Craig Manufacturing Case Study Analysis


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Craig Manufacturing Case Study Solution

Background and Facts

Craig Manufacturing an office supplies seller for tiny as well as medium sized businesses has actually recently been involved in planning for a merging with its rival House Deport, which has actually affected performance levels in departmentswith the senior manager involved in lawful difficulties presented by the federal Profession Compensation. With the Marketing Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the duty in the future. With difficulties in the type of a prospective social change as well as reduced employee spirits, the company is in need of a full reengineering effort at the marketing department.

Issue Statement
Porter's 5 Forces Analysis
The potential social change at the marketing division of Craig Manufacturing is enhancing uncertainty in the workplace resulting in different challenges for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting tactical choices because Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Trade Compensation's intervention in the process. Offered the fact that the shop has a global presence with branches in UK, U.S.A., Canada and Germany, political factors in each of these nations might have the ability to influence efficiency or tactical goals. Federal Profession Commission's antitrust suit against the merging occupied important time of the company's elderly administration recommending that 'political' factors can have major effects for an international business.

Economic Factors: Economic factors such as the introduction of local business in the global circumstance suggest that Craig Manufacturing is flourishing in an atmosphere where there is potential development of companies. Truth that store customers are mainly looking for workplace supplies for house offices suggests that the market has a climbing pattern of business owners and also home based organisations.

Social factors: Social trends in the economic situation reveal that customers are seeking ease in addition to eye-catching costs. Marketing research demonstrates how the client for Craig Manufacturing lacks recognition about discovering solutions which can offer a mix of convenience as well as inexpensive.

Technical factors: Innovation plays an important duty in Craig Manufacturing's service technique especially as the company is piloting Technology centers which would certainly supply innovation sales and also assistance in the form of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues as well as Effects.

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

Concerns concerning cultural adjustment: There is concern concerning a cultural modification that would occur when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with the majority of the personnel already revealing unhappiness over this possible relocation. This predicted adjustment has developed stress and anxiety in the work environment which has actually been coupled with the past tension of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is lack of employees that can match the demanding atmosphere of a busy organization. Not just does this cause problem in finding the appropriate individuals, it puts anxiety on brand-new hires as can not endure the rate and also stress that the company anticipates them to birth.

Dual Reporting Lines: Beginners find this organizational society difficult and challenging to handle especially as dotted line relationships are indicated to be weaker as a whole and also objective setup and efficiency examination is still done by the strong line supervisor. This suggests that novices can lose clarity concerning their corresponding duties and goals especially as populated line reporting does not maintain them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had been hypothesized that the latter would certainly take Krasnow's setting came as a blow to her morale. Lewis may have been qualified and also appropriate for the task but the reality that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from services.

Worry & Work Insecurity: Concern and also insecurity can be recognized as two significant concerns that Lewis would be dealing with especially as the merger has actually now be cancelled and also two senior executives of the marketing division would be leaving. The whole duty of the department would certainly be falling on Lewis's shoulders that would not simply supervise of brining regarding a social change but would certainly likewise need to confirm herself in her brand-new role.

Incompatible Administration Style of Leader: Lewis's management design and its conflict with the marketing department's role can likewise be seen as an OB obstacle particularly as she has actually been used to taking care of concerns in the operations department where employees are instructed to concentrate on processes as well as get them right. The marketing department on the other hand can be viewed as a team of people who are made use of to being nurtured by Krasnow that concentrated more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental disputes between 3 divisions, marketing, merchandizing and also procedures respectively over the allowance of the advertising mix can be recognized as one more OB problem. Although the advertising and 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 as well as advertsing, the merchandizing and also operations departments do not concur over the marketing mix allocation amongst each other either.

Fragmentation in Advertising Department: Fragmentation in between the advertising and marketing departments can be recognized as an additional OB issue which can require more interest. The reality that the marketing and advertising sections in the advertising and marketing division are detached is protecting against both departments from gaining from each various other's experience and knowledge. Integration of advertising with retailing and procedures would certainly become harder if the advertising department itself is degenerated which can be one more potential OB concern.

Craig Manufacturing Analysis

Various theories have been utilized to explain the circumstances to obtain more clearness about the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers think that subordinates are passive as well as lazy, have little passion and also resist adjustment. The difficult version of this theory emphasized browbeating, tight controls, threats as well as punishments. With time it produces reduced performance, subtle sabotage as well as rivalry (Bargain, 2003). Although the situation at Craig Manufacturing is not completely adhering to Concept X, it can be seen that new hires are discovering this environment rather difficult which may ultimately lead to a higher disposition of the management towards Concept X. Based on McGregor's promoted sight, which he called Concept Y, the vital task of the administration is to set up business conditions to ensure that people can accomplish their very own goals best by guiding their efforts in the direction of organizational rewards. If people find no satisfaction in their job, the administration would have little selection however to count on theory X as well as outside control (Bargain, 2003). Even while evaluating Lewis's management design, theory X may have appropriated in the procedures department somewhat yet the Advertising and marketing division would need reliance on Theory Y to get the imagination as well as creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's concern regarding bringing consistency between the marketing and advertising department is concerned, this would at first bring about conflict as reviewed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, during the initial phase of group development, individuals may not bond, as they are hectic finding their location in the group. By integrating the advertising and marketing division's job, there may coincide initial disconnect which might cause the second phase of 'storming' where the groups challenge each other. It is only during the third phase or 'norming' when they would certainly come with each other to share ideas prior to the group can bring about synergy in the fourth stage 'carrying out'.

When people are provided with change, they enter phase one as well as so there may be feelings like despair, uncertainty, disappointment, temper, worry, rejection and disorientation.The situation at the advertising department of Craig Manufacturing is comparable so Lewis can obtain comfortable with the idea that it is not phenomenal actions. It is during this stage that Lewis will certainly have to offer guidance to the division so that they can find a sense of direction. It can be seen just how Krasnow has actually currently made this transition much easier by making Lewis obtain entailed in the department a year prior to his actual separation.
Vrio Analysis
Maslow's Requirement pecking order: The OB concern pertaining to insecurity at the office has actually been activated firstly by the adjustment in monitoring and also secondly by the truth that the merger will no more be started. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has talks about the significance of 'security requires as being a reduced degree requirement of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel secure as well as out of danger' goes to the second degree of demands. Prior to a worker can be made to develop emotionally, he requires to have his 'Physical 'and 'Safety and security' requires fulfilled. This suggests that unless the workers are made to really feel safe about their present employment status in Craig Manufacturing they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Craig Manufacturing Case Study

Ramification of Analysis.

The OB analysis has checked out various concepts to recognize exactly how to deal with the current scenario at hand. The following three choices have actually been recommended to aid Lewis take care of the organizational challenges in the advertising and marketing department. Each of these options has actually been recommended for relieving the shift required to bring the advertising department in line with the requirements of the marketplace as well as for making the cultural modification that would adhere to when the existing leader leaves.

Integration of marketing and advertising features. Dividing Adverting and Production functions. Integration of Advertising with Operations.

Analysis of Alternatives.

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

The benefit of this method is that it will certainly integrate both features while reducing the requirement for employing an extra source for marketing. Along with this, Lewis would be heading the advertising division as well as all the same her substitute would certainly be needed for the present function that she is executing. The disadvantage of this alternative is that exterior hiring may cause bitterness from inner personnel who may be eying the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Production: Given the competitive stress and high quality job called for from the advertising and marketing company, it is recommended that Lewis ought to allow the production unit to be a different feature from the marketing device. Since a lot of marketing companies had these two features as separate systems, it makes even more feeling to comply with the standard.

Integration of Advertising with Workflows: Because Lewis is currently taking care of the advertising and marketing and also procedures divisions concurrently; it makes feeling to integrate the two functions considering that she has been successfully taking treatment of both ends. The truth that Lewis has to adjust her management design for the advertising department suggests that these 2 departments would certainly be culturally diverse.


An assessment of the three alternatives indicates that combination of advertising and operations would certainly not be a possible action due to the vast differences between the two divisions despite the fact that currently Lewis is managing both. While splitting up of the production feature might have been a beneficial move for the advertising and marketing division, the truth that it would certainly indicate putting a third feature under Lewis's wing implies this ought to be stayed clear of also. The assimilation of the marketing division is the most effective choice in terms of getting the optimum arise from the department. An activity prepare for this alternative is discussed below.

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

Advertising and Marketing features would be merged.

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

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

Lewis will divide herself from procedures.

An autonomous management style with employee empowerment will be utilized in advertising department.

Open door policy as well as emphasis on cross department communication will be aimed at eliminating dissonance.

Contingency plan.

If the assimilation does not exercise as planned, a backup strategy would adhere to which would certainly divide the production feature from the advertising feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the manufacturing feature will most definitely be divided by putting it under an SVP production.