Gordon Cain And The Sterling Group B Case Study Solution


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Gordon Cain And The Sterling Group B Case Study Solution

Background and Facts

Gordon Cain And The Sterling Group B an office supplies merchant for little as well as average sized services has actually just recently been associated with preparing for a merger with its rival Home Deport, which has actually influenced performance degrees in departmentswith the senior manager involved in lawful difficulties put forth by the federal Profession Commission. With the Advertising and marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the role in the future. With obstacles in the form of a possible cultural adjustment and also low employee morale, the company wants a total reengineering effort at the marketing division.

Issue Declaration

The prospective cultural modification at the advertising division of Gordon Cain And The Sterling Group B is raising unpredictability in the working environment leading to numerous challenges for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting calculated choices because Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Profession Payment's treatment while doing so. Provided the truth that the store has an international visibility with branches in UK, USA, Canada as well as Germany, political factors in each of these nations might be able to impact performance or calculated goals. Federal Trade Commission's antitrust fit against the merger took up beneficial time of the company's elderly management suggesting that 'political' factors can have severe implications for a global company.

Economic Factors: Financial factors such as the emergence of small companies in the worldwide circumstance suggest that Gordon Cain And The Sterling Group B is thriving in an environment where there is possible development of services. Truth that shop clients are mostly looking for office products for home workplaces recommends that the market has a climbing fad of entrepreneurs and also home based companies.

Social factors: Social trends in the economic climate show that consumers are trying to find ease along with appealing rates. Marketing research shows how the consumer for Gordon Cain And The Sterling Group B does not have awareness concerning locating services which can use a mix of comfort as well as inexpensive.

Technological factors: Technology plays an essential function in Gordon Cain And The Sterling Group B's company strategy specifically as the company is piloting Technology facilities which would offer innovation sales and also assistance in the form of memory upgrades, outer installments. (Summary of PARASITE in appendix 2).

OB Issues and also Manifestations.

Numerous underlying Business Behavior concerns can be seen in Gordon Cain And The Sterling Group B's case as highlighted in this area.

Uneasiness concerning cultural change: There is apprehension concerning a social change that would happen as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising And Marketing with the majority of the personnel already showing unhappiness over this possible move. This predicted modification has created anxiety in the office which has been coupled with the past stress of preparing the firm for a possible merging with House Deport.

Stressful Work Atmosphere for Newcomers: There is lack of personnel that can match the stressful setting of a fast-paced company. Not only does this lead to trouble in locating the best individuals, it puts stress on new hires as can not hold up against the pace and also stress that the organization expects them to bear.

Double Coverage Lines: Beginners locate this business society difficult as well as hard to deal with particularly as populated line connections are implied to be weaker as a whole and unbiased setup and efficiency evaluation is still done by the strong line manager. This suggests that beginners could shed quality concerning their particular roles as well as purposes particularly as populated line reporting does not keep them in direct communication with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been guessed that the last would certainly take Krasnow's setting came as a blow to her morale. Lewis might have been capable and ideal for the work but the truth that Kransnow's separation would certainly make Coles a straight record to Lewis may have been the reason for Coles' resignation from solutions.

Worry & Task Insecurity: Fear as well as insecurity can be identified as two significant worries that Lewis would be managing specifically as the merger has actually now be terminated and two senior execs of the marketing department would certainly be leaving. The whole responsibility of the division would certainly be falling on Lewis's shoulders that would not simply supervise of brining concerning a cultural modification but would also need to verify herself in her new function.

Incompatible Monitoring Style of Leader: Lewis's administration design as well as its conflict with the advertising and marketing department's function can likewise be viewed as an OB obstacle specifically as she has actually been used to dealing with problems in the operations division where employees are educated to concentrate on processes and get them right. The advertising division on the various other hand can be seen as a team of individuals that are made use of to being nurtured by Krasnow that concentrated extra on output than procedures.

Interdepartmental Differences: Interdepartmental differences in between 3 departments, marketing, merchandizing and also procedures specifically over the allocation of the advertising and marketing mix can be recognized as an additional OB worry. Although the advertising department does not share the exact same vision as the other 2 departments regarding the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and procedures departments do not concur over the marketing mix allotment amongst each other either.

Fragmentation in Marketing Division: Fragmentation between the marketing and advertising divisions can be recognized as another OB issue which can require more attention. The reality that the marketing and advertising sections in the advertising and marketing department are detached is stopping both departments from acquiring from each various other's experience and also know-how. Combination of advertising with retailing and also operations would certainly end up being more difficult if the marketing division itself is disintegrated which can be an additional prospective OB issue.

Gordon Cain And The Sterling Group B Analysis

Different concepts have been made use of to clarify the conditions to obtain more clearness concerning the situation handy.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that staffs are passive and also careless, have little ambition as well as stand up to adjustment. The tough variation of this concept emphasized threat, limited controls, risks and also penalties. With time it generates low performance, refined sabotage and competition (Bargain, 2003). The scenario at Gordon Cain And The Sterling Group B is not totally following Theory X, it can be seen that brand-new hires are discovering this environment rather difficult which may ultimately lead to a higher disposition of the monitoring in the direction of Concept X. Based on McGregor's supported view, which he called Concept Y, the crucial job of the monitoring is to organize organizational problems so that individuals can accomplish their own goals best by directing their initiatives in the direction of business incentives. If individuals locate no complete satisfaction in their job, the administration would have little choice however to rely on concept X as well as exterior control (Offer, 2003). Even while evaluating Lewis's management design, theory X might have appropriated in the operations department to some extent however the Advertising and marketing department would call for dependence on Concept Y to get the creativity and originality from the groups.

Tuckman's Team effort Theory: As for Lewis's issue about bringing harmony in between the advertising and marketing division is worried, this would initially result in contrast as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's theory displayed in appendix 3, throughout the preliminary phase of team growth, individuals may not bond, as they are active locating their location in the team. By incorporating the marketing and advertising division's work, there might coincide initial disconnect which might result in the second phase of 'storming' where the groups test one another. However, it is only during the third phase or 'norming' when they would come together to share suggestions before the team can produce synergy in the fourth phase 'executing'.

Bridges' Change Version: According To William Bridge's theory (appendix 4), individuals are quite uneasy with modification, which is obvious by the scenario at Gordon Cain And The Sterling Group B The situation can be seen as a typical training course of life if is examined according to Bridge's concept where he discusses that people go through three phases of shift when they experience adjustment. 'End, losing as well as Releasing', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people exist with modification, they enter phase one and so there might be emotions like sadness, unpredictability, disappointment, rage, concern, rejection and also disorientation.The scenario at the marketing department of Gordon Cain And The Sterling Group B is similar so Lewis can obtain comfortable with the suggestion that it is not amazing habits. In the second stage, there might be a requirement to link the void in between the brand-new and old society so Lewis may have to face this ordeal when Krasnow leaves. There might be low spirits and reduced performance at this stage which should not be taken as a trouble. It is throughout this phase that Lewis will need to provide advice to the division to ensure that they can discover a sense of direction. It can be seen exactly how Krasnow has already made this change simpler by making Lewis get involved in the department a year before his real separation. Based on Bridges' Version, stage three will certainly bring about openness to knowing, High power and dedication as individuals will welcome the change (Bridges, 2004).

Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has discusses the value of 'protection needs as being a lower degree requirement of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel secure and also out of danger' is at the 2nd degree of demands. Before a staff member can be made to develop psychologically, he needs to have his 'Physiological 'as well as 'Security' requires met.

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

Implication of Analysis.

The OB analysis has taken a look at different theories to comprehend just how to cope with the existing situation available. The complying with 3 alternatives have actually been suggested to help Lewis deal with the organizational difficulties in the advertising and marketing division. Each of these alternatives has been proposed for reducing the shift needed to bring the marketing division in line with the needs of the marketplace and also for making the cultural adjustment that would follow once the existing leader leaves.

Assimilation of advertising and marketing functions. Dividing Adverting and Manufacturing functions. Combination of Advertising And Marketing with Operations.

Assessment of Alternatives.

Assimilation of Advertising And Marketing & Marketing Functions: The internal advertising firm of Gordon Cain And The Sterling Group B is already strength for the company in regards to saving up on expenses connected to marketing and also promotion. Given that no brand-new employment has actually been done after Bridget Cole's departure with the coverage line being straight assigned to Krasnow for the marketing function, this is a desirable opportunity for integrating the advertising and marketing features. Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merger days has proficiency in business-to-business advertising and marketing along with company as well as retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both marketing and advertising features.

The advantage of this strategy is that it will certainly incorporate the two functions while minimizing the need for hiring an extra source for advertising. Lewis would certainly be heading the advertising and marketing division as well as in any type of case her replacement would be needed for the existing duty that she is doing. The downside of this alternative is that exterior hiring may produce bitterness from interior employees that might be eying the position of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting as well as Manufacturing: Offered the affordable pressures and also high quality job required from the advertising agency, it is suggested that Lewis needs to permit the manufacturing device to be a separate feature from the advertising and marketing device. Given that most ad agency had these two features as different devices, it makes more sense to adhere to the standard. Both features might be able to concentrate on their core triggers much more successfully. However, the downside of this strategy would be that additional expenses would certainly have to be birthed for setting up separate production functions. A manufacturing head may have to be hired which might raise expenses for the company.

Assimilation of Marketing with Operations: Given that Lewis is already dealing with the advertising and marketing as well as procedures divisions simultaneously; it makes good sense to incorporate the two features considering that she has been effectively caring for both ends. The fact that the two departments currently have significant differences over appropriation of sources suggests that this assimilation might be able to cause consistency particularly as Lewis would be heading both ends.However there are different negative aspects of this step particularly as it would put way too much burden over Lewis's shoulders. The truth that Lewis has to adjust her administration style for the advertising division suggests that these 2 divisions would certainly be culturally varied. Lewis may not be able to apply one type of leadership design to both departments which might result in ineffectiveness in either one of the 2 functions.


An evaluation of the three options suggests that combination of advertising and operations would not be a possible move because of the large differences in between the two departments although that currently Lewis is taking care of both. While separation of the manufacturing feature may have been a positive step for the advertising and marketing division, the fact that it would indicate positioning a third feature under Lewis's wing indicates this need to be avoided. The integration of the advertising and marketing division is the most effective option in terms of getting the ideal arise from the department. An action prepare for this choice is discussed listed below.

Activity Plan.

Lewis will take control of the role of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Production feature will certainly remain component of advertising under marketing feature.

Lewis will certainly separate herself from procedures.

A democratic leadership design with employee empowerment will be made use of in advertising department.

Open up door plan as well as focus on cross departmental communication will be aimed at getting rid of discord.

Backup strategy.

If the assimilation does not work out as prepared, a backup plan would certainly follow which would certainly divide the manufacturing function from the advertising function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising department without an SVP. In that case the manufacturing feature will absolutely be separated by placing it under an SVP manufacturing.