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Continental Carriers Inc Case Study Analysis

CASE ANALYSIS

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Continental Carriers Inc Case Study Analysis

Background and Facts

Continental Carriers Inc a workplace materials merchant for little as well as average sized organisations has lately been involved in preparing for a merger with its competitor House Deport, which has actually influenced effectiveness degrees in departmentswith the elderly manager associated with lawful problems put forth by the government Profession Compensation. With the Advertising Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the role in the near future. With obstacles in the kind of a possible social adjustment and low staff member morale, the organization wants a total reengineering initiative at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the marketing division of Continental Carriers Inc is raising uncertainty in the workplace resulting in numerous challenges for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting strategic choices considering that Stapes Inc. needed to abandon its plans of combining with Workplace Deport after the Federal Profession Compensation's intervention in the process. Provided the truth that the shop has a worldwide presence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these countries may be able to influence performance or tactical goals. Federal Profession Compensation's antitrust fit against the merging used up useful time of the organization's elderly management recommending that 'political' factors can have serious ramifications for a worldwide organisation.

Economic Factors: Economic factors such as the appearance of small businesses in the international scenario recommend that Continental Carriers Inc is growing in an atmosphere where there is prospective growth of companies. In addition to this, fact that shop clients are primarily seeking workplace supplies for home offices suggests that the marketplace has a climbing trend of entrepreneurs as well as home businesses.

Social factors: Social trends in the economic situation show that clients are seeking convenience as well as attractive rates. Market research shows how the consumer for Continental Carriers Inc lacks understanding concerning locating options which can supply a combination of convenience and inexpensive.

Technological factors: Modern technology plays an essential duty in Continental Carriers Inc's business strategy especially as the company is piloting Technology centers which would supply modern technology sales and support in the type of memory upgrades, peripheral installations. (Recap of PEST in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Business Habits problems can be seen in Continental Carriers Inc's case as highlighted in this area.

Worries regarding cultural change: There is apprehension about a cultural change that would happen as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising with the majority of the team member already revealing unhappiness over this possible relocation. This anticipated adjustment has actually developed anxiety in the workplace which has been coupled with the previous tension of preparing the company for a potential merging with Residence Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is lack of employees that can match the demanding setting of a busy organization. Not just does this bring about difficulty in discovering the best individuals, it puts anxiety on new hires as can not endure the speed as well as pressure that the company expects them to bear.

Double Reporting Lines: Newbies locate this business society troublesome and hard to cope with specifically as populated line relationships are implied to be weaker as a whole and objective setting and also efficiency examination is still done by the strong line supervisor. This means that newcomers can shed clearness concerning their respective roles as well as purposes particularly as dotted line coverage does not keep them in straight communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had actually been speculated that the last would certainly take Krasnow's setting came as a blow to her spirits. Lewis may have been qualified and also appropriate for the task yet the truth that Kransnow's departure would certainly make Coles a straight record to Lewis may have been the reason for Coles' resignation from services.

Fear & Job Instability: Concern and instability can be identified as two significant problems that Lewis would certainly be managing specifically as the merger has currently be terminated and also two senior executives of the marketing division would certainly be leaving. The entire responsibility of the department would certainly be dropping on Lewis's shoulders that would not simply supervise of brining concerning a cultural change yet would certainly also have to verify herself in her brand-new function.

Inappropriate Monitoring Design of Leader: Lewis's management design and also its conflict with the advertising and marketing department's function can likewise be seen as an OB challenge specifically as she has actually been utilized to handling issues in the operations department where workers are taught to concentrate on procedures as well as obtain them. The advertising division on the various other hand can be seen as a team of people that are made use of to being nurtured by Krasnow who concentrated more on outcome than procedures.

Interdepartmental Disputes: Interdepartmental arguments between three divisions, advertising and marketing, merchandizing as well as procedures specifically over the allocation of the advertising and marketing mix can be identified as an additional OB concern. Although the advertising division does not share the exact same vision as the various other 2 divisions pertaining to the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and also procedures divisions do not concur over the advertising mix appropriation amongst each other either.

Fragmentation in Advertising And Marketing Division: Fragmentation between the advertising and marketing divisions can be recognized as one more OB problem which could need more focus. The reality that the advertising and marketing areas in the advertising and marketing division are separated is avoiding both divisions from acquiring from each various other's experience and experience. Integration of advertising with merchandising as well as operations would certainly come to be harder if the advertising division itself is degenerated which can be an additional possible OB concern.

Continental Carriers Inc Analysis

Different concepts have actually been made use of to describe the conditions to obtain additional quality regarding the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors think that juniors are easy and also lazy, have little ambition and also withstand modification. The hard variation of this concept emphasized threat, tight controls, dangers and penalties. Gradually it produces low efficiency, refined sabotage and also rivalry (Deal, 2003). The situation at Continental Carriers Inc is not completely adhering to Concept X, it can be seen that new hires are finding this environment rather stressful which might eventually lead to a higher disposition of the administration towards Concept X. Based on McGregor's advocated sight, which he called Theory Y, the important task of the administration is to arrange organizational problems to make sure that individuals can achieve their own objectives best by directing their initiatives in the direction of business rewards. If individuals find no fulfillment in their job, the monitoring would have little selection yet to rely on theory X and also outside control (Offer, 2003). Also while assessing Lewis's administration design, theory X might have appropriated in the operations department somewhat however the Advertising and marketing department would call for reliance on Theory Y to get the imagination and creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's issue regarding bringing consistency between the advertising and marketing division is concerned, this would initially result in clash as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, throughout the initial stage of team development, individuals may not bond, as they are active finding their area in the group. By integrating the advertising and marketing division's job, there might coincide preliminary disconnect which might result in the 2nd stage of 'storming' where the teams test each other. Nonetheless, it is just throughout the third stage or 'norming' when they would come together to share suggestions prior to the team can cause harmony in the fourth stage 'doing'.

When individuals are offered with change, they go into stage one as well as so there may be feelings like despair, unpredictability, frustration, rage, fear, denial and also disorientation.The situation at the advertising division of Continental Carriers Inc is similar so Lewis can get comfy with the suggestion that it is not remarkable actions. It is during this phase that Lewis will certainly have to give guidance to the department so that they can locate a feeling of direction. It can be seen how Krasnow has actually currently made this shift easier by making Lewis obtain entailed in the department a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has goes over the significance of 'protection requires as being a lower level demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel safe and out of threat' is at the second level of needs. Prior to a worker can be made to establish psychologically, he requires to have his 'Physiological 'and also 'Security' needs fulfilled.

SWOT Analysis for Continental Carriers Inc Case Study



Implication of Analysis.

The OB analysis has checked out different theories to recognize just how to cope with the existing circumstance handy. The adhering to three options have actually been suggested to aid Lewis take care of the organizational difficulties in the advertising department. Each of these options has been suggested for easing the transition needed to bring the advertising department in accordance with the demands of the market and for making the social modification that would certainly adhere to when the existing leader leaves.

Integration of advertising and marketing features. Dividing Adverting and also Production functions. Combination of Advertising And Marketing with Procedures.

Examination of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merging days has proficiency in business-to-business advertising and marketing along with agency and also retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both marketing as well as marketing functions.

The advantage of this technique is that it will certainly incorporate both functions while lowering the need for hiring an added resource for advertising and marketing. Lewis would certainly be heading the advertising and marketing department and also in any kind of case her substitute would be required for the existing function that she is executing. The negative aspect of this choice is that external hiring may bring about bitterness from inner personnel who may be eying the placement of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and also Production: Provided the affordable stress as well as high top quality work needed from the marketing agency, it is recommended that Lewis should permit the manufacturing system to be a separate function from the advertising and marketing device. Because a lot of marketing agencies had these 2 features as separate systems, it makes more sense to follow the standard.

Assimilation of Advertising with Operations: Given that Lewis is currently taking treatment of the marketing as well as procedures departments concurrently; it makes sense to integrate the two functions given that she has been successfully taking treatment of both ends. The fact that Lewis has to adapt her monitoring style for the marketing department suggests that these 2 divisions would certainly be culturally varied.

Suggestion.



An examination of the 3 options suggests that assimilation of advertising and marketing as well as operations would certainly not be a viable action due to the vast differences between the 2 departments regardless of the reality that currently Lewis is taking care of both. While separation of the manufacturing function may have been a favorable relocation for the advertising and marketing division, the fact that it would certainly imply placing a third feature under Lewis's wing implies this need to be stayed clear of.

Activity Strategy.
Recommendation
Lewis will certainly take control of the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Manufacturing function will certainly continue to be component of marketing under advertising feature.

Lewis will divide herself from procedures.

An autonomous leadership design with employee empowerment will certainly be made use of in advertising department.

Open door plan and also focus on cross departmental communication will be targeted at eliminating discord.

Backup plan.

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