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Charleys Family Steak House B Case Study Analysis

Background and Facts

Charleys Family Steak House B a workplace supplies store for tiny and also medium sized businesses has lately been associated with planning for a merging with its competitor House Deport, which has actually influenced effectiveness degrees in departmentswith the elderly supervisor associated with lawful issues put forth by the government Trade Compensation. With the Advertising Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the duty in the future. With obstacles in the kind of a prospective social modification and also low employee spirits, the company requires a full reengineering effort at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The potential cultural modification at the advertising department of Charleys Family Steak House B is raising unpredictability in the workplace causing numerous difficulties for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting tactical choices because Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Trade Payment's intervention while doing so. Offered the reality that the store has a global visibility with branches in UK, USA, Canada and also Germany, political consider each of these countries may be able to affect performance or strategic objectives. Federal Trade Payment's antitrust fit against the merging took up important time of the organization's senior management suggesting that 'political' factors can have severe implications for a global company.

Economic Factors: Economic factors such as the development of local business in the global situation recommend that Charleys Family Steak House B is thriving in an environment where there is potential growth of services. Reality that store consumers are mostly looking for office supplies for residence workplaces suggests that the market has a rising fad of entrepreneurs and also residence based companies.

Social factors: Social trends in the economic climate show that consumers are seeking convenience in addition to appealing rates. Marketing research shows how the client for Charleys Family Steak House B lacks awareness regarding locating services which can supply a mix of comfort as well as inexpensive.

Technical factors: Technology plays a crucial role in Charleys Family Steak House B's organisation approach especially as the organization is piloting Technology centers which would supply technology sales and assistance in the form of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Organizational Behavior concerns can be seen in Charleys Family Steak House B's case as highlighted in this area.

Uneasiness concerning social modification: There is uneasiness regarding a cultural change that would certainly take place as soon as Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with a lot of the personnel already showing discontent over this potential move. This anticipated change has developed stress and anxiety in the office which has actually been paired with the past stress and anxiety of preparing the company for a possible merging with Residence Deport.
Pest Analysis
Difficult Work Setting for Newcomers: There is lack of employees that can match the demanding atmosphere of a fast-paced organization. Not only does this result in difficulty in locating the best people, it places tension on new hires as can not hold up against the rate as well as stress that the organization anticipates them to bear.

Twin Coverage Lines: Newbies locate this business society cumbersome and also tough to handle particularly as dotted line partnerships are suggested to be weak as a whole as well as objective setup and also efficiency analysis is still done by the solid line manager. This means that newcomers can shed clarity concerning their particular duties and purposes specifically as dotted line coverage does not maintain them in straight communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had actually been guessed that the last would take Krasnow's setting came as a blow to her morale. Lewis might have been capable and also proper for the task but the reality that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Work Insecurity: Anxiety and also instability can be identified as two major problems that Lewis would certainly be dealing with specifically as the merger has actually currently be cancelled and also two elderly execs of the advertising department would certainly be leaving. The whole responsibility of the division would certainly be falling on Lewis's shoulders who would not just be in charge of brining concerning a social change yet would certainly also have to verify herself in her new duty.

Incompatible Management Style of Leader: Lewis's monitoring style and its conflict with the marketing department's role can likewise be seen as an OB difficulty especially as she has been used to taking care of issues in the operations department where employees are educated to concentrate on processes and also get them. The marketing department on the other hand can be seen as a group of individuals who are made use of to being nurtured by Krasnow who concentrated extra on result than procedures.

Interdepartmental Arguments: Interdepartmental arguments in between 3 divisions, advertising and marketing, merchandizing as well as procedures specifically over the allotment of the advertising mix can be identified as another OB worry. Although the advertising and marketing department does not share the very same vision as the various other two departments concerning the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing as well as procedures divisions do not concur over the advertising and marketing mix allowance among one another either.

Fragmentation in Advertising And Marketing Division: Disintegration in between the advertising and marketing divisions can be determined as an additional OB issue which can need further focus. The reality that the advertising and marketing sections in the marketing department are disconnected is preventing both divisions from acquiring from each various other's experience and also knowledge. Assimilation of marketing with retailing and also procedures would certainly end up being more difficult if the advertising and marketing division itself is broken down which can be one more possible OB worry.

Charleys Family Steak House B Analysis

Various theories have actually been used to explain the circumstances to get additional quality about the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors think that subordinates are easy and lazy, have little ambition and also stand up to modification. The situation at Charleys Family Steak House B is not totally adhering to Concept X, it can be seen that new hires are discovering this setting rather demanding which might at some point lead to a better disposition of the management towards Theory X. Even while evaluating Lewis's monitoring design, concept X may have been appropriate in the procedures division to some level yet the Advertising and marketing division would require reliance on Theory Y in order to get the imagination as well as originality from the groups.

Tuckman's Teamwork Concept: As for Lewis's problem regarding bringing consistency between the advertising and marketing department is worried, this would at first result in clash as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, throughout the first phase of group advancement, individuals might not bond, as they are active discovering their place in the group. By integrating the advertising and marketing division's work, there might coincide initial detach which can lead to the second phase of 'storming' where the teams test one another. Nonetheless, it is only throughout the third stage or 'norming' when they would integrate to share ideas before the team can produce harmony in the 4th phase 'doing'.

Bridges' Transition Version: As per William Bridge's concept (appendix 4), individuals are fairly unpleasant with adjustment, which is apparent by the scenario at Charleys Family Steak House B The scenario can be seen as a normal course of life if is examined according to Bridge's theory where he discusses that people go through three stages of change when they experience change. 'Ending, losing and also Releasing', The Neutral Area and 'The New Starting' (Bridges, 2004). When people are presented with modification, they enter stage one and so there may be emotions like sadness, unpredictability, stress, anger, worry, denial and also disorientation.The scenario at the advertising department of Charleys Family Steak House B is similar so Lewis can get comfortable with the idea that it is not extraordinary habits. In the 2nd phase, there might be a requirement to bridge the gap between the new and old society so Lewis may have to face this challenge when Krasnow leaves. There may be reduced morale as well as reduced productivity at this stage which should not be taken as a trouble. It is throughout this stage that Lewis will certainly need to provide guidance to the department so that they can find an orientation. It can be seen just how Krasnow has currently made this change much easier by making Lewis obtain involved in the department a year prior to his actual separation. Based on Bridges' Model, phase three will cause openness to understanding, High power and also dedication as individuals will welcome the change (Bridges, 2004).
Vrio Analysis
Maslow's Demand power structure: The OB issue pertaining to insecurity at the office has been caused first of all by the change in monitoring and also second of all by the truth that the merger will certainly no longer be launched. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has reviews the significance of 'safety requires as being a reduced degree requirement of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to feel secure and out of danger' goes to the second level of requirements. Before an employee can be made to establish psychologically, he requires to have his 'Physiological 'and also 'Safety' requires satisfied. This suggests that unless the employees are made to really feel safe and secure about their existing work standing in Charleys Family Steak House B they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Charleys Family Steak House B Case Study

Implication of Analysis.

The OB analysis has considered different concepts to understand exactly how to handle the present situation handy. The adhering to 3 choices have been suggested to help Lewis deal with the organizational obstacles in the advertising department. Each of these choices has been proposed for relieving the shift needed to bring the marketing division in line with the requirements of the market and for making the social modification that would certainly follow when the present leader leaves.

Assimilation of advertising and marketing features. Separating Adverting as well as Production functions. Combination of Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis during the earlier merger days has competence in business-to-business marketing along with agency and retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to handle both marketing and advertising and marketing features.

The benefit of this method is that it will integrate both features while reducing the requirement for hiring an additional resource for marketing. Along with this, Lewis would certainly be heading the marketing division and regardless her substitute would be needed for the present duty that she is executing. The downside of this option is that exterior hiring may bring about bitterness from interior workers who might be considering the position of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and Production: Provided the affordable pressures as well as high quality work called for from the advertising and marketing company, it is suggested that Lewis ought to enable the manufacturing system to be a different feature from the marketing unit. Considering that the majority of advertising and marketing firms had these two functions as different devices, it makes even more sense to adhere to the norm.

Integration of Marketing with Operations: Considering that Lewis is currently taking care of the advertising and operations divisions all at once; it makes good sense to integrate both features because she has actually been successfully caring for both ends. The reality that both departments currently have major differences over allotment of resources suggests that this combination might have the ability to cause consistency particularly as Lewis would be heading both ends.However there are numerous downsides of this action particularly as it would certainly place excessive problem over Lewis's shoulders. The fact that Lewis needs to adjust her management style for the advertising department suggests that these two divisions would certainly be culturally diverse. Lewis might not be able to use one kind of leadership design to both divisions which might result in inadequacy in either one of the two features.


An analysis of the 3 choices shows that assimilation of advertising and marketing as well as operations would certainly not be a feasible move due to the large distinctions in between the two divisions despite the truth that presently Lewis is handling both. While separation of the production function might have been a favorable move for the advertising division, the reality that it would imply positioning a 3rd feature under Lewis's wing means this must be prevented.

Activity Plan.
Lewis will take control of the role of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Manufacturing function will certainly remain component of marketing under advertising and marketing feature.

Lewis will certainly divide herself from procedures.

An autonomous leadership design with staff member empowerment will be made use of in advertising and marketing division.

Open up door plan and also emphasis on cross departmental interaction will certainly be aimed at getting rid of discord.

Backup strategy.

If the assimilation does not work out as intended, a contingency strategy would adhere to which would divide the manufacturing function from the advertising feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising division without an SVP. In that case the production feature will definitely be separated by positioning it under an SVP manufacturing.