Kennedy And The Bay Of Pigs Case Study Analysis


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Background and Facts

Kennedy And The Bay Of Pigs an office supplies retailer for tiny and medium sized organisations has just recently been associated with planning for a merger with its competitor Residence Deport, which has actually impacted performance levels in departmentswith the elderly manager involved in legal problems put forth by the federal Trade Commission. With the Advertising and marketing Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the future. With obstacles in the type of a potential cultural change and low employee morale, the organization is in need of a full reengineering initiative at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising and marketing division of Kennedy And The Bay Of Pigs is increasing uncertainty in the working environment resulting in various obstacles 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 role in affecting strategic choices since Stapes Inc. needed to abandon its plans of combining with Workplace Deport after the Federal Trade Payment's intervention at the same time. Offered the fact that the shop has an international existence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these nations may be able to influence efficiency or tactical goals. Federal Profession Payment's antitrust fit versus the merger used up beneficial time of the company's elderly monitoring suggesting that 'political' factors can have severe effects for a worldwide service.

Economic Factors: Economic factors such as the emergence of small businesses in the worldwide scenario suggest that Kennedy And The Bay Of Pigs is flourishing in an environment where there is potential development of businesses. Along with this, truth that shop consumers are primarily seeking workplace supplies for office suggests that the market has an increasing pattern of business owners and home based businesses.

Social factors: Social trends in the economy reveal that consumers are looking for ease along with eye-catching prices. Market research demonstrates how the customer for Kennedy And The Bay Of Pigs lacks recognition concerning locating options which can provide a combination of benefit and also inexpensive.

Technical factors: Innovation plays a vital role in Kennedy And The Bay Of Pigs's service method specifically as the organization is piloting Modern technology facilities which would certainly offer modern technology sales and assistance in the kind of memory upgrades, peripheral setups. (Recap of BUG in appendix 2).

OB Issues and Manifestations.

Several underlying Business Behavior concerns can be seen in Kennedy And The Bay Of Pigs's case as highlighted in this section.

Worries concerning cultural change: There is apprehension concerning a social change that would certainly take place as soon as Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising And Marketing with most of the personnel already revealing unhappiness over this prospective move. This anticipated change has produced stress in the work environment which has been paired with the past stress and anxiety of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is lack of employees that can match the demanding atmosphere of a hectic organization. Not just does this lead to trouble in finding the appropriate people, it puts stress and anxiety on brand-new hires as can not hold up against the speed and also stress that the organization anticipates them to bear.

Double Reporting Lines: Newbies find this organizational society difficult and challenging to deal with specifically as dotted line connections are indicated to be weak as a whole and also unbiased setup and also efficiency assessment is still done by the solid line supervisor. This suggests that newcomers could lose clearness about their particular functions and purposes particularly as populated line coverage does not keep them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles even though it had been guessed that the last would certainly take Krasnow's placement came as an impact to her morale. Lewis might have been qualified and also proper for the task however the fact that Kransnow's separation would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from services.

Anxiety & Task Instability: Fear and also instability can be recognized as two major concerns that Lewis would be dealing with especially as the merging has currently be cancelled as well as two elderly execs of the advertising and marketing department would be leaving. The whole responsibility of the division would be falling on Lewis's shoulders who would not simply supervise of brining regarding a cultural change however would certainly also have to prove herself in her brand-new function.

Incompatible Administration Design of Leader: Lewis's monitoring design and also its conflict with the marketing department's duty can also be seen as an OB obstacle particularly as she has actually been utilized to dealing with concerns in the procedures division where workers are educated to focus on procedures and also get them. The advertising division on the other hand can be seen as a team of individuals who are used to being nurtured by Krasnow that concentrated extra on result than procedures.

Interdepartmental Differences: Interdepartmental differences between 3 departments, advertising, merchandizing and also procedures respectively over the appropriation of the marketing mix can be recognized as another OB concern. Although the marketing department does not share the exact same vision as the various other 2 departments pertaining to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and operations departments do not concur over the advertising and marketing mix allotment amongst one another either.

Fragmentation in Advertising And Marketing Division: Fragmentation in between the marketing and advertising departments can be identified as another OB concern which can need more attention. The reality that the advertising and marketing areas in the marketing division are detached is stopping both departments from acquiring from each other's experience and also proficiency. Assimilation of advertising with retailing and also operations would certainly end up being harder if the advertising and marketing department itself is disintegrated which can be an additional prospective OB problem.

Kennedy And The Bay Of Pigs Analysis

Various concepts have actually been used to explain the situations to get more quality regarding the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that staffs are easy and careless, have little passion and also withstand change. The tough version of this concept emphasized threat, tight controls, hazards and also punishments. In time it creates reduced productivity, refined sabotage and competition (Bargain, 2003). Although the situation at Kennedy And The Bay Of Pigs is not totally adhering to Theory X, it can be seen that new hires are discovering this atmosphere instead stressful which might eventually cause a better disposition of the management towards Theory X. As per McGregor's promoted view, which he called Concept Y, the vital task of the management is to arrange business conditions to make sure that individuals can attain their very own objectives best by guiding their efforts towards organizational benefits. If people locate no contentment in their work, the monitoring would have little selection yet to rely upon theory X and outside control (Deal, 2003). Also while examining Lewis's management style, theory X may have appropriated in the procedures department somewhat yet the Advertising division would certainly need reliance on Concept Y to get the imagination and also creativity from the groups.

Tuckman's Team effort Theory: Regarding Lewis's concern regarding bringing harmony between the advertising and marketing division is worried, this would initially lead to conflict as discussed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, during the first phase of group advancement, people may not bond, as they are hectic locating their area in the group. By combining the advertising and marketing division's work, there might be the same initial separate which can cause the second stage of 'storming' where the teams test one another. It is only during the 3rd phase or 'norming' when they would come together to share ideas before the team can bring around synergy in the fourth phase 'carrying out'.

When people are offered with adjustment, they get in phase one and also so there may be feelings like sadness, unpredictability, disappointment, temper, fear, rejection as well as disorientation.The situation at the advertising and marketing department of Kennedy And The Bay Of Pigs is similar so Lewis can obtain comfortable with the suggestion that it is not remarkable behavior. It is throughout this stage that Lewis will have to give advice to the department so that they can find a feeling of direction. It can be seen just how Krasnow has currently made this change much easier by making Lewis obtain included in the department a year before his real separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has discusses the relevance of 'security needs as being a reduced level requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel safe and also out of danger' is at the second degree of needs. Prior to an employee can be made to develop psychologically, he requires to have his 'Physical 'as well as 'Safety and security' requires fulfilled.

SWOT Analysis for Kennedy And The Bay Of Pigs Case Study

Implication of Analysis.

The OB analysis has looked at different theories to recognize how to manage the present scenario handy. The adhering to 3 options have actually been recommended to assist Lewis handle the organizational difficulties in the advertising and marketing division. Each of these alternatives has been proposed for alleviating the change required to bring the advertising and marketing department in line with the requirements of the marketplace and also for making the cultural adjustment that would certainly follow once the present leader leaves.

Integration of marketing and advertising features. Separating Adverting and Production features. Combination of Marketing with Workflow.

Assessment of Alternatives.

Integration of Advertising And Marketing & Advertising Functions: The in-house marketing agency of Kennedy And The Bay Of Pigs is currently strength for the organization in terms of saving up on overheads associated with advertising and promotion. Since no brand-new recruitment has actually been done after Bridget Cole's departure with the reporting line being straight appointed to Krasnow for the advertising feature, this is a positive possibility for integrating the marketing and advertising features. Judith Shapiro that has earlier been interviewed by Lewis during the earlier merger days has expertise in business-to-business advertising and marketing along with company as well as retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to manage both advertising and marketing functions.

The advantage of this method is that it will incorporate the two features while minimizing the requirement for employing an additional resource for marketing. Lewis would certainly be heading the advertising and marketing division as well as in any kind of case her substitute would certainly be required for the existing function that she is performing. The downside of this choice is that external hiring may produce bitterness from internal personnel that may be looking at the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and also Production: Given the affordable pressures and also high quality work required from the ad agency, it is suggested that Lewis must enable the manufacturing system to be a separate function from the advertising device. Because the majority of ad agency had these two features as separate systems, it makes even more sense to follow the norm. In addition to this, both features might have the ability to focus on their core turns on extra efficiently. The disadvantage of this technique would certainly be that added prices would certainly have to be borne for establishing up different manufacturing features. In addition to this, a manufacturing head might have to be employed which can enhance expenses for the company.

Integration of Advertising with Workflows: Given that Lewis is already dealing with the advertising and procedures divisions at the same time; it makes sense to incorporate the two functions because she has been successfully dealing with both ends. The fact that the two divisions already have significant differences over allocation of resources suggests that this integration may be able to cause harmony especially as Lewis would be heading both ends.However there are different disadvantages of this action especially as it would put too much concern over Lewis's shoulders. The truth that Lewis has to adjust her administration style for the advertising and marketing department suggests that these two divisions would certainly be culturally varied. Lewis might not be able to apply one type of leadership style to both divisions which could result in inefficiency in either one of the 2 features.


An evaluation of the three choices suggests that assimilation of advertising and marketing as well as procedures would not be a feasible relocation because of the huge differences in between the two divisions despite the fact that presently Lewis is managing both. While separation of the production function might have been a favorable action for the advertising department, the fact that it would indicate putting a 3rd feature under Lewis's wing implies this must be stayed clear of. The assimilation of the advertising and marketing department is the most effective option in regards to getting the optimum arise from the division. An activity plan for this alternative is reviewed below.

Activity Plan.
Lewis will certainly take over the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be merged.

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

Manufacturing function will certainly stay part of advertising and marketing under advertising function.

Lewis will certainly separate herself from procedures.

An autonomous management design with worker empowerment will certainly be utilized in marketing department.

Open door plan and focus on cross departmental interaction will certainly be focused on eliminating dissonance.

Backup plan.

If the assimilation does not work out as intended, a contingency plan would adhere to which would certainly separate the manufacturing function from the advertising and marketing function to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising division without an SVP. In that case the production feature will definitely be separated by positioning it under an SVP manufacturing.