Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods Case Study Solution


Home >> Ivey >> Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods >>

Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods Case Study Help

Background and Facts

Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods an office materials merchant for small and moderate sized services has recently been associated with preparing for a merging with its rival House Deport, which has influenced performance degrees in departmentswith the elderly supervisor involved in legal complications presented by the government Trade Payment. With the Marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the future. With challenges in the form of a possible social change and also reduced staff member spirits, the organization wants a total reengineering effort at the advertising department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective cultural change at the advertising and marketing division of Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods is increasing unpredictability in the working environment causing various challenges for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting tactical decisions given that Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Trade Compensation's intervention at the same time. Given the fact that the store has an international presence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries might be able to impact efficiency or strategic goals. Federal Trade Payment's antitrust fit versus the merging occupied important time of the organization's senior management suggesting that 'political' factors can have severe implications for a worldwide company.

Economic Factors: Economic factors such as the emergence of local business in the international scenario recommend that Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods is growing in an environment where there is potential growth of organisations. Along with this, fact that store customers are mainly looking for office supplies for home offices suggests that the market has a climbing fad of business owners and home companies.

Social factors: Social trends in the economic climate show that consumers are seeking ease along with eye-catching prices. Market research shows how the client for Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods does not have recognition concerning discovering options which can offer a combination of benefit as well as inexpensive.

Technological factors: Technology plays an important function in Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods's company approach specifically as the company is piloting Technology facilities which would certainly use modern technology sales and also support in the kind of memory upgrades, outer setups. (Summary of INSECT in appendix 2).

OB Issues and also Manifestations.

Several underlying Organizational Habits concerns can be seen in Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods's case as highlighted in this section.

Apprehensions regarding cultural change: There is uneasiness about a cultural change that would take place as soon as Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with a lot of the personnel currently revealing unhappiness over this possible relocation. This predicted change has created stress and anxiety in the workplace which has actually been combined with the previous anxiety of preparing the company for a potential merger with House Deport.
Pest Analysis
Difficult Task Setting for Newcomers: There is lack of employees that can match the difficult setting of a hectic organization. Not only does this cause difficulty in locating the right individuals, it places stress on brand-new hires as can not hold up against the pace as well as pressure that the organization anticipates them to birth.

Double Coverage Lines: Newcomers discover this organizational society cumbersome and hard to deal with particularly as dotted line connections are indicated to be weaker in general and also objective setup as well as efficiency evaluation is still done by the solid line supervisor. This means that novices might lose clearness regarding their particular roles and also goals specifically as populated line coverage does not maintain them in straight communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles although it had actually been hypothesized that the last would take Krasnow's setting came as a strike to her spirits. Lewis may have been capable and suitable for the work yet the fact that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Work Instability: Fear and also instability can be determined as two major issues that Lewis would certainly be handling especially as the merging has currently be terminated as well as two senior executives of the advertising and marketing division would certainly be leaving. The whole obligation of the department would certainly be dropping on Lewis's shoulders who would not simply be in charge of brining regarding a cultural modification however would certainly also have to verify herself in her brand-new duty.

Incompatible Monitoring Design of Leader: Lewis's administration design and also its incompatibility with the marketing department's role can likewise be seen as an OB challenge especially as she has been used to managing concerns in the operations department where personnel are taught to concentrate on processes and get them right. The advertising division on the various other hand can be seen as a team of individuals that are made use of to being nurtured by Krasnow who focused extra on output than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements between three departments, advertising, merchandizing and procedures respectively over the allowance of the advertising and marketing mix can be determined as another OB issue. Although the advertising and marketing department does not share the exact same vision as the various other two departments concerning the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and also operations divisions do not concur over the marketing mix appropriation amongst one another either.

Fragmentation in Marketing Division: Disintegration between the marketing and advertising departments can be identified as another OB concern which could need further focus. The fact that the marketing and advertising areas in the advertising department are separated is stopping both departments from gaining from each other's experience as well as know-how. Assimilation of marketing with retailing as well as operations would certainly end up being harder if the advertising department itself is degenerated which can be an additional potential OB issue.

Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods Analysis

Different concepts have actually been utilized to discuss the situations to obtain additional clarity regarding the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers think that juniors are passive as well as careless, have little ambition as well as stand up to adjustment. The difficult version of this theory emphasized browbeating, limited controls, hazards as well as penalties. With time it generates reduced performance, subtle sabotage as well as rivalry (Deal, 2003). The scenario at Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods is not completely complying with Concept X, it can be seen that new hires are finding this environment instead stressful which may at some point lead to a greater inclination of the administration in the direction of Concept X. According to McGregor's advocated sight, which he called Theory Y, the vital task of the monitoring is to prepare business conditions so that people can accomplish their own objectives best by guiding their efforts towards organizational rewards. If individuals find no complete satisfaction in their job, the monitoring would have little option but to depend on concept X as well as external control (Deal, 2003). Even while analyzing Lewis's administration style, concept X might have appropriated in the operations department somewhat however the Advertising department would certainly require dependence on Theory Y so as to get the imagination and originality from the groups.

Tuckman's Synergy Concept: As far as Lewis's issue about bringing harmony in between the marketing and advertising department is concerned, this would initially lead to clash as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, throughout the first phase of team growth, individuals may not bond, as they are busy finding their area in the group. By combining the marketing and advertising division's work, there may coincide preliminary detach which can bring about the second stage of 'storming' where the groups challenge each other. Nonetheless, it is only during the third stage or 'norming' when they would certainly integrate to share concepts prior to the group can produce harmony in the 4th stage 'carrying out'.

When people are offered with modification, they go into stage one and also so there may be emotions like sadness, unpredictability, irritation, anger, worry, rejection and disorientation.The circumstance at the marketing division of Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods is comparable so Lewis can get comfortable with the suggestion that it is not extraordinary habits. It is throughout this phase that Lewis will certainly have to give support to the department so that they can locate a feeling of instructions. It can be seen how Krasnow has actually already made this transition much easier by making Lewis get entailed in the division a year prior to his actual departure.
Vrio Analysis
Maslow's Demand power structure: The OB issue pertaining to insecurity at the work environment has actually been activated first of all by the adjustment in management and secondly by the fact that the merger will certainly no more be started. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has reviews the relevance of 'safety and security requires as being a lower level need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel protected and also untouched' goes to the second degree of needs. Before a staff member can be made to create mentally, he requires to have his 'Physical 'as well as 'Security' needs met. This shows that unless the personnel are made to feel secure concerning their current employment status in Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods Case Study

Effects of Analysis.

The OB analysis has looked at various theories to recognize how to cope with the current circumstance handy. The following 3 options have been proposed to assist Lewis handle the business difficulties in the advertising and marketing division. Each of these choices has been suggested for relieving the transition needed to bring the advertising and marketing division in line with the demands of the market as well as for making the social modification that would follow once the current leader leaves.

Integration of marketing and advertising features. Separating Adverting and Manufacturing functions. Assimilation of Marketing with Operations.

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merger days has proficiency in business-to-business advertising and marketing along with company and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to deal with both advertising and advertising features.

The advantage of this method is that it will integrate the two functions while reducing the demand for hiring an additional source for advertising. In addition to this, Lewis would be heading the advertising and marketing department and all the same her substitute would certainly be required for the current role that she is doing. The drawback of this choice is that outside hiring may cause bitterness from interior employees that may be looking at the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Production: Provided the affordable pressures as well as high quality job called for from the advertising and marketing firm, it is suggested that Lewis must allow the manufacturing device to be a separate feature from the marketing unit. Because a lot of advertising and marketing firms had these two functions as separate systems, it makes more sense to follow the norm.

Integration of Advertising with Workflows: Considering that Lewis is already looking after the marketing and also operations departments simultaneously; it makes sense to integrate the two functions because she has actually been efficiently looking after both ends. The reality that both departments already have major distinctions over allotment of resources suggests that this combination might have the ability to produce harmony specifically as Lewis would be heading both ends.However there are numerous negative aspects of this move particularly as it would place excessive worry over Lewis's shoulders. The reality that Lewis needs to adapt her monitoring design for the advertising division suggests that these two departments would be culturally diverse. Along with this, Lewis might not be able to use one kind of leadership design to both departments which could lead to ineffectiveness in either one of both functions.


An assessment of the three alternatives indicates that combination of marketing as well as operations would not be a possible move as a result of the large distinctions in between both departments although that presently Lewis is taking care of both. While splitting up of the production function may have been a desirable step for the marketing department, the fact that it would certainly mean putting a third feature under Lewis's wing suggests this need to be prevented. The assimilation of the marketing division is the most effective option in regards to obtaining the ideal results from the department. An action prepare for this alternative is gone over below.

Action Plan.
Lewis will take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

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

Lewis will divide herself from operations.

An autonomous leadership design with employee empowerment will be utilized in marketing division.

Open door policy and emphasis on cross departmental interaction will certainly be focused on removing dissonance.

Backup plan.

If the combination does not work out as prepared, a backup plan would adhere to which would certainly separate the manufacturing feature from the advertising feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing division without an SVP. In that case the production feature will definitely be separated by positioning it under an SVP manufacturing.