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Caesars Entertainment Case Study Solution

Background and Facts

Caesars Entertainment an office supplies merchant for little and medium sized services has actually recently been associated with preparing for a merging with its competitor House Deport, which has actually influenced performance levels in departmentswith the senior manager involved in legal issues put forth by the federal Trade Compensation. With the Advertising Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the near future. With difficulties in the type of a possible social modification and reduced worker morale, the company wants a full reengineering effort at the advertising department.

Problem Declaration
Porter's 5 Forces Analysis
The possible social modification at the advertising and marketing division of Caesars Entertainment is increasing uncertainty in the working environment resulting in numerous obstacles for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting critical choices since Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Profession Payment's intervention at the same time. Offered the fact that the shop has a global visibility with branches in UK, U.S.A., Canada and Germany, political consider each of these nations may have the ability to impact performance or critical goals. Federal Trade Payment's antitrust suit versus the merging occupied useful time of the organization's elderly management suggesting that 'political' factors can have significant ramifications for a global business.

Economic Factors: Economic factors such as the development of small businesses in the worldwide situation suggest that Caesars Entertainment is thriving in a setting where there is possible development of businesses. Along with this, truth that store clients are mostly seeking office products for office suggests that the marketplace has an increasing pattern of business owners and home based organisations.

Social factors: Social trends in the economic climate reveal that customers are trying to find benefit as well as attractive rates. Marketing research demonstrates how the customer for Caesars Entertainment does not have recognition concerning finding services which can use a combination of benefit and low costs.

Technical factors: Innovation plays an important function in Caesars Entertainment's organisation technique especially as the organization is piloting Modern technology facilities which would certainly provide modern technology sales and support in the type of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Business Habits issues can be seen in Caesars Entertainment's case as highlighted in this area.

Uneasiness about cultural change: There is apprehension about a cultural change that would take place once Todd Krasnow leaves from his placement as the Exec Vice President of Advertising with most of the team member already revealing discontent over this potential action. This predicted adjustment has developed tension in the workplace which has actually been coupled with the past anxiety of preparing the company for a possible merger with House Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is scarcity of workers that can match the stressful setting of a busy organization. Not only does this result in problem in discovering the appropriate individuals, it places stress on new hires as can not endure the rate and stress that the company expects them to birth.

Double Coverage Lines: Newbies locate this business society cumbersome and also challenging to deal with specifically as dotted line partnerships are meant to be weak generally and objective setup as well as efficiency examination is still done by the solid line supervisor. This implies that novices could lose clearness regarding their particular functions and objectives especially as populated line reporting does not keep them in straight interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles although it had been hypothesized that the latter would take Krasnow's position came as an impact to her morale. Lewis might have been capable as well as ideal for the work however the truth that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Work Insecurity: Anxiety as well as insecurity can be recognized as two major concerns that Lewis would be taking care of especially as the merger has now be cancelled and also two elderly execs of the advertising division would certainly be leaving. The whole obligation of the division would certainly be falling on Lewis's shoulders that would certainly not simply be in charge of brining about a cultural modification but would certainly additionally need to prove herself in her brand-new duty.

Incompatible Administration Design of Leader: Lewis's management style as well as its incompatibility with the advertising and marketing department's duty can likewise be seen as an OB challenge especially as she has been utilized to managing issues in the operations department where employees are shown to focus on processes and also obtain them. The advertising and marketing department on the various other hand can be viewed as a group of people that are made use of to being nurtured by Krasnow who focused much more on outcome than processes.

Interdepartmental Disputes: Interdepartmental arguments between 3 departments, advertising and marketing, merchandizing and operations specifically over the allotment of the advertising mix can be identified as an additional OB concern. Although the marketing department does not share the very same vision as the other 2 departments pertaining to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and also procedures divisions do not concur over the marketing mix allowance amongst each other either.

Disintegration in Advertising Department: Fragmentation in between the advertising and marketing departments can be recognized as one more OB concern which could need further interest. The truth that the marketing and advertising sections in the advertising and marketing department are separated is preventing both departments from getting from each various other's experience and experience. Combination of advertising with merchandising and operations would come to be harder if the marketing division itself is broken down which can be another prospective OB issue.

Caesars Entertainment Analysis

Different concepts have been made use of to discuss the conditions to get additional clarity concerning the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors think that juniors are easy and careless, have little passion and resist change. The tough variation of this theory emphasized coercion, tight controls, threats and also punishments. Over time it produces reduced performance, refined sabotage and competition (Bargain, 2003). Although the circumstance at Caesars Entertainment is not entirely complying with Theory X, it can be seen that brand-new hires are discovering this atmosphere instead demanding which might at some point result in a better disposition of the monitoring in the direction of Theory X. As per McGregor's promoted sight, which he called Concept Y, the essential task of the administration is to organize business problems to make sure that individuals can achieve their own objectives best by directing their initiatives towards organizational incentives. If individuals discover no contentment in their job, the management would certainly have little choice yet to rely on concept X as well as external control (Offer, 2003). Also while examining Lewis's monitoring design, concept X might have appropriated in the procedures department somewhat but the Marketing department would require reliance on Theory Y so as to get the creativity and also originality from the teams.

Tuckman's Synergy Concept: As far as Lewis's problem about bringing harmony between the advertising and marketing and also advertising and marketing department is worried, this would originally lead to contrast as gone over by Bruce Tuckman in his 'Team effort Concept'. By combining the advertising and also advertising and marketing division's job, there may be the same initial detach which can lead to the 2nd phase of 'storming' where the teams test one an additional.

When individuals are presented with change, they go into phase one as well as so there might be feelings like unhappiness, uncertainty, aggravation, temper, fear, denial as well as disorientation.The situation at the advertising and marketing department of Caesars Entertainment is similar so Lewis can get comfortable with the concept that it is not remarkable habits. It is during this phase that Lewis will certainly have to give support to the division so that they can find a feeling of instructions. It can be seen how Krasnow has currently made this shift easier by making Lewis obtain involved in the department a year prior to his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has talks about the importance of 'protection needs as being a reduced degree demand of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel protected and out of threat' is at the second degree of needs. Before an employee can be made to develop mentally, he requires to have his 'Physiological 'and also 'Safety' requires fulfilled.

SWOT Analysis for Caesars Entertainment Case Study

Implication of Analysis.

The OB analysis has considered various concepts to comprehend exactly how to deal with the existing circumstance available. The following three choices have actually been suggested to aid Lewis take care of the organizational challenges in the marketing department. Each of these alternatives has actually been proposed for alleviating the transition needed to bring the advertising and marketing department according to the needs of the marketplace as well as for making the cultural change that would certainly follow once the present leader leaves.

Integration of advertising and marketing features. Dividing Adverting and Manufacturing features. Combination of Advertising with Workflow.

Analysis of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merger days has proficiency in business-to-business advertising along with company as well as retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to take care of both advertising and advertising and marketing features.

The advantage of this approach is that it will integrate the two features while minimizing the need for employing an additional source for advertising and marketing. Lewis would be heading the marketing division and in any kind of case her substitute would be required for the existing duty that she is performing. The negative aspect of this option is that outside hiring might produce animosity from inner workers that might be looking at the setting of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and Production: Offered the competitive stress and also high quality work called for from the marketing agency, it is recommended that Lewis should enable the production unit to be a different function from the marketing device. Considering that many advertising and marketing firms had these two functions as different devices, it makes more sense to adhere to the norm.

Integration of Advertising with Operations: Because Lewis is already taking treatment of the marketing as well as operations departments all at once; it makes sense to integrate the 2 functions because she has been effectively taking treatment of both ends. The fact that Lewis has to adapt her monitoring style for the advertising and marketing division recommends that these 2 divisions would certainly be culturally varied.


An analysis of the three options shows that integration of advertising and marketing and procedures would not be a viable relocation as a result of the substantial distinctions between both divisions despite the fact that currently Lewis is taking care of both. While splitting up of the manufacturing function might have been a positive move for the advertising department, the reality that it would mean positioning a 3rd function under Lewis's wing means this must be stayed clear of. The integration of the advertising department is the best alternative in regards to obtaining the optimum arise from the division. An action plan for this option is gone over listed below.

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

Marketing and advertising features would be merged.

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

Manufacturing feature will stay part of advertising under advertising function.

Lewis will certainly separate herself from operations.

A democratic leadership design with employee empowerment will certainly be made use of in advertising and marketing department.

Open door plan and also focus on cross department communication will be focused on removing disharmony.

Backup plan.

If the combination does not exercise as intended, a backup plan would follow which would divide the manufacturing function from the marketing function 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 marketing department without an SVP. In that case the production feature will most definitely be divided by positioning it under an SVP production.