling problems in the operations department where workers are taught to focus on procedures and obtain them right. The advertising department on the various other hand can be viewed as a team of people who are used to being supported by Krasnow that focused much more on result than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements between three departments, advertising and marketing, merchandizing as well as procedures specifically over the allowance of the marketing mix can be identified as another OB worry. Although the advertising division does not share the very same vision as the various other two departments pertaining to the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and also operations divisions do not agree over the marketing mix appropriation amongst each other either.

Fragmentation in Advertising And Marketing Department: Disintegration in between the advertising and marketing divisions can be identified as another OB concern which might need further focus. The reality that the marketing and advertising sections in the marketing division are separated is preventing both departments from acquiring from each other's experience and knowledge. Integration of marketing with merchandising as well as operations would come to be harder if the advertising and marketing division itself is broken down which can be another prospective OB problem.

Athleta Analysis

Different concepts have been utilized to describe the circumstances to obtain further clearness about the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers think that staffs are passive and also lazy, have little aspiration as well as resist modification. The tough version of this theory stressed coercion, tight controls, risks and also punishments. In time it generates reduced efficiency, refined sabotage and also rivalry (Bargain, 2003). Although the circumstance at Athleta is not entirely following Theory X, it can be seen that new hires are discovering this environment rather difficult which may eventually cause a higher disposition of the monitoring towards Concept X. Based on McGregor's promoted view, which he called Theory Y, the important job of the management is to prepare organizational conditions to ensure that individuals can accomplish their own goals best by guiding their efforts towards business rewards. If individuals discover no contentment in their work, the management would have little option yet to count on theory X and outside control (Offer, 2003). Even while analyzing Lewis's management design, concept X might have appropriated in the procedures division to some extent however the Advertising division would call for reliance on Theory Y so as to get the creative thinking and also originality from the groups.

Tuckman's Synergy Theory: As far as Lewis's issue concerning bringing consistency in between the marketing and advertising department is worried, this would originally lead to contrast as reviewed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's theory shown in appendix 3, during the preliminary phase of group advancement, people might not bond, as they are active discovering their place in the team. By incorporating the advertising and marketing division's work, there may be the same initial detach which could bring about the 2nd stage of 'storming' where the teams test one another. However, it is just throughout the third stage or 'norming' when they would certainly integrate to share ideas before the group can cause harmony in the 4th stage 'carrying out'.

Bridges' Shift Model: As per William Bridge's concept (appendix 4), individuals are quite awkward with change, which is obvious by the circumstance at Athleta The scenario can be seen as a regular course of life if is examined as per Bridge's concept where he clarifies that people experience 3 stages of shift when they experience modification. 'Ending, losing and Letting go', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people exist with modification, they get in stage one therefore there might be emotions like unhappiness, uncertainty, aggravation, temper, fear, denial as well as disorientation.The circumstance at the advertising division of Athleta is comparable so Lewis can get comfy with the concept that it is not amazing actions. In the 2nd phase, there might be a demand to link the gap in between the brand-new and also old culture so Lewis might have to face this experience as soon as Krasnow leaves. There may be reduced spirits and low efficiency at this stage which should not be taken as a trouble. It is throughout this phase that Lewis will need to give support to the division to make sure that they can locate an orientation. It can be seen exactly how Krasnow has actually currently made this shift simpler by making Lewis obtain involved in the department a year before his real separation. According to Bridges' Version, phase three will certainly cause openness to discovering, High energy and also dedication as people will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB issue pertaining to insecurity at the work environment has been activated to start with by the adjustment in monitoring as well as secondly by the reality that the merger will certainly no more be initiated. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has discusses the relevance of 'safety and security needs as being a lower level demand of a human for triggering inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the requirement to really feel protected and untouched' is at the second degree of requirements. Prior to a worker can be made to establish psychologically, he requires to have his 'Physiological 'and 'Safety and security' requires met. This shows that unless the workers are made to feel secure regarding their current employment standing in Athleta they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Athleta Case Study

Ramification of Analysis.

The OB analysis has actually checked out various concepts to understand exactly how to handle the current scenario handy. The adhering to three options have been recommended to help Lewis manage the business difficulties in the advertising and marketing department. Each of these alternatives has actually been suggested for relieving the shift needed to bring the advertising division in accordance with the requirements of the market and for making the social modification that would certainly comply with when the existing leader leaves.

Combination of marketing and advertising features. Dividing Adverting and Production functions. Integration of Marketing with Workflow.

Examination of Alternatives.

Integration of Marketing & Advertising And Marketing Functions: The in-house advertising firm of Athleta is already strength for the organization in terms of conserving up on expenses related to advertising and also promo. Since no brand-new recruitment has actually been done after Bridget Cole's departure with the reporting line being straight assigned to Krasnow for the advertising and marketing function, this is a desirable possibility for integrating the marketing and advertising functions. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merger days has competence in business-to-business marketing together with firm as well as retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to handle both marketing and advertising features.

The benefit of this approach is that it will integrate the two functions while decreasing the demand for working with an added resource for marketing. Lewis would be heading the marketing department as well as in any kind of case her replacement would be required for the current duty that she is doing. The drawback of this alternative is that outside hiring may bring about resentment from interior personnel who may be eying the placement of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and also Manufacturing: Offered the competitive pressures and high top quality job required from the advertising firm, it is recommended that Lewis must enable the production system to be a different function from the marketing device. Because a lot of marketing companies had these 2 functions as separate devices, it makes even more sense to follow the norm.

Assimilation of Marketing with Procedures: Because Lewis is already taking care of the marketing and procedures departments all at once; it makes feeling to incorporate the 2 features since she has been successfully taking treatment of both ends. The reality that Lewis has to adjust her administration style for the marketing division recommends that these 2 divisions would certainly be culturally diverse.


An assessment of the 3 choices suggests that integration of advertising as well as operations would not be a viable action due to the substantial differences between the two departments regardless of the truth that presently Lewis is handling both. While separation of the production feature might have been a positive relocation for the advertising department, the truth that it would suggest placing a third function under Lewis's wing implies this should be avoided.

Activity Plan.
Lewis will certainly take over the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

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

Lewis will certainly separate herself from operations.

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

Open up door policy and also focus on cross department interaction will certainly be aimed at removing dissonance.

Contingency plan.

If the combination does not work out as planned, a contingency plan would certainly follow which would certainly divide the manufacturing feature from the marketing function to decrease 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 division without an SVP. Because case the manufacturing function will certainly be separated by putting it under an SVP production.