Menu

Scott Lawsons Dilemma Case Study Analysis

CASE STUDY

Home >> Harvard >> Scott Lawsons Dilemma >>

Scott Lawsons Dilemma Case Study Analysis

Background and Facts

Scott Lawsons Dilemma a workplace materials merchant for little as well as medium sized companies has actually just recently been associated with planning for a merging with its competitor House Deport, which has actually influenced performance degrees in departmentswith the elderly manager associated with legal difficulties put forth by the federal Profession Payment. With the Marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the near future. With difficulties in the form of a possible cultural change as well as low worker spirits, the company needs a total reengineering initiative at the advertising division.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective social change at the advertising and marketing division of Scott Lawsons Dilemma is boosting uncertainty in the workplace resulting in various obstacles for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting critical decisions since Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Payment's treatment at the same time. Given the fact that the store has a worldwide existence with branches in UK, U.S.A., Canada and also Germany, political consider each of these nations may be able to influence performance or strategic goals. Federal Trade Payment's antitrust suit versus the merger took up valuable time of the organization's elderly management suggesting that 'political' factors can have significant effects for a worldwide company.

Economic Factors: Economic factors such as the introduction of small businesses in the global situation recommend that Scott Lawsons Dilemma is prospering in a setting where there is possible growth of businesses. Truth that store consumers are mostly looking for office supplies for residence workplaces suggests that the market has a rising pattern of entrepreneurs and home based services.

Social factors: Social fads in the economic situation reveal that customers are searching for convenience as well as appealing costs. Marketing research shows how the customer for Scott Lawsons Dilemma lacks awareness about finding solutions which can provide a mix of ease and also affordable.

Technological factors: Innovation plays an important role in Scott Lawsons Dilemma's company technique specifically as the company is piloting Innovation facilities which would certainly offer modern technology sales and also support in the form of memory upgrades, peripheral installations. (Recap of BUG in appendix 2).

OB Issues and Effects.

Several underlying Organizational Actions concerns can be seen in Scott Lawsons Dilemma's case as highlighted in this area.

Uneasiness regarding cultural adjustment: There is apprehension concerning a social change that would certainly happen as soon as Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with a lot of the team member currently showing unhappiness over this potential step. This predicted adjustment has actually developed anxiety in the office which has actually been coupled with the past stress and anxiety of preparing the company for a prospective merger with House Deport.
Pest Analysis
Demanding Job Atmosphere for Newcomers: There is shortage of personnel that can match the demanding atmosphere of a busy organization. Not just does this bring about trouble in discovering the best people, it puts stress on brand-new hires as can not hold up against the pace as well as pressure that the organization expects them to bear.

Dual Reporting Lines: Novices locate this organizational society cumbersome and tough to cope with especially as dotted line connections are indicated to be weak generally and unbiased setting and performance examination is still done by the solid line supervisor. This indicates that beginners might lose clearness regarding their particular functions and goals particularly as dotted line reporting does not keep them in direct interaction with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had actually been guessed that the latter would certainly take Krasnow's setting came as an impact to her morale. Lewis may have been capable and also suitable for the job however the truth that Kransnow's separation would make Coles a straight record to Lewis may have been the reason for Coles' resignation from services.

Fear & Work Instability: Fear as well as instability can be identified as 2 major worries that Lewis would be handling especially as the merging has now be cancelled and two elderly execs of the advertising and marketing division would certainly be leaving. The entire responsibility of the division would certainly be dropping on Lewis's shoulders who would not simply supervise of brining regarding a cultural change yet would likewise have to verify herself in her brand-new role.

Incompatible Management Style of Leader: Lewis's monitoring design and also its incompatibility with the advertising department's function can additionally be seen as an OB difficulty particularly as she has actually been made use of to dealing with issues in the procedures division where employees are instructed to concentrate on processes and also obtain them. The advertising and marketing division on the various other hand can be viewed as a group of individuals that are made use of to being nurtured by Krasnow who concentrated much more on result than procedures.

Interdepartmental Arguments: Interdepartmental arguments in between 3 divisions, advertising, merchandizing and also procedures specifically over the allocation of the advertising mix can be identified as one more OB problem. The advertising department does not share the exact same vision as the various other two divisions pertaining to the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing as well as procedures divisions do not concur over the advertising mix appropriation among one an additional either.

Fragmentation in Advertising Division: Fragmentation between the advertising and marketing departments can be recognized as an additional OB problem which could require further interest. The fact that the advertising and marketing sections in the advertising division are separated is stopping both divisions from gaining from each various other's experience and also expertise. Integration of advertising with retailing and operations would certainly come to be harder if the marketing division itself is degenerated which can be an additional prospective OB issue.

Scott Lawsons Dilemma Analysis

Different concepts have been utilized to discuss the conditions to obtain more quality regarding the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many supervisors think that juniors are passive and careless, have little ambition as well as resist modification. The tough variation of this concept emphasized browbeating, limited controls, dangers and punishments. Over time it produces reduced efficiency, refined sabotage and also competition (Offer, 2003). Although the situation at Scott Lawsons Dilemma is not entirely following Theory X, it can be seen that brand-new hires are discovering this atmosphere rather demanding which might ultimately lead to a greater disposition of the management towards Concept X. Based on McGregor's supported view, which he called Theory Y, the vital job of the management is to prepare organizational problems so that people can accomplish their very own goals best by guiding their efforts in the direction of organizational benefits. If people discover no fulfillment in their job, the management would have little option but to rely on concept X as well as exterior control (Deal, 2003). Even while evaluating Lewis's monitoring design, concept X might have been suitable in the operations division somewhat yet the Marketing division would need reliance on Concept Y so as to get the imagination and originality from the groups.

Tuckman's Teamwork Theory: As much as Lewis's issue concerning bringing harmony in between the advertising and marketing as well as advertising and marketing department is worried, this would initially lead to conflict as talked about by Bruce Tuckman in his 'Teamwork Theory'. By integrating the marketing as well as advertising division's work, there might be the very same first separate which can lead to the 2nd stage of 'storming' where the groups challenge one an additional.

When individuals are provided with change, they get in stage one as well as so there might be feelings like despair, unpredictability, frustration, rage, worry, rejection and also disorientation.The scenario at the advertising department of Scott Lawsons Dilemma is similar so Lewis can obtain comfy with the suggestion that it is not remarkable habits. It is during this stage that Lewis will certainly have to provide support to the division so that they can find a sense of instructions. It can be seen how Krasnow has currently made this change less complicated by making Lewis get entailed in the division a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has talks about the importance of 'security requires as being a lower degree requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel safe and out of threat' is at the 2nd level of requirements. Before an employee can be made to develop psychologically, he needs to have his 'Physical 'as well as 'Security' requires met.

SWOT Analysis for Scott Lawsons Dilemma Case Study



Ramification of Analysis.

The OB analysis has actually looked at numerous theories to recognize just how to handle the existing scenario at hand. The adhering to three alternatives have been proposed to help Lewis manage the organizational difficulties in the advertising department. Each of these alternatives has been recommended for relieving the transition needed to bring the marketing division in accordance with the needs of the market and for making the social adjustment that would certainly follow as soon as the existing leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and Production functions. Combination of Advertising with Procedures.

Examination of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The in-house marketing company of Scott Lawsons Dilemma is currently strength for the company in terms of saving up on overheads related to advertising and promotion. Because no new recruitment has been done after Bridget Cole's separation with the reporting line being straight designated to Krasnow for the advertising function, this is a favorable chance for incorporating the advertising and marketing features. Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merger days has knowledge in business-to-business marketing in addition to firm and retail advertising and marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to deal with both advertising and marketing functions.

The benefit of this method is that it will integrate the two functions while decreasing the need for working with an additional source for advertising. Along with this, Lewis would be heading the advertising department and also in any case her substitute would certainly be required for the present duty that she is executing. The disadvantage of this alternative is that outside hiring might cause animosity from interior employees that might be considering the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Manufacturing: Offered the competitive pressures as well as top quality job called for from the advertising agency, it is suggested that Lewis should permit the production unit to be a different function from the advertising and marketing system. Given that most ad agency had these 2 functions as different devices, it makes more sense to follow the norm. Along with this, both features may be able to focus on their core turns on extra effectively. The downside of this method would certainly be that additional prices would certainly have to be borne for setting up different production functions. A manufacturing head might have to be employed which could boost expenses for the company.

Assimilation of Advertising with Operations: Given that Lewis is currently caring for the advertising and marketing and operations departments concurrently; it makes good sense to integrate both functions since she has actually been effectively taking care of both ends. The reality that both divisions already have major differences over allowance of sources suggests that this integration may have the ability to produce harmony especially as Lewis would certainly be heading both ends.However there are numerous downsides of this step especially as it would place excessive problem over Lewis's shoulders. The reality that Lewis has to adjust her management style for the marketing division suggests that these 2 departments would certainly be culturally diverse. Lewis might not be able to apply one type of leadership style to both divisions which could result in inadequacy in either one of the two functions.

Recommendation.



An assessment of the 3 options indicates that assimilation of advertising and operations would certainly not be a feasible step because of the vast distinctions between the two divisions although that currently Lewis is taking care of both. While separation of the production function might have been a favorable relocation for the marketing department, the truth that it would certainly indicate positioning a 3rd feature under Lewis's wing indicates this must be stayed clear of. The integration of the advertising division is the very best option in terms of getting the ideal arise from the department. An action prepare for this alternative is discussed below.

Action Plan.
Recommendation
Lewis will certainly take control of the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

Manufacturing function will continue to be part of marketing under advertising function.

Lewis will separate herself from operations.

A democratic leadership design with staff member empowerment will be used in advertising department.

Open up door policy as well as emphasis on cross department interaction will certainly be targeted at eliminating discord.

Backup plan.

If the combination does not work out as prepared, a contingency plan would certainly comply with which would separate the manufacturing function from the advertising function to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing department without an SVP. Because case the manufacturing function will definitely be separated by positioning it under an SVP manufacturing.