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Diamond Foods Inc B Case Study Analysis

Background and Facts

Diamond Foods Inc B a workplace materials merchant for little and medium sized businesses has just recently been associated with planning for a merging with its competitor House Deport, which has actually affected performance levels in departmentswith the elderly supervisor involved in legal problems presented by the government Profession Commission. With the Advertising and marketing Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the role in the near future. With obstacles in the form of a possible cultural adjustment and low worker morale, the company is in need of a full reengineering initiative at the advertising department.

Problem Declaration
Porter's 5 Forces Analysis
The potential social change at the advertising and marketing department of Diamond Foods Inc B is enhancing uncertainty in the workplace resulting in different challenges for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting tactical choices given that Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Profession Compensation's treatment in the process. Given the truth that the shop has a worldwide presence with branches in UK, USA, Canada as well as Germany, political consider each of these nations might be able to affect efficiency or strategic goals. Federal Trade Payment's antitrust fit versus the merger used up valuable time of the organization's senior administration recommending that 'political' factors can have major effects for a worldwide service.

Economic Factors: Economic factors such as the emergence of small companies in the global situation suggest that Diamond Foods Inc B is growing in an atmosphere where there is potential growth of services. In addition to this, truth that shop clients are mainly seeking office materials for home offices suggests that the market has a climbing trend of business owners and home organisations.

Social factors: Social fads in the economic situation reveal that consumers are searching for benefit along with attractive rates. Marketing research shows how the consumer for Diamond Foods Inc B does not have recognition regarding discovering remedies which can use a combination of benefit and affordable.

Technological factors: Innovation plays a vital duty in Diamond Foods Inc B's organisation technique particularly as the company is piloting Technology centers which would use technology sales and assistance in the type of memory upgrades, outer installments. (Summary of PARASITE in appendix 2).

OB Issues and Effects.

Several underlying Business Actions issues can be seen in Diamond Foods Inc B's case as highlighted in this section.

Worries regarding social change: There is apprehension regarding a social change that would happen once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with the majority of the staff members already revealing discontent over this prospective step. This expected change has actually created anxiety in the workplace which has actually been paired with the previous stress and anxiety of preparing the firm for a prospective merging with Home Deport.
Pest Analysis
Stressful Task Environment for Newcomers: There is lack of employees that can match the difficult environment of a busy organization. Not only does this result in problem in finding the best people, it places tension on brand-new hires as can not stand up to the rate and also pressure that the organization anticipates them to birth.

Double Reporting Lines: Novices locate this organizational culture difficult as well as hard to handle particularly as dotted line partnerships are implied to be weaker in general as well as unbiased setup and also efficiency analysis is still done by the solid line manager. This suggests that novices could lose clarity regarding their respective roles and objectives specifically as dotted line coverage does not maintain them in straight communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had actually been speculated that the latter would certainly take Krasnow's setting came as a strike to her morale. Lewis might have been capable and also proper for the task however the fact that Kransnow's separation would make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.

Fear & Task Instability: Worry and also insecurity can be determined as two significant worries that Lewis would certainly be managing specifically as the merging has actually currently be cancelled as well as two elderly executives of the advertising and marketing department would be leaving. The whole duty of the department would certainly be falling on Lewis's shoulders that would certainly not simply be in charge of brining about a social modification but would also need to prove herself in her new function.

Inappropriate Management Style of Leader: Lewis's monitoring style as well as its conflict with the advertising and marketing department's function can also be viewed as an OB obstacle specifically as she has been made use of to managing issues in the operations division where workers are taught to focus on processes as well as get them right. The advertising and marketing department on the other hand can be viewed as a group of individuals who are utilized to being nurtured by Krasnow that concentrated a lot more on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements between three divisions, marketing, merchandizing and also operations respectively over the allowance of the advertising and marketing mix can be determined as an additional OB concern. Although the advertising division does not share the exact same vision as the various other two divisions relating to the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and also procedures departments do not agree over the advertising mix allotment among one another either.

Fragmentation in Advertising Department: Fragmentation in between the advertising and marketing divisions can be recognized as an additional OB concern which can need more interest. The truth that the advertising and marketing sections in the advertising and marketing department are separated is stopping both divisions from gaining from each other's experience as well as experience. Integration of advertising and marketing with merchandising and also procedures would certainly end up being harder if the advertising division itself is disintegrated which can be an additional possible OB concern.

Diamond Foods Inc B Analysis

Various theories have been used to explain the situations to get further quality concerning the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that staffs are easy and careless, have little aspiration and resist modification. The situation at Diamond Foods Inc B is not completely following Theory X, it can be seen that new hires are finding this setting rather demanding which may ultimately lead to a higher disposition of the monitoring towards Concept X. Even while assessing Lewis's monitoring design, theory X may have been suitable in the operations department to some level but the Marketing division would call for reliance on Concept Y in order to get the imagination and originality from the groups.

Tuckman's Team effort Theory: As much as Lewis's concern concerning bringing consistency between the advertising and also advertising and marketing department is worried, this would originally lead to contrast as discussed by Bruce Tuckman in his 'Teamwork Concept'. By incorporating the advertising and marketing and also marketing division's work, there might be the exact same preliminary disconnect which might lead to the second stage of 'storming' where the teams test one an additional.

Bridges' Change Design: As per William Bridge's theory (appendix 4), individuals are rather unpleasant with modification, which is obvious by the circumstance at Diamond Foods Inc B The situation can be seen as a typical course of life if is researched based on Bridge's theory where he explains that individuals go through three phases of transition when they experience modification. 'Closing, losing and Releasing', The Neutral Area and 'The New Beginning' (Bridges, 2004). When individuals exist with adjustment, they enter stage one and so there might be emotions like sadness, uncertainty, stress, rage, fear, rejection and also disorientation.The scenario at the advertising and marketing division of Diamond Foods Inc B is similar so Lewis can obtain comfortable with the idea that it is not remarkable actions. In the 2nd stage, there might be a requirement to link the void in between the brand-new as well as old culture so Lewis might have to encounter this ordeal once Krasnow leaves. There may be low spirits and low performance at this phase which need to not be taken as a problem. It is during this stage that Lewis will have to give assistance to the department so that they can find a sense of direction. It can be seen exactly how Krasnow has already made this shift less complicated by making Lewis get involved in the division a year before his real separation. Based on Bridges' Model, stage three will certainly bring about visibility to understanding, High power and also dedication as individuals will certainly accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has reviews the significance of 'protection needs as being a reduced degree demand of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel safe and secure as well as out of threat' is at the second level of demands. Prior to a worker can be made to develop mentally, he needs to have his 'Physical 'as well as 'Security' requires fulfilled.

SWOT Analysis for Diamond Foods Inc B Case Study

Implication of Analysis.

The OB analysis has checked out various concepts to comprehend how to cope with the current circumstance available. The adhering to three options have actually been proposed to assist Lewis deal with the business obstacles in the marketing division. Each of these choices has been recommended for reducing the change needed to bring the marketing division in line with the requirements of the marketplace and for making the social adjustment that would follow as soon as the existing leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and also Manufacturing features. Assimilation of Marketing with Operations.

Analysis of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merger days has proficiency in business-to-business advertising along with firm as well as retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing and advertising and marketing features.

The advantage of this technique is that it will incorporate the two functions while decreasing the requirement for working with an added resource for marketing. Lewis would certainly be heading the advertising division and in any type of case her substitute would certainly be needed for the current function that she is performing. The disadvantage of this option is that outside hiring might cause resentment from inner employees who might be looking at the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Manufacturing: Provided the competitive stress and also high quality work required from the advertising firm, it is recommended that Lewis must permit the manufacturing system to be a separate feature from the advertising and marketing device. Since the majority of advertising and marketing agencies had these two features as separate units, it makes even more feeling to comply with the standard.

Integration of Advertising with Operations: Given that Lewis is currently taking treatment of the advertising and marketing and also operations divisions all at once; it makes sense to integrate the 2 functions because she has been efficiently taking treatment of both ends. The reality that Lewis has to adapt her management style for the advertising and marketing division recommends that these 2 departments would certainly be culturally diverse.


An assessment of the three choices shows that integration of advertising and marketing and operations would certainly not be a feasible relocation due to the vast distinctions between the two departments regardless of the reality that presently Lewis is handling both. While splitting up of the manufacturing feature may have been a beneficial step for the advertising division, the truth that it would certainly indicate positioning a third function under Lewis's wing implies this must be prevented.

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 be worked with to take Lewis's area as SVP of advertising and marketing.

Manufacturing function will remain component of marketing under advertising feature.

Lewis will divide herself from procedures.

A democratic leadership design with employee empowerment will be utilized in advertising and marketing division.

Open up door policy as well as focus on cross department interaction will certainly be targeted at eliminating dissonance.

Contingency plan.

If the combination does not work out as intended, a backup strategy would adhere to which would separate the manufacturing function from the advertising function to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the advertising and marketing division without an SVP. Because case the production function will certainly be divided by positioning it under an SVP manufacturing.