Background and Facts
Jc Penney B an office products retailer for small and medium sized businesses has just recently been associated with preparing for a merger with its competitor House Deport, which has actually influenced effectiveness levels in departmentswith the elderly manager associated with legal complications presented by the federal Profession Commission. With the Advertising and marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the near future. With challenges in the kind of a prospective cultural change as well as reduced employee morale, the organization is in need of a complete reengineering effort at the advertising division.Problem Declaration
The possible cultural modification at the marketing department of Jc Penney B is raising uncertainty in the working environment causing different obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis
PEST analysis
Political Factors: Political factors play a major role in impacting calculated choices given that Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Trade Compensation's treatment while doing so. Given the truth that the store has a global visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations may have the ability to influence efficiency or tactical objectives. Federal Profession Commission's antitrust suit versus the merger took up important time of the company's senior management suggesting that 'political' factors can have significant effects for a global business.
Economic Factors: Financial factors such as the development of local business in the global scenario suggest that Jc Penney B is prospering in an atmosphere where there is possible growth of companies. Reality that shop clients are mainly looking for office materials for residence offices recommends that the market has a rising trend of entrepreneurs and residence based services.
Social factors: Social fads in the economic situation reveal that consumers are trying to find convenience as well as appealing costs. Marketing research demonstrates how the consumer for Jc Penney B lacks awareness concerning discovering services which can supply a mix of convenience as well as affordable.
Technical factors: Technology plays an essential duty in Jc Penney B's business technique especially as the organization is piloting Technology centers which would provide technology sales and support in the type of memory upgrades, outer installations. (Summary of PEST in appendix 2).
OB Issues and also Effects.
Numerous underlying Business Actions concerns can be seen in Jc Penney B's case as highlighted in this area.
Uneasiness regarding social modification: There is concern about a cultural adjustment that would occur once Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with the majority of the personnel already showing discontent over this possible relocation. This predicted adjustment has actually developed tension in the office which has been coupled with the previous stress and anxiety of preparing the company for a potential merger with Residence Deport.
Difficult Job Environment for Newcomers: There is lack of personnel that can match the stressful setting of a hectic organization. Not only does this result in trouble in locating the ideal individuals, it puts stress on new hires as can not hold up against the speed and pressure that the organization expects them to bear.
Twin Coverage Lines: Newbies find this business society cumbersome as well as hard to cope with specifically as dotted line connections are suggested to be weaker generally and also objective setting and efficiency evaluation is still done by the strong line supervisor. This implies that novices might shed clarity concerning their corresponding roles and purposes especially as dotted line coverage does not keep them in direct interaction with the solid line managers.
Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been guessed that the last would certainly take Krasnow's position came as an impact to her spirits. Lewis might have been capable and also appropriate for the job yet the reality that Kransnow's departure would make Coles a direct report to Lewis may have been the reason for Coles' resignation from solutions.
Worry & Job Insecurity: Anxiety as well as insecurity can be recognized as 2 major concerns that Lewis would be dealing with specifically as the merger has actually now be terminated and 2 elderly execs of the marketing department would certainly be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders that would not just be in charge of brining about a social change yet would certainly additionally have to confirm herself in her brand-new duty.
Inappropriate Management Design of Leader: Lewis's monitoring style as well as its conflict with the advertising department's duty can additionally be seen as an OB challenge particularly as she has actually been made use of to managing concerns in the operations department where employees are educated to focus on processes and get them. The advertising division on the various other hand can be seen as a team of people who are utilized to being supported by Krasnow that concentrated much more on outcome than processes.
Interdepartmental Disagreements: Interdepartmental arguments in between three divisions, advertising, merchandizing and procedures respectively over the allocation of the marketing mix can be determined as an additional OB issue. Although the advertising division does not share the very same vision as the other 2 departments concerning the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and procedures departments do not concur over the marketing mix appropriation among each other either.
Disintegration in Marketing Division: Disintegration in between the marketing and advertising divisions can be identified as another OB issue which can require further focus. The truth that the advertising and marketing sections in the advertising department are separated is preventing both divisions from acquiring from each other's experience and also experience. Integration of advertising with retailing and also procedures would certainly end up being more difficult if the advertising department itself is disintegrated which can be another potential OB worry.
Jc Penney B Analysis
Numerous concepts have been made use of to clarify the conditions to obtain additional quality regarding the scenario available.
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that subordinates are easy as well as lazy, have little aspiration and also resist modification. The scenario at Jc Penney B is not entirely complying with Theory X, it can be seen that brand-new hires are discovering this atmosphere instead difficult which may at some point lead to a higher disposition of the administration towards Theory X. Even while examining Lewis's management design, concept X may have been appropriate in the operations division to some level but the Advertising and marketing division would call for reliance on Theory Y in order to get the creative thinking and creativity from the groups.
Tuckman's Team effort Theory: Regarding Lewis's concern about bringing consistency in between the advertising and marketing department is concerned, this would initially cause clash as talked about by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's theory shown in appendix 3, throughout the preliminary stage of team growth, people might not bond, as they are active locating their area in the group. By incorporating the marketing and advertising division's job, there may be the same first separate which can lead to the second phase of 'storming' where the groups challenge each other. However, it is just throughout the third phase or 'norming' when they would come together to share ideas before the team can produce synergy in the 4th phase 'carrying out'.
When individuals are presented with change, they get in phase one and also so there might be feelings like despair, uncertainty, irritation, rage, anxiety, denial and also disorientation.The circumstance at the advertising department of Jc Penney B is similar so Lewis can obtain comfortable with the suggestion that it is not extraordinary behavior. It is during this phase that Lewis will certainly have to give guidance to the department so that they can find a sense of instructions. It can be seen how Krasnow has actually already made this shift easier by making Lewis obtain included in the division a year prior to his real departure.
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has talks about the importance of 'security needs as being a lower level requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel safe and secure and out of risk' is at the second level of requirements. Before an employee can be made to create psychologically, he requires to have his 'Physical 'and also 'Security' requires met.
SWOT Analysis for Jc Penney B Case Study
Implication of Analysis.
The OB analysis has looked at numerous concepts to understand just how to deal with the existing circumstance at hand. The following 3 alternatives have actually been recommended to help Lewis take care of the business difficulties in the advertising department. Each of these options has actually been suggested for relieving the change required to bring the advertising division according to the demands of the market and also for making the cultural modification that would follow as soon as the existing leader leaves.
Assimilation of marketing and advertising features. Separating Adverting and Manufacturing features. Combination of Advertising And Marketing with Workflow.
Examination of Alternatives.
Integration of Marketing & Advertising And Marketing Functions: The internal advertising and marketing agency of Jc Penney B is already strength for the company in regards to saving up on expenses related to advertising and marketing and also promo. Because no new employment has been done after Bridget Cole's departure with the coverage line being directly assigned to Krasnow for the advertising and marketing feature, this is a beneficial possibility for incorporating the marketing and advertising features. Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merging days has experience in business-to-business advertising along with agency and retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to handle both marketing and advertising functions.
The advantage of this method is that it will certainly incorporate the two features while lowering the need for hiring an extra resource for advertising and marketing. Lewis would certainly be heading the advertising division as well as in any type of case her substitute would be needed for the present function that she is executing. The downside of this option is that outside hiring may bring about bitterness from internal employees who might be eying the position of EVP after Lewis takes over Krasnow's position.
Dividing Adverting and Production: Provided the competitive pressures and high top quality job called for from the advertising firm, it is recommended that Lewis ought to allow the manufacturing device to be a separate feature from the advertising and marketing system. Since a lot of marketing agencies had these two functions as separate devices, it makes more feeling to comply with the norm.
Integration of Advertising with Workflows: Because Lewis is currently dealing with the marketing and also operations divisions all at once; it makes sense to integrate the two features since she has been successfully caring for both ends. The fact that the two departments currently have significant differences over allowance of sources suggests that this combination might have the ability to cause consistency especially as Lewis would be heading both ends.However there are different downsides of this move particularly as it would place excessive worry over Lewis's shoulders. The reality that Lewis needs to adjust her monitoring style for the advertising department recommends that these two divisions would certainly be culturally diverse. Lewis might not be able to apply one type of management style to both departments which might result in inadequacy in either one of the two features.
Recommendation.
An evaluation of the three choices suggests that integration of advertising and marketing and also operations would not be a possible step due to the vast distinctions between the 2 divisions in spite of the truth that currently Lewis is handling both. While splitting up of the production function might have been a positive move for the marketing division, the truth that it would imply positioning a 3rd function under Lewis's wing indicates this ought to be avoided.
Action Strategy.
Lewis will take over the duty of EVP Advertising after Krasnow leaves.
Marketing and advertising features would be merged.
Judith Shapiro will be hired to take Lewis's location as SVP of advertising and marketing.
Manufacturing function will certainly continue to be part of marketing under marketing function.
Lewis will divide herself from procedures.
An autonomous leadership style with worker empowerment will be used in advertising department.
Open up door policy and focus on cross departmental communication will be focused on eliminating dissonance.
Backup strategy.
If the integration does not exercise as intended, a contingency strategy would certainly adhere to which would divide the production feature from the advertising feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the marketing division without an SVP. Because case the production function will certainly be separated by positioning it under an SVP manufacturing.