The Gold Story Case Study Analysis


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The Gold Story Case Study Analysis

Background and Facts

The Gold Story an office materials store for little and medium sized businesses has lately been associated with preparing for a merger with its competitor Home Deport, which has actually impacted efficiency degrees in departmentswith the senior manager involved in lawful difficulties put forth by the government Profession Commission. With the Advertising and marketing Head advancing the information of his departure from the business in one year, Jeannie Lewis, the present head of operations has been asked to take the role in the near future. With difficulties in the kind of a prospective cultural adjustment and reduced employee morale, the company is in need of a complete reengineering effort at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The potential cultural modification at the advertising and marketing department of The Gold Story is enhancing unpredictability in the workplace leading to numerous challenges for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in influencing critical decisions considering that Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Trade Compensation's intervention at the same time. Offered the truth that the store has a global existence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these nations might be able to influence efficiency or strategic objectives. Federal Trade Commission's antitrust suit versus the merging occupied valuable time of the company's elderly administration suggesting that 'political' factors can have major implications for an international service.

Economic Factors: Financial factors such as the development of local business in the international scenario suggest that The Gold Story is flourishing in an environment where there is prospective growth of businesses. In addition to this, truth that shop customers are mainly searching for workplace supplies for office recommends that the market has a climbing pattern of business owners and also home based companies.

Social factors: Social trends in the economic climate reveal that customers are trying to find ease as well as attractive prices. Market research shows how the client for The Gold Story does not have recognition concerning locating remedies which can use a combination of benefit and low costs.

Technological factors: Modern technology plays an important role in The Gold Story's company approach especially as the company is piloting Innovation facilities which would offer innovation sales and support in the type of memory upgrades, outer installations. (Recap of BUG in appendix 2).

OB Issues and Symptoms.

Several underlying Business Habits concerns can be seen in The Gold Story's case as highlighted in this section.

Apprehensions concerning cultural modification: There is concern regarding a social adjustment that would take place once Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Marketing with the majority of the employee already showing discontent over this possible relocation. This anticipated modification has created stress and anxiety in the workplace which has actually been combined with the past tension of preparing the firm for a prospective merging with Residence Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is shortage of personnel that can match the stressful atmosphere of a hectic organization. Not just does this result in difficulty in finding the right people, it places anxiety on new hires as can not hold up against the pace and stress that the company expects them to birth.

Double Coverage Lines: Beginners find this organizational culture difficult and tough to deal with specifically as populated line connections are indicated to be weaker as a whole as well as objective setup and also efficiency examination is still done by the strong line supervisor. This means that novices can shed clarity regarding their corresponding duties and goals specifically as populated line reporting does not keep them in direct interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles although it had actually been hypothesized that the last would take Krasnow's position came as an impact to her spirits. Lewis may have been qualified as well as ideal for the job but the reality that Kransnow's departure would make Coles a straight record to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Task Insecurity: Worry and also insecurity can be recognized as two major concerns that Lewis would certainly be managing particularly as the merger has actually now be cancelled as well as two elderly executives of the advertising division would certainly be leaving. The entire responsibility of the division would certainly be dropping on Lewis's shoulders who would not just supervise of brining about a social modification but would additionally have to verify herself in her new duty.

Inappropriate Management Style of Leader: Lewis's management design as well as its incompatibility with the marketing department's duty can also be seen as an OB challenge particularly as she has actually been used to dealing with concerns in the operations department where personnel are educated to concentrate on procedures and also get them. The advertising and marketing division on the various other hand can be seen as a team of people who are made use of to being nurtured by Krasnow who focused a lot more on result than procedures.

Interdepartmental Disagreements: Interdepartmental disputes in between 3 divisions, advertising, merchandizing as well as procedures respectively over the allotment of the advertising and marketing mix can be identified as another OB worry. Although the marketing department does not share the very same vision as the other 2 departments relating to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and also operations departments do not agree over the advertising and marketing mix allowance among one another either.

Disintegration in Advertising Division: Fragmentation in between the advertising and marketing divisions can be recognized as an additional OB problem which can require more focus. The truth that the advertising and marketing areas in the advertising and marketing division are detached is preventing both divisions from getting from each other's experience and proficiency. Assimilation of advertising with merchandising and also procedures would become harder if the marketing division itself is degenerated which can be an additional prospective OB concern.

The Gold Story Analysis

Various theories have been used to describe the situations to obtain more clearness concerning the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers think that subordinates are easy and also careless, have little aspiration and also stand up to adjustment. The hard variation of this concept highlighted coercion, tight controls, hazards and also punishments. Gradually it produces reduced performance, refined sabotage as well as competition (Deal, 2003). Although the scenario at The Gold Story is not totally following Theory X, it can be seen that new hires are locating this atmosphere rather difficult which may at some point lead to a greater inclination of the monitoring in the direction of Theory X. According to McGregor's advocated sight, which he called Concept Y, the crucial job of the monitoring is to prepare business conditions to ensure that individuals can achieve their very own objectives best by routing their efforts towards business rewards. If people find no contentment in their job, the management would have little choice yet to rely on theory X and also external control (Bargain, 2003). Even while examining Lewis's administration style, theory X might have been suitable in the operations division to some extent but the Marketing division would certainly require dependence on Concept Y in order to get the creativity and creativity from the teams.

Tuckman's Teamwork Theory: As for Lewis's problem about bringing consistency between the advertising and marketing division is concerned, this would initially cause clash as talked about by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, during the first phase of team development, people might not bond, as they are active finding their place in the team. By integrating the marketing and advertising department's job, there might coincide preliminary disconnect which can cause the 2nd phase of 'storming' where the groups test each other. Nonetheless, it is only during the 3rd stage or 'norming' when they would collaborate to share suggestions prior to the group can produce harmony in the 4th phase 'doing'.

Bridges' Change Design: According To William Bridge's concept (appendix 4), people are fairly uncomfortable with change, which is apparent by the situation at The Gold Story The scenario can be seen as a normal training course of life if is studied according to Bridge's concept where he clarifies that people experience three phases of transition when they experience adjustment. 'End, losing and Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people exist with change, they get in phase one and so there might be feelings like sadness, uncertainty, aggravation, temper, concern, rejection and disorientation.The scenario at the advertising division of The Gold Story is comparable so Lewis can obtain comfy with the idea that it is not remarkable habits. In the 2nd phase, there may be a need to bridge the gap in between the new as well as old society so Lewis might have to face this ordeal when Krasnow leaves. There might be low morale as well as reduced performance at this stage which should not be taken as a trouble. It is during this stage that Lewis will have to provide assistance to the division so that they can discover an orientation. It can be seen just how Krasnow has actually already made this shift easier by making Lewis obtain associated with the division a year prior to his real departure. As per Bridges' Version, phase three will bring about openness to learning, High power and also commitment as people will accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Demand power structure: The OB issue pertaining to instability at the work environment has been set off to start with by the modification in management and second of all by the fact that the merger will certainly no longer be initiated. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has talks about the value of 'safety needs as being a lower degree need of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to feel secure as well as unharmed' is at the second degree of demands. Before a staff member can be made to develop mentally, he requires to have his 'Physiological 'and 'Security' needs satisfied. This suggests that unless the personnel are made to feel secure concerning their existing employment condition in The Gold Story they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for The Gold Story Case Study

Implication of Analysis.

The OB analysis has actually taken a look at different concepts to understand how to deal with the present circumstance at hand. The following three alternatives have actually been suggested to help Lewis manage the business difficulties in the marketing division. Each of these options has actually been recommended for reducing the transition required to bring the advertising division in line with the demands of the market and for making the social modification that would certainly follow once the present leader leaves.

Combination of marketing and advertising features. Dividing Adverting as well as Production functions. Integration of Marketing with Operations.

Analysis of Alternatives.

Combination of Advertising & Marketing Functions: The internal marketing agency of The Gold Story is already stamina for the organization in regards to saving up on expenses associated with marketing and also promo. Considering that no brand-new recruitment has actually been done after Bridget Cole's departure with the reporting line being straight appointed to Krasnow for the advertising function, this is a positive possibility for incorporating the marketing and advertising features. Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merging days has knowledge in business-to-business advertising along with firm and also retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to handle both marketing and advertising functions.

The advantage of this approach is that it will integrate both features while reducing the need for employing an added resource for advertising. Lewis would be heading the advertising and marketing department as well as in any case her replacement would certainly be required for the current role that she is carrying out. The disadvantage of this option is that outside hiring may bring about resentment from inner personnel that might be looking at the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Production: Offered the affordable pressures as well as high quality job called for from the ad agency, it is advised that Lewis should enable the manufacturing unit to be a separate function from the marketing device. Given that many ad agency had these 2 features as different units, it makes more feeling to comply with the standard. Both features might be able to focus on their core turns on a lot more effectively. The drawback of this technique would certainly be that added expenses would have to be birthed for establishing up separate production functions. In addition to this, a manufacturing head may have to be employed which could increase overheads for the organization.

Combination of Advertising with Procedures: Considering that Lewis is currently taking treatment of the advertising and operations departments simultaneously; it makes feeling to incorporate the 2 features given that she has actually been effectively taking treatment of both ends. The fact that Lewis has to adjust her administration style for the marketing division recommends that these 2 departments would be culturally diverse.


An examination of the 3 options suggests that integration of advertising and marketing and also operations would certainly not be a possible step due to the huge differences between the 2 divisions despite the fact that currently Lewis is managing both. While splitting up of the manufacturing function may have been a beneficial action for the marketing department, the truth that it would certainly imply placing a third function under Lewis's wing implies this should be stayed clear of.

Action Plan.
Lewis will take over the role of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would be combined.

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

Production feature will certainly continue to be part of advertising and marketing under advertising function.

Lewis will certainly separate herself from procedures.

A democratic management design with staff member empowerment will certainly be made use of in advertising division.

Open door plan as well as focus on cross department communication will be targeted at eliminating dissonance.

Backup plan.

If the assimilation does not work out as prepared, a backup plan would comply with which would divide the manufacturing feature from the advertising feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising division without an SVP. In that case the manufacturing function will certainly be separated by placing it under an SVP manufacturing.