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Lundberg Systems 3 Vignettes Case Study Analysis

CASE STUDY

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Lundberg Systems 3 Vignettes Case Study Analysis

Background and Facts

Lundberg Systems 3 Vignettes an office products store for little and also average sized services has recently been associated with planning for a merger with its rival Home Deport, which has influenced efficiency levels in departmentswith the elderly supervisor associated with legal issues put forth by the government Trade Commission. With the Advertising Head advancing the news of his departure from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the role in the near future. With obstacles in the kind of a possible cultural adjustment and also low worker spirits, the organization needs a full reengineering initiative at the marketing department.

Issue Declaration

The prospective social modification at the marketing division of Lundberg Systems 3 Vignettes is increasing unpredictability in the workplace causing various difficulties 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 influencing calculated decisions because Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Trade Compensation's intervention while doing so. Provided the truth that the shop has a worldwide presence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these nations might be able to influence efficiency or tactical goals. Federal Profession Payment's antitrust suit against the merger occupied useful time of the company's senior management suggesting that 'political' factors can have major implications for a global company.

Economic Factors: Financial factors such as the development of small businesses in the international circumstance recommend that Lundberg Systems 3 Vignettes is prospering in a setting where there is potential growth of companies. Reality that store customers are mainly looking for workplace supplies for residence offices recommends that the market has a rising trend of entrepreneurs and also residence based services.

Social factors: Social fads in the economic climate reveal that customers are trying to find convenience as well as attractive rates. Marketing research shows how the consumer for Lundberg Systems 3 Vignettes lacks recognition regarding locating solutions which can offer a mix of convenience and also affordable.

Technological factors: Technology plays a crucial function in Lundberg Systems 3 Vignettes's organisation technique specifically as the company is piloting Innovation centers which would certainly use innovation sales as well as support in the type of memory upgrades, peripheral installments. (Summary of INSECT in appendix 2).

OB Issues and also Symptoms.

Several underlying Organizational Habits problems can be seen in Lundberg Systems 3 Vignettes's case as highlighted in this section.

Worries concerning cultural modification: There is apprehension about a cultural modification that would certainly happen when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising with the majority of the staff members already showing discontent over this possible step. This anticipated modification has developed tension in the workplace which has actually been paired with the past stress and anxiety of preparing the firm for a potential merging with Residence Deport.

Difficult Task Atmosphere for Newcomers: There is lack of employees that can match the difficult setting of a busy company. Not just does this bring about trouble in finding the right individuals, it places anxiety on brand-new hires as can not stand up to the speed as well as pressure that the company anticipates them to bear.

Twin Reporting Lines: Beginners find this business culture difficult as well as hard to handle particularly as dotted line relationships are meant to be weak as a whole and objective setting as well as efficiency analysis is still done by the solid line supervisor. This means that newbies might shed clearness concerning their particular duties and also goals especially as populated line reporting does not maintain them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles even though it had actually been speculated that the latter would certainly take Krasnow's setting came as a blow to her morale. Lewis might have been capable and ideal for the task yet the fact that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Work Instability: Concern and insecurity can be identified as two significant issues that Lewis would be taking care of specifically as the merging has currently be cancelled and also two elderly executives of the marketing division would be leaving. The whole duty of the department would be falling on Lewis's shoulders who would certainly not just supervise of brining about a social adjustment but would also have to confirm herself in her brand-new role.

Incompatible Management Style of Leader: Lewis's administration style and its conflict with the advertising division's duty can likewise be seen as an OB difficulty particularly as she has actually been made use of to managing issues in the operations department where workers are instructed to focus on processes and also get them. The marketing division on the various other hand can be seen as a team of people who are utilized to being nurtured by Krasnow that concentrated much more on outcome than processes.

Interdepartmental Differences: Interdepartmental disputes between three divisions, marketing, merchandizing and procedures specifically over the allotment of the marketing mix can be recognized as one more OB concern. The advertising division does not share the same vision as the other two divisions pertaining to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and operations departments do not concur over the advertising mix allotment amongst one another either.

Disintegration in Marketing Division: Fragmentation between the advertising and marketing divisions can be recognized as an additional OB problem which can require additional focus. The fact that the marketing and advertising areas in the advertising and marketing division are detached is preventing both divisions from getting from each other's experience and experience. Integration of advertising and marketing with retailing as well as operations would come to be more difficult if the advertising department itself is broken down which can be an additional potential OB concern.

Lundberg Systems 3 Vignettes Analysis

Various theories have been utilized to describe the circumstances to get additional quality regarding the scenario handy.

McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers believe that juniors are passive and lazy, have little ambition and also withstand change. The situation at Lundberg Systems 3 Vignettes is not completely following Concept X, it can be seen that brand-new hires are discovering this atmosphere rather demanding which might at some point lead to a higher disposition of the administration in the direction of Concept X. Even while evaluating Lewis's management style, concept X may have been appropriate in the procedures department to some level yet the Marketing department would certainly require reliance on Theory Y in order to get the creativity and creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's worry regarding bringing consistency in between the marketing and advertising department is concerned, this would initially bring about conflict as talked about by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, throughout the initial stage of group development, people may not bond, as they are busy discovering their location in the group. By integrating the marketing and advertising department's job, there may coincide preliminary detach which might result in the second phase of 'storming' where the teams test one another. It is just during the third stage or 'norming' when they would come with each other to share ideas before the group can bring around harmony in the 4th stage 'carrying out'.

Bridges' Transition Design: As per William Bridge's theory (appendix 4), people are quite unpleasant with change, which is apparent by the situation at Lundberg Systems 3 Vignettes The circumstance can be viewed as a regular program of life if is researched as per Bridge's theory where he clarifies that people experience 3 phases of transition when they experience modification. 'Closing, shedding and Releasing', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When individuals are presented with adjustment, they get in phase one and so there might be emotions like sadness, uncertainty, stress, anger, worry, rejection and also disorientation.The circumstance at the advertising department of Lundberg Systems 3 Vignettes is comparable so Lewis can obtain comfortable with the concept that it is not remarkable actions. In the second phase, there may be a need to link the gap in between the brand-new as well as old society so Lewis might need to encounter this ordeal when Krasnow leaves. There may be low spirits as well as reduced productivity at this stage which should not be taken as a problem. It is during this phase that Lewis will certainly have to provide guidance to the department to make sure that they can find a sense of direction. It can be seen exactly how Krasnow has already made this shift less complicated by making Lewis obtain associated with the department a year before his actual separation. As per Bridges' Version, phase 3 will bring about visibility to knowing, High energy and commitment as individuals will certainly welcome the modification (Bridges, 2004).

Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has talks about the importance of 'safety requires as being a reduced degree need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel safe and secure and out of risk' is at the 2nd degree of needs. Prior to an employee can be made to establish psychologically, he requires to have his 'Physical 'as well as 'Security' requires met.

SWOT Analysis for Lundberg Systems 3 Vignettes Case Study



Implication of Analysis.

The OB analysis has looked at different concepts to comprehend how to cope with the existing scenario available. The adhering to three options have been proposed to help Lewis deal with the business challenges in the advertising department. Each of these choices has actually been suggested for reducing the transition needed to bring the advertising and marketing department in line with the demands of the market as well as for making the social modification that would comply with as soon as the present leader leaves.

Combination of marketing and advertising features. Separating Adverting as well as Production features. Assimilation of Advertising with Operations.

Examination of Alternatives.

Integration of Advertising & Marketing Functions: The in-house marketing firm of Lundberg Systems 3 Vignettes is currently stamina for the organization in terms of conserving up on overheads related to marketing as well as promo. Given that no brand-new recruitment has actually been done after Bridget Cole's departure with the reporting line being straight assigned to Krasnow for the marketing feature, this is a positive opportunity for incorporating the marketing and advertising functions. Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merging days has competence in business-to-business advertising and marketing in addition to agency and also retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to deal with both advertising and marketing functions.

The advantage of this strategy is that it will certainly incorporate both features while decreasing the demand for hiring an added resource for marketing. Lewis would certainly be heading the advertising and marketing department and also in any case her substitute would be required for the existing role that she is performing. The disadvantage of this option is that external hiring may cause resentment from internal employees that might be eying the setting of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Production: Offered the competitive stress and high top quality job required from the advertising agency, it is recommended that Lewis needs to enable the manufacturing unit to be a separate function from the marketing device. Considering that most advertising and marketing firms had these 2 features as different systems, it makes even more feeling to comply with the standard.

Assimilation of Advertising with Workflows: Given that Lewis is currently taking care of the advertising and marketing as well as operations divisions at the same time; it makes sense to integrate both features since she has actually been efficiently looking after both ends. The truth that the two divisions already have significant distinctions over allotment of resources recommends that this integration might have the ability to bring about harmony especially as Lewis would be heading both ends.However there are numerous drawbacks of this step particularly as it would place excessive concern over Lewis's shoulders. The fact that Lewis needs to adapt her monitoring style for the marketing department recommends that these 2 divisions would be culturally varied. Lewis might not be able to apply one type of management style to both departments which might result in inefficiency in either one of the 2 features.

Suggestion.



An evaluation of the 3 alternatives suggests that integration of marketing as well as procedures would certainly not be a practical action because of the substantial differences in between both departments although that currently Lewis is dealing with both. While separation of the manufacturing feature may have been a positive relocation for the advertising department, the fact that it would certainly suggest placing a 3rd function under Lewis's wing suggests this need to be prevented also. The assimilation of the marketing department is the very best alternative in regards to getting the ideal results from the department. An activity prepare for this alternative is talked about below.

Activity Strategy.

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

Advertising and Marketing functions would certainly be combined.

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

Production function will stay component of marketing under marketing function.

Lewis will certainly divide herself from operations.

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

Open up door plan and also emphasis on cross departmental communication will be targeted at eliminating dissonance.

Backup strategy.

If the assimilation does not work out as prepared, a contingency plan would follow which would divide the manufacturing function from the marketing function to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising division without an SVP. Because case the production feature will absolutely be divided by placing it under an SVP manufacturing.