Thomas Cook Group On The Brink A Case Study Help


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Thomas Cook Group On The Brink A Case Study Solution

Background and Facts

Thomas Cook Group On The Brink A a workplace materials merchant for little and moderate sized companies has actually recently been associated with planning for a merging with its competitor House Deport, which has impacted efficiency degrees in departmentswith the senior supervisor involved in legal difficulties presented by the federal Trade Payment. With the Advertising Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the role in the future. With obstacles in the kind of a possible social adjustment as well as reduced employee spirits, the company is in need of a total reengineering effort at the advertising division.

Trouble Statement
Porter's 5 Forces Analysis
The prospective social change at the advertising department of Thomas Cook Group On The Brink A is enhancing uncertainty in the working environment resulting in various difficulties for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting critical decisions given that Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Trade Compensation's intervention in the process. Given the reality that the shop has a worldwide visibility with branches in UK, USA, Canada as well as Germany, political factors in each of these nations might be able to influence performance or critical goals. Federal Profession Compensation's antitrust suit versus the merger took up valuable time of the company's senior administration suggesting that 'political' factors can have significant implications for an international company.

Economic Factors: Economic factors such as the appearance of small businesses in the global scenario recommend that Thomas Cook Group On The Brink A is flourishing in an environment where there is possible growth of organisations. In addition to this, fact that store consumers are primarily trying to find office supplies for home offices recommends that the market has a rising pattern of business owners and also home based companies.

Social factors: Social trends in the economy reveal that clients are searching for benefit in addition to attractive rates. Market research shows how the client for Thomas Cook Group On The Brink A does not have understanding regarding discovering remedies which can supply a combination of convenience and low costs.

Technical factors: Technology plays a vital function in Thomas Cook Group On The Brink A's company strategy especially as the company is piloting Innovation facilities which would use modern technology sales as well as assistance in the form of memory upgrades, outer setups. (Summary of INSECT in appendix 2).

OB Issues and Effects.

Several underlying Organizational Actions problems can be seen in Thomas Cook Group On The Brink A's case as highlighted in this area.

Worries concerning social change: There is concern about a social modification that would certainly happen as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising And Marketing with the majority of the team member already revealing unhappiness over this prospective relocation. This anticipated modification has developed anxiety in the workplace which has been combined with the past stress and anxiety of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is shortage of employees that can match the demanding setting of a busy company. Not only does this lead to difficulty in discovering the right individuals, it puts stress and anxiety on new hires as can not hold up against the speed and also pressure that the organization expects them to birth.

Dual Reporting Lines: Newcomers locate this organizational culture cumbersome as well as difficult to cope with particularly as dotted line connections are meant to be weak as a whole and also objective setup and performance analysis is still done by the strong line manager. This suggests that newbies could shed clearness regarding their corresponding duties and objectives specifically as dotted line reporting does not keep 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 speculated that the latter would take Krasnow's placement came as a blow to her spirits. Lewis may have been capable and also suitable for the work yet the truth that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Fear & Task Instability: Concern as well as instability can be recognized as 2 significant worries that Lewis would certainly be taking care of particularly as the merging has now be terminated and also 2 senior executives of the advertising department would be leaving. The entire obligation of the department would be dropping on Lewis's shoulders who would not simply supervise of brining concerning a cultural change however would additionally need to confirm herself in her brand-new function.

Incompatible Management Design of Leader: Lewis's administration style and its incompatibility with the advertising and marketing department's function can additionally be seen as an OB difficulty specifically as she has been used to dealing with problems in the procedures division where workers are shown to focus on procedures as well as get them. The marketing division on the other hand can be seen as a group of people who are used to being nurtured by Krasnow who focused more on output than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements in between 3 departments, marketing, merchandizing and also operations specifically over the appropriation of the marketing mix can be determined as an additional OB issue. The advertising department does not share the same vision as the other 2 departments pertaining to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and also operations divisions do not concur over the marketing mix allotment among one an additional either.

Disintegration in Advertising And Marketing Division: Fragmentation between the advertising and marketing divisions can be identified as another OB problem which could need further focus. The fact that the marketing and advertising sections in the marketing division are separated is protecting against both divisions from acquiring from each various other's experience and know-how. Assimilation of advertising and marketing with merchandising and also procedures would certainly come to be more difficult if the advertising and marketing department itself is degenerated which can be another prospective OB worry.

Thomas Cook Group On The Brink A Analysis

Different concepts have been utilized to explain the scenarios to obtain additional quality regarding the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that subordinates are easy and careless, have little aspiration and also withstand modification. The difficult variation of this concept stressed browbeating, limited controls, threats as well as punishments. Gradually it generates low efficiency, refined sabotage as well as competition (Bargain, 2003). The circumstance at Thomas Cook Group On The Brink A is not completely adhering to Theory X, it can be seen that new hires are locating this environment instead difficult which might eventually lead to a higher disposition of the management in the direction of Theory X. According to McGregor's advocated sight, which he called Theory Y, the vital task of the monitoring is to set up organizational problems to ensure that people can attain their very own goals best by routing their efforts towards organizational benefits. If people locate no satisfaction in their job, the management would certainly have little option but to depend on theory X and outside control (Deal, 2003). Also while assessing Lewis's management style, theory X might have been suitable in the operations department somewhat yet the Advertising department would certainly call for dependence on Concept Y so as to get the imagination as well as creativity from the teams.

Tuckman's Synergy Concept: As much as Lewis's problem regarding bringing consistency between the advertising and advertising department is worried, this would originally lead to conflict as discussed by Bruce Tuckman in his 'Synergy Concept'. By incorporating the advertising and advertising division's work, there may be the same initial disconnect which can lead to the 2nd phase of 'storming' where the teams test one an additional.

Bridges' Transition Model: According To William Bridge's theory (appendix 4), people are quite awkward with adjustment, which is apparent by the situation at Thomas Cook Group On The Brink A The situation can be viewed as a normal training course of life if is researched as per Bridge's concept where he discusses that individuals go through three phases of change when they experience adjustment. 'End, shedding and also Letting go', The Neutral Area and 'The New Starting' (Bridges, 2004). When people are presented with change, they enter phase one therefore there may be emotions like sadness, uncertainty, frustration, anger, fear, rejection and also disorientation.The situation at the advertising division of Thomas Cook Group On The Brink A is comparable so Lewis can get comfortable with the concept that it is not remarkable behavior. In the 2nd stage, there may be a requirement to bridge the void between the brand-new and also old society so Lewis might have to encounter this experience when Krasnow leaves. There may be reduced morale as well as low productivity at this phase which must not be taken as a setback. It is throughout this stage that Lewis will need to give assistance to the division to make sure that they can locate a sense of direction. It can be seen how Krasnow has already made this transition much easier by making Lewis get involved in the division a year prior to his actual departure. Based on Bridges' Design, stage 3 will certainly bring about visibility to understanding, High power and also commitment as individuals will certainly welcome the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has reviews the significance of 'safety requires as being a reduced level need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel secure as well as out of risk' is at the 2nd level of needs. Prior to an employee can be made to create mentally, he requires to have his 'Physical 'and 'Safety and security' needs satisfied.

SWOT Analysis for Thomas Cook Group On The Brink A Case Study

Implication of Analysis.

The OB analysis has taken a look at different concepts to understand how to manage the present scenario available. The adhering to 3 choices have actually been recommended to assist Lewis manage the organizational obstacles in the advertising department. Each of these alternatives has actually been proposed for relieving the transition needed to bring the advertising and marketing department in line with the needs of the market and for making the cultural adjustment that would certainly follow once the present leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting and also Manufacturing features. Combination of Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis during the earlier merger days has proficiency in business-to-business advertising along with firm and retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to take care of both marketing and marketing functions.

The benefit of this technique is that it will certainly incorporate the two functions while decreasing the requirement for employing an additional resource for marketing. Lewis would be heading the advertising and marketing department and in any case her replacement would be required for the present role that she is performing. The drawback of this option is that outside hiring may produce bitterness from internal personnel who may be eying the setting of EVP after Lewis takes over Krasnow's setting.

Separating Adverting as well as Production: Offered the competitive stress and also high quality work called for from the advertising company, it is advised that Lewis should enable the manufacturing unit to be a different function from the advertising device. Because a lot of advertising companies had these two functions as different units, it makes more sense to follow the standard.

Combination of Advertising And Marketing with Procedures: Considering that Lewis is already caring for the marketing and also operations divisions at the same time; it makes good sense to incorporate the two features because she has actually been effectively dealing with both ends. The fact that both divisions already have major distinctions over allowance of resources recommends that this assimilation may have the ability to produce harmony especially as Lewis would be heading both ends.However there are various drawbacks of this action specifically as it would put way too much burden over Lewis's shoulders. The truth that Lewis needs to adjust her management design for the advertising and marketing department recommends that these 2 departments would be culturally varied. Along with this, Lewis may not be able to use one kind of management design to both divisions which could lead to ineffectiveness in either among the two features.


An analysis of the 3 alternatives shows that combination of advertising and marketing and operations would not be a practical action due to the vast differences in between both divisions despite the fact that presently Lewis is dealing with both. While splitting up of the manufacturing feature may have been a beneficial action for the advertising department, the reality that it would indicate positioning a 3rd feature under Lewis's wing implies this need to be prevented. The combination of the marketing division is the very best option in regards to obtaining the optimum results from the division. An action prepare for this alternative is gone over listed below.

Activity Strategy.
Lewis will take control of the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Manufacturing function will certainly continue to be part of marketing under advertising function.

Lewis will separate herself from procedures.

An autonomous leadership style with employee empowerment will certainly be made use of in advertising division.

Open door plan and focus on cross departmental communication will certainly be aimed at removing discord.

Contingency plan.

If the combination does not exercise as planned, a backup strategy would certainly adhere to which would separate the manufacturing feature from the marketing feature to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the marketing division without an SVP. In that case the manufacturing function will most definitely be separated by putting it under an SVP manufacturing.