Caesars Entertainment Corporation Case Study Analysis


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Caesars Entertainment Corporation Case Study Solution

Background and Facts

Caesars Entertainment Corporation an office materials merchant for tiny and also average sized businesses has actually just recently been associated with planning for a merging with its rival House Deport, which has influenced performance levels in departmentswith the senior manager associated with lawful problems put forth by the federal Profession Payment. With the Marketing Head advancing the information of his departure from the business in one year, Jeannie Lewis, the present head of operations has been asked to take the function in the near future. With difficulties in the kind of a potential cultural adjustment as well as low staff member morale, the organization requires a total reengineering effort at the marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural change at the marketing division of Caesars Entertainment Corporation is enhancing unpredictability in the workplace causing various difficulties for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing calculated decisions since Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Trade Payment's intervention while doing so. Provided the truth that the shop has a worldwide existence with branches in UK, USA, Canada and Germany, political consider each of these countries may be able to affect efficiency or strategic goals. Federal Trade Commission's antitrust fit versus the merger took up valuable time of the company's senior administration recommending that 'political' factors can have major effects for a global service.

Economic Factors: Financial factors such as the introduction of small businesses in the international circumstance recommend that Caesars Entertainment Corporation is growing in an atmosphere where there is prospective development of organisations. In addition to this, truth that shop customers are primarily searching for workplace materials for home offices recommends that the marketplace has a climbing fad of business owners and online organisations.

Social factors: Social fads in the economic climate reveal that clients are seeking benefit along with attractive prices. Marketing research demonstrates how the consumer for Caesars Entertainment Corporation does not have awareness about finding remedies which can offer a combination of benefit as well as inexpensive.

Technical factors: Modern technology plays an important duty in Caesars Entertainment Corporation's service method especially as the organization is piloting Innovation centers which would certainly offer innovation sales and assistance in the type of memory upgrades, peripheral installments. (Summary of BUG in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Business Actions concerns can be seen in Caesars Entertainment Corporation's case as highlighted in this section.

Uneasiness concerning social adjustment: There is worry concerning a social adjustment that would take place when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with the majority of the staff members currently revealing discontent over this potential relocation. This predicted change has created stress in the work environment which has been paired with the previous stress of preparing the company for a possible merging with Home Deport.
Pest Analysis
Stressful Job Atmosphere for Newcomers: There is shortage of personnel that can match the difficult atmosphere of a hectic company. Not just does this lead to trouble in discovering the appropriate people, it places stress on new hires as can not stand up to the rate as well as pressure that the company anticipates them to birth.

Dual Coverage Lines: Novices discover this business culture troublesome as well as tough to deal with especially as dotted line partnerships are meant to be weak generally and objective setting as well as efficiency analysis is still done by the strong line manager. This indicates that newcomers can lose clearness about their corresponding duties as well as purposes specifically as dotted line coverage does not maintain them in straight interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had actually been hypothesized that the latter would take Krasnow's position came as an impact to her spirits. Lewis may have been capable as well as suitable for the task but the fact that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Task Instability: Anxiety and also instability can be identified as 2 significant issues that Lewis would be managing particularly as the merger has actually currently be cancelled and also 2 senior executives of the advertising division would certainly be leaving. The whole obligation of the division would certainly be dropping on Lewis's shoulders who would not simply supervise of brining concerning a cultural adjustment yet would additionally need to prove herself in her brand-new duty.

Incompatible Monitoring Style of Leader: Lewis's management design and also its incompatibility with the marketing division's duty can additionally be seen as an OB challenge specifically as she has been utilized to taking care of problems in the procedures division where employees are instructed to focus on procedures as well as get them. The advertising department on the various other hand can be seen as a group of individuals that are made use of to being nurtured by Krasnow that concentrated extra on output than procedures.

Interdepartmental Disputes: Interdepartmental arguments between three departments, marketing, merchandizing and operations respectively over the allocation of the advertising and marketing mix can be recognized as an additional OB concern. The marketing department does not share the very same vision as the other 2 departments regarding the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and procedures departments do not agree over the marketing mix appropriation amongst one an additional either.

Disintegration in Advertising Division: Fragmentation in between the marketing and advertising departments can be recognized as one more OB problem which might need more focus. The fact that the marketing and advertising sections in the advertising department are separated is preventing both departments from getting from each various other's experience and also know-how. Integration of advertising and marketing with merchandising as well as procedures would become more difficult if the advertising division itself is degenerated which can be another possible OB issue.

Caesars Entertainment Corporation Analysis

Numerous concepts have actually been used to clarify the scenarios to obtain more quality regarding the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many supervisors think that subordinates are easy and also lazy, have little ambition and also resist modification. The hard version of this theory highlighted threat, limited controls, threats as well as penalties. Gradually it produces low efficiency, refined sabotage and also competition (Offer, 2003). The scenario at Caesars Entertainment Corporation is not completely complying with Concept X, it can be seen that new hires are finding this setting instead stressful which might at some point lead to a better inclination of the monitoring in the direction of Theory X. According to McGregor's advocated sight, which he called Concept Y, the vital job of the management is to organize organizational conditions so that individuals can attain their very own goals best by directing their initiatives towards organizational rewards. If individuals locate no contentment in their job, the administration would have little option yet to depend on concept X and also exterior control (Deal, 2003). Even while evaluating Lewis's management style, concept X might have appropriated in the operations division somewhat yet the Advertising department would require reliance on Theory Y to get the imagination and also creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's problem concerning bringing harmony in between the advertising and also marketing department is worried, this would originally lead to clash as discussed by Bruce Tuckman in his 'Synergy Theory'. By combining the advertising and also advertising and marketing department's work, there may be the exact same preliminary disconnect which can lead to the 2nd phase of 'storming' where the groups test one another.

Bridges' Shift Version: Based On William Bridge's concept (appendix 4), individuals are quite uncomfortable with adjustment, which is evident by the situation at Caesars Entertainment Corporation The circumstance can be seen as a typical program of life if is researched as per Bridge's theory where he clarifies that people go through 3 phases of transition when they experience modification. 'Closing, losing and Releasing', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people are presented with change, they go into stage one and so there may be emotions like unhappiness, unpredictability, frustration, rage, fear, rejection and disorientation.The scenario at the advertising department of Caesars Entertainment Corporation is similar so Lewis can get comfy with the concept that it is not amazing behavior. In the second stage, there might be a requirement to link the space in between the brand-new as well as old culture so Lewis may need to encounter this experience when Krasnow leaves. There may be low morale as well as low productivity at this stage which must not be taken as a trouble. It is during this phase that Lewis will have to provide support to the division to make sure that they can discover an orientation. It can be seen how Krasnow has already made this transition less complicated by making Lewis get involved in the department a year before his actual separation. As per Bridges' Design, stage three will certainly bring about openness to discovering, High energy and also dedication as people will certainly welcome the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB problem pertaining to instability at the workplace has been caused to start with by the change in management and also secondly by the fact that the merging will no more be started. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has talks about the relevance of 'safety needs as being a reduced level demand of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to really feel secure and out of danger' is at the second degree of needs. Prior to a worker can be made to establish psychologically, he needs to have his 'Physiological 'and 'Safety and security' needs met. This shows that unless the workers are made to feel safe and secure concerning their existing employment status in Caesars Entertainment Corporation they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Caesars Entertainment Corporation Case Study

Ramification of Analysis.

The OB analysis has considered numerous theories to comprehend exactly how to deal with the existing circumstance available. The complying with 3 alternatives have actually been suggested to aid Lewis deal with the organizational difficulties in the marketing department. Each of these alternatives has been recommended for relieving the transition required to bring the marketing division in accordance with the needs of the market as well as for making the social modification that would certainly comply with when the current leader leaves.

Combination of advertising and marketing functions. Separating Adverting and Manufacturing features. Combination of Marketing with Operations.

Examination of Alternatives.

Combination of Advertising & Marketing Functions: The in-house advertising and marketing agency of Caesars Entertainment Corporation is already stamina for the organization in terms of saving up on expenses connected to advertising and promotion. Considering that no new recruitment has been done after Bridget Cole's departure with the reporting line being directly appointed to Krasnow for the marketing function, this is a beneficial chance for integrating the advertising and marketing features. Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merging days has experience in business-to-business marketing in addition to firm as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to handle both advertising and marketing features.

The benefit of this approach is that it will certainly incorporate the two functions while lowering the requirement for hiring an added resource for advertising and marketing. Lewis would certainly be heading the advertising department and also in any type of case her substitute would be needed for the current function that she is executing. The negative aspect of this option is that outside hiring may produce resentment from internal employees that may be looking at the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and Production: Given the affordable pressures as well as high quality work called for from the advertising agency, it is recommended that Lewis needs to permit the production unit to be a different function from the advertising system. Since many advertising and marketing companies had these 2 functions as different devices, it makes more feeling to comply with the standard.

Assimilation of Advertising with Procedures: Considering that Lewis is already taking care of the advertising as well as procedures divisions at the same time; it makes feeling to integrate the two features given that she has been efficiently taking treatment of both ends. The truth that Lewis has to adjust her monitoring design for the advertising department suggests that these 2 departments would certainly be culturally diverse.


An analysis of the 3 options indicates that combination of advertising and marketing and also operations would not be a practical step due to the huge distinctions between the two departments despite the reality that presently Lewis is dealing with both. While splitting up of the manufacturing function may have been a beneficial relocation for the marketing division, the truth that it would certainly suggest positioning a 3rd function under Lewis's wing indicates this must be stayed clear of.

Activity Strategy.
Lewis will certainly take over the duty of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Manufacturing feature will continue to be component of advertising under marketing feature.

Lewis will certainly divide herself from operations.

An autonomous management design with worker empowerment will certainly be used in advertising and marketing division.

Open up door policy as well as focus on cross departmental communication will certainly be focused on getting rid of dissonance.

Backup plan.

If the assimilation does not exercise as planned, a backup plan would adhere to which would separate the production feature from the advertising feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the advertising department without an SVP. Because case the manufacturing function will certainly be divided by positioning it under an SVP production.