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Cumberland Worldwide Corp B Case Study Analysis

Background and Facts

Cumberland Worldwide Corp B a workplace supplies retailer for tiny and moderate sized businesses has just recently been involved in planning for a merging with its competitor House Deport, which has impacted effectiveness degrees in departmentswith the elderly manager associated with lawful complications presented by the federal Trade Commission. With the Advertising and marketing Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the future. With obstacles in the kind of a prospective cultural modification and reduced worker morale, the company needs a full reengineering initiative at the marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural change at the marketing division of Cumberland Worldwide Corp B is enhancing uncertainty in the working environment bring about different challenges for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting critical choices since Stapes Inc. had to abandon its strategies of combining with Workplace Deport after the Federal Trade Compensation's intervention at the same time. Offered the fact that the shop has a worldwide existence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations might have the ability to influence efficiency or strategic objectives. Federal Profession Compensation's antitrust match against the merging took up useful time of the company's senior monitoring suggesting that 'political' factors can have serious implications for a worldwide company.

Economic Factors: Economic factors such as the development of small companies in the international circumstance recommend that Cumberland Worldwide Corp B is thriving in an environment where there is prospective development of services. Along with this, fact that shop customers are mostly searching for office materials for home offices suggests that the marketplace has a rising trend of entrepreneurs and home based companies.

Social factors: Social patterns in the economic situation show that customers are seeking ease as well as eye-catching costs. Market research demonstrates how the client for Cumberland Worldwide Corp B does not have understanding regarding locating solutions which can offer a combination of convenience and affordable.

Technical factors: Modern technology plays a crucial duty in Cumberland Worldwide Corp B's business strategy especially as the company is piloting Technology facilities which would offer modern technology sales and also support in the type of memory upgrades, peripheral setups. (Recap of INSECT in appendix 2).

OB Issues and Symptoms.

A number of underlying Business Actions concerns can be seen in Cumberland Worldwide Corp B's case as highlighted in this area.

Apprehensions regarding social change: There is concern concerning a cultural modification that would certainly occur when Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with most of the team member already revealing unhappiness over this potential relocation. This expected change has actually developed anxiety in the work environment which has been coupled with the previous stress and anxiety of preparing the company for a possible merger with House Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is lack of workers that can match the demanding setting of a busy organization. Not just does this cause problem in discovering the ideal individuals, it places tension on new hires as can not endure the speed and stress that the company expects them to birth.

Twin Coverage Lines: Newbies locate this business society cumbersome and hard to handle specifically as populated line partnerships are implied to be weak in general and also unbiased setup as well as performance evaluation is still done by the strong line supervisor. This means that newbies could lose clearness concerning their respective duties as well as objectives particularly as dotted line coverage does not maintain them in straight interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had actually been hypothesized that the latter would take Krasnow's setting came as an impact to her spirits. Lewis may have been capable and suitable for the job however the fact that Kransnow's departure would make Coles a direct record to Lewis may have been the factor for Coles' resignation from solutions.

Concern & Job Insecurity: Concern as well as insecurity can be recognized as two significant problems that Lewis would certainly be dealing with particularly as the merger has actually now be terminated and also 2 elderly execs of the advertising department would certainly be leaving. The whole duty of the department would be dropping on Lewis's shoulders who would not simply be in charge of brining regarding a cultural change but would certainly also need to verify herself in her new duty.

Inappropriate Management Style of Leader: Lewis's management style as well as its incompatibility with the advertising and marketing division's role can also be viewed as an OB difficulty particularly as she has been used to handling concerns in the procedures division where workers are instructed to concentrate on processes and also get them right. The advertising division on the various other hand can be seen as a group of individuals that are utilized to being nurtured by Krasnow who concentrated much more on result than processes.

Interdepartmental Disagreements: Interdepartmental disagreements in between three departments, advertising, merchandizing as well as procedures specifically over the allocation of the marketing mix can be determined as an additional OB issue. Although the marketing department does not share the same vision as the various other 2 departments pertaining to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing as well as procedures departments do not agree over the marketing mix appropriation amongst each other either.

Disintegration in Advertising And Marketing Department: Disintegration in between the marketing and advertising divisions can be recognized as another OB issue which could require additional attention. The truth that the advertising and marketing areas in the advertising and marketing department are disconnected is preventing both divisions from acquiring from each other's experience and also knowledge. Integration of advertising and marketing with retailing and also procedures would become more difficult if the advertising department itself is degenerated which can be another potential OB worry.

Cumberland Worldwide Corp B Analysis

Various theories have been used to discuss the scenarios to obtain additional quality regarding the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors think that subordinates are easy and careless, have little aspiration as well as resist adjustment. The situation at Cumberland Worldwide Corp B is not entirely complying with Theory X, it can be seen that brand-new hires are locating this atmosphere instead stressful which might ultimately lead to a higher inclination of the administration in the direction of Concept X. Also while analyzing Lewis's management design, theory X may have been ideal in the operations department to some degree yet the Marketing division would certainly need reliance on Concept Y in order to get the creativity as well as originality from the teams.

Tuckman's Teamwork Theory: Regarding Lewis's problem regarding bringing consistency between the advertising and marketing division is concerned, this would at first result in contrast as reviewed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, throughout the preliminary phase of team advancement, people might not bond, as they are active locating their area in the group. By combining the marketing and advertising department's job, there might be the same preliminary separate which could result in the second phase of 'storming' where the teams challenge each other. However, it is only throughout the 3rd stage or 'norming' when they would come together to share concepts before the team can produce synergy in the 4th stage 'performing'.

Bridges' Change Design: Based On William Bridge's concept (appendix 4), people are fairly unpleasant with change, which is obvious by the circumstance at Cumberland Worldwide Corp B The scenario can be seen as a regular training course of life if is studied based on Bridge's concept where he describes that people go through three phases of change when they experience adjustment. 'End, shedding and also Letting go', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When people exist with adjustment, they get in phase one therefore there might be emotions like despair, uncertainty, irritation, anger, fear, rejection as well as disorientation.The circumstance at the advertising division of Cumberland Worldwide Corp B is comparable so Lewis can get comfy with the concept that it is not amazing actions. In the second phase, there may be a requirement to connect the space in between the new as well as old culture so Lewis may need to face this experience when Krasnow leaves. There may be low morale and also reduced productivity at this stage which must not be taken as a trouble. It is during this stage that Lewis will certainly have to provide assistance to the division so that they can find an orientation. It can be seen exactly how Krasnow has actually currently made this transition simpler by making Lewis obtain involved in the division a year before his actual separation. Based on Bridges' Design, phase three will produce visibility to knowing, High energy and also commitment as individuals will embrace the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has goes over the value of 'protection needs as being a lower degree requirement of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel safe and also out of danger' is at the second degree of demands. Prior to a staff member can be made to develop emotionally, he requires to have his 'Physical 'and also 'Safety and security' needs satisfied.

SWOT Analysis for Cumberland Worldwide Corp B Case Study

Effects of Analysis.

The OB analysis has considered numerous concepts to comprehend just how to handle the present circumstance available. The adhering to 3 alternatives have actually been suggested to help Lewis manage the business obstacles in the advertising and marketing division. Each of these alternatives has been recommended for reducing the transition needed to bring the marketing division in accordance with the requirements of the marketplace and for making the cultural change that would certainly comply with once the current leader leaves.

Integration of advertising and marketing features. Separating Adverting and Production features. Combination of Advertising with Operations.

Assessment of Alternatives.

Assimilation of Advertising And Marketing & Advertising Functions: The in-house advertising firm of Cumberland Worldwide Corp B is already stamina for the company in terms of saving up on expenses related to marketing and promo. Considering that no brand-new employment has been done after Bridget Cole's departure with the reporting line being straight assigned to Krasnow for the marketing feature, this is a beneficial chance for incorporating the marketing and advertising functions. Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merging days has knowledge in business-to-business advertising together with company and retail advertising and marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both advertising and marketing functions.

The advantage of this technique is that it will certainly integrate both features while reducing the demand for employing an extra source for advertising and marketing. Along with this, Lewis would be heading the advertising and marketing department as well as in any case her substitute would be needed for the present role that she is doing. The disadvantage of this alternative is that outside hiring might cause resentment from internal employees who might be looking at the placement of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Production: Given the affordable pressures as well as top quality work called for from the ad agency, it is recommended that Lewis must permit the manufacturing unit to be a separate function from the marketing unit. Given that a lot of advertising agencies had these 2 features as separate systems, it makes more feeling to adhere to the standard. Both functions might be able to focus on their core turns on much more successfully. The negative aspect of this approach would certainly be that added costs would certainly have to be borne for establishing up separate production features. A production head might have to be worked with which could raise overheads for the organization.

Assimilation of Advertising And Marketing with Workflows: Because Lewis is currently taking care of the advertising and marketing as well as procedures divisions all at once; it makes sense to incorporate the 2 features given that she has actually been successfully taking treatment of both ends. The truth that Lewis has to adapt her management design for the advertising division suggests that these 2 divisions would certainly be culturally diverse.


An examination of the three alternatives suggests that combination of marketing and operations would certainly not be a possible move because of the substantial distinctions in between both departments despite the fact that presently Lewis is dealing with both. While separation of the production feature may have been a desirable move for the advertising and marketing division, the truth that it would suggest putting a third function under Lewis's wing implies this need to be prevented. The assimilation of the advertising division is the very best alternative in regards to obtaining the ideal arise from the division. An activity prepare for this choice is talked about below.

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

Marketing and advertising features would certainly be combined.

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

Production function will continue to be component of advertising under advertising and marketing feature.

Lewis will divide herself from procedures.

An autonomous management design with staff member empowerment will be made use of in advertising and marketing division.

Open door policy and focus on cross departmental communication will be focused on removing disharmony.

Backup strategy.

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