Background and Facts
Diamond Foods Inc B an office products store for tiny and average sized services has lately been involved in planning for a merger with its rival Home Deport, which has impacted efficiency degrees in departmentswith the elderly manager involved in lawful issues put forth by the federal Trade Payment. With the Advertising Head advancing the information of his separation from the company in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the future. With challenges in the form of a potential social change and also reduced staff member morale, the company requires a complete reengineering effort at the advertising division.Issue Statement
The prospective social change at the advertising department of Diamond Foods Inc B is enhancing unpredictability in the workplace resulting in different challenges 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 function in influencing tactical decisions considering that Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Trade Commission's intervention while doing so. Provided the truth that the shop has a worldwide existence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these nations might be able to affect efficiency or critical goals. Federal Profession Commission's antitrust fit versus the merger used up useful time of the company's elderly monitoring recommending that 'political' factors can have major ramifications for a global organisation.
Economic Factors: Economic factors such as the development of small businesses in the worldwide situation suggest that Diamond Foods Inc B is flourishing in an atmosphere where there is possible development of organisations. Truth that store consumers are mostly looking for office products for house offices recommends that the market has a rising fad of business owners and also residence based businesses.
Social factors: Social patterns in the economy show that clients are trying to find benefit as well as appealing prices. Marketing research demonstrates how the customer for Diamond Foods Inc B does not have understanding concerning locating services which can offer a mix of convenience and also affordable.
Technological factors: Modern technology plays an important duty in Diamond Foods Inc B's business approach specifically as the company is piloting Technology facilities which would certainly provide modern technology sales and also assistance in the kind of memory upgrades, outer setups. (Summary of INSECT in appendix 2).
OB Issues and Effects.
Several underlying Business Habits issues can be seen in Diamond Foods Inc B's case as highlighted in this section.
Concerns concerning social adjustment: There is worry about a cultural adjustment that would occur as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with most of the employee currently showing unhappiness over this possible action. This anticipated change has actually produced stress and anxiety in the office which has actually been coupled with the previous anxiety of preparing the company for a potential merger with Home Deport.
Difficult Work Setting for Newcomers: There is scarcity of workers that can match the stressful setting of a busy organization. Not just does this lead to difficulty in finding the ideal people, it puts stress and anxiety on brand-new hires as can not withstand the pace as well as stress that the organization expects them to birth.
Double Reporting Lines: Beginners find this organizational society troublesome as well as difficult to deal with particularly as dotted line relationships are suggested to be weak generally and also unbiased setup and also efficiency analysis is still done by the solid line manager. This implies that beginners might lose clarity regarding their particular functions and objectives specifically as dotted line coverage does not maintain them in straight communication with the solid line managers.
Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had been guessed that the latter would certainly take Krasnow's setting came as an impact to her morale. Lewis might have been qualified and also appropriate for the task however the fact that Kransnow's separation would make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.
Concern & Work Instability: Fear and also insecurity can be identified as 2 significant problems that Lewis would be managing specifically as the merging has actually currently be terminated and two senior executives of the advertising division would be leaving. The whole responsibility of the division would certainly be dropping on Lewis's shoulders who would certainly not simply be in charge of brining about a social modification but would likewise have to show herself in her new function.
Incompatible Administration Design of Leader: Lewis's monitoring style and its conflict with the advertising and marketing department's duty can likewise be seen as an OB challenge specifically as she has been used to handling problems in the operations department where workers are instructed to focus on procedures as well as obtain them. The marketing department on the various other hand can be viewed as a team of individuals who are utilized to being supported by Krasnow that focused more on output than procedures.
Interdepartmental Disputes: Interdepartmental disputes between three departments, advertising, merchandizing and procedures respectively over the allocation of the marketing mix can be recognized as an additional OB issue. The marketing department does not share the very same vision as the various other 2 departments relating to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing as well as operations divisions do not concur over the marketing mix appropriation amongst one an additional either.
Fragmentation in Marketing Division: Disintegration in between the marketing and advertising departments can be determined as an additional OB concern which might need more interest. The truth that the advertising and marketing areas in the advertising department are separated is preventing both departments from obtaining from each other's experience as well as experience. Assimilation of advertising and marketing with retailing and operations would end up being more difficult if the advertising department itself is broken down which can be another possible OB concern.
Diamond Foods Inc B Analysis
Various theories have actually been made use of to describe the circumstances to obtain additional clearness about the scenario handy.
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that staffs are passive and lazy, have little ambition and also stand up to adjustment. The scenario at Diamond Foods Inc B is not entirely complying with Concept X, it can be seen that new hires are discovering this atmosphere rather difficult which may eventually lead to a better inclination of the administration in the direction of Concept X. Also while examining Lewis's monitoring design, concept X might have been appropriate in the procedures division to some level yet the Advertising department would require reliance on Concept Y in order to get the imagination as well as creativity from the groups.
Tuckman's Teamwork Concept: As far as Lewis's worry regarding bringing harmony in between the advertising and marketing department is worried, this would initially lead to conflict as discussed by Bruce Tuckman in his 'Teamwork Theory'. By integrating the marketing as well as advertising division's work, there may be the very same initial disconnect which might lead to the second stage of 'storming' where the groups test one an additional.
When individuals are presented with change, they get in stage one and also so there might be feelings like despair, unpredictability, stress, anger, worry, denial and also disorientation.The circumstance at the marketing department of Diamond Foods Inc B is similar so Lewis can obtain comfortable with the suggestion that it is not remarkable habits. It is throughout this phase that Lewis will certainly have to give support to the division so that they can locate a sense of direction. It can be seen how Krasnow has actually currently made this shift much easier by making Lewis obtain involved in the department a year before his real separation.
Maslow's Demand hierarchy: The OB problem pertaining to insecurity at the workplace has been caused to start with by the adjustment in monitoring and also secondly by the reality that the merger will certainly no longer be initiated. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has goes over the value of 'protection needs as being a lower degree demand of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the demand to really feel safe and also safe' goes to the 2nd level of demands. Before an employee can be made to create psychologically, he needs to have his 'Physiological 'and also 'Safety and security' needs fulfilled. This suggests that unless the employees are made to feel safe about their current work standing in Diamond Foods Inc B they may not get to 'Self-Fulfillment'. (King, 2009).
SWOT Analysis for Diamond Foods Inc B Case Study
Effects of Analysis.
The OB analysis has looked at numerous theories to comprehend just how to handle the existing situation available. The complying with 3 alternatives have been proposed to help Lewis take care of the organizational obstacles in the advertising and marketing department. Each of these choices has been recommended for easing the change required to bring the advertising and marketing division in line with the demands of the market and for making the cultural modification that would adhere to when the present leader leaves.
Integration of advertising and marketing functions. Dividing Adverting and Production features. Integration of Advertising And Marketing with Procedures.
Examination of Alternatives.
Combination of Marketing & Marketing Functions: The internal marketing agency of Diamond Foods Inc B is currently toughness for the organization in terms of saving up on overheads connected to advertising and also promo. Because no brand-new recruitment has been done after Bridget Cole's departure with the reporting line being directly designated to Krasnow for the advertising and marketing feature, this is a beneficial chance for incorporating the marketing and advertising functions. Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merging days has proficiency in business-to-business marketing together with company as well as retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to handle both marketing and advertising features.
The advantage of this strategy is that it will incorporate both functions while lowering the need for hiring an added resource for advertising and marketing. Lewis would be heading the advertising department and in any case her replacement would be required for the existing role that she is carrying out. The downside of this alternative is that external hiring may bring about animosity from internal personnel who may be eying the position of EVP after Lewis takes control of Krasnow's placement.
Dividing Adverting as well as Production: Provided the competitive pressures and high top quality job called for from the advertising and marketing company, it is advised that Lewis should enable the production device to be a different function from the advertising and marketing system. Since most advertising and marketing firms had these 2 functions as different systems, it makes even more sense to follow the norm.
Integration of Advertising with Operations: Since Lewis is already taking treatment of the marketing and procedures departments concurrently; it makes sense to integrate the two functions since she has been effectively taking treatment of both ends. The truth that Lewis has to adjust her management design for the advertising department suggests that these two departments would be culturally varied.
Suggestion.
An assessment of the 3 options shows that integration of marketing and operations would not be a possible action due to the large distinctions between the two divisions regardless of the truth that currently Lewis is handling both. While splitting up of the production function might have been a favorable step for the advertising and marketing division, the reality that it would imply putting a third feature under Lewis's wing indicates this ought to be avoided.
Action Plan.
Lewis will certainly take control of the function of EVP Advertising after Krasnow leaves.
Advertising and Marketing features would be merged.
Judith Shapiro will certainly be hired to take Lewis's place as SVP of marketing and advertising.
Manufacturing function will certainly continue to be part of marketing under advertising and marketing feature.
Lewis will separate herself from operations.
A democratic leadership design with employee empowerment will certainly be made use of in advertising department.
Open door policy and emphasis on cross department interaction will be focused on eliminating discord.
Contingency strategy.
If the assimilation does not work out as intended, a contingency plan would comply with which would certainly divide the manufacturing function from the marketing feature to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising division without an SVP. Because case the production feature will certainly be separated by positioning it under an SVP manufacturing.