Central Express Corp Case Study Solution


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Central Express Corp Case Study Analysis

Background and Facts

Central Express Corp a workplace supplies merchant for tiny as well as moderate sized organisations has recently been associated with planning for a merger with its rival House Deport, which has affected effectiveness levels in departmentswith the senior supervisor associated with lawful issues put forth by the federal Trade Payment. With the Advertising and marketing Head advancing the news of his departure from the company in one year, Jeannie Lewis, the present head of operations has actually been asked to take the role in the future. With challenges in the form of a possible cultural modification and low employee morale, the company wants a complete reengineering effort at the marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural modification at the advertising and marketing division of Central Express Corp is raising uncertainty in the working environment leading to numerous obstacles for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting critical decisions since Stapes Inc. had to abandon its plans of merging with Office Deport after the Federal Profession Compensation's treatment at the same time. Given the fact that the shop has an international visibility with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations may have the ability to affect performance or tactical objectives. Federal Trade Commission's antitrust fit versus the merging occupied beneficial time of the organization's elderly monitoring suggesting that 'political' factors can have significant ramifications for a global service.

Economic Factors: Financial factors such as the development of small companies in the international situation suggest that Central Express Corp is prospering in a setting where there is possible growth of businesses. In addition to this, reality that store customers are mostly seeking office supplies for office suggests that the marketplace has an increasing fad of business owners as well as home businesses.

Social factors: Social patterns in the economic situation show that clients are looking for convenience in addition to eye-catching rates. Marketing research demonstrates how the client for Central Express Corp does not have recognition concerning finding services which can offer a mix of ease as well as affordable.

Technological factors: Technology plays an essential function in Central Express Corp's business method specifically as the organization is piloting Modern technology centers which would certainly provide technology sales and also support in the kind of memory upgrades, outer installations. (Recap of PEST in appendix 2).

OB Issues and also Manifestations.

Numerous underlying Business Actions issues can be seen in Central Express Corp's case as highlighted in this section.

Worries concerning cultural adjustment: There is worry concerning a social modification that would happen when Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with a lot of the employee already showing discontent over this potential step. This predicted adjustment has developed stress in the work environment which has been combined with the past stress and anxiety of preparing the firm for a prospective merger with Residence Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is lack of workers that can match the stressful atmosphere of a busy organization. Not only does this result in problem in finding the ideal people, it puts stress on new hires as can not withstand the pace and also pressure that the company anticipates them to birth.

Dual Reporting Lines: Beginners discover this business culture difficult and also tough to deal with particularly as dotted line relationships are meant to be weak generally and also unbiased setting and efficiency evaluation is still done by the solid line supervisor. This implies that novices might lose clarity concerning their particular functions and purposes particularly as dotted line coverage does not keep them in straight interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles despite the fact that it had actually been speculated that the latter would take Krasnow's setting came as a strike to her spirits. Lewis may have been qualified and proper for the work yet the fact that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Job Insecurity: Fear and also insecurity can be recognized as 2 major worries that Lewis would be managing specifically as the merging has actually currently be terminated and also 2 senior executives of the marketing division would be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders who would not simply be in charge of brining concerning a social adjustment yet would certainly likewise have to prove herself in her new role.

Incompatible Management Style of Leader: Lewis's management style and also its incompatibility with the marketing division's duty can also be seen as an OB challenge especially as she has been utilized to managing problems in the operations division where workers are shown to focus on procedures as well as obtain them. The advertising division on the other hand can be seen as a group of individuals that are utilized to being nurtured by Krasnow who concentrated much more on outcome than procedures.

Interdepartmental Disputes: Interdepartmental arguments between three divisions, marketing, merchandizing as well as procedures specifically over the allotment of the advertising mix can be identified as another OB issue. Although the marketing department does not share the very same vision as the various other 2 divisions regarding the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and operations departments do not concur over the advertising mix allotment among one another either.

Disintegration in Advertising And Marketing Department: Fragmentation between the advertising and marketing divisions can be identified as an additional OB concern which might require additional focus. The fact that the marketing and advertising areas in the advertising and marketing division are disconnected is stopping both divisions from gaining from each other's experience and also knowledge. Integration of advertising with retailing and also operations would come to be more difficult if the marketing department itself is disintegrated which can be another prospective OB problem.

Central Express Corp Analysis

Various concepts have been used to describe the circumstances to get more quality concerning the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers think that staffs are passive and lazy, have little ambition and stand up to adjustment. The situation at Central Express Corp is not totally complying with Theory X, it can be seen that brand-new hires are finding this environment rather stressful which may eventually lead to a higher disposition of the management towards Theory X. Even while examining Lewis's administration style, theory X may have been ideal in the procedures department to some degree however the Advertising and marketing department would certainly require reliance on Concept Y in order to obtain the creativity as well as originality from the groups.

Tuckman's Synergy Theory: As far as Lewis's worry regarding bringing harmony between the advertising and marketing department is worried, this would initially cause clash as reviewed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, during the first phase of team development, individuals may not bond, as they are hectic discovering their area in the group. By incorporating the advertising and marketing division's work, there may coincide initial disconnect which might lead to the 2nd stage of 'storming' where the teams test one another. Nevertheless, it is only during the third stage or 'norming' when they would collaborate to share ideas before the team can bring about harmony in the fourth stage 'carrying out'.

Bridges' Shift Design: According To William Bridge's concept (appendix 4), individuals are fairly awkward with modification, which is obvious by the scenario at Central Express Corp The situation can be seen as a regular course of life if is examined based on Bridge's theory where he discusses that individuals undergo three stages of shift when they experience adjustment. 'End, shedding as well as Releasing', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people exist with modification, they go into phase one and so there may be feelings like despair, uncertainty, irritation, temper, anxiety, rejection and disorientation.The circumstance at the advertising division of Central Express Corp is similar so Lewis can obtain comfortable with the idea that it is not amazing behavior. In the 2nd stage, there might be a requirement to link the void between the new and old society so Lewis may have to face this experience as soon as Krasnow leaves. There might be reduced spirits and also reduced performance at this phase which ought to not be taken as a problem. It is during this phase that Lewis will certainly have to give assistance to the division so that they can locate an orientation. It can be seen how Krasnow has currently made this transition simpler by making Lewis get associated with the department a year before his real separation. According to Bridges' Design, phase 3 will certainly produce openness to knowing, High power and commitment as people will certainly welcome the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has discusses the relevance of 'safety and security needs as being a lower degree demand of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel protected and also out of threat' is at the 2nd degree of needs. Prior to a worker can be made to establish emotionally, he requires to have his 'Physical 'as well as 'Safety and security' requires met.

SWOT Analysis for Central Express Corp Case Study

Implication of Analysis.

The OB analysis has looked at different theories to comprehend just how to deal with the current scenario available. The adhering to three alternatives have been suggested to assist Lewis manage the organizational obstacles in the advertising and marketing division. Each of these alternatives has actually been recommended for easing the transition required to bring the advertising and marketing division in accordance with the needs of the marketplace as well as for making the social modification that would comply with as soon as the existing leader leaves.

Combination of advertising and marketing features. Dividing Adverting and Manufacturing functions. Assimilation of Marketing with Procedures.

Evaluation of Alternatives.

Combination of Advertising And Marketing & Marketing Functions: The internal advertising company of Central Express Corp is already strength for the organization in regards to saving up on expenses connected to advertising and also promo. Given that no brand-new recruitment has actually been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the advertising and marketing feature, this is a positive possibility for incorporating the marketing and advertising features. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merger days has competence in business-to-business marketing in addition to firm as well as retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing functions.

The benefit of this approach is that it will certainly integrate both functions while lowering the demand for working with an extra resource for marketing. In addition to this, Lewis would be heading the marketing department as well as all the same her replacement would be needed for the existing duty that she is performing. The downside of this alternative is that exterior hiring may bring about animosity from internal employees that may be eying the position of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and also Production: Given the competitive pressures and high quality job required from the advertising company, it is recommended that Lewis should enable the manufacturing system to be a separate feature from the advertising and marketing system. Since the majority of advertising and marketing agencies had these 2 functions as separate units, it makes even more sense to comply with the norm.

Assimilation of Advertising And Marketing with Workflows: Since Lewis is already taking care of the advertising as well as procedures divisions at the same time; it makes feeling to integrate the two functions because she has been successfully taking care of both ends. The truth that Lewis has to adapt her monitoring style for the advertising and marketing division recommends that these two departments would be culturally diverse.


An evaluation of the three options suggests that assimilation of advertising as well as procedures would certainly not be a possible step due to the substantial differences in between the 2 divisions regardless of the truth that presently Lewis is handling both. While separation of the manufacturing function may have been a favorable action for the advertising division, the reality that it would certainly imply putting a 3rd feature under Lewis's wing suggests this need to be stayed clear of.

Activity Strategy.
Lewis will certainly take over the duty 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 marketing and advertising.

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

Lewis will separate herself from procedures.

An autonomous leadership design with staff member empowerment will certainly be utilized in advertising and marketing department.

Open up door plan and focus on cross departmental communication will certainly be focused on removing disharmony.

Contingency strategy.

If the assimilation does not exercise as intended, a backup plan would adhere to which would certainly separate the manufacturing function from the advertising and marketing function to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the production feature will absolutely be divided by putting it under an SVP production.