Textron Corporation Benchmarking Performance Case Study Analysis


Home >> Harvard >> Textron Corporation Benchmarking Performance >>

Textron Corporation Benchmarking Performance Case Study Help

Background and Facts

Textron Corporation Benchmarking Performance a workplace products store for tiny and also medium sized companies has recently been associated with planning for a merger with its rival Home Deport, which has influenced efficiency degrees in departmentswith the elderly manager associated with legal problems put forth by the federal Trade Commission. With the Marketing Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the near future. With obstacles in the form of a prospective social adjustment as well as low employee morale, the organization needs a total reengineering initiative at the marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The potential social adjustment at the advertising and marketing division of Textron Corporation Benchmarking Performance is raising unpredictability in the working environment causing numerous 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 duty in impacting strategic choices because Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Trade Compensation's intervention at the same time. Offered the truth that the shop has an international presence with branches in UK, USA, Canada and Germany, political factors in each of these countries may be able to affect efficiency or calculated goals. Federal Trade Commission's antitrust suit against the merging took up beneficial time of the organization's senior monitoring recommending that 'political' factors can have significant ramifications for an international service.

Economic Factors: Economic factors such as the introduction of local business in the worldwide scenario suggest that Textron Corporation Benchmarking Performance is thriving in an atmosphere where there is prospective growth of services. Fact that shop clients are primarily looking for office supplies for house offices suggests that the market has a climbing pattern of business owners as well as home based organisations.

Social factors: Social patterns in the economic situation show that clients are seeking benefit along with attractive rates. Marketing research shows how the consumer for Textron Corporation Benchmarking Performance lacks recognition regarding finding options which can supply a combination of ease and low costs.

Technological factors: Technology plays a vital duty in Textron Corporation Benchmarking Performance's business strategy specifically as the organization is piloting Innovation facilities which would certainly offer innovation sales as well as assistance in the kind of memory upgrades, outer installations. (Summary of PEST in appendix 2).

OB Issues and Symptoms.

Several underlying Business Habits concerns can be seen in Textron Corporation Benchmarking Performance's case as highlighted in this area.

Apprehensions about cultural change: There is uneasiness regarding a cultural adjustment that would take place as soon as Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with a lot of the team member already revealing discontent over this potential step. This expected adjustment has produced tension in the workplace which has actually been coupled with the previous tension of preparing the firm for a prospective merging with Home Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is lack of workers that can match the demanding environment of a busy company. Not only does this bring about difficulty in discovering the best people, it places stress and anxiety on new hires as can not stand up to the speed as well as pressure that the organization expects them to bear.

Dual Coverage Lines: Newcomers discover this business culture cumbersome and also hard to cope with particularly as populated line connections are indicated to be weak as a whole and unbiased setting and efficiency evaluation is still done by the strong line supervisor. This indicates that novices might lose quality regarding their corresponding roles and also goals especially as populated line coverage does not keep them in straight interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles despite the fact that it had been guessed that the latter would take Krasnow's placement came as an impact to her spirits. Lewis may have been qualified and ideal for the work however the truth that Kransnow's separation would make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.

Fear & Work Instability: Concern as well as insecurity can be determined as 2 significant issues that Lewis would be taking care of particularly as the merging has currently be cancelled as well as 2 elderly executives of the marketing department would certainly be leaving. The whole obligation of the department would be dropping on Lewis's shoulders who would certainly not just be in charge of brining concerning a social modification however would likewise have to prove herself in her brand-new function.

Inappropriate Monitoring Style of Leader: Lewis's monitoring style and its conflict with the marketing department's function can also be viewed as an OB obstacle specifically as she has actually been used to taking care of concerns in the operations division where personnel are instructed to focus on processes and also get them right. The advertising and marketing department on the other hand can be seen as a group of people who are made use of to being supported by Krasnow that concentrated more on outcome than procedures.

Interdepartmental Differences: Interdepartmental differences in between three departments, advertising, merchandizing and also operations respectively over the allotment of the marketing mix can be determined as one more OB problem. Although the advertising division does not share the same vision as the various other 2 departments regarding the aloocation of the marketing mix twoards promos and advertsing, the merchandizing and also procedures departments do not concur over the marketing mix allowance among one another either.

Disintegration in Marketing Division: Fragmentation between the advertising and marketing departments can be recognized as another OB problem which could need more attention. The reality that the advertising and marketing sections in the marketing department are detached is preventing both divisions from acquiring from each other's experience and competence. Assimilation of marketing with merchandising and also operations would certainly come to be harder if the marketing division itself is disintegrated which can be an additional prospective OB concern.

Textron Corporation Benchmarking Performance Analysis

Various theories have been made use of to discuss the conditions to get more quality regarding the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors think that subordinates are passive and also lazy, have little passion and withstand adjustment. The situation at Textron Corporation Benchmarking Performance is not entirely complying with Theory X, it can be seen that brand-new hires are finding this atmosphere rather stressful which might ultimately lead to a higher disposition of the management in the direction of Concept X. Also while examining Lewis's monitoring style, concept X might have been suitable in the procedures department to some degree however the Advertising and marketing department would need dependence on Concept Y in order to obtain the creativity and also creativity from the groups.

Tuckman's Teamwork Theory: As much as Lewis's issue concerning bringing consistency in between the marketing as well as advertising and marketing department is worried, this would at first lead to clash as reviewed by Bruce Tuckman in his 'Teamwork Theory'. By combining the marketing as well as marketing department's work, there might be the exact same first disconnect which might lead to the second phase of 'storming' where the teams challenge one an additional.

When people are presented with change, they get in stage one and also so there may be feelings like unhappiness, uncertainty, irritation, rage, anxiety, rejection and disorientation.The scenario at the marketing division of Textron Corporation Benchmarking Performance is comparable so Lewis can get comfortable with the idea that it is not remarkable actions. It is during this phase that Lewis will have to give assistance to the department so that they can find a feeling of direction. It can be seen exactly how Krasnow has actually already made this transition easier by making Lewis obtain involved in the department a year prior to his real departure.
Vrio Analysis
Maslow's Demand hierarchy: The OB concern related to insecurity at the workplace has been caused first of all by the change in administration as well as secondly by the truth that the merging will no more be started. Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has discusses the importance of 'security needs as being a reduced degree need of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the need to really feel safe as well as untouched' is at the 2nd degree of needs. Before a staff member can be made to establish emotionally, he needs to have his 'Physical 'and also 'Security' needs met. This suggests that unless the workers are made to really feel protected concerning their present employment status in Textron Corporation Benchmarking Performance they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Textron Corporation Benchmarking Performance Case Study

Ramification of Analysis.

The OB analysis has actually considered various concepts to comprehend just how to manage the current circumstance handy. The following 3 alternatives have actually been proposed to help Lewis manage the organizational difficulties in the advertising division. Each of these choices has been suggested for easing the change needed to bring the marketing division according to the requirements of the marketplace and for making the social change that would adhere to as soon as the present leader leaves.

Combination of marketing and advertising functions. Dividing Adverting and Production functions. Integration of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Integration of Advertising And Marketing & Advertising Functions: The in-house advertising and marketing company of Textron Corporation Benchmarking Performance is currently toughness for the organization in regards to conserving up on overheads related to advertising and marketing and also promo. Because no brand-new recruitment has actually been done after Bridget Cole's separation with the coverage line being straight appointed to Krasnow for the advertising and marketing feature, this is a beneficial possibility for incorporating the advertising and marketing features. Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merging days has proficiency in business-to-business marketing together with firm as well as retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to handle both advertising and marketing features.

The advantage of this approach is that it will incorporate the two features while lowering the need for employing an added resource for marketing. Lewis would certainly be heading the advertising and marketing department and also in any kind of case her substitute would certainly be needed for the existing role that she is executing. The drawback of this choice is that exterior hiring might bring about animosity from inner personnel that might be looking at the setting of EVP after Lewis takes over Krasnow's position.

Separating Adverting as well as Manufacturing: Given the competitive stress and high quality work needed from the marketing company, it is recommended that Lewis ought to enable the manufacturing system to be a separate function from the marketing device. Because the majority of marketing agencies had these two features as different devices, it makes even more feeling to follow the standard.

Integration of Advertising with Procedures: Since Lewis is already caring for the advertising and marketing and operations divisions at the same time; it makes sense to integrate both functions given that she has been successfully taking care of both ends. The reality that the two divisions already have significant distinctions over allowance of resources recommends that this assimilation might be able to bring about harmony especially as Lewis would be heading both ends.However there are different drawbacks of this action specifically as it would certainly place way too much problem over Lewis's shoulders. The reality that Lewis needs to adjust her administration style for the marketing division suggests that these two departments would be culturally varied. Lewis might not be able to use one type of leadership design to both divisions which might result in inefficiency in either one of the two functions.


An evaluation of the three alternatives shows that integration of advertising as well as operations would certainly not be a feasible action due to the substantial distinctions between the two departments although that currently Lewis is dealing with both. While separation of the manufacturing feature may have been a desirable action for the advertising department, the truth that it would certainly mean placing a third function under Lewis's wing suggests this should be prevented as well. The integration of the marketing division is the best alternative in terms of getting the ideal arise from the division. An action plan for this alternative is gone over below.

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

Advertising and Marketing functions would be combined.

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

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

Lewis will certainly separate herself from procedures.

A democratic leadership style with employee empowerment will be made use of in advertising and marketing division.

Open door policy and also focus on cross departmental communication will certainly be aimed at getting rid of disharmony.

Backup strategy.

If the combination does not work out as prepared, a backup strategy would comply with which would certainly separate the manufacturing function from the advertising feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising department without an SVP. In that case the manufacturing feature will certainly be divided by putting it under an SVP production.