Smith Commercial Developments Case Study Analysis


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Background and Facts

Smith Commercial Developments an office products merchant for small and also moderate sized businesses has actually lately been associated with preparing for a merger with its competitor Residence Deport, which has actually affected effectiveness levels in departmentswith the elderly manager involved in legal issues put forth by the federal Trade Payment. With the Advertising and marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the future. With obstacles in the kind of a possible social adjustment as well as low staff member morale, the company wants a full reengineering effort at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising division of Smith Commercial Developments is boosting unpredictability in the workplace leading to various challenges for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing strategic decisions because Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Profession Payment's treatment while doing so. Provided the fact that the store has a worldwide existence with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries might be able to impact efficiency or tactical goals. Federal Trade Compensation's antitrust suit versus the merging took up useful time of the company's elderly administration suggesting that 'political' factors can have major ramifications for a worldwide business.

Economic Factors: Financial factors such as the appearance of small businesses in the global scenario suggest that Smith Commercial Developments is growing in an atmosphere where there is potential growth of companies. Truth that store customers are mostly looking for office products for house workplaces recommends that the market has a rising trend of business owners and also residence based businesses.

Social factors: Social trends in the economy show that clients are trying to find comfort along with appealing rates. Market research shows how the customer for Smith Commercial Developments does not have understanding about discovering options which can offer a combination of ease and low costs.

Technical factors: Modern technology plays a vital role in Smith Commercial Developments's organisation approach especially as the company is piloting Technology facilities which would supply technology sales as well as assistance in the form of memory upgrades, outer installments. (Recap of BUG in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Business Actions issues can be seen in Smith Commercial Developments's case as highlighted in this section.

Apprehensions concerning cultural change: There is uneasiness concerning a social change that would certainly occur once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with the majority of the team member currently revealing discontent over this prospective action. This anticipated adjustment has actually created stress and anxiety in the work environment which has actually been coupled with the previous tension of preparing the company for a prospective merging with Home Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is lack of personnel that can match the difficult environment of a hectic organization. Not just does this lead to trouble in locating the best individuals, it puts stress on new hires as can not withstand the rate as well as pressure that the organization expects them to birth.

Double Reporting Lines: Newbies find this business culture troublesome and also challenging to cope with particularly as dotted line partnerships are meant to be weaker in general and also unbiased setup and efficiency analysis is still done by the strong line manager. This suggests that novices could shed quality about their particular duties as well as purposes particularly as populated line coverage does not keep them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles even though it had actually been guessed that the last would certainly take Krasnow's setting came as a strike to her morale. Lewis might have been qualified and appropriate for the job but the truth that Kransnow's departure would make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.

Concern & Work Insecurity: Anxiety and also insecurity can be identified as two significant issues that Lewis would certainly be handling especially as the merger has actually now be cancelled and also two elderly executives of the marketing department would certainly be leaving. The whole obligation of the department would certainly be falling on Lewis's shoulders that would not simply supervise of brining about a cultural adjustment however would certainly additionally need to confirm herself in her new role.

Inappropriate Monitoring Design of Leader: Lewis's monitoring style and also its incompatibility with the advertising department's role can also be seen as an OB difficulty specifically as she has actually been made use of to dealing with problems in the operations department where personnel are instructed to concentrate on processes and also get them. The advertising and marketing division on the various other hand can be viewed as a group of individuals that are used to being supported by Krasnow that focused much more on output than processes.

Interdepartmental Differences: Interdepartmental disagreements between three departments, advertising, merchandizing as well as procedures specifically over the allotment of the advertising and marketing mix can be recognized as an additional OB issue. The marketing division does not share the exact same vision as the other 2 departments pertaining to the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and operations divisions do not concur over the advertising and marketing mix appropriation amongst one another either.

Disintegration in Advertising Division: Fragmentation in between the marketing and advertising divisions can be identified as an additional OB problem which might need additional focus. The truth that the marketing and advertising sections in the advertising division are separated is stopping both divisions from getting from each various other's experience and also experience. Integration of advertising with merchandising and also operations would certainly end up being more difficult if the advertising and marketing department itself is broken down which can be one more possible OB concern.

Smith Commercial Developments Analysis

Numerous concepts have actually been used to describe the situations to get more clarity about the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers think that subordinates are easy and also careless, have little aspiration and also withstand modification. The hard version of this theory emphasized browbeating, limited controls, threats as well as penalties. With time it produces low productivity, refined sabotage and also rivalry (Deal, 2003). Although the situation at Smith Commercial Developments is not entirely adhering to Concept X, it can be seen that brand-new hires are finding this atmosphere rather stressful which might at some point result in a greater disposition of the monitoring in the direction of Theory X. As per McGregor's advocated sight, which he called Theory Y, the crucial job of the management is to arrange business conditions to make sure that individuals can accomplish their very own objectives best by routing their initiatives towards business incentives. If individuals discover no complete satisfaction in their job, the monitoring would have little option however to depend on theory X and also exterior control (Deal, 2003). Also while assessing Lewis's monitoring design, concept X may have appropriated in the operations department somewhat however the Advertising department would certainly call for reliance on Theory Y so as to get the creative thinking and also creativity from the teams.

Tuckman's Synergy Concept: As far as Lewis's issue regarding bringing consistency in between the marketing and advertising division is concerned, this would originally cause conflict as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, during the preliminary stage of team development, individuals may not bond, as they are active finding their place in the group. By incorporating the marketing and advertising division's work, there might coincide initial detach which could result in the second stage of 'storming' where the teams test each other. Nevertheless, it is only throughout the third stage or 'norming' when they would come together to share ideas before the group can cause harmony in the 4th stage 'performing'.

Bridges' Transition Design: According To William Bridge's theory (appendix 4), individuals are quite unpleasant with change, which is obvious by the scenario at Smith Commercial Developments The circumstance can be seen as a regular program of life if is examined as per Bridge's theory where he clarifies that people go through three stages of transition when they experience modification. 'Closing, losing and also Releasing', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When people exist with adjustment, they go into stage one and so there may be emotions like sadness, uncertainty, frustration, temper, concern, rejection and disorientation.The scenario at the marketing department of Smith Commercial Developments is similar so Lewis can obtain comfy with the idea that it is not amazing habits. In the second phase, there might be a demand to connect the gap in between the brand-new and old society so Lewis might need to face this ordeal when Krasnow leaves. There may be reduced spirits as well as low efficiency at this phase which must not be taken as a setback. It is throughout this phase that Lewis will certainly need to give assistance to the department to make sure that they can locate an orientation. It can be seen just how Krasnow has actually currently made this shift simpler by making Lewis obtain involved in the department a year prior to his actual departure. Based on Bridges' Version, phase 3 will certainly produce openness to knowing, High power and also commitment as people will accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has reviews the importance of 'safety requires as being a lower degree requirement of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel safe and out of danger' is at the 2nd level of requirements. Before a staff member can be made to create emotionally, he needs to have his 'Physical 'and also 'Safety and security' needs met.

SWOT Analysis for Smith Commercial Developments Case Study

Implication of Analysis.

The OB analysis has actually looked at different theories to understand just how to cope with the present situation at hand. The complying with three options have been recommended to aid Lewis take care of the organizational obstacles in the advertising department. Each of these options has actually been suggested for relieving the transition needed to bring the advertising and marketing department according to the demands of the market and also for making the social modification that would adhere to when the existing leader leaves.

Combination of advertising and marketing functions. Dividing Adverting and also Manufacturing functions. Combination of Advertising And Marketing with Workflow.

Assessment of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merging days has knowledge in business-to-business marketing along with company and retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both advertising and marketing and also advertising and marketing features.

The benefit of this approach is that it will certainly incorporate both features while reducing the demand for hiring an additional source for advertising and marketing. Along with this, Lewis would be heading the advertising and marketing department and also regardless her substitute would certainly be needed for the current function that she is performing. The disadvantage of this alternative is that exterior hiring might cause animosity from inner workers that may be considering the position of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Production: Given the competitive pressures and also premium quality work required from the advertising agency, it is advised that Lewis should allow the production device to be a different function from the marketing unit. Considering that many advertising agencies had these two functions as separate systems, it makes more sense to follow the norm. Both features might be able to concentrate on their core triggers much more effectively. However, the disadvantage of this strategy would certainly be that extra expenses would need to be birthed for setting up separate manufacturing features. In addition to this, a production head may have to be hired which can boost expenses for the company.

Combination of Advertising And Marketing with Operations: Given that Lewis is currently taking care of the advertising and marketing and operations divisions simultaneously; it makes feeling to integrate the 2 functions because she has been successfully taking care of both ends. The fact that Lewis has to adjust her administration style for the advertising and marketing division recommends that these 2 departments would certainly be culturally diverse.


An assessment of the 3 choices shows that assimilation of marketing and also procedures would not be a feasible relocation due to the huge differences between the 2 divisions regardless of the reality that presently Lewis is handling both. While separation of the manufacturing function may have been a positive relocation for the advertising division, the truth that it would certainly imply placing a 3rd function under Lewis's wing implies this must be stayed clear of.

Activity Strategy.
Lewis will take over the role of EVP Advertising 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 function will certainly continue to be component of advertising and marketing under advertising function.

Lewis will divide herself from procedures.

An autonomous management design with worker empowerment will be used in marketing department.

Open door policy as well as emphasis on cross department communication will certainly be aimed at removing dissonance.

Backup strategy.

If the integration does not exercise as prepared, a contingency plan would certainly adhere to which would divide the manufacturing feature from the advertising and marketing function to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the marketing department without an SVP. Because case the manufacturing function will definitely be divided by placing it under an SVP manufacturing.