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Virginia Craftsmen Inc Case Study Analysis

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Virginia Craftsmen Inc Case Study Analysis

Background and Facts

Virginia Craftsmen Inc a workplace products merchant for little as well as average sized businesses has just recently been involved in planning for a merging with its competitor Home Deport, which has actually impacted performance degrees in departmentswith the elderly supervisor associated with legal difficulties presented by the government Trade Compensation. With the Advertising and marketing Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the future. With challenges in the kind of a possible social change as well as reduced staff member spirits, the organization needs a full reengineering initiative at the advertising division.

Trouble Declaration

The prospective cultural change at the advertising and marketing division of Virginia Craftsmen Inc is boosting unpredictability in the workplace resulting in numerous challenges 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 role in impacting strategic choices given that Stapes Inc. had to abandon its plans of merging with Office Deport after the Federal Profession Payment's intervention at the same time. Offered the truth that the store has a global visibility with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these countries may have the ability to impact performance or tactical goals. Federal Trade Compensation's antitrust fit versus the merging occupied useful time of the organization's senior monitoring suggesting that 'political' factors can have significant implications for a global company.

Economic Factors: Economic factors such as the emergence of small businesses in the international situation suggest that Virginia Craftsmen Inc is growing in an environment where there is potential development of companies. Truth that shop clients are mostly looking for workplace supplies for residence offices suggests that the market has a climbing trend of entrepreneurs and also house based organisations.

Social factors: Social patterns in the economy show that clients are seeking comfort in addition to attractive prices. Market research demonstrates how the customer for Virginia Craftsmen Inc does not have awareness concerning locating solutions which can use a mix of convenience as well as inexpensive.

Technological factors: Technology plays an important function in Virginia Craftsmen Inc's company approach specifically as the company is piloting Technology facilities which would provide technology sales and support in the form of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Organizational Actions problems can be seen in Virginia Craftsmen Inc's case as highlighted in this area.

Concerns about cultural change: There is apprehension regarding a social adjustment that would happen as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with most of the employee currently showing discontent over this possible move. This expected change has developed anxiety in the work environment which has been paired with the previous tension of preparing the company for a possible merger with Residence Deport.

Demanding Task Atmosphere for Newcomers: There is lack of workers that can match the stressful setting of a hectic organization. Not only does this bring about difficulty in discovering the best individuals, it puts stress on new hires as can not endure the pace and also pressure that the company anticipates them to bear.

Dual Coverage Lines: Novices find this organizational society difficult and also tough to handle particularly as dotted line relationships are indicated to be weaker generally and also objective setting and performance analysis is still done by the strong line supervisor. This means that newbies might shed clearness concerning their respective duties and goals especially as dotted line reporting does not keep them in direct communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles although it had actually been speculated that the latter would take Krasnow's setting came as an impact to her morale. Lewis may have been qualified and proper for the job however the fact that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Job Insecurity: Fear as well as insecurity can be identified as 2 significant problems that Lewis would be dealing with specifically as the merging has currently be terminated and also two elderly executives of the advertising and marketing division would be leaving. The entire obligation of the department would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining about a social modification but would certainly likewise need to prove herself in her new function.

Incompatible Management Style of Leader: Lewis's administration style as well as its conflict with the advertising division's duty can also be seen as an OB challenge especially as she has actually been used to dealing with concerns in the procedures division where personnel are taught to concentrate on processes as well as get them. The advertising and marketing division on the various other hand can be seen as a team of individuals who are used to being nurtured by Krasnow who focused much more on result than procedures.

Interdepartmental Differences: Interdepartmental differences between 3 divisions, marketing, merchandizing as well as procedures respectively over the allowance of the advertising mix can be recognized as an additional OB worry. Although the advertising and marketing department does not share the very same vision as the other two departments regarding the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing as well as operations departments do not concur over the advertising mix allowance among one another either.

Disintegration in Advertising Division: Fragmentation between the marketing and advertising divisions can be recognized as another OB problem which might need further focus. The fact that the marketing and advertising sections in the marketing department are disconnected is stopping both divisions from obtaining from each other's experience and proficiency. Combination of advertising and marketing with retailing and also procedures would become more difficult if the marketing division itself is disintegrated which can be an additional prospective OB issue.

Virginia Craftsmen Inc Analysis

Various concepts have been utilized to describe the situations to obtain additional clearness regarding the situation handy.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of supervisors think that staffs are passive and also lazy, have little aspiration and withstand modification. The circumstance at Virginia Craftsmen Inc is not entirely complying with Concept X, it can be seen that brand-new hires are discovering this setting rather stressful which might eventually lead to a better inclination of the monitoring in the direction of Concept X. Even while examining Lewis's administration style, concept X might have been ideal in the procedures department to some extent however the Advertising and marketing department would require dependence on Concept Y in order to get the creative thinking and originality from the teams.

Tuckman's Synergy Concept: As far as Lewis's worry regarding bringing consistency between the marketing and also marketing division is concerned, this would originally lead to conflict as discussed by Bruce Tuckman in his 'Team effort Concept'. By incorporating the marketing as well as marketing division's job, there might be the same initial disconnect which could lead to the 2nd phase of 'storming' where the groups test one another.

Bridges' Transition Model: According To William Bridge's theory (appendix 4), individuals are fairly unpleasant with change, which is evident by the situation at Virginia Craftsmen Inc The scenario can be seen as a normal training course of life if is examined as per Bridge's concept where he describes that individuals undergo three phases of shift when they experience modification. 'Ending, shedding and Releasing', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people are presented with modification, they get in phase one and so there may be feelings like despair, uncertainty, disappointment, temper, fear, denial and disorientation.The situation at the marketing division of Virginia Craftsmen Inc is similar so Lewis can get comfy with the concept that it is not phenomenal behavior. In the second phase, there may be a demand to connect the void in between the new and also old society so Lewis might have to encounter this challenge once Krasnow leaves. There may be reduced morale and also low efficiency at this stage which ought to not be taken as an obstacle. It is during this stage that Lewis will certainly have to give support to the department to make sure that they can discover an orientation. It can be seen how Krasnow has actually currently made this change easier by making Lewis get associated with the department a year prior to his real departure. As per Bridges' Model, phase 3 will certainly produce visibility to learning, High energy as well as dedication as people will welcome the adjustment (Bridges, 2004).

Maslow's Need hierarchy: The OB concern related to instability at the work environment has actually been set off first of all by the adjustment in administration and second of all by the fact that the merger will no longer be initiated. Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has talks about the relevance of 'safety and security needs as being a reduced degree demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel protected as well as untouched' goes to the second level of requirements. Before an employee can be made to create mentally, he requires to have his 'Physiological 'and 'Safety' needs satisfied. This suggests that unless the personnel are made to feel protected regarding their present employment status in Virginia Craftsmen Inc they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Virginia Craftsmen Inc Case Study



Implication of Analysis.

The OB analysis has actually considered various concepts to recognize exactly how to deal with the present situation available. The following three alternatives have been suggested to assist Lewis take care of the business obstacles in the advertising and marketing division. Each of these options has actually been suggested for reducing the change needed to bring the marketing division according to the demands of the marketplace and for making the cultural change that would certainly comply with when the current leader leaves.

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

Evaluation of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The internal advertising company of Virginia Craftsmen Inc is already toughness for the organization in terms of conserving up on overheads associated with advertising and also promotion. Since no brand-new recruitment has actually been done after Bridget Cole's separation with the coverage line being straight assigned to Krasnow for the marketing feature, this is a positive opportunity for incorporating the marketing and advertising features. Judith Shapiro who has earlier been talked to by Lewis during the earlier merging days has competence in business-to-business advertising and marketing along with firm as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to manage both marketing and advertising functions.

The benefit of this technique is that it will integrate both features while decreasing the demand for hiring an added source for advertising. Lewis would be heading the advertising and marketing department and in any type of case her substitute would be required for the existing role that she is carrying out. The downside of this choice is that outside hiring may bring about animosity from interior workers that might be considering the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Production: Given the affordable pressures and high quality job needed from the advertising firm, it is suggested that Lewis must allow the manufacturing system to be a different feature from the marketing unit. Since many marketing agencies had these two functions as different units, it makes more feeling to comply with the norm.

Assimilation of Marketing with Procedures: Since Lewis is currently caring for the advertising and marketing and operations divisions concurrently; it makes sense to integrate both functions given that she has actually been effectively taking care of both ends. The reality that the two divisions already have significant distinctions over allowance of resources recommends that this combination may have the ability to produce harmony specifically as Lewis would be heading both ends.However there are different negative aspects of this step specifically as it would certainly put way too much concern over Lewis's shoulders. The reality that Lewis needs to adapt her administration style for the advertising and marketing department recommends that these two departments would be culturally diverse. Lewis might not be able to apply one kind of leadership style to both divisions which could result in inadequacy in either one of the 2 features.

Recommendation.



An analysis of the three choices suggests that integration of marketing and procedures would not be a feasible move due to the vast differences in between the two divisions in spite of the reality that currently Lewis is managing both. While separation of the manufacturing feature may have been a beneficial action for the advertising and marketing division, the truth that it would mean placing a 3rd function under Lewis's wing implies this should be stayed clear of.

Action Plan.

Lewis will certainly take control of the function of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Manufacturing feature will remain part of advertising under advertising and marketing feature.

Lewis will certainly divide herself from procedures.

An autonomous management design with employee empowerment will certainly be utilized in advertising and marketing department.

Open door plan and also emphasis on cross departmental interaction will certainly be focused on getting rid of dissonance.

Backup plan.

If the integration does not exercise as planned, a contingency plan would certainly adhere to which would certainly divide the production function from the marketing feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing department without an SVP. In that case the manufacturing function will absolutely be separated by positioning it under an SVP production.