Menu

Compusa Case Study Help

CASE SOLUTION

Home >> Harvard >> Compusa >>

Compusa Case Study Solution

Background and Facts

Compusa a workplace materials retailer for tiny and medium sized services has lately been involved in preparing for a merging with its competitor House Deport, which has actually affected performance levels in departmentswith the senior supervisor associated with legal problems put forth by the government Trade Payment. With the Marketing Head advancing the news of his departure from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the role in the near future. With difficulties in the kind of a potential cultural change and also low employee spirits, the organization requires a full reengineering initiative at the advertising division.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective cultural adjustment at the marketing division of Compusa is increasing uncertainty in the working environment leading to various challenges for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing critical choices since Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Profession Commission's intervention in the process. Given the reality that the shop has a worldwide existence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations may have the ability to affect efficiency or strategic objectives. Federal Trade Compensation's antitrust suit against the merger occupied important time of the organization's elderly administration recommending that 'political' factors can have serious effects for a global organisation.

Economic Factors: Financial factors such as the introduction of local business in the global scenario recommend that Compusa is growing in a setting where there is possible development of organisations. Fact that shop customers are primarily looking for office supplies for home workplaces recommends that the market has a climbing pattern of entrepreneurs and house based businesses.

Social factors: Social trends in the economy show that clients are looking for ease as well as appealing rates. Market research demonstrates how the customer for Compusa lacks awareness regarding discovering options which can offer a mix of convenience and affordable.

Technological factors: Modern technology plays a crucial function in Compusa's service technique especially as the company is piloting Modern technology facilities which would certainly provide technology sales and support in the form of memory upgrades, outer setups. (Summary of PARASITE in appendix 2).

OB Issues and Symptoms.

A number of underlying Organizational Actions concerns can be seen in Compusa's case as highlighted in this area.

Concerns concerning social change: There is concern about a social adjustment that would certainly take place as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising with a lot of the employee already revealing discontent over this prospective action. This expected change has developed stress and anxiety in the workplace which has actually been paired with the previous stress of preparing the firm for a prospective merger with House Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is shortage of employees that can match the stressful atmosphere of a hectic company. Not only does this lead to trouble in discovering the appropriate people, it places stress on new hires as can not hold up against the rate and stress that the company expects them to birth.

Double Reporting Lines: Beginners find this organizational culture difficult and tough to handle specifically as dotted line relationships are indicated to be weaker generally and also unbiased setting and performance examination is still done by the strong line supervisor. This suggests that novices could lose clearness about their particular functions and also objectives specifically as dotted line coverage does not maintain them in straight communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had been hypothesized that the latter would take Krasnow's position came as a strike to her spirits. Lewis may have been qualified and ideal for the work yet the reality that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Concern & Job Instability: Fear and also instability can be recognized as two significant worries that Lewis would be managing particularly as the merger has currently be terminated and two senior executives of the advertising department would be leaving. The whole responsibility of the department would be dropping on Lewis's shoulders who would not just supervise of brining concerning a cultural adjustment however would also have to prove herself in her brand-new role.

Inappropriate Administration Design of Leader: Lewis's management design and its conflict with the advertising and marketing department's role can also be seen as an OB obstacle specifically as she has actually been used to dealing with issues in the procedures division where personnel are taught to concentrate on processes and also get them. The advertising department on the other hand can be viewed as a team of people who are utilized to being supported by Krasnow that concentrated a lot more on result than procedures.

Interdepartmental Disputes: Interdepartmental disputes in between 3 departments, marketing, merchandizing and procedures specifically over the allotment of the marketing mix can be recognized as another OB issue. The advertising and marketing division does not share the very same vision as the other two departments pertaining to the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and also operations departments do not concur over the marketing mix allocation among one another either.

Disintegration in Advertising Division: Fragmentation in between the marketing and advertising departments can be determined as another OB issue which can need more attention. The truth that the marketing and advertising areas in the advertising department are disconnected is preventing both divisions from gaining from each various other's experience as well as expertise. Integration of marketing with merchandising and operations would become harder if the advertising department itself is disintegrated which can be an additional possible OB problem.

Compusa Analysis

Numerous concepts have been made use of to clarify the situations to get more clearness concerning the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors believe that staffs are easy as well as lazy, have little aspiration as well as resist adjustment. The tough version of this theory emphasized browbeating, limited controls, hazards as well as penalties. In time it produces low productivity, refined sabotage as well as rivalry (Offer, 2003). Although the situation at Compusa is not completely following Theory X, it can be seen that brand-new hires are discovering this atmosphere instead difficult which may ultimately bring about a greater disposition of the administration towards Concept X. According to McGregor's supported sight, which he called Theory Y, the essential task of the management is to arrange organizational problems to ensure that people can attain their own goals best by routing their initiatives towards organizational rewards. If individuals discover no fulfillment in their job, the management would certainly have little option however to rely upon theory X as well as exterior control (Offer, 2003). Even while evaluating Lewis's management style, theory X might have been suitable in the procedures department to some extent however the Marketing division would certainly require reliance on Theory Y in order to get the creative thinking and creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's concern regarding bringing consistency between the advertising and advertising division is concerned, this would initially lead to conflict as discussed by Bruce Tuckman in his 'Synergy Theory'. By integrating the marketing and advertising and marketing department's work, there might be the very same first separate which might lead to the second stage of 'storming' where the teams challenge one another.

When individuals are presented with modification, they get in phase one and so there may be feelings like despair, uncertainty, stress, temper, fear, denial and disorientation.The situation at the marketing division of Compusa is similar so Lewis can obtain comfy with the idea that it is not amazing behavior. It is throughout this phase that Lewis will certainly have to offer advice to the department so that they can locate a sense of direction. It can be seen just how Krasnow has already made this change much easier by making Lewis obtain involved in the division a year before his real separation.
Vrio Analysis
Maslow's Demand hierarchy: The OB issue related to instability at the workplace has been set off to start with by the change in monitoring as well as secondly by the truth that the merging will no longer be started. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has reviews the significance of 'safety needs as being a lower degree need of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel safe and secure and also unharmed' goes to the second level of requirements. Before a worker can be made to develop emotionally, he requires to have his 'Physical 'and 'Safety' requires satisfied. This indicates that unless the personnel are made to feel safe about their existing work status in Compusa they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Compusa Case Study



Ramification of Analysis.

The OB analysis has actually checked out various concepts to comprehend how to cope with the existing situation handy. The following three choices have been recommended to help Lewis manage the organizational difficulties in the advertising department. Each of these options has been proposed for alleviating the change needed to bring the advertising division in accordance with the requirements of the market and also for making the social change that would follow as soon as the current leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and Production functions. Assimilation of Advertising And Marketing with Procedures.

Analysis of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis during the earlier merger days has expertise in business-to-business advertising along with company and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to handle both marketing and advertising and marketing features.

The benefit of this approach is that it will certainly incorporate the two features while minimizing the need for hiring an extra resource for advertising. Along with this, Lewis would certainly be heading the advertising department as well as in any case her substitute would certainly be required for the existing function that she is carrying out. The downside of this alternative is that exterior hiring may cause resentment from internal personnel who may be eying the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Production: Provided the competitive pressures as well as high top quality work needed from the marketing company, it is advised that Lewis ought to permit the manufacturing unit to be a separate function from the marketing unit. Because most advertising and marketing agencies had these 2 features as separate units, it makes even more feeling to adhere to the standard.

Assimilation of Marketing with Operations: Considering that Lewis is currently taking treatment of the advertising and marketing and operations departments at the same time; it makes feeling to integrate the 2 functions because she has actually been efficiently taking care of both ends. The truth that Lewis has to adjust her monitoring style for the marketing division recommends that these two divisions would certainly be culturally diverse.

Suggestion.



An assessment of the three options suggests that assimilation of marketing and procedures would not be a feasible relocation due to the substantial distinctions in between the two divisions despite the reality that presently Lewis is dealing with both. While separation of the manufacturing feature may have been a favorable move for the advertising and marketing division, the reality that it would certainly indicate placing a third feature under Lewis's wing suggests this must be avoided.

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

Advertising and Marketing functions would certainly be combined.

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

Production feature will certainly remain component of advertising and marketing under advertising feature.

Lewis will divide herself from operations.

An autonomous leadership style with staff member empowerment will be utilized in advertising and marketing department.

Open up door policy as well as focus on cross department communication will be aimed at removing disharmony.

Backup plan.

If the integration does not exercise as prepared, a contingency plan would certainly follow which would certainly separate the manufacturing function from the marketing feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing division without an SVP. In that case the manufacturing function will most definitely be divided by putting it under an SVP production.