Safeway Incs Leveraged Buyout B Case Study Analysis


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Safeway Incs Leveraged Buyout B Case Study Help

Background and Facts

Safeway Incs Leveraged Buyout B an office materials merchant for little and medium sized services has just recently been involved in preparing for a merging with its competitor Residence Deport, which has influenced efficiency levels in departmentswith the elderly supervisor involved in legal complications presented by the government Profession Commission. With the Advertising and marketing Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the near future. With challenges in the kind of a prospective cultural adjustment as well as reduced employee spirits, the organization is in need of a total reengineering effort at the advertising and marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The potential social modification at the marketing division of Safeway Incs Leveraged Buyout B is boosting uncertainty in the workplace causing various challenges for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting critical decisions since Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Trade Payment's intervention in the process. Provided the reality that the store has a global presence with branches in UK, U.S.A., Canada and Germany, political consider each of these countries might have the ability to influence performance or calculated goals. Federal Profession Commission's antitrust match versus the merging took up valuable time of the company's elderly monitoring recommending that 'political' factors can have severe ramifications for an international company.

Economic Factors: Economic factors such as the development of local business in the global circumstance recommend that Safeway Incs Leveraged Buyout B is prospering in an atmosphere where there is prospective development of organisations. Truth that shop consumers are mostly looking for office supplies for home workplaces suggests that the market has a climbing trend of business owners and home based businesses.

Social factors: Social patterns in the economic climate reveal that consumers are searching for ease along with eye-catching costs. Marketing research demonstrates how the client for Safeway Incs Leveraged Buyout B does not have recognition about discovering remedies which can provide a combination of convenience and inexpensive.

Technological factors: Modern technology plays a vital role in Safeway Incs Leveraged Buyout B's service approach especially as the company is piloting Innovation facilities which would provide technology sales and assistance in the form of memory upgrades, peripheral installations. (Summary of BUG in appendix 2).

OB Issues and also Effects.

Several underlying Business Behavior issues can be seen in Safeway Incs Leveraged Buyout B's case as highlighted in this section.

Apprehensions concerning cultural change: There is worry regarding a cultural change that would happen as soon as Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with the majority of the personnel currently revealing unhappiness over this potential relocation. This predicted modification has developed tension in the work environment which has actually been paired with the previous stress of preparing the firm for a potential merging with Home Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is lack of workers that can match the demanding environment of a fast-paced company. Not just does this bring about problem in locating the ideal people, it places stress and anxiety on new hires as can not stand up to the speed as well as stress that the company anticipates them to birth.

Twin Reporting Lines: Newcomers find this business society troublesome and tough to deal with specifically as dotted line connections are indicated to be weaker in general and objective setup as well as efficiency examination is still done by the solid line supervisor. This suggests that newbies might lose clarity about their particular duties and also purposes particularly as dotted line coverage does not keep them in direct communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles even though it had been guessed that the latter would take Krasnow's setting came as a strike to her morale. Lewis might have been capable as well as suitable for the job however the reality that Kransnow's departure would make Coles a straight record to Lewis may have been the reason for Coles' resignation from services.

Fear & Work Instability: Anxiety and insecurity can be identified as 2 significant worries that Lewis would be dealing with specifically as the merging has currently be cancelled as well as 2 senior execs of the marketing department would be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining about a cultural change yet would certainly additionally have to confirm herself in her brand-new function.

Incompatible Monitoring Design of Leader: Lewis's monitoring design and also its incompatibility with the advertising department's duty can additionally be seen as an OB difficulty particularly as she has been used to managing concerns in the operations division where personnel are taught to concentrate on processes as well as obtain them. The advertising department on the various other hand can be seen as a group of people that are utilized to being nurtured by Krasnow that focused a lot more on result than procedures.

Interdepartmental Disputes: Interdepartmental differences between three departments, marketing, merchandizing as well as procedures specifically over the allowance of the marketing mix can be identified as one more OB problem. The marketing department does not share the same vision as the other two departments pertaining to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing as well as procedures departments do not concur over the marketing mix allowance among one another either.

Disintegration in Marketing Department: Fragmentation between the marketing and advertising departments can be identified as an additional OB concern which could require additional attention. The fact that the advertising and marketing areas in the marketing department are disconnected is protecting against both departments from acquiring from each various other's experience and also knowledge. Assimilation of advertising and marketing with retailing as well as procedures would end up being more difficult if the advertising and marketing department itself is broken down which can be an additional possible OB worry.

Safeway Incs Leveraged Buyout B Analysis

Various concepts have been used to explain the conditions to obtain additional clarity regarding the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers think that staffs are easy as well as careless, have little ambition and withstand change. The difficult variation of this theory stressed browbeating, tight controls, risks as well as penalties. Over time it creates low performance, refined sabotage and competition (Bargain, 2003). The scenario at Safeway Incs Leveraged Buyout B is not entirely following Concept X, it can be seen that brand-new hires are locating this atmosphere instead demanding which might ultimately lead to a better disposition of the monitoring in the direction of Theory X. As per McGregor's supported view, which he called Theory Y, the necessary job of the monitoring is to organize business problems to make sure that individuals can accomplish their own goals best by guiding their efforts towards business incentives. If individuals locate no contentment in their work, the management would have little choice yet to rely on theory X as well as outside control (Offer, 2003). Also while examining Lewis's monitoring style, concept X might have been suitable in the procedures division somewhat but the Advertising and marketing department would need reliance on Theory Y to get the creativity and creativity from the teams.

Tuckman's Teamwork Concept: As far as Lewis's problem concerning bringing harmony between the marketing and also marketing division is concerned, this would at first lead to contrast as reviewed by Bruce Tuckman in his 'Team effort Theory'. By combining the advertising as well as advertising and marketing division's work, there might be the exact same first separate which could lead to the second stage of 'storming' where the groups challenge one an additional.

Bridges' Shift Design: Based On William Bridge's theory (appendix 4), individuals are quite unpleasant with modification, which is apparent by the situation at Safeway Incs Leveraged Buyout B The circumstance can be seen as a normal course of life if is researched based on Bridge's concept where he describes that individuals experience 3 phases of transition when they experience modification. 'End, losing and Releasing', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When people exist with adjustment, they get in stage one therefore there might be emotions like sadness, unpredictability, irritation, anger, fear, rejection as well as disorientation.The circumstance at the advertising and marketing division of Safeway Incs Leveraged Buyout B is similar so Lewis can obtain comfy with the concept that it is not remarkable habits. In the 2nd stage, there might be a requirement to connect the void in between the new and old culture so Lewis might have to encounter this ordeal once Krasnow leaves. There may be low morale and reduced performance at this stage which ought to not be taken as a trouble. It is throughout this stage that Lewis will need to give advice to the division to ensure that they can find a sense of direction. It can be seen just how Krasnow has already made this change easier by making Lewis get associated with the department a year before his actual departure. As per Bridges' Design, phase three will produce visibility to discovering, High power and commitment as individuals will welcome the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has talks about the value of 'safety and security needs as being a reduced level need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel protected as well as out of danger' is at the second level of needs. Prior to an employee can be made to develop mentally, he requires to have his 'Physical 'and 'Safety' needs satisfied.

SWOT Analysis for Safeway Incs Leveraged Buyout B Case Study

Ramification of Analysis.

The OB analysis has looked at various concepts to comprehend how to cope with the existing scenario at hand. The adhering to 3 choices have actually been proposed to assist Lewis deal with the organizational difficulties in the advertising and marketing department. Each of these options has actually been suggested for easing the change required to bring the advertising division in line with the demands of the marketplace and also for making the social change that would follow once the existing leader leaves.

Combination of marketing and advertising functions. Dividing Adverting and also Manufacturing features. Combination of Advertising with Procedures.

Examination of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merging days has know-how in business-to-business marketing along with firm and retail advertising experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to take care of both advertising as well as advertising and marketing functions.

The advantage of this technique is that it will certainly integrate both features while decreasing the demand for working with an additional source for advertising. In addition to this, Lewis would certainly be heading the advertising department as well as in any case her replacement would certainly be required for the current role that she is performing. The disadvantage of this choice is that external hiring may bring about resentment from inner personnel who may be looking at the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting as well as Manufacturing: Provided the competitive pressures and high top quality work called for from the advertising and marketing firm, it is suggested that Lewis should permit the manufacturing device to be a different function from the advertising system. Given that a lot of advertising and marketing companies had these two functions as different devices, it makes more sense to follow the standard.

Combination of Advertising And Marketing with Procedures: Given that Lewis is already taking care of the advertising and also procedures departments concurrently; it makes feeling to incorporate the two features considering that she has actually been successfully taking treatment of both ends. The truth that Lewis has to adjust her management style for the advertising and marketing department suggests that these two divisions would certainly be culturally diverse.


An assessment of the three choices shows that assimilation of advertising and also procedures would not be a feasible step due to the vast differences in between the two divisions although that presently Lewis is dealing with both. While splitting up of the manufacturing function may have been a beneficial step for the advertising and marketing department, the truth that it would certainly indicate positioning a 3rd function under Lewis's wing implies this should be avoided. The integration of the marketing division is the most effective alternative in regards to obtaining the optimum results from the department. An activity prepare for this option is talked about listed below.

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

Marketing and advertising features would be combined.

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

Production feature will remain component of advertising under marketing feature.

Lewis will divide herself from procedures.

An autonomous leadership style with staff member empowerment will certainly be made use of in advertising department.

Open door plan and emphasis on cross department communication will be focused on eliminating disharmony.

Contingency plan.

If the integration does not work out as planned, a backup strategy would certainly adhere to which would divide the production function from the advertising and marketing feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the manufacturing feature will certainly be separated by placing it under an SVP manufacturing.