Menu

Lulucom Case Study Help

CASE HELP

Home >> Harvard >> Lulucom >>

Lulucom Case Study Help

Background and Facts

Lulucom an office materials store for small and medium sized businesses has just recently been involved in preparing for a merging with its competitor House Deport, which has actually impacted performance levels in departmentswith the senior manager involved in legal problems presented by the government Profession Payment. With the Marketing Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the existing head of procedures has been asked to take the function in the near future. With challenges in the kind of a potential cultural change as well as low worker spirits, the organization needs a complete reengineering effort at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective social change at the advertising and marketing division of Lulucom is increasing unpredictability in the workplace causing various difficulties for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing critical choices since Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Trade Payment's intervention in the process. Offered the truth that the shop has an international existence with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these nations might have the ability to impact performance or calculated objectives. Federal Trade Compensation's antitrust suit versus the merger took up important time of the organization's elderly management suggesting that 'political' factors can have serious effects for a global business.

Economic Factors: Economic factors such as the emergence of small businesses in the international situation suggest that Lulucom is flourishing in an atmosphere where there is prospective development of services. Reality that store consumers are primarily looking for workplace products for residence workplaces recommends that the market has an increasing fad of entrepreneurs and home based services.

Social factors: Social fads in the economic situation reveal that consumers are trying to find ease in addition to eye-catching prices. Market research demonstrates how the customer for Lulucom lacks awareness about finding remedies which can offer a combination of comfort as well as inexpensive.

Technical factors: Modern technology plays an essential role in Lulucom's organisation strategy particularly as the organization is piloting Modern technology facilities which would certainly offer modern technology sales and assistance in the form of memory upgrades, peripheral setups. (Recap of PARASITE in appendix 2).

OB Issues and also Manifestations.

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

Worries concerning cultural adjustment: There is apprehension concerning a social modification that would certainly happen once Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with most of the team member currently revealing discontent over this possible action. This anticipated change has actually created stress and anxiety in the office which has been paired with the previous anxiety of preparing the firm for a possible merging with Home Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is lack of personnel that can match the difficult setting of a busy organization. Not just does this lead to difficulty in finding the best people, it puts anxiety on brand-new hires as can not stand up to the speed as well as pressure that the company anticipates them to birth.

Double Coverage Lines: Beginners find this organizational society troublesome and also hard to cope with especially as dotted line connections are suggested to be weak generally as well as objective setting as well as efficiency analysis is still done by the solid line manager. This means that newcomers might shed clarity concerning their respective duties and also objectives particularly as dotted line coverage does not maintain them in straight interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had been hypothesized that the latter would take Krasnow's setting came as an impact to her morale. Lewis may have been capable as well as proper for the work yet the truth that Kransnow's separation would certainly make Coles a straight report to Lewis may have been the reason for Coles' resignation from solutions.

Anxiety & Job Instability: Concern and instability can be determined as two significant worries that Lewis would certainly be dealing with particularly as the merger has actually currently be cancelled as well as two senior execs of the advertising and marketing division would certainly be leaving. The whole duty of the division would certainly be dropping on Lewis's shoulders that would certainly not simply supervise of brining concerning a social change however would certainly additionally have to show herself in her brand-new duty.

Incompatible Management Design of Leader: Lewis's administration design and its conflict with the advertising and marketing department's role can also be seen as an OB difficulty especially as she has actually been utilized to handling issues in the procedures division where employees are shown to concentrate on procedures and also obtain them right. The advertising division on the various other hand can be seen as a group of people who are made use of to being nurtured by Krasnow who focused much more on result than processes.

Interdepartmental Differences: Interdepartmental disagreements in between 3 departments, advertising, merchandizing and also operations respectively over the appropriation of the advertising and marketing mix can be recognized as an additional OB problem. Although the marketing department does not share the very same vision as the various other two divisions concerning the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing as well as operations departments do not agree over the marketing mix appropriation among each other either.

Fragmentation in Advertising And Marketing Department: Disintegration between the advertising and marketing divisions can be recognized as another OB issue which might require additional interest. The reality that the marketing and advertising sections in the advertising division are disconnected is stopping both departments from gaining from each other's experience as well as knowledge. Integration of advertising and marketing with merchandising and also procedures would certainly end up being more difficult if the advertising division itself is broken down which can be one more prospective OB concern.

Lulucom Analysis

Various theories have actually been made use of to explain the circumstances to obtain additional quality concerning the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers think that staffs are easy as well as careless, have little aspiration and also resist change. The tough variation of this theory highlighted coercion, tight controls, dangers and punishments. In time it generates low efficiency, refined sabotage and competition (Bargain, 2003). Although the scenario at Lulucom is not completely following Theory X, it can be seen that brand-new hires are finding this setting instead difficult which might eventually bring about a higher disposition of the management in the direction of Theory X. As per McGregor's advocated sight, which he called Concept Y, the important task of the monitoring is to set up organizational conditions to ensure that people can accomplish their own objectives best by directing their efforts towards business benefits. If people discover no contentment in their work, the administration would certainly have little selection however to depend on concept X and outside control (Offer, 2003). Also while assessing Lewis's management design, concept X might have appropriated in the operations division to some extent however the Advertising department would require reliance on Theory Y so as to get the creativity and creativity from the teams.

Tuckman's Teamwork Theory: As for Lewis's issue about bringing consistency in between the marketing and advertising department is concerned, this would at first cause conflict as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, throughout the preliminary stage of group growth, people might not bond, as they are busy locating their area in the team. By integrating the advertising and marketing division's job, there might coincide initial separate which can lead to the 2nd stage of 'storming' where the groups test each other. However, it is only throughout the third stage or 'norming' when they would collaborate to share concepts before the group can cause harmony in the 4th stage 'executing'.

Bridges' Transition Version: Based On William Bridge's concept (appendix 4), individuals are quite unpleasant with modification, which is apparent by the scenario at Lulucom The circumstance can be seen as a normal course of life if is examined according to Bridge's concept where he clarifies that individuals go through 3 stages of shift when they experience adjustment. 'End, losing as well as Releasing', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When individuals exist with change, they get in phase one and so there might be emotions like unhappiness, unpredictability, stress, anger, concern, denial as well as disorientation.The scenario at the advertising and marketing division of Lulucom is similar so Lewis can get comfortable with the concept that it is not extraordinary behavior. In the 2nd phase, there might be a need to connect the gap between the new and also old society so Lewis may need to face this experience once Krasnow leaves. There may be low morale and also reduced productivity at this phase which ought to not be taken as a problem. It is throughout this stage that Lewis will need to give support to the department so that they can locate an orientation. It can be seen just how Krasnow has actually already made this change easier by making Lewis get involved in the department a year prior to his real separation. Based on Bridges' Design, stage 3 will certainly produce visibility to knowing, High energy and also commitment as individuals will certainly accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Demand power structure: The OB problem related to instability at the office has been activated to start with by the change in management and secondly by the reality that the merging will no more be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has reviews the value of 'safety needs as being a reduced degree demand of a human for triggering inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the requirement to really feel secure and also out of danger' is at the second level of needs. Before an employee can be made to establish mentally, he requires to have his 'Physical 'and 'Safety and security' requires satisfied. This shows that unless the personnel are made to really feel protected concerning their present employment condition in Lulucom they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Lulucom Case Study



Implication of Analysis.

The OB analysis has actually looked at various concepts to understand just how to cope with the existing scenario handy. The adhering to 3 alternatives have been proposed to help Lewis handle the organizational obstacles in the advertising and marketing department. Each of these alternatives has been suggested for alleviating the change needed to bring the advertising department in accordance with the needs of the marketplace as well as for making the cultural change that would certainly comply with when the present leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and Manufacturing features. Combination of Advertising with Operations.

Analysis of Alternatives.

Assimilation of Marketing & Marketing Functions: The internal advertising and marketing firm of Lulucom is currently strength for the company in regards to conserving up on expenses associated with marketing as well as promo. Considering that no brand-new employment has actually been done after Bridget Cole's separation with the reporting line being straight appointed to Krasnow for the advertising and marketing function, this is a desirable possibility for integrating the advertising and marketing features. Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merger days has experience in business-to-business advertising along with company and retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both advertising and marketing features.

The benefit of this method is that it will integrate the two features while reducing the demand for working with an additional resource for marketing. In addition to this, Lewis would be heading the marketing division as well as in any case her replacement would be required for the present duty that she is performing. The negative aspect of this option is that outside hiring may produce resentment from internal employees who might be eying the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Production: Offered the competitive pressures and high quality work required from the marketing firm, it is recommended that Lewis ought to allow the manufacturing system to be a different function from the marketing unit. Since most advertising agencies had these 2 features as different systems, it makes more feeling to follow the standard.

Integration of Advertising And Marketing with Workflows: Given that Lewis is already taking treatment of the advertising and marketing and procedures departments all at once; it makes sense to incorporate the 2 features considering that she has been efficiently taking treatment of both ends. The truth that Lewis has to adjust her monitoring design for the marketing division recommends that these two divisions would be culturally varied.

Referral.



An assessment of the three options suggests that integration of marketing and also procedures would not be a practical step due to the large differences in between the 2 divisions regardless of the reality that presently Lewis is managing both. While separation of the production feature may have been a desirable move for the marketing department, the truth that it would certainly mean putting a third feature under Lewis's wing means this must be stayed clear of.

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

Marketing and advertising functions would certainly be combined.

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

Manufacturing feature will remain part of marketing under advertising feature.

Lewis will separate herself from procedures.

A democratic management style with employee empowerment will certainly be utilized in advertising and marketing division.

Open up door policy and also emphasis on cross department communication will be targeted at getting rid of discord.

Contingency plan.

If the combination does not work out as planned, a contingency plan would certainly adhere to which would certainly separate the manufacturing feature from the advertising feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising and marketing division without an SVP. In that case the production feature will definitely be divided by placing it under an SVP manufacturing.