County Line Markets Real Options And Store Expansions Case Study Solution


Home >> Harvard >> County Line Markets Real Options And Store Expansions >>

County Line Markets Real Options And Store Expansions Case Study Solution

Background and Facts

County Line Markets Real Options And Store Expansions a workplace materials seller for tiny and medium sized services has just recently been associated with preparing for a merging with its rival House Deport, which has impacted efficiency levels in departmentswith the elderly manager associated with legal complications put forth by the federal Trade Payment. With the Advertising and marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the near future. With challenges in the form of a potential social adjustment and also low staff member morale, the company requires a full reengineering initiative at the advertising division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising and marketing division of County Line Markets Real Options And Store Expansions is raising uncertainty in the working environment causing different difficulties for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in influencing strategic choices since Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Trade Commission's intervention while doing so. Offered the fact that the shop has an international presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations may be able to affect efficiency or strategic objectives. Federal Profession Commission's antitrust match against the merging took up beneficial time of the company's senior monitoring recommending that 'political' factors can have serious ramifications for an international business.

Economic Factors: Economic factors such as the appearance of local business in the worldwide scenario recommend that County Line Markets Real Options And Store Expansions is thriving in a setting where there is prospective development of organisations. Along with this, reality that store customers are mostly searching for workplace products for office recommends that the marketplace has a rising trend of entrepreneurs and also home services.

Social factors: Social fads in the economy reveal that consumers are seeking convenience along with attractive prices. Marketing research shows how the client for County Line Markets Real Options And Store Expansions does not have understanding about locating remedies which can supply a mix of comfort and low costs.

Technological factors: Modern technology plays an essential function in County Line Markets Real Options And Store Expansions's service approach especially as the organization is piloting Innovation centers which would certainly supply modern technology sales as well as assistance in the type of memory upgrades, outer setups. (Summary of INSECT in appendix 2).

OB Issues and also Symptoms.

A number of underlying Business Behavior concerns can be seen in County Line Markets Real Options And Store Expansions's case as highlighted in this area.

Worries concerning social change: There is worry about a social change that would certainly happen once Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Marketing with most of the employee currently revealing discontent over this prospective step. This predicted change has created stress and anxiety in the workplace which has actually been combined with the past tension of preparing the company for a potential merger with Home Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is lack of personnel that can match the stressful atmosphere of a hectic company. Not only does this result in difficulty in discovering the best people, it places stress on brand-new hires as can not withstand the pace and pressure that the company expects them to birth.

Double Reporting Lines: Novices find this business culture troublesome as well as tough to manage specifically as populated line partnerships are meant to be weaker in general and also objective setup and also efficiency analysis is still done by the strong line manager. This implies that newbies can shed quality concerning their particular duties as well as objectives particularly as populated line reporting does not keep them in straight communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had been speculated that the last would certainly take Krasnow's placement came as a blow to her spirits. Lewis might have been capable as well as appropriate for the work yet the fact that Kransnow's separation would make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.

Concern & Task Instability: Anxiety as well as instability can be determined as 2 major concerns that Lewis would be taking care of particularly as the merger has now be terminated and also two senior executives of the advertising and marketing division would be leaving. The entire responsibility of the division would be falling on Lewis's shoulders that would not just supervise of brining about a social adjustment however would certainly also have to confirm herself in her new role.

Inappropriate Monitoring Design of Leader: Lewis's monitoring design and also its incompatibility with the marketing department's role can additionally be seen as an OB obstacle especially as she has been utilized to managing problems in the operations division where workers are taught to focus on procedures as well as obtain them. The marketing department on the other hand can be viewed as a group of individuals who are utilized to being supported by Krasnow that focused more on outcome than processes.

Interdepartmental Disagreements: Interdepartmental disputes in between three divisions, advertising, merchandizing and operations respectively over the appropriation of the marketing mix can be determined as one more OB issue. Although the advertising and marketing department does not share the exact same vision as the other 2 departments regarding the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and operations departments do not agree over the advertising and marketing mix allocation amongst each other either.

Disintegration in Advertising And Marketing Division: Disintegration between the advertising and marketing divisions can be determined as an additional OB issue which could need additional attention. The truth that the marketing and advertising areas in the advertising department are separated is stopping both departments from acquiring from each other's experience as well as expertise. Assimilation of advertising and marketing with retailing as well as operations would come to be harder if the advertising division itself is disintegrated which can be an additional potential OB issue.

County Line Markets Real Options And Store Expansions Analysis

Numerous theories have been made use of to discuss the conditions to obtain more quality regarding the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of supervisors think that staffs are easy and also lazy, have little passion and stand up to adjustment. The scenario at County Line Markets Real Options And Store Expansions is not completely adhering to Theory X, it can be seen that brand-new hires are discovering this environment rather difficult which may eventually lead to a greater disposition of the management towards Concept X. Even while evaluating Lewis's administration design, concept X might have been ideal in the operations department to some degree yet the Marketing division would need reliance on Theory Y in order to obtain the creative thinking as well as creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's problem concerning bringing consistency in between the advertising and marketing and marketing division is concerned, this would at first lead to contrast as gone over by Bruce Tuckman in his 'Teamwork Concept'. By integrating the advertising as well as advertising department's work, there might be the exact same first disconnect which could lead to the second stage of 'storming' where the groups test one an additional.

When people are offered with adjustment, they go into stage one as well as so there may be emotions like despair, uncertainty, frustration, rage, worry, rejection and also disorientation.The situation at the marketing division of County Line Markets Real Options And Store Expansions is similar so Lewis can obtain comfy with the suggestion that it is not phenomenal habits. It is during this phase that Lewis will certainly have to provide guidance to the division so that they can find a feeling of instructions. It can be seen just how Krasnow has actually already made this shift simpler by making Lewis obtain entailed in the division a year prior to his real departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has talks about the importance of 'security needs as being a lower level demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel safe and secure and out of threat' is at the 2nd level of needs. Prior to a staff member can be made to develop mentally, he requires to have his 'Physiological 'and also 'Safety' needs satisfied.

SWOT Analysis for County Line Markets Real Options And Store Expansions Case Study

Implication of Analysis.

The OB analysis has actually checked out various concepts to understand how to cope with the present circumstance handy. The complying with three options have actually been proposed to help Lewis take care of the business obstacles in the advertising and marketing division. Each of these options has been recommended for reducing the shift required to bring the advertising department in line with the requirements of the market as well as for making the social adjustment that would certainly comply with once the existing leader leaves.

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

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merger days has know-how in business-to-business marketing along with agency and retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both advertising and marketing and also advertising functions.

The benefit of this method is that it will certainly integrate the two functions while decreasing the demand for hiring an additional resource for advertising and marketing. Along with this, Lewis would be heading the advertising division and all the same her replacement would be needed for the current function that she is performing. The drawback of this choice is that exterior hiring might bring about resentment from inner personnel who might be eying the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Production: Offered the competitive pressures as well as high quality job needed from the ad agency, it is advised that Lewis needs to allow the production unit to be a different function from the advertising and marketing unit. Considering that the majority of advertising agencies had these two features as separate devices, it makes more sense to comply with the norm. In addition to this, both functions may have the ability to concentrate on their core activates a lot more successfully. However, the drawback of this technique would certainly be that extra prices would have to be borne for establishing different manufacturing features. A production head may have to be worked with which could boost overheads for the company.

Integration of Advertising And Marketing with Workflows: Since Lewis is already taking care of the advertising and marketing and also procedures divisions at the same time; it makes good sense to incorporate both features considering that she has been efficiently caring for both ends. The truth that both divisions already have major distinctions over allowance of resources recommends that this integration might be able to produce harmony particularly as Lewis would certainly be heading both ends.However there are various disadvantages of this action especially as it would place too much worry over Lewis's shoulders. The reality that Lewis needs to adapt her administration design for the advertising and marketing division recommends that these 2 departments would certainly be culturally varied. Lewis might not be able to use one kind of management design to both departments which might result in ineffectiveness in either one of the 2 features.


An analysis of the 3 alternatives shows that integration of advertising and operations would not be a possible move due to the large differences between the two departments in spite of the reality that currently Lewis is managing both. While separation of the manufacturing feature might have been a desirable step for the advertising and marketing division, the fact that it would certainly suggest placing a third function under Lewis's wing means this must be avoided.

Action Plan.
Lewis will certainly take over the role of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

Production feature will certainly remain component of marketing under marketing feature.

Lewis will certainly divide herself from procedures.

An autonomous management style with staff member empowerment will certainly be utilized in advertising and marketing department.

Open door policy as well as focus on cross departmental communication will be aimed at removing dissonance.

Contingency strategy.

If the integration does not exercise as prepared, a contingency strategy would follow which would certainly separate the production function from the advertising and marketing feature to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the marketing division without an SVP. Because case the manufacturing feature will definitely be separated by placing it under an SVP manufacturing.