Pacific Salmon Co Inc Case Study Solution


Home >> Harvard >> Pacific Salmon Co Inc >>

Pacific Salmon Co Inc Case Study Help

Background and Facts

Pacific Salmon Co Inc an office materials merchant for small and moderate sized businesses has actually recently been involved in preparing for a merging with its competitor House Deport, which has actually affected efficiency levels in departmentswith the senior supervisor associated with lawful complications put forth by the government Trade Payment. With the Advertising Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the current head of operations has been asked to take the duty in the future. With challenges in the form of a potential cultural adjustment and also reduced staff member spirits, the company needs a complete reengineering effort at the advertising division.

Problem Declaration
Porter's 5 Forces Analysis
The prospective social change at the advertising department of Pacific Salmon Co Inc is raising unpredictability in the workplace leading to different challenges 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 significant duty in impacting strategic choices because Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Profession Compensation's intervention at the same time. Offered the reality that the store has a worldwide presence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations may have the ability to influence performance or critical goals. Federal Trade Payment's antitrust match versus the merger took up valuable time of the company's senior monitoring suggesting that 'political' factors can have major implications for an international company.

Economic Factors: Economic factors such as the appearance of small businesses in the international circumstance suggest that Pacific Salmon Co Inc is prospering in a setting where there is possible growth of businesses. Along with this, reality that store consumers are mostly searching for office materials for office recommends that the marketplace has a rising trend of business owners and home organisations.

Social factors: Social patterns in the economic climate reveal that customers are seeking ease along with attractive prices. Market research shows how the client for Pacific Salmon Co Inc lacks recognition regarding locating services which can use a combination of benefit and affordable.

Technical factors: Modern technology plays a crucial role in Pacific Salmon Co Inc's service technique specifically as the company is piloting Technology facilities which would offer modern technology sales as well as assistance in the type of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Organizational Habits problems can be seen in Pacific Salmon Co Inc's case as highlighted in this area.

Worries concerning social change: There is worry about a social adjustment that would certainly occur as soon as Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with the majority of the personnel already showing discontent over this potential step. This predicted adjustment has actually produced tension in the workplace which has been combined with the previous stress of preparing the company for a possible merging with Home Deport.
Pest Analysis
Difficult Work Setting for Newcomers: There is shortage of workers that can match the demanding atmosphere of a busy company. Not just does this result in problem in finding the right individuals, it puts anxiety on new hires as can not hold up against the rate and stress that the organization anticipates them to bear.

Double Reporting Lines: Beginners discover this business culture troublesome and difficult to handle particularly as dotted line relationships are meant to be weaker in general and also unbiased setting and also efficiency analysis is still done by the solid line supervisor. This implies that novices might shed clearness regarding their respective roles and also goals specifically as populated line reporting does not keep them in direct communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had actually been hypothesized that the latter would certainly take Krasnow's position came as a blow to her spirits. Lewis might have been qualified as well as suitable for the work but the reality that Kransnow's separation would certainly make Coles a straight report to Lewis may have been the reason for Coles' resignation from services.

Concern & Work Instability: Anxiety and instability can be recognized as 2 major issues that Lewis would certainly be managing especially as the merger has currently be cancelled and also two elderly executives of the marketing division would certainly be leaving. The whole responsibility of the division would certainly be falling on Lewis's shoulders that would certainly not just supervise of brining regarding a cultural modification yet would certainly also have to verify herself in her brand-new function.

Incompatible Management Style of Leader: Lewis's management style and also its conflict with the advertising department's role can additionally be seen as an OB difficulty particularly as she has actually been made use of to taking care of issues in the operations division where personnel are shown to concentrate on processes as well as get them. The marketing division on the other hand can be viewed as a group of people that are used to being supported by Krasnow that focused extra on result than procedures.

Interdepartmental Disagreements: Interdepartmental disputes between three divisions, advertising and marketing, merchandizing and operations respectively over the allowance of the advertising and marketing mix can be determined as an additional OB issue. Although the advertising division does not share the same vision as the various other 2 departments relating to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and operations departments do not concur over the advertising and marketing mix allocation among one another either.

Fragmentation in Advertising Department: Disintegration in between the marketing and advertising departments can be recognized as one more OB problem which might need additional attention. The reality that the marketing and advertising sections in the advertising department are separated is avoiding both departments from gaining from each various other's experience and also experience. Combination of marketing with retailing as well as procedures would become more difficult if the advertising and marketing department itself is disintegrated which can be another potential OB worry.

Pacific Salmon Co Inc Analysis

Various concepts have actually been made use of to describe the situations to get additional clarity about the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors think that juniors are passive and also careless, have little passion as well as withstand modification. The scenario at Pacific Salmon Co Inc is not entirely adhering to Concept X, it can be seen that new hires are finding this setting instead difficult which may ultimately lead to a greater disposition of the administration in the direction of Concept X. Also while assessing Lewis's management design, theory X might have been ideal in the operations department to some level but the Advertising and marketing department would call for reliance on Theory Y in order to get the creativity and creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's worry about bringing harmony in between the advertising and marketing as well as advertising department is worried, this would originally lead to clash as gone over by Bruce Tuckman in his 'Team effort Concept'. By combining the marketing as well as advertising and marketing department's work, there might be the same first disconnect which can lead to the 2nd stage of 'storming' where the teams test one another.

Bridges' Shift Model: As per William Bridge's theory (appendix 4), people are rather uncomfortable with modification, which is apparent by the situation at Pacific Salmon Co Inc The scenario can be seen as a typical training course of life if is researched according to Bridge's concept where he explains that people experience three phases of transition when they experience change. 'End, losing and also Letting go', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When individuals exist with change, they go into stage one and so there may be feelings like sadness, uncertainty, disappointment, anger, fear, denial as well as disorientation.The scenario at the marketing division of Pacific Salmon Co Inc is comparable so Lewis can get comfy with the idea that it is not phenomenal habits. In the 2nd stage, there might be a requirement to connect the void in between the brand-new as well as old society so Lewis might have to face this experience when Krasnow leaves. There may be reduced morale as well as low efficiency at this stage which should not be taken as a setback. It is throughout this phase that Lewis will certainly need to provide guidance to the division to make sure that they can find a sense of direction. It can be seen just how Krasnow has already made this transition easier by making Lewis get involved in the department a year prior to his actual departure. Based on Bridges' Model, phase 3 will certainly produce visibility to knowing, High power and also dedication as people will certainly embrace the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Demand hierarchy: The OB concern pertaining to insecurity at the work environment has been triggered first of all by the change in management and also secondly by the reality that the merger will certainly no longer be initiated. Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has goes over the relevance of 'safety and security needs as being a lower degree need of a human for triggering inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the requirement to really feel protected and also safe' is at the 2nd level of requirements. Prior to a worker can be made to establish emotionally, he needs to have his 'Physical 'as well as 'Safety and security' requires satisfied. This suggests that unless the workers are made to really feel protected concerning their current work status in Pacific Salmon Co Inc they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Pacific Salmon Co Inc Case Study

Effects of Analysis.

The OB analysis has considered numerous theories to understand just how to manage the existing situation available. The adhering to three choices have actually been proposed to aid Lewis deal with the business difficulties in the advertising department. Each of these choices has been recommended for alleviating the transition needed to bring the advertising division in line with the requirements of the marketplace and also for making the social adjustment that would comply with as soon as the existing leader leaves.

Combination of advertising and marketing features. Separating Adverting and also Manufacturing functions. Combination of Advertising with Operations.

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merger days has know-how in business-to-business advertising and marketing along with firm as well as retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing and also marketing features.

The advantage of this approach is that it will integrate the two features while reducing the requirement for employing an added source for advertising and marketing. Lewis would be heading the advertising and marketing division as well as in any kind of case her replacement would be needed for the current function that she is carrying out. The negative aspect of this alternative is that outside hiring may produce animosity from interior workers that might be eying the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting as well as Manufacturing: Offered the competitive stress as well as high quality work called for from the advertising and marketing company, it is suggested that Lewis must permit the production device to be a separate feature from the marketing device. Because a lot of advertising agencies had these 2 functions as different devices, it makes even more feeling to adhere to the norm.

Assimilation of Advertising And Marketing with Workflows: Since Lewis is currently taking treatment of the advertising and marketing as well as procedures divisions all at once; it makes sense to integrate the two functions considering that she has been efficiently taking care of both ends. The fact that Lewis has to adjust her administration design for the advertising department suggests that these 2 divisions would certainly be culturally diverse.


An evaluation of the 3 choices indicates that combination of advertising and procedures would not be a feasible move due to the large distinctions in between the two departments regardless of the truth that currently Lewis is taking care of both. While separation of the manufacturing function might have been a desirable step for the advertising and marketing department, the truth that it would certainly mean placing a third feature under Lewis's wing means this must be stayed clear of.

Action Plan.
Lewis will take control of the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

Manufacturing feature will remain component of advertising under advertising function.

Lewis will certainly divide herself from operations.

An autonomous management design with staff member empowerment will certainly be utilized in advertising and marketing division.

Open up door policy as well as focus on cross departmental interaction will be aimed at removing discord.

Contingency strategy.

If the assimilation does not exercise as planned, a backup plan would follow which would certainly separate the production feature from the advertising and marketing function to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising division without an SVP. Because case the production function will certainly be separated by placing it under an SVP production.