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Cumberland Worldwide Corp B Case Study Solution

CASE SOLUTION

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Cumberland Worldwide Corp B Case Study Solution

Background and Facts

Cumberland Worldwide Corp B an office supplies merchant for tiny as well as moderate sized companies has recently been involved in planning for a merging with its competitor Home Deport, which has impacted efficiency levels in departmentswith the elderly manager associated with legal complications presented by the federal Trade Compensation. With the Marketing Head advancing the news of his separation from the company in one year, Jeannie Lewis, the present head of operations has been asked to take the function in the future. With difficulties in the form of a potential cultural modification and reduced worker spirits, the organization requires a full reengineering effort at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The prospective social change at the advertising and marketing division of Cumberland Worldwide Corp B is boosting uncertainty in the working environment resulting in different 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 significant role in impacting strategic decisions given that Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Profession Compensation's treatment while doing so. Given the reality that the shop has an international existence with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these nations might be able to impact performance or strategic goals. Federal Trade Payment's antitrust match against the merging occupied valuable time of the company's elderly administration suggesting that 'political' factors can have major ramifications for a worldwide business.

Economic Factors: Financial factors such as the appearance of small companies in the worldwide situation suggest that Cumberland Worldwide Corp B is prospering in a setting where there is possible development of organisations. Along with this, reality that shop consumers are mainly seeking office products for home offices suggests that the marketplace has a rising trend of entrepreneurs and home based organisations.

Social factors: Social fads in the economic climate reveal that clients are searching for ease as well as appealing prices. Market research shows how the client for Cumberland Worldwide Corp B lacks understanding regarding locating solutions which can supply a mix of comfort and also inexpensive.

Technological factors: Innovation plays a crucial function in Cumberland Worldwide Corp B's service method especially as the organization is piloting Technology centers which would supply innovation sales and assistance in the kind of memory upgrades, outer installations. (Summary of PARASITE in appendix 2).

OB Issues and Symptoms.

Numerous underlying Organizational Behavior concerns can be seen in Cumberland Worldwide Corp B's case as highlighted in this area.

Apprehensions regarding social change: There is uneasiness regarding a cultural change that would certainly take place when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with a lot of the staff members currently revealing discontent over this potential step. This expected adjustment has developed stress and anxiety in the work environment which has actually been coupled with the previous tension of preparing the firm for a prospective merging with House Deport.
Pest Analysis
Demanding Work Environment for Newcomers: There is lack of personnel that can match the difficult atmosphere of a fast-paced company. Not only does this lead to difficulty in discovering the right people, it places stress on brand-new hires as can not endure the pace as well as pressure that the organization anticipates them to birth.

Twin Reporting Lines: Newbies find this organizational society troublesome and tough to deal with especially as populated line connections are suggested to be weak generally and unbiased setup as well as performance analysis is still done by the strong line supervisor. This implies that novices can shed clarity about their corresponding functions and objectives especially as dotted line coverage does not maintain them in direct communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles despite the fact that it had been speculated that the last would take Krasnow's placement came as an impact to her morale. Lewis might have been capable and ideal for the work however the reality that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Work Insecurity: Fear as well as instability can be recognized as 2 significant problems that Lewis would certainly be handling especially as the merger has actually now be cancelled as well as 2 senior executives of the marketing division would be leaving. The entire duty of the department would certainly be dropping on Lewis's shoulders that would not simply supervise of brining about a social adjustment but would certainly additionally need to confirm herself in her new duty.

Inappropriate Administration Design of Leader: Lewis's administration design and also its incompatibility with the advertising department's duty can also be seen as an OB challenge specifically as she has actually been used to taking care of issues in the operations division where workers are educated to focus on processes as well as obtain them. The advertising and marketing department on the other hand can be viewed as a group of people that are made use of to being nurtured by Krasnow who focused much more on outcome than procedures.

Interdepartmental Differences: Interdepartmental arguments in between three departments, marketing, merchandizing as well as procedures respectively over the allotment of the marketing mix can be identified as another OB worry. The advertising division does not share the very same vision as the other 2 divisions regarding the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing as well as procedures divisions do not concur over the marketing mix allotment amongst one an additional either.

Fragmentation in Advertising And Marketing Division: Fragmentation between the advertising and marketing departments can be recognized as an additional OB problem which could require further interest. The fact that the advertising and marketing areas in the marketing department are disconnected is preventing both divisions from acquiring from each other's experience and also know-how. Integration of advertising with merchandising as well as procedures would certainly become more difficult if the marketing department itself is degenerated which can be one more possible OB issue.

Cumberland Worldwide Corp B Analysis

Various concepts have actually been used to discuss the circumstances to obtain more clearness about the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors think that staffs are passive as well as careless, have little aspiration as well as withstand modification. The scenario at Cumberland Worldwide Corp B is not completely complying with Concept X, it can be seen that brand-new hires are finding this environment rather stressful which may eventually lead to a better disposition of the monitoring in the direction of Theory X. Even while evaluating Lewis's monitoring design, theory X may have been suitable in the operations department to some degree but the Advertising division would require reliance on Concept Y in order to obtain the creative thinking and also creativity from the teams.

Tuckman's Synergy Concept: Regarding Lewis's worry about bringing consistency between the advertising and marketing department is concerned, this would initially lead to contrast as discussed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, throughout the preliminary phase of team advancement, people might not bond, as they are hectic discovering their location in the group. By integrating the advertising and marketing division's job, there may be the same initial detach which can cause the second stage of 'storming' where the groups test one another. It is just during the 3rd phase or 'norming' when they would come together to share ideas prior to the team can bring about synergy in the 4th stage 'carrying out'.

When people are provided with adjustment, they go into phase one as well as so there might be feelings like unhappiness, unpredictability, disappointment, rage, concern, rejection and also disorientation.The scenario at the advertising department of Cumberland Worldwide Corp B is comparable so Lewis can obtain comfy with the concept that it is not remarkable actions. It is during this stage that Lewis will have to give assistance to the department so that they can discover a feeling of instructions. It can be seen exactly how Krasnow has currently made this shift less complicated by making Lewis obtain entailed in the division a year prior to his real departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has discusses the value of 'safety needs as being a lower degree need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel secure and also out of threat' is at the second level of demands. Before a worker can be made to establish mentally, he requires to have his 'Physiological 'and 'Security' needs satisfied.

SWOT Analysis for Cumberland Worldwide Corp B Case Study



Ramification of Analysis.

The OB analysis has considered various concepts to comprehend exactly how to handle the existing circumstance handy. The adhering to 3 options have actually been suggested to assist Lewis take care of the organizational challenges in the marketing department. Each of these alternatives has actually been proposed for reducing the change needed to bring the advertising and marketing department in line with the demands of the marketplace as well as for making the social adjustment that would comply with as soon as the present leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting as well as Manufacturing features. Assimilation of Advertising with Operations.

Assessment of Alternatives.

Assimilation of Marketing & Marketing Functions: The in-house advertising company of Cumberland Worldwide Corp B is already toughness for the company in regards to conserving up on expenses associated with advertising and marketing as well as promotion. Considering that no new employment has been done after Bridget Cole's separation with the coverage line being directly appointed to Krasnow for the advertising and marketing function, this is a desirable possibility for incorporating the advertising and marketing functions. Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merger days has knowledge in business-to-business advertising and marketing together with company and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to manage both advertising and marketing features.

The benefit of this technique is that it will certainly incorporate the two features while decreasing the requirement for working with an additional source for advertising and marketing. In addition to this, Lewis would be heading the advertising department and also in any case her replacement would be needed for the existing role that she is executing. The drawback of this option is that exterior hiring may produce animosity from inner employees that may be considering the setting of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Production: Provided the competitive pressures and also high quality work called for from the marketing firm, it is suggested that Lewis should permit the manufacturing unit to be a different feature from the advertising device. Because a lot of marketing firms had these 2 functions as different units, it makes even more sense to adhere to the norm.

Assimilation of Advertising with Operations: Because Lewis is currently caring for the advertising and marketing and operations departments simultaneously; it makes good sense to integrate both functions considering that she has actually been successfully dealing with both ends. The fact that both divisions currently have significant differences over allowance of resources suggests that this integration might be able to produce harmony especially as Lewis would certainly be heading both ends.However there are different downsides of this action specifically as it would certainly put excessive burden over Lewis's shoulders. The fact that Lewis has to adjust her monitoring style for the marketing division recommends that these two divisions would certainly be culturally varied. In addition to this, Lewis might not have the ability to apply one type of management design to both departments which might result in inefficiency in either one of the two functions.

Referral.



An assessment of the 3 alternatives indicates that assimilation of advertising and also procedures would certainly not be a feasible action as a result of the vast distinctions between both departments although that currently Lewis is dealing with both. While separation of the manufacturing function might have been a beneficial step for the advertising and marketing division, the fact that it would indicate placing a 3rd feature under Lewis's wing implies this must be prevented too. The integration of the advertising division is the most effective choice in terms of obtaining the optimal results from the division. An activity plan for this option is talked about listed below.

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

Marketing and advertising functions would be merged.

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

Manufacturing feature will certainly stay component of advertising and marketing under advertising feature.

Lewis will certainly divide herself from procedures.

A democratic management style with worker empowerment will be used in marketing division.

Open up door plan as well as focus on cross departmental communication will be focused on getting rid of discord.

Backup strategy.

If the assimilation does not exercise as prepared, a backup plan would adhere to which would separate the production function from the marketing feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the marketing division without an SVP. Because case the manufacturing function will definitely be separated by putting it under an SVP production.