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Eddie Bauer A Case Study Analysis

CASE SOLUTION

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Background and Facts

Eddie Bauer A an office materials retailer for little and also average sized services has just recently been involved in planning for a merger with its rival Residence Deport, which has actually influenced performance degrees in departmentswith the elderly supervisor involved in lawful problems presented by the government Trade Commission. With the Advertising Head advancing the information of his separation from the company in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the near future. With challenges in the type of a prospective social change and reduced staff member spirits, the organization is in need of a complete reengineering initiative at the marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising and marketing department of Eddie Bauer A is boosting uncertainty in the workplace leading to various challenges for the Jeannie Lewis that would 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 because Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Payment's treatment while doing so. Offered the fact that the store has an international existence with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these nations may have the ability to affect efficiency or strategic goals. Federal Profession Commission's antitrust match versus the merging occupied beneficial time of the company's elderly administration suggesting that 'political' factors can have significant implications for a global organisation.

Economic Factors: Financial factors such as the appearance of small businesses in the worldwide scenario recommend that Eddie Bauer A is growing in an environment where there is prospective growth of services. In addition to this, fact that store customers are primarily seeking office materials for office recommends that the market has a rising fad of entrepreneurs as well as home companies.

Social factors: Social trends in the economic climate reveal that customers are searching for ease along with eye-catching prices. Market research demonstrates how the consumer for Eddie Bauer A does not have recognition about finding solutions which can offer a combination of comfort and also inexpensive.

Technical factors: Innovation plays an important duty in Eddie Bauer A's company method specifically as the organization is piloting Innovation centers which would supply 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 Behavior concerns can be seen in Eddie Bauer A's case as highlighted in this area.

Concerns regarding social change: There is concern about a cultural change that would occur as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising And Marketing with a lot of the staff members already revealing discontent over this possible action. This anticipated modification has developed tension in the office which has actually been paired with the previous stress and anxiety of preparing the company for a potential merging with Residence Deport.
Pest Analysis
Demanding Work Atmosphere for Newcomers: There is shortage of employees that can match the demanding setting of a busy company. Not only does this lead to difficulty in finding the best individuals, it puts stress and anxiety on brand-new hires as can not endure the pace and also stress that the organization anticipates them to bear.

Double Reporting Lines: Newbies find this organizational society troublesome and also difficult to deal with particularly as populated line connections are indicated to be weaker generally and objective setup and also performance assessment is still done by the solid line manager. This means that newcomers can shed quality concerning their particular duties and also purposes particularly as populated line coverage does not keep them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had actually been hypothesized that the latter would take Krasnow's placement came as a strike to her spirits. Lewis might have been qualified and ideal for the work yet the fact that Kransnow's separation would make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Worry & Task Instability: Anxiety and also instability can be identified as two significant worries that Lewis would be dealing with especially as the merger has actually now be cancelled as well as 2 elderly executives of the advertising and marketing department would certainly be leaving. The entire duty of the division would certainly be dropping on Lewis's shoulders that would certainly not just supervise of brining about a social change however would additionally have to prove herself in her brand-new function.

Inappropriate Monitoring Style of Leader: Lewis's management style as well as its incompatibility with the marketing division's function can also be seen as an OB challenge especially as she has actually been used to dealing with issues in the operations department where personnel are instructed to concentrate on processes and get them right. The advertising department on the other hand can be viewed as a group of people who are utilized to being supported by Krasnow who concentrated more on outcome than processes.

Interdepartmental Disagreements: Interdepartmental arguments in between 3 divisions, marketing, merchandizing as well as procedures specifically over the appropriation of the advertising and marketing mix can be identified as another OB concern. The advertising division does not share the same vision as the other 2 departments relating to the aloocation of the advertising mix twoards promos and advertsing, the merchandizing as well as operations divisions do not concur over the advertising mix allowance amongst one an additional either.

Fragmentation in Advertising And Marketing Department: Fragmentation in between the advertising and marketing divisions can be determined as one more OB issue which can need further attention. The fact that the advertising and marketing areas in the advertising and marketing department are separated is preventing both divisions from obtaining from each various other's experience and also proficiency. Combination of advertising and marketing with retailing and also operations would come to be more difficult if the marketing department itself is disintegrated which can be an additional potential OB worry.

Eddie Bauer A Analysis

Different theories have been utilized to clarify the scenarios to obtain more clearness regarding the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers think that staffs are passive and also lazy, have little ambition and also stand up to modification. The difficult variation of this theory emphasized coercion, limited controls, dangers and punishments. Gradually it produces reduced efficiency, refined sabotage and also competition (Offer, 2003). Although the scenario at Eddie Bauer A is not entirely complying with Concept X, it can be seen that new hires are locating this environment rather stressful which may ultimately result in a better disposition of the administration in the direction of Theory X. According to McGregor's advocated view, which he called Concept Y, the crucial job of the administration is to arrange business conditions to ensure that people can attain their own objectives best by routing their efforts towards organizational rewards. If people discover no complete satisfaction in their job, the monitoring would have little selection however to count on concept X and also outside control (Offer, 2003). Even while analyzing Lewis's monitoring design, concept X might have appropriated in the procedures division to some extent yet the Advertising department would require dependence on Concept Y so as to get the imagination and also creativity from the teams.

Tuckman's Synergy Concept: As for Lewis's problem about bringing harmony between the advertising and marketing department is worried, this would originally cause conflict as gone over by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). As per Tuckman's theory displayed in appendix 3, throughout the first phase of group development, individuals might not bond, as they are hectic finding their area in the team. By combining the advertising and marketing division's work, there might coincide first disconnect which could bring about the 2nd phase of 'storming' where the groups test one another. It is just throughout the third phase or 'norming' when they would certainly come together to share ideas prior to the team can bring around harmony in the 4th stage 'doing'.

Bridges' Shift Model: According To William Bridge's concept (appendix 4), individuals are fairly uncomfortable with adjustment, which is evident by the circumstance at Eddie Bauer A The circumstance can be seen as a regular training course of life if is studied as per Bridge's theory where he clarifies that people undergo 3 phases of transition when they experience change. 'End, shedding and also Letting go', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When people exist with adjustment, they enter phase one therefore there might be feelings like despair, unpredictability, stress, anger, concern, denial as well as disorientation.The situation at the marketing division of Eddie Bauer A is similar so Lewis can get comfy with the concept that it is not extraordinary actions. In the 2nd stage, there might be a demand to bridge the gap in between the new as well as old society so Lewis might need to face this experience as soon as Krasnow leaves. There might be reduced morale and also low performance at this stage which should not be taken as an obstacle. It is during this phase that Lewis will need to provide advice to the division to ensure that they can find an orientation. It can be seen exactly how Krasnow has actually already made this change much easier by making Lewis get involved in the department a year prior to his actual departure. According to Bridges' Design, phase 3 will certainly produce openness to knowing, High power as well as commitment as people will embrace the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has goes over the relevance of 'safety and security requires as being a reduced level need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel protected as well as out of danger' is at the second degree of requirements. Before an employee can be made to establish mentally, he requires to have his 'Physiological 'and 'Security' needs fulfilled.

SWOT Analysis for Eddie Bauer A Case Study



Ramification of Analysis.

The OB analysis has looked at different theories to recognize just how to deal with the present circumstance at hand. The complying with three alternatives have actually been proposed to assist Lewis handle the business obstacles in the advertising division. Each of these choices has actually been recommended for alleviating the transition needed to bring the advertising and marketing division in line with the needs of the market and for making the cultural adjustment that would certainly follow once the existing leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting as well as Manufacturing functions. Integration of Advertising with Procedures.

Analysis of Alternatives.

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

The benefit of this strategy is that it will integrate both functions while minimizing the need for employing an extra resource for marketing. Lewis would be heading the advertising department and also in any case her replacement would certainly be required for the current duty that she is carrying out. The downside of this alternative is that outside hiring may produce animosity from interior personnel that might be looking at the position of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and also Production: Offered the competitive stress and also high top quality work required from the advertising and marketing agency, it is advised that Lewis should allow the production unit to be a separate feature from the advertising and marketing system. Considering that most advertising agencies had these two functions as separate devices, it makes even more feeling to follow the standard.

Combination of Advertising And Marketing with Operations: Because Lewis is already caring for the marketing as well as procedures divisions all at once; it makes good sense to incorporate the two functions because she has been successfully caring for both ends. The reality that the two departments already have significant differences over allocation of sources recommends that this assimilation might have the ability to cause harmony particularly as Lewis would be heading both ends.However there are numerous downsides of this action particularly as it would put excessive concern over Lewis's shoulders. The reality that Lewis has to adapt her administration design for the marketing department suggests that these 2 departments would certainly be culturally diverse. Lewis might not be able to apply one type of leadership design to both departments which can result in ineffectiveness in either one of the 2 features.

Recommendation.



An evaluation of the 3 options indicates that integration of marketing as well as procedures would not be a possible step due to the vast differences between the two departments in spite of the truth that currently Lewis is dealing with both. While splitting up of the production feature might have been a desirable step for the marketing department, the truth that it would certainly mean putting a 3rd feature under Lewis's wing means this ought to be stayed clear of.

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

Marketing and advertising functions would certainly be merged.

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

Production function will certainly remain part of advertising under advertising and marketing function.

Lewis will certainly divide herself from procedures.

An autonomous management style with staff member empowerment will certainly be utilized in advertising and marketing division.

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

Backup plan.

If the combination does not exercise as intended, a backup plan would certainly comply with which would certainly divide the manufacturing function from the advertising and marketing function to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising and marketing department without an SVP. In that case the production feature will definitely be separated by putting it under an SVP production.