Contract Manufacturing Dealing With Supply Chain Ethics Challenges Case Study Analysis


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Contract Manufacturing Dealing With Supply Chain Ethics Challenges Case Study Help

Background and Facts

Contract Manufacturing Dealing With Supply Chain Ethics Challenges a workplace supplies store for tiny as well as average sized companies has actually lately been associated with planning for a merger with its rival House Deport, which has actually impacted effectiveness degrees in departmentswith the elderly manager associated with legal difficulties presented by the federal Profession Payment. With the Advertising Head advancing the information of his departure from the business in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the near future. With difficulties in the type of a potential cultural adjustment and also reduced employee spirits, the company wants a complete reengineering effort at the advertising department.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective social change at the advertising and marketing department of Contract Manufacturing Dealing With Supply Chain Ethics Challenges is enhancing unpredictability in the working environment leading to various 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 function in influencing strategic choices given that Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Trade Compensation's treatment in the process. Provided the fact that the shop has a worldwide visibility with branches in UK, USA, Canada as well as Germany, political factors in each of these countries may have the ability to affect performance or strategic objectives. Federal Trade Commission's antitrust suit against the merging took up useful time of the organization's senior management suggesting that 'political' factors can have serious ramifications for a worldwide service.

Economic Factors: Economic factors such as the introduction of local business in the global circumstance recommend that Contract Manufacturing Dealing With Supply Chain Ethics Challenges is flourishing in an atmosphere where there is possible development of services. Fact that store clients are mainly looking for office products for residence offices suggests that the market has a climbing pattern of business owners and also home based services.

Social factors: Social fads in the economic situation reveal that clients are seeking comfort as well as eye-catching prices. Market research demonstrates how the client for Contract Manufacturing Dealing With Supply Chain Ethics Challenges does not have awareness about discovering services which can offer a combination of comfort as well as low costs.

Technological factors: Innovation plays an essential duty in Contract Manufacturing Dealing With Supply Chain Ethics Challenges's organisation technique specifically as the company is piloting Modern technology facilities which would certainly offer modern technology sales and assistance in the form of memory upgrades, peripheral installations. (Summary of BUG in appendix 2).

OB Issues and also Manifestations.

A number of underlying Organizational Behavior concerns can be seen in Contract Manufacturing Dealing With Supply Chain Ethics Challenges's case as highlighted in this section.

Apprehensions regarding social modification: There is uneasiness concerning a cultural change that would happen as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with most of the personnel currently revealing unhappiness over this possible step. This predicted change has developed stress and anxiety in the office which has been coupled with the previous stress and anxiety of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is shortage of employees that can match the difficult atmosphere of a fast-paced company. Not only does this bring about problem in locating the appropriate people, it places stress and anxiety on brand-new hires as can not endure the pace and also stress that the company expects them to birth.

Double Coverage Lines: Newbies locate this business culture cumbersome and hard to deal with specifically as populated line partnerships are implied to be weaker generally and also unbiased setup as well as efficiency examination is still done by the solid line manager. This means that newbies might shed clarity regarding their corresponding functions as well as purposes particularly as dotted line coverage does not maintain them in straight interaction with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had been guessed that the latter would take Krasnow's placement came as a strike to her morale. Lewis may have been capable as well as appropriate for the task but the reality that Kransnow's separation would make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Job Instability: Concern and also instability can be identified as 2 major worries that Lewis would be taking care of specifically as the merger has now be cancelled as well as 2 elderly execs of the marketing division would certainly be leaving. The whole duty of the department would be falling on Lewis's shoulders who would certainly not simply be in charge of brining about a social modification yet would additionally need to show herself in her new duty.

Incompatible Monitoring Style of Leader: Lewis's administration style and its conflict with the advertising department's role can additionally be seen as an OB difficulty especially as she has been made use of to dealing with problems in the operations division where employees are educated to concentrate on processes as well as obtain them. The advertising division on the other hand can be seen as a team of people who are utilized to being supported by Krasnow that focused more on result than processes.

Interdepartmental Disputes: Interdepartmental arguments between three departments, advertising and marketing, merchandizing and also procedures respectively over the appropriation of the advertising and marketing mix can be recognized as another OB issue. The advertising and marketing division does not share the exact same vision as the other 2 divisions pertaining to the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and also operations divisions do not agree over the advertising and marketing mix allotment amongst one another either.

Disintegration in Marketing Department: Fragmentation in between the marketing and advertising departments can be determined as another OB issue which might require more interest. The truth that the marketing and advertising areas in the advertising department are separated is protecting against both divisions from acquiring from each other's experience and also proficiency. Combination of marketing with merchandising as well as procedures would end up being more difficult if the advertising division itself is disintegrated which can be an additional possible OB worry.

Contract Manufacturing Dealing With Supply Chain Ethics Challenges Analysis

Numerous theories have actually been used to clarify the situations to get additional quality regarding the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that staffs are easy and lazy, have little ambition and stand up to adjustment. The difficult version of this concept emphasized threat, tight controls, dangers and penalties. Gradually it produces reduced productivity, refined sabotage as well as competition (Deal, 2003). Although the scenario at Contract Manufacturing Dealing With Supply Chain Ethics Challenges is not totally adhering to Concept X, it can be seen that new hires are locating this atmosphere rather difficult which might eventually bring about a higher inclination of the monitoring in the direction of Theory X. As per McGregor's advocated view, which he called Theory Y, the vital job of the administration is to set up organizational problems to ensure that individuals can achieve their own objectives best by guiding their initiatives in the direction of business benefits. If people discover no complete satisfaction in their work, the management would have little selection yet to rely on theory X and outside control (Deal, 2003). Even while examining Lewis's administration style, concept X might have been suitable in the procedures division somewhat however the Advertising division would call for dependence on Theory Y so as to get the creative thinking and also creativity from the groups.

Tuckman's Synergy Concept: As far as Lewis's problem regarding bringing consistency between the advertising as well as marketing division is worried, this would at first lead to clash as talked about by Bruce Tuckman in his 'Synergy Theory'. By combining the marketing as well as marketing department's job, there might be the same first disconnect which can lead to the 2nd stage of 'storming' where the groups challenge one another.

When people are provided with change, they go into stage one and so there might be feelings like sadness, unpredictability, aggravation, rage, concern, denial and disorientation.The scenario at the marketing department of Contract Manufacturing Dealing With Supply Chain Ethics Challenges is similar so Lewis can get comfy with the concept that it is not remarkable behavior. It is during this stage that Lewis will have to offer advice to the division so that they can discover a sense of instructions. It can be seen exactly how Krasnow has already made this transition much easier by making Lewis get included in the division a year before his real separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has talks about the importance of 'security needs as being a reduced degree need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel secure as well as out of threat' is at the second degree of demands. Prior to a worker can be made to create emotionally, he requires to have his 'Physical 'and also 'Security' requires fulfilled.

SWOT Analysis for Contract Manufacturing Dealing With Supply Chain Ethics Challenges Case Study

Effects of Analysis.

The OB analysis has actually looked at numerous concepts to comprehend how to handle the present scenario at hand. The adhering to three choices have actually been recommended to aid Lewis handle the organizational obstacles in the marketing division. Each of these choices has actually been suggested for reducing the change needed to bring the marketing department in line with the needs of the marketplace and also for making the social modification that would certainly comply with when the existing leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and Production features. Integration of Advertising with Procedures.

Examination of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merging days has knowledge in business-to-business advertising along with firm as well as retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both advertising and also advertising features.

The advantage of this method is that it will certainly incorporate the two features while lowering the demand for employing an extra resource for advertising and marketing. In addition to this, Lewis would be heading the marketing department as well as regardless her replacement would certainly be required for the current role that she is carrying out. The negative aspect of this choice is that exterior hiring might cause bitterness from interior workers who might be considering the placement of EVP after Lewis takes over Krasnow's setting.

Separating Adverting as well as Production: Provided the affordable stress as well as excellent quality job called for from the advertising agency, it is recommended that Lewis ought to permit the manufacturing system to be a separate feature from the marketing unit. Since many ad agency had these 2 features as different devices, it makes more feeling to adhere to the standard. Both functions may be able to concentrate on their core triggers a lot more effectively. The downside of this strategy would certainly be that added expenses would have to be birthed for setting up separate manufacturing features. A production head may have to be worked with which can increase expenses for the organization.

Integration of Advertising with Operations: Given that Lewis is currently dealing with the advertising and marketing and also operations departments concurrently; it makes good sense to integrate the two functions considering that she has actually been successfully looking after both ends. The truth that the two divisions already have major differences over allowance of resources suggests that this combination might have the ability to bring about harmony especially as Lewis would be heading both ends.However there are various disadvantages of this move specifically as it would place way too much problem over Lewis's shoulders. The truth that Lewis needs to adjust her management style for the advertising department recommends that these 2 departments would certainly be culturally diverse. Lewis may not be able to apply one kind of leadership design to both divisions which might result in ineffectiveness in either one of the 2 functions.


An examination of the three choices suggests that integration of advertising and operations would certainly not be a viable relocation as a result of the vast differences in between the two departments although that presently Lewis is managing both. While separation of the manufacturing feature might have been a desirable step for the marketing department, the fact that it would suggest putting a 3rd function under Lewis's wing suggests this need to be prevented. The assimilation of the advertising division is the very best option in terms of obtaining the optimum results from the division. An activity prepare for this choice is reviewed below.

Activity Strategy.
Lewis will take over the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would be merged.

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

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

Lewis will divide herself from procedures.

A democratic leadership style with staff member empowerment will be used in advertising and marketing division.

Open door policy and also focus on cross departmental communication will be focused on removing dissonance.

Backup plan.

If the combination does not exercise as planned, a backup plan would adhere to which would certainly divide the production function from the advertising function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the manufacturing function will absolutely be separated by putting it under an SVP production.