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Cosmeticos De Espana Sa F Case Study Analysis

CASE SOLUTION

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Cosmeticos De Espana Sa F Case Study Solution

Background and Facts

Cosmeticos De Espana Sa F an office products merchant for tiny and also medium sized services has actually just recently been associated with preparing for a merging with its competitor Residence Deport, which has actually influenced effectiveness levels in departmentswith the senior supervisor associated with legal complications put forth by the government Trade Payment. With the Advertising Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the current head of operations has been asked to take the role in the near future. With challenges in the type of a potential cultural adjustment as well as reduced worker spirits, the company wants a full reengineering effort at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising and marketing department of Cosmeticos De Espana Sa F is enhancing uncertainty 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 impacting tactical decisions considering that Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Trade Payment's treatment in the process. Provided the truth that the shop has a global presence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries might have the ability to impact performance or tactical objectives. Federal Trade Payment's antitrust match against the merger took up valuable time of the organization's senior monitoring suggesting that 'political' factors can have serious effects for an international service.

Economic Factors: Economic factors such as the development of small companies in the global situation recommend that Cosmeticos De Espana Sa F is flourishing in an environment where there is possible development of organisations. Truth that shop customers are primarily looking for office supplies for home offices recommends that the market has a rising pattern of business owners and also residence based organisations.

Social factors: Social trends in the economic climate reveal that customers are looking for ease along with eye-catching prices. Marketing research demonstrates how the customer for Cosmeticos De Espana Sa F lacks understanding concerning finding remedies which can offer a combination of comfort as well as low costs.

Technological factors: Innovation plays an important duty in Cosmeticos De Espana Sa F's service strategy especially as the company is piloting Innovation centers which would certainly use innovation sales and support in the type of memory upgrades, outer setups. (Summary of PARASITE in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Business Actions problems can be seen in Cosmeticos De Espana Sa F's case as highlighted in this area.

Worries about social modification: There is worry regarding a cultural adjustment that would occur once Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with the majority of the personnel already showing unhappiness over this prospective relocation. This expected change has created stress and anxiety in the workplace which has actually been coupled with the previous anxiety of preparing the firm for a possible merging with House Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is lack of personnel that can match the demanding environment of a hectic organization. Not just does this cause problem in discovering the ideal individuals, it places tension on brand-new hires as can not withstand the speed as well as pressure that the company expects them to bear.

Double Reporting Lines: Newcomers discover this organizational society troublesome and challenging to cope with particularly as populated line relationships are suggested to be weak as a whole as well as unbiased setting and performance evaluation is still done by the solid line manager. This means that novices might lose clarity concerning their respective functions and also objectives especially as populated line coverage does not keep them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been guessed that the latter would take Krasnow's placement came as an impact to her spirits. Lewis might have been qualified and also proper for the work but the reality that Kransnow's departure would certainly make Coles a straight record to Lewis may have been the reason for Coles' resignation from solutions.

Fear & Task Instability: Anxiety and instability can be recognized as two major worries that Lewis would be handling particularly as the merging has currently be cancelled and also two senior executives of the advertising department would certainly be leaving. The whole responsibility of the division would certainly be dropping on Lewis's shoulders that would not simply be in charge of brining about a cultural modification but would certainly additionally need to show herself in her brand-new function.

Inappropriate Monitoring Style of Leader: Lewis's monitoring design and also its conflict with the advertising division's function can also be seen as an OB difficulty particularly as she has actually been made use of to managing problems in the procedures department where personnel are taught to focus on procedures and obtain them. The advertising division on the various other hand can be seen as a team of individuals who are made use of to being nurtured by Krasnow that focused extra on outcome than processes.

Interdepartmental Differences: Interdepartmental disputes between 3 departments, advertising and marketing, merchandizing and operations specifically over the allocation of the marketing mix can be identified as another OB issue. Although the marketing department does not share the exact same vision as the other 2 divisions concerning the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing as well as procedures departments do not agree over the advertising and marketing mix allotment among one another either.

Fragmentation in Advertising And Marketing Department: Fragmentation between the advertising and marketing divisions can be recognized as one more OB concern which could require additional attention. The fact that the marketing and advertising areas in the marketing division are disconnected is preventing both departments from gaining from each various other's experience and expertise. Combination of advertising and marketing with retailing as well as operations would certainly end up being harder if the marketing department itself is disintegrated which can be an additional potential OB concern.

Cosmeticos De Espana Sa F Analysis

Numerous concepts have been utilized to clarify the circumstances to get more quality regarding the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of managers think that subordinates are passive and lazy, have little aspiration as well as stand up to modification. The tough variation of this theory stressed browbeating, tight controls, hazards and penalties. Over time it generates low efficiency, refined sabotage and rivalry (Deal, 2003). The circumstance at Cosmeticos De Espana Sa F is not entirely following Theory X, it can be seen that new hires are locating this atmosphere rather stressful which might at some point lead to a better inclination of the administration towards Concept X. As per McGregor's promoted view, which he called Concept Y, the vital job of the monitoring is to set up business conditions to make sure that individuals can attain their very own goals best by routing their initiatives towards business rewards. If people locate no fulfillment in their job, the management would certainly have little selection however to depend on concept X as well as external control (Offer, 2003). Also while examining Lewis's management design, theory X might have appropriated in the operations department to some extent yet the Advertising and marketing division would need reliance on Theory Y so as to get the creative thinking and creativity from the teams.

Tuckman's Team effort Concept: As for Lewis's problem about bringing consistency between the advertising and marketing division is worried, this would initially lead to contrast as discussed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, throughout the initial phase of team development, people might not bond, as they are hectic discovering their location in the group. By integrating the advertising and marketing department's work, there may be the same first detach which could result in the 2nd phase of 'storming' where the teams challenge each other. It is only during the third stage or 'norming' when they would certainly come together to share ideas before the team can bring around synergy in the fourth phase 'carrying out'.

When individuals are provided with change, they enter phase one and so there might be feelings like sadness, uncertainty, irritation, rage, anxiety, rejection and also disorientation.The circumstance at the marketing department of Cosmeticos De Espana Sa F is comparable so Lewis can get comfortable with the idea that it is not extraordinary habits. It is during this phase that Lewis will have to provide assistance to the division so that they can find a sense of instructions. It can be seen how Krasnow has actually already made this shift easier by making Lewis get involved in the department a year before his actual departure.
Vrio Analysis
Maslow's Requirement hierarchy: The OB problem pertaining to insecurity at the work environment has actually been set off first of all by the modification in management and also secondly by the reality that the merger will no longer be initiated. Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has talks about the value of 'protection requires as being a lower level need of a human for triggering inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the demand to feel protected as well as untouched' goes to the second degree of demands. Prior to an employee can be made to establish emotionally, he needs to have his 'Physiological 'and also 'Safety and security' needs fulfilled. This indicates that unless the employees are made to feel protected regarding their present work standing in Cosmeticos De Espana Sa F they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Cosmeticos De Espana Sa F Case Study



Effects of Analysis.

The OB analysis has actually considered different concepts to understand exactly how to cope with the current circumstance handy. The following three alternatives have been recommended to assist Lewis take care of the business obstacles in the advertising and marketing department. Each of these choices has actually been suggested for relieving the transition required to bring the advertising department in accordance with the needs of the market and also for making the social adjustment that would adhere to as soon as the current leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and also Production features. Integration of Marketing with Operations.

Assessment of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merging days has knowledge in business-to-business advertising along with agency and retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both marketing and also marketing features.

The advantage of this approach is that it will certainly incorporate the two functions while decreasing the requirement for employing an extra source for advertising and marketing. Lewis would certainly be heading the advertising department as well as in any case her substitute would be needed for the existing role that she is performing. The downside of this choice is that exterior hiring might bring about animosity from interior workers who might be eying the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Production: Provided the competitive pressures as well as high top quality job required from the marketing agency, it is suggested that Lewis ought to permit the manufacturing device to be a different function from the advertising system. Given that a lot of advertising and marketing companies had these 2 features as different systems, it makes even more feeling to comply with the standard.

Assimilation of Advertising with Procedures: Because Lewis is already dealing with the marketing and procedures divisions concurrently; it makes good sense to integrate both functions considering that she has actually been successfully dealing with both ends. The fact that both divisions already have major differences over appropriation of sources recommends that this assimilation may be able to produce harmony especially as Lewis would be heading both ends.However there are different disadvantages of this step especially as it would certainly place too much burden over Lewis's shoulders. The truth that Lewis has to adapt her management design for the marketing division recommends that these 2 divisions would certainly be culturally varied. In addition to this, Lewis may not be able to use one type of leadership design to both divisions which can cause inadequacy in either among the two functions.

Suggestion.



An evaluation of the 3 choices shows that integration of advertising and also procedures would certainly not be a practical action due to the large distinctions between the 2 divisions in spite of the truth that presently Lewis is handling both. While splitting up of the production function may have been a desirable action for the marketing department, the fact that it would certainly imply putting a 3rd function under Lewis's wing suggests this need to be prevented.

Action Plan.
Recommendation
Lewis will certainly take over the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

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

Lewis will separate herself from procedures.

A democratic leadership design with worker empowerment will be utilized in advertising division.

Open door policy and also emphasis on cross departmental interaction will certainly be focused on getting rid of disharmony.

Backup strategy.

If the assimilation does not work out as planned, a backup plan would comply with which would separate the manufacturing function from the marketing function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the marketing division without an SVP. In that case the manufacturing feature will most definitely be divided by positioning it under an SVP production.