Menu

Dollarama Inc Case Study Analysis

CASE HELP

Home >> Harvard >> Dollarama Inc >>

Dollarama Inc Case Study Help

Background and Facts

Dollarama Inc a workplace products store for tiny as well as medium sized companies has actually lately been associated with planning for a merger with its rival House Deport, which has influenced effectiveness degrees in departmentswith the elderly manager involved in lawful complications presented by the federal Profession Payment. With the Marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the function in the near future. With challenges in the type of a potential cultural adjustment as well as reduced staff member spirits, the organization wants a full reengineering initiative at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the marketing department of Dollarama Inc is increasing unpredictability in the workplace leading to numerous challenges for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting tactical choices given that Stapes Inc. had to abandon its plans of merging with Office Deport after the Federal Trade Commission's intervention at the same time. Given the fact that the store has a worldwide presence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries might be able to impact performance or critical goals. Federal Trade Commission's antitrust suit versus the merging took up important time of the organization's senior administration suggesting that 'political' factors can have major implications for an international company.

Economic Factors: Economic factors such as the emergence of small companies in the global scenario suggest that Dollarama Inc is growing in a setting where there is potential growth of businesses. Truth that shop clients are mainly looking for office supplies for house workplaces recommends that the market has a rising pattern of entrepreneurs as well as home based companies.

Social factors: Social fads in the economic situation show that clients are seeking ease in addition to appealing prices. Marketing research demonstrates how the consumer for Dollarama Inc does not have recognition concerning discovering solutions which can offer a mix of convenience as well as affordable.

Technical factors: Technology plays a vital role in Dollarama Inc's service approach specifically as the organization is piloting Modern technology centers which would certainly use modern technology sales and support in the form of memory upgrades, outer installations. (Recap of INSECT in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Organizational Habits issues can be seen in Dollarama Inc's case as highlighted in this area.

Worries regarding social modification: There is concern concerning a social change that would certainly occur once Todd Krasnow leaves from his position as the Exec Vice President of Marketing with a lot of the staff members already showing unhappiness over this possible move. This expected adjustment has actually produced stress and anxiety in the workplace which has been combined with the past stress and anxiety of preparing the firm for a possible merging with Residence Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is lack of workers that can match the difficult environment of a hectic organization. Not only does this lead to problem in discovering the appropriate individuals, it places anxiety on brand-new hires as can not endure the speed as well as pressure that the organization expects them to bear.

Double Coverage Lines: Novices discover this business society troublesome and also hard to handle particularly as populated line connections are meant to be weak as a whole and also unbiased setting and efficiency evaluation is still done by the strong line manager. This implies that newbies could lose clearness regarding their respective functions as well as purposes especially as populated line reporting does not maintain them in direct communication with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had been guessed that the last would certainly take Krasnow's placement came as a strike to her spirits. Lewis may have been capable and appropriate for the task however the truth that Kransnow's departure would make Coles a straight report to Lewis may have been the reason for Coles' resignation from solutions.

Anxiety & Job Insecurity: Concern as well as insecurity can be recognized as 2 significant issues that Lewis would certainly be managing especially as the merger has actually currently be cancelled as well as two elderly execs of the advertising and marketing department would certainly be leaving. The whole responsibility of the division would be falling on Lewis's shoulders who would certainly not just supervise of brining about a cultural change but would certainly also have to confirm herself in her brand-new role.

Incompatible Administration Style of Leader: Lewis's management design as well as its incompatibility with the advertising division's duty can additionally be viewed as an OB obstacle particularly as she has actually been used to managing issues in the operations division where employees are instructed to focus on processes and obtain them right. The advertising and marketing division on the other hand can be viewed as a group of individuals that are used to being supported by Krasnow that focused a lot more on result than processes.

Interdepartmental Disagreements: Interdepartmental arguments in between three divisions, advertising, merchandizing as well as operations specifically over the allocation of the advertising and marketing mix can be recognized as one more OB issue. Although the marketing division does not share the exact same vision as the other two divisions relating to the aloocation of the marketing mix twoards promos and advertsing, the merchandizing and operations departments do not concur over the advertising mix allocation among one another either.

Disintegration in Advertising Division: Disintegration in between the advertising and marketing divisions can be determined as one more OB problem which can need further attention. The truth that the marketing and advertising areas in the advertising and marketing division are separated is stopping both divisions from getting from each other's experience and also knowledge. Combination of advertising and marketing with retailing and also operations would certainly come to be more difficult if the advertising department itself is disintegrated which can be one more possible OB issue.

Dollarama Inc Analysis

Different theories have actually been utilized to clarify the situations to obtain more quality concerning the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that juniors are easy and lazy, have little ambition as well as stand up to adjustment. The difficult variation of this concept stressed coercion, limited controls, risks and penalties. Gradually it creates low efficiency, subtle sabotage and competition (Offer, 2003). The situation at Dollarama Inc is not completely following Concept X, it can be seen that new hires are locating this environment instead demanding which may eventually lead to a greater inclination of the administration in the direction of Theory X. According to McGregor's promoted view, which he called Theory Y, the essential task of the administration is to set up organizational conditions to ensure that people can accomplish their own objectives best by directing their efforts in the direction of business incentives. If people locate no fulfillment in their work, the administration would have little option however to count on concept X and external control (Deal, 2003). Even while analyzing Lewis's management style, concept X may have appropriated in the procedures division somewhat but the Advertising department would certainly call for dependence on Concept Y to get the creativity as well as originality from the teams.

Tuckman's Teamwork Theory: As far as Lewis's concern about bringing harmony in between the marketing and advertising department is concerned, this would originally lead to contrast as reviewed by Bruce Tuckman in his 'Synergy Concept'. By incorporating the marketing and also advertising department's job, there might be the exact same first disconnect which can lead to the 2nd phase of 'storming' where the groups test one an additional.

When individuals are offered with change, they get in stage one and so there may be feelings like sadness, unpredictability, disappointment, anger, concern, denial and disorientation.The scenario at the advertising and marketing department of Dollarama Inc is comparable so Lewis can obtain comfy with the concept that it is not extraordinary behavior. It is throughout this stage that Lewis will certainly have to provide support to the department so that they can find a sense of instructions. It can be seen just how Krasnow has already made this shift less complicated by making Lewis obtain included in the division a year prior to his real separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has reviews the relevance of 'safety and security needs as being a reduced degree requirement of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel safe and secure and also out of threat' is at the 2nd level of needs. Before a staff member can be made to create emotionally, he needs to have his 'Physical 'as well as 'Safety and security' requires fulfilled.

SWOT Analysis for Dollarama Inc Case Study



Ramification of Analysis.

The OB analysis has looked at numerous theories to recognize just how to cope with the present situation handy. The complying with three alternatives have actually been recommended to help Lewis handle the business obstacles in the marketing division. Each of these choices has been suggested for easing the transition needed to bring the advertising department according to the demands of the market and for making the cultural change that would certainly comply with as soon as the current leader leaves.

Integration of marketing and advertising features. Dividing Adverting and Manufacturing functions. Integration of Advertising with Operations.

Analysis of Alternatives.

Assimilation of Marketing & Marketing Functions: The in-house marketing company of Dollarama Inc is already strength for the company in terms of saving up on expenses associated with advertising and marketing as well as promo. Considering that no new employment has been done after Bridget Cole's departure with the reporting line being straight appointed to Krasnow for the advertising feature, this is a beneficial chance for integrating the marketing and advertising features. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merger days has know-how in business-to-business advertising along with firm as well as retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both advertising and marketing features.

The advantage of this method is that it will certainly incorporate the two features while decreasing the requirement for employing an additional resource for marketing. In addition to this, Lewis would be heading the advertising and marketing division as well as regardless her replacement would be required for the present duty that she is executing. The drawback of this option is that outside hiring might cause bitterness from inner personnel who might be looking at the placement of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and also Production: Provided the affordable pressures as well as high quality job required from the advertising agency, it is suggested that Lewis needs to allow the manufacturing system to be a separate function from the marketing device. Given that a lot of ad agency had these two features as separate devices, it makes more feeling to adhere to the norm. In addition to this, both functions may have the ability to concentrate on their core triggers a lot more effectively. The disadvantage of this technique would be that added costs would have to be birthed for setting up separate manufacturing functions. In addition to this, a production head may have to be hired which could increase overheads for the organization.

Combination of Advertising And Marketing with Workflows: Since Lewis is currently looking after the advertising and marketing as well as operations divisions concurrently; it makes sense to incorporate both features because she has been effectively taking care of both ends. The fact that the two divisions currently have significant differences over allocation of resources recommends that this combination may be able to bring about consistency particularly as Lewis would be heading both ends.However there are various disadvantages of this step specifically as it would certainly put excessive concern over Lewis's shoulders. The fact that Lewis has to adapt her monitoring style for the advertising division suggests that these two divisions would certainly be culturally diverse. Lewis may not be able to use one type of leadership style to both departments which might result in inadequacy in either one of the 2 functions.

Recommendation.



An examination of the three options indicates that assimilation of marketing as well as operations would not be a possible relocation because of the huge differences in between the two departments despite the fact that presently Lewis is handling both. While splitting up of the production function may have been a positive step for the advertising division, the fact that it would mean positioning a 3rd feature under Lewis's wing indicates this ought to be stayed clear of too. The assimilation of the advertising and marketing department is the very best choice in regards to getting the ideal results from the division. An action plan for this option is gone over listed below.

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

Marketing and advertising features would be combined.

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

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

Lewis will certainly divide herself from operations.

An autonomous leadership design with staff member empowerment will certainly be utilized in marketing department.

Open door plan and also emphasis on cross departmental communication will be aimed at getting rid of disharmony.

Backup plan.

If the combination does not work out as intended, a backup strategy would adhere to which would certainly divide the manufacturing feature from the advertising feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the marketing division without an SVP. Because case the production function will most definitely be separated by putting it under an SVP production.