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Cosmeticos De Espana Sa F Case Study Analysis

Background and Facts

Cosmeticos De Espana Sa F a workplace products seller for small and moderate sized businesses has actually recently been involved in planning for a merging with its competitor House Deport, which has impacted efficiency levels in departmentswith the senior manager involved in legal difficulties put forth by the government Profession Commission. With the Advertising and marketing Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the duty in the future. With obstacles in the kind of a possible social modification and reduced employee spirits, the organization requires a total reengineering initiative at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The possible social modification at the advertising and marketing division of Cosmeticos De Espana Sa F is boosting uncertainty in the working environment bring about numerous difficulties for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing calculated decisions considering that Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Profession Compensation's treatment in the process. Provided the fact that the shop has a global presence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries might be able to affect performance or tactical objectives. Federal Trade Compensation's antitrust match versus the merger occupied useful time of the company's elderly administration suggesting that 'political' factors can have serious implications for an international organisation.

Economic Factors: Economic factors such as the appearance of small companies in the worldwide circumstance recommend that Cosmeticos De Espana Sa F is thriving in a setting where there is prospective development of organisations. In addition to this, truth that store clients are mainly looking for workplace materials for office suggests that the marketplace has a rising fad of entrepreneurs and online services.

Social factors: Social patterns in the economic situation show that clients are trying to find comfort as well as appealing prices. Marketing research demonstrates how the customer for Cosmeticos De Espana Sa F does not have understanding regarding finding solutions which can supply a combination of benefit and also inexpensive.

Technical factors: Technology plays a vital duty in Cosmeticos De Espana Sa F's service method specifically as the company is piloting Technology facilities which would certainly offer modern technology sales and support in the type of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues and Effects.

Numerous underlying Business Habits issues can be seen in Cosmeticos De Espana Sa F's case as highlighted in this section.

Concerns concerning social change: There is apprehension concerning a social modification that would happen when Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with most of the team member currently showing discontent over this possible relocation. This predicted adjustment has created tension in the office which has actually been coupled with the previous anxiety of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is scarcity of workers that can match the stressful atmosphere of a fast-paced organization. Not only does this lead to trouble in locating the best people, it places tension on new hires as can not hold up against the speed and also pressure that the company anticipates them to bear.

Dual Coverage Lines: Newcomers find this organizational culture troublesome and also challenging to handle specifically as populated line partnerships are indicated to be weaker generally and objective setup as well as performance examination is still done by the solid line supervisor. This implies that novices could shed quality about their respective roles and also objectives specifically as dotted line reporting does not keep them in straight interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles although it had actually been speculated that the last would take Krasnow's placement came as an impact to her morale. Lewis might have been qualified and also suitable for the job yet the reality that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Anxiety & Job Insecurity: Anxiety and instability can be recognized as two significant problems that Lewis would certainly be handling especially as the merger has now be cancelled as well as 2 senior executives of the advertising and marketing department would be leaving. The whole responsibility of the division would certainly be dropping on Lewis's shoulders who would certainly not just supervise of brining concerning a cultural change however would certainly additionally have to verify herself in her new role.

Incompatible Administration Style of Leader: Lewis's management design as well as its incompatibility with the advertising division's role can likewise be seen as an OB difficulty especially as she has actually been used to handling issues in the operations division where employees are shown to concentrate on procedures and also get them. The advertising department on the various other hand can be viewed as a group of people that are made use of to being nurtured by Krasnow that focused extra on result than procedures.

Interdepartmental Disagreements: Interdepartmental arguments in between 3 departments, advertising, merchandizing as well as procedures specifically over the allotment of the marketing mix can be determined as another OB issue. Although the advertising department does not share the exact same vision as the various other two departments pertaining to the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and procedures departments do not agree over the marketing mix allocation among one another either.

Fragmentation in Advertising And Marketing Division: Disintegration in between the advertising and marketing departments can be determined as another OB issue which could need further focus. The reality that the advertising and marketing areas in the advertising and marketing department are detached is protecting against both divisions from obtaining from each various other's experience and competence. Assimilation of advertising with retailing and operations would certainly come to be more difficult if the advertising and marketing division itself is degenerated which can be another potential OB concern.

Cosmeticos De Espana Sa F Analysis

Various concepts have actually been utilized to discuss the conditions to obtain further clearness concerning the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers believe that staffs are easy as well as lazy, have little passion as well as withstand modification. The circumstance at Cosmeticos De Espana Sa F is not entirely complying with Theory X, it can be seen that brand-new hires are discovering this setting instead difficult which might at some point lead to a higher disposition of the monitoring in the direction of Theory X. Also while examining Lewis's monitoring design, concept X may have been ideal in the procedures department to some level however the Advertising and marketing division would need reliance on Concept Y in order to get the creativity and also originality from the teams.

Tuckman's Teamwork Concept: As far as Lewis's concern regarding bringing consistency between the marketing and advertising department is worried, this would originally lead to conflict as talked about by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, during the first phase of group development, individuals might not bond, as they are hectic discovering their area in the group. By combining the advertising and marketing department's work, there might be the same initial disconnect which might result in the second stage of 'storming' where the teams test each other. It is only throughout the third phase or 'norming' when they would come with each other to share concepts before the team can bring about harmony in the fourth phase 'performing'.

Bridges' Change Design: As per William Bridge's theory (appendix 4), people are quite uncomfortable with change, which is noticeable by the situation at Cosmeticos De Espana Sa F The situation can be viewed as a typical program of life if is examined as per Bridge's concept where he describes that people experience 3 phases of transition when they experience change. 'Ending, losing and also Letting go', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they get in phase one therefore there may be feelings like unhappiness, unpredictability, irritation, anger, worry, rejection and also disorientation.The scenario at the marketing division of Cosmeticos De Espana Sa F is similar so Lewis can get comfy with the idea that it is not phenomenal habits. In the 2nd stage, there may be a demand to bridge the gap in between the brand-new and also old society so Lewis may have to encounter this ordeal once Krasnow leaves. There may be low morale as well as low performance at this phase which ought to not be taken as an obstacle. It is during this phase that Lewis will certainly have to offer support to the department to make sure that they can find a sense of direction. It can be seen exactly how Krasnow has actually already made this shift easier by making Lewis obtain associated with the division a year prior to his actual separation. Based on Bridges' Model, stage three will certainly bring about visibility to discovering, High energy and dedication as individuals will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Need pecking order: The OB concern related to instability at the workplace has actually been caused first of all by the adjustment in administration and secondly by the fact that the merger will no longer be started. Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has reviews the importance of 'protection needs as being a lower level need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel secure and also unharmed' goes to the second level of requirements. Before an employee can be made to establish mentally, he needs to have his 'Physiological 'and 'Safety' requires satisfied. This indicates that unless the workers are made to really feel protected regarding their existing work standing in Cosmeticos De Espana Sa F they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Cosmeticos De Espana Sa F Case Study

Ramification of Analysis.

The OB analysis has actually considered different concepts to understand how to deal with the present circumstance at hand. The adhering to three choices have actually been proposed to help Lewis manage the business challenges in the marketing department. Each of these alternatives has actually been suggested for easing the shift needed to bring the marketing division in line with the requirements of the marketplace and for making the social change that would certainly comply with as soon as the present leader leaves.

Combination of marketing and advertising functions. Separating Adverting and Production features. Combination of Advertising with Procedures.

Analysis of Alternatives.

Combination of Advertising & Marketing Functions: The internal marketing firm of Cosmeticos De Espana Sa F is already stamina for the company in terms of conserving up on overheads associated with marketing and also promotion. Given that no new recruitment has been done after Bridget Cole's departure with the coverage line being directly appointed to Krasnow for the marketing function, this is a positive chance for integrating the advertising and marketing functions. Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merging days has proficiency in business-to-business advertising in addition to agency and also retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to manage both advertising and marketing functions.

The benefit of this strategy is that it will integrate both functions while reducing the need for hiring an additional source for advertising and marketing. Along with this, Lewis would certainly be heading the advertising department and in any case her replacement would be needed for the present duty that she is doing. The disadvantage of this alternative is that exterior hiring may produce bitterness from internal workers that might be eying the placement of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Production: Given the affordable stress and top quality work needed from the ad agency, it is recommended that Lewis must permit the manufacturing unit to be a separate feature from the advertising device. Given that most advertising agencies had these two features as different units, it makes more feeling to follow the norm. In addition to this, both features may be able to focus on their core activates a lot more successfully. The downside of this strategy would certainly be that additional costs would have to be birthed for setting up different production features. A production head may have to be worked with which could boost expenses for the organization.

Assimilation of Advertising with Operations: Given that Lewis is currently dealing with the advertising and procedures divisions simultaneously; it makes good sense to incorporate both features given that she has been efficiently looking after both ends. The truth that both departments currently have major distinctions over appropriation of resources recommends that this assimilation might have the ability to cause consistency specifically as Lewis would certainly be heading both ends.However there are numerous disadvantages of this action particularly as it would place way too much problem over Lewis's shoulders. The truth that Lewis has to adapt her management style for the marketing department suggests that these 2 divisions would certainly be culturally varied. Lewis may not be able to use one kind of leadership design to both divisions which might result in ineffectiveness in either one of the two functions.


An assessment of the 3 choices indicates that assimilation of advertising and operations would certainly not be a viable move due to the huge distinctions between the two divisions despite the truth that currently Lewis is managing both. While separation of the manufacturing function may have been a positive action for the advertising and marketing department, the fact that it would certainly imply putting a 3rd function under Lewis's wing means this must be avoided.

Activity Strategy.
Lewis will certainly take control of the function of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

Production feature will remain part of marketing under advertising function.

Lewis will certainly separate herself from procedures.

A democratic leadership design with employee empowerment will certainly be used in advertising department.

Open up door policy and also emphasis on cross department interaction will be aimed at eliminating discord.

Backup plan.

If the combination does not exercise as planned, a contingency plan would follow which would separate the manufacturing function from the marketing function to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the marketing department without an SVP. Because case the manufacturing function will absolutely be divided by placing it under an SVP production.