Craig Manufacturing Case Study Solution


Home >> Harvard >> Craig Manufacturing >>

Craig Manufacturing Case Study Analysis

Background and Facts

Craig Manufacturing a workplace products store for tiny and also moderate sized companies has lately been involved in preparing for a merger with its competitor Home Deport, which has actually influenced performance levels in departmentswith the elderly supervisor associated with legal issues presented by the federal Profession Compensation. With the Advertising Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the existing head of procedures has been asked to take the duty in the future. With obstacles in the kind of a potential cultural modification and also low staff member spirits, the company wants a total reengineering initiative at the advertising division.

Trouble Statement
Porter's 5 Forces Analysis
The possible social change at the marketing department of Craig Manufacturing is boosting uncertainty in the working environment leading to numerous difficulties for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting critical decisions since Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Trade Commission's treatment at the same time. Provided the fact that the shop has a worldwide visibility with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries might have the ability to impact efficiency or strategic goals. Federal Trade Compensation's antitrust match versus the merger used up important time of the organization's senior administration recommending that 'political' factors can have major ramifications for an international service.

Economic Factors: Economic factors such as the appearance of small companies in the global circumstance recommend that Craig Manufacturing is prospering in an atmosphere where there is prospective development of companies. Truth that store consumers are primarily looking for office supplies for home workplaces recommends that the market has an increasing pattern of business owners and also house based companies.

Social factors: Social fads in the economic situation show that customers are searching for convenience in addition to attractive rates. Market research demonstrates how the client for Craig Manufacturing lacks understanding regarding discovering remedies which can offer a mix of benefit as well as inexpensive.

Technical factors: Modern technology plays an important role in Craig Manufacturing's organisation method specifically as the organization is piloting Innovation centers which would certainly use innovation sales as well as support in the kind of memory upgrades, peripheral installments. (Summary of PARASITE in appendix 2).

OB Issues and Manifestations.

Numerous underlying Business Behavior concerns can be seen in Craig Manufacturing's case as highlighted in this section.

Uneasiness regarding cultural modification: There is uneasiness about a cultural adjustment that would certainly occur as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising And Marketing with a lot of the staff members currently showing unhappiness over this potential action. This expected modification has actually created stress in the office which has been coupled with the previous tension of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is lack of employees that can match the demanding atmosphere of a fast-paced organization. Not only does this cause problem in finding the right people, it places anxiety on new hires as can not endure the speed as well as pressure that the company expects them to bear.

Twin Coverage Lines: Newcomers find this organizational culture troublesome as well as tough to cope with especially as populated line partnerships are indicated to be weaker as a whole as well as objective setting and also performance evaluation is still done by the solid line supervisor. This suggests that beginners could shed quality concerning their respective duties and also objectives especially as dotted line coverage does not maintain them in straight communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had actually been guessed that the last would take Krasnow's setting came as an impact to her morale. Lewis may have been capable and suitable for the task yet the reality that Kransnow's separation would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Fear & Work Instability: Worry as well as instability can be identified as 2 significant concerns that Lewis would be dealing with specifically as the merger has actually now be terminated and two senior executives of the advertising and marketing division would certainly be leaving. The whole responsibility of the department would be dropping on Lewis's shoulders that would not just be in charge of brining concerning a cultural adjustment yet would certainly likewise have to show herself in her brand-new role.

Inappropriate Management Style of Leader: Lewis's monitoring style as well as its incompatibility with the marketing division's function can likewise be seen as an OB difficulty particularly as she has been used to dealing with concerns in the operations department where personnel are taught to focus on processes as well as get them. The advertising division on the various other hand can be viewed as a team of individuals that are made use of to being nurtured by Krasnow who concentrated a lot more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between three divisions, marketing, merchandizing and also procedures specifically over the appropriation of the advertising and marketing mix can be determined as another OB problem. The advertising and marketing department does not share the exact same vision as the other two departments regarding the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as procedures departments do not agree over the advertising mix appropriation amongst one another either.

Fragmentation in Advertising Department: Disintegration in between the advertising and marketing divisions can be recognized as one more OB problem which could need additional interest. The truth that the advertising and marketing areas in the advertising and marketing division are separated is avoiding both divisions from obtaining from each various other's experience and proficiency. Combination of advertising and marketing with retailing as well as procedures would certainly become harder if the advertising and marketing department itself is disintegrated which can be an additional prospective OB problem.

Craig Manufacturing Analysis

Numerous concepts have actually been utilized to describe the situations to get additional clearness regarding the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most supervisors think that staffs are passive as well as lazy, have little aspiration and resist adjustment. The hard version of this theory stressed browbeating, limited controls, hazards and punishments. In time it creates reduced productivity, subtle sabotage and also rivalry (Offer, 2003). The scenario at Craig Manufacturing is not totally following Theory X, it can be seen that brand-new hires are discovering this atmosphere instead difficult which may eventually lead to a better inclination of the monitoring in the direction of Concept X. As per McGregor's supported view, which he called Theory Y, the crucial task of the monitoring is to prepare organizational problems to ensure that individuals can achieve their own objectives best by routing their efforts in the direction of business benefits. If individuals find no satisfaction in their job, the monitoring would certainly have little option however to rely upon concept X and outside control (Offer, 2003). Also while examining Lewis's monitoring style, concept X may have been suitable in the operations division to some extent but the Advertising and marketing division would require dependence on Concept Y in order to get the imagination and originality from the groups.

Tuckman's Teamwork Concept: As far as Lewis's worry concerning bringing consistency between the marketing and advertising division is concerned, this would at first lead to contrast as talked about by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). According to Tuckman's theory received appendix 3, during the first stage of group growth, people might not bond, as they are active locating their area in the team. By incorporating the advertising and marketing division's job, there might coincide first detach which might result in the second phase of 'storming' where the groups test each other. It is only throughout the third stage or 'norming' when they would come with each other to share concepts before the group can bring around harmony in the fourth phase 'doing'.

Bridges' Shift Version: According To William Bridge's concept (appendix 4), people are rather unpleasant with change, which is evident by the scenario at Craig Manufacturing The scenario can be viewed as a normal course of life if is examined as per Bridge's theory where he explains that people experience three phases of change when they experience modification. 'Closing, shedding and Releasing', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When individuals exist with change, they go into phase one and so there may be emotions like unhappiness, uncertainty, disappointment, temper, worry, rejection and also disorientation.The scenario at the advertising and marketing department of Craig Manufacturing is comparable so Lewis can get comfy with the idea that it is not extraordinary actions. In the second stage, there may be a requirement to bridge the space in between the brand-new and old culture so Lewis may need to face this experience as soon as Krasnow leaves. There may be reduced spirits and also low efficiency at this stage which should not be taken as a problem. It is throughout this stage that Lewis will need to offer support to the department to make sure that they can discover a sense of direction. It can be seen exactly how Krasnow has already made this transition much easier by making Lewis get associated with the division a year before his actual departure. Based on Bridges' Model, stage three will certainly cause visibility to learning, High power and commitment as individuals will certainly accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has talks about the importance of 'security needs as being a reduced degree demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel safe as well as out of risk' is at the second degree of demands. Prior to an employee can be made to create psychologically, he needs to have his 'Physiological 'as well as 'Safety and security' requires fulfilled.

SWOT Analysis for Craig Manufacturing Case Study

Ramification of Analysis.

The OB analysis has looked at numerous theories to recognize exactly how to deal with the existing circumstance handy. The adhering to 3 alternatives have been proposed to assist Lewis take care of the organizational challenges in the marketing division. Each of these options has been proposed for alleviating the transition needed to bring the advertising and marketing department according to the needs of the marketplace as well as for making the cultural change that would comply with when the present leader leaves.

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

Examination of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merger days has expertise in business-to-business marketing along with firm as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both advertising and also advertising and marketing functions.

The benefit of this method is that it will incorporate both functions while reducing the demand for working with an additional source for marketing. Lewis would be heading the marketing division and in any type of case her substitute would certainly be needed for the present role that she is carrying out. The downside of this alternative is that outside hiring might cause resentment from inner employees that might be looking at the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Manufacturing: Given the affordable pressures and high quality work required from the ad agency, it is suggested that Lewis needs to permit the manufacturing device to be a different function from the advertising and marketing device. Since many advertising agencies had these two functions as separate units, it makes even more sense to adhere to the standard. In addition to this, both functions might have the ability to concentrate on their core triggers extra effectively. Nonetheless, the negative aspect of this method would certainly be that additional prices would need to be borne for establishing separate manufacturing functions. A production head may have to be employed which could increase overheads for the organization.

Assimilation of Advertising And Marketing with Workflows: Because Lewis is currently taking care of the advertising and marketing and also procedures departments all at once; it makes sense to integrate the two functions because she has actually been effectively looking after both ends. The fact that the two divisions currently have significant differences over allowance of sources suggests that this combination may be able to cause harmony particularly as Lewis would be heading both ends.However there are different negative aspects of this relocation especially as it would put excessive worry over Lewis's shoulders. The truth that Lewis needs to adjust her management design for the advertising and marketing department recommends that these two divisions would certainly be culturally varied. Along with this, Lewis may not have the ability to use one type of management style to both divisions which can result in inadequacy in either among both functions.


An evaluation of the 3 options shows that integration of advertising as well as procedures would not be a possible step due to the vast differences between the two departments despite the reality that currently Lewis is dealing with both. While separation of the production function might have been a beneficial move for the advertising and marketing department, the fact that it would indicate putting a 3rd function under Lewis's wing indicates this should be prevented.

Activity Strategy.
Lewis will take over the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

Manufacturing feature will stay part of advertising under advertising and marketing feature.

Lewis will certainly divide herself from operations.

A democratic leadership style with employee empowerment will certainly be used in advertising department.

Open door plan and emphasis on cross department communication will certainly be focused on getting rid of dissonance.

Contingency plan.

If the assimilation does not work out as intended, a backup strategy would certainly comply with which would divide the production feature from the advertising 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 manufacturing function will most definitely be divided by placing it under an SVP manufacturing.