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Caesars Entertainment Case Study Solution

Background and Facts

Caesars Entertainment a workplace products retailer for tiny and moderate sized companies has just recently been involved in planning for a merging with its competitor Home Deport, which has actually affected performance levels in departmentswith the elderly supervisor involved in legal difficulties presented by the government Profession Payment. With the Advertising Head advancing the information of his separation from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the function in the near future. With obstacles in the kind of a prospective social adjustment and reduced staff member spirits, the organization needs a total reengineering effort at the advertising and marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The prospective social adjustment at the advertising department of Caesars Entertainment is increasing unpredictability in the working environment resulting in numerous difficulties 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 function in influencing critical decisions considering that Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Trade Payment's intervention in the process. Provided the reality that the store has a worldwide presence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations may be able to impact performance or tactical objectives. Federal Profession Payment's antitrust match versus the merger took up valuable time of the organization's elderly monitoring recommending that 'political' factors can have major implications for a global organisation.

Economic Factors: Financial factors such as the introduction of small companies in the worldwide scenario recommend that Caesars Entertainment is prospering in an atmosphere where there is prospective development of organisations. In addition to this, fact that store clients are primarily searching for workplace supplies for office suggests that the marketplace has a rising fad of entrepreneurs and home companies.

Social factors: Social fads in the economy show that customers are seeking benefit in addition to attractive rates. Marketing research demonstrates how the client for Caesars Entertainment does not have understanding concerning finding options which can use a combination of benefit and inexpensive.

Technical factors: Technology plays an important function in Caesars Entertainment's organisation approach particularly as the company is piloting Innovation facilities which would certainly provide technology sales and assistance in the type of memory upgrades, outer installations. (Summary of PARASITE in appendix 2).

OB Issues and also Symptoms.

Several underlying Organizational Behavior issues can be seen in Caesars Entertainment's case as highlighted in this section.

Uneasiness regarding social modification: There is uneasiness about a social adjustment that would occur when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising And Marketing with most of the team member currently showing unhappiness over this potential move. This anticipated modification has developed stress in the office which has actually been combined with the past anxiety of preparing the firm for a prospective merging with Home Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is lack of employees that can match the stressful environment of a fast-paced organization. Not just does this bring about trouble in finding the appropriate people, it puts anxiety on brand-new hires as can not stand up to the pace and pressure that the company anticipates them to birth.

Dual Reporting Lines: Beginners locate this business culture cumbersome and challenging to manage particularly as populated line connections are indicated to be weaker as a whole and also unbiased setup as well as efficiency evaluation is still done by the strong line manager. This implies that newcomers might lose clearness about their particular roles and goals especially as dotted line coverage does not keep them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles despite the fact that it had been speculated that the latter would certainly take Krasnow's setting came as a strike to her spirits. Lewis may have been qualified as well as proper for the job however the truth that Kransnow's separation would make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Job Insecurity: Worry and also insecurity can be determined as 2 significant problems that Lewis would certainly be handling specifically as the merger has actually now be terminated and two senior execs of the advertising division would be leaving. The whole duty of the division would be falling on Lewis's shoulders who would not just supervise of brining concerning a cultural change however would certainly also need to show herself in her brand-new function.

Inappropriate Administration Design of Leader: Lewis's administration style and also its incompatibility with the advertising and marketing division's function can also be viewed as an OB challenge especially as she has actually been used to dealing with problems in the procedures division where workers are shown to focus on procedures and get them right. The advertising and marketing department on the other hand can be viewed as a group of individuals who are utilized to being supported by Krasnow that concentrated extra on output than procedures.

Interdepartmental Arguments: Interdepartmental arguments between three departments, advertising, merchandizing as well as operations specifically over the appropriation of the advertising mix can be identified as another OB worry. Although the advertising and marketing department does not share the very same vision as the other two divisions regarding the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as operations departments do not agree over the advertising mix appropriation amongst each other either.

Fragmentation in Marketing Department: Fragmentation in between the advertising and marketing divisions can be recognized as another OB concern which could require additional interest. The truth that the marketing and advertising sections in the advertising and marketing department are detached is avoiding both departments from obtaining from each various other's experience and also competence. Combination of advertising and marketing with retailing as well as procedures would become harder if the marketing department itself is broken down which can be another potential OB worry.

Caesars Entertainment Analysis

Numerous concepts have been used to describe the conditions to obtain more clearness about the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors think that subordinates are easy and also lazy, have little aspiration and withstand modification. The situation at Caesars Entertainment is not completely following Concept X, it can be seen that new hires are locating this setting rather stressful which might ultimately lead to a higher inclination of the management towards Concept X. Even while examining Lewis's monitoring style, concept X might have been suitable in the procedures division to some level yet the Marketing division would require dependence on Concept Y in order to obtain the creative thinking as well as creativity from the teams.

Tuckman's Teamwork Concept: As far as Lewis's problem about bringing harmony between the advertising and marketing division is concerned, this would originally result in contrast as gone over by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's theory displayed in appendix 3, throughout the preliminary phase of group advancement, individuals may not bond, as they are busy locating their location in the group. By combining the advertising and marketing division's job, there may be the same preliminary detach which might cause the 2nd stage of 'storming' where the groups challenge each other. Nevertheless, it is just during the third stage or 'norming' when they would certainly collaborate to share ideas before the group can produce synergy in the 4th stage 'performing'.

When individuals are presented with modification, they go into stage one as well as so there may be emotions like unhappiness, unpredictability, irritation, temper, concern, denial as well as disorientation.The scenario at the advertising and marketing division of Caesars Entertainment is similar so Lewis can get comfy with the concept that it is not remarkable behavior. It is during this stage that Lewis will have to give guidance to the division so that they can discover a sense of direction. It can be seen just how Krasnow has currently made this change less complicated by making Lewis obtain included in the division a year before his actual departure.
Vrio Analysis
Maslow's Requirement pecking order: The OB issue pertaining to instability at the office has actually been triggered firstly by the change in monitoring and second of all by the truth that the merger will certainly no more be initiated. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has reviews the importance of 'protection needs as being a reduced level need of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to really feel secure as well as untouched' is at the 2nd degree of needs. Before an employee can be made to create psychologically, he needs to have his 'Physical 'and 'Safety' requires satisfied. This shows that unless the personnel are made to really feel protected concerning their present employment condition in Caesars Entertainment they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Caesars Entertainment Case Study



Implication of Analysis.

The OB analysis has actually considered different theories to recognize how to cope with the present situation at hand. The following three options have been suggested to aid Lewis deal with the organizational obstacles in the marketing division. Each of these choices has actually been suggested for relieving the shift needed to bring the advertising division in accordance with the needs of the market as well as for making the social change that would certainly comply with when the present leader leaves.

Integration of marketing and advertising functions. Dividing Adverting as well as Manufacturing features. Assimilation of Advertising with Workflow.

Assessment of Alternatives.

Integration of Marketing & Advertising Functions: The internal marketing company of Caesars Entertainment is already toughness for the company in terms of saving up on overheads related to advertising as well as promotion. Since no new recruitment has actually been done after Bridget Cole's departure with the reporting line being straight appointed to Krasnow for the advertising function, this is a beneficial opportunity for incorporating the advertising and marketing functions. Judith Shapiro that has earlier been talked to by Lewis during the earlier merging days has knowledge in business-to-business marketing together with firm and also retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to deal with both advertising and marketing functions.

The advantage of this method is that it will certainly integrate the two functions while decreasing the need for hiring an extra source for advertising. Along with this, Lewis would be heading the advertising and marketing department as well as all the same her replacement would be needed for the current function that she is carrying out. The negative aspect of this choice is that external hiring might bring about animosity from inner employees that might be considering the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and also Production: Offered the affordable stress as well as top quality job needed from the ad agency, it is advised that Lewis ought to permit the manufacturing unit to be a separate feature from the advertising system. Given that a lot of advertising agencies had these 2 features as different devices, it makes even more feeling to comply with the norm. Both features might be able to focus on their core triggers more effectively. The disadvantage of this technique would certainly be that extra prices would have to be borne for setting up separate manufacturing functions. In addition to this, a production head may have to be worked with which could enhance expenses for the company.

Integration of Marketing with Workflows: Because Lewis is already taking care of the advertising and marketing and procedures departments simultaneously; it makes sense to integrate the two functions since she has been successfully taking care of both ends. The reality that the two divisions currently have significant differences over allowance of sources suggests that this assimilation might be able to bring about consistency particularly as Lewis would be heading both ends.However there are different drawbacks of this action particularly as it would put way too much burden over Lewis's shoulders. The truth that Lewis needs to adjust her administration style for the marketing department suggests that these two departments would be culturally diverse. Lewis may not be able to use one kind of management style to both divisions which can result in inadequacy in either one of the 2 functions.

Referral.



An evaluation of the three alternatives indicates that assimilation of marketing and operations would not be a possible step due to the huge differences between the two departments although that presently Lewis is handling both. While splitting up of the production function might have been a positive step for the advertising division, the reality that it would certainly suggest positioning a 3rd function under Lewis's wing implies this ought to be avoided too. The combination of the marketing department is the very best choice in terms of obtaining the optimum arise from the department. An activity plan for this alternative is talked about below.

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

Marketing and advertising functions would be merged.

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

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

Lewis will divide herself from operations.

An autonomous leadership design with worker empowerment will certainly be used in marketing department.

Open door plan and also focus on cross departmental interaction will certainly be focused on eliminating discord.

Backup strategy.

If the assimilation does not exercise as intended, a backup strategy would certainly adhere to which would certainly divide the manufacturing 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 worked with, Lewis will certainly be heading the advertising and marketing division without an SVP. In that case the manufacturing feature will certainly be separated by positioning it under an SVP production.