Menu

Polar Sports Inc Case Study Help

CASE STUDY

Home >> Harvard >> Polar Sports Inc >>

Polar Sports Inc Case Study Solution

Background and Facts

Polar Sports Inc a workplace products merchant for small and also medium sized companies has actually lately been associated with planning for a merging with its rival House Deport, which has actually impacted efficiency levels in departmentswith the senior supervisor associated with legal complications put forth by the government Profession Compensation. With the Advertising Head advancing the news of his separation from the business in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the future. With challenges in the kind of a prospective cultural modification and reduced worker morale, the company wants a total reengineering effort at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The possible social change at the advertising department of Polar Sports Inc is boosting uncertainty in the working environment bring about numerous 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 significant role in impacting critical choices because Stapes Inc. needed to desert its strategies of combining with Office Deport after the Federal Profession Compensation's intervention at the same time. Offered the reality that the shop has a global existence with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries might have the ability to influence performance or strategic objectives. Federal Trade Payment's antitrust match against the merger took up beneficial time of the organization's elderly monitoring suggesting that 'political' factors can have severe implications for a global service.

Economic Factors: Economic factors such as the appearance of small businesses in the international scenario suggest that Polar Sports Inc is thriving in an atmosphere where there is possible growth of companies. In addition to this, fact that shop clients are mainly looking for workplace supplies for home offices suggests that the market has a climbing trend of business owners and also home based services.

Social factors: Social patterns in the economic situation reveal that customers are searching for ease as well as appealing rates. Market research shows how the customer for Polar Sports Inc does not have understanding about locating solutions which can use a combination of benefit as well as inexpensive.

Technological factors: Modern technology plays an important duty in Polar Sports Inc's business technique especially as the company is piloting Innovation facilities which would certainly provide technology sales and also assistance in the form of memory upgrades, peripheral setups. (Summary of BUG in appendix 2).

OB Issues and also Manifestations.

A number of underlying Organizational Actions problems can be seen in Polar Sports Inc's case as highlighted in this area.

Apprehensions concerning cultural modification: There is uneasiness about a social modification that would occur when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising And Marketing with most of the personnel already revealing unhappiness over this possible relocation. This expected modification has developed anxiety in the office which has been coupled with the previous anxiety of preparing the firm for a possible merging with Home Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is shortage of workers that can match the difficult environment of a busy organization. Not just does this lead to problem in discovering the best individuals, it places stress on brand-new hires as can not hold up against the pace as well as pressure that the organization anticipates them to birth.

Double Coverage Lines: Beginners discover this business society difficult as well as hard to cope with specifically as dotted line relationships are indicated to be weaker as a whole as well as objective setting as well as performance analysis is still done by the strong line supervisor. This implies that newbies could lose quality concerning their particular roles as well as purposes specifically as dotted line coverage does not keep them in direct interaction with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles even though it had been speculated that the latter would certainly take Krasnow's setting came as a blow to her morale. Lewis may have been capable and appropriate for the work however the reality that Kransnow's departure would certainly make Coles a straight record to Lewis may have been the reason for Coles' resignation from services.

Worry & Task Instability: Concern and instability can be recognized as 2 significant worries that Lewis would certainly be managing particularly as the merging has actually now be terminated and also 2 elderly executives of the marketing division would certainly be leaving. The entire duty of the department would certainly be falling on Lewis's shoulders that would not simply supervise of brining regarding a social modification but would also need to confirm herself in her new role.

Incompatible Administration Design of Leader: Lewis's administration design and also its incompatibility with the advertising and marketing division's duty can likewise be seen as an OB obstacle particularly as she has actually been utilized to dealing with concerns in the operations division where personnel are shown to focus on processes as well as get them right. The marketing division on the various other hand can be seen as a team of people who are utilized to being nurtured by Krasnow that focused much more on outcome than processes.

Interdepartmental Disagreements: Interdepartmental disputes in between three departments, marketing, merchandizing and also procedures respectively over the allowance of the marketing mix can be identified as an additional OB issue. Although the advertising division does not share the very same vision as the various other two divisions regarding the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing as well as procedures divisions do not agree over the marketing mix appropriation among one another either.

Disintegration in Advertising And Marketing Department: Disintegration between the marketing and advertising departments can be recognized as one more OB issue which could require additional interest. The fact that the marketing and advertising sections in the advertising and marketing department are detached is preventing both departments from obtaining from each various other's experience as well as know-how. Integration of marketing with retailing as well as operations would certainly come to be more difficult if the advertising division itself is degenerated which can be another prospective OB worry.

Polar Sports Inc Analysis

Different concepts have been made use of to describe the conditions to obtain further clarity about the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that staffs are passive and lazy, have little aspiration and resist change. The scenario at Polar Sports Inc is not entirely following Concept X, it can be seen that brand-new hires are finding this setting instead demanding which might at some point lead to a greater inclination of the monitoring in the direction of Concept X. Even while assessing Lewis's management style, concept X may have been suitable in the procedures division to some level however the Advertising and marketing division would require dependence on Theory Y in order to get the imagination and creativity from the groups.

Tuckman's Teamwork Concept: Regarding Lewis's worry about bringing consistency in between the advertising and marketing department is worried, this would at first result in contrast as reviewed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, during the first stage of group advancement, individuals may not bond, as they are hectic discovering their area in the team. By integrating the advertising and marketing division's job, there may be the same preliminary disconnect which could cause the second phase of 'storming' where the teams test one another. It is only during the third phase or 'norming' when they would certainly come together to share ideas before the team can bring around harmony in the 4th phase 'performing'.

Bridges' Shift Design: According To William Bridge's theory (appendix 4), people are quite awkward with adjustment, which is apparent by the situation at Polar Sports Inc The circumstance can be viewed as a regular training course of life if is examined as per Bridge's concept where he describes that individuals go through 3 phases of transition when they experience modification. 'Closing, losing as well as Releasing', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When people are presented with change, they go into phase one therefore there might be emotions like unhappiness, unpredictability, irritation, anger, anxiety, denial as well as disorientation.The scenario at the marketing division of Polar Sports Inc is comparable so Lewis can get comfy with the suggestion that it is not amazing behavior. In the second phase, there might be a need to bridge the void between the brand-new and old culture so Lewis may have to encounter this ordeal once Krasnow leaves. There might be low morale and also reduced efficiency at this stage which ought to not be taken as a problem. It is during this stage that Lewis will certainly need to provide support to the department so that they can discover an orientation. It can be seen how Krasnow has actually currently made this shift less complicated by making Lewis get associated with the department a year prior to his actual separation. According to Bridges' Version, stage 3 will bring about visibility to learning, High power and commitment as individuals will certainly accept the modification (Bridges, 2004).
Vrio Analysis
Maslow's Need pecking order: The OB concern pertaining to instability at the work environment has been caused to start with by the adjustment in administration as well as secondly by the reality that the merger will certainly no more be started. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has goes over the importance of 'security needs as being a reduced degree need of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the demand to really feel secure and also out of danger' is at the second degree of needs. Before a staff member can be made to develop mentally, he requires to have his 'Physiological 'and also 'Security' requires fulfilled. This shows that unless the workers are made to really feel safe and secure concerning their present employment status in Polar Sports Inc they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Polar Sports Inc Case Study



Implication of Analysis.

The OB analysis has checked out different concepts to comprehend how to cope with the current situation handy. The following 3 options have actually been suggested to assist Lewis manage the organizational challenges in the advertising department. Each of these options has actually been suggested for reducing the shift needed to bring the advertising and marketing division according to the needs of the market as well as for making the cultural change that would certainly adhere to as soon as the current leader leaves.

Combination of advertising and marketing functions. Dividing Adverting as well as Production functions. Integration of Advertising with Workflow.

Analysis of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis during the earlier merging days has competence in business-to-business marketing along with company and also retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to manage both marketing as well as advertising and marketing functions.

The advantage of this method is that it will certainly integrate both functions while reducing the need for working with an added source for advertising. Lewis would certainly be heading the advertising division and also in any case her replacement would certainly be required for the present duty that she is performing. The downside of this alternative is that exterior hiring may produce bitterness from internal personnel who may be eying the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting as well as Production: Offered the affordable stress and also excellent quality job needed from the advertising agency, it is recommended that Lewis needs to allow the manufacturing unit to be a separate function from the advertising unit. Given that a lot of ad agency had these 2 functions as separate units, it makes even more sense to adhere to the standard. In addition to this, both features may have the ability to concentrate on their core activates extra effectively. The downside of this method would certainly be that additional expenses would certainly have to be birthed for setting up different manufacturing functions. Along with this, a manufacturing head might have to be worked with which can boost overheads for the company.

Combination of Advertising with Procedures: Since Lewis is currently taking care of the advertising and marketing and also operations divisions concurrently; it makes good sense to integrate both features considering that she has been effectively caring for both ends. The truth that both departments currently have major differences over allowance of sources recommends that this combination may have the ability to bring about harmony especially as Lewis would certainly be heading both ends.However there are various disadvantages of this action especially as it would put excessive burden over Lewis's shoulders. The truth that Lewis needs to adapt her management design for the advertising and marketing division suggests that these two divisions would be culturally diverse. Lewis may not be able to use one kind of leadership style to both divisions which can result in inadequacy in either one of the 2 functions.

Referral.



An examination of the 3 options shows that combination of marketing and also procedures would certainly not be a viable action due to the huge distinctions between the two divisions in spite of the fact that presently Lewis is taking care of both. While separation of the manufacturing feature may have been a positive step for the advertising division, the reality that it would certainly imply putting a 3rd feature under Lewis's wing suggests this should be stayed clear of.

Action Plan.
Recommendation
Lewis will certainly take control of the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

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

Manufacturing function will stay part of advertising under marketing function.

Lewis will separate herself from operations.

A democratic management design with staff member empowerment will be used in advertising and marketing division.

Open up door policy as well as emphasis on cross departmental communication will be focused on getting rid of discord.

Contingency strategy.

If the assimilation does not exercise as intended, a backup plan would adhere to which would separate the production feature from the advertising feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the manufacturing function will certainly be divided by positioning it under an SVP manufacturing.