Wonder Kidz Franchise Case Study Analysis


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Background and Facts

Wonder Kidz Franchise a workplace products store for little and also moderate sized services has actually just recently been involved in planning for a merging with its competitor Home Deport, which has actually influenced performance degrees in departmentswith the elderly supervisor involved in lawful difficulties presented by the government Trade Compensation. With the Advertising Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the future. With challenges in the type of a possible social adjustment as well as reduced employee morale, the company is in need of a complete reengineering initiative at the advertising and marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The potential social change at the advertising and marketing division of Wonder Kidz Franchise is enhancing unpredictability in the workplace leading to different challenges for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting strategic decisions because Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Profession Payment's intervention while doing so. Offered the reality that the shop has a worldwide presence with branches in UK, USA, Canada as well as Germany, political consider each of these countries may be able to affect performance or calculated goals. Federal Trade Compensation's antitrust suit versus the merging used up beneficial time of the organization's elderly monitoring suggesting that 'political' factors can have significant ramifications for an international service.

Economic Factors: Economic factors such as the emergence of local business in the international circumstance suggest that Wonder Kidz Franchise is thriving in a setting where there is prospective growth of services. Reality that store customers are mostly looking for workplace supplies for house workplaces recommends that the market has an increasing pattern of business owners as well as residence based services.

Social factors: Social fads in the economy show that customers are seeking benefit as well as attractive prices. Market research demonstrates how the customer for Wonder Kidz Franchise lacks awareness concerning discovering options which can offer a combination of convenience and affordable.

Technical factors: Innovation plays a vital role in Wonder Kidz Franchise's service method especially as the organization is piloting Technology facilities which would offer modern technology sales and support in the kind of memory upgrades, outer installations. (Recap of BUG in appendix 2).

OB Issues as well as Effects.

A number of underlying Organizational Habits problems can be seen in Wonder Kidz Franchise's case as highlighted in this area.

Apprehensions concerning social modification: There is apprehension about a cultural change that would certainly occur when Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with a lot of the employee already revealing unhappiness over this prospective relocation. This expected adjustment has developed stress in the work environment which has actually been combined with the previous tension of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is scarcity of employees that can match the demanding setting of a busy organization. Not just does this result in trouble in locating the appropriate people, it places stress on new hires as can not hold up against the rate as well as stress that the company anticipates them to bear.

Dual Reporting Lines: Newcomers locate this business society difficult and also difficult to deal with especially as populated line partnerships are suggested to be weak generally as well as unbiased setting and also performance assessment is still done by the solid line manager. This indicates that newbies could shed clearness about their corresponding roles and objectives particularly as populated line coverage does not keep them in straight interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles even though it had been guessed that the last would take Krasnow's position came as an impact to her spirits. Lewis might have been qualified as well as suitable for the job but the truth that Kransnow's separation would make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Concern & Task Insecurity: Fear and also instability can be identified as 2 major problems that Lewis would certainly be managing particularly as the merging has currently be cancelled and 2 elderly execs of the advertising division would certainly be leaving. The whole duty of the department would be dropping on Lewis's shoulders that would not just supervise of brining concerning a cultural adjustment but would certainly also have to verify herself in her brand-new duty.

Inappropriate Monitoring Design of Leader: Lewis's monitoring design and also its incompatibility with the advertising department's role can also be seen as an OB obstacle especially as she has been utilized to dealing with problems in the procedures division where personnel are educated to concentrate on procedures and also obtain them. The advertising division on the other hand can be seen as a group of individuals who are used to being supported by Krasnow that concentrated more on outcome than processes.

Interdepartmental Disagreements: Interdepartmental differences in between three divisions, advertising, merchandizing as well as procedures respectively over the allowance of the marketing mix can be recognized as another OB worry. The advertising and marketing department does not share the very same vision as the various other 2 divisions relating to the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and also procedures departments do not agree over the advertising and marketing mix allotment among one another either.

Disintegration in Advertising Department: Fragmentation in between the marketing and advertising divisions can be determined as one more OB issue which might require additional focus. The fact that the advertising and marketing sections in the advertising division are disconnected is stopping both divisions from acquiring from each various other's experience as well as knowledge. Integration of marketing with merchandising and operations would come to be harder if the advertising and marketing department itself is disintegrated which can be one more possible OB worry.

Wonder Kidz Franchise Analysis

Numerous concepts have been used to clarify the scenarios to get further clearness about the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that juniors are easy and lazy, have little aspiration as well as withstand adjustment. The circumstance at Wonder Kidz Franchise is not totally following Concept X, it can be seen that brand-new hires are discovering this atmosphere instead demanding which might ultimately lead to a greater inclination of the management towards Concept X. Even while assessing Lewis's management style, theory X might have been suitable in the operations division to some level yet the Marketing division would need dependence on Theory Y in order to get the creative thinking and also originality from the groups.

Tuckman's Synergy Concept: As far as Lewis's worry concerning bringing harmony in between the advertising and marketing division is concerned, this would at first result in contrast as reviewed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, during the initial stage of group development, people may not bond, as they are active discovering their area in the team. By integrating the marketing and advertising division's work, there may be the same initial separate which might lead to the 2nd phase of 'storming' where the groups challenge each other. Nevertheless, it is just during the 3rd phase or 'norming' when they would integrate to share suggestions before the team can produce harmony in the fourth phase 'carrying out'.

When individuals are provided with adjustment, they enter stage one and also so there may be emotions like despair, uncertainty, aggravation, temper, fear, rejection and also disorientation.The circumstance at the advertising department of Wonder Kidz Franchise is similar so Lewis can obtain comfy with the idea that it is not remarkable actions. It is throughout this phase that Lewis will have to give assistance to the department so that they can locate a feeling of direction. It can be seen just how Krasnow has actually currently made this transition easier by making Lewis get entailed in the department a year prior to his actual separation.
Vrio Analysis
Maslow's Need hierarchy: The OB issue related to insecurity at the office has actually been set off to start with by the change in administration and also second of all by the truth that the merging will certainly no longer be launched. Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has talks about the value of 'protection needs as being a reduced degree requirement of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to really feel safe and untouched' goes to the second level of needs. Prior to an employee can be made to create mentally, he needs to have his 'Physical 'as well as 'Safety and security' requires satisfied. This indicates that unless the personnel are made to feel safe and secure regarding their current employment condition in Wonder Kidz Franchise they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Wonder Kidz Franchise Case Study

Effects of Analysis.

The OB analysis has taken a look at different theories to understand how to deal with the existing situation available. The complying with three options have been suggested to help Lewis handle the organizational obstacles in the marketing division. Each of these options has been proposed for easing the change needed to bring the advertising and marketing department in accordance with the requirements of the market and also for making the social change that would adhere to as soon as the current leader leaves.

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

Analysis of Alternatives.

Integration of Advertising & Marketing Functions: The in-house advertising firm of Wonder Kidz Franchise is already toughness for the organization in regards to conserving up on expenses associated with advertising and marketing and promo. Given that no brand-new employment has actually been done after Bridget Cole's separation with the coverage line being straight assigned to Krasnow for the advertising feature, this is a favorable chance for incorporating the advertising and marketing features. Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merger days has proficiency in business-to-business advertising together with company and retail advertising experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to handle both advertising and marketing functions.

The advantage of this technique is that it will certainly incorporate the two functions while decreasing the demand for employing an additional resource for marketing. Along with this, Lewis would be heading the advertising department and also regardless her replacement would be needed for the existing function that she is performing. The downside of this alternative is that external hiring may bring about resentment from internal workers who might be eying the setting of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting as well as Manufacturing: Given the competitive pressures and also high quality work needed from the marketing firm, it is suggested that Lewis should allow the production system to be a separate function from the advertising and marketing system. Because the majority of advertising firms had these 2 features as separate devices, it makes more sense to comply with the standard.

Combination of Advertising And Marketing with Operations: Because Lewis is currently taking treatment of the marketing and also operations departments all at once; it makes sense to incorporate the 2 features given that she has actually been efficiently taking treatment of both ends. The truth that Lewis has to adapt her monitoring design for the advertising and marketing department recommends that these two departments would be culturally varied.


An examination of the 3 options suggests that assimilation of advertising and marketing and procedures would certainly not be a feasible step due to the vast distinctions in between both departments although that currently Lewis is taking care of both. While separation of the manufacturing function might have been a desirable step for the advertising division, the fact that it would certainly imply putting a 3rd feature under Lewis's wing implies this should be stayed clear of also. The integration of the advertising and marketing department is the best choice in regards to obtaining the optimal results from the division. An action plan for this option is discussed listed below.

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

Advertising and Marketing functions would be merged.

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

Production function will remain part of advertising under advertising and marketing function.

Lewis will separate herself from procedures.

A democratic management style with employee empowerment will be utilized in advertising department.

Open door plan and focus on cross department communication will certainly be focused on removing discord.

Backup strategy.

If the combination does not exercise as intended, a backup plan would adhere to which would certainly divide the production function from the marketing feature to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising department without an SVP. In that case the production function will definitely be separated by positioning it under an SVP production.