Menu

Sampson Paint Manufacturing Company Case Study Solution

CASE STUDY

Home >> Harvard >> Sampson Paint Manufacturing Company >>

Sampson Paint Manufacturing Company Case Study Solution

Background and Facts

Sampson Paint Manufacturing Company a workplace materials retailer for small and medium sized organisations has actually just recently been associated with planning for a merger with its competitor Home Deport, which has actually affected efficiency degrees in departmentswith the elderly supervisor associated with lawful difficulties put forth by the government Trade Commission. With the Marketing Head advancing the news of his separation from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the future. With challenges in the form of a prospective cultural modification and low worker spirits, the company is in need of a total reengineering effort at the advertising division.

Problem Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising and marketing department of Sampson Paint Manufacturing Company is boosting uncertainty in the working environment resulting in various difficulties for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting critical choices given that Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Trade Payment's intervention in the process. Provided the fact that the shop has a global existence with branches in UK, USA, Canada and also Germany, political factors in each of these countries might be able to affect efficiency or strategic goals. Federal Profession Payment's antitrust fit versus the merging used up valuable time of the organization's elderly management suggesting that 'political' factors can have significant implications for an international service.

Economic Factors: Financial factors such as the appearance of small businesses in the worldwide scenario suggest that Sampson Paint Manufacturing Company is prospering in an atmosphere where there is possible growth of organisations. In addition to this, truth that store customers are mainly trying to find workplace products for home offices suggests that the market has a rising pattern of business owners and also home based services.

Social factors: Social trends in the economic climate show that customers are trying to find benefit in addition to attractive rates. Marketing research demonstrates how the consumer for Sampson Paint Manufacturing Company lacks awareness about locating options which can offer a combination of benefit as well as affordable.

Technological factors: Modern technology plays a crucial function in Sampson Paint Manufacturing Company's business approach particularly as the organization is piloting Modern technology centers which would certainly supply technology sales and assistance in the form of memory upgrades, outer setups. (Summary of PEST in appendix 2).

OB Issues and also Manifestations.

A number of underlying Business Habits issues can be seen in Sampson Paint Manufacturing Company's case as highlighted in this section.

Concerns about social modification: There is uneasiness concerning a social change that would certainly occur as soon as Todd Krasnow leaves from his placement as the Executive Vice President of Marketing with the majority of the staff members currently revealing unhappiness over this possible relocation. This anticipated change has actually created stress and anxiety in the workplace which has been coupled with the past stress of preparing the company for a possible merger with Home Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is scarcity of personnel that can match the demanding environment of a fast-paced company. Not only does this bring about difficulty in locating the right individuals, it places stress on brand-new hires as can not stand up to the pace as well as stress that the organization anticipates them to birth.

Dual Coverage Lines: Newcomers find this business society cumbersome and also challenging to handle specifically as dotted line partnerships are implied to be weaker as a whole and also unbiased setup as well as performance analysis is still done by the strong line supervisor. This suggests that novices might shed clearness about their corresponding roles as well as objectives specifically as dotted line coverage does not maintain them in straight interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had actually been hypothesized that the last would take Krasnow's placement came as a blow to her spirits. Lewis might have been capable and ideal for the work yet the truth that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Concern & Job Instability: Anxiety as well as instability can be determined as 2 major worries that Lewis would be dealing with especially as the merger has now be cancelled and also 2 senior executives of the marketing division would be leaving. The whole responsibility of the division would be dropping on Lewis's shoulders who would certainly not simply be in charge of brining regarding a cultural adjustment but would certainly likewise have to prove herself in her brand-new role.

Incompatible Administration Design of Leader: Lewis's monitoring style as well as its incompatibility with the marketing division's function can likewise be seen as an OB difficulty specifically as she has actually been utilized to taking care of issues in the procedures division where personnel are shown to concentrate on procedures as well as obtain them right. The advertising department on the various other hand can be seen as a group of individuals who are utilized to being supported by Krasnow that concentrated more on outcome than procedures.

Interdepartmental Disputes: Interdepartmental differences in between 3 departments, marketing, merchandizing as well as procedures specifically over the appropriation of the advertising mix can be determined as an additional OB concern. Although the advertising division does not share the exact same vision as the various other two divisions pertaining to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and also procedures departments do not agree over the advertising mix allocation among one another either.

Disintegration in Marketing Division: Disintegration between the advertising and marketing departments can be recognized as an additional OB concern which can require more focus. The truth that the marketing and advertising areas in the marketing division are disconnected is preventing both divisions from acquiring from each other's experience and competence. Integration of advertising and marketing with merchandising and operations would end up being more difficult if the advertising and marketing department itself is disintegrated which can be an additional potential OB concern.

Sampson Paint Manufacturing Company Analysis

Different theories have actually been made use of to discuss the scenarios to get more clarity regarding the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that juniors are easy and careless, have little ambition and also resist change. The hard version of this concept stressed coercion, limited controls, hazards and also penalties. Gradually it produces low efficiency, refined sabotage and rivalry (Deal, 2003). The scenario at Sampson Paint Manufacturing Company is not completely following Concept X, it can be seen that brand-new hires are locating this atmosphere rather difficult which might eventually lead to a better inclination of the management in the direction of Concept X. Based on McGregor's advocated sight, which he called Concept Y, the important job of the monitoring is to prepare organizational problems to ensure that people can accomplish their own goals best by guiding their initiatives in the direction of organizational benefits. If individuals find no complete satisfaction in their job, the monitoring would certainly have little selection but to count on concept X and also outside control (Bargain, 2003). Even while analyzing Lewis's monitoring design, theory X may have been suitable in the procedures division to some extent but the Advertising division would need dependence on Concept Y in order to get the creativity and creativity from the teams.

Tuckman's Synergy Concept: As for Lewis's problem concerning bringing harmony between the advertising and marketing department is worried, this would initially bring about clash as reviewed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's theory shown in appendix 3, during the preliminary stage of group advancement, individuals may not bond, as they are busy discovering their place in the group. By incorporating the marketing and advertising division's job, there might coincide initial detach which can lead to the second stage of 'storming' where the groups challenge each other. Nevertheless, it is only during the third phase or 'norming' when they would come together to share concepts before the team can bring about synergy in the fourth phase 'carrying out'.

When individuals are provided with adjustment, they go into stage one and so there may be feelings like sadness, unpredictability, frustration, rage, fear, denial and disorientation.The scenario at the advertising department of Sampson Paint Manufacturing Company is similar so Lewis can obtain comfy with the idea that it is not remarkable habits. It is throughout this stage that Lewis will certainly have to offer support to the department so that they can discover a sense of instructions. It can be seen just how Krasnow has already made this transition much easier by making Lewis obtain included in the division a year prior to his actual separation.
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue pertaining to instability at the work environment has been caused first of all by the modification in monitoring and secondly by the reality that the merger will certainly no longer be started. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has talks about the importance of 'protection needs as being a lower level need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel safe and out of danger' goes to the 2nd level of demands. Prior to an employee can be made to create mentally, he needs to have his 'Physical 'and also 'Security' requires fulfilled. This suggests that unless the personnel are made to feel secure concerning their existing employment condition in Sampson Paint Manufacturing Company they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Sampson Paint Manufacturing Company Case Study



Effects of Analysis.

The OB analysis has actually considered numerous theories to understand how to handle the present circumstance handy. The adhering to 3 alternatives have been proposed to aid Lewis manage the organizational challenges in the advertising department. Each of these options has actually been suggested for reducing the transition required to bring the advertising and marketing department in line with the requirements of the market as well as for making the social adjustment that would certainly follow when the current leader leaves.

Integration of marketing and advertising functions. Dividing Adverting as well as Production functions. Assimilation of Advertising And Marketing with Workflow.

Assessment of Alternatives.

Combination of Advertising & Advertising And Marketing Functions: The in-house advertising and marketing company of Sampson Paint Manufacturing Company is already strength for the company in terms of saving up on overheads associated with advertising and marketing and promo. Because no brand-new recruitment has actually been done after Bridget Cole's separation with the coverage line being directly assigned to Krasnow for the advertising and marketing feature, this is a desirable chance for integrating the advertising and marketing features. Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merging days has expertise in business-to-business advertising and marketing along with company and retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to handle both marketing and advertising features.

The advantage of this approach is that it will certainly integrate the two features while decreasing the need for employing an extra resource for advertising and marketing. Lewis would certainly be heading the advertising department and in any type of case her substitute would certainly be required for the current function that she is executing. The drawback of this alternative is that exterior hiring might produce animosity from inner workers who may be eying the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting as well as Manufacturing: Offered the competitive pressures as well as high top quality job required from the advertising agency, it is suggested that Lewis needs to enable the manufacturing unit to be a different feature from the advertising and marketing system. Since many advertising and marketing firms had these 2 functions as separate devices, it makes more sense to adhere to the standard.

Combination of Advertising And Marketing with Procedures: Since Lewis is already caring for the advertising as well as operations departments all at once; it makes sense to incorporate both functions since she has actually been efficiently looking after both ends. The truth that the two departments already have major distinctions over allocation of resources suggests that this assimilation might have the ability to produce consistency specifically as Lewis would be heading both ends.However there are different negative aspects of this move especially as it would certainly put excessive concern over Lewis's shoulders. The reality that Lewis needs to adapt her monitoring style for the marketing department suggests that these two departments would certainly be culturally diverse. Lewis might not be able to apply one type of leadership design to both divisions which might result in inadequacy in either one of the two features.

Suggestion.



An evaluation of the 3 choices shows that assimilation of advertising and marketing as well as procedures would certainly not be a viable move as a result of the vast distinctions between both divisions despite the fact that currently Lewis is taking care of both. While splitting up of the production function might have been a beneficial action for the advertising department, the reality that it would certainly indicate positioning a 3rd feature under Lewis's wing indicates this should be prevented. The combination of the advertising and marketing division is the most effective option in terms of getting the optimal results from the department. An action plan for this choice is talked about listed below.

Activity Plan.
Recommendation
Lewis will certainly take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Production function will certainly stay component of advertising and marketing under marketing feature.

Lewis will certainly divide herself from procedures.

An autonomous leadership style with worker empowerment will be utilized in advertising division.

Open up door policy and also focus on cross departmental interaction will certainly be aimed at removing dissonance.

Contingency strategy.

If the integration does not work out as prepared, a backup plan would comply with which would certainly separate the production function from the marketing function to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the advertising and marketing division without an SVP. In that case the manufacturing function will absolutely be divided by positioning it under an SVP production.