Spikes Indoor Beach Volleyball And Rock Climbing Inc Case Study Solution


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Spikes Indoor Beach Volleyball And Rock Climbing Inc Case Study Solution

Background and Facts

Spikes Indoor Beach Volleyball And Rock Climbing Inc an office materials store for tiny and medium sized services has actually lately been involved in planning for a merging with its competitor Home Deport, which has actually affected performance levels in departmentswith the elderly supervisor involved in legal issues presented by the federal Profession Commission. With the Advertising Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the current head of procedures has been asked to take the duty in the near future. With obstacles in the type of a potential cultural modification as well as low worker morale, the organization requires a total reengineering effort at the marketing department.

Issue Statement
Porter's 5 Forces Analysis
The possible social change at the marketing division of Spikes Indoor Beach Volleyball And Rock Climbing Inc is raising unpredictability in the workplace leading to various challenges for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting strategic decisions given that Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Profession Payment's treatment in the process. Provided the fact that the shop has a worldwide presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations might be able to influence efficiency or tactical objectives. Federal Trade Compensation's antitrust match against the merger took up important time of the organization's senior management recommending that 'political' factors can have major ramifications for an international service.

Economic Factors: Financial factors such as the emergence of local business in the global situation suggest that Spikes Indoor Beach Volleyball And Rock Climbing Inc is growing in an environment where there is possible growth of services. Along with this, reality that shop consumers are mostly seeking workplace supplies for office suggests that the market has a rising fad of business owners and also home services.

Social factors: Social fads in the economic climate show that clients are searching for ease along with eye-catching rates. Marketing research shows how the consumer for Spikes Indoor Beach Volleyball And Rock Climbing Inc lacks understanding concerning finding services which can provide a combination of comfort and also inexpensive.

Technical factors: Modern technology plays a crucial function in Spikes Indoor Beach Volleyball And Rock Climbing Inc's organisation approach especially as the company is piloting Technology facilities which would certainly offer technology sales as well as assistance in the kind of memory upgrades, peripheral installments. (Recap of INSECT in appendix 2).

OB Issues and also Effects.

A number of underlying Organizational Actions concerns can be seen in Spikes Indoor Beach Volleyball And Rock Climbing Inc's case as highlighted in this area.

Concerns concerning social adjustment: There is uneasiness regarding a cultural adjustment that would happen when Todd Krasnow leaves from his position as the Executive Vice President of Advertising with most of the personnel already revealing unhappiness over this prospective relocation. This predicted change has actually created stress in the office which has actually been coupled with the previous stress and anxiety of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is lack of personnel that can match the demanding setting of a fast-paced company. Not just does this bring about trouble in finding the best people, it puts stress and anxiety on new hires as can not hold up against the pace and pressure that the organization expects them to birth.

Dual Reporting Lines: Beginners discover this organizational society difficult and also hard to manage specifically as dotted line partnerships are indicated to be weak in general and also unbiased setting and also efficiency assessment is still done by the strong line supervisor. This indicates that novices might lose clearness about their respective functions and purposes specifically as populated line coverage does not maintain them in direct interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had been guessed that the last would take Krasnow's position came as an impact to her morale. Lewis may have been capable and proper for the job but the reality that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Task Insecurity: Anxiety and insecurity can be determined as 2 major concerns that Lewis would be managing especially as the merging has actually now be terminated as well as two elderly execs of the marketing division would certainly be leaving. The whole obligation of the division would be falling on Lewis's shoulders that would not just supervise of brining concerning a cultural adjustment yet would additionally have to confirm herself in her new function.

Inappropriate Management Design of Leader: Lewis's monitoring style and also its conflict with the advertising and marketing department's function can likewise be seen as an OB obstacle particularly as she has been used to managing problems in the operations division where employees are educated to focus on processes and also obtain them. The marketing department on the various other hand can be viewed as a group of people that are made use of to being nurtured by Krasnow who focused more on output than procedures.

Interdepartmental Arguments: Interdepartmental disputes between 3 departments, advertising and marketing, merchandizing as well as procedures specifically over the allotment of the marketing mix can be recognized as another OB issue. The advertising and marketing department does not share the very same vision as the other two departments regarding the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and procedures departments do not concur over the marketing mix allowance among one an additional either.

Fragmentation in Marketing Division: Disintegration in between the advertising and marketing departments can be determined as an additional OB issue which might require further interest. The reality that the marketing and advertising areas in the advertising division are disconnected is stopping both divisions from acquiring from each various other's experience as well as knowledge. Assimilation of advertising with retailing and operations would certainly end up being more difficult if the advertising department itself is disintegrated which can be another potential OB issue.

Spikes Indoor Beach Volleyball And Rock Climbing Inc Analysis

Numerous theories have actually been utilized to discuss the situations to obtain further clearness regarding the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers think that juniors are easy and lazy, have little passion and also stand up to adjustment. The scenario at Spikes Indoor Beach Volleyball And Rock Climbing Inc is not entirely complying with Concept X, it can be seen that brand-new hires are finding this setting instead demanding which may ultimately lead to a greater disposition of the administration in the direction of Concept X. Also while evaluating Lewis's management design, concept X might have been ideal in the operations department to some level yet the Advertising department would require dependence on Theory Y in order to obtain the creativity as well as originality from the teams.

Tuckman's Team effort Concept: Regarding Lewis's issue about bringing harmony in between the marketing and advertising division is worried, this would initially result in clash as discussed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, throughout the first stage of group development, individuals may not bond, as they are busy discovering their location in the group. By combining the advertising and marketing department's work, there may be the same preliminary disconnect which might bring about the 2nd stage of 'storming' where the teams test one another. It is only throughout the 3rd phase or 'norming' when they would certainly come with each other to share ideas before the team can bring around synergy in the fourth phase 'performing'.

When individuals are provided with modification, they get in phase one as well as so there may be emotions like unhappiness, uncertainty, stress, anger, fear, rejection and disorientation.The circumstance at the advertising and marketing division of Spikes Indoor Beach Volleyball And Rock Climbing Inc is comparable so Lewis can get comfy with the idea that it is not amazing habits. It is during this phase that Lewis will have to give guidance to the division so that they can discover a sense of direction. It can be seen exactly how Krasnow has actually currently made this shift easier by making Lewis obtain entailed in the department a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has discusses the relevance of 'safety and security needs as being a reduced level need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel protected as well as out of danger' is at the second degree of requirements. Before a worker can be made to create emotionally, he requires to have his 'Physiological 'as well as 'Safety' requires fulfilled.

SWOT Analysis for Spikes Indoor Beach Volleyball And Rock Climbing Inc Case Study

Effects of Analysis.

The OB analysis has looked at various concepts to recognize exactly how to manage the present scenario available. The complying with 3 choices have been suggested to help Lewis manage the organizational obstacles in the advertising and marketing department. Each of these choices has been proposed for reducing the shift needed to bring the marketing division according to the needs of the marketplace and for making the social change that would certainly follow once the existing leader leaves.

Combination of advertising and marketing functions. Dividing Adverting as well as Production features. Assimilation of Advertising with Operations.

Examination of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merger days has competence in business-to-business advertising and marketing along with firm as well as retail marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both advertising as well as marketing functions.

The advantage of this strategy is that it will incorporate both functions while decreasing the need for hiring an additional resource for marketing. Along with this, Lewis would certainly be heading the marketing division as well as regardless her substitute would certainly be needed for the present function that she is doing. The negative aspect of this option is that external hiring may produce bitterness from inner workers who may be looking at the setting of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and also Manufacturing: Offered the competitive pressures and premium quality job called for from the ad agency, it is advised that Lewis must permit the production unit to be a different feature from the advertising and marketing unit. Given that most ad agency had these two features as separate units, it makes even more feeling to comply with the standard. Along with this, both features may have the ability to concentrate on their core turns on extra efficiently. The negative aspect of this technique would be that added costs would have to be birthed for establishing up separate production functions. Along with this, a manufacturing head might have to be worked with which can enhance expenses for the organization.

Integration of Advertising with Operations: Considering that Lewis is currently taking treatment of the marketing and also operations divisions at the same time; it makes feeling to integrate the two functions given that she has actually been effectively taking care of both ends. The reality that Lewis has to adapt her administration design for the marketing department suggests that these 2 divisions would certainly be culturally diverse.


An evaluation of the three alternatives indicates that combination of advertising as well as operations would certainly not be a possible relocation due to the large distinctions between the 2 departments in spite of the reality that currently Lewis is dealing with both. While splitting up of the production function might have been a positive action for the advertising and marketing division, the fact that it would indicate positioning a 3rd function under Lewis's wing indicates this ought to be avoided.

Action Strategy.
Lewis will take over the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

Manufacturing feature will stay part of marketing under advertising function.

Lewis will certainly separate herself from operations.

An autonomous management design with worker empowerment will certainly be made use of in advertising and marketing division.

Open door plan as well as emphasis on cross department communication will be aimed at eliminating dissonance.

Contingency strategy.

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