Target Corporation Rewards Program June 2010 Case Study Analysis


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Target Corporation Rewards Program June 2010 Case Study Analysis

Background and Facts

Target Corporation Rewards Program June 2010 a workplace materials merchant for little and medium sized companies has lately been involved in planning for a merger with its rival Home Deport, which has influenced performance degrees in departmentswith the senior manager involved in lawful issues presented by the federal Trade Commission. With the Advertising and marketing Head advancing the news of his separation from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the future. With challenges in the kind of a prospective social modification and low worker spirits, the organization requires a total reengineering initiative at the advertising division.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising and marketing division of Target Corporation Rewards Program June 2010 is enhancing uncertainty in the workplace resulting in different difficulties 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 major function in impacting calculated choices because Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Profession Commission's intervention while doing so. Provided the truth that the store has an international existence with branches in UK, USA, Canada and also Germany, political consider each of these nations may have the ability to affect performance or critical goals. Federal Trade Payment's antitrust match versus the merger took up important time of the company's senior monitoring suggesting that 'political' factors can have significant ramifications for an international organisation.

Economic Factors: Economic factors such as the appearance of small companies in the global circumstance recommend that Target Corporation Rewards Program June 2010 is prospering in a setting where there is prospective development of companies. Fact that store consumers are mainly looking for workplace products for home offices suggests that the market has an increasing fad of entrepreneurs and also residence based services.

Social factors: Social patterns in the economic climate reveal that customers are looking for benefit along with eye-catching costs. Marketing research demonstrates how the consumer for Target Corporation Rewards Program June 2010 lacks recognition regarding finding options which can use a mix of ease and also inexpensive.

Technological factors: Technology plays an important function in Target Corporation Rewards Program June 2010's organisation approach specifically as the organization is piloting Technology centers which would offer innovation sales and support in the type of memory upgrades, peripheral installations. (Recap of INSECT in appendix 2).

OB Issues as well as Manifestations.

Several underlying Business Actions problems can be seen in Target Corporation Rewards Program June 2010's case as highlighted in this area.

Worries regarding cultural adjustment: There is uneasiness about a social change that would occur once Todd Krasnow leaves from his setting as the Exec Vice President of Advertising with the majority of the personnel currently revealing unhappiness over this possible move. This anticipated modification has created tension in the work environment which has actually been combined with the past stress and anxiety of preparing the firm for a potential merging with Residence Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is lack of personnel that can match the difficult atmosphere of a busy organization. Not just does this lead to difficulty in finding the ideal people, it puts stress and anxiety on brand-new hires as can not withstand the rate and also pressure that the company anticipates them to birth.

Double Reporting Lines: Beginners discover this business culture cumbersome as well as hard to handle especially as populated line partnerships are indicated to be weak as a whole as well as unbiased setup as well as performance assessment is still done by the solid line manager. This means that novices could lose clarity regarding their respective duties and goals particularly as dotted line coverage does not keep them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had actually been hypothesized that the latter would certainly take Krasnow's setting came as a blow to her morale. Lewis may have been capable and also suitable for the task however the fact that Kransnow's departure would make Coles a direct report to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Job Instability: Concern and insecurity can be identified as two significant problems that Lewis would be dealing with specifically as the merging has actually currently be cancelled and two senior executives of the advertising department would certainly be leaving. The whole responsibility of the department would be falling on Lewis's shoulders that would certainly not just be in charge of brining regarding a cultural modification but would likewise need to confirm herself in her new function.

Inappropriate Monitoring Design of Leader: Lewis's management design and also its incompatibility with the marketing division's role can likewise be viewed as an OB challenge especially as she has been used to taking care of problems in the operations division where workers are instructed to focus on processes and obtain them right. The advertising department on the other hand can be seen as a group of people who are made use of to being nurtured by Krasnow who concentrated extra on output than processes.

Interdepartmental Disputes: Interdepartmental arguments between 3 departments, advertising and marketing, merchandizing as well as operations specifically over the allocation of the advertising mix can be determined as another OB issue. Although the marketing division does not share the very same vision as the various other two divisions regarding the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and operations divisions do not agree over the marketing mix allotment amongst one another either.

Disintegration in Advertising And Marketing Department: Disintegration in between the advertising and marketing departments can be recognized as an additional OB issue which can need additional focus. The reality that the advertising and marketing sections in the marketing division are separated is stopping both departments from acquiring from each various other's experience and also knowledge. Combination of advertising and marketing with retailing and also operations would certainly become more difficult if the advertising division itself is degenerated which can be another possible OB concern.

Target Corporation Rewards Program June 2010 Analysis

Different concepts have actually been used to clarify the situations to obtain further quality regarding the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that staffs are passive and lazy, have little aspiration and also resist change. The scenario at Target Corporation Rewards Program June 2010 is not totally adhering to Concept X, it can be seen that brand-new hires are discovering this environment instead stressful which may eventually lead to a better disposition of the management in the direction of Concept X. Also while evaluating Lewis's administration style, concept X might have been ideal in the procedures department to some extent but the Advertising division would need dependence on Theory Y in order to get the imagination and also creativity from the groups.

Tuckman's Team effort Concept: As much as Lewis's concern regarding bringing harmony in between the advertising and marketing and also advertising department is worried, this would initially lead to clash as discussed by Bruce Tuckman in his 'Team effort Concept'. By integrating the advertising as well as marketing division's work, there may be the very same initial separate which can lead to the 2nd phase of 'storming' where the groups challenge one another.

When individuals are presented with change, they go into phase one and also so there might be feelings like sadness, uncertainty, aggravation, temper, anxiety, denial and also disorientation.The circumstance at the marketing department of Target Corporation Rewards Program June 2010 is similar so Lewis can obtain comfortable with the idea that it is not remarkable actions. It is throughout this stage that Lewis will have to provide support to the division so that they can discover a feeling of instructions. It can be seen exactly how Krasnow has already made this change much easier by making Lewis obtain entailed in the department a year before his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has reviews the importance of 'safety needs as being a lower level demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel secure and also out of threat' is at the second degree of demands. Before a staff member can be made to create psychologically, he needs to have his 'Physiological 'and also 'Safety' needs fulfilled.

SWOT Analysis for Target Corporation Rewards Program June 2010 Case Study

Implication of Analysis.

The OB analysis has looked at various theories to recognize just how to manage the present situation available. The adhering to 3 options have been proposed to help Lewis deal with the business challenges in the marketing department. Each of these choices has been proposed for relieving the shift required to bring the advertising and marketing division in accordance with the requirements of the marketplace and for making the cultural change that would certainly adhere to as soon as the present leader leaves.

Integration of marketing and advertising functions. Separating Adverting and also Manufacturing features. Assimilation of Advertising And Marketing with Procedures.

Examination of Alternatives.

Assimilation of Marketing & Advertising Functions: The internal marketing firm of Target Corporation Rewards Program June 2010 is already strength for the organization in terms of saving up on expenses associated with advertising and promotion. Given that no new recruitment has been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the advertising feature, this is a favorable opportunity for incorporating the advertising and marketing features. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merging days has know-how in business-to-business marketing in addition to agency as well as retail advertising experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing functions.

The benefit of this strategy is that it will integrate both features while reducing the requirement for employing an additional source for marketing. Lewis would certainly be heading the marketing department and also in any type of case her replacement would certainly be needed for the current role that she is executing. The drawback of this alternative is that external hiring may cause resentment from inner employees who might be looking at the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Production: Offered the affordable pressures as well as high quality job needed from the advertising agency, it is advised that Lewis needs to allow the manufacturing device to be a separate function from the advertising device. Since the majority of advertising agencies had these two functions as separate systems, it makes even more feeling to adhere to the norm. Along with this, both functions might be able to focus on their core activates much more effectively. Nevertheless, the downside of this strategy would certainly be that added costs would have to be borne for establishing different manufacturing functions. In addition to this, a manufacturing head might have to be hired which can boost overheads for the company.

Integration of Advertising with Procedures: Since Lewis is currently caring for the advertising and marketing and also operations departments at the same time; it makes good sense to integrate the two functions considering that she has been successfully looking after both ends. The reality that the two divisions currently have major distinctions over allotment of sources recommends that this combination may be able to bring about harmony particularly as Lewis would be heading both ends.However there are various downsides of this action particularly as it would place excessive problem over Lewis's shoulders. The truth that Lewis needs to adjust her administration design for the advertising and marketing division recommends that these 2 divisions would be culturally diverse. Lewis might not be able to apply one kind of leadership design to both divisions which could result in ineffectiveness in either one of the two functions.


An examination of the 3 alternatives shows that combination of advertising and also operations would certainly not be a possible move due to the vast differences between the two divisions in spite of the truth that currently Lewis is handling both. While splitting up of the manufacturing feature may have been a favorable action for the marketing department, the fact that it would certainly suggest positioning a third feature under Lewis's wing suggests this must be prevented.

Action Plan.
Lewis will certainly take control of the function of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

Manufacturing function will certainly remain component of marketing under advertising and marketing function.

Lewis will separate herself from operations.

A democratic management design with staff member empowerment will be utilized in advertising department.

Open up door policy and focus on cross department interaction will be targeted at removing dissonance.

Contingency strategy.

If the integration does not exercise as planned, a contingency strategy would certainly comply with which would certainly divide the manufacturing feature from the marketing function to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the marketing department without an SVP. Because case the production function will most definitely be divided by positioning it under an SVP manufacturing.