Mondavi Winery Case Study Help


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Mondavi Winery Case Study Solution

Background and Facts

Mondavi Winery a workplace products merchant for tiny and also medium sized organisations has actually recently been involved in planning for a merger with its competitor Home Deport, which has actually affected effectiveness degrees in departmentswith the elderly manager involved in lawful issues presented by the federal Profession Compensation. With the Advertising and marketing 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 duty in the future. With difficulties in the type of a possible cultural change as well as reduced worker morale, the organization needs a total reengineering initiative at the marketing department.

Trouble Statement

The potential cultural modification at the advertising division of Mondavi Winery is enhancing unpredictability in the workplace causing various challenges for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting critical choices considering that Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Trade Compensation's intervention while doing so. Offered the fact that the store has an international presence with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries might be able to influence efficiency or strategic goals. Federal Profession Compensation's antitrust match against the merger occupied beneficial time of the organization's senior management recommending that 'political' factors can have significant ramifications for an international organisation.

Economic Factors: Economic factors such as the appearance of small companies in the global scenario recommend that Mondavi Winery is growing in a setting where there is possible development of services. Reality that shop customers are mainly looking for workplace materials for house offices recommends that the market has a climbing pattern of entrepreneurs and residence based companies.

Social factors: Social trends in the economic climate show that customers are trying to find benefit along with eye-catching prices. Market research demonstrates how the client for Mondavi Winery lacks understanding about discovering remedies which can use a mix of comfort and inexpensive.

Technical factors: Innovation plays an essential duty in Mondavi Winery's business strategy especially as the company is piloting Innovation facilities which would supply innovation sales and also support in the kind of memory upgrades, peripheral installments. (Summary of BUG in appendix 2).

OB Issues and also Symptoms.

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

Apprehensions about social change: There is concern regarding a social change that would happen as soon as Todd Krasnow leaves from his position as the Exec Vice President of Advertising with a lot of the team member currently showing discontent over this prospective relocation. This anticipated change has produced stress in the workplace which has actually been combined with the past stress and anxiety of preparing the company for a prospective merger with Residence Deport.

Difficult Job Setting for Newcomers: There is shortage of employees that can match the stressful setting of a hectic organization. Not only does this cause problem in discovering the appropriate people, it places anxiety on brand-new hires as can not hold up against the rate and also stress that the organization expects them to birth.

Dual Coverage Lines: Newcomers discover this business society difficult as well as hard to manage specifically as dotted line relationships are suggested to be weak in general as well as unbiased setting and also performance assessment is still done by the strong line manager. This suggests that novices can shed quality regarding their particular duties and also goals specifically as dotted line reporting does not maintain them in direct interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had actually been hypothesized that the last would certainly take Krasnow's placement came as a blow to her spirits. Lewis may have been capable and also ideal for the work yet the reality that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from services.

Concern & Work Instability: Fear and also instability can be determined as two significant problems that Lewis would certainly be managing particularly as the merging has currently be terminated and also 2 senior executives of the advertising and marketing division would certainly be leaving. The entire duty of the department would certainly be dropping on Lewis's shoulders that would not just be in charge of brining regarding a cultural change yet would certainly likewise need to show herself in her new duty.

Inappropriate Monitoring Design of Leader: Lewis's management design and its incompatibility with the marketing division's function can additionally be viewed as an OB difficulty specifically as she has actually been utilized to handling problems in the procedures division where workers are educated to focus on procedures and obtain them right. The advertising and marketing division on the various other hand can be viewed as a group of people who are made use of to being nurtured by Krasnow that focused more on output than procedures.

Interdepartmental Differences: Interdepartmental disputes in between 3 divisions, advertising and marketing, merchandizing and also procedures respectively over the allotment of the marketing mix can be identified as another OB concern. The marketing department does not share the exact same vision as the other two departments relating to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing as well as operations departments do not concur over the marketing mix allowance among one an additional either.

Disintegration in Marketing Department: Fragmentation in between the advertising and marketing departments can be identified as another OB issue which can need more interest. The fact that the marketing and advertising areas in the marketing division are disconnected is protecting against both divisions from gaining from each various other's experience and also competence. Combination of marketing with merchandising as well as procedures would end up being harder if the advertising division itself is broken down which can be one more potential OB issue.

Mondavi Winery Analysis

Different concepts have been utilized to discuss the situations to obtain additional quality concerning the scenario handy.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that staffs are easy as well as careless, have little aspiration as well as resist modification. The tough version of this theory stressed browbeating, limited controls, risks and also penalties. Gradually it produces reduced productivity, subtle sabotage and competition (Offer, 2003). Although the circumstance at Mondavi Winery is not totally complying with Theory X, it can be seen that brand-new hires are discovering this environment rather difficult which might eventually bring about a greater inclination of the management towards Concept X. Based on McGregor's promoted sight, which he called Theory Y, the necessary task of the monitoring is to set up organizational problems so that individuals can attain their own objectives best by guiding their initiatives towards business benefits. If people discover no fulfillment in their work, the monitoring would certainly have little option yet to depend on theory X as well as external control (Offer, 2003). Even while analyzing Lewis's management style, concept X may have been suitable in the procedures department somewhat yet the Marketing department would need dependence on Theory Y so as to get the creativity and creativity from the groups.

Tuckman's Team effort Concept: As much as Lewis's problem regarding bringing harmony in between the advertising as well as advertising department is concerned, this would originally lead to contrast as discussed by Bruce Tuckman in his 'Team effort Theory'. By integrating the advertising and also marketing department's work, there may be the exact same initial disconnect which could lead to the 2nd phase of 'storming' where the groups challenge one another.

Bridges' Change Version: As per William Bridge's concept (appendix 4), people are fairly awkward with modification, which is apparent by the situation at Mondavi Winery The circumstance can be seen as a typical program of life if is studied as per Bridge's theory where he discusses that individuals go through 3 stages of shift when they experience change. 'Ending, losing and also Releasing', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people are presented with change, they go into phase one and so there might be feelings like despair, uncertainty, irritation, rage, concern, rejection and disorientation.The scenario at the marketing division of Mondavi Winery is comparable so Lewis can get comfortable with the idea that it is not phenomenal actions. In the 2nd stage, there might be a demand to bridge the gap in between the new as well as old culture so Lewis might have to face this challenge as soon as Krasnow leaves. There might be reduced morale and low efficiency at this stage which must not be taken as an obstacle. It is during this stage that Lewis will have to offer advice to the department to ensure that they can locate an orientation. It can be seen just how Krasnow has actually currently made this change much easier by making Lewis obtain associated with the department a year before his real departure. Based on Bridges' Model, phase three will certainly bring about openness to understanding, High energy as well as commitment as people will certainly embrace the adjustment (Bridges, 2004).

Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has goes over the value of 'protection requires as being a lower level requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel safe and out of risk' is at the 2nd degree of demands. Prior to a staff member can be made to develop mentally, he needs to have his 'Physiological 'and 'Safety' requires met.

SWOT Analysis for Mondavi Winery Case Study

Effects of Analysis.

The OB analysis has looked at different theories to recognize just how to cope with the current circumstance handy. The complying with 3 options have been suggested to assist Lewis take care of the business challenges in the advertising department. Each of these alternatives has actually been suggested for easing the shift needed to bring the marketing department in line with the needs of the market as well as for making the social modification that would certainly adhere to as soon as the existing leader leaves.

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

Examination of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis during the earlier merging days has experience in business-to-business advertising along with agency and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both marketing and also advertising functions.

The advantage of this technique is that it will incorporate both features while reducing the requirement for employing an extra resource for advertising and marketing. In addition to this, Lewis would be heading the advertising department and also regardless her replacement would be required for the current role that she is executing. The downside of this alternative is that external hiring may produce animosity from inner workers that might be considering the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting as well as Production: Given the competitive pressures and top quality work needed from the ad agency, it is advised that Lewis must permit the manufacturing system to be a different function from the advertising and marketing system. Considering that a lot of ad agency had these 2 features as different devices, it makes more feeling to adhere to the standard. Both features might be able to concentrate on their core triggers a lot more successfully. The negative aspect of this technique would be that additional prices would have to be borne for establishing up different production features. Along with this, a production head might need to be worked with which can increase expenses for the organization.

Combination of Advertising with Workflows: Considering that Lewis is already taking treatment of the advertising and operations divisions at the same time; it makes sense to integrate the 2 features given that she has actually been successfully taking treatment of both ends. The truth that Lewis has to adapt her management style for the marketing department recommends that these 2 divisions would certainly be culturally diverse.


An examination of the 3 choices shows that integration of advertising and marketing and operations would not be a possible move due to the huge differences between both departments although that currently Lewis is dealing with both. While separation of the manufacturing function might have been a desirable relocation for the marketing division, the reality that it would imply placing a 3rd feature under Lewis's wing means this should be prevented. The assimilation of the advertising and marketing department is the very best choice in regards to getting the optimum results from the department. An activity prepare for this choice is gone over listed below.

Action Strategy.

Lewis will take control of the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would be combined.

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

Manufacturing function will remain part of advertising under advertising and marketing feature.

Lewis will divide herself from procedures.

A democratic management design with staff member empowerment will certainly be utilized in marketing division.

Open up door policy and also focus on cross department communication will be focused on eliminating disharmony.

Contingency plan.

If the integration does not exercise as prepared, a contingency plan would certainly follow which would certainly separate the production feature from the advertising and marketing function to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing division without an SVP. Because case the production function will certainly be divided by positioning it under an SVP manufacturing.