Eddie Bauer C Case Study Analysis


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Eddie Bauer C Case Study Analysis

Background and Facts

Eddie Bauer C a workplace supplies store for small as well as medium sized companies has just recently been involved in preparing for a merging with its competitor Home Deport, which has affected effectiveness degrees in departmentswith the senior manager involved in legal difficulties presented by the federal Profession Commission. With the Marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the near future. With obstacles in the type of a prospective cultural modification and also reduced employee morale, the organization wants a full reengineering initiative at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The potential social modification at the marketing department of Eddie Bauer C is enhancing uncertainty in the workplace causing different difficulties for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting calculated decisions considering that Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Trade Commission's treatment while doing so. Offered the fact that the shop has a global presence with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries may have the ability to affect performance or calculated goals. Federal Trade Payment's antitrust suit against the merger occupied beneficial time of the company's senior monitoring recommending that 'political' factors can have major effects for a global organisation.

Economic Factors: Economic factors such as the development of small companies in the international circumstance suggest that Eddie Bauer C is growing in a setting where there is prospective growth of companies. Fact that store consumers are mostly looking for office products for house offices suggests that the market has a rising pattern of entrepreneurs and also house based businesses.

Social factors: Social trends in the economic situation show that clients are looking for benefit along with attractive rates. Market research shows how the client for Eddie Bauer C lacks recognition about finding remedies which can offer a combination of comfort and also inexpensive.

Technological factors: Innovation plays an important function in Eddie Bauer C's service method particularly as the organization is piloting Technology facilities which would certainly use innovation sales as well as support in the type of memory upgrades, peripheral installations. (Summary of BUG in appendix 2).

OB Issues as well as Effects.

Numerous underlying Business Actions concerns can be seen in Eddie Bauer C's case as highlighted in this area.

Concerns regarding social change: There is concern about a social change that would certainly take place once Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with the majority of the staff members already revealing unhappiness over this possible step. This predicted change has created tension in the work environment which has actually been coupled with the previous stress of preparing the company for a potential merging with Home Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is lack of personnel that can match the stressful setting of a busy company. Not only does this bring about problem in finding the appropriate individuals, it puts anxiety on brand-new hires as can not withstand the pace and also stress that the organization expects them to birth.

Twin Coverage Lines: Beginners locate this business society cumbersome and difficult to manage specifically as dotted line partnerships are suggested to be weaker in general and also unbiased setup as well as efficiency examination is still done by the solid line supervisor. This means that newcomers might shed clarity about their particular functions as well as purposes specifically as dotted line reporting does not keep them in straight interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had been guessed that the latter would take Krasnow's setting came as a blow to her spirits. Lewis might have been qualified as well as ideal for the job but the reality that Kransnow's separation would make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.

Fear & Job Instability: Concern and instability can be identified as two significant worries that Lewis would be handling particularly as the merger has now be cancelled and 2 senior execs of the advertising and marketing department would certainly be leaving. The entire obligation of the department would be dropping on Lewis's shoulders who would certainly not simply be in charge of brining concerning a cultural modification yet would certainly likewise need to verify herself in her new role.

Incompatible Administration Design of Leader: Lewis's monitoring design and its conflict with the marketing department's role can likewise be seen as an OB obstacle particularly as she has been used to handling issues in the operations department where workers are taught to concentrate on processes as well as obtain them right. The marketing department on the various other hand can be seen as a group of individuals that are utilized to being supported by Krasnow who concentrated much more on output than processes.

Interdepartmental Disputes: Interdepartmental arguments between 3 divisions, advertising and marketing, merchandizing and operations respectively over the allowance of the advertising and marketing mix can be recognized as an additional OB problem. The advertising and marketing division does not share the exact same vision as the other 2 divisions regarding the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and procedures divisions do not agree over the advertising and marketing mix allocation amongst one another either.

Fragmentation in Marketing Division: Fragmentation in between the marketing and advertising divisions can be recognized as one more OB issue which could require additional attention. The truth that the marketing and advertising sections in the advertising division are disconnected is protecting against both divisions from obtaining from each other's experience and also know-how. Assimilation of advertising and marketing with retailing as well as operations would become more difficult if the marketing department itself is disintegrated which can be another prospective OB concern.

Eddie Bauer C Analysis

Various theories have been utilized to discuss the scenarios to obtain additional quality about the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers think that juniors are passive and lazy, have little passion and also stand up to adjustment. The situation at Eddie Bauer C is not entirely complying with Concept X, it can be seen that brand-new hires are discovering this setting instead difficult which might eventually lead to a better inclination of the management in the direction of Concept X. Also while examining Lewis's administration style, concept X may have been ideal in the operations division to some extent yet the Advertising department would certainly require dependence on Theory Y in order to obtain the creative thinking and creativity from the teams.

Tuckman's Synergy Theory: As far as Lewis's problem regarding bringing consistency between the marketing and advertising division is concerned, this would initially bring about clash as talked about by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, throughout the first phase of team advancement, individuals might not bond, as they are hectic locating their area in the team. By integrating the marketing and advertising division's work, there may coincide first detach which might cause the second phase of 'storming' where the teams test each other. It is only during the third stage or 'norming' when they would certainly come with each other to share ideas before the team can bring around synergy in the 4th phase 'performing'.

Bridges' Change Design: According To William Bridge's concept (appendix 4), individuals are fairly awkward with change, which is noticeable by the situation at Eddie Bauer C The situation can be seen as a regular course of life if is researched as per Bridge's theory where he discusses that people undergo 3 phases of shift when they experience change. 'Ending, shedding as well as Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people exist with modification, they get in stage one and so there may be emotions like sadness, unpredictability, stress, rage, worry, rejection and also disorientation.The scenario at the advertising department of Eddie Bauer C is comparable so Lewis can get comfy with the suggestion that it is not extraordinary actions. In the second stage, there may be a need to link the gap in between the brand-new and also old society so Lewis might need to encounter this ordeal once Krasnow leaves. There may be low morale and reduced performance at this phase which must not be taken as a trouble. It is during this phase that Lewis will certainly have to provide support to the department so that they can find a sense of direction. It can be seen just how Krasnow has actually already made this shift less complicated by making Lewis obtain involved in the division a year prior to his real separation. According to Bridges' Version, phase three will certainly cause visibility to understanding, High power as well as commitment as people will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB problem related to instability at the workplace has actually been triggered firstly by the modification in management and secondly by the reality that the merging will no more be started. Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has talks about the relevance of 'safety and security needs as being a lower level requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel protected and also untouched' goes to the second level of requirements. Prior to a worker can be made to establish psychologically, he requires to have his 'Physical 'and 'Safety' needs met. This suggests that unless the employees are made to feel safe and secure about their current employment status in Eddie Bauer C they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Eddie Bauer C Case Study

Effects of Analysis.

The OB analysis has taken a look at various theories to understand how to cope with the present circumstance handy. The following 3 choices have been recommended to help Lewis deal with the business challenges in the marketing department. Each of these options has actually been suggested for alleviating the transition needed to bring the advertising and marketing department in accordance with the requirements of the market and also for making the social change that would certainly adhere to when the existing leader leaves.

Integration of marketing and advertising features. Separating Adverting and Manufacturing features. Integration of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Assimilation of Advertising & Marketing Functions: The in-house advertising and marketing firm of Eddie Bauer C is already stamina for the company in terms of conserving up on overheads associated with advertising and marketing as well as promotion. Given that no new employment has actually been done after Bridget Cole's separation with the reporting line being directly designated to Krasnow for the marketing function, this is a favorable possibility for incorporating the advertising and marketing functions. Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merger days has knowledge in business-to-business advertising and marketing together with firm and retail advertising and marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to handle both marketing and advertising functions.

The advantage of this approach is that it will incorporate both functions while minimizing the need for employing an extra source for advertising and marketing. Lewis would be heading the marketing division and in any type of case her replacement would certainly be needed for the current function that she is executing. The downside of this option is that exterior hiring may cause bitterness from interior workers that might be considering the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Manufacturing: Provided the affordable pressures and also high quality job required from the marketing firm, it is recommended that Lewis needs to permit the manufacturing system to be a separate feature from the advertising unit. Considering that many advertising and marketing companies had these 2 features as different units, it makes more feeling to follow the norm.

Assimilation of Marketing with Procedures: Since Lewis is currently looking after the marketing as well as operations departments simultaneously; it makes good sense to integrate both functions because she has been effectively taking care of both ends. The fact that both divisions already have major distinctions over allotment of sources recommends that this combination might be able to cause consistency specifically as Lewis would be heading both ends.However there are different disadvantages of this step especially as it would put way too much worry over Lewis's shoulders. The reality that Lewis has to adjust her monitoring style for the advertising and marketing division recommends that these two departments would be culturally diverse. Along with this, Lewis may not be able to apply one sort of management style to both divisions which can cause inefficiency in either among both features.


An examination of the 3 choices indicates that combination of advertising as well as operations would certainly not be a practical step due to the huge differences between the two departments although that presently Lewis is dealing with both. While separation of the production feature might have been a favorable action for the advertising division, the reality that it would certainly mean putting a 3rd feature under Lewis's wing suggests this need to be stayed clear of. The combination of the advertising and marketing department is the very best choice in regards to getting the optimal results from the division. An action prepare for this alternative is talked about below.

Action Plan.
Lewis will certainly take over the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

Judith Shapiro will be worked with to take Lewis's place as SVP of advertising and marketing.

Manufacturing function will remain component of marketing under marketing function.

Lewis will certainly divide herself from procedures.

An autonomous leadership style with staff member empowerment will be utilized in marketing division.

Open up door plan as well as emphasis on cross departmental communication will be aimed at removing discord.

Contingency plan.

If the assimilation does not exercise as prepared, a backup strategy would comply with which would certainly divide the manufacturing function from the advertising function to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising department without an SVP. In that case the production function will definitely be separated by placing it under an SVP manufacturing.