Gomak Inc Case Study Analysis


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Gomak Inc Case Study Analysis

Background and Facts

Gomak Inc a workplace products merchant for little and also average sized companies has actually recently been involved in preparing for a merging with its competitor Home Deport, which has actually affected effectiveness degrees in departmentswith the elderly manager involved in lawful complications presented by the government Trade Commission. With the Advertising and marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the near future. With difficulties in the kind of a prospective social change and also low employee spirits, the organization is in need of a full reengineering initiative at the advertising and marketing department.

Issue Statement
Porter's 5 Forces Analysis
The potential social change at the advertising department of Gomak Inc is boosting uncertainty in the working environment resulting in numerous obstacles 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 function in influencing tactical decisions given that Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Profession Payment's intervention in the process. Provided the truth that the store has a worldwide existence with branches in UK, USA, Canada and Germany, political consider each of these nations might have the ability to impact performance or tactical objectives. Federal Trade Commission's antitrust match versus the merging occupied useful time of the company's senior administration suggesting that 'political' factors can have serious ramifications for an international company.

Economic Factors: Financial factors such as the emergence of small companies in the international circumstance suggest that Gomak Inc is thriving in a setting where there is possible development of companies. Fact that store customers are mainly looking for office products for home workplaces recommends that the market has an increasing pattern of business owners and also residence based services.

Social factors: Social trends in the economy show that customers are searching for comfort in addition to appealing prices. Market research demonstrates how the consumer for Gomak Inc does not have understanding concerning discovering solutions which can offer a combination of comfort as well as affordable.

Technical factors: Modern technology plays an essential function in Gomak Inc's organisation technique especially as the company is piloting Innovation facilities which would certainly provide innovation sales as well as assistance in the kind of memory upgrades, peripheral setups. (Summary of BUG in appendix 2).

OB Issues and Manifestations.

Numerous underlying Organizational Habits concerns can be seen in Gomak Inc's case as highlighted in this area.

Concerns regarding cultural change: There is concern regarding a cultural modification that would certainly take place when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with most of the personnel currently revealing unhappiness over this potential move. This expected change has actually developed stress and anxiety in the work environment which has been coupled with the previous anxiety of preparing the company for a potential merger with House Deport.
Pest Analysis
Stressful Task Environment for Newcomers: There is scarcity of personnel that can match the demanding atmosphere of a busy company. Not only does this result in trouble in finding the ideal individuals, it puts tension on brand-new hires as can not endure the speed and also pressure that the company expects them to birth.

Dual Coverage Lines: Novices discover this organizational culture troublesome as well as difficult to handle especially as populated line connections are meant to be weaker as a whole and objective setup and also efficiency evaluation is still done by the strong line supervisor. This suggests that newbies might lose clearness concerning their corresponding duties as well as objectives especially as dotted line coverage does not keep them in straight interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had been guessed that the last would take Krasnow's position came as a strike to her spirits. Lewis may have been capable and proper for the task yet the reality that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Work Insecurity: Fear and instability can be identified as 2 major concerns that Lewis would certainly be handling specifically as the merging has actually now be cancelled as well as two senior execs of the marketing department would certainly be leaving. The whole obligation of the division would be dropping on Lewis's shoulders that would not simply be in charge of brining regarding a social adjustment however would certainly also need to verify herself in her brand-new duty.

Incompatible Monitoring Style of Leader: Lewis's administration style and also its incompatibility with the advertising department's function can likewise be viewed as an OB challenge specifically as she has been used to managing problems in the operations department where personnel are instructed to focus on processes and get them right. The advertising and marketing division on the other hand can be viewed as a group of individuals that are used to being nurtured by Krasnow who concentrated extra on outcome than procedures.

Interdepartmental Differences: Interdepartmental disagreements between 3 departments, advertising and marketing, merchandizing and also operations specifically over the allotment of the advertising mix can be recognized as an additional OB issue. The marketing department does not share the exact same vision as the various other two departments pertaining to the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and also operations departments do not agree over the marketing mix allotment among one an additional either.

Disintegration in Advertising And Marketing Department: Fragmentation in between the advertising and marketing departments can be determined as an additional OB issue which can need more focus. The fact that the marketing and advertising sections in the advertising division are disconnected is avoiding both divisions from acquiring from each other's experience and also proficiency. Combination of marketing with merchandising as well as procedures would certainly come to be harder if the advertising and marketing division itself is degenerated which can be one more prospective OB concern.

Gomak Inc Analysis

Various theories have actually been used to discuss the circumstances to obtain additional quality regarding the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that staffs are easy and also lazy, have little ambition and withstand change. The situation at Gomak Inc is not totally complying with Theory X, it can be seen that brand-new hires are finding this setting rather demanding which might at some point lead to a greater disposition of the monitoring in the direction of Theory X. Also while examining Lewis's monitoring design, theory X might have been suitable in the operations division to some extent however the Advertising division would need dependence on Concept Y in order to obtain the creativity and creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's concern about bringing consistency in between the marketing and advertising division is worried, this would originally bring about conflict as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, during the initial stage of group development, people may not bond, as they are busy discovering their location in the team. By incorporating the marketing and advertising division's job, there may be the same preliminary detach which could bring about the second stage of 'storming' where the groups challenge each other. It is only throughout the third phase or 'norming' when they would certainly come together to share suggestions prior to the group can bring about synergy in the 4th stage 'doing'.

When individuals are provided with modification, they enter stage one and also so there may be emotions like unhappiness, unpredictability, irritation, rage, worry, rejection as well as disorientation.The circumstance at the advertising and marketing division of Gomak Inc is similar so Lewis can obtain comfortable with the concept that it is not amazing actions. It is during this stage that Lewis will have to offer support to the department so that they can locate a feeling of instructions. It can be seen how Krasnow has already made this change less complicated by making Lewis get included in the department a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has reviews the importance of 'protection needs as being a reduced degree demand of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel safe and also out of risk' is at the 2nd degree of requirements. Prior to a worker can be made to create mentally, he needs to have his 'Physical 'and also 'Security' requires met.

SWOT Analysis for Gomak Inc Case Study

Implication of Analysis.

The OB analysis has checked out numerous concepts to understand how to handle the existing scenario handy. The adhering to three options have been recommended to aid Lewis manage the organizational difficulties in the advertising and marketing department. Each of these choices has actually been proposed for relieving the transition needed to bring the marketing department according to the demands of the marketplace as well as for making the social modification that would certainly comply with as soon as the existing leader leaves.

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

Assessment of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merger days has proficiency in business-to-business marketing along with firm and retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing and marketing features.

The advantage of this strategy is that it will certainly incorporate both features while lowering the need for hiring an extra source for marketing. In addition to this, Lewis would certainly be heading the advertising and marketing division and all the same her replacement would certainly be required for the existing function that she is doing. The drawback of this option is that outside hiring might cause resentment from internal personnel who may be eying the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Manufacturing: Given the competitive pressures as well as excellent quality work required from the ad agency, it is suggested that Lewis must allow the production system to be a separate feature from the advertising system. Considering that most advertising agencies had these 2 features as separate devices, it makes more feeling to follow the standard. In addition to this, both functions may be able to focus on their core turns on a lot more successfully. However, the drawback of this approach would certainly be that added expenses would certainly need to be birthed for setting up separate manufacturing functions. A manufacturing head might have to be employed which might boost overheads for the organization.

Assimilation of Marketing with Workflows: Because Lewis is already caring for the advertising and operations divisions at the same time; it makes good sense to incorporate the two features considering that she has actually been effectively looking after both ends. The truth that the two divisions already have significant distinctions over allowance of resources suggests that this integration may have the ability to cause consistency particularly as Lewis would certainly be heading both ends.However there are numerous negative aspects of this move specifically as it would put way too much worry over Lewis's shoulders. The truth that Lewis has to adapt her monitoring design for the advertising department suggests that these 2 departments would be culturally varied. Lewis might not be able to use one kind of management design to both divisions which might result in inadequacy in either one of the two features.


An analysis of the three choices shows that combination of marketing and also operations would not be a practical step due to the huge differences in between the two divisions although that currently Lewis is managing both. While separation of the manufacturing feature may have been a favorable move for the advertising department, the truth that it would suggest putting a third function under Lewis's wing means this need to be prevented. The assimilation of the marketing department is the most effective alternative in regards to getting the optimal arise from the department. An action plan for this choice is reviewed below.

Action Strategy.
Lewis will take control of the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

Production function will remain part of advertising and marketing under advertising function.

Lewis will separate herself from procedures.

A democratic management design with worker empowerment will be used in advertising division.

Open door policy as well as focus on cross department interaction will be aimed at removing dissonance.

Backup strategy.

If the combination does not exercise as prepared, a backup plan would comply with which would separate the production feature from the advertising and marketing function to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing division without an SVP. In that case the manufacturing function will definitely be divided by positioning it under an SVP manufacturing.