Going Digital Building International Sales In A Digital Economy Case Study Analysis


Home >> Ivey >> Going Digital Building International Sales In A Digital Economy >>

Going Digital Building International Sales In A Digital Economy Case Study Solution

Background and Facts

Going Digital Building International Sales In A Digital Economy an office products store for tiny and medium sized businesses has actually recently been involved in preparing for a merging with its rival Home Deport, which has impacted efficiency levels in departmentswith the elderly supervisor involved in lawful complications presented by the government Profession Payment. With the Advertising and marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the role in the future. With difficulties in the type of a prospective cultural change and also low employee morale, the organization requires a complete reengineering effort at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective social change at the marketing division of Going Digital Building International Sales In A Digital Economy is increasing uncertainty in the workplace causing different obstacles for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting calculated choices since Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Trade Compensation's treatment in the process. Offered the fact that the shop has a worldwide visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations might be able to affect efficiency or critical goals. Federal Profession Compensation's antitrust fit versus the merger took up valuable time of the organization's senior management recommending that 'political' factors can have major ramifications for a global business.

Economic Factors: Financial factors such as the development of small businesses in the worldwide situation suggest that Going Digital Building International Sales In A Digital Economy is prospering in a setting where there is possible development of services. Reality that store customers are primarily looking for office materials for house workplaces suggests that the market has a climbing fad of entrepreneurs and also house based organisations.

Social factors: Social patterns in the economic climate show that customers are trying to find ease in addition to appealing costs. Market research shows how the client for Going Digital Building International Sales In A Digital Economy lacks recognition about locating remedies which can offer a combination of convenience as well as low costs.

Technical factors: Technology plays a crucial duty in Going Digital Building International Sales In A Digital Economy's company method specifically as the company is piloting Technology facilities which would certainly provide technology sales as well as support in the type of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Symptoms.

Numerous underlying Business Behavior problems can be seen in Going Digital Building International Sales In A Digital Economy's case as highlighted in this section.

Worries about cultural change: There is uneasiness regarding a cultural modification that would certainly occur as soon as Todd Krasnow leaves from his setting as the Exec Vice President of Marketing with most of the personnel already revealing unhappiness over this possible move. This expected change has developed stress in the office which has been coupled with the previous stress and anxiety of preparing the firm for a potential merging with House Deport.
Pest Analysis
Stressful Task Setting for Newcomers: There is scarcity of workers that can match the difficult environment of a busy organization. Not only does this bring about trouble in finding the ideal people, it places anxiety on brand-new hires as can not withstand the speed as well as stress that the company anticipates them to bear.

Twin Reporting Lines: Novices find this organizational culture troublesome as well as difficult to cope with especially as populated line connections are indicated to be weak generally as well as unbiased setup and also performance analysis is still done by the strong line supervisor. This implies that newcomers can shed clarity concerning their corresponding roles as well as purposes particularly as populated line reporting does not keep them in straight communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles despite the fact that it had actually been speculated that the last would certainly take Krasnow's position came as an impact to her morale. Lewis might have been capable as well as proper for the job however the reality that Kransnow's departure would make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Anxiety & Job Insecurity: Concern and instability can be recognized as 2 significant worries that Lewis would certainly be dealing with specifically as the merging has actually currently be cancelled and 2 elderly executives of the advertising and marketing division would be leaving. The entire obligation of the division would certainly be dropping on Lewis's shoulders that would not simply supervise of brining concerning a social adjustment but would certainly likewise have to verify herself in her new role.

Inappropriate Monitoring Design of Leader: Lewis's monitoring style as well as its incompatibility with the advertising department's function can likewise be seen as an OB difficulty especially as she has actually been made use of to handling problems in the procedures division where employees are shown to concentrate on processes and get them right. The advertising and marketing department on the various other hand can be viewed as a group of people who are made use of to being supported by Krasnow that concentrated much more on output than procedures.

Interdepartmental Differences: Interdepartmental arguments between three departments, marketing, merchandizing and procedures specifically over the allotment of the advertising mix can be determined as one more OB concern. The advertising and marketing department does not share the exact same vision as the various other two divisions pertaining to the aloocation of the marketing mix twoards promos and advertsing, the merchandizing and procedures departments do not agree over the advertising and marketing mix allocation amongst one an additional either.

Disintegration in Marketing Department: Disintegration between the advertising and marketing departments can be identified as an additional OB concern which can need further attention. The reality that the marketing and advertising areas in the marketing department are separated is stopping both departments from getting from each various other's experience and knowledge. Integration of marketing with retailing and also operations would certainly become harder if the marketing division itself is degenerated which can be one more possible OB issue.

Going Digital Building International Sales In A Digital Economy Analysis

Numerous concepts have actually been utilized to describe the circumstances to get additional clarity regarding the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors think that staffs are easy and lazy, have little passion and also stand up to adjustment. The tough variation of this concept highlighted browbeating, tight controls, threats as well as punishments. With time it generates low productivity, refined sabotage as well as competition (Bargain, 2003). The circumstance at Going Digital Building International Sales In A Digital Economy is not completely complying with Theory X, it can be seen that new hires are discovering this setting rather difficult which might eventually lead to a greater disposition of the monitoring in the direction of Theory X. Based on McGregor's supported sight, which he called Theory Y, the important job of the administration is to prepare organizational conditions so that people can accomplish their own goals best by guiding their efforts in the direction of organizational rewards. If people locate no satisfaction in their work, the monitoring would have little selection yet to depend on theory X as well as exterior control (Deal, 2003). Also while evaluating Lewis's management design, theory X may have been suitable in the operations department to some extent however the Advertising and marketing department would certainly need dependence on Concept Y so as to get the creativity and originality from the teams.

Tuckman's Teamwork Theory: As far as Lewis's issue concerning bringing harmony in between the marketing and advertising department is concerned, this would at first lead to clash as gone over by Bruce Tuckman in his 'Team effort Theory'. By integrating the marketing and advertising department's work, there might be the same preliminary disconnect which could lead to the second stage of 'storming' where the groups challenge one another.

Bridges' Transition Design: As per William Bridge's theory (appendix 4), individuals are quite unpleasant with change, which is evident by the scenario at Going Digital Building International Sales In A Digital Economy The situation can be seen as a typical course of life if is studied according to Bridge's theory where he clarifies that individuals go through three phases of shift when they experience modification. 'Ending, shedding and also 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 feelings like unhappiness, uncertainty, stress, temper, anxiety, rejection and also disorientation.The scenario at the marketing division of Going Digital Building International Sales In A Digital Economy is similar so Lewis can get comfortable with the concept that it is not amazing actions. In the second stage, there might be a need to link the space in between the brand-new as well as old society so Lewis might need to face this challenge as soon as Krasnow leaves. There may be low spirits and reduced performance at this phase which must not be taken as an obstacle. It is throughout this phase that Lewis will certainly need to give guidance to the division to make sure that they can find an orientation. It can be seen just how Krasnow has actually currently made this shift simpler by making Lewis get associated with the division a year prior to his real separation. Based on Bridges' Model, stage three will certainly bring about visibility to discovering, High power and commitment as people will welcome the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has reviews the importance of 'protection needs as being a lower degree demand of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel protected and out of danger' is at the 2nd degree of needs. Prior to a staff member can be made to establish psychologically, he requires to have his 'Physiological 'and also 'Safety and security' needs fulfilled.

SWOT Analysis for Going Digital Building International Sales In A Digital Economy Case Study

Implication of Analysis.

The OB analysis has looked at numerous concepts to recognize how to manage the present circumstance handy. The following 3 choices have been proposed to aid Lewis take care of the organizational obstacles in the advertising and marketing division. Each of these choices has been recommended for easing the shift required to bring the advertising department in line with the needs of the marketplace and also for making the cultural change that would certainly adhere to when the existing leader leaves.

Integration of advertising and marketing features. Dividing Adverting and Manufacturing features. Combination of Marketing with Procedures.

Analysis of Alternatives.

Integration of Marketing & Marketing Functions: The internal advertising and marketing firm of Going Digital Building International Sales In A Digital Economy is already strength for the organization in regards to conserving up on overheads related to advertising and also promo. Because no new employment has been done after Bridget Cole's separation with the coverage line being straight assigned to Krasnow for the marketing function, this is a positive possibility for incorporating the marketing and advertising functions. Judith Shapiro that has earlier been talked to by Lewis during the earlier merging days has proficiency in business-to-business advertising and marketing along with company and also retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both marketing and advertising features.

The benefit of this strategy is that it will integrate the two features while minimizing the need for employing an extra resource for advertising. In addition to this, Lewis would be heading the advertising and marketing division and regardless her replacement would certainly be needed for the present role that she is carrying out. The downside of this option is that exterior hiring might bring about bitterness from interior personnel that may be considering the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting as well as Production: Provided the affordable stress and also premium quality job needed from the advertising agency, it is advised that Lewis should permit the production device to be a separate feature from the marketing system. Given that most ad agency had these two functions as separate units, it makes more feeling to adhere to the norm. In addition to this, both features might be able to concentrate on their core activates a lot more efficiently. The drawback of this strategy would certainly be that extra prices would certainly have to be birthed for setting up different production functions. Along with this, a production head might need to be worked with which might boost overheads for the company.

Integration of Marketing with Procedures: Given that Lewis is already looking after the marketing as well as operations departments concurrently; it makes good sense to incorporate the two functions given that she has been effectively looking after both ends. The fact that the two departments currently have major differences over allotment of sources suggests that this integration may be able to cause consistency specifically as Lewis would certainly be heading both ends.However there are various disadvantages of this move especially as it would certainly place too much burden over Lewis's shoulders. The reality that Lewis needs to adjust her management design for the advertising department suggests that these two divisions would be culturally diverse. In addition to this, Lewis might not be able to apply one sort of management design to both departments which can cause ineffectiveness in either one of both functions.


An analysis of the three options shows that combination of marketing and operations would not be a feasible step due to the substantial differences between the 2 divisions in spite of the reality that presently Lewis is taking care of both. While splitting up of the production function may have been a favorable relocation for the marketing division, the truth that it would certainly indicate putting a third feature under Lewis's wing indicates this should be prevented.

Action Plan.
Lewis will take control of the function of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be merged.

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

Production feature will continue to be component of advertising and marketing under marketing feature.

Lewis will divide herself from operations.

A democratic management design with employee empowerment will be used in advertising department.

Open up door plan as well as focus on cross departmental communication will certainly be aimed at eliminating dissonance.

Backup strategy.

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