Flexible Footprints Reconfiguring Mncs For New Value Opportunities Case Study Help


Home >> Harvard >> Flexible Footprints Reconfiguring Mncs For New Value Opportunities >>

Flexible Footprints Reconfiguring Mncs For New Value Opportunities Case Study Solution

Background and Facts

Flexible Footprints Reconfiguring Mncs For New Value Opportunities a workplace supplies retailer for little and also medium sized organisations has actually lately been associated with planning for a merging with its competitor House Deport, which has influenced effectiveness levels in departmentswith the elderly manager associated with lawful problems put forth by the federal Profession Commission. With the Marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the function in the future. With difficulties in the kind of a possible social adjustment and low employee spirits, the organization needs a complete reengineering effort at the advertising and marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible social adjustment at the advertising division of Flexible Footprints Reconfiguring Mncs For New Value Opportunities is boosting uncertainty in the workplace causing numerous obstacles for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting strategic decisions because Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Trade Payment's intervention while doing so. Given the reality that the store has a worldwide existence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries might be able to impact performance or strategic objectives. Federal Profession Commission's antitrust fit versus the merging occupied beneficial time of the organization's senior administration suggesting that 'political' factors can have serious implications for a worldwide service.

Economic Factors: Financial factors such as the emergence of small businesses in the global circumstance recommend that Flexible Footprints Reconfiguring Mncs For New Value Opportunities is thriving in an atmosphere where there is prospective growth of businesses. Along with this, truth that shop consumers are mainly searching for office products for office suggests that the market has a climbing trend of business owners as well as online businesses.

Social factors: Social patterns in the economic situation reveal that clients are trying to find comfort in addition to appealing rates. Marketing research demonstrates how the client for Flexible Footprints Reconfiguring Mncs For New Value Opportunities does not have recognition about discovering options which can use a mix of comfort as well as inexpensive.

Technological factors: Technology plays an essential role in Flexible Footprints Reconfiguring Mncs For New Value Opportunities's service strategy specifically as the organization is piloting Modern technology centers which would provide modern technology sales as well as assistance in the type of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and also Symptoms.

Several underlying Organizational Actions issues can be seen in Flexible Footprints Reconfiguring Mncs For New Value Opportunities's case as highlighted in this section.

Apprehensions regarding social change: There is apprehension regarding a cultural adjustment that would certainly take place as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising with most of the employee already revealing discontent over this potential move. This predicted change has produced stress and anxiety in the work environment which has actually been coupled with the previous anxiety of preparing the company for a potential merging with Residence Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is lack of employees that can match the stressful atmosphere of a busy organization. Not only does this bring about difficulty in finding the right people, it puts tension on new hires as can not endure the pace and also pressure that the organization anticipates them to birth.

Double Reporting Lines: Newbies locate this organizational society cumbersome and also difficult to deal with particularly as populated line connections are implied to be weak generally and unbiased setup as well as performance evaluation is still done by the solid line supervisor. This means that beginners could lose clarity about their corresponding roles as well as objectives especially as populated line reporting does not maintain them in direct communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had actually been hypothesized that the last would take Krasnow's placement came as a blow to her spirits. Lewis may have been capable and also ideal for the work however the truth that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Job Instability: Fear and insecurity can be determined as 2 major problems that Lewis would be taking care of particularly as the merging has actually now be terminated and 2 elderly executives of the advertising department would be leaving. The entire responsibility of the division would be falling on Lewis's shoulders who would certainly not simply be in charge of brining about a cultural adjustment yet would also need to prove herself in her brand-new function.

Incompatible Monitoring Design of Leader: Lewis's management design as well as its conflict with the marketing division's duty can also be seen as an OB obstacle especially as she has actually been utilized to managing problems in the procedures division where employees are taught to focus on processes and get them right. The marketing division on the various other hand can be viewed as a group of individuals who are made use of to being supported by Krasnow who focused extra on result than processes.

Interdepartmental Arguments: Interdepartmental disputes in between 3 departments, marketing, merchandizing and procedures respectively over the allowance of the advertising and marketing mix can be determined as another OB problem. Although the marketing division does not share the exact same vision as the other 2 departments pertaining to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing as well as procedures departments do not concur over the advertising mix allotment among one another either.

Fragmentation in Marketing Division: Fragmentation between the advertising and marketing departments can be identified as an additional OB concern which can need additional focus. The fact that the marketing and advertising areas in the marketing department are detached is preventing both departments from getting from each other's experience and also know-how. Combination of marketing with merchandising and operations would certainly end up being harder if the marketing department itself is degenerated which can be one more possible OB concern.

Flexible Footprints Reconfiguring Mncs For New Value Opportunities Analysis

Different theories have been made use of to clarify the scenarios to obtain further clarity about the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers think that subordinates are passive and careless, have little ambition and also resist change. The tough variation of this concept stressed threat, tight controls, threats and punishments. In time it produces low performance, subtle sabotage and competition (Bargain, 2003). Although the circumstance at Flexible Footprints Reconfiguring Mncs For New Value Opportunities is not entirely complying with Concept X, it can be seen that new hires are locating this atmosphere rather difficult which may eventually cause a greater inclination of the monitoring towards Theory X. According to McGregor's advocated view, which he called Theory Y, the necessary task of the administration is to prepare organizational problems so that people can accomplish their very own objectives best by guiding their initiatives in the direction of organizational rewards. If individuals discover no contentment in their job, the administration would certainly have little choice but to count on concept X and also exterior control (Deal, 2003). Also while examining Lewis's management style, theory X might have been suitable in the operations department somewhat but the Advertising and marketing department would certainly require reliance on Concept Y to get the creativity and originality from the teams.

Tuckman's Teamwork Concept: As far as Lewis's worry about bringing consistency in between the marketing as well as marketing department is concerned, this would originally lead to contrast as gone over by Bruce Tuckman in his 'Team effort Concept'. By integrating the advertising and marketing and also advertising and marketing department's job, there might be the same initial disconnect which might lead to the second phase of 'storming' where the teams test one an additional.

When people are presented with adjustment, they enter stage one and so there might be emotions like sadness, unpredictability, aggravation, anger, anxiety, rejection as well as disorientation.The circumstance at the advertising department of Flexible Footprints Reconfiguring Mncs For New Value Opportunities is similar so Lewis can get comfortable with the suggestion that it is not phenomenal actions. It is during this stage that Lewis will have to provide assistance to the division so that they can discover a feeling of instructions. It can be seen how Krasnow has actually currently made this transition simpler by making Lewis obtain entailed in the division a year prior to his real departure.
Vrio Analysis
Maslow's Demand power structure: The OB concern pertaining to instability at the workplace has been caused firstly by the modification in administration and second of all by the truth that the merging will certainly no longer be started. Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has talks about the importance of 'safety and security requires as being a lower level demand of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the demand to feel safe as well as out of danger' is at the second level of requirements. Before a worker can be made to create mentally, he needs to have his 'Physiological 'and also 'Safety and security' requires met. This suggests that unless the workers are made to really feel safe concerning their existing employment standing in Flexible Footprints Reconfiguring Mncs For New Value Opportunities they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Flexible Footprints Reconfiguring Mncs For New Value Opportunities Case Study

Effects of Analysis.

The OB analysis has actually looked at various theories to comprehend how to handle the existing scenario at hand. The adhering to three options have been proposed to aid Lewis take care of the organizational difficulties in the marketing division. Each of these options has been proposed for alleviating the transition required to bring the advertising and marketing division in line with the needs of the market as well as for making the cultural adjustment that would adhere to as soon as the current leader leaves.

Integration of advertising and marketing features. Dividing Adverting and also Production features. Combination of Advertising with Operations.

Evaluation of Alternatives.

Integration of Advertising And Marketing & Advertising Functions: The in-house marketing firm of Flexible Footprints Reconfiguring Mncs For New Value Opportunities is currently stamina for the organization in regards to conserving up on overheads connected to advertising and marketing and promotion. Given that no brand-new employment has been done after Bridget Cole's departure with the coverage line being directly designated to Krasnow for the advertising feature, this is a favorable chance for incorporating the advertising and marketing features. Judith Shapiro that has earlier been interviewed by Lewis during the earlier merging days has expertise in business-to-business marketing along with company as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both advertising and marketing functions.

The benefit of this approach is that it will integrate the two functions while reducing the requirement for employing an additional resource for advertising and marketing. Along with this, Lewis would be heading the advertising and marketing department and also all the same her substitute would certainly be required for the current role that she is executing. The disadvantage of this choice is that outside hiring might bring about bitterness from inner personnel who might be considering the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting as well as Production: Given the affordable pressures as well as high quality work called for from the advertising agency, it is suggested that Lewis should enable the production device to be a different feature from the marketing device. Given that the majority of advertising agencies had these two functions as separate devices, it makes more sense to adhere to the norm. In addition to this, both features might be able to focus on their core turns on more successfully. The negative aspect of this technique would certainly be that added expenses would have to be borne for establishing up separate production features. Along with this, a production head may need to be employed which could raise overheads for the organization.

Assimilation of Marketing with Procedures: Considering that Lewis is currently caring for the advertising and also operations departments simultaneously; it makes sense to integrate the two functions since she has been successfully caring for both ends. The fact that both departments already have significant distinctions over allocation of resources suggests that this integration may be able to produce harmony specifically as Lewis would be heading both ends.However there are different drawbacks of this action especially as it would place excessive burden over Lewis's shoulders. The reality that Lewis has to adapt her management style for the advertising and marketing department recommends that these 2 departments would certainly be culturally diverse. Lewis may not be able to use one kind of leadership design to both departments which might result in inadequacy in either one of the 2 features.


An assessment of the 3 alternatives suggests that assimilation of advertising and marketing and also operations would certainly not be a viable step as a result of the vast distinctions in between both departments although that currently Lewis is dealing with both. While separation of the manufacturing feature might have been a desirable relocation for the advertising division, the truth that it would suggest positioning a third feature under Lewis's wing suggests this should be prevented. The integration of the marketing division is the best option in regards to getting the optimal results from the division. An action prepare for this option is reviewed listed below.

Activity Plan.
Lewis will certainly take control of the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

Production function will certainly stay part of advertising and marketing under advertising feature.

Lewis will divide herself from operations.

An autonomous management style with staff member empowerment will be used in advertising department.

Open door plan and also focus on cross departmental interaction will certainly be targeted at removing dissonance.

Backup plan.

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