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Gomak Inc Case Study Analysis

Background and Facts

Gomak Inc a workplace materials store for small as well as medium sized companies has recently been associated with preparing for a merger with its competitor Residence Deport, which has impacted effectiveness degrees in departmentswith the senior supervisor associated with legal difficulties put forth by the government Trade Commission. With the Advertising and marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the future. With challenges in the form of a prospective cultural adjustment and reduced staff member spirits, the company requires a full reengineering effort at the advertising department.

Problem Statement

The possible cultural adjustment at the marketing division of Gomak Inc is raising uncertainty in the working environment causing various challenges for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting strategic decisions considering that Stapes Inc. had to desert its strategies of combining with Workplace Deport after the Federal Profession Commission's intervention in the process. Offered the reality that the store 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 affect efficiency or tactical objectives. Federal Profession Payment's antitrust suit against the merger took up important time of the company's senior management recommending that 'political' factors can have severe ramifications for a global service.

Economic Factors: Economic factors such as the introduction of small companies in the global circumstance recommend that Gomak Inc is flourishing in an environment where there is possible development of businesses. Along with this, reality that store consumers are primarily seeking office supplies for home offices suggests that the market has an increasing fad of entrepreneurs and online businesses.

Social factors: Social trends in the economy show that consumers are seeking convenience as well as attractive prices. Marketing research demonstrates how the consumer for Gomak Inc does not have recognition about locating services which can provide a combination of convenience and affordable.

Technological factors: Innovation plays a vital duty in Gomak Inc's business technique particularly as the company is piloting Technology centers which would certainly supply modern technology sales and also assistance in the form of memory upgrades, peripheral installments. (Recap of PARASITE in appendix 2).

OB Issues and Effects.

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

Worries concerning social change: There is uneasiness about a social modification that would certainly occur when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with the majority of the employee currently revealing discontent over this potential step. This predicted change has actually developed stress in the work environment which has actually been paired with the past stress and anxiety of preparing the company for a possible merging with Residence Deport.

Stressful Job Atmosphere for Newcomers: There is shortage of workers that can match the difficult environment of a busy organization. Not just does this cause trouble in finding the ideal people, it puts tension on new hires as can not withstand the pace and also stress that the company anticipates them to bear.

Dual Coverage Lines: Newbies discover this business society cumbersome as well as challenging to handle especially as dotted line partnerships are meant to be weak in general and unbiased setup as well as performance analysis is still done by the solid line supervisor. This implies that novices might shed clearness about their respective duties and also objectives especially as dotted line reporting does not maintain them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had actually been speculated that the last would certainly take Krasnow's placement came as a blow to her morale. Lewis may have been capable and appropriate for the job yet the fact that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Task Instability: Worry and insecurity can be determined as two significant worries that Lewis would be handling especially as the merging has actually currently be cancelled as well as two senior executives of the advertising and marketing department would certainly be leaving. The entire obligation of the department would be dropping on Lewis's shoulders that would certainly not simply supervise of brining about a social adjustment however would certainly additionally need to show herself in her brand-new role.

Inappropriate Monitoring Style of Leader: Lewis's management 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 managing concerns in the procedures department where employees are instructed to focus on processes as well as get them. The advertising and marketing department on the various other hand can be seen as a team of individuals that are used to being nurtured by Krasnow that concentrated a lot more on result than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between three divisions, advertising and marketing, merchandizing and operations respectively over the allotment of the advertising mix can be identified as an additional OB worry. Although the marketing department does not share the very same vision as the various other 2 divisions concerning the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and also operations divisions do not agree over the marketing mix allowance among each other either.

Fragmentation in Advertising And Marketing Division: Fragmentation between the advertising and marketing divisions can be identified as another OB problem which could require additional focus. The reality that the advertising and marketing sections in the marketing department are detached is avoiding both departments from getting from each various other's experience as well as competence. Combination of advertising with retailing and also procedures would certainly end up being harder if the marketing division itself is degenerated which can be another possible OB issue.

Gomak Inc Analysis

Numerous theories have been used to explain the scenarios to get further clearness concerning the circumstance handy.

McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors think that subordinates are passive and also lazy, have little passion and also stand up to adjustment. The scenario at Gomak Inc is not totally adhering to Concept X, it can be seen that new hires are finding this environment instead demanding which might at some point lead to a greater inclination of the administration towards Theory X. Even while examining Lewis's monitoring design, concept X might have been ideal in the procedures department to some degree yet the Advertising and marketing division would call for dependence on Concept Y in order to get the imagination as well as creativity from the teams.

Tuckman's Team effort Concept: As far as Lewis's concern about bringing consistency between the advertising and marketing department is worried, this would at first cause contrast as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, throughout the preliminary stage of team advancement, people may not bond, as they are busy finding their area in the team. By combining the advertising and marketing division's work, there may be the same first disconnect which can lead to the second stage of 'storming' where the groups challenge each other. Nonetheless, it is just during the third phase or 'norming' when they would certainly come together to share suggestions prior to the team can bring about harmony in the fourth phase 'performing'.

Bridges' Shift Version: According To William Bridge's theory (appendix 4), people are fairly awkward with adjustment, which is apparent by the scenario at Gomak Inc The scenario can be viewed as a regular training course of life if is examined according to Bridge's concept where he explains that people go through 3 stages of change when they experience adjustment. 'Ending, losing and Releasing', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When people exist with adjustment, they enter phase one and so there may be feelings like sadness, unpredictability, irritation, temper, fear, rejection as well as disorientation.The circumstance at the advertising division of Gomak Inc is similar so Lewis can obtain comfy with the concept that it is not remarkable behavior. In the second stage, there might be a requirement to link the gap between the brand-new and old culture so Lewis might need to face this experience once Krasnow leaves. There might be low spirits as well as low productivity at this phase which ought to not be taken as an obstacle. It is during this stage that Lewis will certainly need to offer guidance to the department so that they can discover a sense of direction. It can be seen exactly how Krasnow has already made this change much easier by making Lewis obtain involved in the division a year prior to his actual departure. As per Bridges' Model, stage three will certainly bring about openness to understanding, High power as well as dedication as individuals will certainly welcome the change (Bridges, 2004).

Maslow's Need power structure: The OB concern related to instability at the office has been caused first of all by the adjustment in monitoring as well as secondly by the fact that the merger will no more be initiated. Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has discusses the significance of 'safety needs as being a lower level requirement of a human for triggering inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to really feel secure as well as untouched' is at the second level of demands. Before an employee can be made to develop emotionally, he requires to have his 'Physiological 'as well as 'Safety and security' requires satisfied. This shows that unless the personnel are made to really feel protected concerning their current work status in Gomak Inc they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Gomak Inc Case Study

Ramification of Analysis.

The OB analysis has actually taken a look at various concepts to understand just how to deal with the current scenario available. The following three alternatives have actually been suggested to assist Lewis manage the organizational obstacles in the advertising and marketing department. Each of these choices has actually been recommended for easing the change needed to bring the marketing department according to the needs of the marketplace as well as for making the cultural adjustment that would follow as soon as the current leader leaves.

Assimilation of advertising and marketing features. Separating Adverting as well as Manufacturing features. Combination of Marketing with Operations.

Evaluation of Alternatives.

Assimilation of Advertising & Advertising And Marketing Functions: The internal advertising and marketing company of Gomak Inc is currently stamina for the company in regards to saving up on expenses connected to advertising and marketing and promo. Given that no new recruitment has actually been done after Bridget Cole's departure with the reporting line being directly designated to Krasnow for the advertising feature, this is a favorable possibility for incorporating the marketing and advertising features. Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merging days has proficiency in business-to-business advertising together with company and retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to handle both advertising and marketing functions.

The benefit of this strategy is that it will incorporate both features while lowering the need for working with an added source for advertising. Lewis would be heading the marketing division as well as in any type of case her substitute would certainly be required for the present role that she is performing. The negative aspect of this choice is that outside hiring may produce bitterness from interior workers who might be considering the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Manufacturing: Provided the competitive pressures and also excellent quality work needed from the advertising agency, it is recommended that Lewis ought to permit the manufacturing device to be a different feature from the advertising and marketing unit. Since most advertising agencies had these two functions as different devices, it makes more sense to comply with the standard. Both features may be able to focus on their core triggers much more efficiently. The drawback of this method would certainly be that added costs would have to be birthed for establishing up separate production functions. In addition to this, a manufacturing head may need to be hired which can increase expenses for the organization.

Combination of Marketing with Operations: Since Lewis is already taking treatment of the advertising and also operations departments all at once; it makes feeling to incorporate the two features considering that she has been effectively taking care of both ends. The fact that Lewis has to adapt her administration style for the advertising division recommends that these 2 divisions would be culturally varied.


An evaluation of the 3 alternatives shows that assimilation of marketing as well as procedures would not be a practical action as a result of the large distinctions between both divisions although that currently Lewis is taking care of both. While splitting up of the production feature might have been a beneficial step for the advertising and marketing department, the truth that it would certainly mean positioning a 3rd feature under Lewis's wing means this need to be avoided. The assimilation of the advertising division is the most effective choice in terms of obtaining the optimum results from the department. An action prepare for this option is talked about listed below.

Activity Plan.

Lewis will certainly take control of the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

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

Manufacturing feature will certainly remain component of advertising under advertising function.

Lewis will certainly divide herself from operations.

An autonomous leadership design with employee empowerment will be utilized in advertising department.

Open up door policy and focus on cross department interaction will certainly be focused on eliminating dissonance.

Backup plan.

If the assimilation does not work out as prepared, a contingency plan would certainly comply with which would certainly separate the production feature from the advertising function to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing department without an SVP. In that case the production function will definitely be divided by putting it under an SVP manufacturing.