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


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 materials merchant for small and also average sized companies has actually just recently been associated with planning for a merger with its rival Home Deport, which has influenced performance levels in departmentswith the elderly supervisor involved in lawful difficulties presented by the government 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 obstacles in the kind of a prospective social modification and low staff member spirits, the organization is in need of a full reengineering effort at the advertising and marketing division.

Problem Declaration

The potential social change at the advertising and marketing department of Going Digital Building International Sales In A Digital Economy is boosting uncertainty in the working environment bring about 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 role in affecting critical choices because Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Trade Compensation's intervention at the same time. Provided the reality that the shop has a global existence with branches in UK, USA, Canada as well as Germany, political consider each of these countries might be able to affect performance or tactical goals. Federal Profession Payment's antitrust suit versus the merging occupied beneficial time of the organization's senior management recommending that 'political' factors can have significant implications for an international company.

Economic Factors: Economic factors such as the emergence of small companies in the worldwide situation recommend that Going Digital Building International Sales In A Digital Economy is flourishing in an environment where there is prospective development of organisations. Along with this, reality that store customers are mainly searching for office materials for home offices recommends that the market has a rising pattern of entrepreneurs and home based services.

Social factors: Social trends in the economic climate show that consumers are trying to find comfort in addition to attractive prices. Market research demonstrates how the consumer for Going Digital Building International Sales In A Digital Economy does not have recognition regarding locating services which can use a mix of ease and affordable.

Technological factors: Modern technology plays an essential function in Going Digital Building International Sales In A Digital Economy's organisation approach especially as the organization is piloting Modern technology centers which would certainly offer innovation sales and support in the form of memory upgrades, outer installations. (Recap of PEST in appendix 2).

OB Issues and also Symptoms.

Several underlying Organizational Behavior problems can be seen in Going Digital Building International Sales In A Digital Economy's case as highlighted in this area.

Concerns concerning social modification: There is concern regarding a social change that would certainly occur when Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with the majority of the personnel currently showing discontent over this prospective step. This anticipated modification has actually created tension in the work environment which has actually been combined with the past anxiety of preparing the company for a potential merger with Residence Deport.

Demanding Work Environment for Newcomers: There is scarcity of personnel that can match the demanding setting of a fast-paced organization. Not just does this result in trouble in locating the right people, it places anxiety on brand-new hires as can not withstand the speed as well as stress that the organization expects them to birth.

Dual Reporting Lines: Newbies find this organizational culture difficult and also difficult to manage particularly as dotted line partnerships are implied to be weak in general as well as objective setup as well as efficiency analysis is still done by the strong line manager. This implies that newbies might lose quality concerning their corresponding duties and purposes especially as populated line reporting does not maintain them in direct interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles despite the fact that it had been speculated that the last would certainly take Krasnow's position came as a blow to her morale. Lewis might have been capable and also suitable for the job however the fact that Kransnow's separation would certainly make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Work Insecurity: Fear and also insecurity can be recognized as two major problems that Lewis would be managing particularly as the merger has actually currently be terminated and two senior execs of the advertising department would certainly be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders who would not simply be in charge of brining concerning a social modification however would certainly also need to confirm herself in her new function.

Incompatible Monitoring Style of Leader: Lewis's management design and also its incompatibility with the advertising division's duty can additionally be seen as an OB challenge especially as she has been made use of to dealing with issues in the operations division where workers are educated to focus on processes and get them. The advertising and marketing department on the other hand can be viewed as a team of individuals that are utilized to being supported by Krasnow that focused a lot more on outcome than processes.

Interdepartmental Disputes: Interdepartmental differences between three divisions, marketing, merchandizing as well as operations respectively over the allocation of the marketing mix can be recognized as another OB problem. The marketing department does not share the exact same vision as the various other 2 departments relating to the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and also procedures departments do not concur over the marketing mix allotment among one another either.

Fragmentation in Advertising Division: Fragmentation in between the marketing and advertising departments can be identified as another OB concern which might require further attention. The reality that the marketing and advertising sections in the advertising division are disconnected is preventing both divisions from getting from each other's experience as well as proficiency. Integration of advertising with retailing and procedures would certainly come to be more difficult if the advertising and marketing division itself is disintegrated which can be an additional potential OB issue.

Going Digital Building International Sales In A Digital Economy Analysis

Different concepts have actually been used to clarify the scenarios to get further quality regarding the circumstance handy.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers think that staffs are easy and also careless, have little aspiration as well as withstand adjustment. The situation at Going Digital Building International Sales In A Digital Economy is not totally adhering to Concept X, it can be seen that new hires are finding this setting rather stressful which may ultimately lead to a higher inclination of the administration in the direction of Concept X. Even while analyzing Lewis's administration style, theory X might have been appropriate in the procedures department to some degree but the Marketing division would certainly call for reliance on Concept Y in order to obtain the imagination and also originality from the groups.

Tuckman's Team effort Theory: As far as Lewis's worry regarding bringing consistency between the marketing and also advertising department is worried, this would originally lead to conflict as talked about by Bruce Tuckman in his 'Synergy Concept'. By combining the marketing and also marketing department's work, there may be the exact same first separate which might lead to the second stage of 'storming' where the teams test one an additional.

When people are provided with change, they enter phase one as well as so there might be feelings like unhappiness, unpredictability, aggravation, rage, concern, denial and disorientation.The situation at the advertising division of Going Digital Building International Sales In A Digital Economy is comparable so Lewis can get comfortable with the idea that it is not phenomenal habits. It is throughout this phase that Lewis will certainly have to offer advice to the department so that they can locate a sense of direction. It can be seen exactly how Krasnow has currently made this shift less complicated by making Lewis obtain included in the department a year prior to his real separation.

Maslow's Requirement pecking order: The OB problem pertaining to instability at the workplace has actually been set off first of all by the change in monitoring and second of all by the fact that the merging will no more be initiated. Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has talks about the significance of 'security needs as being a lower degree need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel protected and also safe' goes to the 2nd level of requirements. Prior to an employee can be made to establish psychologically, he requires to have his 'Physical 'as well as 'Safety' requires met. This indicates that unless the workers are made to really feel protected concerning their current work standing in Going Digital Building International Sales In A Digital Economy they may not get to 'Self-Fulfillment'. (King, 2009).

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

Effects of Analysis.

The OB analysis has checked out numerous theories to understand exactly how to cope with the existing situation handy. The adhering to 3 alternatives have been suggested to help Lewis take care of the business challenges in the advertising department. Each of these choices has been recommended for reducing the transition needed to bring the advertising and marketing department in accordance with the needs of the marketplace and for making the cultural change that would certainly adhere to once the present leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting and also Production functions. Assimilation of Advertising with Procedures.

Analysis of Alternatives.

Integration of Marketing & Advertising Functions: The internal advertising firm of Going Digital Building International Sales In A Digital Economy is already stamina for the organization in terms of conserving up on expenses connected to advertising and marketing and also promotion. 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 feature, this is a beneficial possibility for integrating the marketing and advertising features. Judith Shapiro who has earlier been interviewed by Lewis during the earlier merger days has knowledge in business-to-business marketing together with agency as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to take care of both advertising and marketing features.

The advantage of this method is that it will incorporate the two functions while lowering the demand for working with an additional source for advertising. Lewis would be heading the marketing division and also in any case her replacement would be needed for the current function that she is executing. The disadvantage of this choice is that external hiring might produce bitterness from interior employees who might be eying the placement of EVP after Lewis takes over Krasnow's position.

Separating Adverting and also Manufacturing: Given the affordable pressures and premium quality job called for from the ad agency, it is advised that Lewis should permit the manufacturing unit to be a different feature from the advertising and marketing device. Considering that the majority of ad agency had these two features as separate devices, it makes more feeling to follow the standard. Both functions may be able to focus on their core triggers extra successfully. The disadvantage of this strategy would certainly be that extra expenses would have to be borne for setting up different production features. A production head might have to be hired which might enhance expenses for the company.

Assimilation of Advertising with Operations: Because Lewis is already taking treatment of the marketing and procedures departments at the same time; it makes feeling to incorporate the 2 functions considering that she has been successfully taking treatment of both ends. The reality that Lewis has to adjust her administration style for the advertising department recommends that these 2 divisions would certainly be culturally diverse.


An examination of the three options shows that integration of marketing and also operations would not be a feasible step due to the huge distinctions in between the two divisions in spite of the truth that presently Lewis is managing both. While splitting up of the production feature might have been a favorable action for the advertising division, the fact that it would certainly mean placing a third function under Lewis's wing implies this should be stayed clear of.

Activity Strategy.

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

Advertising and Marketing features would be combined.

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

Production feature will stay component of advertising under advertising and marketing feature.

Lewis will certainly separate herself from procedures.

A democratic leadership style with staff member empowerment will be made use of in marketing department.

Open up door policy and also emphasis on cross department communication will certainly be aimed at removing discord.

Backup plan.

If the assimilation does not work out as intended, a contingency plan would certainly adhere to which would divide the manufacturing feature from the advertising and marketing feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising division without an SVP. Because case the manufacturing feature will certainly be separated by putting it under an SVP production.