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Red Star Furniture Group Co Ltd Case Study Help

CASE ANALYSIS

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Red Star Furniture Group Co Ltd Case Study Solution

Background and Facts

Red Star Furniture Group Co Ltd a workplace materials retailer for little as well as average sized services has actually lately been involved in planning for a merger with its rival Residence Deport, which has actually affected effectiveness degrees in departmentswith the elderly manager involved in legal issues presented by the government Trade Compensation. With the Marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the current head of operations has actually been asked to take the role in the future. With difficulties in the form of a prospective cultural modification and also reduced employee morale, the company requires a total reengineering effort at the advertising division.

Trouble Declaration
Porter's 5 Forces Analysis
The potential cultural modification at the advertising division of Red Star Furniture Group Co Ltd is boosting uncertainty in the workplace leading to various difficulties for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting calculated decisions since Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Profession Compensation's intervention in the process. Offered the truth that the shop has a global visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries may have the ability to impact efficiency or tactical objectives. Federal Trade Compensation's antitrust fit against the merging took up valuable time of the company's elderly monitoring recommending that 'political' factors can have serious ramifications for a global organisation.

Economic Factors: Financial factors such as the introduction of small companies in the international situation recommend that Red Star Furniture Group Co Ltd is growing in an environment where there is potential development of organisations. In addition to this, reality that store customers are primarily searching for office materials for office suggests that the market has a rising trend of business owners and home based organisations.

Social factors: Social fads in the economic situation show that consumers are looking for comfort as well as eye-catching prices. Marketing research demonstrates how the client for Red Star Furniture Group Co Ltd lacks recognition about finding remedies which can provide a mix of convenience and also affordable.

Technical factors: Innovation plays a vital function in Red Star Furniture Group Co Ltd's business strategy specifically as the organization is piloting Innovation facilities which would certainly provide modern technology sales as well as assistance in the type of memory upgrades, outer setups. (Recap of BUG in appendix 2).

OB Issues and also Manifestations.

Numerous underlying Organizational Habits problems can be seen in Red Star Furniture Group Co Ltd's case as highlighted in this area.

Uneasiness concerning social adjustment: There is worry concerning a social adjustment that would certainly happen once Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with a lot of the employee already showing discontent over this possible step. This predicted modification has created anxiety in the workplace which has actually been coupled with the previous stress and anxiety of preparing the firm for a prospective merger with House Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is shortage of employees that can match the demanding environment of a hectic organization. Not just does this lead to trouble in locating the ideal individuals, it places stress and anxiety on new hires as can not endure the speed and also stress that the company anticipates them to birth.

Double Coverage Lines: Novices locate this organizational culture difficult and tough to handle specifically as dotted line connections are indicated to be weaker generally and unbiased setting and performance assessment is still done by the solid line manager. This means that beginners can shed clarity regarding their particular functions and also purposes especially as populated line reporting does not maintain them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had actually been guessed that the latter would take Krasnow's position came as a strike to her spirits. Lewis may have been capable and proper for the job however the reality that Kransnow's departure would make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Task Instability: Anxiety and instability can be determined as two significant worries that Lewis would certainly be managing especially as the merger has currently be cancelled and 2 elderly executives of the marketing division would be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders who would certainly not simply supervise of brining about a cultural change but would additionally have to prove herself in her new duty.

Inappropriate Administration Design of Leader: Lewis's monitoring style and its conflict with the advertising and marketing department's duty can additionally be viewed as an OB difficulty specifically as she has been utilized to taking care of concerns in the operations division where workers are taught to concentrate on procedures and also get them right. The marketing division on the various other hand can be seen as a group of individuals who are used to being supported by Krasnow who concentrated much more on result than processes.

Interdepartmental Arguments: Interdepartmental disagreements between 3 divisions, advertising and marketing, merchandizing and also operations specifically over the appropriation of the advertising mix can be identified as one more OB problem. Although the advertising department does not share the very same vision as the other 2 divisions regarding the aloocation of the marketing mix twoards promos and advertsing, the merchandizing and procedures departments do not agree over the marketing mix allotment among one another either.

Disintegration in Marketing Division: Fragmentation between the advertising and marketing departments can be recognized as another OB issue which might require more attention. The truth that the marketing and advertising sections in the marketing division are disconnected is stopping both divisions from acquiring from each various other's experience and also expertise. Assimilation of marketing with merchandising and also procedures would end up being more difficult if the marketing division itself is degenerated which can be one more prospective OB problem.

Red Star Furniture Group Co Ltd Analysis

Different concepts have been utilized to describe the situations to get additional clearness about the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors think that subordinates are passive and careless, have little ambition as well as resist modification. The situation at Red Star Furniture Group Co Ltd is not totally adhering to Concept X, it can be seen that brand-new hires are finding this environment instead demanding which may ultimately lead to a greater inclination of the management in the direction of Concept X. Also while analyzing Lewis's administration style, theory X might have been ideal in the operations department to some degree but the Marketing division would certainly call for reliance on Theory Y in order to obtain the imagination and originality from the groups.

Tuckman's Team effort Theory: As far as Lewis's concern regarding bringing consistency between the marketing and advertising department is concerned, this would initially cause clash as discussed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, during the first stage of group development, people might not bond, as they are busy finding their place in the team. By integrating the advertising and marketing division's work, there might coincide first separate which could cause the second phase of 'storming' where the teams test each other. It is only during the 3rd phase or 'norming' when they would certainly come with each other to share ideas before the team can bring about harmony in the fourth phase 'doing'.

Bridges' Shift Version: As per William Bridge's theory (appendix 4), individuals are rather awkward with change, which is obvious by the situation at Red Star Furniture Group Co Ltd The circumstance can be viewed as a normal program of life if is researched based on Bridge's concept where he discusses that individuals undergo three stages of transition when they experience adjustment. 'Ending, shedding as well as Letting go', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people are presented with change, they go into stage one and so there might be emotions like despair, uncertainty, aggravation, anger, concern, denial and also disorientation.The scenario at the advertising and marketing division of Red Star Furniture Group Co Ltd is similar so Lewis can obtain comfy with the idea that it is not phenomenal behavior. In the 2nd stage, there might be a requirement to connect the space between the new and also old culture so Lewis might have to face this experience when Krasnow leaves. There might be low morale and also reduced performance at this stage which need to not be taken as a problem. It is during this stage that Lewis will have to provide advice to the department to make sure that they can discover a sense of direction. It can be seen exactly how Krasnow has currently made this change easier by making Lewis obtain involved in the division a year before his real departure. Based on Bridges' Design, stage three will produce visibility to knowing, High power and dedication as individuals will certainly welcome the change (Bridges, 2004).
Vrio Analysis
Maslow's Need pecking order: The OB problem pertaining to insecurity at the office has actually been triggered firstly by the modification in management and also second of all by the reality that the merger will certainly no longer be launched. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has reviews the significance of 'safety and security requires as being a lower level demand of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to really feel protected as well as unharmed' goes to the second degree of requirements. Prior to a staff member can be made to develop psychologically, he requires to have his 'Physiological 'as well as 'Safety' requires fulfilled. This shows that unless the employees are made to feel secure concerning their present employment standing in Red Star Furniture Group Co Ltd they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Red Star Furniture Group Co Ltd Case Study



Ramification of Analysis.

The OB analysis has checked out different concepts to comprehend just how to handle the present circumstance handy. The complying with three choices have been suggested to help Lewis take care of the business challenges in the advertising department. Each of these options has actually been proposed for alleviating the transition required to bring the advertising department in accordance with the demands of the market and for making the social adjustment that would adhere to once the present leader leaves.

Integration of advertising and marketing functions. Dividing Adverting and also Production functions. Assimilation of Marketing with Operations.

Assessment of Alternatives.

Assimilation of Advertising & Marketing Functions: The in-house marketing company of Red Star Furniture Group Co Ltd is currently stamina for the organization in terms of conserving up on expenses associated with advertising and marketing and also promotion. Considering that no new employment has actually been done after Bridget Cole's departure with the reporting line being directly appointed to Krasnow for the marketing feature, this is a desirable opportunity for incorporating the advertising and marketing features. Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merger days has expertise in business-to-business advertising together with agency and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to take care of both advertising and marketing functions.

The benefit of this strategy is that it will certainly integrate the two features while minimizing the need for working with an added source for advertising and marketing. Along with this, Lewis would be heading the advertising and marketing department as well as all the same her replacement would be needed for the present role that she is performing. The drawback of this option is that external hiring may bring about resentment from interior workers that might be considering the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Manufacturing: Provided the competitive stress and top quality work required from the advertising agency, it is suggested that Lewis must enable the manufacturing device to be a separate function from the advertising system. Since a lot of advertising agencies had these 2 functions as separate units, it makes even more sense to adhere to the standard. Both functions may be able to concentrate on their core triggers extra successfully. The disadvantage of this strategy would certainly be that extra costs would have to be birthed for setting up separate manufacturing features. A manufacturing head might have to be hired which can increase expenses for the company.

Assimilation of Advertising And Marketing with Operations: Considering that Lewis is currently looking after the marketing and operations departments simultaneously; it makes sense to integrate both features because she has been effectively dealing with both ends. The truth that the two departments already have significant distinctions over allotment of sources recommends that this integration might be able to cause consistency specifically as Lewis would be heading both ends.However there are various negative aspects of this relocation especially as it would put excessive worry over Lewis's shoulders. The fact that Lewis needs to adjust her management style for the advertising and marketing division recommends that these 2 departments would be culturally varied. Lewis might not be able to use one type of management design to both departments which might result in inefficiency in either one of the 2 functions.

Suggestion.



An evaluation of the three options indicates that combination of marketing and also operations would not be a possible move because of the vast differences in between both divisions despite the fact that currently Lewis is dealing with both. While separation of the manufacturing feature might have been a positive move for the advertising department, the fact that it would certainly imply placing a third feature under Lewis's wing indicates this ought to be stayed clear of too. The assimilation of the advertising division is the best option in terms of obtaining the optimal arise from the division. An activity plan for this option is discussed listed below.

Activity Strategy.
Recommendation
Lewis will take over the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Production feature will continue to be part of advertising under advertising feature.

Lewis will certainly divide herself from procedures.

A democratic leadership style with worker empowerment will certainly be utilized in advertising division.

Open door plan and also focus on cross department communication will certainly be focused on removing discord.

Backup strategy.

If the integration does not exercise as planned, a backup plan would follow which would certainly separate the production function 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 division without an SVP. Because case the production feature will absolutely be separated by putting it under an SVP manufacturing.