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Craig Manufacturing Case Study Solution

Background and Facts

Craig Manufacturing an office products retailer for small and medium sized businesses has recently been associated with planning for a merging with its rival Home Deport, which has actually influenced performance levels in departmentswith the elderly supervisor associated with legal difficulties put forth by the government Trade Commission. With the Advertising Head advancing the news of his departure from the company in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the near future. With difficulties in the form of a potential social change and also low worker morale, the company is in need of a complete reengineering effort at the advertising and marketing division.

Issue Statement
Porter's 5 Forces Analysis
The potential cultural change at the advertising department of Craig Manufacturing is raising unpredictability in the working environment leading to numerous difficulties for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing critical choices since Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Profession Payment's intervention while doing so. Offered the truth that the shop has a global existence with branches in UK, U.S.A., Canada and Germany, political consider each of these countries might be able to affect efficiency or critical objectives. Federal Profession Payment's antitrust suit against the merger used up beneficial time of the organization's senior monitoring suggesting that 'political' factors can have major effects for a global business.

Economic Factors: Financial factors such as the appearance of local business in the international scenario recommend that Craig Manufacturing is prospering in a setting where there is possible growth of businesses. Along with this, reality that store consumers are primarily seeking workplace materials for home offices suggests that the marketplace has an increasing fad of business owners and also online businesses.

Social factors: Social patterns in the economic climate reveal that consumers are searching for benefit along with attractive rates. Marketing research shows how the consumer for Craig Manufacturing does not have understanding regarding locating services which can use a mix of comfort and inexpensive.

Technological factors: Modern technology plays an essential duty in Craig Manufacturing's company technique especially as the organization is piloting Technology facilities which would certainly provide technology sales as well as support in the type of memory upgrades, peripheral installations. (Summary of INSECT in appendix 2).

OB Issues as well as Symptoms.

Several underlying Business Habits issues can be seen in Craig Manufacturing's case as highlighted in this section.

Uneasiness about social modification: There is uneasiness about a social adjustment that would take place when Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with the majority of the staff members already revealing unhappiness over this prospective move. This anticipated adjustment has actually produced anxiety in the work environment which has actually been combined with the previous anxiety of preparing the company for a prospective merger with Home Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is scarcity of employees that can match the demanding environment of a fast-paced organization. Not only does this cause problem in discovering the right individuals, it places tension on brand-new hires as can not withstand the speed as well as pressure that the company expects them to birth.

Dual Coverage Lines: Novices locate this business culture troublesome and also difficult to handle especially as populated line partnerships are meant to be weak as a whole as well as unbiased setting as well as efficiency evaluation is still done by the strong line manager. This indicates that newcomers might shed quality concerning their corresponding duties and goals particularly as populated line coverage does not keep them in direct interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had been guessed that the latter would certainly take Krasnow's position came as a blow to her morale. Lewis might have been qualified and proper for the job however the reality that Kransnow's departure would make Coles a straight report to Lewis may have been the reason for Coles' resignation from services.

Concern & Job Instability: Worry and also instability can be identified as 2 significant issues that Lewis would certainly be managing especially as the merger has currently be terminated and also two senior executives of the advertising division would be leaving. The entire duty of the department would certainly be dropping on Lewis's shoulders that would not just be in charge of brining concerning a cultural change yet would additionally have to confirm herself in her brand-new duty.

Incompatible Management Design of Leader: Lewis's monitoring style as well as its conflict with the marketing division's role can likewise be seen as an OB difficulty especially as she has been utilized to dealing with concerns in the operations department where employees are shown to concentrate on procedures as well as get them. The advertising and marketing department on the various other hand can be viewed as a team of people who are utilized to being supported by Krasnow who focused a lot more on output than processes.

Interdepartmental Arguments: Interdepartmental differences between three departments, marketing, merchandizing and operations specifically over the allowance of the advertising and marketing mix can be recognized as one more OB issue. Although the advertising department does not share the very same vision as the various other 2 departments relating to the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and operations divisions do not agree over the marketing mix allotment amongst each other either.

Fragmentation in Marketing Department: Fragmentation between the advertising and marketing departments can be identified as another OB concern which could require further focus. The truth that the marketing and advertising areas in the marketing division are separated is protecting against both departments from obtaining from each other's experience as well as competence. Assimilation of advertising with retailing and procedures would end up being harder if the marketing division itself is broken down which can be another possible OB worry.

Craig Manufacturing Analysis

Various theories have actually been made use of to discuss the conditions to obtain more clarity regarding the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors think that juniors are easy and lazy, have little passion and stand up to change. The hard version of this theory stressed coercion, limited controls, dangers and punishments. Over time it produces low performance, refined sabotage as well as competition (Deal, 2003). Although the circumstance at Craig Manufacturing is not totally adhering to Concept X, it can be seen that new hires are discovering this setting rather demanding which may at some point lead to a higher inclination of the management towards Concept X. As per McGregor's advocated sight, which he called Concept Y, the important job of the management is to organize organizational conditions to make sure that individuals can accomplish their very own goals best by guiding their initiatives in the direction of business rewards. If people find no contentment in their job, the management would have little option but to rely upon concept X as well as exterior control (Deal, 2003). Even while examining Lewis's management design, concept X might have been suitable in the procedures division somewhat yet the Advertising and marketing division would call for reliance on Theory Y in order to get the creative thinking and originality from the groups.

Tuckman's Synergy Theory: As for Lewis's problem about bringing consistency between the advertising and marketing division is concerned, this would at first bring about contrast as talked about by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's theory shown in appendix 3, during the first stage of group development, individuals might not bond, as they are busy discovering their area in the group. By combining the advertising and marketing department's work, there might be the same preliminary disconnect which could bring about the 2nd phase of 'storming' where the groups test one another. Nevertheless, it is only during the 3rd phase or 'norming' when they would certainly collaborate to share concepts before the team can bring about harmony in the 4th stage 'doing'.

Bridges' Transition Model: According To William Bridge's concept (appendix 4), individuals are quite awkward with change, which is noticeable by the situation at Craig Manufacturing The situation can be seen as a normal training course of life if is studied according to Bridge's concept where he clarifies that people experience 3 phases of shift when they experience change. 'Ending, losing and Releasing', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When individuals are presented with adjustment, they enter phase one and so there might be feelings like despair, uncertainty, disappointment, anger, concern, denial as well as disorientation.The situation at the marketing division of Craig Manufacturing is comparable so Lewis can obtain comfy with the idea that it is not remarkable behavior. In the second stage, there may be a need to link the space in between the brand-new and old culture so Lewis might have to face this ordeal when Krasnow leaves. There may be low spirits and reduced productivity at this stage which ought to not be taken as an obstacle. It is throughout this stage that Lewis will certainly have to provide guidance to the division so that they can find a sense of direction. It can be seen just how Krasnow has already made this transition easier by making Lewis obtain associated with the division a year before his real departure. According to Bridges' Design, stage three will produce visibility to understanding, High energy and commitment as individuals will certainly embrace the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has talks about the significance of 'protection requires as being a reduced degree demand of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel protected and out of risk' is at the second level of demands. Before a worker can be made to establish mentally, he requires to have his 'Physiological 'and 'Safety' requires met.

SWOT Analysis for Craig Manufacturing Case Study



Ramification of Analysis.

The OB analysis has actually looked at various concepts to comprehend exactly how to handle the present scenario handy. The following three alternatives have been proposed to help Lewis take care of the business obstacles in the advertising department. Each of these options has actually been suggested for alleviating the shift needed to bring the advertising department according to the needs of the marketplace as well as for making the social change that would follow once the present leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting as well as Production functions. Combination of Advertising And Marketing with Procedures.

Examination of Alternatives.

Combination of Advertising & Advertising Functions: The internal advertising agency of Craig Manufacturing is already toughness for the organization in terms of conserving up on expenses associated with marketing as well as promo. Since no brand-new employment has been done after Bridget Cole's departure with the reporting line being straight appointed to Krasnow for the marketing feature, this is a desirable chance for incorporating the advertising and marketing functions. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merging days has experience in business-to-business advertising along with firm and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both marketing and advertising functions.

The benefit of this strategy is that it will integrate the two functions while minimizing the requirement for employing an additional source for advertising. Along with this, Lewis would certainly be heading the advertising department and also in any case her replacement would certainly be required for the present function that she is performing. The negative aspect of this alternative is that external hiring might bring about bitterness from interior workers who might be eying the placement of EVP after Lewis takes over Krasnow's position.

Dividing Adverting as well as Manufacturing: Offered the affordable stress and also high top quality job needed from the advertising and marketing company, it is recommended that Lewis must permit the production device to be a separate function from the advertising and marketing system. Since most advertising and marketing firms had these two functions as different systems, it makes even more sense to follow the standard.

Integration of Advertising And Marketing with Operations: Because Lewis is currently taking care of the marketing and also operations departments simultaneously; it makes good sense to integrate both functions since she has been effectively caring for both ends. The truth that both departments currently have significant differences over allotment of resources recommends that this combination might have the ability to bring about consistency specifically as Lewis would be heading both ends.However there are different drawbacks of this action especially as it would put excessive burden over Lewis's shoulders. The reality that Lewis has to adapt her monitoring design for the marketing department suggests that these 2 departments would be culturally varied. Lewis may not be able to use one type of management design to both divisions which might result in inadequacy in either one of the two functions.

Suggestion.



An analysis of the 3 options shows that integration of advertising and marketing as well as procedures would certainly not be a feasible relocation because of the substantial distinctions between the two divisions despite the fact that currently Lewis is handling both. While separation of the manufacturing function may have been a positive relocation for the marketing division, the reality that it would certainly imply putting a third feature under Lewis's wing indicates this should be stayed clear of. The combination of the advertising division is the most effective alternative in regards to obtaining the ideal results from the division. An activity plan for this option is gone over below.

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

Marketing and advertising features would be merged.

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

Production function will certainly remain component of advertising and marketing under advertising feature.

Lewis will divide herself from operations.

An autonomous leadership style with staff member empowerment will certainly be utilized in advertising department.

Open up door policy and also emphasis on cross department communication will certainly be focused on removing dissonance.

Backup strategy.

If the assimilation does not exercise as prepared, a contingency plan would certainly adhere to which would certainly divide the manufacturing feature from the advertising function to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing department without an SVP. In that case the manufacturing function will certainly be divided by placing it under an SVP manufacturing.