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Lulucom Case Study Solution

Background and Facts

Lulucom an office products merchant for small as well as medium sized businesses has actually recently been involved in preparing for a merging with its rival Residence Deport, which has actually impacted effectiveness degrees in departmentswith the elderly manager associated with legal difficulties put forth by the federal Profession Compensation. With the Advertising and marketing Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the future. With obstacles in the form of a potential cultural adjustment and also low worker spirits, the company requires a full reengineering effort at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The potential social adjustment at the advertising department of Lulucom is increasing unpredictability in the working environment causing different difficulties for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing critical choices because Stapes Inc. needed to desert its strategies of combining with Office Deport after the Federal Trade Payment's treatment at the same time. Given 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 nations might be able to influence performance or calculated goals. Federal Profession Commission's antitrust suit versus the merging occupied beneficial time of the company's senior administration suggesting that 'political' factors can have severe implications for a global service.

Economic Factors: Economic factors such as the appearance of small businesses in the international circumstance suggest that Lulucom is prospering in an environment where there is prospective development of companies. In addition to this, truth that store consumers are mainly looking for office products for home offices recommends that the marketplace has a climbing fad of entrepreneurs as well as home organisations.

Social factors: Social trends in the economy show that consumers are seeking benefit along with eye-catching rates. Marketing research demonstrates how the consumer for Lulucom does not have understanding regarding locating options which can offer a combination of comfort and low costs.

Technical factors: Modern technology plays an important duty in Lulucom's company technique particularly as the organization is piloting Technology facilities which would provide innovation sales and also support in the form of memory upgrades, peripheral setups. (Recap of INSECT in appendix 2).

OB Issues as well as Effects.

Numerous underlying Business Behavior concerns can be seen in Lulucom's case as highlighted in this area.

Apprehensions about social modification: There is worry about a cultural modification that would certainly take place when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with a lot of the team member already showing unhappiness over this prospective step. This expected modification has developed anxiety in the workplace which has actually been coupled with the past stress and anxiety of preparing the company for a potential merger with House Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is lack of personnel that can match the stressful setting of a hectic organization. Not only does this bring about problem in locating the right people, it places stress and anxiety on new hires as can not hold up against the speed and stress that the company expects them to bear.

Double Coverage Lines: Newcomers find this business society difficult and also tough to handle particularly as populated line partnerships are implied to be weaker as a whole as well as objective setup and also performance analysis is still done by the strong line supervisor. This implies that newbies can lose clearness regarding their respective roles and goals specifically as dotted line coverage does not keep them in direct interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles even though it had actually been guessed that the latter would take Krasnow's position came as a strike to her morale. Lewis may have been qualified and ideal for the job yet the reality that Kransnow's separation would make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.

Concern & Job Instability: Worry and instability can be recognized as two significant problems that Lewis would certainly be handling specifically as the merger has currently be terminated and also two elderly execs of the advertising and marketing division would be leaving. The entire duty of the division would certainly be falling on Lewis's shoulders who would certainly not just be in charge of brining concerning a social adjustment however would certainly additionally need to confirm herself in her brand-new role.

Inappropriate Monitoring Style of Leader: Lewis's administration design and also its incompatibility with the advertising and marketing division's role can additionally be seen as an OB difficulty particularly as she has been made use of to taking care of concerns in the procedures department where workers are taught to concentrate on procedures and obtain them. The marketing department on the other hand can be seen as a team of people who are used to being supported by Krasnow who concentrated much more on outcome than processes.

Interdepartmental Arguments: Interdepartmental disagreements between 3 departments, marketing, merchandizing as well as procedures specifically over the appropriation of the advertising mix can be identified as another OB issue. The advertising and marketing department does not share the same vision as the various other two departments relating to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and also operations divisions do not agree over the marketing mix allowance amongst one another either.

Disintegration in Advertising And Marketing Division: Fragmentation in between the advertising and marketing divisions can be determined as an additional OB issue which could require additional interest. The reality that the advertising and marketing sections in the advertising and marketing division are disconnected is avoiding both divisions from acquiring from each other's experience and experience. Integration of advertising and marketing with retailing and also operations would certainly end up being more difficult if the advertising division itself is disintegrated which can be another prospective OB problem.

Lulucom Analysis

Numerous theories have actually been made use of to explain the conditions to obtain further quality concerning the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that staffs are passive as well as lazy, have little aspiration as well as stand up to modification. The hard variation of this theory emphasized threat, limited controls, hazards as well as penalties. With time it creates reduced productivity, subtle sabotage and competition (Deal, 2003). Although the situation at Lulucom is not totally complying with Theory X, it can be seen that new hires are locating this environment instead difficult which may ultimately cause a higher disposition of the administration in the direction of Concept X. According to McGregor's supported view, which he called Theory Y, the important task of the monitoring is to prepare organizational problems to make sure that people can achieve their very own goals best by routing their efforts towards business rewards. If people find no complete satisfaction in their job, the monitoring would certainly have little selection however to rely on theory X as well as external control (Deal, 2003). Also while assessing Lewis's monitoring design, concept X might have been suitable in the operations department to some extent but the Marketing department would require dependence on Theory Y in order to get the imagination and originality from the groups.

Tuckman's Teamwork Theory: As far as Lewis's problem regarding bringing harmony between the advertising and advertising and marketing division is worried, this would originally lead to clash as reviewed by Bruce Tuckman in his 'Team effort Concept'. By combining the marketing and also advertising department's job, there might be the same initial separate which might lead to the 2nd phase of 'storming' where the groups challenge one another.

When individuals are presented with modification, they go into phase one and so there may be feelings like unhappiness, unpredictability, stress, anger, worry, rejection and also disorientation.The circumstance at the advertising division of Lulucom is comparable so Lewis can get comfy with the concept that it is not extraordinary behavior. It is during this phase that Lewis will have to provide assistance to the division so that they can discover a feeling of instructions. It can be seen just how Krasnow has currently made this shift less complicated by making Lewis obtain involved in the department a year prior to his actual separation.
Vrio Analysis
Maslow's Need hierarchy: The OB concern pertaining to insecurity at the work environment has been triggered first of all by the adjustment in administration as well as second of all by the reality that the merger will no more be started. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has reviews the significance of 'safety needs as being a lower level demand of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the requirement to really feel protected and untouched' goes to the second level of requirements. Before an employee can be made to establish mentally, he needs to have his 'Physical 'as well as 'Safety' needs fulfilled. This shows that unless the workers are made to really feel safe and secure concerning their existing employment status in Lulucom they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Lulucom Case Study



Ramification of Analysis.

The OB analysis has actually taken a look at different concepts to recognize exactly how to deal with the existing situation handy. The following 3 alternatives have been recommended to assist Lewis deal with the business obstacles in the advertising department. Each of these choices has been suggested for alleviating the shift needed to bring the advertising and marketing department according to the demands of the marketplace and also for making the social change that would follow when the present leader leaves.

Integration of marketing and advertising features. Dividing Adverting and also Production features. Assimilation of Advertising And Marketing with Operations.

Analysis of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merger days has experience in business-to-business advertising along with firm and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both marketing as well as marketing features.

The benefit of this approach is that it will integrate the two functions while lowering the need for working with an extra resource for marketing. Lewis would certainly be heading the advertising and marketing division and also in any type of case her replacement would be required for the current role that she is doing. The disadvantage of this choice is that external hiring may produce animosity from inner personnel who may be looking at the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Production: Offered the affordable stress and high quality job required from the marketing firm, it is advised that Lewis needs to enable the manufacturing device to be a different feature from the marketing system. Because many marketing companies had these two functions as separate systems, it makes more feeling to follow the standard.

Integration of Advertising with Workflows: Given that Lewis is already taking care of the marketing and procedures departments concurrently; it makes sense to incorporate both functions because she has actually been successfully taking care of both ends. The reality that the two departments already have significant distinctions over appropriation of resources recommends that this combination might have the ability to produce harmony specifically as Lewis would certainly be heading both ends.However there are different drawbacks of this move especially as it would certainly place way too much problem over Lewis's shoulders. The truth that Lewis has to adapt her administration style for the marketing division recommends that these 2 departments would be culturally diverse. Lewis might not be able to apply one type of management design to both departments which might result in inadequacy in either one of the 2 functions.

Referral.



An examination of the three choices suggests that assimilation of advertising and also operations would not be a feasible step as a result of the vast differences in between both divisions despite the fact that presently Lewis is handling both. While separation of the manufacturing function might have been a desirable step for the marketing department, the truth that it would certainly indicate positioning a 3rd feature under Lewis's wing indicates this must be stayed clear of. The combination of the marketing division is the very best choice in regards to getting the optimum arise from the division. An activity prepare for this option is talked about listed below.

Action Plan.
Recommendation
Lewis will take over the role of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

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

Lewis will certainly divide herself from procedures.

A democratic leadership design with employee empowerment will certainly be made use of in advertising and marketing department.

Open up door plan and focus on cross departmental communication will certainly be focused on removing disharmony.

Backup plan.

If the assimilation does not exercise as planned, a contingency strategy would comply with which would certainly divide the manufacturing function from the advertising function to lower the load 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 function will most definitely be divided by putting it under an SVP production.