Off Balance Sheet Financing At Big 5 Sporting Goods Corporation Case Study Analysis


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Off Balance Sheet Financing At Big 5 Sporting Goods Corporation Case Study Solution

Background and Facts

Off Balance Sheet Financing At Big 5 Sporting Goods Corporation an office products seller for little and also moderate sized organisations has actually lately been involved in preparing for a merger with its competitor Home Deport, which has actually affected performance levels in departmentswith the senior supervisor associated with lawful issues presented by the government Profession Payment. With the Advertising and marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the future. With difficulties in the form of a prospective social change and also low staff member morale, the organization is in need of a total reengineering initiative at the advertising and marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The possible cultural change at the marketing division of Off Balance Sheet Financing At Big 5 Sporting Goods Corporation is boosting uncertainty in the working environment resulting in numerous 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 function in affecting strategic decisions considering that Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Profession Compensation's treatment in the process. Provided the fact that the store has an international presence with branches in UK, U.S.A., Canada and Germany, political consider each of these countries might have the ability to impact efficiency or tactical goals. Federal Trade Commission's antitrust fit against the merging used up useful time of the company's elderly management recommending that 'political' factors can have serious effects for a worldwide organisation.

Economic Factors: Financial factors such as the emergence of small businesses in the international circumstance suggest that Off Balance Sheet Financing At Big 5 Sporting Goods Corporation is flourishing in a setting where there is potential growth of businesses. Along with this, reality that shop clients are primarily searching for office products for office recommends that the market has a rising pattern of entrepreneurs and also online businesses.

Social factors: Social patterns in the economic climate show that clients are trying to find comfort as well as attractive rates. Marketing research demonstrates how the consumer for Off Balance Sheet Financing At Big 5 Sporting Goods Corporation lacks awareness regarding discovering options which can provide a combination of comfort as well as inexpensive.

Technological factors: Modern technology plays an important role in Off Balance Sheet Financing At Big 5 Sporting Goods Corporation's organisation method particularly as the organization is piloting Innovation centers which would certainly supply modern technology sales and support in the type of memory upgrades, peripheral installments. (Recap of INSECT in appendix 2).

OB Issues as well as Effects.

A number of underlying Organizational Behavior problems can be seen in Off Balance Sheet Financing At Big 5 Sporting Goods Corporation's case as highlighted in this section.

Apprehensions about cultural change: There is apprehension concerning a social modification that would take place once Todd Krasnow leaves from his placement as the Executive Vice President of Marketing with most of the staff members currently showing unhappiness over this possible relocation. This expected adjustment has actually developed anxiety in the office which has actually been combined with the past anxiety of preparing the company for a potential merging with House Deport.
Pest Analysis
Difficult Work Setting for Newcomers: There is lack of personnel that can match the difficult atmosphere of a hectic organization. Not just does this lead to difficulty in discovering the ideal people, it places tension on brand-new hires as can not stand up to the rate as well as pressure that the company expects them to bear.

Double Reporting Lines: Beginners locate this business society troublesome and also difficult to manage especially as dotted line relationships are indicated to be weak generally and unbiased setting and also efficiency assessment is still done by the strong line manager. This means that newbies could lose quality regarding their respective functions and also purposes particularly as populated line coverage does not keep them in straight interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had been hypothesized that the last would certainly take Krasnow's position came as a strike to her spirits. Lewis may have been qualified as well as suitable for the task however the fact that Kransnow's separation would make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Work Instability: Anxiety and also instability can be identified as two major concerns that Lewis would certainly be taking care of specifically as the merging has currently be cancelled as well as two elderly execs of the advertising division would certainly be leaving. The entire duty of the division would certainly be falling on Lewis's shoulders who would certainly not just supervise of brining concerning a cultural change yet would certainly likewise need to verify herself in her new duty.

Incompatible Monitoring Design of Leader: Lewis's management style and its conflict with the advertising and marketing division's role can also be seen as an OB difficulty particularly as she has been utilized to dealing with issues in the procedures department where workers are shown to concentrate on processes and also get them. The marketing department on the various other hand can be seen as a team of individuals that are utilized to being nurtured by Krasnow that focused a lot more on result than processes.

Interdepartmental Arguments: Interdepartmental arguments in between 3 divisions, advertising and marketing, merchandizing and procedures respectively over the appropriation of the advertising mix can be identified as another OB concern. The marketing department does not share the very same vision as the various other two departments relating to the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and procedures departments do not concur over the advertising mix appropriation among one another either.

Disintegration in Advertising Department: Fragmentation in between the advertising and marketing departments can be determined as one more OB problem which might require more focus. The truth that the marketing and advertising sections in the advertising department are separated is preventing both divisions from gaining from each various other's experience as well as know-how. Assimilation of marketing with merchandising and also operations would certainly come to be harder if the advertising and marketing division itself is degenerated which can be another potential OB concern.

Off Balance Sheet Financing At Big 5 Sporting Goods Corporation Analysis

Numerous concepts have been used to describe the conditions to obtain more clarity about the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors think that subordinates are easy and lazy, have little aspiration and also withstand modification. The scenario at Off Balance Sheet Financing At Big 5 Sporting Goods Corporation is not entirely adhering to Theory X, it can be seen that brand-new hires are finding this setting rather demanding which might eventually lead to a better inclination of the management in the direction of Concept X. Even while examining Lewis's administration style, theory X might have been ideal in the operations division to some degree yet the Advertising division would require dependence on Concept Y in order to obtain the creative thinking and originality from the groups.

Tuckman's Synergy Concept: Regarding Lewis's worry concerning bringing harmony between the advertising and marketing division is concerned, this would originally lead to clash as gone over by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, throughout the first phase of team development, people may not bond, as they are busy locating their area in the team. By integrating the advertising and marketing department's work, there may coincide initial detach which can cause the second stage of 'storming' where the groups challenge each other. However, it is just throughout the 3rd phase or 'norming' when they would collaborate to share ideas before the group can produce synergy in the 4th stage 'executing'.

When individuals are presented with adjustment, they go into phase one and also so there may be feelings like despair, uncertainty, irritation, rage, worry, denial and also disorientation.The situation at the advertising and marketing division of Off Balance Sheet Financing At Big 5 Sporting Goods Corporation is comparable so Lewis can obtain comfortable with the concept that it is not remarkable habits. It is throughout this stage that Lewis will have to give guidance to the department so that they can locate a sense of direction. It can be seen exactly how Krasnow has already made this transition less complicated by making Lewis get included in the department a year prior to his real departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has goes over the importance of 'safety needs as being a lower degree need of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel safe and secure as well as out of risk' is at the 2nd degree of needs. Before a staff member can be made to develop psychologically, he requires to have his 'Physiological 'as well as 'Security' needs met.

SWOT Analysis for Off Balance Sheet Financing At Big 5 Sporting Goods Corporation Case Study

Implication of Analysis.

The OB analysis has actually checked out different concepts to comprehend exactly how to handle the existing circumstance at hand. The adhering to 3 alternatives have actually been recommended to assist Lewis take care of the organizational challenges in the advertising division. Each of these alternatives has actually been recommended for easing the shift needed to bring the advertising division according to the requirements of the marketplace and for making the cultural adjustment that would comply with once the existing leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting and also Manufacturing features. Combination of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Assimilation of Advertising And Marketing & Advertising Functions: The internal marketing agency of Off Balance Sheet Financing At Big 5 Sporting Goods Corporation is currently stamina for the company in regards to saving up on overheads connected to advertising and promotion. Since no brand-new employment has actually been done after Bridget Cole's separation with the coverage line being straight assigned to Krasnow for the advertising and marketing feature, this is a desirable opportunity for incorporating the marketing and advertising features. Judith Shapiro who has earlier been spoken with by Lewis during the earlier merging days has competence in business-to-business advertising along with company and also retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to handle both marketing and advertising features.

The advantage of this strategy is that it will certainly incorporate the two functions while lowering the requirement for hiring an extra resource for advertising. In addition to this, Lewis would be heading the marketing division and all the same her replacement would certainly be required for the current function that she is doing. The disadvantage of this option is that exterior hiring may cause resentment from inner workers who might be looking at the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Manufacturing: Provided the competitive stress and also high top quality job needed from the marketing company, it is suggested that Lewis ought to enable the production unit to be a separate feature from the marketing unit. Considering that many marketing companies had these 2 functions as separate devices, it makes even more feeling to follow the norm.

Assimilation of Marketing with Procedures: Considering that Lewis is already looking after the marketing and also operations departments at the same time; it makes good sense to incorporate both functions given that she has actually been successfully taking care of both ends. The fact that both divisions already have major distinctions over appropriation of resources suggests that this combination might be able to cause consistency especially as Lewis would certainly be heading both ends.However there are different negative aspects of this action especially as it would put way too much problem over Lewis's shoulders. The fact that Lewis has to adapt her administration style for the marketing division recommends that these 2 divisions would certainly be culturally varied. Lewis may not be able to apply one kind of leadership style to both departments which could result in ineffectiveness in either one of the two features.


An analysis of the three alternatives suggests that combination of advertising and procedures would not be a viable action due to the substantial distinctions between the two divisions regardless of the truth that presently Lewis is managing both. While separation of the production feature might have been a desirable relocation for the advertising division, the truth that it would indicate putting a third feature under Lewis's wing indicates this need to be stayed clear of.

Action Strategy.
Lewis will take control of the function of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

Production feature will certainly continue to be component of advertising and marketing under advertising feature.

Lewis will certainly separate herself from procedures.

An autonomous leadership design with employee empowerment will be used in advertising and marketing department.

Open up door plan and focus on cross department interaction will be aimed at getting rid of discord.

Backup plan.

If the integration does not work out as prepared, a backup strategy would certainly adhere to which would separate the manufacturing feature from the advertising feature to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising department without an SVP. In that case the manufacturing feature will absolutely be separated by positioning it under an SVP production.