Space And Light Studios Cost Volume Profit Analysis And The Business Of Yoga Case Study Solution


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Space And Light Studios Cost Volume Profit Analysis And The Business Of Yoga Case Study Analysis

Background and Facts

Space And Light Studios Cost Volume Profit Analysis And The Business Of Yoga a workplace materials seller for tiny as well as medium sized organisations has actually lately been associated with preparing for a merging with its rival Residence Deport, which has influenced efficiency levels in departmentswith the senior supervisor associated with lawful problems presented by the federal Trade Commission. With the Advertising Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the duty in the near future. With difficulties in the form of a potential cultural change and reduced staff member spirits, the company requires a complete reengineering effort at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The possible social change at the marketing department of Space And Light Studios Cost Volume Profit Analysis And The Business Of Yoga is boosting uncertainty in the working environment causing numerous obstacles 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 duty in influencing critical choices given that Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Trade Payment's treatment at the same time. Provided the fact that the shop has an international presence with branches in UK, USA, Canada and also Germany, political consider each of these nations might be able to impact performance or critical objectives. Federal Trade Commission's antitrust fit against the merger used up useful time of the organization's senior monitoring suggesting that 'political' factors can have severe implications for an international organisation.

Economic Factors: Economic factors such as the appearance of small businesses in the global circumstance recommend that Space And Light Studios Cost Volume Profit Analysis And The Business Of Yoga is prospering in an atmosphere where there is prospective growth of businesses. Truth that shop clients are primarily looking for workplace materials for residence workplaces suggests that the market has a climbing pattern of business owners and also house based companies.

Social factors: Social fads in the economy reveal that customers are looking for ease in addition to eye-catching prices. Marketing research demonstrates how the customer for Space And Light Studios Cost Volume Profit Analysis And The Business Of Yoga does not have understanding regarding discovering remedies which can offer a combination of comfort as well as low costs.

Technical factors: Innovation plays an important duty in Space And Light Studios Cost Volume Profit Analysis And The Business Of Yoga's organisation method specifically as the company is piloting Modern technology centers which would supply innovation sales and also assistance in the type of memory upgrades, peripheral installations. (Summary of PEST in appendix 2).

OB Issues and also Effects.

Several underlying Organizational Actions issues can be seen in Space And Light Studios Cost Volume Profit Analysis And The Business Of Yoga's case as highlighted in this area.

Apprehensions about social modification: There is worry regarding a cultural modification that would certainly take place when Todd Krasnow leaves from his position as the Executive Vice President of Advertising with a lot of the team member already revealing unhappiness over this prospective step. This predicted adjustment has actually developed tension in the workplace which has actually been paired with the past stress and anxiety of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is lack of personnel that can match the stressful environment of a busy organization. Not just does this lead to problem in finding the ideal individuals, it puts stress and anxiety on brand-new hires as can not withstand the pace and stress that the company expects them to bear.

Twin Coverage Lines: Beginners find this organizational culture troublesome and also tough to manage especially as dotted line connections are indicated to be weak generally as well as unbiased setup and also efficiency evaluation is still done by the strong line supervisor. This suggests that novices can shed clarity about their particular duties and also goals specifically as populated line coverage does not maintain them in direct interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles even though it had actually been guessed that the latter would certainly take Krasnow's placement came as an impact to her morale. Lewis may have been qualified and also proper for the work but the fact that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Work Instability: Fear and instability can be recognized as 2 major concerns that Lewis would certainly be managing especially as the merging has currently be cancelled and 2 elderly executives of the advertising department would certainly be leaving. The entire responsibility of the division would certainly be dropping on Lewis's shoulders that would not just be in charge of brining regarding a cultural modification however would additionally have to show herself in her new function.

Inappropriate Administration Style of Leader: Lewis's management style and also its conflict with the advertising division's role can additionally be seen as an OB obstacle specifically as she has been made use of to handling concerns in the procedures department where workers are educated to focus on processes and get them. The advertising division on the other hand can be viewed as a group of people who are utilized to being supported by Krasnow who focused a lot more on outcome than processes.

Interdepartmental Differences: Interdepartmental arguments in between 3 departments, advertising, merchandizing and procedures specifically over the allowance of the marketing mix can be identified as an additional OB problem. Although the advertising and marketing division does not share the same vision as the other two divisions pertaining to the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and procedures departments do not concur over the marketing mix allotment amongst each other either.

Disintegration in Advertising And Marketing Department: Disintegration in between the marketing and advertising departments can be identified as an additional OB concern which could need further interest. The truth that the marketing and advertising areas in the advertising division are separated is protecting against both divisions from gaining from each various other's experience and also expertise. Integration of marketing with merchandising as well as operations would certainly come to be harder if the advertising and marketing department itself is broken down which can be one more possible OB issue.

Space And Light Studios Cost Volume Profit Analysis And The Business Of Yoga Analysis

Various concepts have been made use of to explain the situations to obtain further clearness concerning the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors believe that subordinates are easy as well as careless, have little aspiration as well as resist adjustment. The tough version of this concept stressed browbeating, tight controls, dangers and also penalties. In time it produces low efficiency, subtle sabotage and rivalry (Bargain, 2003). The scenario at Space And Light Studios Cost Volume Profit Analysis And The Business Of Yoga is not totally complying with Theory X, it can be seen that brand-new hires are discovering this atmosphere instead difficult which might ultimately lead to a greater disposition of the monitoring towards Theory X. As per McGregor's advocated sight, which he called Theory Y, the necessary task of the management is to organize organizational problems to make sure that people can accomplish their very own objectives best by guiding their initiatives towards organizational incentives. If people discover no fulfillment in their job, the administration would certainly have little selection yet to rely on concept X as well as outside control (Bargain, 2003). Also while analyzing Lewis's administration design, theory X might have appropriated in the procedures department somewhat yet the Marketing division would call for dependence on Theory Y to get the imagination and also originality from the groups.

Tuckman's Team effort Theory: As for Lewis's worry concerning bringing consistency in between the advertising and marketing division is worried, this would initially result in clash as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, during the initial stage of group development, individuals might not bond, as they are hectic locating their area in the group. By combining the advertising and marketing department's work, there might be the same initial separate which can result in the second stage of 'storming' where the teams challenge one another. It is only during the 3rd stage or 'norming' when they would come together to share suggestions prior to the team can bring around harmony in the fourth phase 'performing'.

Bridges' Change Design: According To William Bridge's theory (appendix 4), people are rather unpleasant with modification, which is evident by the scenario at Space And Light Studios Cost Volume Profit Analysis And The Business Of Yoga The scenario can be seen as a normal program of life if is researched according to Bridge's concept where he clarifies that individuals undergo three stages of change when they experience change. 'Closing, losing and Letting go', The Neutral Area and 'The New Starting' (Bridges, 2004). When people are presented with adjustment, they enter stage one and so there might be emotions like sadness, uncertainty, irritation, temper, concern, rejection and also disorientation.The scenario at the advertising department of Space And Light Studios Cost Volume Profit Analysis And The Business Of Yoga is comparable so Lewis can obtain comfortable with the suggestion that it is not amazing actions. In the second phase, there might be a requirement to connect the space between the new as well as old culture so Lewis may need to face this ordeal when Krasnow leaves. There might be low spirits as well as reduced performance at this stage which must not be taken as an obstacle. It is during this stage that Lewis will need to offer advice to the division so that they can discover a sense of direction. It can be seen exactly how Krasnow has already made this transition much easier by making Lewis obtain involved in the department a year before his actual separation. Based on Bridges' Version, phase three will certainly bring about openness to discovering, High energy and dedication as people will certainly accept the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has goes over the importance of 'protection needs as being a lower degree need of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel secure as well as out of threat' is at the second level of requirements. Prior to a worker can be made to create mentally, he requires to have his 'Physiological 'as well as 'Safety' requires met.

SWOT Analysis for Space And Light Studios Cost Volume Profit Analysis And The Business Of Yoga Case Study

Ramification of Analysis.

The OB analysis has taken a look at various theories to comprehend exactly how to deal with the existing circumstance at hand. The complying with three choices have been recommended to aid Lewis deal with the organizational obstacles in the marketing department. Each of these alternatives has actually been proposed for reducing the change required to bring the marketing division in accordance with the needs of the marketplace and for making the social change that would certainly follow when the existing leader leaves.

Combination of advertising and marketing features. Separating Adverting and also Production functions. Combination of Advertising with Workflow.

Analysis of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The in-house advertising and marketing firm of Space And Light Studios Cost Volume Profit Analysis And The Business Of Yoga is already strength for the organization in terms of conserving up on overheads related to advertising and marketing and promo. Since no brand-new employment has been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the marketing feature, this is a beneficial possibility for integrating the marketing and advertising features. Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merging days has proficiency in business-to-business advertising and marketing together with firm and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing functions.

The benefit of this technique is that it will certainly incorporate both features while minimizing the requirement for hiring an added source for marketing. Lewis would be heading the advertising department and in any case her substitute would certainly be required for the present role that she is executing. The disadvantage of this choice is that external hiring might bring about animosity from interior employees who may be eying the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and also Manufacturing: Given the affordable stress and also high quality job required from the advertising agency, it is advised that Lewis ought to enable the manufacturing device to be a different function from the advertising and marketing device. Given that most ad agency had these two features as different units, it makes more feeling to follow the norm. Along with this, both features may have the ability to concentrate on their core turns on a lot more efficiently. Nonetheless, the disadvantage of this technique would be that additional prices would certainly have to be borne for setting up separate production functions. A production head might have to be employed which could enhance expenses for the organization.

Assimilation of Marketing with Workflows: Because Lewis is already taking treatment of the marketing and operations divisions concurrently; it makes sense to integrate the 2 functions considering that she has actually been efficiently taking treatment of both ends. The fact that Lewis has to adapt her monitoring design for the marketing division recommends that these two departments would be culturally varied.


An assessment of the three choices suggests that combination of advertising as well as operations would not be a possible step due to the vast differences between the two departments despite the fact that currently Lewis is taking care of both. While separation of the manufacturing function might have been a beneficial step for the marketing department, the truth that it would certainly indicate placing a third function under Lewis's wing indicates this should be stayed clear of. The integration of the advertising and marketing department is the very best choice in regards to getting the ideal results from the department. An activity plan for this option is discussed below.

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

Advertising and Marketing features would certainly be merged.

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

Production feature will certainly remain part of advertising and marketing under advertising function.

Lewis will separate herself from procedures.

An autonomous leadership style with worker empowerment will certainly be made use of in advertising division.

Open door policy as well as focus on cross departmental interaction will be focused on eliminating discord.

Backup plan.

If the integration does not exercise as intended, a backup strategy would certainly comply with which would divide the production feature from the advertising and marketing feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising division without an SVP. In that case the production feature will certainly be separated by positioning it under an SVP manufacturing.