Robert Mondavi Corp Caliterra A Case Study Solution


Home >> Harvard >> Robert Mondavi Corp Caliterra A >>

Robert Mondavi Corp Caliterra A Case Study Solution

Background and Facts

Robert Mondavi Corp Caliterra A an office supplies merchant for little and moderate sized businesses has recently been involved in preparing for a merging with its competitor Residence Deport, which has actually influenced effectiveness degrees in departmentswith the elderly supervisor involved in lawful issues presented by the federal Profession Commission. With the Advertising Head advancing the news of his departure from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the future. With challenges in the form of a potential social change and also reduced employee morale, the company wants a total reengineering effort at the advertising division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural change at the advertising division of Robert Mondavi Corp Caliterra A is enhancing unpredictability in the working environment leading to various obstacles for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing critical choices since Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Trade Compensation's intervention at the same time. Given the fact that the store has a global existence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these nations might have the ability to affect efficiency or tactical objectives. Federal Trade Compensation's antitrust match versus the merger occupied important time of the organization's senior management suggesting that 'political' factors can have serious effects for a global company.

Economic Factors: Economic factors such as the introduction of small businesses in the worldwide situation suggest that Robert Mondavi Corp Caliterra A is prospering in an environment where there is prospective development of businesses. Along with this, reality that shop customers are mainly trying to find office products for office suggests that the market has an increasing trend of business owners as well as online services.

Social factors: Social patterns in the economic climate reveal that clients are seeking convenience in addition to attractive prices. Marketing research shows how the client for Robert Mondavi Corp Caliterra A lacks awareness regarding locating services which can provide a mix of convenience and also inexpensive.

Technical factors: Innovation plays an important duty in Robert Mondavi Corp Caliterra A's organisation approach particularly as the organization is piloting Modern technology centers which would certainly supply innovation sales and also assistance in the form of memory upgrades, peripheral setups. (Recap of PARASITE in appendix 2).

OB Issues as well as Symptoms.

Numerous underlying Business Behavior concerns can be seen in Robert Mondavi Corp Caliterra A's case as highlighted in this area.

Apprehensions concerning social change: There is concern concerning a social change that would certainly occur once Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with the majority of the team member already revealing discontent over this potential step. This anticipated change has developed anxiety in the workplace which has been combined with the previous anxiety of preparing the company for a possible merging with House Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is shortage of workers that can match the stressful environment of a fast-paced organization. Not only does this lead to difficulty in discovering the ideal individuals, it puts stress and anxiety on brand-new hires as can not hold up against the speed as well as pressure that the organization anticipates them to bear.

Double Reporting Lines: Newbies find this business culture troublesome and also tough to manage especially as dotted line partnerships are indicated to be weaker as a whole and unbiased setting and also performance examination is still done by the strong line manager. This indicates that novices can lose clearness regarding their particular functions as well as purposes particularly as dotted line coverage does not keep them in direct interaction with the solid 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 hypothesized that the latter would take Krasnow's setting came as an impact to her spirits. Lewis may have been qualified and appropriate for the job yet the fact that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Job Insecurity: Concern and instability can be recognized as two significant worries that Lewis would certainly be taking care of specifically as the merger has actually currently be terminated as well as two elderly executives of the marketing division would certainly be leaving. The entire duty of the department would be falling on Lewis's shoulders that would not simply be in charge of brining concerning a social change however would also have to prove herself in her brand-new function.

Inappropriate Administration Style of Leader: Lewis's monitoring design and also its conflict with the marketing division's duty can also be seen as an OB challenge especially as she has actually been used to taking care of issues in the procedures division where personnel are instructed to focus on procedures and get them right. The marketing department on the various other hand can be viewed as a group of people that are made use of to being supported by Krasnow that concentrated more on output than procedures.

Interdepartmental Differences: Interdepartmental arguments in between 3 departments, marketing, merchandizing as well as procedures specifically over the allocation of the marketing mix can be identified as an additional OB concern. Although the marketing department does not share the very same vision as the various other two departments pertaining to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing as well as operations departments do not agree over the advertising mix allocation among one another either.

Disintegration in Advertising Division: Disintegration in between the marketing and advertising departments can be recognized as another OB concern which might require further attention. The fact that the marketing and advertising areas in the marketing division are disconnected is protecting against both divisions from obtaining from each various other's experience as well as know-how. Integration of advertising with retailing and also operations would end up being more difficult if the marketing division itself is disintegrated which can be one more prospective OB problem.

Robert Mondavi Corp Caliterra A Analysis

Various theories have actually been utilized to discuss the conditions to get more clarity about the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of managers think that juniors are easy as well as careless, have little passion and stand up to adjustment. The hard version of this concept emphasized threat, tight controls, threats and also punishments. Over time it generates low efficiency, subtle sabotage and competition (Bargain, 2003). Although the situation at Robert Mondavi Corp Caliterra A is not completely adhering to Theory X, it can be seen that brand-new hires are locating this atmosphere instead demanding which might at some point cause a greater inclination of the monitoring in the direction of Theory X. Based on McGregor's advocated sight, which he called Theory Y, the essential task of the administration is to set up organizational conditions to ensure that people can attain their very own goals best by guiding their initiatives towards business rewards. If people find no complete satisfaction in their job, the management would certainly have little choice yet to count on theory X and external control (Deal, 2003). Even while analyzing Lewis's monitoring design, concept X might have appropriated in the operations division to some extent however the Advertising division would certainly require reliance on Theory Y in order to get the creativity and also creativity from the teams.

Tuckman's Teamwork Concept: As far as Lewis's worry about bringing consistency between the advertising and marketing division is worried, this would originally result in clash as gone over by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, throughout the initial stage of team development, individuals might not bond, as they are active locating their location in the team. By combining the marketing and advertising department's job, there may be the same initial separate which might cause the 2nd stage of 'storming' where the teams test each other. Nevertheless, it is just throughout the 3rd phase or 'norming' when they would certainly come together to share ideas before the team can bring about synergy in the 4th phase 'carrying out'.

Bridges' Transition Version: Based On William Bridge's concept (appendix 4), individuals are fairly uncomfortable with modification, which is noticeable by the situation at Robert Mondavi Corp Caliterra A The circumstance can be seen as a regular program of life if is studied as per Bridge's concept where he explains that people experience 3 stages of transition when they experience change. 'Ending, losing and also Letting go', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When people are presented with adjustment, they get in stage one and so there might be emotions like sadness, unpredictability, irritation, anger, concern, denial and disorientation.The circumstance at the marketing division of Robert Mondavi Corp Caliterra A is comparable so Lewis can get comfy with the idea that it is not extraordinary habits. In the second phase, there may be a requirement to bridge the space in between the brand-new and old society so Lewis may have to face this ordeal when Krasnow leaves. There might be low morale and also reduced performance at this stage which must not be taken as an obstacle. It is throughout this stage that Lewis will have to give assistance to the department so that they can find an orientation. It can be seen exactly how Krasnow has currently made this change easier by making Lewis get involved in the division a year prior to his actual separation. Based on Bridges' Model, phase 3 will bring about visibility to knowing, High energy and also dedication as individuals will accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has goes over the significance of 'safety and security needs as being a lower level demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel secure and also out of threat' is at the second degree of requirements. Before a staff member can be made to develop psychologically, he needs to have his 'Physical 'and also 'Safety' requires fulfilled.

SWOT Analysis for Robert Mondavi Corp Caliterra A Case Study

Ramification of Analysis.

The OB analysis has actually considered numerous concepts to recognize just how to manage the present circumstance at hand. The adhering to three choices have actually been recommended to assist Lewis deal with the organizational obstacles in the advertising department. Each of these alternatives has actually been suggested for reducing the shift required to bring the marketing department in accordance with the demands of the market and for making the cultural change that would comply with once the present leader leaves.

Integration of marketing and advertising features. Separating Adverting as well as Manufacturing functions. Assimilation of Advertising And Marketing with Operations.

Evaluation of Alternatives.

Integration of Advertising And Marketing & Marketing Functions: The internal marketing company of Robert Mondavi Corp Caliterra A is currently stamina for the company in terms of conserving up on expenses connected to advertising and also promo. Since no brand-new recruitment has been done after Bridget Cole's departure with the coverage line being straight appointed to Krasnow for the advertising function, this is a favorable possibility for integrating the marketing and advertising functions. Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merger days has proficiency in business-to-business advertising and marketing along with agency as well as retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to handle both marketing and advertising functions.

The advantage of this technique is that it will certainly integrate the two functions while lowering the requirement for employing an additional resource for advertising. In addition to this, Lewis would certainly be heading the marketing department as well as in any case her substitute would be required for the present function that she is executing. The drawback of this option is that outside hiring may bring about bitterness from internal employees that might be looking at the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Production: Offered the affordable pressures as well as top quality work called for from the advertising agency, it is recommended that Lewis ought to permit the manufacturing device to be a different feature from the advertising and marketing unit. Considering that a lot of ad agency had these two functions as different systems, it makes more sense to comply with the norm. Both functions might be able to focus on their core turns on extra effectively. Nonetheless, the downside of this strategy would certainly be that extra costs would need to be birthed for setting up separate manufacturing functions. A manufacturing head might have to be worked with which can raise overheads for the organization.

Integration of Advertising And Marketing with Procedures: Because Lewis is already looking after the advertising and marketing and operations departments at the same time; it makes good sense to incorporate the two features since she has been effectively taking care of both ends. The fact that the two departments already have significant distinctions over appropriation of sources suggests that this combination may have the ability to produce consistency specifically as Lewis would be heading both ends.However there are numerous disadvantages of this step particularly as it would place excessive concern over Lewis's shoulders. The truth that Lewis needs to adjust her monitoring style for the advertising division suggests that these 2 divisions would be culturally varied. Lewis may not be able to use one type of leadership style to both departments which could result in ineffectiveness in either one of the 2 features.


An analysis of the 3 options suggests that integration of advertising and marketing as well as procedures would certainly not be a possible action as a result of the substantial distinctions between the two departments despite the fact that currently Lewis is dealing with both. While separation of the manufacturing feature might have been a positive step for the marketing division, the reality that it would imply positioning a third feature under Lewis's wing indicates this should be prevented. The combination of the marketing department is the best option in terms of getting the optimal results from the division. An activity plan for this option is gone over below.

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

Advertising and Marketing features would be combined.

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

Manufacturing function will stay component of advertising under marketing feature.

Lewis will separate herself from procedures.

A democratic leadership style with staff member empowerment will be utilized in marketing department.

Open up door policy and also emphasis on cross departmental communication will certainly be aimed at eliminating disharmony.

Contingency strategy.

If the integration does not exercise as planned, a contingency strategy would certainly comply with which would divide the manufacturing function from the marketing function to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the marketing division without an SVP. In that case the production feature will certainly be divided by putting it under an SVP manufacturing.