Cosmeticos De Espana Sa C Case Study Solution


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Cosmeticos De Espana Sa C Case Study Help

Background and Facts

Cosmeticos De Espana Sa C an office supplies store for tiny and also moderate sized businesses has recently been involved in planning for a merger with its rival Home Deport, which has impacted performance degrees in departmentswith the senior supervisor involved in legal complications put forth by the government Trade Commission. With the Advertising and marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the function in the future. With challenges in the form of a prospective cultural adjustment and reduced employee morale, the organization requires a complete reengineering effort at the marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The potential social adjustment at the advertising and marketing department of Cosmeticos De Espana Sa C is enhancing unpredictability in the workplace causing different challenges 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 major function in influencing strategic decisions considering that Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Trade Commission's treatment in the process. Provided the reality that the store has a worldwide existence with branches in UK, USA, Canada and Germany, political factors in each of these nations may be able to affect performance or strategic objectives. Federal Profession Payment's antitrust match against the merger used up beneficial time of the company's senior management suggesting that 'political' factors can have serious ramifications for a worldwide company.

Economic Factors: Economic factors such as the emergence of small companies in the international scenario recommend that Cosmeticos De Espana Sa C is flourishing in a setting where there is prospective development of businesses. Truth that shop customers are mainly looking for workplace products for house workplaces suggests that the market has a rising pattern of business owners and also home based organisations.

Social factors: Social trends in the economic climate show that customers are searching for convenience as well as eye-catching rates. Marketing research demonstrates how the consumer for Cosmeticos De Espana Sa C lacks recognition concerning locating services which can provide a combination of convenience and inexpensive.

Technical factors: Technology plays a crucial duty in Cosmeticos De Espana Sa C's company strategy particularly as the company is piloting Modern technology facilities which would supply innovation sales and support in the kind of memory upgrades, outer installments. (Recap of PARASITE in appendix 2).

OB Issues and also Manifestations.

A number of underlying Business Actions concerns can be seen in Cosmeticos De Espana Sa C's case as highlighted in this area.

Worries regarding cultural adjustment: There is concern regarding a social change that would certainly happen as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising And Marketing with most of the employee already showing discontent over this potential relocation. This anticipated modification has produced stress and anxiety in the work environment which has actually been coupled with the past stress and anxiety of preparing the firm for a possible merging with House Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is scarcity of employees that can match the demanding setting of a busy company. Not only does this bring about difficulty in discovering the appropriate individuals, it places anxiety on brand-new hires as can not hold up against the speed and pressure that the company expects them to bear.

Twin Reporting Lines: Newcomers locate this organizational society difficult as well as tough to manage particularly as dotted line partnerships are meant to be weak in general and objective setup as well as performance evaluation is still done by the solid line supervisor. This means that novices can lose clarity concerning their respective functions and purposes particularly as dotted line coverage does not keep them in straight interaction with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles despite the fact that it had actually been hypothesized that the latter would take Krasnow's position came as an impact to her spirits. Lewis might have been qualified and also ideal for the job however the reality that Kransnow's separation would make Coles a straight record to Lewis might have been the reason for Coles' resignation from services.

Concern & Work Instability: Worry as well as insecurity can be recognized as two major issues that Lewis would be handling especially as the merger has actually currently be terminated as well as 2 senior execs of the marketing department would certainly be leaving. The whole obligation of the division would certainly be dropping on Lewis's shoulders that would not simply be in charge of brining concerning a social modification however would also have to show herself in her brand-new function.

Incompatible Administration Style of Leader: Lewis's monitoring design as well as its incompatibility with the marketing department's role can also be seen as an OB challenge especially as she has been made use of to handling concerns in the operations division where workers are shown to concentrate on processes as well as obtain them right. The advertising and marketing department on the various other hand can be seen as a group of individuals who are made use of to being supported by Krasnow who concentrated much more on result than processes.

Interdepartmental Differences: Interdepartmental arguments between three divisions, advertising, merchandizing and operations specifically over the appropriation of the advertising and marketing mix can be determined as another OB problem. The advertising and marketing department does not share the exact same vision as the other two divisions relating to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and also operations departments do not agree over the marketing mix allowance amongst one another either.

Disintegration in Advertising Division: Fragmentation in between the advertising and marketing departments can be identified as one more OB issue which could need further interest. The fact that the marketing and advertising sections in the marketing division are separated is avoiding both departments from acquiring from each various other's experience as well as competence. Combination of marketing with retailing and also operations would become more difficult if the advertising division itself is degenerated which can be one more possible OB worry.

Cosmeticos De Espana Sa C Analysis

Numerous theories have been utilized to explain the scenarios to obtain further clarity concerning the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors think that subordinates are passive and also lazy, have little aspiration and also resist modification. The scenario at Cosmeticos De Espana Sa C is not totally following Concept X, it can be seen that new hires are discovering this atmosphere rather difficult which may at some point lead to a better inclination of the administration towards Theory X. Even while assessing Lewis's monitoring style, concept X may have been appropriate in the procedures division to some extent yet the Advertising and marketing department would certainly call for reliance on Concept Y in order to obtain the imagination and also creativity from the groups.

Tuckman's Synergy Concept: As far as Lewis's concern regarding bringing harmony between the marketing and advertising division is concerned, this would at first result in clash as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's theory received appendix 3, during the first phase of group development, people may not bond, as they are busy discovering their location in the group. By incorporating the advertising and marketing department's work, there may be the same initial detach which can result in the second stage of 'storming' where the groups test each other. It is only throughout the 3rd stage or 'norming' when they would come with each other to share ideas prior to the group can bring around harmony in the 4th phase 'doing'.

When individuals are provided with modification, they enter stage one and also so there may be feelings like sadness, unpredictability, aggravation, rage, fear, denial and also disorientation.The scenario at the advertising and marketing division of Cosmeticos De Espana Sa C is comparable so Lewis can obtain comfortable with the suggestion that it is not amazing behavior. It is during this phase that Lewis will have to provide assistance to the division so that they can find a sense of direction. It can be seen how Krasnow has currently made this transition simpler by making Lewis obtain included in the division a year prior to his actual separation.
Vrio Analysis
Maslow's Requirement pecking order: The OB concern pertaining to instability at the work environment has actually been set off first of all by the change in administration and also secondly by the truth that the merging will certainly no longer be initiated. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has talks about the relevance of 'protection requires as being a lower degree demand of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the need to feel protected and also untouched' goes to the 2nd degree of needs. Before an employee can be made to develop psychologically, he needs to have his 'Physiological 'and 'Safety' requires satisfied. This indicates that unless the workers are made to really feel safe and secure about their existing work condition in Cosmeticos De Espana Sa C they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Cosmeticos De Espana Sa C Case Study

Ramification of Analysis.

The OB analysis has considered various theories to recognize how to cope with the present scenario handy. The adhering to 3 alternatives have been recommended to assist Lewis take care of the business obstacles in the marketing division. Each of these options has been proposed for reducing the change needed to bring the advertising department in line with the demands of the market and also for making the social change that would certainly follow when the present leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting as well as Manufacturing functions. Integration of Advertising And Marketing with Operations.

Analysis of Alternatives.

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

The advantage of this strategy is that it will certainly incorporate both functions while minimizing the demand for hiring an added resource for advertising and marketing. Lewis would certainly be heading the marketing department and in any type of case her replacement would be required for the present duty that she is doing. The downside of this alternative is that exterior hiring may cause resentment from inner employees who may be looking at the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Production: Offered the competitive pressures and also high top quality job required from the advertising agency, it is advised that Lewis must enable the manufacturing unit to be a separate feature from the marketing unit. Since many marketing firms had these 2 functions as separate devices, it makes even more sense to adhere to the standard.

Assimilation of Advertising with Workflows: Since Lewis is currently taking treatment of the advertising and marketing and operations divisions simultaneously; it makes feeling to incorporate the 2 features considering that she has actually been successfully taking care of both ends. The truth that Lewis has to adapt her administration design for the advertising and marketing department suggests that these 2 divisions would certainly be culturally diverse.


An assessment of the three choices shows that assimilation of marketing and also procedures would not be a feasible relocation as a result of the vast distinctions between the two divisions despite the fact that currently Lewis is managing both. While separation of the manufacturing function might have been a positive step for the advertising and marketing department, the reality that it would certainly mean placing a third function under Lewis's wing means this need to be avoided. The assimilation of the advertising and marketing division is the most effective option in terms of getting the optimum arise from the division. An action plan for this alternative is reviewed listed below.

Action Strategy.
Lewis will take over the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

Production function will continue to be component of marketing under advertising and marketing function.

Lewis will certainly divide herself from operations.

A democratic management style with employee empowerment will be used in marketing division.

Open door policy and also emphasis on cross departmental interaction will certainly be aimed at eliminating dissonance.

Contingency plan.

If the combination does not exercise as prepared, a backup plan would certainly comply with which would certainly separate the production feature from the advertising and marketing function to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the marketing department without an SVP. In that case the production function will most definitely be divided by placing it under an SVP manufacturing.