Mondavi Winery Case Study Help


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Mondavi Winery Case Study Solution

Background and Facts

Mondavi Winery a workplace products merchant for small as well as average sized businesses has lately been involved in preparing for a merger with its competitor House Deport, which has actually impacted effectiveness degrees in departmentswith the senior supervisor associated with lawful complications presented by the federal Trade Commission. With the Advertising Head advancing the information of his separation from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the role in the future. With obstacles in the kind of a prospective social modification and also low employee spirits, the organization is in need of a total reengineering effort at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising division of Mondavi Winery is boosting unpredictability in the working environment bring about different obstacles 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 impacting strategic decisions since Stapes Inc. had to abandon its strategies of combining with Office Deport after the Federal Profession Commission's intervention while doing so. Offered the truth that the store has a worldwide presence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries might be able to affect performance or critical objectives. Federal Profession Compensation's antitrust suit versus the merger used up useful time of the organization's elderly monitoring suggesting that 'political' factors can have severe effects for an international service.

Economic Factors: Economic factors such as the introduction of small businesses in the international scenario suggest that Mondavi Winery is thriving in an atmosphere where there is possible growth of organisations. Along with this, reality that shop customers are primarily looking for workplace products for office suggests that the marketplace has a climbing trend of entrepreneurs and online organisations.

Social factors: Social trends in the economic climate show that customers are searching for benefit in addition to eye-catching prices. Market research demonstrates how the consumer for Mondavi Winery lacks recognition about discovering remedies which can supply a mix of comfort as well as affordable.

Technical factors: Technology plays a crucial role in Mondavi Winery's organisation method specifically as the organization is piloting Modern technology centers which would certainly offer technology sales as well as support in the form of memory upgrades, peripheral installations. (Summary of BUG in appendix 2).

OB Issues as well as Symptoms.

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

Concerns about cultural change: There is concern concerning a cultural modification that would take place once Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising And Marketing with the majority of the personnel already showing unhappiness over this possible action. This predicted adjustment has developed anxiety in the office which has actually been paired with the previous stress and anxiety of preparing the company for a possible merging with Residence Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is scarcity of employees that can match the demanding setting of a hectic organization. Not just does this cause problem in discovering the right people, it places anxiety on new hires as can not stand up to the pace as well as pressure that the company anticipates them to birth.

Dual Coverage Lines: Novices discover this organizational society difficult as well as tough to manage particularly as populated line partnerships are implied to be weaker in general and also objective setup as well as performance examination is still done by the solid line supervisor. This suggests that newbies might shed clearness concerning their corresponding functions and purposes particularly as dotted line coverage does not keep them in straight interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had been guessed that the last would take Krasnow's position came as a blow to her morale. Lewis may have been capable and also appropriate for the task but the fact that Kransnow's separation would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Job Instability: Worry as well as insecurity can be determined as 2 significant issues that Lewis would certainly be dealing with particularly as the merging has actually now be terminated and 2 senior executives of the marketing division would certainly be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders who would not just be in charge of brining about a social modification yet would also need to confirm herself in her new duty.

Incompatible Management Style of Leader: Lewis's monitoring style and its incompatibility with the advertising department's function can additionally be viewed as an OB obstacle specifically as she has actually been used to dealing with problems in the procedures division where workers are shown to focus on processes as well as obtain them right. The advertising department on the various other hand can be seen as a group of people who are made use of to being nurtured by Krasnow that focused more on result than processes.

Interdepartmental Differences: Interdepartmental arguments in between three departments, marketing, merchandizing and also procedures respectively over the allocation of the advertising mix can be identified as an additional OB issue. The marketing division does not share the exact same vision as the other 2 departments concerning the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and also operations divisions do not agree over the advertising and marketing mix allowance among one another either.

Disintegration in Advertising Division: Fragmentation between the advertising and marketing departments can be identified as one more OB concern which could require additional attention. The truth that the advertising and marketing sections in the advertising division are disconnected is avoiding both departments from obtaining from each other's experience as well as competence. Assimilation of marketing with merchandising and procedures would end up being more difficult if the advertising and marketing division itself is degenerated which can be one more potential OB problem.

Mondavi Winery Analysis

Numerous theories have actually been made use of to explain the conditions to obtain additional clearness regarding the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that subordinates are easy and lazy, have little ambition as well as withstand change. The circumstance at Mondavi Winery is not entirely complying with Theory X, it can be seen that brand-new hires are discovering this atmosphere rather stressful which might ultimately lead to a greater disposition of the administration in the direction of Concept X. Also while analyzing Lewis's management style, concept X may have been appropriate in the operations department to some degree yet the Advertising division would certainly require dependence on Concept Y in order to obtain the creativity as well as originality from the groups.

Tuckman's Teamwork Concept: As much as Lewis's worry concerning bringing harmony in between the marketing and also advertising division is worried, this would originally lead to contrast as talked about by Bruce Tuckman in his 'Teamwork Theory'. By combining the marketing as well as advertising division's work, there may be the very same initial separate which can lead to the 2nd stage of 'storming' where the teams test one an additional.

When individuals are presented with change, they get in phase one as well as so there may be emotions like sadness, unpredictability, irritation, rage, concern, denial as well as disorientation.The situation at the advertising and marketing department of Mondavi Winery is similar so Lewis can obtain comfortable with the concept that it is not remarkable habits. It is during this stage that Lewis will have to give support to the department so that they can locate a sense of instructions. It can be seen how Krasnow has currently made this transition much easier by making Lewis get entailed in the division a year prior to his actual separation.
Vrio Analysis
Maslow's Demand hierarchy: The OB issue related to instability at the workplace has actually been caused firstly by the adjustment in administration as well as second of all by the fact that the merging will certainly no more be launched. Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has discusses the significance of 'security needs as being a lower level requirement of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the need to feel protected and untouched' goes to the second level of demands. Before a worker can be made to develop mentally, he needs to have his 'Physical 'and 'Security' requires fulfilled. This shows that unless the personnel are made to really feel safe and secure about their current employment status in Mondavi Winery they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Mondavi Winery Case Study

Implication of Analysis.

The OB analysis has considered numerous theories to recognize how to handle the present scenario available. The adhering to 3 choices have actually been suggested to aid Lewis handle the business obstacles in the marketing division. Each of these options has been recommended for easing the shift required to bring the advertising division according to the demands of the marketplace and for making the cultural modification that would comply with when the existing leader leaves.

Combination of advertising and marketing functions. Separating Adverting and Manufacturing functions. Assimilation of Marketing with Workflow.

Analysis of Alternatives.

Combination of Marketing & Marketing Functions: The internal advertising firm of Mondavi Winery is currently stamina for the organization in regards to saving up on overheads related to marketing and also promo. Since no brand-new employment has actually been done after Bridget Cole's departure with the coverage line being directly appointed to Krasnow for the advertising feature, this is a positive possibility for integrating the advertising and marketing features. Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merging days has expertise in business-to-business advertising and marketing in addition to company and retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to handle both marketing and advertising functions.

The advantage of this technique is that it will certainly integrate the two features while minimizing the requirement for working with an additional resource for marketing. In addition to this, Lewis would certainly be heading the advertising and marketing department and also all the same her replacement would certainly be needed for the existing duty that she is executing. The downside of this alternative is that external hiring might bring about resentment from interior employees that may be eying the placement of EVP after Lewis takes over Krasnow's position.

Separating Adverting as well as Production: Provided the competitive stress as well as high quality work needed from the advertising agency, it is suggested that Lewis ought to permit the manufacturing unit to be a different feature from the advertising unit. Given that the majority of advertising agencies had these two features as different devices, it makes more feeling to comply with the standard. In addition to this, both features might be able to concentrate on their core activates a lot more successfully. Nonetheless, the downside of this strategy would certainly be that extra expenses would have to be borne for setting up different production features. Along with this, a production head might have to be hired which could boost expenses for the company.

Combination of Marketing with Procedures: Because Lewis is currently dealing with the marketing and procedures departments concurrently; it makes good sense to integrate both functions given that she has been effectively taking care of both ends. The fact that the two departments already have significant distinctions over allotment of resources recommends that this integration might have the ability to bring about harmony especially as Lewis would certainly be heading both ends.However there are various drawbacks of this action specifically as it would certainly put way too much concern over Lewis's shoulders. The truth that Lewis needs to adjust her monitoring style for the advertising and marketing department recommends that these two divisions would certainly be culturally varied. Along with this, Lewis may not be able to use one kind of leadership style to both divisions which might result in inadequacy in either among both functions.


An analysis of the three choices indicates that integration of marketing and also operations would certainly not be a practical action as a result of the vast distinctions between both divisions despite the fact that presently Lewis is managing both. While splitting up of the production feature might have been a favorable relocation for the advertising and marketing division, the truth that it would certainly imply placing a third function under Lewis's wing suggests this should be stayed clear of. The combination of the marketing department is the best choice in regards to obtaining the optimum arise from the department. An action plan for this option is gone over below.

Activity Plan.
Lewis will certainly take control of the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Manufacturing function will certainly continue to be component of marketing under advertising function.

Lewis will divide herself from procedures.

An autonomous leadership style with worker empowerment will be used in advertising and marketing department.

Open up door policy and also focus on cross departmental interaction will certainly be aimed at getting rid of discord.

Contingency plan.

If the integration does not work out as planned, a backup strategy would follow which would divide the production feature from the advertising feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the production feature will certainly be divided by placing it under an SVP production.