New Denmark Sawmill Upgrade Case Study Solution


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New Denmark Sawmill Upgrade Case Study Solution

Background and Facts

New Denmark Sawmill Upgrade a workplace materials store for small and also moderate sized businesses has lately been associated with preparing for a merging with its rival Home Deport, which has affected effectiveness degrees in departmentswith the elderly manager associated with legal difficulties presented by the government Profession Payment. With the Advertising and marketing Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the present head of operations has been asked to take the role in the future. With challenges in the kind of a prospective cultural adjustment and reduced worker morale, the company needs a total reengineering effort at the advertising and marketing division.

Issue Statement
Porter's 5 Forces Analysis
The prospective social adjustment at the advertising division of New Denmark Sawmill Upgrade is boosting unpredictability in the workplace resulting in various difficulties for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting critical choices considering that Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Profession Payment's intervention at the same time. Given the fact that the store has an international presence with branches in UK, USA, Canada and Germany, political consider each of these countries may have the ability to affect performance or strategic goals. Federal Profession Commission's antitrust match against the merger occupied valuable time of the organization's elderly administration suggesting that 'political' factors can have serious ramifications for a global business.

Economic Factors: Economic factors such as the emergence of small companies in the international circumstance recommend that New Denmark Sawmill Upgrade is prospering in a setting where there is prospective development of services. Reality that shop clients are primarily looking for office supplies for home workplaces recommends that the market has an increasing trend of business owners and house based businesses.

Social factors: Social trends in the economy reveal that consumers are searching for benefit in addition to attractive costs. Market research demonstrates how the consumer for New Denmark Sawmill Upgrade lacks understanding about discovering options which can offer a mix of convenience and also low costs.

Technological factors: Innovation plays an important role in New Denmark Sawmill Upgrade's organisation method particularly as the company is piloting Technology facilities which would provide modern technology sales and also support in the type of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Organizational Behavior concerns can be seen in New Denmark Sawmill Upgrade's case as highlighted in this area.

Apprehensions concerning cultural adjustment: There is apprehension regarding a social change that would occur once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising And Marketing with a lot of the employee currently showing discontent over this potential move. This anticipated adjustment has produced stress and anxiety in the work environment which has actually been paired with the past stress of preparing the firm for a potential merger with Home Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is scarcity of employees that can match the difficult atmosphere of a busy company. Not just does this bring about difficulty in finding the best people, it puts anxiety on brand-new hires as can not endure the rate as well as stress that the organization anticipates them to birth.

Dual Coverage Lines: Newbies discover this organizational society difficult as well as tough to cope with especially as dotted line relationships are meant to be weaker in general and also objective setting and efficiency analysis is still done by the solid line supervisor. This indicates that newcomers might lose clarity regarding their corresponding duties and also goals especially as dotted line coverage does not keep them in straight interaction with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been hypothesized that the last would take Krasnow's position came as a strike to her morale. Lewis may have been capable as well as ideal for the task but the reality that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.

Fear & Job Instability: Anxiety and insecurity can be recognized as two significant issues that Lewis would certainly be taking care of particularly as the merging has actually currently be terminated and two senior executives of the marketing division would be leaving. The whole obligation of the division would certainly be dropping on Lewis's shoulders who would certainly not just supervise of brining regarding a social adjustment yet would certainly also have to prove herself in her new duty.

Incompatible Management Design of Leader: Lewis's management design and also its conflict with the advertising and marketing division's duty can additionally be viewed as an OB difficulty especially as she has actually been used to handling concerns in the procedures division where workers are educated to concentrate on procedures and get them right. The advertising and marketing department on the various other hand can be viewed as a group of people who are utilized to being supported by Krasnow who focused a lot more on result than procedures.

Interdepartmental Disagreements: Interdepartmental differences in between three departments, advertising, merchandizing and operations respectively over the appropriation of the advertising and marketing mix can be determined as one more OB concern. The advertising and marketing division does not share the very same vision as the various other two departments concerning the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing as well as procedures departments do not agree over the marketing mix allowance among one an additional either.

Disintegration in Marketing Department: Disintegration in between the advertising and marketing departments can be determined as one more OB issue which could require additional attention. The reality that the advertising and marketing areas in the advertising division are disconnected is preventing both departments from obtaining from each other's experience and also experience. Integration of marketing with merchandising and operations would end up being harder if the marketing division itself is degenerated which can be another prospective OB problem.

New Denmark Sawmill Upgrade Analysis

Numerous concepts have actually been made use of to explain the scenarios to get more clearness concerning the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers think that subordinates are passive and also lazy, have little passion and also stand up to change. The hard variation of this concept emphasized browbeating, limited controls, risks as well as punishments. With time it produces reduced productivity, refined sabotage as well as competition (Offer, 2003). The circumstance at New Denmark Sawmill Upgrade is not entirely adhering to Concept X, it can be seen that brand-new hires are locating this environment rather difficult which might at some point lead to a greater inclination of the management towards Theory X. As per McGregor's advocated view, which he called Concept Y, the necessary job of the administration is to prepare organizational problems to ensure that people can accomplish their own goals best by routing their efforts in the direction of organizational incentives. If people find no complete satisfaction in their job, the administration would certainly have little option but to count on concept X and also outside control (Deal, 2003). Even while assessing Lewis's management design, concept X might have been suitable in the procedures department somewhat yet the Advertising division would certainly need reliance on Theory Y in order to get the creativity and creativity from the groups.

Tuckman's Synergy Concept: As for Lewis's problem about bringing consistency between the marketing and advertising department is concerned, this would initially lead to contrast as talked about by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, during the preliminary phase of group advancement, individuals may not bond, as they are active discovering their location in the group. By combining the marketing and advertising division's work, there may be the same first detach which might bring about the second phase of 'storming' where the groups challenge each other. It is only during the third stage or 'norming' when they would come with each other to share ideas before the group can bring around harmony in the fourth stage 'executing'.

When people are presented with modification, they enter stage one as well as so there might be emotions like unhappiness, unpredictability, frustration, temper, fear, rejection and also disorientation.The situation at the advertising division of New Denmark Sawmill Upgrade is similar so Lewis can obtain comfortable with the concept that it is not phenomenal behavior. It is throughout this phase that Lewis will certainly have to give guidance to the department so that they can discover a feeling of instructions. It can be seen exactly how Krasnow has actually already made this transition easier by making Lewis obtain involved in the division a year before his real separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has discusses the significance of 'protection requires as being a lower degree need of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel secure as well as out of danger' is at the 2nd degree of requirements. Before a staff member can be made to establish emotionally, he requires to have his 'Physiological 'and 'Safety and security' needs fulfilled.

SWOT Analysis for New Denmark Sawmill Upgrade Case Study

Implication of Analysis.

The OB analysis has actually checked out different theories to understand exactly how to handle the current circumstance at hand. The following 3 alternatives have actually been proposed to help Lewis take care of the business obstacles in the advertising and marketing department. Each of these choices has actually been recommended for alleviating the shift needed to bring the advertising division in line with the needs of the market and for making the social change that would comply with as soon as the present leader leaves.

Assimilation of advertising and marketing functions. Dividing Adverting and Production functions. Combination of Advertising And Marketing with Operations.

Assessment of Alternatives.

Assimilation of Advertising & Advertising And Marketing Functions: The internal advertising company of New Denmark Sawmill Upgrade is already toughness for the company in terms of conserving up on expenses connected to marketing and promo. Because no brand-new employment has been done after Bridget Cole's departure with the reporting line being directly designated to Krasnow for the marketing function, this is a favorable opportunity for incorporating the advertising and marketing features. Judith Shapiro that has earlier been spoken with by Lewis during the earlier merger days has experience in business-to-business marketing in addition to agency and retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both marketing and advertising functions.

The benefit of this method is that it will integrate both functions while minimizing the need for employing an extra source for marketing. Lewis would be heading the advertising and marketing department as well as in any type of case her substitute would be needed for the existing duty that she is performing. The downside of this choice is that exterior hiring might cause animosity from interior employees who may be looking at the placement of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and Production: Given the competitive pressures and also high quality work required from the marketing agency, it is suggested that Lewis ought to permit the manufacturing unit to be a different function from the advertising and marketing device. Because a lot of marketing agencies had these two features as different systems, it makes even more feeling to follow the standard.

Integration of Advertising And Marketing with Workflows: Considering that Lewis is currently taking care of the advertising and marketing and also procedures divisions concurrently; it makes feeling to integrate the 2 functions given that she has actually been effectively taking treatment of both ends. The truth that Lewis has to adapt her monitoring style for the marketing department suggests that these 2 departments would be culturally diverse.


An assessment of the three choices shows that combination of advertising and marketing as well as procedures would certainly not be a feasible relocation due to the large distinctions between the 2 divisions in spite of the reality that presently Lewis is managing both. While separation of the production function might have been a positive move for the marketing department, the reality that it would certainly suggest putting a 3rd feature under Lewis's wing means this should be stayed clear of.

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

Marketing and advertising features would certainly be combined.

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

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

Lewis will divide herself from operations.

A democratic management design with worker empowerment will be used in advertising division.

Open door policy and focus on cross departmental communication will be aimed at eliminating disharmony.

Contingency strategy.

If the combination does not exercise as planned, a contingency plan would follow which would certainly divide the manufacturing function from the marketing function to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising and marketing department without an SVP. In that case the production function will absolutely be divided by placing it under an SVP production.