Daqi Case Study Solution


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Daqi Case Study Analysis

Background and Facts

Daqi an office materials seller for small as well as moderate sized organisations has actually just recently been associated with planning for a merger with its competitor Residence Deport, which has affected efficiency levels in departmentswith the elderly supervisor involved in legal difficulties put forth by the government Trade Commission. With the Advertising and marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the duty in the future. With challenges in the type of a prospective cultural adjustment and low staff member spirits, the company needs a full reengineering initiative at the advertising division.

Issue Statement

The potential cultural modification at the marketing department of Daqi is raising unpredictability in the workplace resulting in numerous 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 significant role in impacting critical choices because Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Profession Commission's treatment at the same time. Provided the fact that the shop has a worldwide existence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries may have the ability to impact efficiency or critical objectives. Federal Profession Payment's antitrust fit versus the merging occupied valuable time of the company's senior administration suggesting that 'political' factors can have major ramifications for a worldwide service.

Economic Factors: Economic factors such as the introduction of local business in the international situation suggest that Daqi is prospering in an environment where there is possible development of organisations. Reality that store consumers are primarily looking for workplace supplies for residence offices suggests that the market has a climbing pattern of business owners and also residence based organisations.

Social factors: Social trends in the economic situation show that clients are trying to find benefit along with attractive prices. Market research demonstrates how the client for Daqi lacks awareness regarding finding services which can supply a combination of convenience and also inexpensive.

Technical factors: Technology plays an essential duty in Daqi's business approach particularly as the organization is piloting Innovation centers which would certainly supply innovation sales and support in the kind of memory upgrades, outer setups. (Summary of INSECT in appendix 2).

OB Issues and Manifestations.

Several underlying Business Behavior concerns can be seen in Daqi's case as highlighted in this area.

Apprehensions about social adjustment: There is concern about a cultural adjustment that would certainly occur when Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising And Marketing with most of the team member already showing discontent over this prospective action. This predicted adjustment has actually developed stress and anxiety in the office which has been combined with the past stress and anxiety of preparing the firm for a prospective merger with House Deport.

Stressful Work Environment for Newcomers: There is shortage of workers that can match the difficult atmosphere of a hectic company. Not only does this cause problem in discovering the best people, it places anxiety on new hires as can not hold up against the speed and also stress that the company expects them to birth.

Double Coverage Lines: Newbies locate this organizational society difficult and also challenging to cope with particularly as populated line relationships are suggested to be weaker generally as well as objective setting as well as performance examination is still done by the solid line supervisor. This suggests that beginners might shed clarity concerning their corresponding roles and also goals particularly as populated line coverage does not keep them in straight communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had actually been speculated that the latter would take Krasnow's placement came as a blow to her spirits. Lewis may have been qualified as well as appropriate for the job yet the fact that Kransnow's departure would make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Worry & Task Insecurity: Concern and insecurity can be determined as two significant worries that Lewis would certainly be managing especially as the merger has actually now be cancelled as well as 2 elderly executives of the advertising division would be leaving. The whole responsibility of the division would be dropping on Lewis's shoulders that would certainly not just supervise of brining regarding a cultural change yet would also need to confirm herself in her brand-new duty.

Incompatible Management Design of Leader: Lewis's administration style and also its incompatibility with the marketing department's function can additionally be seen as an OB challenge specifically as she has actually been used to dealing with concerns in the operations division where employees are shown to concentrate on processes and also get them right. The advertising division on the various other hand can be seen as a team of people who are made use of to being nurtured by Krasnow who concentrated extra on result than processes.

Interdepartmental Differences: Interdepartmental disputes between 3 departments, advertising and marketing, merchandizing as well as procedures respectively over the allowance of the marketing mix can be recognized as another OB problem. Although the advertising division does not share the exact same vision as the various other 2 divisions regarding the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing as well as operations divisions do not agree over the marketing mix allocation among each other either.

Disintegration in Advertising And Marketing Division: Disintegration in between the marketing and advertising departments can be recognized as an additional OB concern which might require further attention. The truth that the marketing and advertising areas in the marketing department are separated is avoiding both divisions from gaining from each other's experience and also proficiency. Assimilation of marketing with merchandising and procedures would end up being more difficult if the advertising and marketing department itself is degenerated which can be another possible OB issue.

Daqi Analysis

Various concepts have been utilized to describe the scenarios to get more clearness regarding the scenario available.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that juniors are easy as well as careless, have little aspiration as well as withstand adjustment. The tough version of this concept stressed threat, tight controls, dangers and penalties. With time it creates low productivity, refined sabotage and also competition (Offer, 2003). The scenario at Daqi is not totally complying with Concept X, it can be seen that brand-new hires are finding this environment instead difficult which may ultimately lead to a higher disposition of the management towards Concept X. According to McGregor's supported sight, which he called Theory Y, the necessary task of the monitoring is to arrange organizational conditions so that people can achieve their own goals best by routing their efforts towards organizational rewards. If people discover no contentment in their work, the management would have little option but to rely upon theory X as well as external control (Bargain, 2003). Even while evaluating Lewis's management design, concept X might have appropriated in the procedures division to some extent but the Marketing division would require dependence on Theory Y to get the imagination as well as creativity from the teams.

Tuckman's Teamwork Theory: As for Lewis's worry about bringing consistency between the marketing and advertising division is worried, this would originally bring about contrast as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, throughout the preliminary stage of group advancement, people may not bond, as they are busy locating their area in the team. By incorporating the advertising and marketing division's job, there might coincide preliminary disconnect which could result in the second stage of 'storming' where the groups test each other. It is only throughout the third stage or 'norming' when they would come together to share suggestions prior to the team can bring about harmony in the fourth stage 'carrying out'.

Bridges' Change Design: As per William Bridge's theory (appendix 4), people are fairly unpleasant with modification, which is evident by the circumstance at Daqi The circumstance can be viewed as a normal course of life if is examined as per Bridge's theory where he explains that people go through three phases of shift when they experience change. 'End, losing and Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When individuals exist with change, they go into stage one and so there may be emotions like despair, uncertainty, disappointment, anger, concern, denial and disorientation.The circumstance at the advertising division of Daqi is comparable so Lewis can obtain comfortable with the suggestion that it is not remarkable actions. In the second stage, there may be a requirement to connect the gap in between the new and also old society so Lewis may need to face this ordeal as soon as Krasnow leaves. There may be reduced morale and also reduced productivity at this stage which need to not be taken as a trouble. It is during this phase that Lewis will certainly need to offer guidance to the division to make sure that they can find a sense of direction. It can be seen exactly how Krasnow has currently made this shift easier by making Lewis obtain associated with the division a year prior to his actual separation. Based on Bridges' Model, stage three will certainly produce visibility to learning, High power as well as dedication as people will certainly embrace the adjustment (Bridges, 2004).

Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has reviews the relevance of 'protection needs as being a lower level need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel secure and also out of danger' is at the second level of requirements. Before a worker can be made to establish mentally, he needs to have his 'Physiological 'and also 'Safety and security' needs satisfied.

SWOT Analysis for Daqi Case Study

Implication of Analysis.

The OB analysis has actually looked at various concepts to comprehend how to deal with the current situation handy. The complying with 3 options have actually been suggested to aid Lewis handle the business challenges in the advertising and marketing department. Each of these choices has actually been recommended for reducing the shift needed to bring the advertising and marketing division in accordance with the needs of the marketplace as well as for making the cultural modification that would follow when the present leader leaves.

Integration of advertising and marketing functions. Dividing Adverting as well as Manufacturing features. Integration of Marketing with Procedures.

Analysis of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merging days has know-how in business-to-business marketing along with agency as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both marketing as well as advertising functions.

The advantage of this method is that it will certainly integrate both features while reducing the requirement for working with an additional source for advertising. In addition to this, Lewis would certainly be heading the advertising department and also all the same her replacement would certainly be required for the present role that she is executing. The downside of this alternative is that exterior hiring might produce bitterness from interior employees who might be considering the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Production: Provided the affordable pressures and premium quality job needed from the ad agency, it is suggested that Lewis must allow the production device to be a different feature from the marketing device. Because most advertising agencies had these two functions as separate devices, it makes more feeling to follow the standard. In addition to this, both functions might be able to focus on their core activates more effectively. Nonetheless, the downside of this strategy would certainly be that additional costs would need to be borne for setting up separate manufacturing functions. A production head may have to be employed which can raise expenses for the organization.

Assimilation of Marketing with Operations: Given that Lewis is currently taking treatment of the marketing as well as procedures divisions concurrently; it makes sense to incorporate the 2 features given that she has actually been successfully taking treatment of both ends. The reality that Lewis has to adapt her administration design for the advertising and marketing division recommends that these two divisions would be culturally varied.


An examination of the 3 choices suggests that combination of marketing and also operations would certainly not be a possible action due to the large distinctions between the 2 divisions regardless of the truth that presently Lewis is dealing with both. While separation of the production feature might have been a favorable relocation for the advertising and marketing division, the reality that it would certainly imply putting a third function under Lewis's wing means this ought to be avoided.

Action Plan.

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

Marketing and advertising features would be merged.

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

Manufacturing function will certainly stay part of marketing under marketing feature.

Lewis will certainly divide herself from procedures.

A democratic leadership design with employee empowerment will be utilized in advertising division.

Open door plan as well as focus on cross departmental communication will be focused on removing disharmony.

Contingency strategy.

If the assimilation does not exercise as prepared, a backup strategy would adhere to which would certainly divide the manufacturing feature from the marketing function to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising department without an SVP. In that case the manufacturing function will definitely be divided by positioning it under an SVP production.