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Lundberg Systems 3 Vignettes Case Study Analysis

CASE SOLUTION

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Lundberg Systems 3 Vignettes Case Study Solution

Background and Facts

Lundberg Systems 3 Vignettes a workplace products retailer for little and also moderate sized organisations has lately been associated with preparing for a merger with its rival Residence Deport, which has actually affected effectiveness degrees in departmentswith the senior supervisor involved in lawful problems put forth by the federal Trade Payment. With the Advertising Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the current head of operations has been asked to take the function in the future. With challenges in the kind of a possible social modification and also reduced staff member spirits, the organization needs a full reengineering initiative at the marketing department.

Problem Statement
Porter's 5 Forces Analysis
The potential social modification at the advertising division of Lundberg Systems 3 Vignettes is increasing uncertainty in the workplace leading to various obstacles for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting critical choices since Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Trade Payment's intervention in the process. Offered the truth that the store has an international presence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations may be able to impact performance or critical goals. Federal Profession Compensation's antitrust match against the merging took up valuable time of the company's elderly monitoring recommending that 'political' factors can have serious effects for a global service.

Economic Factors: Financial factors such as the appearance of small businesses in the global situation suggest that Lundberg Systems 3 Vignettes is prospering in an environment where there is potential growth of organisations. In addition to this, truth that shop consumers are primarily looking for office supplies for office suggests that the marketplace has an increasing fad of entrepreneurs as well as home based companies.

Social factors: Social patterns in the economy show that clients are looking for ease as well as eye-catching rates. Marketing research shows how the customer for Lundberg Systems 3 Vignettes lacks understanding about locating options which can supply a combination of benefit and also low costs.

Technical factors: Technology plays a crucial role in Lundberg Systems 3 Vignettes's company method particularly as the company is piloting Modern technology facilities which would certainly supply innovation sales and also assistance in the type of memory upgrades, outer setups. (Recap of PEST in appendix 2).

OB Issues as well as Symptoms.

Numerous underlying Business Behavior problems can be seen in Lundberg Systems 3 Vignettes's case as highlighted in this area.

Concerns concerning social modification: There is concern about a social adjustment that would take place when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with the majority of the team member already revealing unhappiness over this prospective relocation. This predicted adjustment has created stress in the workplace which has actually been paired with the previous stress and anxiety of preparing the firm for a potential merger with Residence Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is shortage of employees that can match the stressful environment of a busy company. Not only does this cause trouble in finding the ideal people, it puts anxiety on brand-new hires as can not hold up against the speed as well as pressure that the company expects them to birth.

Dual Coverage Lines: Newbies locate this business society difficult and also hard to manage particularly as populated line connections are indicated to be weak in general as well as unbiased setup and also efficiency assessment is still done by the solid line supervisor. This means that newcomers can shed clearness about their particular functions and objectives particularly as populated line coverage does not maintain them in straight interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles despite the fact that it had been hypothesized that the last would certainly take Krasnow's setting came as a strike to her spirits. Lewis might have been qualified and also suitable for the job yet the fact that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Concern & Task Insecurity: Anxiety as well as instability can be identified as 2 major problems that Lewis would certainly be handling especially as the merger has actually now be terminated as well as two senior execs of the advertising and marketing division would certainly be leaving. The entire obligation of the department would certainly be dropping on Lewis's shoulders that would not simply supervise of brining regarding a social modification but would likewise have to confirm herself in her brand-new role.

Inappropriate Management Design of Leader: Lewis's management style as well as its incompatibility with the advertising and marketing department's role can also be seen as an OB obstacle particularly as she has been utilized to handling concerns in the procedures division where personnel are shown to focus on procedures as well as obtain them. The marketing division on the various other hand can be viewed as a group of people that are made use of to being nurtured by Krasnow who focused much more on result than procedures.

Interdepartmental Arguments: Interdepartmental differences between 3 departments, advertising and marketing, merchandizing as well as operations respectively over the allowance of the advertising mix can be identified as an additional OB problem. Although the marketing division does not share the very same vision as the various other two departments regarding the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and also procedures divisions do not agree over the marketing mix allocation among one another either.

Disintegration in Marketing Division: Fragmentation between the marketing and advertising departments can be identified as an additional OB problem which might require additional interest. The truth that the advertising and marketing areas in the advertising division are disconnected is stopping both departments from obtaining from each various other's experience as well as knowledge. Combination of marketing with retailing and also procedures would come to be harder if the advertising and marketing division itself is broken down which can be one more potential OB problem.

Lundberg Systems 3 Vignettes Analysis

Various theories have actually been utilized to discuss the situations to obtain further clearness about the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors think that staffs are easy and careless, have little passion and resist change. The circumstance at Lundberg Systems 3 Vignettes is not totally adhering to Concept X, it can be seen that brand-new hires are finding this environment instead stressful which might ultimately lead to a higher disposition of the management towards Concept X. Also while evaluating Lewis's management design, concept X might have been ideal in the procedures division to some extent yet the Marketing division would certainly call for dependence on Theory Y in order to get the creativity and creativity from the teams.

Tuckman's Synergy Concept: Regarding Lewis's problem regarding bringing harmony between the marketing and advertising department is concerned, this would originally result in clash as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's theory displayed in appendix 3, during the preliminary stage of group development, individuals may not bond, as they are active discovering their place in the team. By combining the advertising and marketing division's job, there may be the same initial disconnect which can cause the 2nd phase of 'storming' where the groups test each other. Nevertheless, it is only throughout the third stage or 'norming' when they would collaborate to share ideas before the team can bring about synergy in the 4th phase 'doing'.

Bridges' Shift Version: Based On William Bridge's theory (appendix 4), individuals are fairly uneasy with modification, which is apparent by the situation at Lundberg Systems 3 Vignettes The situation can be viewed as a normal training course of life if is studied as per Bridge's theory where he explains that people go through three phases of shift when they experience modification. 'Ending, losing and Letting go', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When people are presented with modification, they enter phase one therefore there may be emotions like despair, uncertainty, frustration, rage, fear, denial and also disorientation.The situation at the advertising and marketing division of Lundberg Systems 3 Vignettes is similar so Lewis can obtain comfy with the suggestion that it is not phenomenal habits. In the 2nd stage, there may be a need to connect the gap in between the new as well as old society so Lewis might need to face this challenge when Krasnow leaves. There might be reduced spirits and low productivity at this stage which must not be taken as a problem. It is throughout this stage that Lewis will have to offer guidance to the department to make sure that they can find an orientation. It can be seen exactly how Krasnow has actually currently made this change easier by making Lewis get involved in the division a year before his real separation. As per Bridges' Design, phase 3 will certainly cause openness to understanding, High energy and also commitment as individuals will embrace the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the significance of 'safety and security requires as being a reduced degree demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel secure and also out of threat' is at the 2nd degree of demands. Prior to a staff member can be made to create psychologically, he needs to have his 'Physical 'and 'Security' requires fulfilled.

SWOT Analysis for Lundberg Systems 3 Vignettes Case Study



Ramification of Analysis.

The OB analysis has looked at numerous concepts to understand exactly how to manage the existing scenario at hand. The adhering to 3 choices have actually been suggested to help Lewis handle the organizational obstacles in the advertising and marketing department. Each of these choices has actually been recommended for reducing the shift needed to bring the advertising and marketing department in accordance with the requirements of the marketplace and also for making the cultural modification that would certainly follow once the existing leader leaves.

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

Evaluation of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merging days has expertise in business-to-business advertising and marketing along with company and retail marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both advertising and advertising features.

The benefit of this approach is that it will certainly incorporate the two features while minimizing the need for employing an extra source for marketing. In addition to this, Lewis would certainly be heading the marketing department and all the same her substitute would be needed for the existing role that she is performing. The downside of this option is that exterior hiring may cause bitterness from inner workers who might be eying the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting as well as Production: Given the competitive pressures as well as high quality work required from the advertising firm, it is recommended that Lewis must enable the manufacturing system to be a separate function from the marketing system. Considering that a lot of advertising companies had these 2 features as separate systems, it makes even more feeling to adhere to the standard.

Integration of Marketing with Operations: Because Lewis is already taking care of the advertising and marketing as well as operations divisions all at once; it makes sense to integrate the two functions given that she has actually been efficiently dealing with both ends. The truth that the two divisions currently have major differences over allotment of sources suggests that this assimilation may be able to bring about harmony especially as Lewis would certainly be heading both ends.However there are various downsides of this action particularly as it would place too much problem over Lewis's shoulders. The fact that Lewis has to adjust her management design for the advertising and marketing department recommends that these two departments would certainly be culturally diverse. Lewis may not be able to use one type of leadership style to both departments which can result in inadequacy in either one of the 2 features.

Recommendation.



An analysis of the three options indicates that combination of advertising and marketing as well as procedures would certainly not be a feasible relocation due to the large distinctions in between the 2 departments despite the reality that presently Lewis is taking care of both. While splitting up of the manufacturing function might have been a positive move for the marketing division, the reality that it would indicate positioning a 3rd feature under Lewis's wing indicates this must be prevented.

Action Strategy.
Recommendation
Lewis will take control of the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

Production function will certainly continue to be part of marketing under advertising function.

Lewis will certainly divide herself from operations.

A democratic management design with employee empowerment will certainly be made use of in advertising and marketing division.

Open up door plan as well as focus on cross departmental interaction will certainly be focused on removing discord.

Contingency plan.

If the integration does not work out as planned, a contingency strategy would adhere to which would certainly divide the production function from the marketing feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the manufacturing function will definitely be divided by positioning it under an SVP manufacturing.