Lulucom Case Study Analysis


Home >> Harvard >> Lulucom >>

Lulucom Case Study Solution

Background and Facts

Lulucom a workplace materials retailer for small and moderate sized companies has just recently been associated with preparing for a merging with its competitor House Deport, which has affected effectiveness degrees in departmentswith the senior manager involved in legal issues presented by the federal Trade Compensation. With the Advertising Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the future. With difficulties in the form of a prospective cultural modification as well as reduced employee spirits, the company requires a full reengineering initiative at the marketing department.

Issue Declaration

The prospective social modification at the marketing department of Lulucom is enhancing unpredictability in the workplace resulting in numerous difficulties for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting calculated decisions since Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Profession Compensation's treatment in the process. Offered the reality that the store has a worldwide presence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries may be able to influence performance or tactical objectives. Federal Profession Compensation's antitrust suit against the merger used up useful time of the company's senior management recommending that 'political' factors can have major ramifications for an international company.

Economic Factors: Financial factors such as the emergence of local business in the worldwide situation suggest that Lulucom is prospering in an atmosphere where there is prospective growth of services. Truth that shop customers are primarily looking for office supplies for residence offices suggests that the market has a climbing trend of entrepreneurs and also house based businesses.

Social factors: Social trends in the economic situation reveal that consumers are trying to find benefit in addition to eye-catching rates. Marketing research shows how the client for Lulucom does not have understanding concerning finding solutions which can provide a combination of comfort as well as affordable.

Technological factors: Innovation plays a crucial role in Lulucom's company technique specifically as the organization is piloting Modern technology facilities which would certainly offer modern technology sales and also support in the type of memory upgrades, outer installments. (Recap of BUG in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Business Habits problems can be seen in Lulucom's case as highlighted in this section.

Concerns regarding cultural change: There is uneasiness concerning a cultural modification that would certainly take place once Todd Krasnow leaves from his position as the Executive Vice President of Marketing with the majority of the staff members currently showing unhappiness over this possible action. This predicted adjustment has actually produced tension in the workplace which has been combined with the previous tension of preparing the company for a possible merger with Home Deport.

Difficult Work Atmosphere for Newcomers: There is lack of workers that can match the difficult environment of a hectic company. Not only does this cause difficulty in locating the best individuals, it places tension on new hires as can not hold up against the rate and pressure that the organization expects them to birth.

Dual Coverage Lines: Beginners find this business culture difficult as well as hard to handle particularly as dotted line relationships are indicated to be weak generally and also unbiased setting and also efficiency evaluation is still done by the solid line manager. This implies that newcomers might shed clarity regarding their particular duties and also objectives particularly as populated line coverage does not keep them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles despite the fact that it had been speculated that the last would certainly take Krasnow's position came as a strike to her spirits. Lewis might have been capable and proper for the work however the reality that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Job Instability: Worry as well as instability can be determined as 2 major worries that Lewis would certainly be handling particularly as the merging has now be terminated and also 2 elderly executives of the marketing department would certainly be leaving. The whole obligation of the division would certainly be dropping on Lewis's shoulders that would not simply supervise of brining about a cultural change but would certainly also have to confirm herself in her new duty.

Incompatible Management Design of Leader: Lewis's administration design as well as its conflict with the marketing division's function can also be viewed as an OB challenge particularly as she has actually been used to handling problems in the procedures division where personnel are taught to concentrate on procedures as well as get them right. The advertising division on the other hand can be viewed as a group of individuals who are utilized to being supported by Krasnow that concentrated much more on result than processes.

Interdepartmental Disagreements: Interdepartmental disagreements in between 3 divisions, marketing, merchandizing and operations specifically over the allotment of the advertising mix can be recognized as an additional OB issue. The advertising and marketing department does not share the same vision as the various other two departments concerning the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing as well as operations departments do not agree over the advertising and marketing mix allocation among one an additional either.

Fragmentation in Marketing Division: Disintegration in between the marketing and advertising departments can be identified as one more OB problem which can need more interest. The truth that the advertising and marketing areas in the advertising and marketing division are detached is avoiding both departments from obtaining from each various other's experience as well as know-how. Assimilation of advertising with retailing as well as procedures would become harder if the marketing division itself is broken down which can be an additional possible OB issue.

Lulucom Analysis

Different concepts have been utilized to discuss the situations to obtain further clearness concerning the situation at hand.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors believe that juniors are easy as well as careless, have little ambition as well as resist change. The scenario at Lulucom is not totally following Concept X, it can be seen that new hires are locating this setting instead demanding which might eventually lead to a greater inclination of the management towards Theory X. Also while evaluating Lewis's management design, theory X may have been suitable in the operations division to some level yet the Advertising and marketing division would certainly need reliance on Theory Y in order to get the creative thinking and originality from the teams.

Tuckman's Team effort Concept: As far as Lewis's concern regarding bringing consistency in between the marketing and advertising division is concerned, this would initially cause contrast as reviewed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, throughout the preliminary stage of group growth, people may not bond, as they are hectic locating their place in the team. By incorporating the advertising and marketing division's work, there might coincide preliminary detach which might lead to the 2nd phase of 'storming' where the teams test each other. It is just throughout the third phase or 'norming' when they would come with each other to share suggestions before the team can bring about harmony in the fourth stage 'carrying out'.

Bridges' Transition Design: According To William Bridge's theory (appendix 4), individuals are rather unpleasant with change, which is obvious by the situation at Lulucom The scenario can be viewed as a typical program of life if is studied based on Bridge's concept where he discusses that people undergo 3 phases of change when they experience change. 'Closing, losing and Releasing', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When people are presented with change, they go into phase one and so there might be emotions like despair, unpredictability, irritation, rage, worry, denial as well as disorientation.The situation at the advertising and marketing department of Lulucom is comparable so Lewis can get comfy with the suggestion that it is not remarkable behavior. In the second stage, there might be a requirement to bridge the space between the new as well as old society so Lewis might need to face this challenge as soon as Krasnow leaves. There may be reduced morale as well as low efficiency at this stage which must not be taken as a trouble. It is throughout this phase that Lewis will have to give support to the department to make sure that they can find an orientation. It can be seen how Krasnow has actually currently made this shift less complicated by making Lewis get associated with the division a year prior to his actual separation. Based on Bridges' Version, stage three will certainly cause visibility to discovering, High energy and also dedication as people will certainly accept the adjustment (Bridges, 2004).

Maslow's Need hierarchy: The OB issue related to instability at the work environment has actually been triggered to start with by the modification in management and second of all by the truth that the merger will certainly no longer be launched. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has talks about the value of 'security needs as being a reduced level need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel protected and also out of danger' goes to the second degree of demands. Prior to a worker can be made to create emotionally, he needs to have his 'Physiological 'as well as 'Security' requires satisfied. This suggests that unless the personnel are made to really feel protected concerning their current work status in Lulucom they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Lulucom Case Study

Implication of Analysis.

The OB analysis has actually considered numerous theories to understand just how to handle the existing situation at hand. The complying with 3 options have actually been proposed to aid Lewis take care of the business obstacles in the advertising department. Each of these alternatives has actually been recommended for easing the change required to bring the advertising division in line with the requirements of the marketplace and for making the cultural adjustment that would certainly comply with as soon as the existing leader leaves.

Integration of advertising and marketing features. Separating Adverting and also Production features. Integration of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis during the earlier merger days has experience in business-to-business advertising along with company and also retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to deal with both advertising and advertising and marketing features.

The advantage of this method is that it will certainly integrate both functions while minimizing the demand for hiring an added source for marketing. Along with this, Lewis would be heading the marketing division and also all the same her replacement would certainly be needed for the current duty that she is carrying out. The disadvantage of this option is that outside hiring might produce resentment from internal employees who may be considering the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Manufacturing: Offered the affordable stress as well as high quality work needed from the advertising and marketing company, it is suggested that Lewis needs to enable the production device to be a different feature from the marketing system. Since most advertising and marketing firms had these 2 functions as separate units, it makes even more sense to comply with the standard.

Combination of Advertising And Marketing with Operations: Because Lewis is currently dealing with the advertising and marketing and procedures divisions at the same time; it makes good sense to incorporate both functions given that she has been efficiently caring for both ends. The reality that the two divisions currently have major differences over appropriation of resources recommends that this assimilation might be able to bring about consistency specifically as Lewis would be heading both ends.However there are different disadvantages of this action especially as it would certainly put excessive concern over Lewis's shoulders. The truth that Lewis has to adjust her administration style for the advertising and marketing department recommends that these two divisions would be culturally diverse. In addition to this, Lewis may not have the ability to use one type of management design to both divisions which could lead to inadequacy in either one of the two functions.


An analysis of the 3 choices shows that assimilation of advertising as well as operations would certainly not be a practical action due to the huge differences between the 2 divisions despite the fact that currently Lewis is handling both. While splitting up of the manufacturing function may have been a positive move for the marketing department, the reality that it would suggest placing a third function under Lewis's wing implies this should be stayed clear of.

Activity Strategy.

Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Production feature will remain component of advertising under marketing feature.

Lewis will divide herself from procedures.

A democratic management style with staff member empowerment will certainly be made use of in advertising and marketing department.

Open door plan and also emphasis on cross department interaction will certainly be aimed at getting rid of disharmony.

Contingency strategy.

If the combination does not exercise as intended, a backup strategy would certainly follow which would certainly divide the production feature from the advertising and marketing function to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising division without an SVP. Because case the manufacturing feature will definitely be divided by positioning it under an SVP production.