Craig Manufacturing Case Study Help


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Craig Manufacturing Case Study Help

Background and Facts

Craig Manufacturing a workplace products seller for little and medium sized organisations has lately been associated with preparing for a merging with its competitor Home Deport, which has actually influenced performance degrees in departmentswith the senior supervisor involved in legal complications presented by the government Profession Payment. With the Advertising and marketing Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the duty in the future. With obstacles in the form of a possible cultural adjustment as well as reduced employee morale, the company wants a total reengineering initiative at the advertising and marketing department.

Issue Statement
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising department of Craig Manufacturing is enhancing uncertainty in the working environment bring about various challenges for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing calculated decisions given that Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Profession Commission's intervention while doing so. Provided the reality that the store has a worldwide presence with branches in UK, U.S.A., Canada and Germany, political consider each of these countries might have the ability to influence performance or critical goals. Federal Trade Payment's antitrust match against the merging occupied valuable time of the organization's senior monitoring recommending that 'political' factors can have significant ramifications for a worldwide company.

Economic Factors: Economic factors such as the emergence of small companies in the global situation recommend that Craig Manufacturing is growing in an atmosphere where there is possible growth of businesses. Along with this, truth that store customers are mostly seeking office products for office suggests that the market has a climbing pattern of entrepreneurs and online companies.

Social factors: Social patterns in the economic climate show that clients are seeking convenience along with attractive rates. Market research shows how the consumer for Craig Manufacturing lacks understanding about locating solutions which can offer a mix of comfort and inexpensive.

Technological factors: Modern technology plays a vital function in Craig Manufacturing's organisation method particularly as the company is piloting Technology facilities which would offer modern technology sales and assistance in the form of memory upgrades, peripheral installments. (Summary of PEST in appendix 2).

OB Issues and Symptoms.

A number of underlying Business Behavior issues can be seen in Craig Manufacturing's case as highlighted in this area.

Worries regarding cultural modification: There is uneasiness regarding a cultural adjustment that would certainly occur once Todd Krasnow leaves from his position as the Executive Vice President of Marketing with a lot of the personnel currently revealing unhappiness over this prospective move. This predicted change has actually produced tension in the work environment which has been paired with the past tension of preparing the company for a potential merger with House Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is scarcity of employees that can match the difficult atmosphere of a hectic organization. Not only does this lead to trouble in locating the best individuals, it puts stress on new hires as can not stand up to the speed and stress that the organization expects them to birth.

Dual Reporting Lines: Newbies discover this organizational society troublesome as well as difficult to manage particularly as populated line relationships are suggested to be weaker in general and unbiased setup and efficiency examination is still done by the solid line manager. This implies that newcomers could shed clarity regarding their respective roles as well as purposes especially as populated line reporting does not keep them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had actually been guessed that the last would take Krasnow's setting came as a strike to her spirits. Lewis may have been qualified and also suitable for the work yet the reality that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Worry & Work Insecurity: Fear and also insecurity can be identified as two major worries that Lewis would be dealing with specifically as the merging has actually now be cancelled as well as two elderly execs of the advertising and marketing division would certainly be leaving. The whole responsibility of the department would be dropping on Lewis's shoulders who would not just be in charge of brining concerning a social change yet would certainly also have to verify herself in her new function.

Incompatible Administration Design of Leader: Lewis's management style and its incompatibility with the advertising department's duty can also be seen as an OB difficulty particularly as she has actually been used to dealing with issues in the operations department where personnel are educated to focus on procedures and obtain them right. The advertising and marketing department on the other hand can be viewed as a group of people who are made use of to being supported by Krasnow that concentrated extra on result than procedures.

Interdepartmental Differences: Interdepartmental arguments in between 3 departments, advertising, merchandizing and operations specifically over the appropriation of the advertising and marketing mix can be determined as one more OB worry. The marketing division does not share the very same vision as the various other two divisions pertaining to the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and operations divisions do not concur over the advertising mix allowance amongst one an additional either.

Disintegration in Marketing Division: Fragmentation in between the marketing and advertising departments can be recognized as an additional OB issue which can require further interest. The fact that the advertising and marketing sections in the marketing department are separated is protecting against both divisions from acquiring from each other's experience as well as competence. Assimilation of advertising with merchandising as well as procedures would certainly end up being more difficult if the advertising division itself is broken down which can be one more prospective OB concern.

Craig Manufacturing Analysis

Numerous concepts have actually been used to describe the conditions to get more clearness about the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers think that subordinates are passive and lazy, have little ambition and withstand modification. The situation at Craig Manufacturing is not completely complying with Concept X, it can be seen that new hires are finding this environment instead difficult which may at some point lead to a better inclination of the administration towards Theory X. Even while evaluating Lewis's administration design, concept X may have been suitable in the operations division to some level however the Marketing division would certainly need dependence on Theory Y in order to get the imagination and also originality from the teams.

Tuckman's Team effort Concept: Regarding Lewis's worry regarding bringing harmony between the advertising and marketing division is worried, this would initially bring about clash as reviewed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, throughout the first stage of group growth, individuals might not bond, as they are busy locating their place in the group. By incorporating the marketing and advertising division's job, there might be the same preliminary detach which might lead to the 2nd stage of 'storming' where the groups test one another. Nonetheless, it is only during the 3rd phase or 'norming' when they would integrate to share ideas before the group can cause harmony in the fourth stage 'carrying out'.

When individuals are offered with modification, they get in stage one as well as so there may be emotions like sadness, uncertainty, disappointment, anger, concern, denial and disorientation.The circumstance at the advertising department of Craig Manufacturing is comparable so Lewis can get comfortable with the concept that it is not remarkable habits. It is during this phase that Lewis will have to offer assistance to the department so that they can find a sense of instructions. It can be seen just how Krasnow has currently made this change much easier by making Lewis obtain involved in the division a year before his real departure.
Vrio Analysis
Maslow's Need pecking order: The OB issue related to insecurity at the office has been triggered to start with by the adjustment in monitoring and also second of all by the truth that the merger will certainly no longer be started. Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has reviews the value of 'safety needs as being a lower level demand of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the need to really feel protected as well as safe' goes to the second level of needs. Before a worker can be made to establish psychologically, he needs to have his 'Physical 'and also 'Security' needs satisfied. This shows that unless the workers are made to feel protected concerning their present employment standing in Craig Manufacturing they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Craig Manufacturing Case Study

Implication of Analysis.

The OB analysis has actually looked at numerous concepts to comprehend exactly how to cope with the present scenario at hand. The adhering to 3 options have been proposed to help Lewis handle the organizational difficulties in the advertising and marketing department. Each of these options has been suggested for relieving the change required to bring the marketing division in accordance with the requirements of the market as well as for making the cultural change that would comply with once the current leader leaves.

Combination of marketing and advertising features. Separating Adverting and also Manufacturing functions. Integration of Marketing with Procedures.

Examination of Alternatives.

Combination of Advertising And Marketing & Marketing Functions: The internal advertising firm of Craig Manufacturing is already stamina for the company in terms of conserving up on overheads related to advertising and marketing and also promo. Since no new recruitment has actually been done after Bridget Cole's separation with the reporting line being straight assigned to Krasnow for the marketing function, this is a desirable possibility for integrating the advertising and marketing functions. Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merger days has proficiency in business-to-business marketing along with agency and also retail advertising experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both marketing and advertising features.

The advantage of this strategy is that it will certainly incorporate the two functions while decreasing the need for hiring an added source for marketing. In addition to this, Lewis would certainly be heading the advertising and marketing division as well as regardless her substitute would certainly be needed for the existing function that she is doing. The disadvantage of this alternative is that exterior hiring may bring about resentment from internal employees who might be looking at the setting of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Production: Given the affordable pressures and high top quality job called for from the marketing firm, it is suggested that Lewis should enable the production system to be a different feature from the marketing system. Considering that most marketing firms had these 2 functions as different systems, it makes more sense to follow the norm.

Combination of Advertising with Workflows: Given that Lewis is already taking treatment of the advertising and also operations divisions concurrently; it makes feeling to incorporate the two features considering that she has been efficiently taking care of both ends. The truth that Lewis has to adjust her monitoring design for the advertising and marketing division recommends that these two departments would certainly be culturally varied.


An analysis of the three options suggests that assimilation of advertising and procedures would certainly not be a practical move due to the substantial distinctions between the two divisions regardless of the reality that presently Lewis is managing both. While separation of the production function may have been a positive relocation for the advertising division, the fact that it would certainly imply positioning a 3rd function under Lewis's wing means this must be stayed clear of.

Action Plan.
Lewis will certainly take control of the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

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

Lewis will divide herself from operations.

An autonomous management design with worker empowerment will certainly be used in advertising department.

Open door policy and also emphasis on cross department communication will be aimed at getting rid of dissonance.

Backup strategy.

If the integration does not exercise as prepared, a backup strategy would certainly comply with which would certainly divide the production function from the marketing feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising and marketing department without an SVP. Because case the production function will certainly be divided by putting it under an SVP production.