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Jc Penney B Case Study Solution

Background and Facts

Jc Penney B an office products store for little as well as moderate sized businesses has recently been associated with preparing for a merging with its competitor Home Deport, which has affected efficiency levels in departmentswith the senior supervisor involved in legal complications put forth by the government Trade Payment. With the Advertising and marketing Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the role in the near future. With difficulties in the form of a potential social adjustment and reduced worker morale, the organization wants a complete reengineering effort at the marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the advertising department of Jc Penney B is boosting unpredictability in the working environment leading to various difficulties for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing calculated decisions considering that Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Trade Commission's intervention while doing so. Given the reality that the store has a global visibility with branches in UK, USA, Canada and Germany, political consider each of these countries may be able to influence efficiency or calculated objectives. Federal Profession Compensation's antitrust match versus the merging used up valuable time of the company's elderly monitoring recommending that 'political' factors can have severe effects for a global service.

Economic Factors: Economic factors such as the development of small businesses in the international scenario suggest that Jc Penney B is flourishing in a setting where there is prospective development of companies. Along with this, truth that store consumers are primarily searching for workplace supplies for home offices suggests that the market has a rising pattern of entrepreneurs and online organisations.

Social factors: Social patterns in the economic climate show that consumers are looking for ease along with eye-catching rates. Market research shows how the client for Jc Penney B lacks understanding concerning locating remedies which can offer a combination of ease and affordable.

Technical factors: Innovation plays a vital role in Jc Penney B's company technique especially as the company is piloting Modern technology centers which would certainly provide technology sales and also support in the type of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues as well as Symptoms.

Numerous underlying Organizational Behavior problems can be seen in Jc Penney B's case as highlighted in this area.

Uneasiness about social modification: There is uneasiness concerning a cultural adjustment that would occur when Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with most of the employee already showing discontent over this potential action. This expected modification has actually created tension in the office which has been paired with the past anxiety of preparing the firm for a prospective merger with Home Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is lack of workers that can match the stressful environment of a fast-paced company. Not only does this lead to trouble in locating the best individuals, it puts anxiety on brand-new hires as can not withstand the pace as well as pressure that the organization anticipates them to bear.

Dual Reporting Lines: Newbies discover this business culture troublesome and also hard to manage particularly as populated line relationships are meant to be weaker as a whole as well as unbiased setting and also efficiency assessment is still done by the strong line manager. This suggests that newbies could shed clearness regarding their respective roles as well as purposes especially as populated line reporting does not keep them in direct communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had been guessed that the latter would certainly take Krasnow's placement came as an impact to her spirits. Lewis might have been qualified and also suitable for the job but the reality that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Work Instability: Fear as well as insecurity can be determined as 2 major problems that Lewis would be handling particularly as the merger has now be cancelled as well as 2 elderly execs of the advertising division would certainly be leaving. The whole responsibility of the division would certainly be falling on Lewis's shoulders who would certainly not simply be in charge of brining about a social modification however would likewise have to show herself in her new role.

Inappropriate Monitoring Design of Leader: Lewis's monitoring design as well as its incompatibility with the marketing division's role can likewise be seen as an OB difficulty specifically as she has been utilized to taking care of issues in the procedures division where personnel are shown to focus on procedures and also get them. The marketing department on the other hand can be viewed as a team of individuals who are utilized to being nurtured by Krasnow that concentrated extra on result than procedures.

Interdepartmental Differences: Interdepartmental disputes between 3 departments, marketing, merchandizing as well as operations specifically over the allowance of the advertising and marketing mix can be identified as an additional OB issue. The advertising department does not share the exact same vision as the other 2 divisions relating to the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and operations divisions do not concur over the advertising mix allotment amongst one another either.

Fragmentation in Advertising Division: Disintegration in between the advertising and marketing departments can be recognized as an additional OB problem which might need more interest. The reality that the marketing and advertising sections in the marketing department are separated is protecting against both divisions from gaining from each other's experience and experience. Integration of advertising and marketing with retailing and procedures would become harder if the advertising and marketing division itself is degenerated which can be another possible OB concern.

Jc Penney B Analysis

Various concepts have actually been utilized to discuss the situations to obtain additional quality concerning the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors believe that staffs are easy and careless, have little passion and also stand up to modification. The circumstance at Jc Penney B is not entirely adhering to Theory X, it can be seen that new hires are finding this atmosphere instead demanding which might at some point lead to a better inclination of the management in the direction of Theory X. Even while evaluating Lewis's management design, theory X may have been ideal in the operations division to some extent yet the Marketing division would certainly require dependence on Concept Y in order to get the creative thinking and creativity from the groups.

Tuckman's Synergy Concept: As far as Lewis's issue concerning bringing consistency between the marketing and advertising department is worried, this would initially result in contrast as discussed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's theory displayed in appendix 3, during the first stage of group development, people may not bond, as they are hectic discovering their location in the group. By combining the advertising and marketing department's work, there might coincide preliminary detach which might bring about the second phase of 'storming' where the groups challenge one another. It is just during the 3rd stage or 'norming' when they would certainly come with each other to share ideas prior to the team can bring about harmony in the fourth phase 'carrying out'.

When people are provided with adjustment, they go into stage one and also so there may be emotions like sadness, unpredictability, disappointment, temper, fear, denial and disorientation.The circumstance at the marketing department of Jc Penney B is comparable so Lewis can obtain comfy with the suggestion that it is not extraordinary behavior. It is throughout this phase that Lewis will have to offer guidance to the department so that they can locate a sense of direction. It can be seen exactly how Krasnow has actually already made this shift less complicated by making Lewis get involved in the division a year before his actual separation.
Vrio Analysis
Maslow's Demand pecking order: The OB problem related to insecurity at the workplace has been set off to start with by the adjustment in management as well as secondly by the fact that the merging will certainly no more be initiated. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has goes over the value of 'protection requires as being a reduced degree demand of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to feel secure as well as safe' goes to the second degree of needs. Prior to a staff member can be made to develop mentally, he requires to have his 'Physiological 'and also 'Security' requires met. This indicates that unless the employees are made to feel safe and secure about their current employment condition in Jc Penney B they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Jc Penney B Case Study

Implication of Analysis.

The OB analysis has actually considered various theories to recognize just how to handle the current circumstance at hand. The complying with three choices have been suggested to assist Lewis deal with the organizational obstacles in the marketing division. Each of these choices has been proposed for easing the shift required to bring the advertising and marketing division in accordance with the demands of the market and also for making the social adjustment that would certainly comply with as soon as the current leader leaves.

Assimilation of marketing and advertising features. Separating Adverting and also Manufacturing features. Integration of Advertising with Workflow.

Evaluation of Alternatives.

Combination of Marketing & Advertising Functions: The internal advertising and marketing firm of Jc Penney B is already toughness for the organization in terms of conserving up on expenses connected to marketing and also promotion. Because no brand-new recruitment has been done after Bridget Cole's departure with the coverage line being directly appointed to Krasnow for the advertising feature, this is a beneficial chance for incorporating the advertising and marketing features. Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merging days has proficiency in business-to-business advertising along with agency and also retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing functions.

The advantage of this approach is that it will certainly integrate both features while lowering the need for working with an extra source for advertising and marketing. Lewis would be heading the advertising and marketing division as well as in any case her substitute would be required for the present duty that she is carrying out. The disadvantage of this alternative is that exterior hiring may bring about resentment from inner workers that may be eying the placement of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Production: Offered the affordable pressures and also high top quality work needed from the advertising firm, it is advised that Lewis must permit the production system to be a separate function from the advertising device. Considering that many marketing firms had these 2 features as different systems, it makes even more sense to comply with the standard.

Combination of Advertising with Workflows: Because Lewis is currently looking after the advertising and marketing and also procedures divisions at the same time; it makes good sense to incorporate the two features considering that she has actually been effectively dealing with both ends. The reality that the two departments already have significant differences over allocation of resources recommends that this integration might be able to produce consistency particularly as Lewis would certainly be heading both ends.However there are various drawbacks of this move particularly as it would certainly place excessive problem over Lewis's shoulders. The truth that Lewis needs to adjust her monitoring design for the marketing division recommends that these two departments would certainly be culturally diverse. Along with this, Lewis may not have the ability to apply one kind of management style to both divisions which can result in inefficiency in either among the two features.


An analysis of the 3 choices suggests that assimilation of advertising and marketing and operations would certainly not be a possible move due to the substantial distinctions in between both departments although that currently Lewis is managing both. While separation of the production feature may have been a desirable relocation for the advertising and marketing department, the truth that it would certainly indicate positioning a 3rd feature under Lewis's wing means this ought to be avoided. The combination of the advertising department is the best choice in terms of getting the optimum results from the department. An action prepare for this option is talked about listed below.

Action Strategy.
Lewis will certainly take control of the function of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

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

Lewis will certainly divide herself from operations.

An autonomous leadership design with staff member empowerment will certainly be used in marketing division.

Open door plan and also focus on cross department communication will be aimed at eliminating disharmony.

Backup strategy.

If the integration does not work out as prepared, a backup plan would follow which would certainly divide the production function from the marketing feature to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising division without an SVP. Because case the manufacturing feature will definitely be separated by positioning it under an SVP manufacturing.