Valjibhai Stones Case Study Help


Home >> Harvard >> Valjibhai Stones >>

Valjibhai Stones Case Study Analysis

Background and Facts

Valjibhai Stones a workplace materials store for little and also moderate sized organisations has actually just recently been associated with preparing for a merging with its rival House Deport, which has affected performance levels in departmentswith the senior manager associated with legal difficulties presented by the government Profession Compensation. With the Marketing Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the future. With obstacles in the form of a prospective social adjustment and also low employee morale, the organization needs a full reengineering initiative at the advertising division.

Issue Statement
Porter's 5 Forces Analysis
The potential cultural change at the marketing division of Valjibhai Stones is raising unpredictability in the workplace leading to numerous challenges for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting critical choices considering that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Trade Commission's intervention while doing so. Provided the reality that the shop has an international presence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these nations might be able to influence performance or critical objectives. Federal Trade Compensation's antitrust fit against the merger used up useful time of the company's senior management suggesting that 'political' factors can have major ramifications for an international company.

Economic Factors: Economic factors such as the emergence of small companies in the worldwide scenario suggest that Valjibhai Stones is flourishing in an environment where there is potential development of organisations. In addition to this, truth that shop customers are mostly trying to find workplace materials for office suggests that the marketplace has an increasing trend of business owners and home based services.

Social factors: Social fads in the economic situation reveal that consumers are searching for convenience in addition to appealing prices. Marketing research shows how the customer for Valjibhai Stones lacks understanding about locating options which can use a mix of benefit as well as inexpensive.

Technological factors: Innovation plays an important duty in Valjibhai Stones's company approach especially as the organization is piloting Technology centers which would certainly supply modern technology sales as well as support in the type of memory upgrades, outer installments. (Recap of BUG in appendix 2).

OB Issues and also Effects.

Several underlying Business Actions problems can be seen in Valjibhai Stones's case as highlighted in this section.

Apprehensions regarding social adjustment: There is worry regarding a cultural adjustment that would certainly take place as soon as Todd Krasnow leaves from his position as the Executive Vice President of Marketing with the majority of the staff members currently showing discontent over this possible move. This anticipated modification has created tension in the work environment which has actually been paired with the past stress and anxiety of preparing the firm for a potential merger with Residence Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is scarcity of personnel that can match the stressful setting of a hectic organization. Not just does this bring about difficulty in finding the ideal individuals, it places anxiety on brand-new hires as can not withstand the rate as well as pressure that the company expects them to birth.

Twin Reporting Lines: Novices discover this business society troublesome as well as tough to deal with specifically as populated line relationships are indicated to be weaker generally as well as unbiased setting as well as efficiency evaluation is still done by the solid line manager. This indicates that newcomers could shed clearness concerning their particular duties and also objectives especially as populated line coverage does not maintain them in straight interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles although it had been guessed that the last would take Krasnow's setting came as a strike to her spirits. Lewis might have been qualified and also suitable for the job however the reality that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Job Instability: Concern as well as insecurity can be recognized as 2 significant concerns that Lewis would certainly be dealing with specifically as the merging has actually now be cancelled and two elderly execs of the advertising department would certainly be leaving. The whole responsibility of the division would be falling on Lewis's shoulders that would not just be in charge of brining concerning a social change yet would certainly also have to show herself in her new duty.

Incompatible Administration Style of Leader: Lewis's management design and its incompatibility with the advertising and marketing department's function can additionally be seen as an OB obstacle particularly as she has actually been utilized to managing problems in the operations division where employees are shown to focus on procedures as well as get them. The advertising division on the other hand can be seen as a group of people that are used to being supported by Krasnow who concentrated extra on result than processes.

Interdepartmental Differences: Interdepartmental arguments in between three divisions, advertising and marketing, merchandizing and also operations respectively over the allowance of the advertising and marketing mix can be identified as another OB issue. Although the advertising and marketing department does not share the very same vision as the other two divisions concerning the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and operations departments do not agree over the advertising and marketing mix allowance amongst one another either.

Disintegration in Advertising And Marketing Department: Fragmentation between the marketing and advertising divisions can be identified as one more OB concern which can require further focus. The reality that the advertising and marketing sections in the advertising and marketing division are detached is preventing both divisions from obtaining from each various other's experience and proficiency. Combination of marketing with retailing as well as operations would certainly become more difficult if the advertising division itself is degenerated which can be one more prospective OB worry.

Valjibhai Stones Analysis

Numerous concepts have actually been used to describe the scenarios to get additional quality about the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that subordinates are easy as well as careless, have little ambition as well as resist modification. The circumstance at Valjibhai Stones is not entirely complying with Theory X, it can be seen that brand-new hires are discovering this atmosphere rather demanding which may ultimately lead to a better disposition of the monitoring in the direction of Concept X. Even while analyzing Lewis's management style, concept X might have been appropriate in the operations division to some degree yet the Advertising and marketing division would need reliance on Theory Y in order to get the imagination as well as originality from the teams.

Tuckman's Synergy Theory: Regarding Lewis's problem regarding bringing consistency in between the advertising and marketing division is concerned, this would initially result in contrast as talked about by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, during the initial phase of team growth, individuals might not bond, as they are busy finding their place in the team. By combining the advertising and marketing division's work, there might be the same preliminary disconnect which can bring about the second stage of 'storming' where the groups challenge one another. It is only throughout the third stage or 'norming' when they would come together to share ideas before the group can bring about harmony in the fourth phase 'executing'.

When individuals are offered with change, they enter phase one and also so there may be feelings like despair, unpredictability, irritation, rage, worry, denial and disorientation.The scenario at the advertising department of Valjibhai Stones is comparable so Lewis can get comfortable with the idea that it is not remarkable habits. It is during this stage that Lewis will certainly have to provide advice to the department so that they can locate a sense of direction. It can be seen how Krasnow has currently made this change much easier by making Lewis obtain entailed in the department a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has reviews the relevance of 'safety and security requires as being a lower degree need of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel safe and secure and also out of threat' is at the second degree of requirements. Before an employee can be made to create mentally, he requires to have his 'Physiological 'and 'Safety and security' requires fulfilled.

SWOT Analysis for Valjibhai Stones Case Study

Implication of Analysis.

The OB analysis has checked out different concepts to understand exactly how to manage the existing scenario at hand. The adhering to 3 alternatives have actually been recommended to assist Lewis take care of the business obstacles in the advertising division. Each of these options has been proposed for relieving the transition needed to bring the marketing division in line with the requirements of the market and also for making the cultural modification that would adhere to when the current leader leaves.

Combination of advertising and marketing features. Dividing Adverting as well as Production features. Integration of Advertising with Procedures.

Assessment of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merging days has proficiency in business-to-business advertising and marketing along with company and retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to handle both advertising and marketing as well as marketing features.

The benefit of this method is that it will certainly incorporate the two functions while reducing the need for hiring an added source for advertising. In addition to this, Lewis would be heading the marketing department as well as in any case her replacement would be needed for the existing function that she is performing. The negative aspect of this option is that external hiring may cause animosity from inner employees that may be eying the setting of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and Manufacturing: Provided the affordable pressures and also excellent quality job called for from the advertising agency, it is recommended that Lewis should permit the production system to be a separate function from the marketing system. Because most advertising agencies had these two features as separate devices, it makes more sense to adhere to the standard. Along with this, both functions might have the ability to focus on their core turns on a lot more successfully. The disadvantage of this technique would be that additional prices would have to be birthed for establishing up separate manufacturing functions. A manufacturing head may have to be employed which could boost overheads for the company.

Assimilation of Advertising with Operations: Given that Lewis is already taking care of the advertising and marketing and also procedures departments concurrently; it makes sense to integrate the two features since she has actually been successfully taking treatment of both ends. The reality that Lewis has to adapt her management design for the advertising and marketing division recommends that these 2 divisions would certainly be culturally varied.


An assessment of the 3 options shows that assimilation of advertising and also operations would certainly not be a practical relocation due to the substantial differences in between the two divisions despite the truth that currently Lewis is handling both. While separation of the production function may have been a desirable relocation for the marketing division, the fact that it would suggest positioning a 3rd function under Lewis's wing implies this ought to be stayed clear of.

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

Marketing and advertising functions would be merged.

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

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

Lewis will divide herself from procedures.

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

Open door plan as well as emphasis on cross departmental communication will certainly be aimed at eliminating disharmony.

Contingency strategy.

If the combination does not work out as intended, a contingency strategy would follow which would certainly separate the production function from the marketing function to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the manufacturing feature will definitely be divided by positioning it under an SVP manufacturing.