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


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

Background and Facts

Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods a workplace materials merchant for little and also average sized companies has actually recently been associated with preparing for a merger with its competitor House Deport, which has actually influenced efficiency degrees in departmentswith the elderly manager associated with lawful issues presented by the federal Profession Compensation. With the Marketing Head putting forward the news of his departure 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 difficulties in the form of a possible social modification and also reduced staff member spirits, the company is in need of a total reengineering effort at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural change at the advertising division of Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods is raising uncertainty in the workplace causing numerous challenges for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing strategic decisions given that Stapes Inc. needed to abandon its strategies of combining with Workplace Deport after the Federal Profession Payment's intervention while doing so. Provided the truth that the shop has a worldwide visibility with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries may have the ability to affect performance or calculated objectives. Federal Profession Payment's antitrust fit versus the merging occupied valuable time of the company's senior administration recommending that 'political' factors can have serious effects for a worldwide service.

Economic Factors: Financial factors such as the emergence of small companies in the international scenario suggest that Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods is growing in an atmosphere where there is prospective growth of businesses. Fact that store customers are mostly looking for workplace supplies for house offices recommends that the market has a climbing fad of business owners and also home based companies.

Social factors: Social fads in the economic situation show that consumers are searching for ease in addition to eye-catching prices. Marketing research demonstrates how the consumer for Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods does not have recognition regarding locating remedies which can supply a combination of ease and inexpensive.

Technical factors: Innovation plays an important duty in Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods's service method specifically as the organization is piloting Technology centers which would certainly use innovation sales and assistance in the form of memory upgrades, outer installments. (Summary of PARASITE in appendix 2).

OB Issues and Effects.

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

Worries regarding social adjustment: There is concern about a cultural modification that would certainly happen when Todd Krasnow leaves from his position as the Exec Vice President of Advertising with a lot of the personnel currently showing discontent over this prospective step. This anticipated modification has actually developed anxiety in the workplace which has been paired with the past anxiety of preparing the company for a possible merger with Home Deport.
Pest Analysis
Difficult Work Setting for Newcomers: There is scarcity of personnel that can match the demanding setting of a hectic organization. Not only does this bring about trouble in discovering the appropriate individuals, it puts tension on brand-new hires as can not withstand the pace and also stress that the company anticipates them to birth.

Double Coverage Lines: Novices find this business society cumbersome and hard to manage especially as populated line partnerships are indicated to be weaker generally and also objective setting and also efficiency examination is still done by the solid line supervisor. This means that beginners can lose clearness about their respective duties and also purposes specifically as populated line reporting does not keep them in direct interaction with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been hypothesized that the latter would certainly take Krasnow's placement came as an impact to her spirits. Lewis might have been capable and proper for the task yet the reality that Kransnow's departure would make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Job Insecurity: Worry as well as instability can be recognized as 2 major problems that Lewis would certainly be handling especially as the merging has now be cancelled and 2 senior executives of the advertising and marketing department would be leaving. The entire duty of the division would certainly be dropping on Lewis's shoulders who would certainly not simply be in charge of brining about a social adjustment yet would additionally have to verify herself in her brand-new duty.

Inappropriate Management Style of Leader: Lewis's administration style and its conflict with the advertising department's duty can also be seen as an OB challenge particularly as she has actually been used to taking care of concerns in the procedures department where workers are shown to focus on processes as well as get them. The advertising division on the various other hand can be seen as a team of individuals that are made use of to being supported by Krasnow that focused a lot more on outcome than procedures.

Interdepartmental Differences: Interdepartmental arguments in between three divisions, marketing, merchandizing as well as operations specifically over the allotment of the marketing mix can be determined as one more OB issue. Although the advertising and marketing division does not share the very same vision as the various other two divisions relating to the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and operations departments do not concur over the advertising and marketing mix allotment amongst each other either.

Fragmentation in Marketing Division: Fragmentation between the marketing and advertising departments can be determined as another OB concern which could require further interest. The fact that the advertising and marketing areas in the advertising and marketing department are separated is stopping both divisions from obtaining from each various other's experience and know-how. Integration of advertising and marketing with merchandising and operations would come to be harder if the advertising and marketing department itself is degenerated which can be an additional possible OB worry.

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

Various concepts have been utilized to discuss the conditions to get additional clarity about the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors think that juniors are easy and careless, have little passion and resist modification. The difficult variation of this concept emphasized browbeating, limited controls, hazards and also punishments. Over time it generates reduced performance, refined sabotage as well as rivalry (Offer, 2003). Although the situation at Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods is not completely following Theory X, it can be seen that new hires are discovering this environment instead demanding which may at some point lead to a higher disposition of the administration in the direction of Theory X. Based on McGregor's promoted view, which he called Theory Y, the vital job of the management is to prepare business conditions so that individuals can attain their own objectives best by routing their initiatives towards organizational incentives. If individuals locate no complete satisfaction in their job, the administration would certainly have little choice however to count on concept X and also exterior control (Bargain, 2003). Also while evaluating Lewis's administration style, concept X may have been suitable in the procedures division to some extent but the Marketing department would certainly require reliance on Theory Y in order to get the creativity and also originality from the teams.

Tuckman's Team effort Theory: As for Lewis's issue concerning bringing consistency between the advertising and marketing department is concerned, this would at first cause contrast as discussed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's theory displayed in appendix 3, throughout the preliminary phase of group development, people might not bond, as they are active locating their location in the group. By combining the advertising and marketing department's work, there may be the same preliminary separate which might cause the 2nd stage of 'storming' where the groups test each other. Nonetheless, it is only throughout the 3rd stage or 'norming' when they would come together to share concepts before the group can produce synergy in the 4th stage 'carrying out'.

When individuals are offered with change, they enter stage one and so there might be emotions like despair, unpredictability, stress, rage, anxiety, denial as well as disorientation.The circumstance at the marketing division of Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods is comparable so Lewis can obtain comfortable with the concept that it is not extraordinary actions. It is during this stage that Lewis will have to give support to the division so that they can find a feeling of instructions. It can be seen exactly how Krasnow has already made this shift less complicated by making Lewis get entailed in the division a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has reviews the value of 'protection needs as being a lower degree demand of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel secure and also out of risk' is at the 2nd degree of demands. Before a worker can be made to develop emotionally, he needs to have his 'Physiological 'as well as 'Safety' requires satisfied.

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

Ramification of Analysis.

The OB analysis has actually checked out various concepts to recognize exactly how to handle the present circumstance available. The following three choices have been proposed to help Lewis manage the organizational challenges in the marketing department. Each of these choices has been suggested for reducing the change needed to bring the advertising and marketing division in line with the requirements of the market and also for making the cultural adjustment that would adhere to once the current leader leaves.

Combination of advertising and marketing features. Separating Adverting and Production features. Combination of Advertising And Marketing with Operations.

Evaluation of Alternatives.

Combination of Advertising And Marketing & Marketing Functions: The in-house advertising and marketing company of Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods is already toughness for the company in terms of conserving up on overheads connected to advertising and marketing and promotion. Since no new employment has actually been done after Bridget Cole's separation with the reporting line being straight designated to Krasnow for the advertising feature, this is a beneficial possibility for integrating the advertising and marketing functions. Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merger days has knowledge in business-to-business advertising and marketing along with firm and also retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to take care of both advertising and marketing features.

The benefit of this approach is that it will certainly incorporate the two features while decreasing the demand for employing an additional resource for advertising and marketing. In addition to this, Lewis would certainly be heading the marketing department and also in any case her replacement would be needed for the existing function that she is carrying out. The drawback of this alternative is that outside hiring may bring about bitterness from interior employees that might be looking at the placement of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting as well as Production: Offered the competitive stress and premium quality work required from the ad agency, it is suggested that Lewis ought to allow the manufacturing unit to be a different feature from the marketing system. Given that the majority of ad agency had these 2 features as different units, it makes more feeling to comply with the norm. Both functions may be able to concentrate on their core turns on more successfully. The downside of this technique would certainly be that additional expenses would certainly have to be birthed for establishing up different production features. A manufacturing head may have to be employed which could boost expenses for the organization.

Combination of Advertising And Marketing with Operations: Since Lewis is already looking after the advertising and marketing and also operations divisions at the same time; it makes good sense to incorporate both features considering that she has been successfully looking after both ends. The truth that the two departments already have major distinctions over allocation of resources recommends that this combination may be able to cause consistency particularly as Lewis would be heading both ends.However there are various drawbacks of this move especially as it would certainly place way too much concern over Lewis's shoulders. The truth that Lewis needs to adjust her administration design for the advertising department recommends that these two divisions would certainly be culturally diverse. Lewis may not be able to apply one kind of management style to both divisions which could result in inefficiency in either one of the two functions.


An analysis of the three choices shows that integration of marketing and procedures would not be a feasible relocation because of the vast differences in between both divisions despite the fact that presently Lewis is handling both. While separation of the manufacturing feature may have been a desirable move for the marketing department, the reality that it would certainly indicate placing a 3rd feature under Lewis's wing suggests this should be avoided. The assimilation of the marketing division is the very best choice in regards to getting the optimum results from the department. An action prepare for this option is gone over below.

Action Strategy.
Lewis will certainly take control of the role of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

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

Lewis will certainly separate herself from procedures.

A democratic leadership design with employee empowerment will certainly be made use of in marketing division.

Open up door plan and also emphasis on cross department communication will certainly be aimed at getting rid of discord.

Backup strategy.

If the combination does not work out as intended, a backup strategy would comply with which would certainly divide the manufacturing function from the advertising feature to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising and marketing division without an SVP. In that case the manufacturing function will definitely be divided by positioning it under an SVP production.