Great Eastern Toys B Case Study Analysis


Home >> Harvard >> Great Eastern Toys B >>

Great Eastern Toys B Case Study Solution

Background and Facts

Great Eastern Toys B a workplace materials retailer for little and average sized services has actually recently been associated with preparing for a merger with its competitor Residence Deport, which has actually affected effectiveness degrees in departmentswith the senior manager associated with legal problems presented by the federal Trade Payment. With the Advertising and marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the near future. With difficulties in the kind of a potential social adjustment and reduced staff member spirits, the company wants a full reengineering effort at the advertising division.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising division of Great Eastern Toys B is enhancing uncertainty in the working environment leading to 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 significant duty in impacting calculated decisions since Stapes Inc. had to desert its plans of combining with Office Deport after the Federal Profession Payment's intervention in the process. Given the truth that the shop has a global existence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations may have the ability to affect performance or critical goals. Federal Profession Payment's antitrust suit versus the merger used up important time of the company's elderly monitoring suggesting that 'political' factors can have major ramifications for an international organisation.

Economic Factors: Economic factors such as the development of small businesses in the international circumstance recommend that Great Eastern Toys B is thriving in an atmosphere where there is potential development of organisations. Along with this, truth that store clients are mainly looking for workplace supplies for office suggests that the market has a climbing pattern of business owners and home based organisations.

Social factors: Social fads in the economic situation reveal that consumers are looking for comfort along with eye-catching prices. Marketing research shows how the consumer for Great Eastern Toys B does not have awareness concerning locating services which can supply a mix of ease as well as low costs.

Technological factors: Technology plays a crucial function in Great Eastern Toys B's organisation method specifically as the company is piloting Innovation centers which would certainly provide technology sales as well as assistance in the kind of memory upgrades, outer setups. (Summary of PEST in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Business Habits problems can be seen in Great Eastern Toys B's case as highlighted in this section.

Uneasiness concerning social adjustment: There is concern about a cultural change that would take place when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising And Marketing with most of the staff members currently showing discontent over this prospective step. This anticipated modification has produced stress and anxiety in the work environment which has been coupled with the past tension of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Demanding Work Atmosphere for Newcomers: There is shortage of personnel that can match the difficult environment of a fast-paced organization. Not only does this cause trouble in discovering the best individuals, it puts stress and anxiety on brand-new hires as can not stand up to the speed and also pressure that the company expects them to bear.

Dual Reporting Lines: Novices discover this business society difficult and challenging to deal with especially as populated line partnerships are implied to be weaker generally as well as unbiased setting and also efficiency analysis is still done by the solid line supervisor. This indicates that newbies could shed clearness regarding their particular duties as well as purposes particularly as dotted line coverage does not keep them in straight communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had actually been guessed that the last would certainly take Krasnow's position came as a blow to her morale. Lewis might have been qualified as well as ideal for the work but the reality that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.

Concern & Task Insecurity: Anxiety and also instability can be identified as 2 significant problems that Lewis would be managing specifically as the merging has actually now be cancelled as well as two senior execs of the marketing department would certainly be leaving. The entire duty of the division would be dropping on Lewis's shoulders that would certainly not simply supervise of brining concerning a cultural change but would likewise need to verify herself in her new function.

Incompatible Monitoring Style of Leader: Lewis's management design and also its incompatibility with the marketing department's duty can additionally be seen as an OB challenge particularly as she has been utilized to managing issues in the procedures department where personnel are instructed to concentrate on processes and also obtain them right. The advertising department on the various other hand can be seen as a group of people that are used to being supported by Krasnow who focused more on output than procedures.

Interdepartmental Differences: Interdepartmental disagreements between 3 divisions, advertising, merchandizing and also operations respectively over the allocation of the advertising mix can be determined as another OB issue. The advertising division does not share the very same vision as the various other two departments concerning the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing as well as procedures divisions do not concur over the advertising and marketing mix appropriation amongst one another either.

Disintegration in Marketing Department: Disintegration between the marketing and advertising departments can be identified as an additional OB problem which might require further focus. The reality that the advertising and marketing areas in the advertising department are disconnected is avoiding both divisions from gaining from each various other's experience and experience. Integration of advertising and marketing with merchandising and operations would certainly become more difficult if the advertising department itself is degenerated which can be another possible OB concern.

Great Eastern Toys B Analysis

Various concepts have actually been made use of to discuss the situations to obtain additional clearness concerning the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers think that staffs are easy and careless, have little passion and also withstand adjustment. The tough version of this concept emphasized threat, limited controls, threats and also punishments. In time it generates low performance, subtle sabotage and competition (Bargain, 2003). The situation at Great Eastern Toys B is not entirely complying with Concept X, it can be seen that brand-new hires are locating this environment instead demanding which may eventually lead to a higher inclination of the administration in the direction of Theory X. As per McGregor's advocated view, which he called Theory Y, the vital job of the administration is to arrange business conditions so that individuals can achieve their very own goals best by routing their efforts towards business incentives. If individuals discover no contentment in their work, the management would have little selection but to rely upon concept X and also outside control (Bargain, 2003). Also while assessing Lewis's administration style, concept X might have been suitable in the procedures department to some extent however the Advertising and marketing department would certainly require reliance on Concept Y to get the imagination and also originality from the groups.

Tuckman's Team effort Theory: As for Lewis's worry about bringing harmony between the advertising and marketing division is worried, this would at first result in conflict as reviewed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, during the first phase of team advancement, individuals might not bond, as they are busy discovering their area in the group. By incorporating the advertising and marketing division's job, there may coincide preliminary disconnect which might result in the second phase of 'storming' where the teams test each other. It is only during the third stage or 'norming' when they would certainly come with each other to share suggestions before the group can bring around synergy in the 4th stage 'performing'.

When individuals are presented with modification, they enter phase one and also so there might be feelings like unhappiness, unpredictability, stress, rage, anxiety, denial as well as disorientation.The circumstance at the marketing division of Great Eastern Toys B is similar so Lewis can get comfortable with the concept that it is not phenomenal behavior. It is during this stage that Lewis will have to offer support to the division so that they can find a sense of direction. It can be seen exactly how Krasnow has actually currently made this transition easier by making Lewis get entailed in the division a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has discusses the value of 'protection requires as being a lower level need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel secure as well as out of threat' is at the second level of needs. Before an employee can be made to create mentally, he requires to have his 'Physical 'and 'Safety' needs met.

SWOT Analysis for Great Eastern Toys B Case Study

Implication of Analysis.

The OB analysis has considered numerous theories to comprehend how to deal with the existing situation handy. The complying with three options have been recommended to aid Lewis handle the business challenges in the advertising and marketing division. Each of these choices has been proposed for relieving the transition needed to bring the marketing department in line with the needs of the marketplace and also for making the cultural modification that would adhere to when the existing leader leaves.

Combination of marketing and advertising functions. Separating Adverting and Manufacturing features. Assimilation of Advertising with Workflow.

Examination of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merging days has expertise in business-to-business advertising along with agency and also retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to deal with both advertising and also marketing functions.

The benefit of this method is that it will integrate the two features while lowering the demand for working with an additional source for marketing. In addition to this, Lewis would certainly be heading the advertising department as well as regardless her substitute would certainly be required for the current role that she is carrying out. The negative aspect of this choice is that exterior hiring may cause animosity from inner personnel that might be eying the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Production: Given the affordable stress and also high quality work needed from the ad agency, it is recommended that Lewis must permit the manufacturing system to be a separate function from the marketing device. Since the majority of advertising agencies had these 2 features as different systems, it makes more sense to comply with the standard. In addition to this, both functions might be able to focus on their core activates much more efficiently. Nevertheless, the disadvantage of this technique would be that extra prices would certainly need to be borne for establishing separate production functions. In addition to this, a production head might need to be hired which can increase expenses for the company.

Combination of Advertising with Procedures: Since Lewis is currently caring for the advertising as well as procedures departments simultaneously; it makes good sense to incorporate the two features considering that she has been efficiently caring for both ends. The truth that the two divisions already have significant differences over allowance of resources recommends that this assimilation might be able to cause consistency especially as Lewis would certainly be heading both ends.However there are different disadvantages of this relocation particularly as it would put way too much problem over Lewis's shoulders. The fact that Lewis needs to adapt her monitoring style for the marketing division recommends that these 2 divisions would be culturally varied. Along with this, Lewis may not have the ability to apply one kind of leadership style to both departments which can lead to inadequacy in either one of the two features.


An assessment of the 3 alternatives shows that combination of marketing and procedures would not be a viable move due to the vast differences in between the 2 departments regardless of the reality that currently Lewis is taking care of both. While separation of the production feature might have been a desirable move for the advertising and marketing department, the fact that it would certainly mean positioning a third function under Lewis's wing means this should be prevented.

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

Marketing and advertising features would be combined.

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

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

Lewis will separate herself from operations.

A democratic management design with staff member empowerment will be made use of in advertising department.

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

Backup plan.

If the assimilation does not work out as planned, a contingency strategy would adhere to which would separate the production function from the advertising feature to decrease 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 manufacturing function will certainly be divided by positioning it under an SVP production.