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


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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 supplies retailer for little and also moderate sized businesses has just recently been involved in planning for a merging with its rival House Deport, which has affected effectiveness degrees in departmentswith the elderly supervisor involved in legal difficulties put forth by the government Profession Commission. With the Advertising Head advancing the information of his separation from the business 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 type of a prospective cultural change as well as low worker spirits, the organization wants a complete reengineering initiative at the marketing department.

Problem Statement

The potential social change at the marketing department of Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods is enhancing uncertainty in the working environment resulting in different challenges 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 function in affecting strategic decisions since Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Profession Commission's intervention while doing so. Given the fact that the store has a global existence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations might have the ability to impact performance or calculated objectives. Federal Trade Compensation's antitrust match versus the merger took up beneficial time of the company's elderly monitoring recommending that 'political' factors can have serious implications for an international organisation.

Economic Factors: Economic factors such as the development of small companies in the international situation recommend that Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods is prospering in a setting where there is possible growth of businesses. Fact that shop clients are mostly looking for office products for house offices suggests that the market has a climbing pattern of entrepreneurs as well as residence based services.

Social factors: Social trends in the economic climate show that consumers are searching for ease along with eye-catching rates. Marketing research shows how the client for Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods lacks awareness about locating solutions which can use a combination of convenience and low costs.

Technical factors: Modern technology plays a vital role in Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods's company approach specifically as the company is piloting Technology centers which would certainly supply modern technology sales and support in the form of memory upgrades, peripheral installations. (Recap of PARASITE in appendix 2).

OB Issues as well as Effects.

Numerous 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 area.

Worries regarding social adjustment: There is concern regarding a social modification that would happen as soon as Todd Krasnow leaves from his placement as the Executive Vice President of Advertising with the majority of the team member currently showing discontent over this prospective move. This expected adjustment has created anxiety in the work environment which has been coupled with the past stress and anxiety of preparing the company for a potential merging with House Deport.

Demanding Job Atmosphere for Newcomers: There is lack of workers that can match the demanding atmosphere of a fast-paced organization. Not just does this result in problem in discovering the right people, it puts anxiety on new hires as can not endure the speed and pressure that the company expects them to birth.

Double Reporting Lines: Beginners find this organizational culture difficult as well as challenging to handle specifically as populated line relationships are indicated to be weak in general and unbiased setting and performance examination is still done by the solid line manager. This indicates that beginners could shed clarity concerning their respective functions as well as objectives especially as dotted line coverage does not keep them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had been speculated that the latter would take Krasnow's placement came as an impact to her spirits. Lewis might have been capable and also appropriate for the task yet the truth that Kransnow's departure would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Job Insecurity: Worry and insecurity can be determined as 2 significant concerns that Lewis would certainly be handling especially as the merger has currently be cancelled and also 2 elderly execs of the marketing division would be leaving. The entire obligation of the division would be falling on Lewis's shoulders who would not simply be in charge of brining about a cultural modification yet would also have to prove herself in her brand-new function.

Inappropriate Monitoring Style of Leader: Lewis's monitoring style as well as its incompatibility with the advertising and marketing division's role can additionally be seen as an OB challenge particularly as she has actually been used to managing concerns in the operations department where personnel are shown to focus on procedures and obtain them. The advertising department on the various other hand can be seen as a team of individuals that are made use of to being nurtured by Krasnow who concentrated much more on output than processes.

Interdepartmental Differences: Interdepartmental disagreements in between three divisions, advertising and marketing, merchandizing as well as operations specifically over the allocation of the marketing mix can be recognized as an additional OB concern. Although the advertising department does not share the exact same vision as the other 2 departments concerning the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and procedures divisions do not agree over the marketing mix allocation among one another either.

Disintegration in Advertising Department: Disintegration between the marketing and advertising divisions can be determined as one more OB issue which can need more focus. The reality that the marketing and advertising sections in the advertising and marketing division are detached is avoiding both departments from obtaining from each other's experience and also competence. Combination of marketing with merchandising as well as operations would certainly become harder if the marketing division itself is disintegrated which can be one more prospective OB problem.

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

Various concepts have been utilized to clarify the circumstances to obtain more clarity about the situation available.

McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors think that staffs are passive and careless, have little aspiration and also stand up to change. The hard version of this concept emphasized threat, limited controls, hazards and also punishments. In time it produces reduced efficiency, subtle sabotage as well as competition (Bargain, 2003). Although the circumstance at Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods is not entirely adhering to Concept X, it can be seen that new hires are finding this environment instead stressful which may eventually result in a greater disposition of the monitoring in the direction of Concept X. Based on McGregor's supported sight, which he called Theory Y, the important task of the monitoring is to set up business conditions to ensure that individuals can achieve their own goals best by directing their initiatives in the direction of business benefits. If people find no contentment in their work, the monitoring would have little option however to rely upon theory X as well as outside control (Deal, 2003). Even while evaluating Lewis's administration design, theory X might have appropriated in the procedures division to some extent however the Advertising and marketing department would call for dependence on Concept Y so as to get the imagination and also creativity from the groups.

Tuckman's Synergy Theory: Regarding Lewis's worry concerning bringing consistency in between the marketing and advertising department is worried, this would initially cause clash as reviewed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, throughout the initial stage of group development, individuals may not bond, as they are active locating their place in the group. By combining the marketing and advertising department's work, there may coincide preliminary detach which can lead to the 2nd stage of 'storming' where the teams test one another. It is just during the third phase or 'norming' when they would come together to share concepts prior to the group can bring around harmony in the fourth phase 'carrying out'.

Bridges' Change Version: According To William Bridge's concept (appendix 4), individuals are fairly uneasy with adjustment, which is noticeable by the scenario at Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods The circumstance can be viewed as a normal program of life if is studied according to Bridge's concept where he explains that individuals go through three phases of change when they experience modification. 'Closing, shedding as well as Letting go', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When individuals are presented with modification, they get in phase one therefore there might be feelings like sadness, uncertainty, frustration, rage, anxiety, denial and disorientation.The situation at the advertising department of Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods is similar so Lewis can obtain comfy with the suggestion that it is not amazing habits. In the second phase, there might be a need to connect the gap between the brand-new and also old culture so Lewis might have to face this experience as soon as Krasnow leaves. There might be low morale and low efficiency at this phase which should not be taken as a setback. It is during this stage that Lewis will certainly have to offer advice to the department to make sure that they can discover an orientation. It can be seen how Krasnow has already made this change much easier by making Lewis get involved in the division a year prior to his real departure. As per Bridges' Version, phase 3 will certainly bring about visibility to understanding, High energy and also commitment as people will certainly embrace the change (Bridges, 2004).

Maslow's Requirement pecking order: The OB concern related to instability at the workplace has actually been caused to start with by the adjustment in administration and also secondly by the reality that the merging will no longer be initiated. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has talks about the value of 'security requires as being a lower degree need of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the need to feel protected as well as unharmed' goes to the 2nd degree of demands. Before a staff member can be made to develop emotionally, he needs to have his 'Physiological 'and 'Safety and security' needs satisfied. This suggests that unless the employees are made to feel secure regarding their existing work 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 taken a look at various theories to understand how to handle the current circumstance available. The following 3 options have actually been recommended to assist Lewis take care of the business challenges in the advertising and marketing division. Each of these alternatives has actually been recommended for alleviating the shift needed to bring the marketing department in line with the requirements of the market as well as for making the social modification that would certainly comply with when the present leader leaves.

Assimilation of marketing and advertising features. Separating Adverting as well as Production features. Combination of Advertising with Operations.

Evaluation of Alternatives.

Assimilation of Advertising And Marketing & Marketing Functions: The internal advertising firm of Attention Shoppers Executive Compensation At Kroger Safeway Costco And Whole Foods is already stamina for the organization in regards to saving up on expenses associated with advertising and also promo. Considering that no new recruitment has actually been done after Bridget Cole's departure with the coverage line being straight designated to Krasnow for the advertising and marketing feature, this is a beneficial opportunity for incorporating the marketing and advertising features. Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merging days has expertise in business-to-business advertising along with company and also retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to handle both advertising and marketing features.

The benefit of this approach is that it will incorporate the two features while lowering the need for hiring an additional source for advertising and marketing. Lewis would certainly be heading the advertising and marketing department and in any type of case her replacement would be needed for the current function that she is performing. The negative aspect of this option is that exterior hiring may produce bitterness from interior workers that might be considering the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Production: Provided the competitive pressures and also high quality job required from the marketing company, it is advised that Lewis must enable the manufacturing system to be a separate function from the advertising and marketing system. Given that many advertising companies had these two functions as different units, it makes even more feeling to follow the standard.

Assimilation of Advertising And Marketing with Workflows: Because Lewis is currently looking after the advertising as well as procedures divisions concurrently; it makes sense to incorporate both features since she has actually been effectively caring for both ends. The truth that both departments already have significant differences over allocation of resources suggests that this combination might have the ability to bring about harmony especially as Lewis would certainly be heading both ends.However there are different disadvantages of this relocation particularly as it would place too much problem over Lewis's shoulders. The truth that Lewis needs to adjust her management design for the advertising division recommends that these two divisions would certainly be culturally diverse. In addition to this, Lewis may not have the ability to use one type of management style to both departments which can lead to inadequacy in either among the two features.


An examination of the 3 choices shows that combination of advertising and marketing and operations would certainly not be a possible action due to the huge differences in between the two departments despite the truth that currently Lewis is dealing with both. While separation of the manufacturing feature might have been a positive step for the advertising and marketing department, the truth that it would certainly suggest putting a third function under Lewis's wing means this should be avoided.

Action Plan.

Lewis will take over the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Production feature will certainly remain part of advertising under advertising function.

Lewis will certainly separate herself from operations.

A democratic management design with employee empowerment will certainly be used in advertising and marketing division.

Open door plan and focus on cross departmental interaction will certainly be aimed at eliminating disharmony.

Backup strategy.

If the assimilation does not exercise as intended, a backup strategy would certainly follow which would certainly separate the production function from the advertising feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising department without an SVP. Because case the production function will certainly be divided by placing it under an SVP manufacturing.