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Gordon Cain And The Sterling Group B Case Study Analysis

Background and Facts

Gordon Cain And The Sterling Group B a workplace products seller for tiny as well as medium sized organisations has recently been associated with preparing for a merging with its rival Residence Deport, which has actually influenced effectiveness levels in departmentswith the elderly manager associated with legal issues put forth by the federal Profession Payment. With the Advertising and marketing Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the future. With obstacles in the form of a prospective social modification and also low employee spirits, the organization is in need of a total reengineering initiative at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the advertising department of Gordon Cain And The Sterling Group B is boosting unpredictability in the workplace resulting in various difficulties for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing strategic decisions because Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Profession Commission's treatment in the process. Given the truth that the shop has a global visibility with branches in UK, USA, Canada and also Germany, political consider each of these countries may have the ability to impact efficiency or calculated objectives. Federal Profession Compensation's antitrust match against the merger took up valuable time of the organization's elderly administration suggesting that 'political' factors can have significant implications for an international company.

Economic Factors: Financial factors such as the appearance of local business in the international scenario suggest that Gordon Cain And The Sterling Group B is thriving in an atmosphere where there is prospective development of services. Truth that shop consumers are primarily looking for workplace materials for residence workplaces suggests that the market has a climbing trend of business owners as well as house based organisations.

Social factors: Social fads in the economy show that customers are seeking benefit in addition to eye-catching costs. Marketing research demonstrates how the client for Gordon Cain And The Sterling Group B does not have understanding regarding discovering solutions which can use a mix of benefit as well as affordable.

Technological factors: Modern technology plays an essential function in Gordon Cain And The Sterling Group B's business method particularly as the company is piloting Technology facilities which would certainly offer modern technology sales and also assistance in the form of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues and also Effects.

Numerous underlying Organizational Habits concerns can be seen in Gordon Cain And The Sterling Group B's case as highlighted in this section.

Concerns concerning cultural modification: There is concern concerning a social change that would certainly occur as soon as Todd Krasnow leaves from his position as the Exec Vice President of Advertising with most of the employee already showing unhappiness over this prospective relocation. This expected adjustment has created stress in the office which has been paired with the past stress of preparing the firm for a prospective merger with Residence Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is scarcity of workers that can match the difficult environment of a fast-paced organization. Not only does this result in difficulty in discovering the best individuals, it places stress and anxiety on brand-new hires as can not withstand the pace and stress that the company anticipates them to bear.

Dual Coverage Lines: Newcomers locate this business society difficult and also challenging to cope with specifically as populated line relationships are suggested to be weak in general as well as unbiased setting and also efficiency analysis is still done by the strong line manager. This implies that newcomers can shed clearness about their particular functions as well as goals especially as dotted line reporting does not maintain them in direct communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had actually been guessed that the last would certainly take Krasnow's setting came as a strike to her spirits. Lewis may have been capable and also suitable for the work but the reality that Kransnow's departure would make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Work Instability: Anxiety and insecurity can be determined as two major concerns that Lewis would be handling particularly as the merger has actually now be cancelled as well as two senior executives of the advertising and marketing division would certainly be leaving. The whole obligation of the division would be falling on Lewis's shoulders who would not just supervise of brining concerning a social modification but would certainly also have to confirm herself in her brand-new role.

Inappropriate Management Style of Leader: Lewis's monitoring style and also its incompatibility with the advertising and marketing division's duty can also be seen as an OB challenge especially as she has been utilized to handling problems in the operations division where personnel are educated to focus 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 used to being supported by Krasnow that focused extra on output than procedures.

Interdepartmental Differences: Interdepartmental disagreements in between 3 departments, marketing, merchandizing and procedures respectively over the allocation of the marketing mix can be determined as an additional OB concern. The marketing division does not share the very same vision as the various other two divisions pertaining to the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing as well as procedures departments do not agree over the advertising mix allocation amongst one another either.

Fragmentation in Marketing Department: Disintegration in between the advertising and marketing divisions can be determined as one more OB issue which could need additional interest. The truth that the marketing and advertising sections in the advertising and marketing department are detached is protecting against both departments from gaining from each other's experience and also competence. Assimilation of advertising and marketing with merchandising and also procedures would certainly come to be more difficult if the advertising and marketing department itself is degenerated which can be one more possible OB issue.

Gordon Cain And The Sterling Group B Analysis

Various concepts have been used to explain the conditions to obtain more quality regarding the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors think that subordinates are easy and also careless, have little passion and resist adjustment. The scenario at Gordon Cain And The Sterling Group B is not entirely adhering to Concept X, it can be seen that new hires are discovering this atmosphere instead difficult which may at some point lead to a better inclination of the administration towards Theory X. Also while examining Lewis's monitoring design, theory X might have been appropriate in the operations department to some extent yet the Marketing department would certainly need reliance on Concept Y in order to obtain the creative thinking as well as creativity from the teams.

Tuckman's Synergy Theory: Regarding Lewis's problem concerning bringing harmony in between the marketing and advertising division is concerned, this would at first cause contrast as gone over by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, throughout the initial phase of group advancement, individuals might not bond, as they are active discovering their location in the group. By integrating the marketing and advertising division's job, there may be the same preliminary detach which can result in the second stage of 'storming' where the groups test one another. It is only throughout the 3rd stage or 'norming' when they would come together to share ideas before the group can bring about harmony in the 4th stage 'doing'.

When individuals are offered with adjustment, they go into stage one as well as so there may be emotions like unhappiness, uncertainty, frustration, temper, fear, denial and disorientation.The situation at the advertising and marketing department of Gordon Cain And The Sterling Group B is comparable so Lewis can get comfy with the suggestion that it is not amazing behavior. It is throughout this stage that Lewis will certainly have to give advice to the division so that they can discover a feeling of direction. It can be seen how Krasnow has actually currently made this change easier by making Lewis obtain involved in the division a year prior to his real departure.
Vrio Analysis
Maslow's Demand power structure: The OB issue related to insecurity at the work environment has been caused to start with by the adjustment in management and second of all by the truth that the merging will no longer be launched. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has goes over the importance of 'protection requires as being a lower degree demand of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the need to feel safe and secure and also out of danger' is at the 2nd degree of requirements. Prior to a staff member can be made to establish mentally, he needs to have his 'Physical 'as well as 'Safety and security' needs satisfied. This suggests that unless the employees are made to feel secure concerning their existing work condition in Gordon Cain And The Sterling Group B they may not reach 'Self-Fulfillment'. (King, 2009).

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

Implication of Analysis.

The OB analysis has actually considered numerous concepts to recognize just how to cope with the existing situation at hand. The following 3 choices have been proposed to aid Lewis take care of the business obstacles in the advertising and marketing division. Each of these options has actually been suggested for easing the change needed to bring the marketing department in line with the requirements of the market and also for making the social modification that would follow when the current leader leaves.

Integration of marketing and advertising features. Dividing Adverting and Manufacturing functions. Combination of Advertising And Marketing with Workflow.

Examination of Alternatives.

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

The benefit of this method is that it will integrate the two features while reducing the requirement for working with an additional resource for advertising. Lewis would be heading the advertising and marketing department and also in any kind of case her replacement would certainly be needed for the present role that she is carrying out. The drawback of this choice is that external hiring might cause bitterness from internal employees that might be looking at the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Manufacturing: Given the affordable stress and also high quality work called for from the advertising firm, it is suggested that Lewis must enable the production device to be a different feature from the marketing system. Considering that most marketing companies had these 2 functions as separate devices, it makes more sense to comply with the norm.

Combination of Marketing with Workflows: Given that Lewis is already taking treatment of the marketing as well as operations divisions at the same time; it makes feeling to incorporate the two functions because she has been efficiently taking treatment of both ends. The fact that Lewis has to adjust her administration design for the advertising and marketing department suggests that these two divisions would certainly be culturally varied.


An evaluation of the three alternatives indicates that combination of advertising as well as operations would not be a possible relocation due to the huge distinctions between both departments despite the fact that presently Lewis is taking care of both. While separation of the manufacturing feature may have been a beneficial relocation for the advertising department, the reality that it would certainly indicate putting a third feature under Lewis's wing means this ought to be avoided. The integration of the marketing department is the best option in terms of obtaining the optimum arise from the division. An action prepare for this alternative is discussed listed below.

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

Marketing and advertising functions would be combined.

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

Manufacturing function will stay part of advertising under advertising feature.

Lewis will certainly separate herself from procedures.

A democratic management design with staff member empowerment will be used in marketing division.

Open door plan and also emphasis on cross department interaction will certainly be targeted at getting rid of discord.

Backup strategy.

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