Clarks At A Crossroads C Case Study Solution


Home >> Harvard >> Clarks At A Crossroads C >>

Clarks At A Crossroads C Case Study Solution

Background and Facts

Clarks At A Crossroads C an office supplies seller for tiny and moderate sized companies has actually just recently been associated with preparing for a merger with its competitor House Deport, which has impacted performance levels in departmentswith the senior supervisor associated with legal difficulties put forth by the federal Profession Commission. With the Advertising and marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the duty in the near future. With obstacles in the kind of a potential social modification and reduced worker morale, the organization requires a full reengineering effort at the marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective cultural change at the advertising and marketing department of Clarks At A Crossroads C is boosting uncertainty in the workplace leading to different obstacles for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in influencing tactical choices because Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Trade Commission's intervention in the process. Given the truth that the store has a worldwide existence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations might be able to impact efficiency or strategic objectives. Federal Trade Payment's antitrust suit versus the merging occupied valuable time of the company's senior monitoring recommending that 'political' factors can have severe implications for a worldwide service.

Economic Factors: Economic factors such as the development of small companies in the global scenario suggest that Clarks At A Crossroads C is thriving in an environment where there is possible growth of organisations. In addition to this, truth that shop consumers are mostly seeking workplace supplies for office suggests that the market has an increasing fad of entrepreneurs and also home businesses.

Social factors: Social patterns in the economy reveal that clients are seeking ease along with eye-catching rates. Market research shows how the customer for Clarks At A Crossroads C lacks understanding concerning locating solutions which can use a combination of benefit and low costs.

Technical factors: Technology plays an important function in Clarks At A Crossroads C's service approach specifically as the organization is piloting Modern technology facilities which would certainly provide modern technology sales as well as support in the form of memory upgrades, outer installments. (Summary of PARASITE in appendix 2).

OB Issues as well as Effects.

Numerous underlying Business Habits problems can be seen in Clarks At A Crossroads C's case as highlighted in this section.

Concerns about cultural adjustment: There is apprehension about a cultural modification that would happen once Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Marketing with the majority of the staff members already revealing unhappiness over this potential relocation. This predicted adjustment has actually produced tension in the workplace which has actually been paired with the previous stress of preparing the company for a possible merger with Home Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is scarcity of personnel that can match the stressful atmosphere of a hectic organization. Not just does this result in difficulty in discovering the right individuals, it puts anxiety on brand-new hires as can not withstand the speed and also stress that the organization expects them to birth.

Twin Reporting Lines: Newbies discover this business society cumbersome and also hard to handle especially as dotted line partnerships are implied to be weak in general as well as unbiased setting and also performance assessment is still done by the solid line manager. This implies that newcomers could lose clarity regarding their respective duties as well as purposes specifically as populated line reporting does not maintain them in straight interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had been guessed that the latter would certainly take Krasnow's placement came as a blow to her spirits. Lewis may have been qualified as well as suitable for the work however the reality that Kransnow's separation would make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Fear & Task Instability: Worry as well as insecurity can be identified as two major worries that Lewis would be handling particularly as the merging has actually now be terminated and also two senior executives of the advertising department would certainly be leaving. The whole obligation of the department would be falling on Lewis's shoulders that would certainly not just be in charge of brining about a cultural modification yet would certainly also need to prove herself in her brand-new duty.

Inappropriate Monitoring Style of Leader: Lewis's monitoring design and its incompatibility with the advertising division's function can likewise be seen as an OB difficulty specifically as she has actually been utilized to dealing with issues in the operations department where employees are educated to focus on processes as well as obtain them right. The advertising department on the other hand can be seen as a team of people who are used to being supported by Krasnow that concentrated much more on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental differences in between 3 departments, advertising and marketing, merchandizing as well as procedures specifically over the allocation of the advertising and marketing mix can be identified as another OB problem. The marketing department does not share the very same vision as the various other two departments regarding the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and operations divisions do not concur over the advertising and marketing mix allotment amongst one another either.

Disintegration in Marketing Department: Disintegration between the advertising and marketing departments can be identified as another OB concern which can need more attention. The fact that the advertising and marketing areas in the advertising and marketing division are disconnected is preventing both divisions from getting from each other's experience and competence. Assimilation of marketing with retailing and also operations would come to be harder if the advertising division itself is disintegrated which can be an additional potential OB issue.

Clarks At A Crossroads C Analysis

Numerous concepts have actually been used to describe the conditions to get more clearness concerning the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers believe that subordinates are easy as well as careless, have little passion and stand up to change. The tough variation of this theory stressed threat, limited controls, risks as well as penalties. Gradually it creates low efficiency, subtle sabotage and also rivalry (Bargain, 2003). Although the situation at Clarks At A Crossroads C is not completely complying with Theory X, it can be seen that brand-new hires are locating this atmosphere instead stressful which might at some point result in a higher inclination of the management in the direction of Theory X. As per McGregor's advocated view, which he called Concept Y, the crucial job of the administration is to organize organizational problems to make sure that individuals can attain their very own objectives best by guiding their efforts in the direction of organizational incentives. If people discover no contentment in their job, the management would have little option yet to rely upon concept X and also exterior control (Offer, 2003). Even while analyzing Lewis's administration style, theory X might have appropriated in the procedures division somewhat however the Advertising department would certainly need dependence on Concept Y so as to get the creative thinking as well as originality from the teams.

Tuckman's Teamwork Concept: As far as Lewis's worry concerning bringing harmony between the marketing and advertising department is worried, this would initially result in contrast as talked about by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, during the first stage of team development, people may not bond, as they are busy finding their area in the team. By incorporating the marketing and advertising department's work, there may be the same first disconnect which can bring about the 2nd phase of 'storming' where the teams test one another. It is only throughout the third phase or 'norming' when they would come together to share concepts before the team can bring around harmony in the 4th phase 'carrying out'.

When individuals are offered with change, they enter stage one and also so there might be feelings like despair, unpredictability, disappointment, anger, anxiety, denial and disorientation.The scenario at the advertising and marketing department of Clarks At A Crossroads C is comparable so Lewis can obtain comfortable with the suggestion that it is not remarkable actions. It is throughout this phase that Lewis will certainly have to give assistance to the department so that they can find a feeling of direction. It can be seen how Krasnow has currently made this transition easier by making Lewis obtain included in the division a year before his real separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has reviews the importance of 'safety requires as being a lower level demand of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel safe and out of danger' is at the 2nd degree of requirements. Before an employee can be made to establish psychologically, he needs to have his 'Physiological 'as well as 'Safety and security' needs satisfied.

SWOT Analysis for Clarks At A Crossroads C Case Study

Ramification of Analysis.

The OB analysis has taken a look at various concepts to recognize exactly how to manage the present situation handy. The complying with three choices have been recommended to help Lewis handle the business difficulties in the advertising division. Each of these choices has been recommended for reducing the shift required to bring the advertising department in line with the demands of the market and also for making the social adjustment that would adhere to as soon as the current leader leaves.

Assimilation of advertising and marketing features. Separating Adverting and also Production features. Assimilation of Advertising with Operations.

Evaluation of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merger days has competence in business-to-business advertising and marketing along with firm and retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to manage both advertising and marketing as well as advertising and marketing functions.

The advantage of this technique is that it will certainly incorporate the two features while reducing the demand for employing an additional source for advertising and marketing. In addition to this, Lewis would certainly be heading the advertising department and also all the same her substitute would be required for the current function that she is doing. The downside of this choice is that exterior hiring might bring about bitterness from interior personnel who may be looking at the placement of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting as well as Manufacturing: Given the competitive stress and also premium quality job needed from the advertising agency, it is suggested that Lewis should permit the production unit to be a separate feature from the advertising and marketing unit. Because a lot of advertising agencies had these two features as separate units, it makes even more feeling to adhere to the norm. Both functions may be able to concentrate on their core activates extra effectively. Nevertheless, the drawback of this strategy would certainly be that additional prices would certainly have to be borne for establishing separate production features. A manufacturing head might have to be employed which could raise expenses for the company.

Combination of Advertising And Marketing with Procedures: Considering that Lewis is currently taking care of the advertising and procedures divisions all at once; it makes good sense to incorporate the two features since she has been efficiently caring for both ends. The truth that both departments currently have major differences over allocation of sources recommends that this combination may be able to cause consistency specifically as Lewis would certainly be heading both ends.However there are different disadvantages of this move particularly as it would certainly place too much problem over Lewis's shoulders. The fact that Lewis has to adjust her monitoring design for the advertising division suggests that these two divisions would be culturally diverse. Lewis may not be able to apply one kind of management style to both divisions which can result in inefficiency in either one of the two features.


An assessment of the three options indicates that assimilation of advertising as well as procedures would certainly not be a practical action due to the huge distinctions in between the 2 divisions regardless of the truth that currently Lewis is dealing with both. While separation of the production feature might have been a beneficial relocation for the advertising department, the truth that it would certainly suggest putting a 3rd feature under Lewis's wing means this should be prevented.

Action Strategy.
Lewis will certainly take over the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

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

Lewis will separate herself from operations.

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

Open door plan and emphasis on cross departmental interaction will be targeted at removing discord.

Backup strategy.

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