The Lego Group Envisioning Risks In Asia A Case Study Help


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The Lego Group Envisioning Risks In Asia A Case Study Solution

Background and Facts

The Lego Group Envisioning Risks In Asia A an office materials retailer for small and medium sized services has actually recently been involved in planning for a merging with its competitor House Deport, which has actually impacted efficiency levels in departmentswith the senior manager associated with legal difficulties put forth by the federal Trade Commission. With the Marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the role in the future. With challenges in the type of a prospective cultural modification and also reduced worker morale, the company needs a full reengineering effort at the advertising and marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The possible cultural change at the advertising division of The Lego Group Envisioning Risks In Asia A is raising uncertainty in the workplace bring about numerous difficulties 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 impacting critical decisions since Stapes Inc. had to desert its strategies of combining with Workplace Deport after the Federal Trade Payment's treatment at the same time. Provided the reality that the store has an international visibility with branches in UK, UNITED STATES, Canada and Germany, political consider each of these countries might be able to impact efficiency or calculated goals. Federal Trade Payment's antitrust match against the merger took up important time of the company's elderly management suggesting that 'political' factors can have serious ramifications for a global company.

Economic Factors: Financial factors such as the introduction of local business in the worldwide scenario recommend that The Lego Group Envisioning Risks In Asia A is growing in an atmosphere where there is possible growth of services. In addition to this, fact that store customers are primarily seeking office supplies for home offices recommends that the marketplace has an increasing fad of business owners and home based businesses.

Social factors: Social fads in the economic situation reveal that clients are trying to find benefit along with appealing costs. Market research demonstrates how the consumer for The Lego Group Envisioning Risks In Asia A does not have recognition concerning finding services which can use a combination of benefit and inexpensive.

Technological factors: Innovation plays an important function in The Lego Group Envisioning Risks In Asia A's company method especially as the organization is piloting Innovation centers which would certainly provide modern technology sales and assistance in the kind of memory upgrades, outer installments. (Summary of INSECT in appendix 2).

OB Issues as well as Effects.

Several underlying Business Actions concerns can be seen in The Lego Group Envisioning Risks In Asia A's case as highlighted in this area.

Apprehensions concerning cultural change: There is concern concerning a social change that would take place when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising with most of the staff members currently revealing discontent over this prospective action. This expected modification has actually created stress and anxiety in the work environment which has actually been coupled with the past tension of preparing the firm for a potential merging with Residence Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is lack of personnel that can match the difficult setting of a fast-paced organization. Not only does this bring about difficulty in locating the ideal individuals, it places tension on brand-new hires as can not endure the speed and pressure that the organization anticipates them to birth.

Twin Reporting Lines: Novices find this business culture cumbersome as well as hard to cope with particularly as populated line relationships are implied to be weak in general as well as objective setting as well as performance examination is still done by the strong line manager. This implies that novices might shed clarity about their particular roles and also purposes specifically as populated line coverage does not keep them in direct interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had actually been guessed that the latter would take Krasnow's setting came as a strike to her spirits. Lewis might have been qualified as well as appropriate for the job however the fact that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.

Fear & Job Instability: Concern and also insecurity can be determined as 2 major issues that Lewis would certainly be handling particularly as the merger has currently be terminated and also 2 senior execs of the advertising division would certainly be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders who would certainly not just supervise of brining about a social modification however would certainly also need to verify herself in her new role.

Incompatible Management Design of Leader: Lewis's management style as well as its incompatibility with the advertising department's duty can additionally be seen as an OB difficulty particularly as she has actually been made use of to taking care of problems in the operations department where personnel are shown to focus on processes as well as get them. The marketing department on the other hand can be seen as a team of individuals that are made use of to being nurtured by Krasnow that concentrated more on result than procedures.

Interdepartmental Disputes: Interdepartmental arguments in between three divisions, marketing, merchandizing as well as operations specifically over the allowance of the advertising mix can be identified as another OB concern. The advertising division does not share the very same vision as the other 2 departments concerning the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and also procedures divisions do not agree over the marketing mix appropriation amongst one an additional either.

Disintegration in Marketing Division: Fragmentation between the marketing and advertising departments can be identified as an additional OB concern which might require further attention. The fact that the advertising and marketing areas in the marketing department are disconnected is avoiding both departments from obtaining from each various other's experience and knowledge. Combination of advertising and marketing with retailing and procedures would certainly come to be harder if the marketing department itself is degenerated which can be an additional prospective OB issue.

The Lego Group Envisioning Risks In Asia A Analysis

Numerous concepts have been used to discuss the circumstances to get further clearness concerning the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers believe that juniors are easy and also lazy, have little passion and also stand up to adjustment. The circumstance at The Lego Group Envisioning Risks In Asia A is not completely adhering to Theory X, it can be seen that new hires are locating this atmosphere rather demanding which may ultimately lead to a higher inclination of the administration towards Concept X. Even while assessing Lewis's monitoring design, concept X may have been ideal in the operations department to some degree however the Advertising and marketing department would need reliance on Theory Y in order to obtain the imagination and creativity from the groups.

Tuckman's Team effort Concept: As far as Lewis's issue regarding bringing harmony between the advertising and marketing and also advertising and marketing division is concerned, this would initially lead to conflict as discussed by Bruce Tuckman in his 'Teamwork Theory'. By integrating the marketing as well as advertising department's job, there might be the very same initial detach which can lead to the second stage of 'storming' where the teams test one another.

Bridges' Transition Design: As per William Bridge's concept (appendix 4), people are fairly uneasy with change, which is apparent by the situation at The Lego Group Envisioning Risks In Asia A The scenario can be seen as a regular training course of life if is studied according to Bridge's concept where he discusses that individuals go through 3 phases of shift when they experience adjustment. 'End, losing and Letting go', The Neutral Area and 'The New Starting' (Bridges, 2004). When people are presented with change, they go into stage one therefore there may be emotions like sadness, uncertainty, frustration, rage, fear, rejection and disorientation.The circumstance at the marketing department of The Lego Group Envisioning Risks In Asia A is similar so Lewis can get comfy with the concept that it is not amazing habits. In the second phase, there may be a demand to connect the space between the new as well as old society so Lewis may need to encounter this challenge once Krasnow leaves. There might be low spirits and also reduced productivity at this phase which ought to not be taken as a setback. It is during this phase that Lewis will certainly need to provide guidance to the division to ensure that they can locate a sense of direction. It can be seen how Krasnow has actually already made this change much easier by making Lewis get associated with the department a year prior to his real separation. According to Bridges' Version, phase three will bring about visibility to knowing, High energy and dedication as people will accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has reviews the importance of 'safety and security needs as being a reduced level need of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel secure as well as out of risk' is at the 2nd degree of requirements. Before a staff member can be made to develop emotionally, he requires to have his 'Physiological 'and also 'Safety' needs met.

SWOT Analysis for The Lego Group Envisioning Risks In Asia A Case Study

Effects of Analysis.

The OB analysis has actually checked out different theories to recognize how to manage the present circumstance handy. The following 3 choices have actually been recommended to assist Lewis manage the business challenges in the advertising department. Each of these alternatives has actually been proposed for easing the change needed to bring the marketing department in line with the needs of the market as well as for making the social modification that would certainly comply with when the present leader leaves.

Combination of marketing and advertising features. Separating Adverting as well as Manufacturing functions. Integration of Marketing with Workflow.

Assessment of Alternatives.

Combination of Advertising & Advertising Functions: The in-house advertising and marketing agency of The Lego Group Envisioning Risks In Asia A is already stamina for the organization in regards to conserving up on expenses connected to advertising and marketing and also promotion. Given that no new employment has actually been done after Bridget Cole's separation with the reporting line being straight assigned to Krasnow for the advertising function, this is a desirable chance for integrating the advertising and marketing features. Judith Shapiro who has earlier been interviewed by Lewis during the earlier merging days has experience in business-to-business advertising along with company and retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to manage both marketing and advertising features.

The benefit of this technique is that it will certainly integrate both features while minimizing the need for working with an additional resource for marketing. Lewis would be heading the advertising and marketing division as well as in any kind of case her substitute would certainly be required for the existing duty that she is performing. The negative aspect of this option is that external hiring may produce animosity from inner personnel who may be considering the position of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and Manufacturing: Given the competitive stress as well as high quality work called for from the advertising agency, it is advised that Lewis needs to allow the manufacturing system to be a separate function from the marketing system. Because the majority of marketing agencies had these two functions as separate devices, it makes more sense to follow the standard.

Combination of Advertising with Procedures: Since Lewis is currently caring for the advertising and also operations divisions simultaneously; it makes good sense to incorporate the two features considering that she has actually been successfully dealing with both ends. The fact that the two departments currently have major differences over allowance of sources recommends that this assimilation might be able to produce harmony especially as Lewis would certainly be heading both ends.However there are different disadvantages of this action particularly as it would certainly put too much worry over Lewis's shoulders. The truth that Lewis needs to adjust her management style for the marketing department suggests that these two departments would be culturally varied. Lewis may not be able to use one type of leadership style to both departments which can result in inefficiency in either one of the 2 features.


An evaluation of the three choices suggests that integration of advertising and marketing and also operations would not be a practical relocation due to the vast distinctions in between the two divisions despite the reality that presently Lewis is handling both. While separation of the production function may have been a positive step for the marketing department, the truth that it would suggest putting a 3rd feature under Lewis's wing suggests this ought to be stayed clear of.

Activity Plan.
Lewis will take over the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

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

Lewis will certainly separate herself from operations.

A democratic management style with employee empowerment will certainly be utilized in marketing division.

Open up door policy and emphasis on cross departmental communication will certainly be aimed at eliminating discord.

Backup strategy.

If the assimilation does not work out as prepared, a contingency plan would adhere to which would certainly divide the production feature from the advertising and marketing function to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising division without an SVP. Because case the production function will most definitely be separated by putting it under an SVP production.