Eddie Bauer B Case Study Solution


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Eddie Bauer B Case Study Solution

Background and Facts

Eddie Bauer B a workplace materials retailer for small and moderate sized businesses has actually lately been associated with preparing for a merging with its rival Residence Deport, which has actually affected effectiveness degrees in departmentswith the senior supervisor associated with lawful difficulties presented by the government Profession Commission. With the Marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the current head of operations has been asked to take the function in the near future. With challenges in the kind of a possible cultural change as well as low staff member morale, the company is in need of a total reengineering effort at the advertising department.

Problem Declaration
Porter's 5 Forces Analysis
The prospective social adjustment at the marketing division of Eddie Bauer B is enhancing unpredictability in the workplace bring about numerous challenges for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting tactical decisions since Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Profession Compensation's treatment while doing so. Given the fact that the store has an international presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations may have the ability to influence efficiency or critical goals. Federal Trade Compensation's antitrust fit versus the merging occupied useful time of the organization's elderly monitoring suggesting that 'political' factors can have major effects for an international organisation.

Economic Factors: Financial factors such as the appearance of local business in the worldwide scenario suggest that Eddie Bauer B is flourishing in an atmosphere where there is prospective growth of companies. Along with this, reality that store clients are mainly trying to find office products for home offices recommends that the marketplace has a climbing fad of business owners and online services.

Social factors: Social patterns in the economy show that clients are trying to find ease along with attractive rates. Market research demonstrates how the consumer for Eddie Bauer B does not have awareness concerning discovering remedies which can provide a mix of convenience as well as low costs.

Technical factors: Technology plays an important function in Eddie Bauer B's business strategy particularly as the company is piloting Innovation facilities which would certainly supply innovation sales and also support in the kind of memory upgrades, peripheral installments. (Summary of BUG in appendix 2).

OB Issues as well as Effects.

A number of underlying Organizational Habits problems can be seen in Eddie Bauer B's case as highlighted in this area.

Apprehensions about social modification: There is concern about a social modification that would certainly happen when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with most of the employee currently revealing discontent over this prospective relocation. This anticipated change has actually created tension in the work environment which has actually been coupled with the past tension of preparing the firm for a possible merger with House Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is shortage of employees that can match the demanding setting of a fast-paced company. Not just does this cause trouble in discovering the ideal individuals, it puts stress on brand-new hires as can not stand up to the speed as well as stress that the company anticipates them to birth.

Dual Reporting Lines: Newcomers discover this organizational culture troublesome and tough to deal with specifically as populated line relationships are suggested to be weak as a whole and also objective setting and also performance analysis is still done by the strong line supervisor. This indicates that novices can lose clarity about their particular duties and also objectives especially as dotted line coverage does not maintain them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had actually been hypothesized that the last would take Krasnow's placement came as a blow to her morale. Lewis may have been qualified and also suitable for the job however the fact that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Job Instability: Worry and also insecurity can be determined as 2 significant worries that Lewis would be taking care of especially as the merger has actually now be terminated as well as two senior executives of the advertising department would be leaving. The entire obligation of the department would be dropping on Lewis's shoulders that would not just be in charge of brining concerning a cultural adjustment however would likewise need to prove herself in her new role.

Inappropriate Monitoring Style of Leader: Lewis's administration design and its incompatibility with the marketing department's role can likewise be seen as an OB challenge especially as she has actually been used to handling concerns in the operations division where workers are shown to concentrate on procedures and obtain them right. The advertising and marketing department on the other hand can be seen as a group of people that are made use of to being nurtured by Krasnow who concentrated extra on outcome than processes.

Interdepartmental Arguments: Interdepartmental arguments in between three divisions, advertising, merchandizing and also procedures specifically over the allocation of the advertising mix can be recognized as one more OB issue. Although the advertising and marketing division does not share the same vision as the other 2 departments regarding the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as procedures departments do not agree over the advertising and marketing mix allotment among one another either.

Fragmentation in Advertising Division: Disintegration between the advertising and marketing departments can be recognized as another OB concern which could need additional attention. The reality that the marketing and advertising areas in the marketing department are separated is stopping both departments from acquiring from each other's experience and also proficiency. Assimilation of advertising with retailing and also operations would certainly come to be harder if the marketing division itself is broken down which can be an additional prospective OB concern.

Eddie Bauer B Analysis

Numerous concepts have actually been used to clarify the scenarios to get further quality about the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers think that juniors are passive as well as lazy, have little ambition and resist adjustment. The situation at Eddie Bauer B is not entirely adhering to Concept X, it can be seen that brand-new hires are finding this environment rather difficult which may eventually lead to a higher inclination of the monitoring in the direction of Concept X. Even while assessing Lewis's management design, concept X might have been suitable in the operations department to some degree but the Marketing department would call for reliance on Theory Y in order to obtain the creativity and creativity from the groups.

Tuckman's Teamwork Theory: As much as Lewis's issue about bringing consistency between the advertising as well as advertising and marketing division is worried, this would initially lead to clash as gone over by Bruce Tuckman in his 'Synergy Concept'. By combining the advertising and marketing as well as advertising division's work, there might be the exact same first disconnect which could lead to the 2nd stage of 'storming' where the groups challenge one an additional.

When people are offered with change, they enter stage one and so there might be feelings like despair, unpredictability, irritation, rage, fear, rejection and also disorientation.The scenario at the marketing division of Eddie Bauer B is similar so Lewis can get comfy with the suggestion that it is not phenomenal habits. It is during this stage that Lewis will have to provide guidance to the department so that they can discover a feeling of instructions. It can be seen just how Krasnow has already made this change easier by making Lewis get included in the division a year prior to his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has reviews the significance of 'safety needs as being a lower degree requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel protected and also out of risk' is at the second level of needs. Prior to a worker can be made to develop psychologically, he needs to have his 'Physical 'and also 'Safety' needs met.

SWOT Analysis for Eddie Bauer B Case Study

Implication of Analysis.

The OB analysis has checked out various theories to understand exactly how to handle the current situation handy. The following three options have been recommended to assist Lewis deal with the business challenges in the advertising department. Each of these choices has actually been suggested for easing the change required to bring the marketing department in line with the needs of the market and for making the social adjustment that would certainly adhere to when the existing leader leaves.

Combination of advertising and marketing features. Separating Adverting and also Production functions. Assimilation of Advertising with Operations.

Assessment of Alternatives.

Integration of Marketing & Marketing Functions: The in-house advertising and marketing company of Eddie Bauer B is already strength for the company in regards to conserving up on expenses associated with marketing and promotion. Given that no brand-new recruitment has been done after Bridget Cole's departure with the coverage line being directly appointed to Krasnow for the advertising feature, this is a favorable chance for integrating the advertising and marketing features. Judith Shapiro who has earlier been interviewed by Lewis during the earlier merger days has experience in business-to-business advertising and marketing together with firm and also retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both marketing and advertising features.

The benefit of this strategy is that it will certainly incorporate both features while minimizing the need for working with an extra source for marketing. Lewis would certainly be heading the advertising division and in any type of case her replacement would be required for the present function that she is executing. The negative aspect of this option is that external hiring may bring about resentment from internal personnel that might be looking at the position of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and also Production: Given the competitive pressures and also high quality job called for from the advertising agency, it is suggested that Lewis must allow the production system to be a separate function from the advertising system. Considering that a lot of advertising agencies had these two features as different systems, it makes even more feeling to follow the norm. In addition to this, both functions may be able to focus on their core turns on a lot more successfully. However, the drawback of this strategy would certainly be that extra expenses would need to be birthed for setting up separate production features. In addition to this, a manufacturing head might need to be hired which might boost overheads for the company.

Combination of Advertising And Marketing with Operations: Since Lewis is already taking care of the marketing and also operations divisions at the same time; it makes good sense to incorporate the two functions because she has actually been successfully taking care of both ends. The reality that the two departments currently have significant differences over allowance of resources suggests that this combination may have the ability to produce harmony specifically as Lewis would be heading both ends.However there are numerous negative aspects of this step especially as it would place excessive problem over Lewis's shoulders. The fact that Lewis has to adapt her monitoring design for the marketing division suggests that these two departments would certainly be culturally varied. Along with this, Lewis might not have the ability to apply one sort of management style to both divisions which could result in inadequacy in either one of the two functions.


An analysis of the three options shows that integration of advertising as well as operations would not be a practical action due to the huge differences between both divisions although that currently Lewis is dealing with both. While separation of the manufacturing feature may have been a beneficial step for the marketing division, the fact that it would certainly imply placing a third function under Lewis's wing indicates this need to be avoided. The combination of the advertising and marketing division is the most effective alternative in regards to obtaining the optimum results from the division. An activity prepare for this choice is reviewed below.

Activity Strategy.
Lewis will certainly take control of the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be combined.

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

Manufacturing function will certainly remain component of marketing under marketing feature.

Lewis will certainly divide herself from procedures.

A democratic management style with worker empowerment will certainly be used in advertising department.

Open door plan as well as emphasis on cross departmental communication will certainly be aimed at getting rid of disharmony.

Contingency plan.

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