Gordon Cain And The Sterling Group A Case Study Help


Home >> Harvard >> Gordon Cain And The Sterling Group A >>

Gordon Cain And The Sterling Group A Case Study Solution

Background and Facts

Gordon Cain And The Sterling Group A an office supplies retailer for little and also medium sized companies has actually just recently been involved in planning for a merging with its rival Residence Deport, which has influenced efficiency degrees in departmentswith the elderly supervisor involved in legal complications presented by the government Trade Compensation. With the Advertising Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the near future. With difficulties in the type of a potential social change and reduced employee morale, the company wants a full reengineering initiative at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural change at the advertising and marketing department of Gordon Cain And The Sterling Group A is raising uncertainty in the working environment bring about various obstacles 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 impacting tactical decisions considering that Stapes Inc. had to desert its plans of combining with Office Deport after the Federal Profession Payment's intervention in the process. Given the fact that the shop has an international existence with branches in UK, USA, Canada and also Germany, political factors in each of these countries may be able to affect efficiency or strategic goals. Federal Profession Compensation's antitrust suit versus the merger used up important time of the organization's senior management suggesting that 'political' factors can have major effects for a global company.

Economic Factors: Financial factors such as the emergence of small companies in the international scenario suggest that Gordon Cain And The Sterling Group A is prospering in an environment where there is prospective development of companies. Along with this, reality that store clients are primarily seeking workplace materials for home offices recommends that the market has a climbing fad of entrepreneurs as well as online organisations.

Social factors: Social fads in the economic situation show that customers are seeking comfort in addition to appealing costs. Marketing research demonstrates how the customer for Gordon Cain And The Sterling Group A does not have recognition regarding discovering remedies which can provide a combination of ease and low costs.

Technological factors: Modern technology plays a crucial duty in Gordon Cain And The Sterling Group A's company strategy specifically as the company is piloting Technology centers which would certainly use modern technology sales as well as support in the kind of memory upgrades, peripheral setups. (Recap of INSECT in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Organizational Actions issues can be seen in Gordon Cain And The Sterling Group A's case as highlighted in this section.

Worries regarding cultural change: There is concern about a social adjustment that would happen when Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with a lot of the employee already revealing discontent over this potential relocation. This expected modification has actually produced stress and anxiety in the office which has actually been paired with the past tension of preparing the firm for a possible merging with Residence Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is scarcity of employees that can match the demanding setting of a busy organization. Not only does this lead to difficulty in locating the best individuals, it places anxiety on new hires as can not stand up to the pace and pressure that the company anticipates them to birth.

Double Coverage Lines: Beginners discover this organizational society cumbersome and hard to manage particularly as populated line partnerships are meant to be weak as a whole and objective setting and efficiency assessment is still done by the solid line supervisor. This means that newcomers might shed clarity concerning their respective functions as well as objectives especially as populated line coverage does not keep them in straight communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had been hypothesized that the latter would certainly take Krasnow's placement came as a blow to her morale. Lewis may have been qualified as well as ideal for the task however the fact that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Task Insecurity: Fear and also insecurity can be identified as two significant concerns that Lewis would be dealing with specifically as the merging has actually currently be terminated as well as 2 senior execs of the marketing division would be leaving. The entire obligation of the division would certainly be dropping on Lewis's shoulders that would not simply supervise of brining regarding a cultural adjustment yet would certainly also have to show herself in her brand-new role.

Incompatible Management Style of Leader: Lewis's monitoring design and its conflict with the marketing department's duty can additionally be seen as an OB challenge especially as she has actually been utilized to managing issues in the operations division where personnel are educated to concentrate on procedures and obtain them right. The advertising and marketing division on the other hand can be viewed as a team of individuals that are utilized to being supported by Krasnow who concentrated extra on outcome than processes.

Interdepartmental Arguments: Interdepartmental arguments between 3 departments, marketing, merchandizing and also procedures specifically over the appropriation of the marketing mix can be determined as another OB worry. The advertising and marketing division does not share the exact same vision as the various other 2 divisions relating to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and also operations departments do not agree over the advertising mix appropriation among one an additional either.

Fragmentation in Advertising And Marketing Department: Fragmentation between the marketing and advertising divisions can be recognized as one more OB problem which might require further interest. The fact that the marketing and advertising sections in the advertising department are detached is protecting against both divisions from gaining from each various other's experience and competence. Combination of advertising with retailing and also operations would end up being more difficult if the advertising and marketing division itself is degenerated which can be another prospective OB problem.

Gordon Cain And The Sterling Group A Analysis

Different theories have actually been utilized to explain the conditions to obtain further clarity about the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many supervisors think that staffs are passive as well as careless, have little aspiration as well as withstand change. The difficult variation of this theory stressed threat, tight controls, risks as well as penalties. Over time it produces reduced efficiency, subtle sabotage and competition (Deal, 2003). Although the circumstance at Gordon Cain And The Sterling Group A is not totally adhering to Theory X, it can be seen that brand-new hires are locating this atmosphere instead difficult which may ultimately result in a better inclination of the management towards Concept X. Based on McGregor's promoted sight, which he called Theory Y, the essential job of the management is to prepare business conditions to ensure that individuals can attain their very own goals best by guiding their efforts towards business incentives. If individuals locate no contentment in their job, the monitoring would have little choice but to rely upon concept X as well as external control (Deal, 2003). Also while analyzing Lewis's monitoring design, theory X might have appropriated in the operations division to some extent but the Advertising and marketing division would require dependence on Concept Y to get the creative thinking and creativity from the teams.

Tuckman's Teamwork Concept: As much as Lewis's concern concerning bringing harmony in between the marketing and advertising division is worried, this would at first lead to clash as discussed by Bruce Tuckman in his 'Team effort Concept'. By integrating the advertising as well as marketing division's work, there might be the exact same first separate which can lead to the 2nd phase of 'storming' where the groups challenge one another.

When people are offered with adjustment, they enter stage one and also so there may be feelings like despair, unpredictability, stress, rage, worry, rejection and also disorientation.The scenario at the advertising division of Gordon Cain And The Sterling Group A is similar so Lewis can get comfortable with the suggestion that it is not extraordinary actions. It is during this stage that Lewis will have to give guidance to the division so that they can locate a feeling of instructions. It can be seen just how Krasnow has currently made this shift less complicated by making Lewis get included in the department a year before his real separation.
Vrio Analysis
Maslow's Requirement hierarchy: The OB problem pertaining to insecurity at the work environment has been set off firstly by the modification in management as well as secondly by the reality that the merger will no longer be launched. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has reviews the significance of 'protection requires as being a reduced level demand of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel safe and also unharmed' is at the 2nd level of requirements. Before an employee can be made to create psychologically, he needs to have his 'Physical 'as well as 'Safety' needs fulfilled. This shows that unless the employees are made to feel safe and secure concerning their existing employment status in Gordon Cain And The Sterling Group A they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Gordon Cain And The Sterling Group A Case Study

Ramification of Analysis.

The OB analysis has actually looked at various concepts to recognize just how to handle the present circumstance available. The complying with 3 alternatives have been suggested to aid Lewis take care of the organizational difficulties in the advertising and marketing department. Each of these choices has actually been recommended for reducing the transition needed to bring the advertising and marketing department in line with the demands of the marketplace and also for making the cultural change that would comply with once the current leader leaves.

Integration of advertising and marketing features. Dividing Adverting and Production features. Integration of Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merging days has knowledge in business-to-business advertising along with company and also retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both marketing and also advertising and marketing features.

The advantage of this method is that it will incorporate both features while lowering the demand for working with an extra source for advertising. In addition to this, Lewis would certainly be heading the advertising and marketing department as well as regardless her substitute would be required for the current function that she is doing. The disadvantage of this alternative is that outside hiring may bring about bitterness from inner workers that might be considering the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Production: Provided the affordable pressures as well as high top quality job called for from the advertising company, it is advised that Lewis should enable the production system to be a different feature from the advertising system. Considering that the majority of advertising firms had these 2 functions as different units, it makes more feeling to follow the norm.

Assimilation of Marketing with Procedures: Given that Lewis is currently caring for the marketing as well as procedures departments all at once; it makes sense to incorporate both functions because she has been successfully looking after both ends. The truth that the two divisions already have major differences over allocation of resources suggests that this assimilation might have the ability to bring about harmony especially as Lewis would be heading both ends.However there are different downsides of this relocation particularly as it would certainly put way too much concern over Lewis's shoulders. The fact that Lewis has to adjust her administration design for the advertising and marketing division suggests that these 2 divisions would certainly be culturally diverse. Lewis might not be able to apply one kind of leadership style to both departments which might result in inefficiency in either one of the two functions.


An examination of the 3 alternatives suggests that integration of advertising and marketing as well as operations would not be a practical relocation due to the vast differences in between the two departments despite the reality that currently Lewis is dealing with both. While splitting up of the production function may have been a favorable step for the advertising division, the fact that it would certainly imply positioning a 3rd function under Lewis's wing means this ought to be avoided.

Action Strategy.
Lewis will certainly take over the duty of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Manufacturing function will certainly continue to be part of marketing under marketing feature.

Lewis will certainly divide herself from procedures.

A democratic leadership style with staff member empowerment will certainly be made use of in marketing department.

Open up door policy and also focus on cross departmental communication will certainly be targeted at eliminating discord.

Contingency strategy.

If the combination does not exercise as intended, a backup plan would certainly adhere to which would certainly separate the manufacturing function from the marketing feature to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising division without an SVP. Because case the manufacturing function will definitely be separated by placing it under an SVP manufacturing.