California Choppers Case Study Analysis


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California Choppers Case Study Analysis

Background and Facts

California Choppers a workplace products seller for little and also medium sized services has recently been associated with preparing for a merger with its rival Home Deport, which has actually affected effectiveness levels in departmentswith the elderly supervisor associated with lawful difficulties put forth by the government Profession Commission. With the Advertising Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the role in the future. With obstacles in the kind of a possible cultural change and reduced worker morale, the company requires a total reengineering initiative at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural modification at the advertising and marketing department of California Choppers is raising uncertainty in the workplace bring about numerous challenges for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing strategic decisions since Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Trade Commission's treatment at the same time. Provided the truth that the shop has a worldwide presence with branches in UK, USA, Canada as well as Germany, political factors in each of these nations may be able to impact performance or calculated objectives. Federal Profession Payment's antitrust match versus the merging occupied useful time of the company's elderly administration suggesting that 'political' factors can have major implications for an international business.

Economic Factors: Economic factors such as the appearance of local business in the worldwide scenario suggest that California Choppers is flourishing in an environment where there is possible growth of organisations. In addition to this, truth that shop customers are mostly trying to find workplace supplies for home offices recommends that the market has an increasing pattern of business owners as well as online services.

Social factors: Social patterns in the economic situation reveal that consumers are trying to find convenience in addition to eye-catching rates. Market research shows how the customer for California Choppers does not have recognition about finding options which can supply a combination of benefit and affordable.

Technical factors: Technology plays a crucial role in California Choppers's business approach particularly as the company is piloting Innovation facilities which would offer innovation sales as well as support in the type of memory upgrades, peripheral setups. (Summary of PEST in appendix 2).

OB Issues and Manifestations.

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

Apprehensions regarding social modification: There is uneasiness concerning a cultural modification that would certainly take place as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with a lot of the staff members currently showing unhappiness over this potential action. This anticipated modification has developed anxiety in the office which has been combined with the previous anxiety of preparing the firm for a possible merging with Residence Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is scarcity of employees that can match the difficult setting of a busy organization. Not just does this lead to trouble in discovering the ideal individuals, it places stress and anxiety on brand-new hires as can not stand up to the pace and also pressure that the organization expects them to bear.

Dual Reporting Lines: Novices discover this organizational culture cumbersome and also tough to manage particularly as dotted line partnerships are meant to be weak in general and also unbiased setup as well as efficiency examination is still done by the strong line manager. This means that newcomers can lose clarity regarding their particular duties and also objectives particularly as populated line coverage does not keep them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had been hypothesized that the last would take Krasnow's position came as a strike to her morale. Lewis might have been capable as well as appropriate for the job however the reality that Kransnow's separation would make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Work Instability: Anxiety and instability can be identified as two significant concerns that Lewis would certainly be dealing with particularly as the merging has actually currently be cancelled as well as two senior executives of the advertising division would certainly be leaving. The whole duty of the department would certainly be dropping on Lewis's shoulders that would not simply be in charge of brining regarding a social adjustment however would certainly additionally have to confirm herself in her brand-new duty.

Incompatible Monitoring Design of Leader: Lewis's management style and its incompatibility with the advertising division's role can likewise be seen as an OB obstacle especially as she has actually been used to managing problems in the procedures division where personnel are instructed to concentrate on processes and also obtain them. The advertising department on the various other hand can be seen as a group of individuals who are made use of to being supported by Krasnow that concentrated a lot more on result than processes.

Interdepartmental Differences: Interdepartmental disagreements between three divisions, advertising and marketing, merchandizing and operations respectively over the allowance of the advertising and marketing mix can be determined as one more OB worry. The marketing division does not share the very same vision as the various other two divisions regarding the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing as well as procedures divisions do not concur over the advertising and marketing mix allowance amongst one another either.

Fragmentation in Marketing Division: Disintegration in between the advertising and marketing divisions can be identified as an additional OB problem which could require additional focus. The reality that the advertising and marketing areas in the advertising and marketing division are detached is protecting against both divisions from gaining from each other's experience as well as expertise. Integration of marketing with merchandising as well as procedures would certainly come to be more difficult if the marketing division itself is disintegrated which can be another prospective OB concern.

California Choppers Analysis

Numerous theories have actually been used to explain the conditions to get more clarity concerning the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that subordinates are passive and careless, have little aspiration and stand up to modification. The circumstance at California Choppers is not entirely adhering to Theory X, it can be seen that brand-new hires are locating this environment rather demanding which may ultimately lead to a higher inclination of the monitoring in the direction of Theory X. Also while examining Lewis's management style, theory X may have been ideal in the operations department to some degree but the Marketing division would certainly need dependence on Theory Y in order to get the creative thinking and originality from the teams.

Tuckman's Teamwork Theory: As far as Lewis's concern concerning bringing consistency between the advertising and also advertising department is concerned, this would at first lead to conflict as reviewed by Bruce Tuckman in his 'Teamwork Theory'. By combining the advertising and marketing and marketing division's work, there might be the very same first disconnect which can lead to the 2nd phase of 'storming' where the teams challenge one an additional.

Bridges' Change Design: As per William Bridge's concept (appendix 4), individuals are fairly uncomfortable with adjustment, which is obvious by the circumstance at California Choppers The situation can be seen as a regular training course of life if is researched based on Bridge's concept where he explains that people undergo 3 phases of transition when they experience modification. 'Ending, losing as well as Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they get in phase one and so there may be feelings like despair, uncertainty, stress, temper, concern, denial and disorientation.The scenario at the marketing division of California Choppers is comparable so Lewis can get comfortable with the concept that it is not extraordinary behavior. In the 2nd phase, there may be a need to link the void in between the new and also old culture so Lewis might need to face this challenge once Krasnow leaves. There might be reduced spirits and also reduced productivity at this stage which must not be taken as a setback. It is during this phase that Lewis will certainly have to give assistance to the division to ensure that they can locate an orientation. It can be seen exactly how Krasnow has currently made this shift simpler by making Lewis get involved in the department a year before his real departure. According to Bridges' Design, stage 3 will certainly cause openness to understanding, High power and also dedication as individuals will certainly welcome the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has reviews the value of 'safety requires as being a lower degree requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel protected and out of risk' is at the 2nd level of needs. Before a worker can be made to develop mentally, he requires to have his 'Physical 'and 'Safety' requires satisfied.

SWOT Analysis for California Choppers Case Study

Effects of Analysis.

The OB analysis has actually considered various theories to comprehend exactly how to manage the existing circumstance available. The adhering to 3 options have been proposed to assist Lewis handle the organizational obstacles in the marketing division. Each of these choices has actually been suggested for relieving the change needed to bring the advertising and marketing department according to the needs of the market and for making the cultural adjustment that would follow when the current leader leaves.

Integration of advertising and marketing features. Dividing Adverting as well as Manufacturing functions. Combination of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis during 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 work with Shapiro as an EVP for advertising and marketing to take care of both advertising and also marketing features.

The advantage of this strategy is that it will integrate both features while lowering the demand for working with an extra source for marketing. Lewis would be heading the advertising and marketing department as well as in any case her substitute would be needed for the existing duty that she is doing. The downside of this alternative is that outside hiring might cause bitterness from inner personnel that may be considering the placement of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Production: Given the affordable stress as well as premium quality work called for from the advertising agency, it is recommended that Lewis should allow the production device to be a different function from the advertising and marketing unit. Since the majority of ad agency had these 2 functions as different systems, it makes more sense to follow the standard. In addition to this, both functions may have the ability to concentrate on their core turns on much more efficiently. The negative aspect of this strategy would be that added prices would have to be borne for establishing up separate manufacturing features. A production head may have to be worked with which can enhance overheads for the company.

Assimilation of Advertising And Marketing with Procedures: Considering that Lewis is currently taking care of the advertising and also operations departments all at once; it makes sense to integrate both features since she has been efficiently looking after both ends. The truth that both departments currently have significant distinctions over allotment of sources recommends that this combination might be able to produce consistency especially as Lewis would certainly be heading both ends.However there are different disadvantages of this move particularly as it would certainly put too much burden over Lewis's shoulders. The fact that Lewis has to adjust her administration design for the advertising department suggests that these two departments would certainly be culturally diverse. In addition to this, Lewis might not be able to apply one kind of management design to both departments which might lead to ineffectiveness in either among the two functions.


An examination of the 3 choices suggests that integration of marketing and operations would certainly not be a possible step due to the large differences between the 2 divisions regardless of the truth that presently Lewis is handling both. While separation of the production feature might have been a desirable move for the marketing division, the reality that it would certainly indicate positioning a third feature under Lewis's wing suggests this ought to be stayed clear of.

Action Plan.
Lewis will certainly take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would be merged.

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

Manufacturing feature will stay part of marketing under advertising function.

Lewis will certainly separate herself from operations.

A democratic management design with staff member empowerment will be utilized in advertising and marketing division.

Open door policy and focus on cross departmental interaction will certainly be aimed at getting rid of discord.

Backup plan.

If the combination does not exercise as intended, a contingency plan would certainly comply with which would divide the production function from the marketing function to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will certainly be heading the marketing department without an SVP. Because case the manufacturing function will certainly be divided by positioning it under an SVP production.