Continental Carriers Inc Case Study Analysis


Home >> Harvard >> Continental Carriers Inc >>

Continental Carriers Inc Case Study Help

Background and Facts

Continental Carriers Inc a workplace supplies merchant for little and also average sized services has actually lately been involved in planning for a merger with its competitor Home Deport, which has actually affected effectiveness levels in departmentswith the elderly manager associated with legal complications put forth by the federal Trade Commission. With the Advertising and marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the current head of operations has been asked to take the duty in the near future. With obstacles in the form of a prospective cultural change as well as low worker spirits, the company requires a full reengineering effort at the advertising and marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising department of Continental Carriers Inc is increasing uncertainty in the working environment leading to different obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing strategic decisions considering that Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Trade Payment's treatment at the same time. Offered the truth that the store has a worldwide visibility with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries might have the ability to influence efficiency or tactical goals. Federal Trade Commission's antitrust suit against the merging took up beneficial time of the company's senior management recommending that 'political' factors can have severe effects for a worldwide organisation.

Economic Factors: Financial factors such as the development of local business in the worldwide situation recommend that Continental Carriers Inc is prospering in an environment where there is possible development of services. In addition to this, reality that store customers are mainly looking for office products for office recommends that the market has a rising trend of entrepreneurs as well as home businesses.

Social factors: Social patterns in the economic situation reveal that customers are looking for benefit as well as eye-catching rates. Market research demonstrates how the customer for Continental Carriers Inc does not have awareness concerning locating services which can offer a mix of benefit and affordable.

Technical factors: Modern technology plays an important function in Continental Carriers Inc's business approach especially as the company is piloting Modern technology facilities which would provide innovation sales and also support in the type of memory upgrades, outer installments. (Summary of PARASITE in appendix 2).

OB Issues and also Symptoms.

A number of underlying Business Habits issues can be seen in Continental Carriers Inc's case as highlighted in this area.

Apprehensions concerning cultural adjustment: There is worry about a cultural adjustment that would happen once Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising with the majority of the employee currently showing discontent over this potential move. This predicted adjustment has actually produced tension in the workplace which has actually been coupled with the previous anxiety of preparing the firm for a possible merger with House Deport.
Pest Analysis
Demanding Work Environment for Newcomers: There is lack of workers that can match the difficult environment of a busy company. Not only does this cause trouble in discovering the appropriate people, it puts stress and anxiety on brand-new hires as can not withstand the speed and pressure that the organization expects them to birth.

Twin Coverage Lines: Newcomers discover this organizational society troublesome as well as difficult to handle particularly as populated line relationships are indicated to be weaker as a whole as well as objective setting and performance evaluation is still done by the strong line supervisor. This implies that beginners could lose clarity about their respective functions as well as objectives particularly as dotted line coverage does not keep them in direct interaction with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been hypothesized that the latter would take Krasnow's placement came as a strike to her morale. Lewis may have been qualified and also appropriate for the work however the reality that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Job Instability: Anxiety and also insecurity can be determined as 2 major concerns that Lewis would certainly be handling specifically as the merging has now be cancelled and two elderly execs of the advertising department would certainly be leaving. The whole duty of the division would be dropping on Lewis's shoulders that would not just be in charge of brining concerning a cultural change but would likewise need to verify herself in her brand-new function.

Inappropriate Monitoring Design of Leader: Lewis's management style and also its conflict with the marketing department's duty can also be seen as an OB challenge particularly as she has been utilized to managing problems in the operations department where personnel are instructed to concentrate on procedures and also obtain them. The advertising division on the various other hand can be seen as a group of individuals that are used to being supported by Krasnow that focused much more on outcome than processes.

Interdepartmental Arguments: Interdepartmental differences in between three divisions, advertising and marketing, merchandizing as well as procedures respectively over the allowance of the marketing mix can be determined as one more OB issue. Although the advertising department does not share the very same vision as the various other 2 divisions relating to the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and also operations divisions do not agree over the advertising mix allowance among each other either.

Fragmentation in Advertising And Marketing Division: Disintegration between the marketing and advertising divisions can be determined as another OB problem which could require further focus. The fact that the advertising and marketing areas in the marketing department are separated is preventing both departments from gaining from each various other's experience as well as expertise. Assimilation of advertising and marketing with retailing and operations would certainly end up being more difficult if the advertising and marketing department itself is disintegrated which can be another possible OB worry.

Continental Carriers Inc Analysis

Numerous concepts have been utilized to clarify the situations to obtain further quality about the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors believe that staffs are passive as well as careless, have little ambition and also withstand modification. The hard variation of this concept highlighted browbeating, limited controls, threats as well as punishments. Over time it creates low performance, refined sabotage and rivalry (Deal, 2003). The situation at Continental Carriers Inc is not totally following Concept X, it can be seen that brand-new hires are locating this setting instead stressful which may ultimately lead to a greater disposition of the management in the direction of Theory X. As per McGregor's supported view, which he called Theory Y, the essential task of the management is to organize organizational conditions so that people can attain their own objectives best by directing their initiatives in the direction of organizational benefits. If people discover no fulfillment in their work, the administration would certainly have little choice however to depend on theory X as well as external control (Offer, 2003). Even while analyzing Lewis's administration style, concept X may have appropriated in the procedures department somewhat but the Marketing division would need reliance on Concept Y in order to get the imagination as well as creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's concern regarding bringing consistency between the advertising and advertising department is concerned, this would originally lead to clash as gone over by Bruce Tuckman in his 'Teamwork Theory'. By incorporating the marketing and also marketing department's job, there may be the very same initial separate which can lead to the second phase of 'storming' where the groups challenge one another.

When people are presented with modification, they go into stage one and so there may be feelings like despair, uncertainty, stress, temper, fear, rejection as well as disorientation.The situation at the marketing division of Continental Carriers Inc is comparable so Lewis can get comfortable with the concept that it is not remarkable actions. It is during this stage that Lewis will have to provide assistance to the department so that they can locate a feeling of direction. It can be seen exactly how Krasnow has already made this change less complicated by making Lewis obtain included in the division a year prior to his actual separation.
Vrio Analysis
Maslow's Demand hierarchy: The OB issue related to insecurity at the office has actually been caused to start with by the modification in monitoring and secondly by the truth that the merging will certainly no longer be started. Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has talks about the importance of 'safety and security requires as being a reduced level demand of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to feel secure as well as safe' is at the second level of needs. Before an employee can be made to develop psychologically, he requires to have his 'Physical 'and 'Safety' needs met. This indicates that unless the workers are made to really feel secure about their existing employment status in Continental Carriers Inc they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Continental Carriers Inc Case Study

Ramification of Analysis.

The OB analysis has actually looked at different theories to recognize just how to manage the present scenario at hand. The adhering to 3 choices have actually been suggested to help Lewis take care of the organizational difficulties in the advertising department. Each of these options has been recommended for reducing the change required to bring the advertising department according to the demands of the market as well as for making the cultural modification that would certainly follow when the current leader leaves.

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

Evaluation of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merger days has proficiency in business-to-business marketing along with firm and also retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to deal with both marketing and advertising and marketing functions.

The advantage of this method is that it will incorporate both features while minimizing the requirement for employing an additional resource for advertising. Lewis would be heading the marketing department and in any kind of case her substitute would certainly be required for the existing duty that she is performing. The disadvantage of this choice is that external hiring may cause resentment from inner employees that might be eying the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Production: Given the competitive pressures and top quality work required from the advertising agency, it is suggested that Lewis needs to enable the production system to be a different feature from the marketing unit. Because the majority of ad agency had these two features as separate devices, it makes more feeling to comply with the norm. In addition to this, both features may be able to concentrate on their core triggers extra effectively. Nevertheless, the downside of this approach would certainly be that extra prices would have to be borne for setting up separate manufacturing functions. Along with this, a production head may have to be hired which can boost expenses for the company.

Combination of Advertising And Marketing with Procedures: Because Lewis is currently taking treatment of the advertising and marketing as well as procedures divisions all at once; it makes sense to integrate the two functions since she has actually been effectively taking care of both ends. The fact that Lewis has to adjust her management style for the advertising department suggests that these 2 divisions would certainly be culturally diverse.


An examination of the three alternatives indicates that integration of advertising and procedures would certainly not be a viable action due to the substantial differences between the two divisions despite the truth that currently Lewis is dealing with both. While splitting up of the production feature may have been a favorable relocation for the marketing department, the reality that it would indicate putting a third function under Lewis's wing means this must be avoided.

Activity Plan.
Lewis will certainly take control of the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be merged.

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

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

Lewis will certainly divide herself from procedures.

A democratic management style with employee empowerment will certainly be utilized in advertising and marketing department.

Open up door plan as well as focus on cross departmental interaction will certainly be aimed at removing discord.

Contingency strategy.

If the assimilation does not work out as prepared, a contingency strategy would certainly adhere to which would certainly divide the production function from the advertising and marketing feature to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising and marketing division without an SVP. In that case the manufacturing feature will certainly be divided by positioning it under an SVP production.