Scranton Furniture Co Case Study Solution


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Scranton Furniture Co Case Study Analysis

Background and Facts

Scranton Furniture Co an office materials retailer for tiny and moderate sized companies has actually lately been involved in preparing for a merging with its competitor Residence Deport, which has influenced performance levels in departmentswith the senior manager associated with legal problems presented by the government Profession Payment. With the Advertising and marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the future. With obstacles in the form of a prospective cultural change and low worker spirits, the company is in need of a full reengineering effort at the advertising and marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The possible social adjustment at the advertising and marketing department of Scranton Furniture Co is boosting uncertainty in the working environment resulting in numerous challenges 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 significant role in affecting tactical choices considering that Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Profession Payment's intervention at the same time. Given the reality that the store has a global presence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these nations may be able to affect efficiency or critical goals. Federal Profession Commission's antitrust fit versus the merging occupied beneficial time of the organization's senior administration suggesting that 'political' factors can have serious implications for a worldwide organisation.

Economic Factors: Economic factors such as the development of local business in the global circumstance recommend that Scranton Furniture Co is prospering in an atmosphere where there is possible development of organisations. In addition to this, reality that shop clients are primarily trying to find office products for office suggests that the marketplace has a rising fad of entrepreneurs and home organisations.

Social factors: Social trends in the economy reveal that customers are trying to find comfort in addition to appealing costs. Marketing research shows how the client for Scranton Furniture Co lacks awareness regarding discovering remedies which can supply a combination of comfort and affordable.

Technical factors: Modern technology plays a vital duty in Scranton Furniture Co's company technique specifically as the company is piloting Innovation centers which would provide technology sales and also support in the type of memory upgrades, peripheral installations. (Summary of PEST in appendix 2).

OB Issues and Manifestations.

Numerous underlying Business Behavior concerns can be seen in Scranton Furniture Co's case as highlighted in this area.

Concerns regarding cultural adjustment: There is apprehension regarding a social change that would certainly take place as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising with the majority of the personnel currently showing unhappiness over this prospective action. This expected modification has produced tension in the office which has actually been combined with the previous stress and anxiety of preparing the company for a potential merging with Home Deport.
Pest Analysis
Demanding Work Environment for Newcomers: There is shortage of personnel that can match the demanding atmosphere of a fast-paced company. Not just does this result in difficulty in finding the appropriate people, it puts anxiety on brand-new hires as can not hold up against the pace as well as stress that the organization expects them to bear.

Twin Reporting Lines: Newcomers discover this business society difficult as well as challenging to deal with specifically as dotted line relationships are suggested to be weak generally as well as unbiased setting and also performance analysis is still done by the strong line supervisor. This implies that newbies could lose quality about their corresponding roles and also goals particularly as dotted line reporting does not maintain them in direct interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had been guessed that the last would certainly take Krasnow's placement came as an impact to her morale. Lewis may have been qualified as well as ideal for the task but the reality that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Fear & Task Instability: Anxiety as well as insecurity can be recognized as 2 significant concerns that Lewis would be taking care of specifically as the merger has currently be terminated and two elderly executives of the advertising department would be leaving. The entire obligation of the department would certainly be falling on Lewis's shoulders that would not simply supervise of brining about a social modification but would certainly additionally need to prove herself in her brand-new role.

Incompatible Administration Design of Leader: Lewis's administration style and also its conflict with the marketing division's function can additionally be seen as an OB challenge especially as she has actually been used to taking care of issues in the procedures department where employees are instructed to concentrate on processes and also obtain them. The marketing department on the other hand can be seen as a group of individuals who are used to being supported by Krasnow who concentrated more on result than processes.

Interdepartmental Arguments: Interdepartmental disputes in between three divisions, marketing, merchandizing and also operations specifically over the allotment of the marketing mix can be recognized as another OB problem. Although the advertising and marketing division does not share the exact same vision as the various other 2 divisions regarding the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing as well as procedures departments do not agree over the marketing mix allowance amongst one another either.

Disintegration in Advertising Department: Fragmentation between the advertising and marketing divisions can be recognized as one more OB problem which might require further interest. The truth that the marketing and advertising sections in the advertising and marketing department are disconnected is stopping both departments from acquiring from each other's experience and also competence. Assimilation of marketing with retailing and also procedures would become harder if the marketing division itself is broken down which can be an additional potential OB concern.

Scranton Furniture Co Analysis

Different concepts have actually been made use of to describe the conditions to get additional clearness concerning the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors believe that juniors are passive and also careless, have little passion as well as withstand adjustment. The scenario at Scranton Furniture Co is not completely complying with Concept X, it can be seen that brand-new hires are locating this atmosphere rather demanding which may eventually lead to a greater inclination of the administration towards Theory X. Even while examining Lewis's management style, theory X may have been suitable in the operations department to some level yet the Advertising division would certainly call for reliance on Theory Y in order to get the imagination and also creativity from the teams.

Tuckman's Team effort Theory: As much as Lewis's concern concerning bringing harmony between the advertising and marketing and also advertising division is worried, this would initially lead to conflict as gone over by Bruce Tuckman in his 'Team effort Concept'. By combining the marketing as well as marketing department's job, there may be the exact same first disconnect which could lead to the 2nd stage of 'storming' where the teams test one another.

Bridges' Change Version: Based On William Bridge's theory (appendix 4), people are quite awkward with change, which is evident by the situation at Scranton Furniture Co The scenario can be seen as a regular program of life if is examined as per Bridge's theory where he explains that people undergo 3 stages of shift when they experience change. 'Closing, losing and also Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people are presented with adjustment, they go into stage one and so there might be emotions like unhappiness, uncertainty, aggravation, temper, concern, denial as well as disorientation.The circumstance at the marketing division of Scranton Furniture Co is similar so Lewis can obtain comfortable with the concept that it is not phenomenal behavior. In the second phase, there might be a requirement to bridge the space between the new and old culture so Lewis may need to face this ordeal when Krasnow leaves. There may be reduced morale and reduced efficiency at this phase which ought to not be taken as a setback. It is throughout this stage that Lewis will certainly need to offer advice to the division to make sure that they can locate a sense of direction. It can be seen exactly how Krasnow has already made this transition less complicated by making Lewis obtain involved in the division a year before his real separation. As per Bridges' Design, phase three will certainly cause visibility to knowing, High power as well as commitment as individuals will certainly welcome the modification (Bridges, 2004).
Vrio Analysis
Maslow's Demand hierarchy: The OB concern related to instability at the office has been set off to start with by the adjustment in monitoring and also second of all by the truth that the merger will no more be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the importance of 'security needs as being a lower degree demand of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel safe and untouched' is at the 2nd level of needs. Before a staff member can be made to create psychologically, he needs to have his 'Physiological 'as well as 'Safety' needs met. This shows that unless the employees are made to feel safe about their present work standing in Scranton Furniture Co they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Scranton Furniture Co Case Study

Ramification of Analysis.

The OB analysis has actually taken a look at various theories to recognize how to cope with the existing situation available. The complying with three options have actually been recommended to aid Lewis manage the organizational challenges in the advertising department. Each of these alternatives has actually been recommended for alleviating the change required to bring the advertising division in line with the needs of the marketplace as well as for making the social modification that would certainly follow when the existing leader leaves.

Combination of marketing and advertising features. Dividing Adverting as well as Manufacturing features. Combination of Advertising And Marketing with Operations.

Assessment of Alternatives.

Assimilation of Advertising And Marketing & Advertising Functions: The internal advertising agency of Scranton Furniture Co is already strength for the organization in terms of conserving up on expenses related to marketing and promotion. Considering that no brand-new recruitment has been done after Bridget Cole's separation with the coverage line being straight designated to Krasnow for the marketing feature, this is a positive opportunity for integrating the advertising and marketing features. Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merger days has experience in business-to-business marketing together with company as well as retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to deal with both marketing and advertising functions.

The benefit of this method is that it will integrate both features while lowering the demand for working with an added source for advertising and marketing. In addition to this, Lewis would be heading the advertising department as well as all the same her substitute would certainly be required for the existing duty that she is executing. The downside of this option is that exterior hiring might produce animosity from internal workers that might be looking at the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Production: Provided the competitive pressures as well as excellent quality work needed from the ad agency, it is recommended that Lewis ought to permit the production unit to be a separate feature from the advertising and marketing device. Considering that the majority of ad agency had these two features as different devices, it makes more sense to follow the norm. In addition to this, both features might have the ability to focus on their core turns on a lot more efficiently. Nevertheless, the downside of this method would certainly be that extra prices would have to be birthed for setting up separate manufacturing functions. A manufacturing head may have to be worked with which might boost expenses for the company.

Assimilation of Advertising And Marketing with Workflows: Since Lewis is currently taking treatment of the marketing as well as operations divisions concurrently; it makes sense to incorporate the two functions because she has been successfully taking care of both ends. The reality that Lewis has to adapt her administration style for the advertising and marketing division suggests that these two divisions would certainly be culturally diverse.


An analysis of the three choices shows that combination of marketing as well as procedures would certainly not be a feasible step because of the huge differences between both divisions although that presently Lewis is taking care of both. While separation of the production feature might have been a positive action for the marketing division, the fact that it would certainly imply positioning a third function under Lewis's wing indicates this should be prevented as well. The integration of the advertising and marketing department is the very best option in terms of getting the optimal results from the department. An action plan for this option is discussed listed below.

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

Advertising and Marketing features would certainly be combined.

Judith Shapiro will certainly be worked with to take Lewis's location as SVP of advertising and marketing.

Production function will certainly continue to be component of advertising under marketing function.

Lewis will certainly separate herself from operations.

An autonomous leadership design with employee empowerment will certainly be used in advertising department.

Open door plan as well as focus on cross department interaction will be targeted at getting rid of discord.

Backup plan.

If the combination does not work out as planned, a contingency plan would certainly follow which would separate the manufacturing feature from the advertising feature to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing department without an SVP. Because case the production function will certainly be separated by putting it under an SVP production.