Jupiter Management Co Case Study Analysis


Home >> Harvard >> Jupiter Management Co >>

Jupiter Management Co Case Study Analysis

Background and Facts

Jupiter Management Co a workplace products seller for small and medium sized organisations has actually lately been involved in preparing for a merger with its competitor House Deport, which has influenced efficiency degrees in departmentswith the senior manager involved in lawful problems put forth by the government Profession Payment. With the Marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the role in the near future. With challenges in the kind of a prospective cultural modification and reduced worker morale, the organization needs a complete reengineering effort at the marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising division of Jupiter Management Co is enhancing unpredictability in the working environment resulting in different obstacles 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 affecting critical choices considering that Stapes Inc. needed to abandon its plans of combining with Workplace Deport after the Federal Trade Commission's intervention in the process. Provided the truth that the shop has an international presence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations may be able to affect efficiency or critical objectives. Federal Trade Compensation's antitrust match against the merging took up valuable time of the organization's senior management recommending that 'political' factors can have severe ramifications for a global business.

Economic Factors: Economic factors such as the development of small businesses in the worldwide situation recommend that Jupiter Management Co is growing in a setting where there is prospective growth of organisations. Along with this, reality that shop customers are mainly searching for workplace products for office suggests that the market has a rising fad of entrepreneurs as well as online companies.

Social factors: Social fads in the economic situation show that customers are trying to find ease as well as attractive prices. Marketing research shows how the customer for Jupiter Management Co lacks awareness about locating remedies which can provide a combination of benefit as well as inexpensive.

Technical factors: Modern technology plays an essential function in Jupiter Management Co's service method particularly as the organization is piloting Modern technology centers which would certainly offer innovation sales as well as assistance in the type of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues and Manifestations.

Numerous underlying Organizational Actions issues can be seen in Jupiter Management Co's case as highlighted in this area.

Uneasiness concerning cultural adjustment: There is concern regarding a cultural adjustment that would take place as soon as Todd Krasnow leaves from his position as the Executive Vice President of Marketing with most of the employee already showing unhappiness over this possible move. This predicted adjustment has actually produced tension in the workplace which has been combined with the past stress and anxiety of preparing the firm for a prospective merger with Home Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is lack of personnel that can match the demanding environment of a busy company. Not just does this lead to problem in locating the right individuals, it places anxiety on new hires as can not stand up to the rate and stress that the organization expects them to birth.

Dual Coverage Lines: Novices locate this business society cumbersome and also tough to cope with particularly as dotted line relationships are meant to be weak as a whole and also unbiased setting as well as performance evaluation is still done by the strong line supervisor. This indicates that novices might shed clearness about their particular functions and also purposes specifically as populated line coverage does not keep them in direct communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had been speculated that the last would certainly take Krasnow's setting came as a strike to her spirits. Lewis might have been capable and also proper for the task but the fact that Kransnow's separation would make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.

Fear & Work Insecurity: Anxiety as well as insecurity can be recognized as two major concerns that Lewis would be taking care of particularly as the merging has actually currently be terminated and two senior execs of the advertising and marketing department would be leaving. The entire obligation of the department would certainly be dropping on Lewis's shoulders who would certainly not just supervise of brining regarding a cultural modification yet would also need to verify herself in her new function.

Incompatible Management Design of Leader: Lewis's management design as well as its conflict with the advertising and marketing division's role can additionally be seen as an OB challenge especially as she has actually been utilized to managing issues in the operations division where personnel are taught to concentrate on processes and also get them right. The marketing department on the various other hand can be seen as a group of people who are utilized to being nurtured by Krasnow who concentrated much more on output than processes.

Interdepartmental Differences: Interdepartmental disputes between three departments, marketing, merchandizing as well as procedures specifically over the appropriation of the advertising and marketing mix can be recognized as another OB issue. Although the advertising and marketing department does not share the exact same vision as the other two departments pertaining to the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and operations departments do not concur over the advertising mix appropriation among one another either.

Fragmentation in Marketing Department: Disintegration between the advertising and marketing departments can be recognized as another OB issue which might need additional interest. The reality that the advertising and marketing sections in the advertising division are separated is avoiding both divisions from gaining from each various other's experience and also experience. Integration of marketing with retailing and also operations would end up being harder if the advertising and marketing division itself is disintegrated which can be an additional possible OB concern.

Jupiter Management Co Analysis

Different theories have been made use of to discuss the conditions to obtain more clearness concerning the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that staffs are passive as well as careless, have little passion and also withstand modification. The difficult version of this concept emphasized threat, tight controls, threats and punishments. Gradually it generates low productivity, subtle sabotage and also rivalry (Offer, 2003). The scenario at Jupiter Management Co is not completely complying with Concept X, it can be seen that new hires are finding this setting instead difficult which may at some point lead to a higher disposition of the administration towards Concept X. According to McGregor's promoted view, which he called Theory Y, the necessary task of the monitoring is to arrange organizational conditions so that individuals can accomplish their very own goals best by routing their initiatives towards business incentives. If people locate no contentment in their work, the monitoring would certainly have little option yet to rely on theory X as well as external control (Offer, 2003). Also while examining Lewis's management design, theory X might have appropriated in the operations division to some extent however the Advertising and marketing division would need dependence on Concept Y so as to get the creative thinking as well as originality from the groups.

Tuckman's Teamwork Theory: As much as Lewis's worry concerning bringing consistency between the marketing and also advertising department is worried, this would originally lead to contrast as talked about by Bruce Tuckman in his 'Synergy Theory'. By combining the marketing and advertising department's work, there might be the exact same preliminary detach which can lead to the second phase of 'storming' where the groups challenge one another.

When individuals are provided with adjustment, they enter phase one and so there may be emotions like despair, uncertainty, irritation, temper, fear, rejection and also disorientation.The circumstance at the advertising division of Jupiter Management Co is comparable so Lewis can obtain comfy with the idea that it is not remarkable actions. It is throughout this stage that Lewis will have to offer guidance to the division so that they can find a feeling of direction. It can be seen just how Krasnow has currently made this shift easier by making Lewis obtain included in the division a year before his real departure.
Vrio Analysis
Maslow's Requirement pecking order: The OB problem pertaining to instability at the work environment has been set off firstly by the change in administration as well as secondly by the reality that the merger will no more be initiated. Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has goes over the relevance of 'protection requires as being a lower level requirement of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to feel protected as well as safe' is at the second level of needs. Before an employee can be made to create psychologically, he requires to have his 'Physiological 'and also 'Safety' requires satisfied. This shows that unless the personnel are made to really feel protected regarding their present work condition in Jupiter Management Co they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Jupiter Management Co Case Study

Implication of Analysis.

The OB analysis has checked out various theories to recognize just how to deal with the current situation handy. The following 3 options have been proposed to help Lewis manage the organizational challenges in the advertising division. Each of these choices has actually been suggested for reducing the shift needed to bring the advertising and marketing department according to the demands of the market and also for making the cultural adjustment that would certainly comply with when the current leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting as well as Manufacturing features. Integration of Advertising with Workflow.

Assessment of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merging days has competence in business-to-business advertising and marketing along with agency and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to manage both marketing and marketing features.

The benefit of this method is that it will integrate the two functions while lowering the requirement for employing an additional resource for advertising and marketing. Along with this, Lewis would certainly be heading the advertising department as well as all the same her replacement would be required for the current role that she is executing. The downside of this alternative is that outside hiring might produce bitterness from inner personnel that may be looking at the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Manufacturing: Given the affordable pressures as well as high top quality job required from the advertising and marketing company, it is recommended that Lewis must permit the manufacturing system to be a different feature from the advertising and marketing device. Considering that most marketing companies had these 2 features as different units, it makes even more sense to adhere to the standard.

Combination of Advertising with Operations: Because Lewis is already looking after the advertising as well as operations divisions at the same time; it makes good sense to integrate the two functions because she has been successfully dealing with both ends. The truth that both divisions currently have significant distinctions over allowance of resources recommends that this combination may have the ability to cause consistency particularly as Lewis would certainly be heading both ends.However there are numerous negative aspects of this action particularly as it would place excessive problem over Lewis's shoulders. The reality that Lewis has to adapt her management style for the advertising and marketing division recommends that these two departments would certainly be culturally diverse. Lewis might not be able to apply one kind of management style to both departments which can result in ineffectiveness in either one of the 2 features.


An examination of the 3 choices shows that combination of marketing and also operations would certainly not be a possible action due to the huge distinctions between both departments despite the fact that presently Lewis is dealing with both. While splitting up of the production function may have been a favorable step for the advertising and marketing department, the fact that it would certainly mean positioning a third function under Lewis's wing means this need to be prevented. The combination of the advertising division is the best option in regards to obtaining the optimum arise from the department. An action prepare for this choice is reviewed below.

Activity Strategy.
Lewis will certainly take over the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

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

Lewis will divide herself from operations.

A democratic management style with employee empowerment will certainly be made use of in marketing division.

Open door plan as well as focus on cross department interaction will certainly be targeted at removing disharmony.

Contingency strategy.

If the integration does not exercise as intended, a contingency strategy would adhere to which would certainly divide the manufacturing function from the advertising and marketing feature to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the marketing division without an SVP. Because case the manufacturing function will most definitely be separated by putting it under an SVP manufacturing.