Battle For Value Federal Express Corp Vs United Parcel Service Of America Inc Abridged V 25 Case Study Solution


Home >> Harvard >> Battle For Value Federal Express Corp Vs United Parcel Service Of America Inc Abridged V 25 >>

Battle For Value Federal Express Corp Vs United Parcel Service Of America Inc Abridged V 25 Case Study Solution

Background and Facts

Battle For Value Federal Express Corp Vs United Parcel Service Of America Inc Abridged V 25 an office supplies merchant for little as well as average sized businesses has recently been involved in planning for a merger with its competitor House Deport, which has affected efficiency levels in departmentswith the elderly manager involved in lawful difficulties put forth by the federal Profession Commission. With the Marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the future. With difficulties in the type of a potential cultural change and reduced employee spirits, the organization wants a complete reengineering effort at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural modification at the advertising and marketing department of Battle For Value Federal Express Corp Vs United Parcel Service Of America Inc Abridged V 25 is raising unpredictability in the workplace bring about various obstacles for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting tactical choices because Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Payment's intervention at the same time. Offered the fact that the shop has a worldwide existence with branches in UK, U.S.A., Canada and Germany, political consider each of these nations might have the ability to impact efficiency or calculated goals. Federal Trade Commission's antitrust fit versus the merger used up valuable time of the organization's senior management suggesting that 'political' factors can have major ramifications for an international company.

Economic Factors: Economic factors such as the emergence of local business in the global scenario recommend that Battle For Value Federal Express Corp Vs United Parcel Service Of America Inc Abridged V 25 is thriving in an atmosphere where there is potential growth of businesses. Truth that store consumers are primarily looking for office materials for residence workplaces suggests that the market has a climbing trend of business owners and also house based services.

Social factors: Social trends in the economy reveal that consumers are seeking convenience in addition to appealing rates. Market research demonstrates how the client for Battle For Value Federal Express Corp Vs United Parcel Service Of America Inc Abridged V 25 does not have awareness regarding locating remedies which can offer a mix of ease and low costs.

Technological factors: Innovation plays a vital role in Battle For Value Federal Express Corp Vs United Parcel Service Of America Inc Abridged V 25's service method specifically as the organization is piloting Technology centers which would provide technology sales and support in the kind of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and Manifestations.

Several underlying Business Actions problems can be seen in Battle For Value Federal Express Corp Vs United Parcel Service Of America Inc Abridged V 25's case as highlighted in this section.

Apprehensions concerning cultural modification: There is worry regarding a social adjustment that would take place once Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with most of the staff members already showing discontent over this prospective relocation. This expected modification has actually developed stress in the office which has actually been coupled with the past stress of preparing the firm for a possible merging with Residence Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is scarcity of personnel that can match the demanding environment of a fast-paced company. Not just does this cause trouble in locating the appropriate individuals, it puts tension on new hires as can not hold up against the speed as well as stress that the organization anticipates them to birth.

Double Reporting Lines: Beginners locate this organizational society troublesome as well as difficult to handle specifically as dotted line connections are implied to be weaker as a whole and unbiased setting and also efficiency analysis is still done by the strong line manager. This implies that newcomers can shed clarity regarding their particular duties and also goals specifically as populated line reporting does not keep them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had been speculated that the latter would certainly take Krasnow's setting came as a strike to her morale. Lewis may have been capable as well as ideal for the task however the truth that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Work Instability: Anxiety and also insecurity can be identified as two significant issues that Lewis would be taking care of particularly as the merger has actually now be cancelled as well as two elderly execs of the advertising division would be leaving. The whole obligation of the department would certainly be dropping on Lewis's shoulders who would certainly not simply be in charge of brining concerning a social modification yet would certainly likewise have to show herself in her brand-new function.

Incompatible Administration Design of Leader: Lewis's administration style and its conflict with the advertising division's role can also be seen as an OB obstacle particularly as she has been used to taking care of problems in the operations division where personnel are shown to concentrate on processes as well as obtain them. The advertising division on the other hand can be seen as a group of individuals who are used to being supported by Krasnow who concentrated more on result than processes.

Interdepartmental Disputes: Interdepartmental differences between 3 divisions, advertising, merchandizing as well as operations respectively over the allocation of the advertising mix can be recognized as one more OB issue. The advertising and marketing division does not share the same vision as the other 2 departments regarding the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing as well as procedures divisions do not concur over the marketing mix allocation amongst one another either.

Fragmentation in Marketing Department: Fragmentation between the advertising and marketing departments can be recognized as another OB issue which could require further interest. The reality that the marketing and advertising areas in the marketing department are detached is protecting against both departments from gaining from each other's experience as well as competence. Assimilation of marketing with merchandising as well as operations would certainly become harder if the advertising and marketing division itself is disintegrated which can be an additional potential OB worry.

Battle For Value Federal Express Corp Vs United Parcel Service Of America Inc Abridged V 25 Analysis

Different concepts have been utilized to discuss the circumstances to obtain more clarity concerning the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of supervisors think that juniors are passive and also careless, have little passion and also withstand change. The scenario at Battle For Value Federal Express Corp Vs United Parcel Service Of America Inc Abridged V 25 is not completely complying with Concept X, it can be seen that brand-new hires are locating this setting instead difficult which may eventually lead to a greater disposition of the administration towards Theory X. Also while assessing Lewis's monitoring design, theory X may have been suitable in the operations division to some extent but the Advertising department would certainly call for reliance on Theory Y in order to obtain the creative thinking as well as originality from the teams.

Tuckman's Team effort Theory: As for Lewis's concern about bringing consistency between the marketing and advertising department is concerned, this would at first lead to clash as reviewed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, throughout the preliminary phase of team advancement, individuals may not bond, as they are hectic discovering their place in the team. By integrating the advertising and marketing division's job, there might coincide first disconnect which could bring about the second stage of 'storming' where the teams test one another. However, it is only throughout the 3rd stage or 'norming' when they would collaborate to share concepts before the group can produce synergy in the 4th stage 'carrying out'.

When individuals are provided with adjustment, they go into stage one and also so there may be feelings like unhappiness, unpredictability, stress, temper, anxiety, denial as well as disorientation.The circumstance at the advertising division of Battle For Value Federal Express Corp Vs United Parcel Service Of America Inc Abridged V 25 is comparable so Lewis can get comfy with the concept that it is not phenomenal behavior. It is during this phase that Lewis will certainly have to give guidance to the division so that they can find a feeling of instructions. It can be seen exactly how Krasnow has already made this shift easier by making Lewis obtain entailed in the department a year before his real departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has goes over the significance of 'protection requires as being a lower degree requirement of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel protected and out of danger' is at the second degree of requirements. Prior to an employee can be made to develop mentally, he needs to have his 'Physiological 'and 'Safety' needs satisfied.

SWOT Analysis for Battle For Value Federal Express Corp Vs United Parcel Service Of America Inc Abridged V 25 Case Study

Implication of Analysis.

The OB analysis has looked at numerous theories to recognize exactly how to cope with the current situation available. The complying with 3 alternatives have been recommended to help Lewis take care of the business challenges in the advertising division. Each of these options has been proposed for reducing the change required to bring the advertising division in line with the demands of the market as well as for making the social adjustment that would comply with once the present leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting and also Production features. Assimilation of Advertising with Workflow.

Assessment of Alternatives.

Combination of Advertising & Marketing Functions: The in-house marketing company of Battle For Value Federal Express Corp Vs United Parcel Service Of America Inc Abridged V 25 is currently toughness for the company in regards to conserving up on expenses connected to advertising as well as promotion. Considering that no brand-new recruitment has actually been done after Bridget Cole's separation with the coverage line being directly designated to Krasnow for the advertising function, this is a beneficial chance for incorporating the marketing and advertising features. Judith Shapiro that has earlier been talked to by Lewis during the earlier merger days has knowledge in business-to-business marketing together with firm and retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to handle both marketing and advertising features.

The benefit of this approach is that it will certainly integrate the two features while decreasing the requirement for employing an additional resource for advertising and marketing. In addition to this, Lewis would certainly be heading the marketing division as well as regardless her substitute would be needed for the existing role that she is doing. The disadvantage of this choice is that outside hiring may bring about bitterness from internal employees that might be looking at the setting of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Production: Offered the affordable stress and high quality work needed from the advertising company, it is suggested that Lewis ought to permit the production system to be a different feature from the marketing system. Because the majority of advertising and marketing companies had these two features as different devices, it makes more sense to follow the norm.

Assimilation of Advertising And Marketing with Workflows: Since Lewis is already taking care of the advertising and operations divisions concurrently; it makes sense to incorporate the 2 functions considering that she has actually been successfully taking treatment of both ends. The truth that Lewis has to adapt her administration design for the marketing department recommends that these 2 divisions would certainly be culturally varied.


An analysis of the 3 alternatives indicates that assimilation of advertising and marketing and also procedures would not be a viable move due to the large differences between the two divisions in spite of the fact that currently Lewis is taking care of both. While splitting up of the manufacturing function may have been a desirable step for the advertising division, the truth that it would certainly indicate putting a 3rd function under Lewis's wing suggests this ought to be avoided.

Action Plan.
Lewis will take control of the role of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Manufacturing feature will continue to be part of advertising and marketing under marketing feature.

Lewis will certainly divide herself from procedures.

An autonomous management style with staff member empowerment will be used in advertising and marketing division.

Open up door plan as well as focus on cross department interaction will be targeted at removing discord.

Contingency plan.

If the assimilation does not exercise as planned, a contingency plan would certainly adhere to which would divide the production feature from the advertising and marketing feature to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the manufacturing function will definitely be divided by placing it under an SVP production.