Jumbo Group Initial Public Offering Case Study Solution


Home >> Harvard >> Jumbo Group Initial Public Offering >>

Jumbo Group Initial Public Offering Case Study Analysis

Background and Facts

Jumbo Group Initial Public Offering a workplace products merchant for small as well as moderate sized businesses has recently been involved in planning for a merging with its rival Home Deport, which has influenced efficiency levels in departmentswith the senior manager associated with lawful issues presented by the government Profession Compensation. With the Advertising Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the function in the near future. With challenges in the kind of a prospective social change and also reduced staff member morale, the company needs a complete reengineering effort at the advertising and marketing department.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural change at the advertising and marketing department of Jumbo Group Initial Public Offering is enhancing unpredictability in the workplace leading to numerous challenges for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting tactical decisions given that Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Profession Commission's intervention in the process. Offered the fact that the store has a global existence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these countries might have the ability to impact efficiency or calculated goals. Federal Trade Compensation's antitrust suit against the merging occupied important time of the company's elderly monitoring suggesting that 'political' factors can have severe ramifications for a worldwide organisation.

Economic Factors: Economic factors such as the introduction of small companies in the global circumstance suggest that Jumbo Group Initial Public Offering is growing in an environment where there is potential growth of services. In addition to this, truth that store customers are primarily looking for office materials for office suggests that the market has a rising fad of entrepreneurs and home based businesses.

Social factors: Social fads in the economy show that customers are seeking benefit in addition to attractive costs. Market research shows how the customer for Jumbo Group Initial Public Offering does not have recognition about finding solutions which can offer a combination of comfort as well as affordable.

Technical factors: Modern technology plays an important role in Jumbo Group Initial Public Offering's company approach especially as the company is piloting Modern technology facilities which would certainly provide technology sales as well as assistance in the form of memory upgrades, peripheral installations. (Recap of BUG in appendix 2).

OB Issues as well as Effects.

Several underlying Organizational Habits concerns can be seen in Jumbo Group Initial Public Offering's case as highlighted in this section.

Apprehensions concerning social modification: There is apprehension concerning a social adjustment that would certainly happen when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising with most of the team member already showing discontent over this possible step. This expected adjustment has produced tension in the office which has actually been combined with the past tension of preparing the company for a possible merger with House Deport.
Pest Analysis
Stressful Job Atmosphere for Newcomers: There is shortage of workers that can match the demanding environment of a fast-paced organization. Not only does this lead to problem in finding the best people, it puts anxiety on brand-new hires as can not endure the speed and stress that the organization expects them to birth.

Double Coverage Lines: Newbies find this business culture troublesome and also tough to cope with specifically as dotted line relationships are suggested to be weak generally and unbiased setup and also performance analysis is still done by the strong line supervisor. This implies that beginners could lose clearness about their particular roles as well as goals particularly as dotted line reporting does not keep them in direct interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had been guessed that the latter would certainly take Krasnow's position came as a blow to her spirits. Lewis may have been qualified as well as suitable for the task yet the truth that Kransnow's separation would make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Worry & Work Instability: Fear and also insecurity can be recognized as two major problems that Lewis would be handling specifically as the merging has now be terminated and also 2 senior execs of the marketing division would certainly be leaving. The entire obligation of the department would certainly be dropping on Lewis's shoulders who would certainly not just be in charge of brining regarding a cultural modification yet would certainly likewise have to verify herself in her brand-new duty.

Incompatible Administration Design of Leader: Lewis's monitoring style as well as its conflict with the advertising department's duty can also be seen as an OB challenge especially as she has been utilized to taking care of issues in the procedures department where workers are taught to concentrate on processes and also obtain them right. The advertising and marketing division on the various other hand can be viewed as a group of people who are made use of to being nurtured by Krasnow who concentrated more on result than procedures.

Interdepartmental Differences: Interdepartmental arguments in between 3 divisions, advertising, merchandizing and also procedures specifically over the allocation of the advertising and marketing mix can be determined as another OB issue. Although the advertising division does not share the exact same vision as the various other 2 divisions concerning the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing as well as operations divisions do not concur over the advertising and marketing mix appropriation amongst one another either.

Fragmentation in Advertising Department: Disintegration in between the marketing and advertising departments can be recognized as one more OB issue which might require more focus. The reality that the marketing and advertising sections in the advertising department are separated is stopping both departments from getting from each various other's experience and know-how. Combination of advertising with retailing as well as procedures would become harder if the advertising and marketing department itself is broken down which can be an additional prospective OB issue.

Jumbo Group Initial Public Offering Analysis

Different concepts have actually been made use of to clarify the situations to obtain additional clarity regarding the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that staffs are easy and also lazy, have little ambition and withstand change. The circumstance at Jumbo Group Initial Public Offering is not entirely adhering to Theory X, it can be seen that new hires are locating this setting instead stressful which might ultimately lead to a higher inclination of the management in the direction of Theory X. Also while evaluating Lewis's administration style, theory X may have been suitable in the operations division to some degree however the Advertising and marketing department would certainly need reliance on Theory Y in order to obtain the imagination as well as originality from the teams.

Tuckman's Synergy Concept: As for Lewis's issue about bringing consistency in between the marketing and advertising division is concerned, this would initially result in clash as discussed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). According to Tuckman's theory displayed in appendix 3, during the preliminary stage of team development, individuals might not bond, as they are hectic discovering their location in the group. By integrating the marketing and advertising division's job, there might be the same first detach which could result in the 2nd phase of 'storming' where the teams test each other. It is just during the third phase or 'norming' when they would come with each other to share ideas prior to the group can bring about harmony in the 4th phase 'performing'.

Bridges' Transition Version: As per William Bridge's theory (appendix 4), individuals are fairly uneasy with change, which is obvious by the circumstance at Jumbo Group Initial Public Offering The situation can be seen as a normal course of life if is studied according to Bridge's theory where he discusses that individuals go through three stages of shift when they experience change. 'Closing, shedding as well as Releasing', The Neutral Area and also 'The New Starting' (Bridges, 2004). When individuals are presented with adjustment, they enter phase one therefore there may be feelings like unhappiness, unpredictability, irritation, temper, worry, denial and also disorientation.The situation at the marketing department of Jumbo Group Initial Public Offering is similar so Lewis can obtain comfortable with the idea that it is not remarkable behavior. In the second stage, there might be a requirement to bridge the gap between the brand-new as well as old society so Lewis may have to face this experience once Krasnow leaves. There might be low morale and low performance at this stage which need to not be taken as a problem. It is during this phase that Lewis will have to give support to the division to ensure that they can find a sense of direction. It can be seen exactly how Krasnow has currently made this change less complicated by making Lewis get involved in the department a year prior to his real separation. According to Bridges' Version, phase three will bring about visibility to discovering, High energy and commitment as people will accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has goes over the relevance of 'security needs as being a reduced degree demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel protected as well as out of risk' is at the second level of needs. Prior to an employee can be made to establish mentally, he requires to have his 'Physiological 'and also 'Safety and security' requires satisfied.

SWOT Analysis for Jumbo Group Initial Public Offering Case Study

Implication of Analysis.

The OB analysis has actually taken a look at numerous theories to understand just how to deal with the current situation handy. The adhering to three options have actually been proposed to aid Lewis deal with the organizational difficulties in the advertising and marketing department. Each of these options has been suggested for easing the shift required to bring the advertising department in line with the needs of the market and also for making the cultural change that would certainly adhere to as soon as the current leader leaves.

Combination of advertising and marketing features. Dividing Adverting as well as Manufacturing functions. Integration of Marketing with Operations.

Assessment of Alternatives.

Assimilation of Advertising And Marketing & Advertising Functions: The in-house marketing company of Jumbo Group Initial Public Offering is already strength for the organization in regards to conserving up on expenses associated with advertising as well as promotion. Considering that no new recruitment has been done after Bridget Cole's separation with the coverage line being straight assigned to Krasnow for the marketing function, this is a beneficial chance for incorporating the marketing and advertising features. Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merger days has knowledge in business-to-business advertising and marketing together with company as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both marketing and advertising features.

The advantage of this strategy is that it will incorporate both features while reducing the demand for employing an extra source for marketing. In addition to this, Lewis would be heading the advertising division and regardless her replacement would be required for the existing function that she is doing. The downside of this alternative is that exterior hiring might bring about animosity from interior personnel who may be considering the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and also Production: Provided the competitive stress and high top quality job called for from the advertising agency, it is recommended that Lewis must enable the production device to be a different feature from the advertising and marketing unit. Given that a lot of advertising agencies had these 2 features as separate units, it makes even more sense to comply with the standard.

Integration of Advertising And Marketing with Procedures: Because Lewis is already taking treatment of the advertising and procedures departments all at once; it makes sense to incorporate the 2 features since she has been successfully taking treatment of both ends. The reality that Lewis has to adjust her administration design for the advertising division suggests that these two departments would be culturally varied.


An analysis of the 3 options indicates that assimilation of advertising and also operations would not be a practical move because of the substantial differences in between the two departments although that currently Lewis is taking care of both. While separation of the manufacturing function may have been a favorable action for the advertising division, the truth that it would certainly imply placing a 3rd function under Lewis's wing indicates this need to be avoided as well. The combination of the marketing division is the best choice in regards to obtaining the optimum results from the department. An action prepare for this choice is gone over below.

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

Advertising and Marketing features would be merged.

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

Production feature will continue to be part of advertising and marketing under marketing function.

Lewis will certainly separate herself from operations.

A democratic management style with employee empowerment will be used in advertising department.

Open door plan as well as focus on cross department interaction will certainly be aimed at eliminating discord.

Backup strategy.

If the integration does not work out as planned, a contingency strategy would follow which would certainly divide the production function from the advertising and marketing feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing division without an SVP. Because case the production function will absolutely be separated by positioning it under an SVP production.