Premier Furniture Co Case Study Solution


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Premier Furniture Co Case Study Solution

Background and Facts

Premier Furniture Co a workplace materials merchant for small and moderate sized services has actually lately been involved in preparing for a merger with its rival House Deport, which has impacted performance levels in departmentswith the senior manager involved in legal complications presented by the federal Profession Compensation. With the Advertising and marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the near future. With obstacles in the kind of a possible cultural modification as well as reduced staff member spirits, the company is in need of a full reengineering initiative at the advertising department.

Trouble Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the marketing division of Premier Furniture Co is increasing uncertainty in the workplace resulting in various obstacles 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 role in impacting strategic decisions considering that Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Profession Commission's treatment at the same time. Given the reality that the shop has a global existence with branches in UK, USA, Canada as well as Germany, political consider each of these countries may have the ability to affect efficiency or strategic goals. Federal Profession Commission's antitrust match versus the merging took up useful time of the organization's elderly administration recommending that 'political' factors can have significant effects for a global service.

Economic Factors: Financial factors such as the appearance of local business in the global situation suggest that Premier Furniture Co is growing in an environment where there is possible development of companies. Truth that shop clients are mostly looking for workplace materials for home workplaces recommends that the market has a rising pattern of entrepreneurs as well as house based organisations.

Social factors: Social trends in the economic situation reveal that consumers are looking for benefit in addition to attractive costs. Market research demonstrates how the client for Premier Furniture Co lacks recognition regarding discovering solutions which can use a combination of comfort and low costs.

Technical factors: Modern technology plays a vital function in Premier Furniture Co's company technique especially as the organization is piloting Technology centers which would certainly provide innovation sales and also assistance in the type of memory upgrades, peripheral setups. (Summary of PEST in appendix 2).

OB Issues and also Effects.

Several underlying Business Habits problems can be seen in Premier Furniture Co's case as highlighted in this section.

Apprehensions regarding social modification: There is apprehension regarding a social modification that would occur as soon as Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with a lot of the personnel already showing unhappiness over this prospective relocation. This predicted modification has produced stress in the workplace which has actually been paired with the past stress of preparing the firm for a prospective merging with Residence Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is scarcity of personnel that can match the difficult atmosphere of a hectic company. Not just does this lead to problem in discovering the ideal individuals, it puts tension on new hires as can not withstand the rate and also stress that the organization anticipates them to bear.

Double Coverage Lines: Novices find this business culture difficult and tough to deal with especially as populated line partnerships are implied to be weak generally and unbiased setup as well as performance examination is still done by the solid line manager. This suggests that novices can lose clarity concerning their corresponding roles and objectives especially as populated line reporting does not keep them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had been speculated that the latter would take Krasnow's placement came as a strike to her spirits. Lewis may have been qualified and proper for the task but the reality that Kransnow's separation would make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.

Worry & Work Instability: Anxiety and also instability can be recognized as 2 significant issues that Lewis would certainly be managing especially as the merging has actually currently be terminated and also two elderly executives of the advertising department would certainly be leaving. The whole responsibility of the division would certainly be dropping on Lewis's shoulders who would certainly not simply supervise of brining concerning a cultural modification however would also need to show herself in her brand-new duty.

Inappropriate Management Design of Leader: Lewis's management design and its conflict with the advertising and marketing division's role can likewise be seen as an OB difficulty specifically as she has actually been used to managing issues in the operations department where workers are shown to focus on procedures and obtain them. The advertising and marketing department on the other hand can be seen as a group of individuals that are made use of to being supported by Krasnow that concentrated a lot more on result than processes.

Interdepartmental Disputes: Interdepartmental disagreements between 3 departments, marketing, merchandizing and procedures respectively over the allotment of the advertising and marketing mix can be recognized as another OB worry. Although the marketing department does not share the exact same vision as the various other two divisions regarding the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing as well as procedures departments do not agree over the advertising mix appropriation among one another either.

Fragmentation in Marketing Division: Disintegration in between the advertising and marketing departments can be identified as an additional OB issue which can require additional focus. The reality that the advertising and marketing sections in the advertising division are detached is preventing both divisions from acquiring from each various other's experience as well as knowledge. Integration of advertising and marketing with retailing and also operations would become harder if the advertising department itself is broken down which can be another possible OB worry.

Premier Furniture Co Analysis

Numerous theories have been used to discuss the conditions to get further clarity about the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers think that staffs are easy and also careless, have little aspiration and also withstand adjustment. The tough variation of this theory highlighted coercion, tight controls, hazards as well as punishments. Gradually it creates low performance, subtle sabotage and also competition (Bargain, 2003). Although the scenario at Premier Furniture Co is not totally following Concept X, it can be seen that new hires are locating this atmosphere rather demanding which might ultimately cause a greater inclination of the administration in the direction of Concept X. Based on McGregor's advocated sight, which he called Theory Y, the important task of the administration is to arrange business conditions to ensure that people can attain their own goals best by guiding their initiatives in the direction of business benefits. If people locate no contentment in their work, the administration would have little selection however to depend on concept X and outside control (Bargain, 2003). Also while analyzing Lewis's monitoring design, concept X may have been suitable in the operations department to some extent yet the Marketing department would call for reliance on Theory Y so as to get the creativity and creativity from the teams.

Tuckman's Teamwork Concept: Regarding Lewis's concern regarding bringing consistency between the marketing and advertising department is worried, this would originally lead to conflict as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, during the preliminary phase of team advancement, individuals might not bond, as they are busy finding their place in the group. By incorporating the advertising and marketing division's job, there might coincide preliminary detach which might lead to the second stage of 'storming' where the groups test one another. It is only during the third stage or 'norming' when they would certainly come with each other to share concepts prior to the group can bring about synergy in the fourth phase 'carrying out'.

When individuals are provided with change, they go into stage one and also so there may be feelings like unhappiness, uncertainty, stress, rage, concern, rejection and also disorientation.The situation at the advertising division of Premier Furniture Co is comparable so Lewis can obtain comfortable with the suggestion that it is not extraordinary behavior. It is during this stage that Lewis will certainly have to give advice to the department so that they can discover a sense of instructions. It can be seen just how Krasnow has actually already made this shift less complicated by making Lewis get entailed in the department a year prior to his real departure.
Vrio Analysis
Maslow's Need power structure: The OB issue related to instability at the work environment has been triggered to start with by the change in monitoring as well as second of all by the truth that the merger will certainly no longer be initiated. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has discusses the value of 'safety requires as being a reduced degree need of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the demand to feel protected as well as out of danger' is at the 2nd degree of needs. Before a staff member can be made to create mentally, he needs to have his 'Physiological 'and also 'Safety' needs fulfilled. This shows that unless the personnel are made to really feel safe concerning their existing employment condition in Premier Furniture Co they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Premier Furniture Co Case Study

Effects of Analysis.

The OB analysis has taken a look at different concepts to recognize how to cope with the present situation at hand. The adhering to 3 choices have actually been proposed to aid Lewis handle the organizational difficulties in the advertising and marketing division. Each of these alternatives has been recommended for easing the shift required to bring the advertising and marketing division according to the needs of the marketplace as well as for making the social change that would certainly comply with when the current leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting and Production features. Combination of Marketing with Workflow.

Examination of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merging days has experience in business-to-business advertising along with firm as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to handle both advertising and advertising functions.

The benefit of this strategy is that it will incorporate the two features while minimizing the need for hiring an added source for advertising. In addition to this, Lewis would certainly be heading the advertising and marketing division and also all the same her substitute would certainly be required for the existing role that she is executing. The disadvantage of this alternative is that external hiring might bring about animosity from interior workers who might be eying the position of EVP after Lewis takes over Krasnow's placement.

Separating Adverting as well as Production: Offered the affordable stress as well as excellent quality job called for from the advertising agency, it is suggested that Lewis ought to permit the production unit to be a separate function from the advertising unit. Because many ad agency had these two features as different units, it makes more sense to follow the norm. Both functions may be able to concentrate on their core triggers more effectively. Nevertheless, the negative aspect of this strategy would certainly be that added expenses would need to be borne for setting up separate manufacturing features. In addition to this, a manufacturing head may need to be hired which could boost overheads for the company.

Integration of Advertising with Procedures: Since Lewis is already dealing with the advertising and marketing and operations divisions all at once; it makes sense to integrate the two features considering that she has been successfully looking after both ends. The fact that the two divisions already have major distinctions over allowance of sources suggests that this integration might have the ability to produce consistency especially as Lewis would certainly be heading both ends.However there are numerous negative aspects of this relocation particularly as it would certainly put way too much problem over Lewis's shoulders. The reality that Lewis has to adjust her management design for the advertising department recommends that these 2 divisions would be culturally diverse. Lewis may not be able to apply one kind of leadership design to both divisions which might result in ineffectiveness in either one of the two functions.


An assessment of the three alternatives indicates that integration of advertising and marketing as well as operations would not be a viable action as a result of the substantial differences in between both departments although that currently Lewis is dealing with both. While splitting up of the manufacturing function may have been a positive relocation for the advertising and marketing department, the truth that it would indicate placing a third feature under Lewis's wing suggests this must be avoided. The combination of the advertising department is the best alternative in terms of getting the optimal arise from the department. An activity plan for this alternative is gone over listed below.

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

Advertising and Marketing functions would certainly be combined.

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

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

Lewis will divide herself from procedures.

A democratic management style with worker empowerment will certainly be made use of in advertising department.

Open door policy and focus on cross departmental interaction will certainly be focused on eliminating dissonance.

Contingency strategy.

If the combination does not work out as prepared, a contingency plan would certainly adhere to which would separate the manufacturing feature from the advertising feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising division without an SVP. In that case the production function will absolutely be divided by placing it under an SVP production.