Habitual Chocolate Expansion Opportunities Case Study Solution


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Habitual Chocolate Expansion Opportunities Case Study Help

Background and Facts

Habitual Chocolate Expansion Opportunities an office materials merchant for little and also average sized companies has just recently been involved in planning for a merger with its competitor House Deport, which has actually impacted effectiveness degrees in departmentswith the senior manager involved in lawful complications presented by the federal Trade Payment. With the Advertising Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the function in the future. With difficulties in the form of a prospective social modification as well as low worker morale, the company is in need of a total reengineering effort at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The possible social modification at the marketing department of Habitual Chocolate Expansion Opportunities is boosting uncertainty in the working environment resulting in various obstacles 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 function in impacting tactical choices considering that Stapes Inc. needed to abandon its plans of combining with Workplace Deport after the Federal Profession Commission's intervention at the same time. Given the fact that the shop has a global existence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries might be able to influence efficiency or critical objectives. Federal Trade Compensation's antitrust match against the merger took up useful time of the organization's senior monitoring suggesting that 'political' factors can have significant effects for a worldwide service.

Economic Factors: Economic factors such as the emergence of small businesses in the international situation suggest that Habitual Chocolate Expansion Opportunities is flourishing in an environment where there is prospective development of companies. Reality that shop customers are mainly looking for workplace products for residence workplaces suggests that the market has a climbing fad of business owners and residence based companies.

Social factors: Social patterns in the economic climate show that consumers are seeking comfort in addition to attractive prices. Market research shows how the customer for Habitual Chocolate Expansion Opportunities lacks recognition regarding discovering solutions which can use a combination of benefit and also affordable.

Technological factors: Modern technology plays a crucial duty in Habitual Chocolate Expansion Opportunities's company strategy particularly as the company is piloting Innovation centers which would certainly provide innovation sales and also support in the kind of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and also Symptoms.

Several underlying Business Actions issues can be seen in Habitual Chocolate Expansion Opportunities's case as highlighted in this section.

Uneasiness regarding social change: There is apprehension concerning a cultural change that would certainly take place once Todd Krasnow leaves from his position as the Exec Vice President of Advertising with a lot of the staff members already showing unhappiness over this potential relocation. This expected change has developed stress in the workplace which has actually been paired with the previous stress of preparing the company for a prospective merger with Home Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is scarcity of workers that can match the stressful environment of a hectic organization. Not just does this cause problem in locating the ideal people, it places stress and anxiety on new hires as can not endure the rate as well as stress that the organization anticipates them to bear.

Double Reporting Lines: Beginners discover this organizational culture difficult and hard to manage particularly as populated line relationships are meant to be weaker in general as well as objective setting as well as efficiency analysis is still done by the solid line manager. This suggests that newcomers can lose clearness concerning their particular functions and purposes especially as populated line coverage does not keep them in straight communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had actually been guessed that the last would certainly take Krasnow's placement came as a blow to her spirits. Lewis might have been qualified and appropriate for the job however the fact that Kransnow's separation would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Anxiety & Task Insecurity: Anxiety and also insecurity can be determined as 2 major issues that Lewis would certainly be managing particularly as the merging has actually now be cancelled as well as 2 senior executives of the advertising department would certainly be leaving. The whole duty of the department would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining about a cultural change however would certainly also have to prove herself in her brand-new duty.

Incompatible Monitoring Design of Leader: Lewis's monitoring design as well as its incompatibility with the advertising division's role can additionally be seen as an OB challenge particularly as she has actually been used to taking care of concerns in the procedures division where employees are taught to concentrate on procedures as well as obtain them. The advertising department on the various other hand can be seen as a team of individuals that are utilized to being nurtured by Krasnow who focused more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental differences in between 3 departments, marketing, merchandizing as well as operations respectively over the allotment of the advertising and marketing mix can be identified as one more OB problem. The advertising and marketing division does not share the same vision as the various other 2 departments relating to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and also operations departments do not agree over the advertising and marketing mix allotment among one another either.

Fragmentation in Advertising Department: Fragmentation between the marketing and advertising departments can be determined as an additional OB issue which could require further focus. The fact that the marketing and advertising sections in the advertising department are disconnected is avoiding both divisions from getting from each other's experience and also know-how. Integration of advertising and marketing with retailing and also procedures would become more difficult if the marketing department itself is degenerated which can be one more potential OB concern.

Habitual Chocolate Expansion Opportunities Analysis

Different theories have actually been utilized to explain the situations to get further clearness about the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of supervisors think that subordinates are easy and also careless, have little passion and resist change. The situation at Habitual Chocolate Expansion Opportunities is not totally following Theory X, it can be seen that brand-new hires are locating this environment instead demanding which might at some point lead to a higher disposition of the management towards Theory X. Also while examining Lewis's monitoring style, concept X may have been appropriate in the operations division to some extent yet the Advertising department would call for dependence on Concept Y in order to get the creative thinking and creativity from the teams.

Tuckman's Synergy Concept: As much as Lewis's issue about bringing consistency in between the advertising and also advertising division is concerned, this would initially lead to contrast as gone over by Bruce Tuckman in his 'Synergy Concept'. By combining the marketing and marketing division's job, there may be the very same preliminary disconnect which can lead to the 2nd stage of 'storming' where the groups challenge one an additional.

When people are provided with change, they enter phase one as well as so there may be emotions like unhappiness, unpredictability, stress, anger, worry, denial and disorientation.The scenario at the advertising department of Habitual Chocolate Expansion Opportunities is comparable so Lewis can obtain comfy with the concept that it is not extraordinary actions. It is throughout this phase that Lewis will certainly have to offer advice to the division so that they can find a sense of instructions. It can be seen how Krasnow has currently made this shift easier by making Lewis obtain involved in the division a year prior to his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has reviews the value of 'safety and security requires as being a reduced degree demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel safe as well as out of threat' is at the 2nd level of needs. Before a staff member can be made to develop mentally, he needs to have his 'Physical 'and also 'Safety' requires fulfilled.

SWOT Analysis for Habitual Chocolate Expansion Opportunities Case Study

Ramification of Analysis.

The OB analysis has taken a look at various theories to recognize just how to handle the present scenario at hand. The following 3 alternatives have actually been proposed to assist Lewis manage the business challenges in the advertising and marketing division. Each of these choices has actually been proposed for alleviating the shift needed to bring the advertising and marketing division according to the demands of the market and for making the social change that would adhere to as soon as the existing leader leaves.

Integration of marketing and advertising features. Dividing Adverting as well as Production functions. Integration of Advertising And Marketing with Operations.

Analysis of Alternatives.

Integration of Advertising And Marketing & Advertising Functions: The internal advertising agency of Habitual Chocolate Expansion Opportunities is currently stamina for the organization in regards to conserving up on expenses associated with advertising and promotion. Because no brand-new employment has actually been done after Bridget Cole's departure with the reporting line being straight designated to Krasnow for the advertising feature, this is a positive possibility for incorporating the advertising and marketing functions. Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merging days has proficiency in business-to-business marketing in addition to agency as well as retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to deal with both advertising and marketing features.

The advantage of this technique is that it will certainly integrate the two functions while minimizing the demand for employing an added source for advertising. Lewis would be heading the advertising division and in any kind of case her replacement would be needed for the present function that she is doing. The negative aspect of this choice is that outside hiring may bring about animosity from interior workers who might be eying the position of EVP after Lewis takes over Krasnow's placement.

Separating Adverting as well as Production: Provided the affordable stress and high top quality work called for from the advertising and marketing firm, it is suggested that Lewis should allow the manufacturing device to be a separate function from the advertising system. Given that most advertising companies had these two features as different devices, it makes more feeling to comply with the norm.

Assimilation of Advertising with Workflows: Considering that Lewis is currently caring for the advertising and marketing as well as operations divisions at the same time; it makes good sense to incorporate the two functions since she has been effectively taking care of both ends. The reality that both divisions currently have significant distinctions over allowance of sources suggests that this assimilation might have the ability to bring about consistency especially as Lewis would certainly be heading both ends.However there are different negative aspects of this action especially as it would certainly put too much concern over Lewis's shoulders. The truth that Lewis has to adapt her management design for the advertising and marketing department suggests that these 2 divisions would be culturally varied. Along with this, Lewis may not have the ability to use one type of management design to both divisions which can result in inadequacy in either one of both features.


An assessment of the 3 choices shows that integration of advertising and marketing and operations would certainly not be a practical action due to the huge differences in between both departments although that currently Lewis is taking care of both. While separation of the production feature may have been a favorable relocation for the advertising department, the fact that it would certainly mean positioning a third function under Lewis's wing means this ought to be avoided. The integration of the marketing division is the most effective option in terms of getting the ideal results from the department. An activity prepare for this alternative is reviewed below.

Activity Plan.
Lewis will take over the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Manufacturing feature will remain component of advertising under advertising function.

Lewis will divide herself from procedures.

A democratic management style with staff member empowerment will be utilized in advertising division.

Open door plan as well as focus on cross departmental interaction will be focused on eliminating discord.

Backup plan.

If the combination does not work out as prepared, a contingency plan would certainly follow which would certainly separate the production function from the advertising and marketing function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the marketing division without an SVP. In that case the manufacturing feature will definitely be separated by placing it under an SVP production.