The Xiangyang Market Case Study Analysis


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The Xiangyang Market Case Study Analysis

Background and Facts

The Xiangyang Market an office products retailer for small as well as average sized organisations has lately been involved in preparing for a merger with its rival Home Deport, which has impacted efficiency degrees in departmentswith the elderly supervisor involved in legal complications presented by the federal Trade Compensation. With the Advertising Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the near future. With challenges in the type of a possible social modification and also low employee spirits, the company wants a complete reengineering effort at the advertising division.

Problem Statement
Porter's 5 Forces Analysis
The possible social modification at the advertising department of The Xiangyang Market is enhancing uncertainty in the workplace leading to 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 significant function in influencing strategic decisions given that Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Profession Compensation's treatment while doing so. Provided the truth that the store has a worldwide existence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries might be able to influence efficiency or critical goals. Federal Profession Compensation's antitrust match against the merging took up valuable time of the organization's elderly monitoring recommending that 'political' factors can have significant ramifications for a global business.

Economic Factors: Economic factors such as the emergence of local business in the global scenario suggest that The Xiangyang Market is flourishing in an atmosphere where there is possible development of businesses. Fact that shop clients are primarily looking for office products for residence offices suggests that the market has a rising pattern of entrepreneurs and house based businesses.

Social factors: Social patterns in the economy reveal that consumers are looking for ease along with appealing rates. Market research demonstrates how the client for The Xiangyang Market lacks recognition concerning locating solutions which can offer a combination of convenience as well as low costs.

Technological factors: Modern technology plays a crucial function in The Xiangyang Market's service approach specifically as the organization is piloting Technology centers which would certainly use technology sales and support in the type of memory upgrades, peripheral setups. (Recap of PEST in appendix 2).

OB Issues as well as Effects.

Several underlying Business Actions issues can be seen in The Xiangyang Market's case as highlighted in this section.

Apprehensions concerning cultural adjustment: There is apprehension regarding a social adjustment that would certainly occur as soon as Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with most of the team member currently showing discontent over this potential move. This expected adjustment has actually produced stress and anxiety in the workplace which has actually been paired with the previous tension of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is scarcity of workers that can match the demanding setting of a hectic organization. Not only does this bring about problem in finding the appropriate people, it puts anxiety on brand-new hires as can not stand up to the speed and also pressure that the organization expects them to birth.

Twin Reporting Lines: Newbies locate this business culture difficult as well as tough to deal with especially as populated line relationships are indicated to be weaker as a whole as well as objective setup as well as efficiency analysis is still done by the solid line supervisor. This means that newcomers could shed clarity regarding their corresponding functions and also purposes especially as dotted line reporting does not maintain them in straight communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had actually been hypothesized that the last would take Krasnow's setting came as a strike to her spirits. Lewis may have been capable as well as suitable for the work however the fact that Kransnow's separation would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Job Insecurity: Worry and also insecurity can be determined as 2 significant problems that Lewis would be handling specifically as the merging has actually now be terminated and two elderly executives of the marketing division would be leaving. The whole responsibility of the division would certainly be falling on Lewis's shoulders that would certainly not simply be in charge of brining concerning a social modification yet would also have to show herself in her new function.

Inappropriate Monitoring Style of Leader: Lewis's management style and also its incompatibility with the marketing division's duty can also be viewed as an OB obstacle especially as she has actually been utilized to dealing with issues in the operations division where personnel are taught to focus on processes and also get them right. The marketing division on the various other hand can be viewed as a group of individuals that are used to being nurtured by Krasnow that focused much more on output than procedures.

Interdepartmental Arguments: Interdepartmental disputes in between three departments, marketing, merchandizing as well as procedures specifically over the allotment of the marketing mix can be recognized as another OB issue. Although the advertising and marketing department does not share the very same vision as the other 2 divisions regarding the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing as well as procedures divisions do not concur over the advertising and marketing mix allocation among each other either.

Fragmentation in Advertising And Marketing Department: Fragmentation between the marketing and advertising divisions can be identified as another OB problem which could need more focus. The reality that the marketing and advertising sections in the advertising division are separated is avoiding both divisions from getting from each various other's experience and competence. Integration of advertising with retailing and procedures would certainly become more difficult if the advertising and marketing department itself is broken down which can be one more potential OB problem.

The Xiangyang Market Analysis

Different theories have actually been made use of to discuss the circumstances to get more clearness concerning the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most supervisors think that staffs are passive as well as lazy, have little ambition and stand up to modification. The circumstance at The Xiangyang Market is not totally adhering to Concept X, it can be seen that brand-new hires are finding this atmosphere rather demanding which might at some point lead to a higher inclination of the management towards Theory X. Even while examining Lewis's monitoring style, concept X may have been appropriate in the operations division to some degree but the Marketing department would call for reliance on Theory Y in order to obtain the creative thinking and creativity from the groups.

Tuckman's Team effort Theory: As far as Lewis's issue about bringing harmony in between the advertising and marketing division is worried, this would initially cause contrast as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's theory shown in appendix 3, during the initial stage of team advancement, people might not bond, as they are hectic finding their location in the group. By incorporating the advertising and marketing division's work, there might be the same preliminary detach which could lead to the second phase of 'storming' where the groups challenge one another. It is only during the 3rd phase or 'norming' when they would certainly come together to share ideas before the team can bring about harmony in the 4th stage 'doing'.

When individuals are provided with modification, they get in stage one and so there might be emotions like despair, uncertainty, irritation, anger, worry, denial as well as disorientation.The scenario at the advertising and marketing division of The Xiangyang Market is comparable so Lewis can get comfy with the concept that it is not phenomenal habits. It is throughout this stage that Lewis will have to give assistance to the department so that they can find a feeling of instructions. It can be seen exactly how Krasnow has actually already made this shift less complicated by making Lewis obtain involved in the division a year prior to his real separation.
Vrio Analysis
Maslow's Demand hierarchy: The OB concern related to instability at the office has been caused first of all by the modification in monitoring as well as secondly by the reality that the merging will no longer be started. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has goes over the significance of 'safety requires as being a lower degree demand of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel secure as well as safe' is at the 2nd level of needs. Prior to a staff member can be made to establish psychologically, he requires to have his 'Physical 'as well as 'Security' requires satisfied. This indicates that unless the employees are made to feel secure regarding their present work condition in The Xiangyang Market they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for The Xiangyang Market Case Study

Implication of Analysis.

The OB analysis has looked at numerous concepts to recognize how to cope with the existing circumstance available. The complying with 3 options have actually been proposed to help Lewis handle the organizational obstacles in the marketing division. Each of these options has actually been proposed for reducing the shift required to bring the advertising department in line with the requirements of the marketplace as well as for making the social modification that would comply with as soon as the existing leader leaves.

Combination of advertising and marketing functions. Separating Adverting as well as Manufacturing functions. Combination of Advertising with Procedures.

Evaluation of Alternatives.

Integration of Marketing & Advertising And Marketing Functions: The internal advertising company of The Xiangyang Market is already toughness for the organization in regards to conserving up on overheads related to advertising and marketing and also promo. Because no new employment has actually been done after Bridget Cole's departure with the coverage line being directly assigned to Krasnow for the advertising and marketing function, this is a favorable opportunity for incorporating the advertising and marketing features. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merger days has expertise in business-to-business advertising and marketing along with firm and also retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to handle both marketing and advertising features.

The advantage of this technique is that it will certainly integrate both features while lowering the requirement for employing an added source for marketing. In addition to this, Lewis would be heading the marketing division and regardless her substitute would be required for the present function that she is carrying out. The negative aspect of this option is that external hiring might cause bitterness from inner workers who may be looking at the position of EVP after Lewis takes over Krasnow's setting.

Separating Adverting as well as Production: Provided the competitive pressures and also excellent quality work called for from the advertising agency, it is advised that Lewis should permit the manufacturing unit to be a separate function from the advertising device. Since the majority of ad agency had these 2 features as different units, it makes more feeling to comply with the norm. Both functions may be able to concentrate on their core triggers more successfully. Nevertheless, the downside of this approach would certainly be that added expenses would have to be borne for establishing separate production features. In addition to this, a manufacturing head may have to be hired which might increase expenses for the organization.

Combination of Advertising And Marketing with Operations: Given that Lewis is already caring for the advertising and marketing and procedures divisions at the same time; it makes sense to incorporate both features given that she has been efficiently caring for both ends. The fact that the two departments currently have major differences over allowance of sources suggests that this integration might be able to cause harmony specifically as Lewis would certainly be heading both ends.However there are different negative aspects of this action specifically as it would certainly place way too much concern over Lewis's shoulders. The truth that Lewis has to adjust her monitoring design for the marketing department suggests that these 2 divisions would certainly be culturally diverse. Lewis might not be able to apply one type of management design to both departments which might result in inadequacy in either one of the 2 features.


An analysis of the 3 choices shows that integration of advertising and marketing and operations would certainly not be a possible relocation due to the vast differences between the two departments regardless of the fact that currently Lewis is managing both. While splitting up of the manufacturing feature may have been a desirable relocation for the marketing division, the reality that it would mean placing a 3rd feature under Lewis's wing means this ought to be avoided.

Action Strategy.
Lewis will take over the function of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

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

Lewis will certainly separate herself from procedures.

An autonomous management design with staff member empowerment will certainly be made use of in marketing department.

Open door policy as well as focus on cross department communication will certainly be aimed at eliminating dissonance.

Backup plan.

If the combination does not exercise as prepared, a contingency strategy would follow which would divide the production function from the marketing feature to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the production feature will absolutely be separated by positioning it under an SVP production.