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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 a workplace materials merchant for tiny as well as average sized services has actually lately been involved in preparing for a merger with its rival Residence Deport, which has actually affected effectiveness levels in departmentswith the senior supervisor involved in lawful complications presented by the government Profession Commission. With the Advertising and marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the future. With obstacles in the form of a possible cultural modification as well as low staff member spirits, the organization requires a total reengineering effort at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective social modification at the advertising department of Wunnerful Wunnerful Ownership At The Welk Hospitality Group is boosting uncertainty in the working environment leading to different challenges for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting calculated decisions given that Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Profession Commission's intervention in the process. Offered the fact that the store has a global presence with branches in UK, USA, Canada and Germany, political consider each of these countries may be able to impact efficiency or critical objectives. Federal Trade Payment's antitrust suit against the merging took up valuable time of the organization's elderly management suggesting that 'political' factors can have major effects for an international business.

Economic Factors: Economic factors such as the introduction of small companies in the international situation recommend that Wunnerful Wunnerful Ownership At The Welk Hospitality Group is growing in an environment where there is possible growth of businesses. Truth that shop consumers are mostly looking for workplace supplies for residence workplaces recommends that the market has an increasing pattern of business owners and also house based companies.

Social factors: Social fads in the economy show that consumers are looking for comfort along with appealing prices. Market research demonstrates how the client for Wunnerful Wunnerful Ownership At The Welk Hospitality Group does not have understanding about finding services which can provide a mix of benefit and also inexpensive.

Technological factors: Modern technology plays an essential duty in Wunnerful Wunnerful Ownership At The Welk Hospitality Group's service strategy specifically as the organization is piloting Technology centers which would offer innovation sales and support in the form of memory upgrades, peripheral installments. (Summary of INSECT in appendix 2).

OB Issues and Effects.

Numerous underlying Business Behavior issues can be seen in Wunnerful Wunnerful Ownership At The Welk Hospitality Group's case as highlighted in this section.

Apprehensions about social adjustment: There is uneasiness about a social change that would occur once Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with a lot of the employee already revealing unhappiness over this prospective move. This expected change has actually developed stress in the work environment which has been paired with the past tension of preparing the firm for a potential merger with Home Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is lack of personnel that can match the demanding atmosphere of a busy organization. Not just does this result in trouble in discovering the ideal people, it places stress on new hires as can not hold up against the speed and pressure that the organization anticipates them to bear.

Twin Reporting Lines: Novices discover this organizational society cumbersome and also tough to deal with specifically as populated line partnerships are meant to be weaker in general and also objective setup and also efficiency assessment is still done by the solid line supervisor. This indicates that beginners might shed clarity regarding their corresponding duties and purposes particularly as populated line coverage does not keep them in straight interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles even though it had been speculated that the latter would take Krasnow's position came as an impact to her morale. Lewis may have been capable as well as suitable for the job however the reality that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Concern & Work Instability: Fear and also instability can be recognized as two significant worries that Lewis would certainly be handling especially as the merger has actually currently be terminated and 2 senior execs of the advertising and marketing division would be leaving. The entire duty of the division would certainly be dropping on Lewis's shoulders who would certainly not just be in charge of brining regarding a cultural adjustment but would certainly additionally have to confirm herself in her brand-new role.

Incompatible Monitoring Style of Leader: Lewis's monitoring design and also its incompatibility with the advertising and marketing division's role can also be viewed as an OB challenge particularly as she has been utilized to managing concerns in the operations division where workers are shown to concentrate on procedures as well as obtain them right. The advertising and marketing division on the various other hand can be viewed as a team of people that are used to being nurtured by Krasnow that concentrated much more on outcome than processes.

Interdepartmental Disputes: Interdepartmental disagreements in between three departments, marketing, merchandizing and also procedures specifically over the appropriation of the advertising mix can be identified as one more OB concern. Although the marketing department does not share the very same vision as the various other two divisions regarding the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing as well as procedures departments do not concur over the advertising mix appropriation amongst one another either.

Fragmentation in Marketing Department: Fragmentation in between the marketing and advertising departments can be recognized as an additional OB concern which might need more interest. The truth that the advertising and marketing sections in the advertising department are disconnected is protecting against both divisions from gaining from each other's experience as well as knowledge. Assimilation of advertising and marketing with merchandising as well as operations would certainly become more difficult if the marketing department itself is disintegrated which can be another possible OB issue.

Wunnerful Wunnerful Ownership At The Welk Hospitality Group Analysis

Numerous concepts have been utilized to describe the scenarios to obtain more clearness regarding the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers think that juniors are easy and also careless, have little ambition and stand up to modification. The circumstance at Wunnerful Wunnerful Ownership At The Welk Hospitality Group is not completely adhering to Theory X, it can be seen that new hires are finding this environment instead stressful which might ultimately lead to a higher inclination of the administration in the direction of Theory X. Also while examining Lewis's administration style, concept X may have been ideal in the operations department to some extent but the Marketing division would certainly call for reliance on Concept Y in order to get the creative thinking as well as creativity from the teams.

Tuckman's Teamwork Theory: As far as Lewis's problem concerning bringing harmony in between the marketing and also advertising department is concerned, this would initially lead to conflict as gone over by Bruce Tuckman in his 'Synergy Concept'. By incorporating the marketing and also marketing department's work, there may be the exact same preliminary separate which could lead to the 2nd phase of 'storming' where the groups challenge one an additional.

Bridges' Transition Design: According To William Bridge's theory (appendix 4), people are rather uncomfortable with adjustment, which is noticeable by the situation at Wunnerful Wunnerful Ownership At The Welk Hospitality Group The situation can be seen as a typical course of life if is studied as per Bridge's concept where he explains that people go through 3 stages of change when they experience change. 'Closing, shedding as well as Releasing', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people exist with adjustment, they enter phase one and so there might be feelings like despair, uncertainty, disappointment, temper, fear, rejection and disorientation.The situation at the marketing division of Wunnerful Wunnerful Ownership At The Welk Hospitality Group is comparable so Lewis can obtain comfortable with the suggestion that it is not amazing habits. In the second phase, there might be a demand to connect the space in between the brand-new and old society so Lewis may need to encounter this ordeal once Krasnow leaves. There may be reduced spirits and also reduced productivity at this phase which must not be taken as a trouble. It is during this phase that Lewis will have to provide assistance to the division so that they can discover an orientation. It can be seen just how Krasnow has currently made this shift simpler by making Lewis obtain associated with the division a year before his actual departure. As per Bridges' Version, stage three will bring about openness to discovering, High power and commitment as individuals will certainly accept the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has talks about the value of 'safety requires as being a reduced degree demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel protected as well as out of threat' is at the 2nd level of demands. Before an employee can be made to create mentally, he requires to have his 'Physiological 'as well as 'Security' needs met.

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

Ramification of Analysis.

The OB analysis has taken a look at numerous concepts to understand exactly how to handle the present circumstance available. The complying with three alternatives have been proposed to aid Lewis handle the business obstacles in the marketing division. Each of these choices has actually been proposed for reducing the transition needed to bring the marketing department in accordance with the demands of the marketplace as well as for making the social adjustment that would comply with as soon as the current leader leaves.

Combination of marketing and advertising features. Separating Adverting and also Manufacturing functions. Assimilation of Advertising And Marketing with Workflow.

Examination of Alternatives.

Integration of Advertising And Marketing & Marketing Functions: The internal advertising company of Wunnerful Wunnerful Ownership At The Welk Hospitality Group is already toughness for the company in regards to saving up on expenses associated with advertising and marketing and also promotion. Considering that no new recruitment has been done after Bridget Cole's separation with the reporting line being straight appointed to Krasnow for the advertising and marketing feature, this is a favorable possibility for integrating the marketing and advertising functions. Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merger days has know-how in business-to-business advertising and marketing in addition to agency and also retail advertising experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to take care of both marketing and advertising features.

The advantage of this method is that it will certainly integrate the two functions while minimizing the demand for working with an added resource for advertising. In addition to this, Lewis would be heading the advertising and marketing division and regardless her replacement would be needed for the present duty that she is executing. The drawback of this alternative is that external hiring may cause bitterness from interior employees who may be looking at the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting as well as Production: Offered the affordable stress as well as high top quality work needed from the advertising and marketing agency, it is advised that Lewis ought to allow the production system to be a separate function from the marketing unit. Because a lot of advertising and marketing agencies had these 2 features as separate devices, it makes more sense to comply with the norm.

Combination of Advertising And Marketing with Operations: Considering that Lewis is currently taking care of the marketing and also operations departments simultaneously; it makes feeling to incorporate the two functions considering that she has actually been efficiently taking treatment of both ends. The fact that Lewis has to adapt her administration style for the marketing division suggests that these two divisions would certainly be culturally diverse.


An analysis of the three alternatives indicates that combination of marketing and procedures would certainly not be a feasible step due to the substantial differences between the two divisions despite the truth that presently Lewis is taking care of both. While splitting up of the manufacturing feature might have been a beneficial move for the marketing department, the reality that it would certainly indicate placing a 3rd feature under Lewis's wing indicates this need to be prevented.

Activity Plan.
Lewis will take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

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

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

Lewis will certainly divide herself from procedures.

An autonomous management design with employee empowerment will be used in marketing division.

Open door policy as well as focus on cross departmental communication will be targeted at eliminating discord.

Contingency plan.

If the assimilation does not exercise as prepared, a backup strategy would comply with which would certainly separate the production feature from the marketing feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the advertising division without an SVP. In that case the production function will certainly be separated by placing it under an SVP production.