Colt Industries Case Study Analysis


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Colt Industries Case Study Solution

Background and Facts

Colt Industries an office products store for little and also medium sized organisations has actually recently been involved in preparing for a merging with its rival Home Deport, which has actually impacted effectiveness levels in departmentswith the senior supervisor associated with lawful problems put forth by the government Profession Payment. With the Marketing Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the current head of operations has been asked to take the role in the near future. With difficulties in the kind of a possible social modification as well as low worker spirits, the organization is in need of a total reengineering initiative at the advertising and marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising and marketing department of Colt Industries is raising uncertainty in the working environment resulting in numerous challenges for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing critical choices considering that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Compensation's intervention in the process. Offered the reality that the shop has an international presence with branches in UK, U.S.A., Canada and Germany, political consider each of these countries might be able to impact performance or critical objectives. Federal Profession Compensation's antitrust suit versus the merger used up beneficial time of the company's senior administration recommending that 'political' factors can have significant effects for an international company.

Economic Factors: Economic factors such as the development of small businesses in the global situation suggest that Colt Industries is prospering in a setting where there is possible development of businesses. Truth that shop customers are primarily looking for office products for house workplaces recommends that the market has an increasing pattern of business owners and home based organisations.

Social factors: Social trends in the economic situation show that consumers are trying to find ease as well as attractive costs. Market research shows how the customer for Colt Industries lacks understanding regarding discovering solutions which can use a combination of convenience and affordable.

Technical factors: Innovation plays a vital function in Colt Industries's company strategy particularly as the company is piloting Modern technology facilities which would certainly use innovation sales and also support in the type of memory upgrades, outer setups. (Summary of BUG in appendix 2).

OB Issues and Symptoms.

Numerous underlying Business Behavior issues can be seen in Colt Industries's case as highlighted in this area.

Concerns regarding cultural change: There is worry concerning a cultural adjustment that would certainly happen when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with a lot of the team member currently showing discontent over this potential move. This anticipated adjustment has developed stress in the workplace which has been combined with the previous stress and anxiety of preparing the firm for a possible merging with Home Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is shortage of workers that can match the demanding environment of a hectic organization. Not only does this result in trouble in finding the best individuals, it places tension on new hires as can not withstand the pace and also pressure that the organization anticipates them to bear.

Twin Coverage Lines: Beginners find this organizational culture difficult and difficult to cope with specifically as dotted line relationships are indicated to be weak in general and also objective setting as well as efficiency analysis is still done by the strong line manager. This indicates that newcomers can lose quality regarding their respective duties and goals especially as dotted line reporting does not maintain them in straight interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles despite the fact that it had been hypothesized that the last would certainly take Krasnow's placement came as a strike to her morale. Lewis may have been qualified and also ideal for the task however the truth that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Anxiety & Task Instability: Worry and instability can be recognized as two major worries that Lewis would be dealing with specifically as the merging has actually now be terminated as well as two senior executives of the advertising and marketing department would be leaving. The entire responsibility of the division would be falling on Lewis's shoulders who would not simply be in charge of brining about a cultural adjustment yet would also need to show herself in her new function.

Inappropriate Administration Design of Leader: Lewis's administration style and its incompatibility with the advertising department's function can likewise be seen as an OB obstacle specifically as she has been used to dealing with issues in the operations department where workers are instructed to focus on procedures and also get them. The advertising and marketing department on the various other hand can be seen as a team of people that are utilized to being nurtured by Krasnow who concentrated extra on outcome than procedures.

Interdepartmental Disputes: Interdepartmental disagreements in between three departments, advertising, merchandizing and procedures specifically over the appropriation of the marketing mix can be identified as another OB worry. 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 and also advertsing, the merchandizing and also procedures departments do not agree over the marketing mix allocation among one another either.

Disintegration in Advertising Division: Disintegration between the marketing and advertising departments can be recognized as another OB problem which can require further focus. The reality that the advertising and marketing areas in the advertising and marketing department are detached is preventing both divisions from obtaining from each other's experience as well as experience. Integration of advertising and marketing with retailing and also procedures would certainly come to be harder if the marketing division itself is broken down which can be an additional possible OB worry.

Colt Industries Analysis

Numerous concepts have been made use of to clarify the conditions to obtain further clarity regarding the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors think that staffs are passive and careless, have little passion and resist change. The hard version of this theory stressed browbeating, limited controls, threats and penalties. With time it creates reduced efficiency, subtle sabotage as well as competition (Offer, 2003). The circumstance at Colt Industries is not totally adhering to Theory X, it can be seen that brand-new hires are discovering this atmosphere instead difficult which may at some point lead to a greater disposition of the monitoring in the direction of Concept X. According to McGregor's supported view, which he called Concept Y, the necessary job of the administration is to prepare organizational conditions to ensure that people can achieve their very own goals best by routing their initiatives in the direction of organizational incentives. If individuals locate no contentment in their work, the administration would have little option yet to rely upon concept X as well as external control (Deal, 2003). Even while evaluating Lewis's administration design, concept X may have appropriated in the procedures department to some extent yet the Advertising and marketing department would certainly need reliance on Concept Y to get the creative thinking and also creativity from the teams.

Tuckman's Synergy Theory: As far as Lewis's issue concerning bringing consistency between the marketing and marketing division is concerned, this would originally lead to clash as talked about by Bruce Tuckman in his 'Team effort Concept'. By integrating the advertising as well as advertising division's job, there might be the exact same preliminary disconnect which could lead to the 2nd phase of 'storming' where the teams challenge one another.

When individuals are presented with modification, they enter stage one and also so there may be feelings like sadness, unpredictability, aggravation, temper, anxiety, denial and also disorientation.The situation at the marketing division of Colt Industries is similar so Lewis can get comfy with the concept that it is not extraordinary actions. It is throughout this stage that Lewis will have to give support to the division so that they can locate a feeling of direction. It can be seen exactly how Krasnow has actually already made this transition easier by making Lewis obtain included in the department a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has reviews the relevance of 'protection requires as being a reduced level need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel secure as well as out of danger' is at the 2nd degree of demands. Prior to a staff member can be made to establish mentally, he requires to have his 'Physiological 'as well as 'Safety and security' requires satisfied.

SWOT Analysis for Colt Industries Case Study

Implication of Analysis.

The OB analysis has taken a look at different theories to recognize exactly how to deal with the present circumstance handy. The adhering to 3 choices have actually been proposed to help Lewis handle the business challenges in the advertising department. Each of these options has been recommended for easing the change needed to bring the advertising department in accordance with the requirements of the market as well as for making the social modification that would certainly adhere to once the existing leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting as well as Production functions. Assimilation of Advertising And Marketing with Workflow.

Examination of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis during the earlier merger days has know-how in business-to-business advertising and marketing along with firm as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to take care of both advertising and marketing and advertising and marketing features.

The advantage of this technique is that it will integrate both features while decreasing the demand for employing an extra source for advertising. Lewis would certainly be heading the advertising division and in any type of case her replacement would certainly be required for the existing duty that she is performing. The drawback of this option is that exterior hiring may produce bitterness from interior employees who may be looking at the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and also Manufacturing: Provided the competitive pressures and high top quality work required from the advertising and marketing company, it is suggested that Lewis must enable the manufacturing device to be a different feature from the advertising unit. Considering that a lot of advertising agencies had these 2 features as separate devices, it makes even more feeling to follow the standard.

Integration of Advertising with Workflows: Since Lewis is currently caring for the marketing as well as operations divisions all at once; it makes good sense to incorporate the two features given that she has been efficiently taking care of both ends. The fact that the two departments already have major distinctions over allocation of resources suggests that this combination may be able to cause harmony specifically as Lewis would certainly be heading both ends.However there are various disadvantages of this action particularly as it would certainly place way too much burden over Lewis's shoulders. The reality that Lewis has to adapt her monitoring design for the marketing department suggests that these two departments would certainly be culturally varied. In addition to this, Lewis might not have the ability to apply one type of management style to both departments which can cause ineffectiveness in either among the two functions.


An analysis of the 3 choices shows that integration of advertising and also operations would certainly not be a possible action as a result of the huge differences between both divisions although that currently Lewis is dealing with both. While splitting up of the production feature might have been a positive step for the advertising department, the reality that it would certainly imply putting a third feature under Lewis's wing means this ought to be stayed clear of. The assimilation of the advertising department is the most effective alternative in terms of obtaining the ideal results from the division. An activity plan for this alternative is reviewed below.

Action Plan.
Lewis will certainly take control of the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Production function will certainly remain part of advertising under marketing feature.

Lewis will separate herself from operations.

A democratic leadership style with staff member empowerment will certainly be utilized in advertising and marketing division.

Open door plan as well as focus on cross department interaction will certainly be aimed at removing disharmony.

Backup strategy.

If the assimilation does not work out as planned, a backup strategy would certainly adhere to which would certainly separate the manufacturing function from the advertising and marketing 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 marketing division without an SVP. In that case the manufacturing feature will absolutely be separated by positioning it under an SVP manufacturing.