Johansens The New Scorecard System Northwest Regional Manager Handout 8 Case Study Solution


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Background and Facts

Johansens The New Scorecard System Northwest Regional Manager Handout 8 an office supplies store for small and also medium sized businesses has actually just recently been associated with planning for a merger with its rival House Deport, which has influenced efficiency degrees in departmentswith the senior manager associated with legal issues presented by the government Trade Commission. With the Advertising and marketing Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the near future. With difficulties in the kind of a possible social modification and reduced employee morale, the company requires a total reengineering effort at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The potential social modification at the advertising division of Johansens The New Scorecard System Northwest Regional Manager Handout 8 is boosting unpredictability in the working environment resulting in numerous difficulties for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting strategic choices given that Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Profession Compensation's treatment at the same time. Offered the truth that the store has an international visibility with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations may be able to affect efficiency or strategic goals. Federal Trade Compensation's antitrust fit against the merger occupied valuable time of the company's senior administration suggesting that 'political' factors can have severe ramifications for a global company.

Economic Factors: Financial factors such as the development of small businesses in the global circumstance recommend that Johansens The New Scorecard System Northwest Regional Manager Handout 8 is prospering in an atmosphere where there is potential development of organisations. Reality that shop clients are primarily looking for office supplies for home workplaces recommends that the market has a rising fad of business owners as well as home based services.

Social factors: Social fads in the economic situation show that clients are seeking comfort as well as attractive costs. Market research demonstrates how the consumer for Johansens The New Scorecard System Northwest Regional Manager Handout 8 does not have understanding about locating options which can use a combination of benefit and also inexpensive.

Technical factors: Modern technology plays a vital duty in Johansens The New Scorecard System Northwest Regional Manager Handout 8's business technique specifically as the company is piloting Modern technology facilities which would certainly provide innovation sales and also assistance in the type of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Business Behavior problems can be seen in Johansens The New Scorecard System Northwest Regional Manager Handout 8's case as highlighted in this area.

Uneasiness regarding cultural modification: There is worry about a cultural adjustment that would occur once Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Marketing with most of the personnel already showing discontent over this possible action. This predicted change has developed stress in the workplace which has been paired with the previous stress of preparing the firm for a possible merging with House Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is shortage of personnel that can match the stressful setting of a fast-paced organization. Not only does this result in trouble in discovering the right people, it places anxiety on brand-new hires as can not hold up against the rate as well as pressure that the organization anticipates them to bear.

Double Coverage Lines: Novices find this organizational society troublesome and difficult to manage specifically as dotted line partnerships are suggested to be weak generally and also unbiased setup as well as performance examination is still done by the solid line supervisor. This implies that newbies can lose clarity about their particular functions and purposes particularly as dotted line coverage does not maintain them in straight communication with the strong line supervisors.

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

Worry & Task Insecurity: Concern as well as instability can be recognized as two significant concerns that Lewis would be handling specifically as the merging has actually currently be terminated and two elderly execs of the advertising department would be leaving. The whole duty of the department would certainly be dropping on Lewis's shoulders that would not just supervise of brining regarding a social adjustment yet would likewise have to show herself in her new duty.

Inappropriate Management Design of Leader: Lewis's administration design as well as its incompatibility with the advertising and marketing division's duty can additionally be viewed as an OB challenge especially as she has actually been made use of to handling concerns in the operations department where employees are taught to focus on processes and also get them right. The advertising and marketing department on the other hand can be seen as a group of individuals who are utilized to being nurtured by Krasnow that concentrated extra on result than procedures.

Interdepartmental Differences: Interdepartmental differences in between 3 departments, advertising, merchandizing and also operations specifically over the allotment of the advertising mix can be determined as one more OB worry. Although the advertising division does not share the same vision as the other two departments pertaining to the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and also operations departments do not agree over the advertising and marketing mix allocation amongst one another either.

Fragmentation in Advertising Department: Fragmentation between the advertising and marketing departments can be recognized as one more OB issue which can need further focus. The fact that the marketing and advertising sections in the advertising department are separated is stopping both divisions from obtaining from each other's experience and also expertise. Integration of advertising and marketing with merchandising as well as operations would certainly become more difficult if the advertising division itself is broken down which can be another prospective OB concern.

Johansens The New Scorecard System Northwest Regional Manager Handout 8 Analysis

Different concepts have been used to describe the circumstances to get further clarity regarding the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers think that juniors are passive and also lazy, have little aspiration and withstand change. The hard version of this theory highlighted threat, limited controls, threats and penalties. Over time it produces reduced efficiency, subtle sabotage and also rivalry (Offer, 2003). The situation at Johansens The New Scorecard System Northwest Regional Manager Handout 8 is not totally complying with Theory X, it can be seen that brand-new hires are discovering this environment instead stressful which may at some point lead to a higher disposition of the monitoring in the direction of Theory X. Based on McGregor's advocated sight, which he called Concept Y, the vital job of the management is to prepare organizational problems to make sure that people can attain their own goals best by guiding their initiatives in the direction of organizational benefits. If people find no fulfillment in their work, the management would have little option however to rely on theory X and outside control (Deal, 2003). Even while evaluating Lewis's administration design, concept X may have appropriated in the operations division to some extent but the Advertising department would certainly need dependence on Theory Y in order to get the creative thinking and also originality from the groups.

Tuckman's Teamwork Concept: As much as Lewis's problem about bringing consistency between the advertising and marketing and also advertising and marketing division is concerned, this would at first lead to contrast as discussed by Bruce Tuckman in his 'Synergy Concept'. By combining the advertising as well as marketing division's job, there may be the very same first separate which can lead to the second stage of 'storming' where the teams test one an additional.

Bridges' Transition Version: According To William Bridge's concept (appendix 4), people are rather awkward with adjustment, which is obvious by the circumstance at Johansens The New Scorecard System Northwest Regional Manager Handout 8 The situation can be viewed as a regular course of life if is examined based on Bridge's theory where he explains that people experience 3 stages of transition when they experience modification. 'End, losing as well as Releasing', The Neutral Zone and 'The New Starting' (Bridges, 2004). When individuals exist with modification, they go into phase one and so there may be emotions like unhappiness, unpredictability, frustration, rage, concern, rejection and also disorientation.The situation at the advertising and marketing division of Johansens The New Scorecard System Northwest Regional Manager Handout 8 is comparable so Lewis can obtain comfortable with the concept that it is not amazing habits. In the 2nd stage, there may be a requirement to link the void between the new as well as old culture so Lewis might need to face this ordeal once Krasnow leaves. There might be low spirits as well as low productivity at this stage which should not be taken as an obstacle. It is during this phase that Lewis will certainly need to offer advice to the department to make sure that they can locate an orientation. It can be seen just how Krasnow has already made this transition less complicated by making Lewis obtain involved in the department a year prior to his real departure. Based on Bridges' Design, phase three will cause visibility to discovering, High energy and also dedication as people will certainly accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue pertaining to instability at the workplace has actually been caused to start with by the modification in monitoring and second of all by the truth that the merger will certainly no more be initiated. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has goes over the relevance of 'security requires as being a reduced degree need of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to feel safe and secure and out of danger' is at the 2nd degree of needs. Before a staff member can be made to develop psychologically, he requires to have his 'Physical 'as well as 'Safety and security' needs fulfilled. This suggests that unless the employees are made to really feel secure concerning their present employment status in Johansens The New Scorecard System Northwest Regional Manager Handout 8 they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Johansens The New Scorecard System Northwest Regional Manager Handout 8 Case Study

Effects of Analysis.

The OB analysis has actually checked out different concepts to recognize how to deal with the present scenario available. The following 3 choices have actually been proposed to aid Lewis handle the organizational obstacles in the marketing department. Each of these alternatives has actually been recommended for relieving the shift needed to bring the marketing department in accordance with the needs of the marketplace and also for making the social adjustment that would comply with once the present leader leaves.

Assimilation of advertising and marketing features. Separating Adverting and Production functions. Assimilation of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merger days has proficiency in business-to-business marketing along with agency and retail advertising and marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both advertising and also advertising functions.

The advantage of this method is that it will integrate both features while lowering the demand for employing an extra resource for advertising and marketing. In addition to this, Lewis would certainly be heading the advertising division and also in any case her substitute would certainly be needed for the present duty that she is performing. The drawback of this option is that exterior hiring might bring about resentment from interior personnel who may be eying the placement of EVP after Lewis takes over Krasnow's position.

Dividing Adverting as well as Manufacturing: Offered the competitive stress and also high top quality job called for from the advertising firm, it is advised that Lewis ought to allow the manufacturing system to be a different function from the marketing unit. Given that many advertising and marketing firms had these two features as different systems, it makes even more feeling to comply with the standard.

Integration of Advertising And Marketing with Workflows: Considering that Lewis is already taking care of the advertising and marketing and procedures divisions concurrently; it makes good sense to integrate the two features considering that she has been successfully caring for both ends. The reality that the two departments currently have significant differences over allowance of resources recommends that this combination may have the ability to produce harmony specifically as Lewis would be heading both ends.However there are numerous downsides of this relocation specifically as it would put excessive burden over Lewis's shoulders. The fact that Lewis needs to adjust her management design for the marketing division recommends that these 2 divisions would certainly be culturally varied. Lewis may not be able to apply one type of management design to both departments which might result in inadequacy in either one of the two functions.


An assessment of the three options indicates that assimilation of advertising and marketing and also operations would not be a viable relocation due to the large distinctions in between the two departments despite the truth that currently Lewis is managing both. While splitting up of the production feature might have been a beneficial relocation for the marketing department, the reality that it would indicate positioning a third function under Lewis's wing means this ought to be stayed clear of.

Activity Plan.
Lewis will take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Production function will remain component of advertising under advertising and marketing function.

Lewis will certainly separate herself from operations.

A democratic management style with employee empowerment will be made use of in advertising department.

Open door plan and also focus on cross department interaction will certainly be focused on getting rid of discord.

Backup plan.

If the combination does not work out as intended, a contingency strategy would certainly comply with which would certainly divide the production function from the advertising and marketing feature to decrease the load 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. In that case the manufacturing feature will definitely be divided by placing it under an SVP manufacturing.