Menu

California Choppers Case Study Help

CASE STUDY

Home >> Harvard >> California Choppers >>

California Choppers Case Study Solution

Background and Facts

California Choppers an office materials retailer for small as well as average sized organisations has actually lately been involved in preparing for a merger with its rival Residence Deport, which has affected efficiency levels in departmentswith the elderly manager associated with lawful complications presented by the federal Trade Compensation. With the Advertising and marketing Head advancing the information of his departure from the business in one year, Jeannie Lewis, the current head of procedures has been asked to take the duty in the future. With difficulties in the type of a potential social modification as well as reduced staff member morale, the organization requires a total reengineering initiative at the marketing department.

Issue Statement
Porter's 5 Forces Analysis
The potential social change at the advertising department of California Choppers is boosting uncertainty in the workplace resulting in different challenges for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting strategic decisions because Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Profession Compensation's intervention while doing so. Provided the reality that the store has a worldwide existence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these countries might be able to influence efficiency or tactical goals. Federal Profession Commission's antitrust suit against the merging took up important time of the organization's elderly administration recommending that 'political' factors can have significant implications for a worldwide service.

Economic Factors: Financial factors such as the introduction of local business in the international situation recommend that California Choppers is growing in a setting where there is potential growth of organisations. In addition to this, fact that store consumers are mainly trying to find office products for office suggests that the marketplace has a rising pattern of entrepreneurs and home based services.

Social factors: Social fads in the economy show that clients are searching for comfort as well as eye-catching costs. Marketing research shows how the client for California Choppers lacks awareness regarding discovering remedies which can use a combination of comfort and also low costs.

Technical factors: Innovation plays an important duty in California Choppers's service approach particularly as the company is piloting Innovation facilities which would certainly provide technology sales and assistance in the kind of memory upgrades, outer installations. (Summary of BUG in appendix 2).

OB Issues as well as Effects.

Numerous underlying Organizational Behavior problems can be seen in California Choppers's case as highlighted in this area.

Uneasiness regarding social adjustment: There is apprehension regarding a social modification that would certainly take place when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising with a lot of the team member already showing unhappiness over this potential relocation. This expected adjustment has actually created stress and anxiety in the office which has been paired with the previous tension of preparing the company for a possible merging with Residence Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is shortage of employees that can match the difficult atmosphere of a hectic company. Not only does this cause trouble in finding the right individuals, it places tension on brand-new hires as can not hold up against the pace and pressure that the organization anticipates them to birth.

Twin Reporting Lines: Novices discover this business culture troublesome and difficult to manage specifically as populated line relationships are indicated to be weaker generally as well as unbiased setting as well as performance evaluation is still done by the strong line supervisor. This suggests that newbies can lose quality about their corresponding duties as well as objectives specifically as populated line coverage does not maintain them in direct communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had been guessed that the last would take Krasnow's position came as an impact to her spirits. Lewis might have been qualified as well as suitable for the work but the fact that Kransnow's departure would make Coles a direct report to Lewis may have been the factor for Coles' resignation from services.

Anxiety & Job Instability: Worry as well as instability can be recognized as 2 major worries that Lewis would certainly be handling specifically as the merging has currently be cancelled and two senior execs of the advertising and marketing department would be leaving. The whole obligation of the department would certainly be dropping on Lewis's shoulders that would certainly not simply supervise of brining concerning a cultural modification however would certainly additionally have to prove herself in her brand-new function.

Inappropriate Administration Style of Leader: Lewis's administration style and also its conflict with the advertising division's function can also be seen as an OB obstacle especially as she has been utilized to handling concerns in the procedures division where personnel are instructed to concentrate on processes as well as get them. The marketing department on the various other hand can be viewed as a team of individuals that are used to being nurtured by Krasnow who concentrated extra on outcome than procedures.

Interdepartmental Arguments: Interdepartmental disputes in between three divisions, advertising and marketing, merchandizing and also operations specifically over the allocation of the marketing mix can be recognized as one more OB problem. Although the marketing division does not share the very same vision as the various other two divisions regarding the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and also procedures departments do not concur over the marketing mix allowance amongst each other either.

Fragmentation in Advertising And Marketing Department: Fragmentation in between the marketing and advertising divisions can be recognized as an additional OB issue which can need further attention. The fact that the advertising and marketing areas in the marketing department are separated is protecting against both divisions from getting from each various other's experience and know-how. Assimilation of advertising and marketing with merchandising and also operations would certainly end up being harder if the marketing department itself is broken down which can be an additional potential OB worry.

California Choppers Analysis

Different concepts have actually been made use of to clarify the conditions to obtain additional quality concerning the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors believe that subordinates are easy as well as lazy, have little passion as well as withstand change. The situation at California Choppers is not entirely adhering to Concept X, it can be seen that brand-new hires are discovering this environment rather demanding which may at some point lead to a greater inclination of the management in the direction of Theory X. Also while analyzing Lewis's administration style, theory X might have been ideal in the operations department to some degree yet the Advertising division would require dependence on Theory Y in order to obtain the creativity as well as originality from the groups.

Tuckman's Synergy Concept: As much as Lewis's problem regarding bringing harmony in between the advertising as well as advertising division is concerned, this would initially lead to clash as talked about by Bruce Tuckman in his 'Synergy Concept'. By integrating the marketing and advertising department's work, there may be the very same preliminary detach which can lead to the second stage of 'storming' where the groups challenge one another.

Bridges' Change Version: Based On William Bridge's concept (appendix 4), individuals are rather unpleasant with adjustment, which is evident by the scenario at California Choppers The situation can be viewed as a typical program of life if is examined according to Bridge's concept where he explains that individuals undergo 3 stages of change when they experience adjustment. 'Closing, shedding and Releasing', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people are presented with adjustment, they enter stage one and so there might be feelings like unhappiness, uncertainty, aggravation, anger, worry, denial as well as disorientation.The circumstance at the advertising division of California Choppers is comparable so Lewis can get comfy with the suggestion that it is not extraordinary habits. In the 2nd phase, there may be a demand to link the void between the brand-new and also old society so Lewis may need to face this challenge as soon as Krasnow leaves. There might be reduced morale and low efficiency at this stage which ought to not be taken as an obstacle. It is during this stage that Lewis will need to give guidance to the department to make sure that they can locate a sense of direction. It can be seen how Krasnow has actually currently made this transition less complicated by making Lewis obtain associated with the department a year prior to his real departure. As per Bridges' Model, phase 3 will certainly produce visibility to learning, High power and also commitment as individuals will embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Need pecking order: The OB problem related to instability at the office has actually been activated to start with by the modification in management as well as secondly by the truth that the merger will no more be launched. Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has discusses the importance of 'safety needs as being a lower level need of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to feel secure and untouched' is at the 2nd level of demands. Prior to a staff member can be made to develop psychologically, he needs to have his 'Physical 'and 'Security' requires fulfilled. This shows that unless the personnel are made to really feel protected regarding their present work standing in California Choppers they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for California Choppers Case Study



Ramification of Analysis.

The OB analysis has actually considered various concepts to recognize how to handle the present circumstance at hand. The complying with three choices have actually been proposed to assist Lewis take care of the organizational challenges in the marketing department. Each of these alternatives has been proposed for relieving the transition required to bring the advertising division according to the demands of the market and for making the social change that would certainly adhere to once the existing leader leaves.

Integration of advertising and marketing functions. Separating Adverting and Manufacturing functions. Combination of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merging days has competence in business-to-business advertising and marketing along with company and also retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing features.

The advantage of this approach is that it will integrate the two functions while decreasing the need for working with an additional source for advertising. In addition to this, Lewis would certainly be heading the advertising and marketing department as well as regardless her replacement would be required for the existing role that she is performing. The drawback of this alternative is that outside hiring might cause animosity from interior workers that may be looking at the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting as well as Manufacturing: Given the competitive pressures and high top quality work needed from the advertising and marketing firm, it is suggested that Lewis must permit the manufacturing device to be a separate feature from the advertising device. Given that many advertising and marketing agencies had these two functions as separate devices, it makes even more sense to comply with the standard.

Assimilation of Advertising with Workflows: Because Lewis is already caring for the marketing and also procedures divisions all at once; it makes good sense to incorporate the two features considering that she has been successfully looking after both ends. The truth that both divisions already have significant differences over allowance of resources recommends that this integration may be able to bring about consistency specifically as Lewis would certainly be heading both ends.However there are numerous disadvantages of this action particularly as it would certainly place excessive problem over Lewis's shoulders. The truth that Lewis has to adjust her management design for the marketing division suggests that these two divisions would be culturally varied. In addition to this, Lewis may not have the ability to use one type of management style to both divisions which might cause inadequacy in either among both functions.

Suggestion.



An assessment of the three alternatives indicates that integration of advertising as well as operations would not be a viable move due to the huge differences in between the two divisions in spite of the truth that presently Lewis is taking care of both. While separation of the manufacturing feature may have been a favorable step for the marketing division, the reality that it would suggest placing a 3rd function under Lewis's wing implies this need to be stayed clear of.

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

Marketing and advertising functions would be combined.

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

Production function will certainly stay component of advertising and marketing under marketing function.

Lewis will certainly separate herself from operations.

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

Open up door policy and also focus on cross departmental communication will certainly be aimed at removing discord.

Backup plan.

If the combination does not exercise as prepared, a backup strategy would certainly adhere to which would certainly divide the production feature from the marketing feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the marketing department without an SVP. Because case the production function will certainly be separated by placing it under an SVP production.