Calgas Case Study Solution


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Calgas Case Study Solution

Background and Facts

Calgas a workplace products store for tiny and also medium sized services has actually recently been involved in planning for a merger with its rival Residence Deport, which has actually affected efficiency levels in departmentswith the elderly manager involved in legal difficulties presented by the federal Trade Commission. With the Marketing Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the duty in the near future. With challenges in the form of a prospective social modification and also low employee spirits, the organization wants a complete reengineering initiative at the marketing department.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural adjustment at the advertising and marketing department of Calgas is increasing unpredictability in the working environment leading to various difficulties for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting critical decisions given that Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Compensation's intervention at the same time. Provided the reality that the store has a global existence with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries might be able to affect efficiency or strategic goals. Federal Trade Payment's antitrust match against the merging took up useful time of the organization's elderly monitoring recommending that 'political' factors can have serious ramifications for a worldwide organisation.

Economic Factors: Financial factors such as the emergence of local business in the worldwide circumstance recommend that Calgas is thriving in an environment where there is potential growth of companies. Along with this, reality that store consumers are mainly seeking office supplies for home offices recommends that the market has an increasing trend of business owners as well as online businesses.

Social factors: Social patterns in the economic climate reveal that customers are searching for ease along with appealing rates. Marketing research demonstrates how the customer for Calgas lacks awareness concerning discovering remedies which can use a combination of ease and low costs.

Technical factors: Modern technology plays an essential role in Calgas's service technique especially as the company is piloting Technology facilities which would certainly use modern technology sales as well as support in the kind of memory upgrades, outer installments. (Recap of BUG in appendix 2).

OB Issues as well as Symptoms.

Several underlying Organizational Behavior concerns can be seen in Calgas's case as highlighted in this area.

Apprehensions concerning cultural adjustment: There is apprehension about a social modification that would certainly happen as soon as Todd Krasnow leaves from his position as the Exec Vice President of Advertising with most of the employee currently revealing discontent over this prospective action. This expected change has actually created stress in the work environment which has been coupled with the past stress of preparing the company for a potential merging with Residence Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is scarcity of employees that can match the demanding atmosphere of a hectic organization. Not just does this cause problem in locating the best people, it puts anxiety on brand-new hires as can not stand up to the pace and pressure that the organization anticipates them to birth.

Dual Coverage Lines: Beginners find this business society troublesome and hard to deal with particularly as populated line connections are implied to be weak generally and objective setting and efficiency analysis is still done by the strong line manager. This means that newbies might lose quality regarding their corresponding duties and objectives particularly as dotted line reporting does not maintain them in direct communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles even though it had been hypothesized that the last would certainly take Krasnow's position came as a blow to her spirits. Lewis may have been qualified and ideal for the task but the fact that Kransnow's departure would make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Task Insecurity: Concern as well as instability can be determined as 2 significant worries that Lewis would be handling specifically as the merger has currently be terminated and also two senior executives of the marketing division would certainly be leaving. The whole duty of the department would certainly be falling on Lewis's shoulders that would certainly not simply be in charge of brining concerning a social change but would also have to verify herself in her brand-new duty.

Incompatible Administration Design of Leader: Lewis's administration style and also its conflict with the marketing department's function can additionally be seen as an OB challenge specifically as she has been made use of to dealing with issues in the operations department where employees are shown to focus on processes and also obtain them. The advertising and marketing department on the other hand can be viewed as a group of people who are made use of to being nurtured by Krasnow that focused much more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental differences between three divisions, marketing, merchandizing as well as procedures respectively over the allowance of the marketing mix can be identified as an additional OB concern. Although the marketing department does not share the very same vision as the other two departments concerning the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as procedures departments do not agree over the advertising and marketing mix allowance among one another either.

Fragmentation in Advertising Department: Fragmentation in between the advertising and marketing divisions can be identified as another OB problem which might require additional attention. The reality that the advertising and marketing areas in the marketing division are separated is stopping both departments from gaining from each various other's experience as well as competence. Integration of advertising and marketing with merchandising as well as procedures would become harder if the advertising department itself is degenerated which can be one more potential OB issue.

Calgas Analysis

Various theories have actually been used to discuss the circumstances to obtain further clarity about the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors think that subordinates are easy as well as careless, have little ambition and also withstand adjustment. The scenario at Calgas is not totally adhering to Theory X, it can be seen that brand-new hires are locating this environment instead demanding which may ultimately lead to a greater inclination of the administration towards Theory X. Also while examining Lewis's management style, theory X may have been appropriate in the operations division to some degree however the Marketing department would need dependence on Theory Y in order to get the creativity and also originality from the teams.

Tuckman's Teamwork Concept: Regarding Lewis's worry concerning bringing harmony in between the marketing and advertising division is worried, this would initially bring about contrast as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, throughout the initial phase of team growth, individuals might not bond, as they are hectic locating their place in the group. By incorporating the advertising and marketing department's job, there might be the same first separate which might bring about the 2nd stage of 'storming' where the groups challenge each other. Nevertheless, it is just during the 3rd stage or 'norming' when they would come together to share concepts prior to the group can bring about synergy in the 4th phase 'executing'.

When people are offered with adjustment, they get in phase one and so there may be emotions like despair, unpredictability, aggravation, rage, concern, denial as well as disorientation.The scenario at the advertising and marketing department of Calgas is similar so Lewis can get comfy with the suggestion that it is not remarkable habits. It is during this stage that Lewis will certainly have to provide support to the department so that they can locate a sense of direction. It can be seen exactly how Krasnow has currently made this shift less complicated by making Lewis obtain entailed in the department a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has talks about the importance of 'protection needs as being a lower level demand of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel protected and out of danger' is at the 2nd degree of requirements. Prior to a worker can be made to develop mentally, he requires to have his 'Physiological 'and 'Safety' needs met.

SWOT Analysis for Calgas Case Study

Ramification of Analysis.

The OB analysis has considered different theories to recognize exactly how to deal with the existing scenario at hand. The adhering to 3 choices have been suggested to assist Lewis manage the organizational challenges in the marketing division. Each of these options has actually been suggested for alleviating the shift needed to bring the advertising division according to the demands of the marketplace and also for making the social modification that would adhere to once the existing leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting and also Manufacturing features. Integration of Marketing with Procedures.

Analysis of Alternatives.

Combination of Advertising And Marketing & Advertising And Marketing Functions: The internal advertising and marketing firm of Calgas is currently stamina for the company in regards to saving up on expenses associated with marketing and promo. Since no new recruitment has been done after Bridget Cole's separation with the coverage line being directly designated to Krasnow for the advertising and marketing feature, this is a favorable opportunity for incorporating the advertising and marketing functions. Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merging days has proficiency in business-to-business advertising in addition to agency 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 features.

The benefit of this technique is that it will certainly incorporate both features while decreasing the requirement for hiring an added resource for advertising. Lewis would be heading the advertising and marketing department and in any case her substitute would certainly be needed for the present function that she is performing. The downside of this choice is that outside hiring may bring about resentment from inner personnel that may be considering the setting of EVP after Lewis takes over Krasnow's setting.

Separating Adverting as well as Manufacturing: Offered the affordable stress and also high top quality job required from the advertising firm, it is suggested that Lewis should permit the manufacturing unit to be a separate function from the advertising unit. Considering that a lot of advertising firms had these two features as separate units, it makes even more sense to follow the standard.

Combination of Advertising with Procedures: Given that Lewis is currently taking care of the advertising and also operations divisions all at once; it makes sense to incorporate both features considering that she has been effectively looking after both ends. The truth that the two divisions already have significant differences over allotment of sources recommends that this assimilation might have the ability to produce harmony specifically as Lewis would certainly be heading both ends.However there are different disadvantages of this action particularly as it would certainly put too much concern over Lewis's shoulders. The reality that Lewis has to adjust her management style for the advertising division recommends that these 2 departments would be culturally diverse. In addition to this, Lewis may not be able to use one kind of management design to both divisions which might result in ineffectiveness in either among both functions.


An analysis of the three alternatives indicates that integration of advertising and operations would not be a viable action due to the large differences between the two divisions in spite of the truth that currently Lewis is taking care of both. While splitting up of the production function might have been a beneficial relocation for the advertising and marketing division, the truth that it would suggest putting a 3rd feature under Lewis's wing suggests this ought to be stayed clear of.

Action Plan.
Lewis will certainly take over the function of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

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

Lewis will certainly divide herself from procedures.

A democratic management design with worker empowerment will certainly be used in advertising and marketing division.

Open door policy as well as focus on cross department communication will be aimed at getting rid of dissonance.

Backup strategy.

If the assimilation does not work out as prepared, a contingency strategy would certainly comply with which would certainly separate the manufacturing function from the marketing feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising division without an SVP. Because case the manufacturing feature will most definitely be separated by positioning it under an SVP manufacturing.