Eddie Bauer A Case Study Analysis


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Background and Facts

Eddie Bauer A an office supplies merchant for little and also medium sized organisations has actually recently been involved in preparing for a merging with its rival Residence Deport, which has impacted efficiency degrees in departmentswith the elderly supervisor involved in legal difficulties put forth by the federal Trade Commission. With the Advertising Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the near future. With difficulties in the type of a prospective cultural modification as well as reduced employee spirits, the organization requires a full reengineering effort at the advertising division.

Trouble Statement
Porter's 5 Forces Analysis
The potential cultural modification at the advertising division of Eddie Bauer A is boosting unpredictability in the workplace resulting in different difficulties 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 significant function in affecting strategic choices since Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Trade Payment's treatment in the process. Given the fact that the store has a worldwide existence with branches in UK, USA, Canada and Germany, political consider each of these nations might be able to affect efficiency or calculated objectives. Federal Profession Commission's antitrust suit against the merging occupied beneficial time of the company's senior administration recommending that 'political' factors can have significant effects for a global service.

Economic Factors: Financial factors such as the development of local business in the global scenario recommend that Eddie Bauer A is flourishing in an environment where there is prospective development of businesses. Along with this, reality that store consumers are mostly trying to find office products for home offices recommends that the marketplace has a rising trend of entrepreneurs and home organisations.

Social factors: Social fads in the economy show that consumers are seeking ease in addition to appealing prices. Market research shows how the customer for Eddie Bauer A does not have recognition regarding finding options which can offer a mix of comfort as well as affordable.

Technological factors: Innovation plays an essential duty in Eddie Bauer A's business method specifically as the organization is piloting Technology facilities which would provide technology sales as well as support in the form of memory upgrades, peripheral setups. (Summary of BUG in appendix 2).

OB Issues and Effects.

Several underlying Organizational Behavior problems can be seen in Eddie Bauer A's case as highlighted in this section.

Uneasiness about social change: There is uneasiness concerning a social change that would certainly take place when Todd Krasnow leaves from his setting as the Exec Vice President of Advertising And Marketing with the majority of the staff members already showing discontent over this possible action. This expected change has actually produced tension in the office which has actually been paired with the past stress and anxiety of preparing the company for a possible merger with House Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is lack of personnel that can match the stressful setting of a busy organization. Not just does this bring about problem in finding the appropriate people, it places tension on new hires as can not stand up to the rate as well as stress that the company expects them to bear.

Twin Coverage Lines: Newcomers locate this organizational society difficult and also difficult to cope with particularly as populated line relationships are indicated to be weak generally and also unbiased setting and efficiency examination is still done by the solid line supervisor. This suggests that novices can lose clearness regarding their corresponding roles and purposes especially as populated line coverage does not maintain them in direct interaction with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had been guessed that the latter would certainly take Krasnow's placement came as a blow to her spirits. Lewis may have been capable and appropriate for the task but the fact that Kransnow's separation would make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Anxiety & Work Insecurity: Fear as well as insecurity can be identified as two significant worries that Lewis would be dealing with specifically as the merger has currently be terminated and also two elderly execs of the advertising and marketing department would be leaving. The entire responsibility of the department would be falling on Lewis's shoulders that would not simply be in charge of brining concerning a cultural modification yet would certainly also have to confirm herself in her brand-new function.

Incompatible Administration Design of Leader: Lewis's monitoring style as well as its conflict with the marketing division's duty can likewise be seen as an OB challenge especially as she has actually been utilized to handling issues in the operations department where employees are instructed to focus on procedures as well as get them. The marketing department on the various other hand can be seen as a group of people who are utilized to being supported by Krasnow that concentrated much more on output than procedures.

Interdepartmental Differences: Interdepartmental differences in between 3 departments, advertising, merchandizing and operations respectively over the allowance of the advertising and marketing mix can be recognized as one more OB problem. The advertising and marketing department does not share the same vision as the other 2 divisions regarding the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and operations divisions do not concur over the marketing mix allocation amongst one an additional either.

Disintegration in Advertising And Marketing Department: Disintegration between the marketing and advertising departments can be determined as one more OB problem which might require additional interest. The truth that the advertising and marketing areas in the advertising division are disconnected is avoiding both departments from gaining from each other's experience and also competence. Integration of advertising with merchandising as well as procedures would certainly come to be more difficult if the marketing division itself is disintegrated which can be another potential OB problem.

Eddie Bauer A Analysis

Different concepts have been made use of to describe the scenarios to get further clearness regarding the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that subordinates are easy as well as careless, have little aspiration as well as resist change. The hard variation of this concept emphasized coercion, limited controls, risks and also penalties. In time it creates reduced performance, subtle sabotage as well as competition (Deal, 2003). The scenario at Eddie Bauer A is not totally adhering to Concept X, it can be seen that brand-new hires are finding this setting rather demanding which may at some point lead to a better inclination of the management towards Theory X. As per McGregor's supported sight, which he called Theory Y, the vital job of the monitoring is to arrange organizational problems so that people can attain their very own objectives best by guiding their efforts in the direction of business incentives. If people discover no fulfillment in their job, the administration would certainly have little choice yet to rely upon concept X and external control (Deal, 2003). Even while assessing Lewis's management design, theory X may have been suitable in the operations division somewhat but the Advertising and marketing division would certainly call for reliance on Concept Y so as to get the creativity and also creativity from the groups.

Tuckman's Synergy Concept: Regarding Lewis's worry concerning bringing consistency between the advertising and marketing division is concerned, this would originally result in clash as gone over by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, during the initial stage of group advancement, individuals may not bond, as they are active finding their area in the group. By combining the marketing and advertising department's work, there might be the same initial separate which might cause the 2nd stage of 'storming' where the teams challenge each other. However, it is just during the third stage or 'norming' when they would certainly come together to share concepts prior to the team can bring about harmony in the fourth stage 'executing'.

When people are provided with change, they go into phase one and so there might be emotions like sadness, uncertainty, aggravation, temper, fear, denial as well as disorientation.The scenario at the advertising and marketing department of Eddie Bauer A is comparable so Lewis can obtain comfortable with the concept that it is not remarkable behavior. It is during this phase that Lewis will have to provide guidance to the division so that they can find a sense of instructions. It can be seen how Krasnow has actually already made this transition less complicated by making Lewis obtain involved in the division a year before his real departure.
Vrio Analysis
Maslow's Need hierarchy: The OB issue pertaining to insecurity at the office has been triggered firstly by the change in monitoring as well as second of all by the reality that the merging will no more be started. Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has reviews the value of 'safety needs as being a lower degree requirement of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel safe as well as unharmed' is at the 2nd degree of requirements. Before an employee can be made to develop psychologically, he needs to have his 'Physiological 'and also 'Safety' needs met. This shows that unless the workers are made to feel safe concerning their existing work condition in Eddie Bauer A they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Eddie Bauer A Case Study

Implication of Analysis.

The OB analysis has considered numerous theories to comprehend how to deal with the current scenario handy. The adhering to 3 options have been suggested to help Lewis handle the business challenges in the marketing department. Each of these options has been proposed for alleviating the transition required to bring the advertising department in accordance with the needs of the marketplace as well as for making the social modification that would comply with when the existing leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting as well as Manufacturing functions. Integration of Marketing with Workflow.

Assessment of Alternatives.

Combination of Marketing & Advertising And Marketing Functions: The in-house marketing company of Eddie Bauer A is already stamina for the company in regards to conserving up on overheads related to advertising as well as promo. Since no brand-new recruitment has actually been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the marketing feature, this is a positive possibility for integrating the marketing and advertising functions. Judith Shapiro that has earlier been spoken with by Lewis during the earlier merger days has proficiency in business-to-business advertising and marketing in addition to company and 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 benefit of this technique is that it will certainly incorporate both features while lowering the requirement for employing an extra resource for advertising. Along with this, Lewis would certainly be heading the advertising department and in any case her replacement would be required for the existing role that she is executing. The downside of this alternative is that external hiring might produce bitterness from interior workers that might be considering the position of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and also Manufacturing: Offered the competitive pressures as well as high top quality job required from the advertising and marketing agency, it is recommended that Lewis must permit the manufacturing device to be a separate feature from the advertising unit. Given that the majority of advertising and marketing companies had these two features as separate systems, it makes more feeling to adhere to the norm.

Combination of Advertising And Marketing with Operations: Because Lewis is currently taking treatment of the advertising and marketing and operations divisions at the same time; it makes sense to integrate the two features considering that she has actually been effectively taking care of both ends. The truth that Lewis has to adjust her administration design for the advertising department suggests that these 2 departments would certainly be culturally diverse.


An evaluation of the 3 alternatives indicates that integration of advertising and operations would not be a practical relocation because of the vast distinctions between the two divisions although that presently Lewis is handling both. While splitting up of the production function may have been a positive move for the advertising division, the truth that it would certainly mean putting a 3rd function under Lewis's wing means this must be prevented also. The combination of the marketing division is the very best choice in terms of obtaining the ideal arise from the division. An action prepare for this alternative is talked about below.

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

Advertising and Marketing features would be combined.

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

Production feature will continue to be part of marketing under marketing feature.

Lewis will certainly separate herself from operations.

An autonomous leadership style with worker empowerment will certainly be used in marketing department.

Open door plan and also focus on cross department interaction will be focused on eliminating disharmony.

Backup strategy.

If the combination does not work out as prepared, a contingency strategy would certainly comply with which would certainly 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 obtain worked with, Lewis will certainly be heading the advertising division without an SVP. Because case the production function will certainly be separated by positioning it under an SVP manufacturing.