Menu

Bambooya Corporation Case Study Analysis

CASE STUDY

Home >> Harvard >> Bambooya Corporation >>

Bambooya Corporation Case Study Analysis

Background and Facts

Bambooya Corporation an office products merchant for little as well as average sized services has just recently been associated with planning for a merging with its competitor Residence Deport, which has impacted performance degrees in departmentswith the elderly supervisor associated with legal problems presented by the government Trade Compensation. With the Advertising and marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the current head of operations has actually been asked to take the role in the future. With obstacles in the type of a possible social adjustment as well as reduced staff member morale, the organization is in need of a total reengineering initiative at the advertising and marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The potential cultural modification at the advertising and marketing division of Bambooya Corporation is increasing unpredictability in the workplace causing various challenges for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing critical choices since Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Trade Compensation's intervention in the process. Offered the reality that the store has a worldwide existence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these countries may be able to impact performance or calculated goals. Federal Trade Commission's antitrust fit against the merging occupied beneficial time of the organization's senior management suggesting that 'political' factors can have significant effects for a worldwide company.

Economic Factors: Economic factors such as the introduction of small companies in the worldwide scenario suggest that Bambooya Corporation is growing in an environment where there is prospective growth of organisations. Truth that store customers are primarily looking for office supplies for residence workplaces suggests that the market has a climbing trend of business owners and also home based services.

Social factors: Social trends in the economy show that customers are seeking convenience as well as attractive costs. Marketing research shows how the client for Bambooya Corporation does not have recognition regarding locating services which can offer a combination of ease and also inexpensive.

Technological factors: Innovation plays a crucial function in Bambooya Corporation's business method specifically as the organization is piloting Technology centers which would offer innovation sales and also assistance in the form of memory upgrades, outer installations. (Recap of BUG in appendix 2).

OB Issues and Symptoms.

Several underlying Organizational Habits problems can be seen in Bambooya Corporation's case as highlighted in this area.

Worries regarding cultural modification: There is apprehension regarding a social adjustment that would certainly happen once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with the majority of the personnel currently showing unhappiness over this prospective move. This predicted change has actually developed stress in the workplace which has actually been combined with the past tension of preparing the firm for a prospective merger with House Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is lack of personnel that can match the difficult atmosphere of a hectic organization. Not only does this lead to problem in finding the right people, it puts anxiety on brand-new hires as can not endure the speed and pressure that the company anticipates them to birth.

Double Coverage Lines: Beginners find this business society difficult and also challenging to handle especially as dotted line relationships are suggested to be weaker generally and also objective setup and also performance examination is still done by the strong line manager. This means that newbies could lose clarity about their respective roles as well as purposes specifically as populated line reporting does not maintain them in direct communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had actually been hypothesized that the latter would certainly take Krasnow's setting came as a blow to her morale. Lewis may have been capable and ideal for the job however the reality that Kransnow's separation would make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Job Insecurity: Worry and instability can be identified as 2 major worries that Lewis would be managing specifically as the merger has currently be terminated and 2 senior executives of the marketing department would certainly be leaving. The whole obligation of the division would certainly be falling on Lewis's shoulders that would certainly not simply supervise of brining concerning a social adjustment yet would likewise need to confirm herself in her brand-new function.

Incompatible Monitoring Style of Leader: Lewis's administration style as well as its conflict with the advertising and marketing department's role can additionally be seen as an OB difficulty particularly as she has actually been made use of to taking care of issues in the procedures division where employees are educated to focus on procedures as well as obtain them. The advertising and marketing division on the other hand can be seen as a team of people that are utilized to being supported by Krasnow that focused a lot more on result than procedures.

Interdepartmental Arguments: Interdepartmental arguments between three departments, marketing, merchandizing and operations respectively over the allowance of the marketing mix can be identified as an additional OB issue. The marketing department does not share the same vision as the other 2 divisions pertaining to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and also operations departments do not concur over the marketing mix allocation amongst one another either.

Disintegration in Advertising And Marketing Division: Fragmentation between the advertising and marketing departments can be determined as an additional OB issue which could need further focus. The fact that the marketing and advertising sections in the marketing division are separated is protecting against both divisions from getting from each other's experience and expertise. Integration of marketing with merchandising and also operations would become harder if the advertising division itself is degenerated which can be another potential OB issue.

Bambooya Corporation Analysis

Various theories have actually been made use of to describe the scenarios to obtain additional clarity about the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers think that subordinates are passive as well as lazy, have little ambition and withstand adjustment. The tough variation of this concept emphasized threat, limited controls, dangers and also penalties. In time it produces low productivity, refined sabotage and rivalry (Deal, 2003). The scenario at Bambooya Corporation is not completely following Concept X, it can be seen that brand-new hires are discovering this atmosphere rather difficult which may at some point lead to a greater disposition of the monitoring in the direction of Theory X. As per McGregor's advocated view, which he called Theory Y, the necessary task of the administration is to organize business conditions to make sure that individuals can accomplish their own goals best by routing their efforts in the direction of business incentives. If individuals discover no satisfaction in their job, the management would certainly have little selection however to rely upon theory X as well as outside control (Offer, 2003). Also while assessing Lewis's management design, concept X might have appropriated in the procedures department to some extent but the Advertising division would certainly need dependence on Theory Y in order to get the imagination as well as creativity from the teams.

Tuckman's Synergy Theory: Regarding Lewis's problem concerning bringing harmony between the advertising and marketing division is concerned, this would originally cause contrast as discussed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, during the first phase of team development, people might not bond, as they are hectic locating their location in the group. By integrating the marketing and advertising division's work, there might coincide initial separate which can lead to the second phase of 'storming' where the groups challenge each other. It is just during the 3rd stage or 'norming' when they would certainly come with each other to share concepts before the team can bring about synergy in the 4th phase 'doing'.

When people are presented with change, they enter phase one and so there might be feelings like sadness, uncertainty, frustration, anger, fear, denial and disorientation.The situation at the advertising and marketing department of Bambooya Corporation is similar so Lewis can get comfy with the suggestion that it is not remarkable behavior. It is during this phase that Lewis will certainly have to give support to the division so that they can find a sense of instructions. It can be seen just how Krasnow has actually already made this transition easier by making Lewis get included in the division a year prior to his real separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has reviews the importance of 'protection needs 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 just how 'the requirement to feel protected and out of danger' is at the 2nd level of demands. Prior to a worker can be made to develop mentally, he requires to have his 'Physical 'and 'Safety and security' requires satisfied.

SWOT Analysis for Bambooya Corporation Case Study



Implication of Analysis.

The OB analysis has taken a look at various theories to recognize just how to handle the current circumstance handy. The complying with 3 alternatives have actually been recommended to aid Lewis deal with the business obstacles in the advertising and marketing division. Each of these alternatives has been proposed for relieving the transition required to bring the advertising division according to the demands of the marketplace and for making the cultural adjustment that would adhere to as soon as the existing leader leaves.

Integration of advertising and marketing functions. Separating Adverting and also Manufacturing features. Assimilation of Marketing with Operations.

Assessment of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merging days has know-how in business-to-business marketing along with company and also retail advertising and marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to manage both advertising and marketing as well as marketing functions.

The advantage of this technique is that it will incorporate the two functions while minimizing the requirement for employing an extra source for marketing. Lewis would be heading the marketing division and in any case her replacement would be needed for the current duty that she is executing. The negative aspect of this option is that outside hiring may cause animosity from internal workers that might be considering the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Manufacturing: Provided the competitive stress and also high top quality job needed from the marketing firm, it is advised that Lewis needs to enable the production system to be a different feature from the advertising and marketing system. Since the majority of marketing companies had these two functions as different systems, it makes more feeling to adhere to the norm.

Integration of Advertising And Marketing with Procedures: Considering that Lewis is currently looking after the marketing and operations departments concurrently; it makes sense to incorporate both functions given that she has actually been effectively caring for both ends. The reality that the two departments currently have significant distinctions over allocation of resources recommends that this assimilation may be able to bring about harmony especially as Lewis would be heading both ends.However there are numerous disadvantages of this relocation especially as it would place way too much concern over Lewis's shoulders. The reality that Lewis needs to adapt her management style for the marketing division recommends that these two departments would certainly be culturally diverse. In addition to this, Lewis may not be able to apply one kind of management design to both departments which can result in inadequacy in either one of the two features.

Referral.



An assessment of the 3 options suggests that combination of marketing as well as procedures would certainly not be a viable move due to the huge distinctions in between the two divisions regardless of the truth that presently Lewis is dealing with both. While splitting up of the production feature may have been a positive relocation for the advertising and marketing department, the reality that it would imply putting a 3rd feature under Lewis's wing means this must be stayed clear of.

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

Marketing and advertising features would certainly be combined.

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

Production function will certainly continue to be part of advertising and marketing under advertising feature.

Lewis will divide herself from operations.

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

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

Backup strategy.

If the assimilation does not work out as intended, a contingency strategy would certainly follow which would divide the production function from the marketing feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising and marketing department without an SVP. In that case the manufacturing function will absolutely be divided by putting it under an SVP manufacturing.