Background and Facts
J C Penney Company an office materials merchant for tiny as well as moderate sized businesses has lately been associated with planning for a merger with its rival Residence Deport, which has influenced effectiveness levels in departmentswith the elderly manager involved in legal issues presented by the federal Profession Payment. With the Advertising and marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the future. With difficulties in the type of a possible cultural modification and also low staff member spirits, the company wants a total reengineering effort at the advertising department.Trouble Declaration
The prospective social change at the advertising department of J C Penney Company is enhancing unpredictability in the workplace leading to various 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 major function in impacting tactical decisions because Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Trade Payment's treatment at the same time. Offered the fact that the store has an international presence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries might have the ability to impact performance or tactical objectives. Federal Profession Payment's antitrust match versus the merger used up valuable time of the company's elderly monitoring recommending that 'political' factors can have severe effects for an international organisation.
Economic Factors: Economic factors such as the emergence of small companies in the international scenario recommend that J C Penney Company is growing in an environment where there is possible growth of businesses. Fact that store consumers are mostly looking for workplace products for home workplaces recommends that the market has an increasing trend of business owners and residence based companies.
Social factors: Social trends in the economic climate reveal that clients are seeking ease in addition to appealing rates. Market research demonstrates how the customer for J C Penney Company does not have awareness concerning finding solutions which can offer a combination of benefit as well as low costs.
Technical factors: Technology plays a vital role in J C Penney Company's business technique particularly as the organization is piloting Modern technology facilities which would use innovation sales and also assistance in the type of memory upgrades, peripheral installments. (Summary of BUG in appendix 2).
OB Issues and also Symptoms.
Numerous underlying Business Habits concerns can be seen in J C Penney Company's case as highlighted in this section.
Worries regarding social change: There is worry concerning a social modification that would occur as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with most of the staff members already showing unhappiness over this prospective action. This anticipated adjustment has actually created anxiety in the workplace which has actually been coupled with the past stress of preparing the firm for a possible merging with Home Deport.
Demanding Task Atmosphere for Newcomers: There is shortage of employees that can match the stressful environment of a fast-paced organization. Not just does this cause trouble in discovering the ideal individuals, it places anxiety on brand-new hires as can not stand up to the pace and pressure that the company anticipates them to bear.
Dual Coverage Lines: Novices locate this organizational society difficult as well as difficult to handle particularly as populated line partnerships are suggested to be weak as a whole as well as unbiased setup and also efficiency analysis is still done by the solid line manager. This implies that newcomers might shed quality about their particular roles as well as objectives especially as populated line reporting does not maintain them in straight interaction with the solid line managers.
Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had been guessed that the latter would certainly take Krasnow's placement came as a blow to her morale. Lewis might have been capable and also ideal for the work yet the reality that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.
Fear & Work Instability: Anxiety and insecurity can be determined as two major concerns that Lewis would be managing specifically as the merger has now be cancelled and 2 senior executives of the advertising and marketing department would be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders that would certainly not simply be in charge of brining regarding a cultural change yet would likewise have to verify herself in her brand-new role.
Incompatible Management Design of Leader: Lewis's administration design and also its incompatibility with the marketing department's function can likewise be seen as an OB obstacle especially as she has been utilized to dealing with problems in the procedures department where workers are shown to concentrate on processes as well as obtain them. The advertising and marketing division on the other hand can be viewed as a group of individuals that are made use of to being nurtured by Krasnow who focused extra on outcome than processes.
Interdepartmental Differences: Interdepartmental arguments in between three divisions, marketing, merchandizing as well as procedures specifically over the allotment of the advertising mix can be determined as another OB worry. Although the advertising department does not share the exact same vision as the various other 2 departments regarding the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and procedures departments do not agree over the advertising and marketing mix allowance amongst one another either.
Fragmentation in Marketing Division: Fragmentation between the marketing and advertising divisions can be identified as one more OB issue which could require additional interest. The truth that the marketing and advertising sections in the advertising and marketing division are separated is protecting against both departments from getting from each various other's experience and knowledge. Integration of advertising with retailing and operations would become harder if the advertising division itself is broken down which can be one more potential OB concern.
J C Penney Company Analysis
Different theories have actually been made use of to clarify the situations to obtain more clearness regarding the situation available.
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of supervisors believe that juniors are passive and also careless, have little aspiration and resist adjustment. The hard variation of this concept emphasized coercion, tight controls, dangers and also punishments. With time it generates low productivity, refined sabotage and rivalry (Bargain, 2003). The circumstance at J C Penney Company is not totally complying with Theory X, it can be seen that new hires are discovering this environment instead stressful which might eventually lead to a higher disposition of the management in the direction of Theory X. According to McGregor's promoted view, which he called Theory Y, the essential job of the administration is to set up organizational conditions so that individuals can attain their very own objectives best by guiding their initiatives in the direction of business benefits. If people locate no fulfillment in their job, the monitoring would have little choice but to rely upon concept X and also external control (Offer, 2003). Even while examining Lewis's management style, theory X might have been suitable in the procedures department to some extent but the Advertising and marketing department would need dependence on Concept Y so as to get the creative thinking and originality from the teams.
Tuckman's Team effort Theory: As far as Lewis's concern regarding bringing harmony between the advertising and marketing division is concerned, this would originally result in conflict as talked about by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's theory displayed in appendix 3, throughout the initial stage of team advancement, individuals might not bond, as they are active locating their area in the team. By incorporating the marketing and advertising division's work, there may be the same preliminary separate which might bring about the second phase of 'storming' where the groups challenge one another. Nonetheless, it is only throughout the third phase or 'norming' when they would certainly collaborate to share concepts before the group can cause harmony in the 4th phase 'executing'.
When people are provided with adjustment, they enter stage one as well as so there may be emotions like despair, uncertainty, frustration, temper, anxiety, denial and disorientation.The situation at the advertising department of J C Penney Company is similar so Lewis can get comfortable with the suggestion that it is not phenomenal behavior. It is throughout this stage that Lewis will have to provide advice to the division so that they can locate a feeling of direction. It can be seen how Krasnow has currently made this transition simpler by making Lewis get included in the department a year before his real departure.
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has reviews the relevance of 'security needs as being a lower level requirement of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and secure and also out of danger' is at the 2nd level of requirements. Prior to a staff member can be made to develop emotionally, he requires to have his 'Physical 'and also 'Safety' requires fulfilled.
SWOT Analysis for J C Penney Company Case Study
Ramification of Analysis.
The OB analysis has actually taken a look at different concepts to comprehend how to handle the present circumstance handy. The complying with three choices have actually been proposed to aid Lewis manage the business difficulties in the marketing division. Each of these alternatives has actually been proposed for alleviating the shift needed to bring the marketing division in accordance with the requirements of the marketplace and for making the cultural adjustment that would adhere to once the current leader leaves.
Combination of advertising and marketing features. Separating Adverting and also Production features. Integration of Advertising with Procedures.
Analysis of Alternatives.
Assimilation of Advertising & Advertising And Marketing Functions: The in-house marketing company of J C Penney Company is already stamina for the organization in regards to saving up on overheads associated with advertising and marketing and also promo. Because no brand-new employment has been done after Bridget Cole's departure with the reporting line being straight designated to Krasnow for the advertising and marketing function, this is a desirable possibility for incorporating the marketing and advertising features. Judith Shapiro who has earlier been spoken with by Lewis during the earlier merging days has proficiency in business-to-business marketing together with agency as well as retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to deal with both marketing and advertising functions.
The advantage of this technique is that it will certainly incorporate both functions while lowering the demand for employing an additional source for advertising. Lewis would be heading the marketing department and in any type of case her substitute would certainly be needed for the existing duty that she is carrying out. The negative aspect of this choice is that outside hiring might cause bitterness from inner workers that may be looking at the position of EVP after Lewis takes control of Krasnow's position.
Dividing Adverting and also Production: Offered the competitive stress as well as premium quality job called for from the ad agency, it is advised that Lewis should enable the manufacturing device to be a different feature from the advertising system. Given that most ad agency had these two features as separate devices, it makes even more sense to follow the norm. Both features may be able to focus on their core turns on much more efficiently. Nevertheless, the downside of this method would be that added costs would need to be birthed for setting up different production features. A manufacturing head may have to be employed which might increase overheads for the company.
Combination of Advertising with Procedures: Since Lewis is already caring for the advertising and operations departments concurrently; it makes sense to incorporate the two features given that she has been effectively dealing with both ends. The reality that both departments already have significant distinctions over allotment of resources suggests that this integration may be able to produce harmony particularly as Lewis would be heading both ends.However there are different downsides of this action particularly as it would certainly put excessive problem over Lewis's shoulders. The truth that Lewis has to adjust her management design for the advertising division suggests that these 2 divisions would be culturally varied. Lewis might not be able to use one type of management style to both departments which could result in inefficiency in either one of the 2 features.
Recommendation.
An analysis of the 3 alternatives shows that combination of advertising and marketing and procedures would not be a practical relocation due to the large distinctions between the 2 departments in spite of the truth that currently Lewis is dealing with both. While splitting up of the production feature might have been a positive relocation for the advertising department, the reality that it would indicate placing a 3rd feature under Lewis's wing means this must be stayed clear of.
Action Plan.
Lewis will take over the function of EVP Advertising and marketing after Krasnow leaves.
Advertising and Marketing functions would certainly be combined.
Judith Shapiro will be worked with to take Lewis's area as SVP of marketing and advertising.
Manufacturing feature will continue to be component of marketing under advertising feature.
Lewis will divide herself from operations.
An autonomous management design with staff member empowerment will be utilized in advertising and marketing department.
Open up door plan and focus on cross departmental communication will certainly be targeted at eliminating dissonance.
Backup plan.
If the combination does not work out as intended, a backup plan would adhere to which would separate the production feature from the marketing function to decrease the lots 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 most definitely be divided by putting it under an SVP production.