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Pacific Grove Spice Company Case Study Analysis

Background and Facts

Pacific Grove Spice Company a workplace supplies store for little as well as medium sized businesses has actually recently been involved in preparing for a merger with its competitor House Deport, which has impacted efficiency degrees in departmentswith the senior supervisor associated with legal problems presented by the federal Profession Commission. With the Advertising and marketing Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the future. With obstacles in the type of a prospective cultural change and also reduced staff member morale, the company is in need of a total reengineering effort at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the advertising division of Pacific Grove Spice Company is boosting uncertainty in the working environment leading to numerous difficulties for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting calculated choices given that Stapes Inc. had to abandon its strategies of combining with Workplace Deport after the Federal Trade Payment's treatment in the process. Offered the reality that the store has a worldwide presence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries might be able to affect performance or strategic objectives. Federal Profession Payment's antitrust fit against the merger occupied important time of the organization's senior management recommending that 'political' factors can have serious effects for an international business.

Economic Factors: Financial factors such as the emergence of local business in the worldwide situation recommend that Pacific Grove Spice Company is flourishing in a setting where there is potential growth of organisations. In addition to this, truth that store clients are primarily seeking office supplies for home offices suggests that the market has a rising fad of entrepreneurs and home based companies.

Social factors: Social fads in the economic climate reveal that clients are trying to find ease along with eye-catching prices. Market research shows how the consumer for Pacific Grove Spice Company does not have awareness concerning discovering solutions which can offer a combination of convenience as well as inexpensive.

Technological factors: Technology plays a vital role in Pacific Grove Spice Company's business approach particularly as the company is piloting Technology centers which would certainly use innovation sales and also assistance in the type of memory upgrades, outer installments. (Recap of PEST in appendix 2).

OB Issues and also Effects.

A number of underlying Business Habits problems can be seen in Pacific Grove Spice Company's case as highlighted in this area.

Apprehensions concerning social adjustment: There is worry regarding a social modification that would certainly take place as soon as Todd Krasnow leaves from his setting as the Executive Vice President of Advertising And Marketing with most of the personnel currently revealing unhappiness over this prospective relocation. This predicted change has actually developed anxiety in the workplace which has actually been paired with the previous stress of preparing the firm for a possible merging with House Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is lack of workers that can match the difficult environment of a fast-paced company. Not only does this lead to trouble in discovering the best individuals, it puts stress on brand-new hires as can not withstand the speed as well as pressure that the organization expects them to birth.

Double Reporting Lines: Beginners discover this organizational culture cumbersome and also difficult to deal with especially as dotted line connections are implied to be weaker in general and also objective setting as well as efficiency analysis is still done by the strong line supervisor. This indicates that beginners can lose quality about their corresponding duties and objectives especially as dotted line reporting does not maintain them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles even though it had actually been hypothesized that the last would certainly take Krasnow's position came as a blow to her spirits. Lewis may have been capable and also proper for the job however the fact that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Work Instability: Concern and insecurity can be identified as two major concerns that Lewis would be dealing with particularly as the merger has actually currently be terminated and two elderly executives of the advertising and marketing division would certainly be leaving. The entire obligation of the department would certainly be falling on Lewis's shoulders that would certainly not just be in charge of brining concerning a cultural modification however would certainly additionally have to verify herself in her new role.

Incompatible Monitoring Design of Leader: Lewis's administration design and also its incompatibility with the advertising division's role can also be viewed as an OB difficulty specifically as she has actually been used to handling concerns in the operations division where personnel are taught to focus on processes and get them right. The advertising department on the various other hand can be viewed as a team of individuals that are made use of to being nurtured by Krasnow who focused extra on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements between 3 divisions, advertising, merchandizing and procedures specifically over the allocation of the advertising and marketing mix can be determined as one more OB concern. Although the marketing division does not share the same vision as the various other two departments regarding the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing as well as operations divisions do not concur over the advertising mix appropriation among each other either.

Fragmentation in Advertising And Marketing Department: Fragmentation between the advertising and marketing divisions can be identified as another OB issue which could require additional focus. The fact that the marketing and advertising sections in the advertising department are separated is protecting against both divisions from acquiring from each other's experience and also proficiency. Assimilation of marketing with retailing and also procedures would come to be more difficult if the advertising and marketing division itself is broken down which can be one more potential OB issue.

Pacific Grove Spice Company Analysis

Different theories have been utilized to explain the circumstances to get more clearness about the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers think that juniors are easy and also lazy, have little passion as well as stand up to change. The tough version of this theory highlighted coercion, tight controls, hazards as well as penalties. With time it generates reduced performance, refined sabotage and rivalry (Bargain, 2003). Although the circumstance at Pacific Grove Spice Company is not completely complying with Concept X, it can be seen that brand-new hires are finding this atmosphere rather demanding which may eventually cause a greater inclination of the administration in the direction of Theory X. As per McGregor's advocated view, which he called Concept Y, the vital task of the management is to organize business conditions to ensure that people can attain their own objectives best by directing their efforts in the direction of organizational incentives. If people discover no contentment in their job, the monitoring would certainly have little selection however to rely on concept X and exterior control (Offer, 2003). Even while examining Lewis's management design, theory X might have appropriated in the procedures division to some extent however the Advertising and marketing department would call for dependence on Theory Y so as to get the creative thinking as well as creativity from the groups.

Tuckman's Synergy Theory: As far as Lewis's problem concerning bringing harmony between the advertising and also marketing division is concerned, this would at first lead to contrast as discussed by Bruce Tuckman in his 'Teamwork Concept'. By integrating the marketing and marketing division's job, there may be the exact same initial disconnect which can lead to the second stage of 'storming' where the teams challenge one another.

Bridges' Shift Version: Based On William Bridge's theory (appendix 4), individuals are rather uneasy with change, which is obvious by the situation at Pacific Grove Spice Company The scenario can be viewed as a normal course of life if is examined as per Bridge's concept where he describes that individuals experience three phases of transition when they experience modification. 'End, shedding and also Letting go', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When individuals exist with adjustment, they go into stage one therefore there may be emotions like unhappiness, unpredictability, irritation, rage, concern, rejection and also disorientation.The scenario at the advertising division of Pacific Grove Spice Company is similar so Lewis can obtain comfortable with the concept that it is not remarkable behavior. In the 2nd stage, there may be a need to bridge the gap between the new and also old culture so Lewis might need to face this challenge once Krasnow leaves. There might be low spirits as well as reduced efficiency at this stage which must not be taken as a trouble. It is throughout this stage that Lewis will need to give assistance to the division so that they can find an orientation. It can be seen how Krasnow has currently made this shift less complicated by making Lewis get involved in the department a year before his real separation. Based on Bridges' Design, phase 3 will certainly bring about openness to understanding, High energy and dedication as individuals will accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has discusses the importance of 'protection requires as being a lower level requirement of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel protected and out of threat' is at the 2nd degree of needs. Prior to a worker can be made to develop psychologically, he requires to have his 'Physical 'and 'Safety' needs fulfilled.

SWOT Analysis for Pacific Grove Spice Company Case Study

Effects of Analysis.

The OB analysis has actually taken a look at numerous concepts to understand how to handle the existing situation handy. The complying with three choices have actually been suggested to aid Lewis manage the business obstacles in the marketing department. Each of these options has been recommended for alleviating the shift needed to bring the advertising and marketing division in accordance with the demands of the marketplace and also for making the social adjustment that would certainly adhere to as soon as the current leader leaves.

Assimilation of advertising and marketing functions. Dividing Adverting and Production features. Combination of Marketing with Procedures.

Evaluation of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The internal advertising firm of Pacific Grove Spice Company is already strength for the company in regards to saving up on expenses related to advertising and marketing as well as promotion. Because no new employment has been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the advertising and marketing function, this is a favorable opportunity for incorporating the advertising and marketing features. Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merging days has proficiency in business-to-business marketing along with firm and retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both marketing and advertising functions.

The advantage of this approach is that it will incorporate both features while decreasing the need for employing an added source for advertising. Along with this, Lewis would certainly be heading the advertising department and also in any case her replacement would certainly be required for the current role that she is carrying out. The downside of this alternative is that exterior hiring might cause bitterness from inner personnel who may be considering the position of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting as well as Production: Provided the affordable stress and also top quality work required from the ad agency, it is recommended that Lewis must permit the manufacturing system to be a different function from the marketing unit. Because a lot of advertising agencies had these two features as different devices, it makes more sense to adhere to the norm. Both functions may be able to focus on their core triggers much more successfully. The downside of this method would certainly be that extra prices would have to be birthed for establishing up separate manufacturing functions. Along with this, a manufacturing head might need to be employed which might enhance overheads for the organization.

Combination of Advertising And Marketing with Workflows: Because Lewis is currently taking care of the advertising and also operations departments simultaneously; it makes good sense to integrate the two features because she has actually been effectively dealing with both ends. The reality that both divisions already have significant distinctions over allocation of resources recommends that this assimilation might have the ability to cause harmony specifically as Lewis would certainly be heading both ends.However there are different drawbacks of this move specifically as it would certainly place excessive burden over Lewis's shoulders. The truth that Lewis has to adjust her management design for the marketing department recommends that these two departments would certainly be culturally varied. Along with this, Lewis may not be able to use one sort of management style to both departments which could lead to inefficiency in either among the two features.


An assessment of the 3 alternatives shows that assimilation of marketing as well as procedures would not be a practical step due to the substantial distinctions between the 2 divisions in spite of the truth that presently Lewis is taking care of both. While separation of the manufacturing feature might have been a favorable relocation for the marketing department, the truth that it would certainly mean positioning a third feature under Lewis's wing indicates this ought to be stayed clear of.

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

Advertising and Marketing features would certainly be merged.

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

Manufacturing function will continue to be part of marketing under marketing function.

Lewis will certainly divide herself from operations.

A democratic leadership design with staff member empowerment will be made use of in marketing division.

Open door policy and emphasis on cross departmental interaction will be targeted at removing discord.

Backup plan.

If the integration does not work out as prepared, a backup plan would adhere to which would certainly divide the manufacturing feature from the advertising function to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the manufacturing feature will definitely be divided by positioning it under an SVP manufacturing.