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Glenorna Coffee Case Study Analysis

CASE SOLUTION

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Glenorna Coffee Case Study Solution

Background and Facts

Glenorna Coffee an office supplies seller for little as well as moderate sized services has actually lately been involved in preparing for a merger with its competitor Home Deport, which has actually impacted efficiency degrees in departmentswith the elderly supervisor associated with legal issues presented by the federal Trade Payment. With the Marketing Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the future. With obstacles in the kind of a potential social modification as well as low employee morale, the company is in need of a total reengineering initiative at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing division of Glenorna Coffee is increasing unpredictability in the workplace leading to numerous challenges for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting calculated choices since Stapes Inc. needed to abandon its plans of combining with Workplace Deport after the Federal Trade Payment's intervention in the process. Provided the truth that the shop has a global existence with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these nations might be able to influence efficiency or strategic goals. Federal Trade Payment's antitrust fit against the merging occupied important time of the organization's elderly management suggesting that 'political' factors can have severe effects for a global service.

Economic Factors: Financial factors such as the development of small businesses in the worldwide scenario recommend that Glenorna Coffee is flourishing in an atmosphere where there is possible development of services. In addition to this, reality that shop customers are mostly searching for workplace supplies for office suggests that the market has a rising trend of business owners and online companies.

Social factors: Social fads in the economic climate reveal that clients are seeking comfort in addition to eye-catching prices. Marketing research shows how the client for Glenorna Coffee does not have recognition regarding finding remedies which can provide a combination of benefit and also low costs.

Technical factors: Technology plays an important role in Glenorna Coffee's business approach specifically as the organization is piloting Modern technology facilities which would certainly use innovation sales and support in the form of memory upgrades, peripheral installments. (Recap of PARASITE in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Organizational Habits issues can be seen in Glenorna Coffee's case as highlighted in this area.

Concerns concerning cultural modification: There is worry regarding a social modification that would certainly occur when Todd Krasnow leaves from his position as the Exec Vice President of Advertising with a lot of the team member already revealing discontent over this potential action. This anticipated adjustment has created stress and anxiety in the work environment which has actually been paired with the past anxiety of preparing the firm for a potential merging with House Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is lack of personnel that can match the difficult setting of a fast-paced organization. Not only does this lead to difficulty in finding the ideal people, it puts tension on new hires as can not stand up to the pace and also stress that the organization anticipates them to bear.

Twin Coverage Lines: Novices locate this organizational culture difficult as well as difficult to cope with especially as populated line relationships are indicated to be weaker as a whole and objective setting and efficiency analysis is still done by the solid line supervisor. This suggests that beginners can lose clearness about their respective roles and goals especially as dotted line coverage does not keep them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles although it had actually been speculated that the last would take Krasnow's setting came as a strike to her spirits. Lewis may have been qualified as well as appropriate for the work yet the fact that Kransnow's departure would make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Fear & Job Insecurity: Concern and also insecurity can be recognized as two major problems that Lewis would be taking care of specifically as the merger has currently be terminated and 2 elderly execs of the advertising and marketing division would be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders that would certainly not simply supervise of brining regarding a cultural adjustment yet would also need to confirm herself in her new role.

Incompatible Administration Design of Leader: Lewis's management style and also its incompatibility with the advertising department's role can also be seen as an OB obstacle specifically as she has been utilized to managing issues in the operations division where employees are shown to concentrate on processes and obtain them. The advertising department on the other hand can be seen as a team of individuals who are used to being supported by Krasnow who focused more on output than procedures.

Interdepartmental Arguments: Interdepartmental arguments in between three divisions, advertising and marketing, merchandizing and operations respectively over the allocation of the advertising and marketing mix can be recognized as one more OB problem. Although the advertising division does not share the exact same vision as the various other two divisions concerning the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and procedures departments do not agree over the marketing mix allotment among one another either.

Disintegration in Marketing Department: Disintegration in between the marketing and advertising departments can be determined as another OB issue which might need further focus. The reality that the marketing and advertising sections in the advertising and marketing department are detached is stopping both divisions from gaining from each various other's experience and knowledge. Assimilation of advertising and marketing with retailing and procedures would end up being harder if the marketing department itself is broken down which can be an additional prospective OB issue.

Glenorna Coffee Analysis

Numerous theories have actually been utilized to describe the situations to obtain more quality about the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that juniors are easy and lazy, have little aspiration and stand up to change. The tough variation of this concept emphasized threat, tight controls, dangers as well as penalties. Gradually it produces reduced productivity, subtle sabotage and also competition (Bargain, 2003). Although the scenario at Glenorna Coffee is not totally following Concept X, it can be seen that brand-new hires are finding this setting rather stressful which might eventually bring about a higher inclination of the monitoring in the direction of Theory X. According to McGregor's promoted sight, which he called Concept Y, the vital task of the monitoring is to set up organizational conditions to ensure that individuals can achieve their own goals best by routing their initiatives in the direction of organizational rewards. If people discover no satisfaction in their work, the monitoring would certainly have little selection but to rely on concept X and also external control (Bargain, 2003). Even while evaluating Lewis's monitoring design, theory X might have appropriated in the procedures department to some extent but the Marketing department would call for dependence on Theory Y in order to get the creative thinking as well as originality from the groups.

Tuckman's Team effort Concept: As far as Lewis's worry about bringing harmony in between the advertising and also advertising and marketing division is concerned, this would initially lead to contrast as talked about by Bruce Tuckman in his 'Team effort Concept'. By combining the advertising and marketing and advertising department's work, there might be the exact same first disconnect which could lead to the 2nd stage of 'storming' where the groups test one another.

Bridges' Transition Model: According To William Bridge's concept (appendix 4), people are rather uneasy with change, which is evident by the circumstance at Glenorna Coffee The situation can be seen as a regular program of life if is examined according to Bridge's theory where he explains that individuals undergo 3 stages of change when they experience change. 'Closing, losing and also Letting go', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people exist with modification, they enter stage one therefore there might be feelings like despair, uncertainty, aggravation, anger, anxiety, denial as well as disorientation.The scenario at the marketing division of Glenorna Coffee is similar so Lewis can obtain comfortable with the idea that it is not remarkable habits. In the second phase, there might be a requirement to bridge the void between the new and also old society so Lewis might have to encounter this experience once Krasnow leaves. There might be low morale as well as low efficiency at this stage which should not be taken as an obstacle. It is throughout this stage that Lewis will certainly need to give assistance to the division to ensure that they can locate a sense of direction. It can be seen how Krasnow has already made this transition much easier by making Lewis obtain involved in the division a year prior to his actual separation. Based on Bridges' Design, phase 3 will produce visibility to learning, High energy and dedication as individuals will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has reviews the relevance of 'safety and security needs as being a reduced degree requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel safe as well as out of threat' is at the 2nd level of requirements. Before an employee can be made to establish emotionally, he requires to have his 'Physiological 'and also 'Safety' needs satisfied.

SWOT Analysis for Glenorna Coffee Case Study



Implication of Analysis.

The OB analysis has considered different theories to understand exactly how to deal with the existing scenario handy. The following 3 alternatives have been suggested to assist Lewis handle the organizational challenges in the advertising and marketing department. Each of these choices has actually been suggested for relieving the transition required to bring the advertising and marketing division according to the needs of the market and also for making the social modification that would certainly adhere to once the present leader leaves.

Combination of marketing and advertising functions. Dividing Adverting and also Production features. Combination of Advertising And Marketing with Procedures.

Evaluation of Alternatives.

Assimilation of Marketing & Marketing Functions: The in-house advertising and marketing company of Glenorna Coffee is already stamina for the company in terms of saving up on overheads related to advertising and promotion. Given that no new recruitment has actually been done after Bridget Cole's separation with the reporting line being straight appointed to Krasnow for the advertising function, this is a beneficial chance for integrating the marketing and advertising features. Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merging days has expertise in business-to-business marketing along with company and also retail advertising experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing features.

The benefit of this strategy is that it will integrate the two functions while decreasing the need for employing an extra resource for marketing. In addition to this, Lewis would certainly be heading the advertising department and also in any case her substitute would certainly be needed for the present role that she is executing. The drawback of this choice is that outside hiring might bring about bitterness from inner personnel that may be looking at the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Manufacturing: Provided the affordable pressures and high top quality job required from the advertising firm, it is recommended that Lewis should allow the manufacturing system to be a separate feature from the marketing system. Since most advertising companies had these two functions as different devices, it makes even more feeling to comply with the standard.

Assimilation of Advertising with Workflows: Given that Lewis is already taking care of the marketing as well as operations departments concurrently; it makes feeling to integrate the 2 features since she has actually been efficiently taking care of both ends. The fact that Lewis has to adjust her management design for the marketing division suggests that these two departments would certainly be culturally diverse.

Suggestion.



An examination of the three options indicates that integration of advertising as well as operations would not be a practical step due to the huge distinctions between the 2 departments regardless of the fact that presently Lewis is handling both. While separation of the production feature might have been a desirable move for the marketing department, the reality that it would certainly suggest positioning a 3rd feature under Lewis's wing indicates this need to be avoided.

Action Strategy.
Recommendation
Lewis will take control of the function of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

Manufacturing function will stay component of advertising under advertising function.

Lewis will certainly divide herself from operations.

A democratic management style with employee empowerment will be utilized in marketing division.

Open door policy as well as focus on cross department interaction will certainly be focused on eliminating discord.

Contingency plan.

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