Colorscope Inc Abridged Case Study Analysis


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Colorscope Inc Abridged Case Study Analysis

Background and Facts

Colorscope Inc Abridged a workplace products store for small and also moderate sized companies has actually just recently been involved in preparing for a merging with its competitor Home Deport, which has impacted effectiveness levels in departmentswith the senior supervisor involved in lawful difficulties put forth by the federal Profession Payment. With the Advertising Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the role in the near future. With difficulties in the type of a possible cultural change as well as low employee spirits, the company wants a full reengineering effort at the advertising and marketing department.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the marketing division of Colorscope Inc Abridged is enhancing unpredictability in the working environment causing numerous obstacles for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing critical choices because Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Profession Payment's intervention at the same time. Offered the reality that the shop has a worldwide existence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries might have the ability to impact efficiency or strategic goals. Federal Profession Payment's antitrust match versus the merging occupied valuable time of the organization's elderly administration suggesting that 'political' factors can have serious effects for a worldwide business.

Economic Factors: Financial factors such as the development of local business in the worldwide situation recommend that Colorscope Inc Abridged is prospering in an atmosphere where there is possible development of organisations. Truth that shop clients are primarily looking for workplace supplies for house offices suggests that the market has a climbing pattern of business owners and residence based services.

Social factors: Social trends in the economic situation show that customers are looking for convenience as well as eye-catching prices. Market research shows how the consumer for Colorscope Inc Abridged does not have awareness about discovering solutions which can use a mix of benefit as well as inexpensive.

Technological factors: Technology plays an essential function in Colorscope Inc Abridged's company technique particularly as the organization is piloting Innovation facilities which would offer modern technology sales as well as assistance in the form of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues and Manifestations.

Numerous underlying Organizational Behavior problems can be seen in Colorscope Inc Abridged's case as highlighted in this area.

Concerns regarding social modification: There is worry concerning a cultural modification that would take place as soon as Todd Krasnow leaves from his position as the Exec Vice President of Marketing with most of the employee currently revealing discontent over this prospective move. This expected modification has produced stress in the workplace which has actually been combined with the past anxiety of preparing the company for a prospective merger with Home Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is lack of employees that can match the demanding setting of a fast-paced company. Not only does this lead to problem in locating the best people, it puts stress on brand-new hires as can not stand up to the speed and stress that the organization anticipates them to bear.

Twin Reporting Lines: Newcomers find this organizational culture cumbersome and also hard to deal with specifically as dotted line connections are meant to be weaker in general as well as objective setting and performance analysis is still done by the solid line manager. This means that newbies could shed clarity concerning their particular functions as well as objectives particularly as dotted line reporting does not keep them in direct interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles although it had actually been guessed that the latter would certainly take Krasnow's setting came as an impact to her spirits. Lewis may have been qualified as well as suitable for the task but the fact that Kransnow's separation would make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Task Instability: Anxiety and also instability can be determined as two significant problems that Lewis would certainly be managing specifically as the merger has currently be terminated and also two senior execs of the advertising and marketing division would be leaving. The entire responsibility of the department would certainly be dropping on Lewis's shoulders that would not just be in charge of brining about a social adjustment but would also have to confirm herself in her new duty.

Incompatible Monitoring Style of Leader: Lewis's management style as well as its conflict with the advertising and marketing department's duty can also be viewed as an OB obstacle specifically as she has actually been utilized to handling concerns in the procedures division where personnel are instructed to focus on procedures and also get them right. The marketing division on the various other hand can be seen as a team of individuals who are used to being nurtured by Krasnow who concentrated a lot more on output than procedures.

Interdepartmental Disputes: Interdepartmental disputes between 3 departments, advertising and marketing, merchandizing and also operations respectively over the appropriation of the advertising and marketing mix can be recognized as another OB worry. The advertising division does not share the exact same vision as the other two divisions regarding the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and operations divisions do not agree over the marketing mix allowance among one another either.

Fragmentation in Advertising Department: Disintegration in between the advertising and marketing divisions can be determined as an additional OB problem which could need additional interest. The reality that the advertising and marketing sections in the marketing division are detached is stopping both divisions from gaining from each other's experience as well as proficiency. Assimilation of marketing with retailing as well as operations would certainly come to be more difficult if the marketing division itself is disintegrated which can be one more possible OB issue.

Colorscope Inc Abridged Analysis

Different theories have actually been used to clarify the circumstances to obtain more clearness about the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that juniors are passive and lazy, have little aspiration and stand up to adjustment. The circumstance at Colorscope Inc Abridged is not entirely complying with Concept X, it can be seen that brand-new hires are locating this environment rather stressful which might ultimately lead to a greater disposition of the administration in the direction of Concept X. Even while evaluating Lewis's management design, concept X may have been suitable in the operations division to some level yet the Advertising division would require reliance on Theory Y in order to get the imagination and creativity from the teams.

Tuckman's Teamwork Theory: As for Lewis's worry about bringing consistency in between the marketing and advertising department is worried, this would at first cause conflict as gone over by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, during the first phase of group advancement, people may not bond, as they are active locating their area in the group. By integrating the advertising and marketing division's job, there might be the same preliminary disconnect which might bring about the 2nd stage of 'storming' where the teams challenge each other. It is only throughout the third phase or 'norming' when they would come together to share ideas prior to the team can bring around harmony in the 4th stage 'executing'.

Bridges' Shift Design: According To William Bridge's theory (appendix 4), individuals are quite uncomfortable with modification, which is apparent by the circumstance at Colorscope Inc Abridged The scenario can be seen as a normal course of life if is studied based on Bridge's theory where he clarifies that individuals undergo three phases of transition when they experience adjustment. 'End, shedding as well as Releasing', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When individuals exist with change, they go into stage one and so there may be feelings like sadness, unpredictability, frustration, rage, concern, rejection and disorientation.The scenario at the marketing division of Colorscope Inc Abridged is similar so Lewis can get comfortable with the suggestion that it is not extraordinary actions. In the 2nd stage, there might be a need to connect the void between the new and also old culture so Lewis might need to face this ordeal when Krasnow leaves. There may be low spirits as well as low efficiency at this phase which should not be taken as a problem. It is throughout this phase that Lewis will certainly need to give support to the department so that they can find an orientation. It can be seen just how Krasnow has actually already made this change easier by making Lewis obtain associated with the division a year prior to his actual separation. According to Bridges' Design, stage 3 will certainly cause visibility to knowing, High power and commitment as individuals will embrace the change (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue related to insecurity at the work environment has been set off to start with by the change in monitoring and also second of all by the fact that the merger will certainly no longer be started. Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has goes over the importance of 'safety needs as being a reduced degree requirement of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the need to feel safe and out of danger' goes to the second level of demands. Before a worker can be made to create mentally, he needs to have his 'Physical 'and also 'Security' requires fulfilled. This indicates that unless the personnel are made to really feel secure about their existing work standing in Colorscope Inc Abridged they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Colorscope Inc Abridged Case Study

Implication of Analysis.

The OB analysis has checked out various theories to recognize just how to cope with the present circumstance available. The adhering to 3 alternatives have been proposed to aid Lewis deal with the organizational difficulties in the advertising department. Each of these alternatives has been proposed for reducing the transition required to bring the marketing department according to the needs of the market as well as for making the social adjustment that would certainly comply with as soon as the existing leader leaves.

Integration of marketing and advertising features. Dividing Adverting and also Manufacturing functions. Assimilation of Marketing with Operations.

Examination of Alternatives.

Combination of Marketing & Advertising Functions: The in-house marketing company of Colorscope Inc Abridged is already stamina for the organization in terms of conserving up on overheads related to advertising and marketing and promo. Considering that no brand-new recruitment has actually been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the advertising and marketing function, this is a beneficial possibility for incorporating the marketing and advertising features. Judith Shapiro that has earlier been talked to by Lewis during the earlier merging days has know-how in business-to-business advertising and marketing in addition to firm and also retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to handle both marketing and advertising features.

The advantage of this strategy is that it will integrate the two features while reducing the demand for working with an additional source for advertising and marketing. Lewis would be heading the advertising department and also in any type of case her substitute would be needed for the present function that she is executing. The negative aspect of this option is that outside hiring may cause bitterness from internal personnel that might be considering the placement of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and also Production: Given the competitive stress as well as excellent quality work required from the ad agency, it is suggested that Lewis should allow the production device to be a separate feature from the advertising and marketing system. Considering that a lot of ad agency had these two functions as different units, it makes even more feeling to adhere to the norm. Both functions may be able to concentrate on their core turns on much more successfully. The negative aspect of this method would be that extra prices would have to be birthed for establishing up separate production functions. A manufacturing head may have to be employed which can increase overheads for the organization.

Assimilation of Advertising And Marketing with Operations: Because Lewis is already dealing with the advertising and marketing and procedures divisions simultaneously; it makes good sense to incorporate the two features because she has actually been efficiently looking after both ends. The reality that the two divisions already have significant distinctions over allocation of resources recommends that this integration may be able to produce consistency specifically as Lewis would be heading both ends.However there are different disadvantages of this relocation especially as it would place way too much concern over Lewis's shoulders. The reality that Lewis has to adjust her administration design for the advertising and marketing department recommends that these 2 divisions would be culturally diverse. Lewis may not be able to use one type of management design to both divisions which can result in inefficiency in either one of the two features.


An assessment of the 3 alternatives indicates that integration of marketing and procedures would certainly not be a viable action because of the large distinctions between the two divisions although that currently Lewis is taking care of both. While splitting up of the manufacturing feature might have been a beneficial relocation for the marketing department, the fact that it would certainly mean positioning a third feature under Lewis's wing implies this must be avoided as well. The integration of the marketing department is the best choice in regards to obtaining the ideal results from the division. An activity plan for this option is gone over below.

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

Marketing and advertising functions would be merged.

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

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

Lewis will certainly divide herself from operations.

An autonomous management design with worker empowerment will certainly be used in advertising department.

Open door policy and also focus on cross department interaction will be aimed at removing discord.

Contingency strategy.

If the integration does not exercise as intended, a backup plan would certainly comply with which would certainly separate the production feature from the advertising and marketing function to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the production function will definitely be separated by placing it under an SVP production.