Knox Electronics Case Study Solution


Home >> Ivey >> Knox Electronics >>

Knox Electronics Case Study Solution

Background and Facts

Knox Electronics an office materials seller for tiny as well as moderate sized companies has recently been associated with planning for a merging with its competitor Home Deport, which has actually affected efficiency degrees in departmentswith the elderly manager involved in lawful difficulties presented by the government Profession Compensation. With the Marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the function in the future. With challenges in the form of a prospective social change and also low staff member spirits, the company wants a full reengineering initiative at the marketing division.

Trouble Statement

The potential cultural adjustment at the advertising and marketing division of Knox Electronics is enhancing unpredictability in the working environment resulting in numerous challenges for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting calculated choices considering that Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Profession Commission's treatment at the same time. Given the truth that the store has a global visibility with branches in UK, USA, Canada and Germany, political consider each of these nations may be able to affect efficiency or calculated objectives. Federal Trade Payment's antitrust fit against the merging used up valuable time of the organization's senior monitoring suggesting that 'political' factors can have major implications for a global company.

Economic Factors: Economic factors such as the emergence of small companies in the global circumstance recommend that Knox Electronics is flourishing in an environment where there is prospective growth of services. In addition to this, truth that shop customers are mostly seeking workplace materials for home offices recommends that the marketplace has a rising trend of business owners as well as home companies.

Social factors: Social fads in the economic situation show that clients are looking for ease in addition to appealing costs. Marketing research shows how the consumer for Knox Electronics lacks awareness regarding locating options which can provide a combination of benefit and also inexpensive.

Technological factors: Modern technology plays a vital function in Knox Electronics's service approach specifically as the organization is piloting Innovation facilities which would certainly supply innovation sales and support in the kind of memory upgrades, outer setups. (Recap of PARASITE in appendix 2).

OB Issues and also Symptoms.

Several underlying Organizational Actions problems can be seen in Knox Electronics's case as highlighted in this area.

Worries concerning social adjustment: There is worry regarding a social adjustment that would occur once Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with a lot of the staff members currently revealing discontent over this potential relocation. This predicted change has created anxiety in the work environment which has actually been coupled with the past tension of preparing the company for a potential merging with House Deport.

Difficult Job Atmosphere for Newcomers: There is shortage of workers that can match the demanding setting of a hectic organization. Not just does this bring about trouble in locating the best people, it places stress on brand-new hires as can not stand up to the rate as well as pressure that the company anticipates them to bear.

Dual Reporting Lines: Beginners discover this organizational culture difficult and also hard to deal with particularly as dotted line connections are implied to be weaker in general and unbiased setup and efficiency examination is still done by the solid line manager. This suggests that beginners can lose quality concerning their particular duties and purposes specifically as dotted line coverage does not keep them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles although it had been hypothesized that the last would take Krasnow's placement came as a strike to her spirits. Lewis might have been capable and also proper for the task but the fact that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from services.

Anxiety & Task Insecurity: Worry and insecurity can be recognized as two major worries that Lewis would certainly be dealing with specifically as the merging has currently be cancelled and also 2 elderly executives of the advertising and marketing department would certainly be leaving. The whole duty of the department would certainly be falling on Lewis's shoulders who would not just supervise of brining concerning a social adjustment but would likewise have to prove herself in her brand-new duty.

Inappropriate Management Style of Leader: Lewis's management design and also its conflict with the advertising and marketing division's function can likewise be seen as an OB difficulty especially as she has been made use of to taking care of issues in the procedures division where personnel are educated to concentrate on procedures as well as obtain them. The marketing department on the various other hand can be seen as a group of individuals who are made use of to being supported by Krasnow who concentrated more on result than processes.

Interdepartmental Differences: Interdepartmental disagreements in between 3 departments, advertising, merchandizing and procedures specifically over the allocation of the advertising mix can be recognized as an additional OB concern. The marketing division does not share the same vision as the other two divisions concerning the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and procedures departments do not concur over the advertising and marketing mix allotment among one another either.

Disintegration in Marketing Department: Fragmentation in between the marketing and advertising departments can be identified as another OB concern which might require additional focus. The fact that the marketing and advertising areas in the marketing division are disconnected is preventing both divisions from gaining from each various other's experience and experience. Assimilation of advertising and marketing with merchandising and also operations would come to be more difficult if the advertising and marketing division itself is disintegrated which can be one more potential OB issue.

Knox Electronics Analysis

Different theories have actually been used to explain the circumstances to obtain more quality regarding the circumstance at hand.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that subordinates are easy and lazy, have little aspiration and also resist change. The tough version of this concept highlighted browbeating, limited controls, threats and punishments. With time it generates reduced performance, subtle sabotage and also rivalry (Bargain, 2003). Although the situation at Knox Electronics is not completely adhering to Concept X, it can be seen that new hires are discovering this atmosphere instead difficult which may ultimately bring about a greater disposition of the monitoring towards Theory X. Based on McGregor's supported view, which he called Theory Y, the necessary job of the administration is to prepare business conditions so that individuals can attain their own goals best by routing their initiatives towards organizational benefits. If individuals discover no contentment in their job, the management would certainly have little option but to depend on concept X and also exterior control (Deal, 2003). Even while analyzing Lewis's administration style, concept X may have been suitable in the procedures division to some extent yet the Marketing division would call for reliance on Concept Y so as to get the creativity as well as creativity from the groups.

Tuckman's Synergy Concept: As much as Lewis's problem about bringing consistency between the marketing as well as advertising division is concerned, this would at first lead to contrast as reviewed by Bruce Tuckman in his 'Synergy Concept'. By combining the marketing and also advertising and marketing division's job, there may be the very same initial disconnect which could lead to the 2nd stage of 'storming' where the groups test one an additional.

When people are provided with change, they get in phase one and so there might be feelings like despair, uncertainty, stress, temper, fear, denial and also disorientation.The circumstance at the advertising division of Knox Electronics is comparable so Lewis can get comfy with the suggestion that it is not phenomenal habits. It is throughout this stage that Lewis will certainly have to give guidance to the department so that they can discover a sense of instructions. It can be seen exactly how Krasnow has actually currently made this shift easier by making Lewis obtain involved in the division a year before his real departure.

Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has goes over the value of 'security needs as being a reduced degree need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel secure and out of risk' is at the 2nd level of demands. Prior to an employee can be made to develop emotionally, he needs to have his 'Physiological 'and also 'Security' requires satisfied.

SWOT Analysis for Knox Electronics Case Study

Implication of Analysis.

The OB analysis has actually looked at numerous theories to recognize how to deal with the present situation at hand. The complying with 3 choices have been recommended to help Lewis take care of the business challenges in the advertising and marketing department. Each of these options has been suggested for reducing the shift needed to bring the marketing department according to the needs of the marketplace as well as for making the cultural adjustment that would follow once the existing leader leaves.

Integration of marketing and advertising features. Dividing Adverting and Manufacturing features. Assimilation of Advertising And Marketing with Procedures.

Examination of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merging days has knowledge in business-to-business marketing along with agency as well as retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to take care of both advertising and also marketing functions.

The advantage of this technique is that it will integrate both features while minimizing the requirement for working with an additional resource for advertising and marketing. Lewis would be heading the advertising division as well as in any kind of case her replacement would be required for the current role that she is executing. The disadvantage of this choice is that external hiring might cause resentment from internal employees who might be considering the placement of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Manufacturing: Provided the affordable pressures and high quality work called for from the advertising agency, it is recommended that Lewis should enable the production system to be a separate feature from the advertising and marketing system. Considering that most ad agency had these two features as separate units, it makes more sense to adhere to the standard. In addition to this, both functions might have the ability to focus on their core activates extra efficiently. However, the drawback of this technique would be that additional expenses would have to be borne for establishing different production functions. Along with this, a production head might need to be employed which could raise overheads for the organization.

Integration of Advertising with Operations: Given that Lewis is already taking care of the marketing as well as operations departments simultaneously; it makes good sense to integrate both features since she has been effectively looking after both ends. The reality that the two divisions currently have significant differences over allocation of sources suggests that this integration might have the ability to produce consistency specifically as Lewis would be heading both ends.However there are different negative aspects of this action specifically as it would place way too much burden over Lewis's shoulders. The truth that Lewis has to adapt her administration style for the advertising department suggests that these two divisions would certainly be culturally diverse. In addition to this, Lewis might not have the ability to use one sort of management style to both departments which can result in ineffectiveness in either among the two features.


An examination of the three alternatives suggests that integration of advertising and also operations would not be a practical move due to the vast differences in between the 2 departments regardless of the fact that currently Lewis is managing both. While splitting up of the production function might have been a favorable action for the marketing department, the truth that it would certainly indicate placing a 3rd feature under Lewis's wing indicates this should be stayed clear of.

Activity Plan.

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

Advertising and Marketing functions would certainly be combined.

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

Production function will certainly remain component of advertising under marketing feature.

Lewis will separate herself from operations.

An autonomous management design with staff member empowerment will certainly be used in marketing department.

Open door policy as well as emphasis on cross departmental communication will certainly be aimed at getting rid of dissonance.

Backup strategy.

If the assimilation does not work out as prepared, a contingency strategy would comply with which would certainly divide the production feature from the advertising feature to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing department without an SVP. In that case the manufacturing feature will definitely be separated by placing it under an SVP production.