Mary Kay Cosmetics Inc Sales Force Incentives B Case Study Help


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Mary Kay Cosmetics Inc Sales Force Incentives B Case Study Solution

Background and Facts

Mary Kay Cosmetics Inc Sales Force Incentives B a workplace supplies store for little and moderate sized businesses has actually just recently been involved in preparing for a merger with its competitor Home Deport, which has affected effectiveness degrees in departmentswith the senior supervisor associated with lawful difficulties presented by the federal Profession Compensation. With the Advertising Head advancing the news of his departure from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the near future. With challenges in the type of a potential social change and also low employee morale, the company wants a full reengineering initiative at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing department of Mary Kay Cosmetics Inc Sales Force Incentives B is boosting uncertainty in the working environment bring about various obstacles for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting critical decisions because Stapes Inc. had to desert its plans of combining with Office Deport after the Federal Profession Payment's intervention in the process. Provided the reality that the store has a worldwide presence with branches in UK, USA, Canada as well as Germany, political factors in each of these nations might be able to impact efficiency or critical goals. Federal Trade Commission's antitrust fit versus the merging took up useful time of the company's elderly monitoring recommending that 'political' factors can have significant implications for a global company.

Economic Factors: Financial factors such as the emergence of small businesses in the worldwide circumstance suggest that Mary Kay Cosmetics Inc Sales Force Incentives B is growing in an environment where there is prospective growth of organisations. Fact that store customers are mainly looking for workplace materials for home workplaces suggests that the market has a rising pattern of business owners and also home based organisations.

Social factors: Social fads in the economy reveal that consumers are looking for ease in addition to eye-catching prices. Market research shows how the consumer for Mary Kay Cosmetics Inc Sales Force Incentives B lacks awareness concerning locating services which can use a combination of convenience and inexpensive.

Technical factors: Technology plays a vital function in Mary Kay Cosmetics Inc Sales Force Incentives B's business technique particularly as the company is piloting Innovation centers which would supply innovation sales as well as assistance in the form of memory upgrades, outer installations. (Summary of INSECT in appendix 2).

OB Issues and Symptoms.

Several underlying Organizational Behavior concerns can be seen in Mary Kay Cosmetics Inc Sales Force Incentives B's case as highlighted in this section.

Worries regarding social modification: There is uneasiness about a social change that would certainly take place when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with most of the team member already revealing unhappiness over this potential move. This expected change has actually created tension in the office which has been combined with the past anxiety of preparing the company for a possible merger with Home Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is shortage of personnel that can match the difficult environment of a fast-paced organization. Not only does this lead to problem in discovering the ideal individuals, it puts stress and anxiety on brand-new hires as can not stand up to the rate and stress that the company anticipates them to birth.

Double Reporting Lines: Newbies find this organizational society cumbersome and also difficult to handle especially as dotted line connections are indicated to be weaker generally and also objective setting and also efficiency evaluation is still done by the strong line manager. This indicates that beginners might lose clearness regarding their corresponding functions and purposes specifically as populated line coverage does not keep them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles despite the fact that it had been guessed that the latter would certainly take Krasnow's setting came as a strike to her spirits. Lewis may have been qualified as well as ideal for the work however the fact that Kransnow's departure would make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Task Instability: Worry and also instability can be determined as two major concerns that Lewis would certainly be dealing with specifically as the merger has actually now be terminated as well as 2 elderly executives of the advertising and marketing division would be leaving. The entire obligation of the department would certainly be falling on Lewis's shoulders that would certainly not simply supervise of brining concerning a cultural modification yet would certainly additionally have to confirm herself in her brand-new duty.

Inappropriate Administration Design of Leader: Lewis's management style as well as its conflict with the advertising and marketing division's duty can additionally be viewed as an OB obstacle specifically as she has actually been utilized to taking care of issues in the procedures division where workers are instructed to concentrate on procedures as well as obtain them right. The advertising and marketing division on the other hand can be seen as a group of individuals who are utilized to being nurtured by Krasnow that focused much more on result than processes.

Interdepartmental Disagreements: Interdepartmental differences between three divisions, advertising, merchandizing and also operations respectively over the allocation of the advertising mix can be identified as another OB issue. The advertising division does not share the very same vision as the various other two divisions regarding the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and operations divisions do not agree over the marketing mix allotment among one another either.

Disintegration in Advertising And Marketing Department: Fragmentation between the advertising and marketing divisions can be recognized as another OB concern which can need additional interest. The fact that the marketing and advertising sections in the advertising and marketing department are detached is protecting against both departments from acquiring from each various other's experience and also knowledge. Combination of advertising and marketing with merchandising and also operations would end up being harder if the advertising and marketing division itself is broken down which can be another possible OB worry.

Mary Kay Cosmetics Inc Sales Force Incentives B Analysis

Numerous theories have been made use of to clarify the circumstances to get further quality concerning the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers believe that staffs are passive as well as lazy, have little aspiration and also stand up to change. The tough variation of this concept stressed browbeating, limited controls, threats as well as penalties. In time it generates reduced performance, subtle sabotage and competition (Bargain, 2003). The situation at Mary Kay Cosmetics Inc Sales Force Incentives B is not completely complying with Theory X, it can be seen that brand-new hires are discovering this setting rather demanding which may at some point lead to a greater inclination of the administration towards Concept X. According to McGregor's supported sight, which he called Concept Y, the vital job of the management is to prepare organizational problems to make sure that people can accomplish their own goals best by directing their initiatives in the direction of organizational rewards. If people find no complete satisfaction in their work, the management would certainly have little option but to rely upon concept X and also exterior control (Offer, 2003). Even while analyzing Lewis's management design, concept X may have been suitable in the procedures department somewhat but the Advertising and marketing division would need dependence on Theory Y in order to get the imagination as well as originality from the teams.

Tuckman's Teamwork Theory: As much as Lewis's worry about bringing consistency in between the marketing and marketing division is concerned, this would originally lead to conflict as discussed by Bruce Tuckman in his 'Team effort Concept'. By combining the marketing and also advertising and marketing division's job, there might be the exact same first separate which can lead to the 2nd phase of 'storming' where the teams challenge one an additional.

Bridges' Transition Version: According To William Bridge's concept (appendix 4), individuals are fairly uneasy with change, which is evident by the situation at Mary Kay Cosmetics Inc Sales Force Incentives B The scenario can be viewed as a typical course of life if is examined based on Bridge's concept where he discusses that individuals go through 3 stages of change when they experience modification. 'End, shedding and Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people exist with modification, they enter phase one and so there might be emotions like despair, uncertainty, disappointment, anger, fear, rejection as well as disorientation.The scenario at the marketing department of Mary Kay Cosmetics Inc Sales Force Incentives B is comparable so Lewis can obtain comfy with the suggestion that it is not phenomenal habits. In the 2nd phase, there might be a need to bridge the gap between the new as well as old society so Lewis may have to encounter this experience once Krasnow leaves. There may be low spirits as well as reduced efficiency at this phase which ought to not be taken as an obstacle. It is throughout this stage that Lewis will certainly have to give guidance to the division to make sure that they can discover an orientation. It can be seen just how Krasnow has actually currently made this change much easier by making Lewis get associated with the department a year prior to his real separation. Based on Bridges' Design, stage three will bring about openness to discovering, High energy and commitment as people will accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Demand hierarchy: The OB concern related to instability at the office has been triggered to start with by the modification in administration as well as secondly by the truth that the merger will certainly no longer be launched. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has reviews the importance of 'safety and security needs as being a reduced level demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel safe as well as unharmed' goes to the second level of requirements. Prior to an employee can be made to develop mentally, he needs to have his 'Physiological 'as well as 'Safety and security' requires satisfied. This indicates that unless the personnel are made to really feel protected regarding their existing employment standing in Mary Kay Cosmetics Inc Sales Force Incentives B they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Mary Kay Cosmetics Inc Sales Force Incentives B Case Study

Ramification of Analysis.

The OB analysis has actually looked at different concepts to comprehend how to handle the existing circumstance handy. The adhering to 3 alternatives have been proposed to aid Lewis manage the business challenges in the advertising and marketing department. Each of these choices has actually been recommended for easing the transition required to bring the advertising department in accordance with the requirements of the marketplace and for making the cultural modification that would comply with once the current leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting and Manufacturing functions. Assimilation of Advertising with Procedures.

Evaluation of Alternatives.

Assimilation of Advertising And Marketing & Marketing Functions: The in-house advertising agency of Mary Kay Cosmetics Inc Sales Force Incentives B is currently strength for the organization in terms of conserving up on overheads related to advertising as well as promo. Because no brand-new employment has been done after Bridget Cole's departure with the reporting line being straight assigned to Krasnow for the advertising and marketing feature, this is a desirable opportunity for integrating the marketing and advertising functions. Judith Shapiro who has earlier been spoken with by Lewis during the earlier merger days has proficiency in business-to-business marketing together with agency and also retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to deal with both marketing and advertising functions.

The advantage of this method is that it will certainly integrate both functions while lowering the need for working with an extra source for advertising. Lewis would be heading the marketing division and in any case her replacement would be required for the existing function that she is carrying out. The downside of this choice is that outside hiring might produce animosity from interior employees who may be considering the placement of EVP after Lewis takes over Krasnow's position.

Separating Adverting and also Production: Offered the competitive pressures and also high top quality job required from the advertising agency, it is suggested that Lewis should enable the production unit to be a separate feature from the marketing system. Because most marketing firms had these two functions as separate devices, it makes more feeling to adhere to the norm.

Assimilation of Marketing with Procedures: Because Lewis is currently dealing with the marketing and also procedures departments simultaneously; it makes sense to integrate both features given that she has actually been successfully dealing with both ends. The truth that both divisions already have significant differences over appropriation of resources recommends that this assimilation might have the ability to bring about harmony specifically as Lewis would be heading both ends.However there are different downsides of this step specifically as it would place too much burden over Lewis's shoulders. The reality that Lewis needs to adjust her monitoring design for the advertising and marketing department recommends that these two departments would be culturally diverse. Lewis might not be able to use one type of leadership style to both departments which can result in ineffectiveness in either one of the 2 functions.


An assessment of the three choices suggests that integration of marketing as well as procedures would not be a possible action because of the vast differences between both divisions although that currently Lewis is dealing with both. While separation of the production function might have been a favorable move for the advertising and marketing division, the fact that it would suggest putting a 3rd function under Lewis's wing implies this need to be avoided as well. The combination of the marketing division is the very best option in terms of getting the ideal results from the department. An activity plan for this alternative is reviewed listed below.

Activity Strategy.
Lewis will take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Production function will certainly stay component of advertising under advertising function.

Lewis will certainly separate herself from procedures.

A democratic leadership design with worker empowerment will be utilized in marketing department.

Open up door policy and emphasis on cross departmental interaction will certainly be focused on getting rid of discord.

Contingency plan.

If the assimilation does not work out as prepared, a backup strategy would follow which would separate the production feature from the advertising and marketing feature to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the marketing division without an SVP. Because case the manufacturing function will most definitely be divided by putting it under an SVP manufacturing.