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Smart Union Group Holdings Limited A Short Toy Story Case Study Analysis

Background and Facts

Smart Union Group Holdings Limited A Short Toy Story an office supplies store for little and also average sized organisations has lately been involved in preparing for a merging with its competitor Home Deport, which has actually impacted effectiveness levels in departmentswith the elderly supervisor associated with legal complications presented by the federal Trade Commission. With the Advertising Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the function in the future. With difficulties in the form of a potential social change and also reduced employee spirits, the company is in need of a complete reengineering effort at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The possible cultural change at the marketing department of Smart Union Group Holdings Limited A Short Toy Story is increasing uncertainty in the working environment resulting in various obstacles 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 major duty in influencing calculated decisions considering that Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Profession Compensation's treatment in the process. Given the reality that the shop has an international presence with branches in UK, USA, Canada and also Germany, political consider each of these countries might be able to influence performance or strategic goals. Federal Trade Commission's antitrust fit versus the merging used up useful time of the organization's senior monitoring recommending that 'political' factors can have major implications for an international company.

Economic Factors: Financial factors such as the development of local business in the worldwide scenario recommend that Smart Union Group Holdings Limited A Short Toy Story is growing in an atmosphere where there is potential development of businesses. Along with this, truth that shop customers are mainly searching for workplace products for office suggests that the market has a climbing fad of business owners as well as online companies.

Social factors: Social fads in the economic situation reveal that consumers are looking for ease as well as appealing costs. Marketing research shows how the client for Smart Union Group Holdings Limited A Short Toy Story does not have recognition concerning finding options which can supply a combination of comfort and low costs.

Technological factors: Innovation plays an important duty in Smart Union Group Holdings Limited A Short Toy Story's business technique especially as the company is piloting Modern technology centers which would certainly provide modern technology sales as well as support in the type of memory upgrades, peripheral setups. (Summary of PEST in appendix 2).

OB Issues as well as Manifestations.

Several underlying Business Behavior issues can be seen in Smart Union Group Holdings Limited A Short Toy Story's case as highlighted in this area.

Apprehensions concerning social modification: There is uneasiness concerning a cultural adjustment that would certainly occur as soon as Todd Krasnow leaves from his position as the Exec Vice President of Advertising with a lot of the personnel already showing discontent over this potential relocation. This predicted adjustment has actually created stress and anxiety in the work environment which has been combined with the previous tension of preparing the firm for a potential merging with House Deport.
Pest Analysis
Stressful Job Atmosphere for Newcomers: There is lack of workers that can match the difficult environment of a fast-paced organization. Not just does this lead to problem in discovering the best people, it places anxiety on new hires as can not withstand the rate as well as stress that the company expects them to bear.

Dual Reporting Lines: Beginners discover this business culture troublesome and hard to cope with especially as dotted line connections are meant to be weak in general and unbiased setup and efficiency analysis is still done by the solid line manager. This implies that newbies could shed clearness concerning their respective functions as well as purposes especially as dotted line coverage does not keep them in straight communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had actually been guessed that the last would certainly take Krasnow's placement came as a blow to her morale. Lewis might have been qualified and also ideal for the job however the reality that Kransnow's departure would make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Task Insecurity: Worry and also insecurity can be determined as two major problems that Lewis would be managing particularly as the merging has now be cancelled as well as two senior execs of the marketing division would certainly be leaving. The entire obligation of the department would certainly be dropping on Lewis's shoulders that would certainly not just be in charge of brining regarding a cultural modification but would certainly additionally need to verify herself in her brand-new duty.

Incompatible Monitoring Design of Leader: Lewis's monitoring design as well as its incompatibility with the advertising department's role can likewise be seen as an OB challenge specifically as she has been made use of to handling concerns in the procedures department where workers are instructed to focus on processes and also obtain them right. The advertising and marketing department on the various other hand can be seen as a team of people that are used to being supported by Krasnow that focused much more on output than procedures.

Interdepartmental Arguments: Interdepartmental disagreements between 3 departments, advertising and marketing, merchandizing and procedures respectively over the allocation of the advertising and marketing mix can be recognized as an additional OB problem. Although the advertising department does not share the same vision as the various other two divisions regarding the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as procedures departments do not agree over the advertising and marketing mix allotment among each other either.

Fragmentation in Advertising Division: Disintegration between the advertising and marketing departments can be determined as another OB concern which might need further interest. The truth that the advertising and marketing sections in the marketing department are detached is stopping both departments from acquiring from each various other's experience and knowledge. Assimilation of marketing with merchandising and also operations would certainly end up being harder if the advertising department itself is degenerated which can be one more potential OB problem.

Smart Union Group Holdings Limited A Short Toy Story Analysis

Different concepts have been made use of to describe the situations to get more clarity about the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers think that subordinates are passive and also lazy, have little aspiration and also resist modification. The hard version of this theory emphasized coercion, tight controls, hazards and penalties. In time it generates low performance, refined sabotage as well as rivalry (Deal, 2003). Although the circumstance at Smart Union Group Holdings Limited A Short Toy Story is not entirely complying with Theory X, it can be seen that new hires are discovering this environment rather stressful which might eventually result in a greater inclination of the management in the direction of Concept X. According to McGregor's supported sight, which he called Theory Y, the important job of the administration is to organize organizational problems so that individuals can attain their very own goals best by guiding their initiatives towards business benefits. If people find no complete satisfaction in their work, the monitoring would certainly have little selection but to depend on theory X and exterior control (Offer, 2003). Even while examining Lewis's management design, concept X may have appropriated in the procedures department to some extent but the Marketing department would need reliance on Theory Y in order to get the creative thinking as well as originality from the teams.

Tuckman's Team effort Theory: As far as Lewis's worry regarding bringing harmony between the advertising and marketing department is worried, this would originally cause clash as reviewed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, during the first stage of group development, individuals may not bond, as they are active discovering their place in the team. By incorporating the advertising and marketing department's work, there may be the same first separate which can cause the 2nd stage of 'storming' where the teams test each other. However, it is only during the 3rd stage or 'norming' when they would collaborate to share suggestions prior to the group can cause harmony in the fourth stage 'executing'.

When people are presented with adjustment, they go into stage one and so there might be emotions like despair, unpredictability, frustration, rage, concern, rejection and also disorientation.The scenario at the marketing division of Smart Union Group Holdings Limited A Short Toy Story is similar so Lewis can get comfortable with the concept that it is not remarkable behavior. It is throughout this stage that Lewis will certainly have to give support to the division so that they can discover a sense of direction. It can be seen exactly how Krasnow has already made this shift easier by making Lewis get entailed in the department a year prior to his actual separation.
Vrio Analysis
Maslow's Demand hierarchy: The OB issue pertaining to instability at the work environment has been activated firstly by the adjustment in administration and secondly by the fact that the merging will no longer be started. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has discusses the relevance of 'safety 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 exactly how 'the requirement to feel protected and also safe' is at the 2nd level of requirements. Prior to a worker can be made to develop psychologically, he requires to have his 'Physical 'and 'Security' requires satisfied. This shows that unless the employees are made to really feel safe regarding their existing work status in Smart Union Group Holdings Limited A Short Toy Story they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Smart Union Group Holdings Limited A Short Toy Story Case Study

Ramification of Analysis.

The OB analysis has actually looked at different concepts to recognize exactly how to manage the present circumstance at hand. The adhering to three options have actually been proposed to aid Lewis deal with the business difficulties in the marketing department. Each of these alternatives has actually been recommended for easing the shift required to bring the advertising department according to the requirements of the marketplace as well as for making the cultural change that would follow when the existing leader leaves.

Assimilation of marketing and advertising features. Separating Adverting and also Manufacturing features. Assimilation of Marketing with Workflow.

Evaluation of Alternatives.

Integration of Advertising & Advertising Functions: The in-house advertising agency of Smart Union Group Holdings Limited A Short Toy Story is currently toughness for the organization in regards to conserving up on overheads related to marketing as well as promotion. Since no brand-new employment has been done after Bridget Cole's departure with the reporting line being directly appointed to Krasnow for the marketing function, this is a desirable chance for integrating the advertising and marketing functions. Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merging days has knowledge in business-to-business marketing together with agency and retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to handle both marketing and advertising features.

The benefit of this method is that it will certainly integrate both functions while lowering the requirement for working with an extra source for advertising. In addition to this, Lewis would be heading the marketing division and also regardless her substitute would be needed for the existing duty that she is doing. The disadvantage of this alternative is that external hiring might produce resentment from interior personnel who might be eying the position of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and also Manufacturing: Provided the affordable stress as well as high quality job required from the ad agency, it is recommended that Lewis needs to enable the production device to be a separate function from the advertising and marketing unit. Given that most advertising agencies had these two features as different devices, it makes even more sense to adhere to the standard. Along with this, both functions may have the ability to focus on their core triggers a lot more effectively. Nonetheless, the negative aspect of this technique would certainly be that additional prices would have to be birthed for establishing different manufacturing features. A production head might have to be employed which can raise expenses for the organization.

Assimilation of Advertising And Marketing with Procedures: Because Lewis is currently taking care of the advertising and marketing and operations divisions all at once; it makes good sense to integrate both features given that she has been effectively dealing with both ends. The fact that the two divisions already have significant distinctions over allocation of sources recommends that this combination may have the ability to cause consistency specifically as Lewis would be heading both ends.However there are various downsides of this move especially as it would certainly place way too much worry over Lewis's shoulders. The truth that Lewis needs to adapt her administration design for the advertising and marketing division suggests that these two departments would certainly be culturally varied. In addition to this, Lewis may not be able to apply one sort of management design to both divisions which could lead to inadequacy in either one of both features.


An evaluation of the three options shows that integration of advertising and also procedures would not be a possible step due to the substantial distinctions in between the 2 divisions despite the fact that presently Lewis is taking care of both. While splitting up of the production feature might have been a favorable relocation for the advertising and marketing department, the truth that it would certainly imply positioning a 3rd function under Lewis's wing means this should be prevented.

Activity Plan.
Lewis will certainly take control of the role of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Manufacturing function will certainly stay part of advertising and marketing under advertising feature.

Lewis will divide herself from operations.

An autonomous leadership style with staff member empowerment will be used in advertising and marketing division.

Open door policy as well as focus on cross department interaction will certainly be focused on getting rid of dissonance.

Backup plan.

If the combination does not work out as intended, a contingency plan would follow which would certainly separate the production function from the advertising function to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the marketing department without an SVP. In that case the production feature will definitely be separated by positioning it under an SVP production.