Compass Maritime Services Llc Valuing Ships Case Study Solution


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Compass Maritime Services Llc Valuing Ships Case Study Help

Background and Facts

Compass Maritime Services Llc Valuing Ships a workplace materials store for tiny as well as moderate sized businesses has actually recently been involved in preparing for a merger with its competitor House Deport, which has actually affected effectiveness levels in departmentswith the elderly manager associated with legal difficulties put forth by the federal Trade Compensation. With the Advertising Head advancing the information of his departure from the company in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the duty in the future. With challenges in the form of a potential cultural modification as well as reduced staff member spirits, the organization needs a full reengineering effort at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible social modification at the advertising department of Compass Maritime Services Llc Valuing Ships is boosting unpredictability in the workplace causing numerous 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 role in impacting tactical choices given that Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Profession Compensation's intervention while doing so. Offered the truth that the shop has a global presence with branches in UK, USA, Canada and Germany, political consider each of these nations might be able to influence efficiency or calculated goals. Federal Profession Commission's antitrust suit versus the merging occupied useful time of the company's elderly management recommending that 'political' factors can have severe implications for a worldwide business.

Economic Factors: Economic factors such as the appearance of small companies in the global scenario suggest that Compass Maritime Services Llc Valuing Ships is thriving in a setting where there is prospective growth of businesses. Reality that shop clients are mostly looking for workplace supplies for residence workplaces recommends that the market has a climbing trend of entrepreneurs and also home based companies.

Social factors: Social fads in the economic climate reveal that consumers are looking for ease in addition to attractive prices. Market research shows how the client for Compass Maritime Services Llc Valuing Ships lacks awareness regarding finding solutions which can use a mix of convenience as well as inexpensive.

Technical factors: Innovation plays an important duty in Compass Maritime Services Llc Valuing Ships's business strategy especially as the organization is piloting Modern technology centers which would certainly use technology sales and also assistance in the kind of memory upgrades, peripheral installments. (Summary of INSECT in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Business Behavior problems can be seen in Compass Maritime Services Llc Valuing Ships's case as highlighted in this section.

Apprehensions about social change: There is concern about a cultural modification that would certainly occur when Todd Krasnow leaves from his setting as the Exec Vice President of Advertising with most of the personnel currently showing unhappiness over this potential relocation. This anticipated change has actually produced stress in the work environment which has been combined with the past stress of preparing the company for a possible merging with Home Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is lack of employees that can match the stressful environment of a fast-paced organization. Not just does this cause trouble in finding the right people, it puts stress on brand-new hires as can not withstand the pace and also stress that the company expects them to bear.

Double Reporting Lines: Novices find this business culture cumbersome and difficult to deal with especially as dotted line partnerships are meant to be weaker in general and unbiased setup and performance examination is still done by the solid line manager. This indicates that beginners could shed clarity concerning their corresponding roles and also goals particularly as dotted line coverage does not maintain them in straight interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though 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 capable and also suitable for the work yet the fact that Kransnow's separation would make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Concern & Work Instability: Fear and also insecurity can be identified as 2 significant worries that Lewis would be handling especially as the merging has currently be terminated and two elderly execs of the advertising and marketing department would certainly be leaving. The whole obligation of the division would certainly be dropping on Lewis's shoulders who would not simply be in charge of brining about a cultural change yet would certainly also need to verify herself in her brand-new function.

Inappropriate Management Design of Leader: Lewis's monitoring style and its incompatibility with the advertising and marketing department's role can additionally be viewed as an OB challenge especially as she has actually been made use of to taking care of problems in the procedures division where workers are educated to concentrate on processes and obtain them right. The advertising department on the other hand can be viewed as a group of people that are utilized to being supported by Krasnow that focused a lot more on output than processes.

Interdepartmental Disagreements: Interdepartmental disagreements between three departments, advertising and marketing, merchandizing and operations specifically over the allotment of the advertising mix can be determined as one more OB issue. Although the advertising and marketing department does not share the same vision as the various other 2 departments pertaining to the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and also operations divisions do not agree over the advertising and marketing mix appropriation amongst each other either.

Fragmentation in Marketing Department: Disintegration in between the advertising and marketing departments can be recognized as an additional OB concern which can need further interest. The fact that the advertising and marketing areas in the advertising department are disconnected is preventing both divisions from getting from each various other's experience as well as proficiency. Combination of advertising and marketing with retailing and also procedures would end up being harder if the marketing division itself is degenerated which can be an additional potential OB problem.

Compass Maritime Services Llc Valuing Ships Analysis

Different theories have actually been made use of to explain the circumstances to obtain additional clarity concerning the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of managers think that staffs are easy as well as lazy, have little aspiration as well as stand up to adjustment. The difficult version of this concept stressed coercion, limited controls, hazards as well as punishments. With time it generates reduced efficiency, subtle sabotage and also competition (Offer, 2003). The circumstance at Compass Maritime Services Llc Valuing Ships is not completely adhering to Theory X, it can be seen that brand-new hires are locating this atmosphere rather stressful which may at some point lead to a better disposition of the monitoring towards Concept X. According to McGregor's promoted sight, which he called Concept Y, the important job of the administration is to set up organizational problems to ensure that people can accomplish their very own objectives best by routing their initiatives in the direction of organizational incentives. If people discover no contentment in their work, the monitoring would have little selection however to rely on theory X and exterior control (Offer, 2003). Even while assessing Lewis's monitoring design, concept X may have appropriated in the operations department somewhat yet the Advertising and marketing department would need reliance on Concept Y so as to get the imagination as well as creativity from the teams.

Tuckman's Teamwork Theory: As much as Lewis's worry concerning bringing harmony in between the advertising and marketing and also advertising division is worried, this would initially lead to clash as discussed by Bruce Tuckman in his 'Synergy Concept'. By integrating the advertising and also advertising department's job, there may be the exact same preliminary separate which could lead to the 2nd stage of 'storming' where the groups test one another.

Bridges' Transition Design: Based On William Bridge's theory (appendix 4), individuals are quite uneasy with adjustment, which is evident by the situation at Compass Maritime Services Llc Valuing Ships The situation can be seen as a regular course of life if is studied according to Bridge's concept where he describes that individuals go through three stages of change when they experience modification. 'End, losing as well as Releasing', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people are presented with modification, they go into stage one and so there might be emotions like despair, unpredictability, stress, anger, fear, rejection and disorientation.The scenario at the advertising and marketing division of Compass Maritime Services Llc Valuing Ships is similar so Lewis can get comfortable with the idea that it is not remarkable actions. In the second phase, there may be a need to connect the void in between the brand-new and also old society so Lewis may need to encounter this challenge once Krasnow leaves. There may be low spirits and also low performance at this stage which ought to not be taken as a setback. It is during this stage that Lewis will certainly have to offer guidance to the department to make sure that they can discover a sense of direction. It can be seen how Krasnow has currently made this transition easier by making Lewis get associated with the department a year prior to his actual departure. As per Bridges' Model, stage three will certainly produce openness to knowing, High energy and also dedication as people will certainly embrace the change (Bridges, 2004).
Vrio Analysis
Maslow's Demand hierarchy: The OB concern related to instability at the workplace has been set off to start with by the modification in monitoring and also secondly by the reality that the merging will no more be started. Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has discusses the relevance of 'safety requires as being a reduced degree requirement of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the requirement to really feel safe and also unharmed' is at the 2nd degree of requirements. Prior to a staff member can be made to develop mentally, he needs to have his 'Physical 'as well as 'Security' requires satisfied. This indicates that unless the workers are made to really feel safe and secure about their present employment status in Compass Maritime Services Llc Valuing Ships they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Compass Maritime Services Llc Valuing Ships Case Study

Effects of Analysis.

The OB analysis has looked at different concepts to comprehend how to cope with the present situation available. The following 3 options have been recommended to aid Lewis manage the organizational challenges in the advertising department. Each of these choices has actually been recommended for easing the change needed to bring the marketing department in line with the demands of the marketplace and also for making the cultural change that would certainly follow once the existing leader leaves.

Integration of advertising and marketing functions. Dividing Adverting as well as Manufacturing functions. Integration of Advertising with Workflow.

Analysis of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merging days has proficiency in business-to-business advertising along with company and retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to deal with both advertising and marketing and marketing functions.

The benefit of this method is that it will certainly incorporate both functions while minimizing the demand for working with an extra source for marketing. Lewis would certainly be heading the advertising department and also in any kind of case her replacement would be needed for the present function that she is performing. The drawback of this alternative is that outside hiring might cause animosity from inner employees that may be eying the setting of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Production: Offered the affordable pressures and also high top quality job required from the advertising and marketing agency, it is suggested that Lewis needs to permit the manufacturing unit to be a different function from the marketing device. Considering that most advertising firms had these two functions as different units, it makes more feeling to adhere to the standard.

Assimilation of Marketing with Workflows: Because Lewis is already dealing with the advertising and operations departments at the same time; it makes good sense to integrate the two functions because she has actually been successfully dealing with both ends. The reality that the two divisions currently have major differences over allowance of resources recommends that this integration may be able to bring about consistency especially as Lewis would be heading both ends.However there are various drawbacks of this move especially as it would put excessive worry over Lewis's shoulders. The truth that Lewis needs to adjust her administration style for the advertising division recommends that these two departments would certainly be culturally diverse. In addition to this, Lewis might not have the ability to apply one kind of management style to both departments which could lead to ineffectiveness in either one of the two functions.


An assessment of the three choices indicates that assimilation of advertising and marketing and procedures would not be a practical step as a result of the substantial distinctions in between the two divisions although that presently Lewis is managing both. While separation of the manufacturing feature might have been a beneficial relocation for the marketing department, the truth that it would suggest putting a 3rd function under Lewis's wing means this ought to be avoided. The assimilation of the advertising department is the best choice in terms of obtaining the optimal arise from the department. An action prepare for this alternative is reviewed listed below.

Action Strategy.
Lewis will take over the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Production feature will stay part of advertising under advertising feature.

Lewis will certainly divide herself from procedures.

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

Open door policy and also emphasis on cross departmental communication will be focused on eliminating discord.

Contingency plan.

If the integration does not work out as planned, a backup strategy would adhere to which would certainly separate the production feature from the marketing function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising and marketing department without an SVP. Because case the manufacturing function will absolutely be divided by placing it under an SVP manufacturing.