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Wunnerful Wunnerful Ownership At The Welk Hospitality Group Case Study Analysis

CASE ANALYSIS

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Wunnerful Wunnerful Ownership At The Welk Hospitality Group Case Study Analysis

Background and Facts

Wunnerful Wunnerful Ownership At The Welk Hospitality Group an office products retailer for tiny and average sized services has actually just recently been associated with planning for a merging with its competitor House Deport, which has affected efficiency levels in departmentswith the senior manager involved in legal problems put forth by the federal Trade Commission. With the Marketing Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the current head of operations has been asked to take the function in the future. With difficulties in the kind of a prospective social modification and also reduced employee spirits, the company needs a full reengineering effort at the advertising department.

Trouble Statement
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing division of Wunnerful Wunnerful Ownership At The Welk Hospitality Group is boosting unpredictability in the workplace resulting in different obstacles for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing tactical decisions because Stapes Inc. had to desert its strategies of combining with Workplace Deport after the Federal Profession Compensation's treatment while doing so. Offered the fact that the store has an international 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 tactical objectives. Federal Profession Payment's antitrust match against the merging took up beneficial time of the organization's elderly administration suggesting that 'political' factors can have severe ramifications for an international organisation.

Economic Factors: Economic factors such as the development of small companies in the global scenario suggest that Wunnerful Wunnerful Ownership At The Welk Hospitality Group is thriving in an atmosphere where there is possible development of businesses. Fact that store customers are mainly looking for workplace products for residence workplaces recommends that the market has a climbing fad of entrepreneurs and also home based companies.

Social factors: Social patterns in the economic situation reveal that consumers are looking for benefit along with attractive rates. Market research demonstrates how the customer for Wunnerful Wunnerful Ownership At The Welk Hospitality Group does not have understanding about locating options which can provide a combination of benefit and affordable.

Technological factors: Modern technology plays a vital function in Wunnerful Wunnerful Ownership At The Welk Hospitality Group's business approach especially as the company is piloting Innovation centers which would supply innovation sales and also support in the type of memory upgrades, peripheral setups. (Recap of BUG in appendix 2).

OB Issues and also Manifestations.

A number of underlying Business Behavior concerns can be seen in Wunnerful Wunnerful Ownership At The Welk Hospitality Group's case as highlighted in this area.

Worries concerning cultural adjustment: There is apprehension about a social modification that would certainly happen as soon as Todd Krasnow leaves from his setting as the Exec Vice President of Advertising with most of the personnel currently showing unhappiness over this potential action. This anticipated change has developed anxiety in the work environment which has been coupled with the past tension of preparing the firm for a potential merger with Home Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is shortage of employees that can match the stressful atmosphere of a fast-paced company. Not just does this lead to problem in finding the ideal people, it puts anxiety on brand-new hires as can not stand up to the speed as well as stress that the company expects them to bear.

Twin Reporting Lines: Novices locate this organizational culture cumbersome as well as difficult to cope with particularly as populated line partnerships are suggested to be weaker as a whole and unbiased setup as well as performance assessment is still done by the strong line supervisor. This suggests that beginners might lose clarity concerning their particular duties and goals specifically as populated line coverage does not maintain them in straight interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles despite the fact that it had actually been hypothesized that the latter would take Krasnow's position came as an impact to her spirits. Lewis might have been qualified and suitable for the work however the fact 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: Worry and also instability can be recognized as 2 significant concerns that Lewis would be taking care of particularly as the merger has currently be terminated as well as two elderly execs of the advertising and marketing division would be leaving. The whole duty of the department would be dropping on Lewis's shoulders who would not just be in charge of brining concerning a social modification but would additionally need to verify herself in her brand-new function.

Incompatible Management Design of Leader: Lewis's management style as well as its incompatibility with the marketing department's duty can also be seen as an OB difficulty particularly as she has been made use of to managing issues in the procedures division where workers are instructed to focus on procedures and get them. The advertising and marketing division on the various other hand can be viewed as a team of people that are made use of to being supported by Krasnow who focused a lot more on outcome than processes.

Interdepartmental Disputes: Interdepartmental arguments in between three departments, marketing, merchandizing as well as procedures respectively over the appropriation of the advertising and marketing mix can be identified as one more OB concern. The advertising and marketing department does not share the very same vision as the other two divisions pertaining to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing as well as procedures departments do not agree over the advertising mix allotment among one an additional either.

Disintegration in Advertising And Marketing Department: Disintegration in between the advertising and marketing departments can be recognized as another OB issue which could need more focus. The fact that the marketing and advertising sections in the advertising department are disconnected is avoiding both departments from obtaining from each other's experience and also expertise. Assimilation of marketing with retailing and also procedures would come to be more difficult if the marketing department itself is broken down which can be another potential OB issue.

Wunnerful Wunnerful Ownership At The Welk Hospitality Group Analysis

Various theories have been made use of to discuss the circumstances to obtain more clearness about the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that subordinates are passive and also lazy, have little ambition as well as resist adjustment. The circumstance at Wunnerful Wunnerful Ownership At The Welk Hospitality Group is not completely following Theory X, it can be seen that brand-new hires are locating this setting rather demanding which might at some point lead to a greater disposition of the administration in the direction of Theory X. Also while assessing Lewis's management design, concept X may have been appropriate in the operations department to some degree yet the Advertising and marketing department would certainly need reliance on Theory Y in order to get the creative thinking and originality from the groups.

Tuckman's Teamwork Concept: As for Lewis's problem about bringing harmony in between the advertising and marketing department is worried, this would at first result in clash as discussed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, during the initial stage of team advancement, individuals might not bond, as they are busy finding their area in the team. By incorporating the advertising and marketing department's work, there may be the same preliminary disconnect which might result in the 2nd phase of 'storming' where the teams challenge each other. It is only during the 3rd phase or 'norming' when they would certainly come together to share suggestions prior to the group can bring around harmony in the fourth phase 'doing'.

When individuals are provided with change, they go into phase one as well as so there may be emotions like despair, uncertainty, disappointment, rage, concern, denial as well as disorientation.The scenario at the advertising department of Wunnerful Wunnerful Ownership At The Welk Hospitality Group is comparable so Lewis can obtain comfy with the concept that it is not remarkable behavior. It is throughout this stage that Lewis will have to provide advice to the department so that they can discover a sense of instructions. It can be seen just how Krasnow has already made this shift simpler by making Lewis obtain entailed in the department a year prior to his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has talks about the importance of 'protection needs as being a reduced degree demand of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel protected and also out of danger' is at the second degree of requirements. Before a staff member can be made to create emotionally, he requires to have his 'Physiological 'and 'Security' needs satisfied.

SWOT Analysis for Wunnerful Wunnerful Ownership At The Welk Hospitality Group Case Study



Effects of Analysis.

The OB analysis has actually considered various theories to comprehend exactly how to deal with the current scenario available. The adhering to 3 options have actually been recommended to assist Lewis manage the organizational challenges in the advertising and marketing division. Each of these alternatives has actually been proposed for alleviating the change required to bring the advertising and marketing department in accordance with the needs of the marketplace and for making the social modification that would adhere to as soon as the current leader leaves.

Combination of marketing and advertising features. Separating Adverting and also Manufacturing features. Assimilation of Advertising with Operations.

Evaluation of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merger days has expertise in business-to-business marketing along with agency and retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to manage both advertising and advertising features.

The advantage of this method is that it will incorporate the two functions while decreasing the need for working with an added source for marketing. Lewis would be heading the advertising division and also in any type of case her substitute would certainly be required for the current role that she is carrying out. The drawback of this choice is that exterior hiring might cause bitterness from inner employees who may be considering the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Manufacturing: Provided the affordable stress and also premium quality job called for from the ad agency, it is suggested that Lewis ought to allow the manufacturing system to be a separate feature from the marketing unit. Because many advertising agencies had these 2 features as different systems, it makes more sense to adhere to the norm. Both features might be able to focus on their core triggers more successfully. The downside of this strategy would be that additional expenses would certainly have to be birthed for establishing up different production functions. In addition to this, a production head may need to be employed which could raise overheads for the company.

Integration of Advertising And Marketing with Procedures: Because Lewis is currently taking care of the advertising and marketing and procedures departments simultaneously; it makes sense to incorporate the two features since she has been effectively taking treatment of both ends. The fact that Lewis has to adapt her management style for the advertising division recommends that these two divisions would certainly be culturally diverse.

Suggestion.



An analysis of the 3 alternatives suggests that assimilation of advertising and marketing as well as operations would certainly not be a possible step due to the large differences in between the two departments despite the fact that presently Lewis is handling both. While separation of the manufacturing function might have been a beneficial action for the advertising division, the reality that it would certainly suggest putting a third function under Lewis's wing suggests this need to be avoided also. The combination of the advertising and marketing division is the most effective choice in regards to getting the optimum arise from the department. An action plan for this choice is discussed listed below.

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

Marketing and advertising features would be merged.

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

Manufacturing function will continue to be component of advertising under advertising function.

Lewis will divide herself from procedures.

A democratic management style with staff member empowerment will be utilized in advertising and marketing division.

Open door policy and also emphasis on cross departmental interaction will be aimed at getting rid of dissonance.

Contingency strategy.

If the assimilation does not work out as prepared, a backup strategy would certainly comply with which would separate the manufacturing function from the advertising and marketing function to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising and marketing division without an SVP. In that case the production function will absolutely be divided by putting it under an SVP manufacturing.