Paramount Distributing Inc The Popcorn Predicament Case Study Analysis


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Paramount Distributing Inc The Popcorn Predicament Case Study Analysis

Background and Facts

Paramount Distributing Inc The Popcorn Predicament an office materials retailer for small and also moderate sized companies has just recently been associated with planning for a merging with its competitor Home Deport, which has actually impacted efficiency degrees in departmentswith the elderly manager involved in lawful complications presented by the government Profession Compensation. With the Marketing Head putting forward the news 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 obstacles in the kind of a prospective cultural modification and also low worker spirits, the organization is in need of a full reengineering initiative at the marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising and marketing department of Paramount Distributing Inc The Popcorn Predicament is increasing unpredictability in the working environment leading to various obstacles for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting strategic decisions because Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Profession Payment's intervention while doing so. Offered the fact that the shop has a worldwide existence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these nations might have the ability to affect performance or critical objectives. Federal Trade Payment's antitrust match against the merger occupied important time of the organization's senior management recommending that 'political' factors can have severe effects for a worldwide organisation.

Economic Factors: Economic factors such as the development of small companies in the worldwide circumstance recommend that Paramount Distributing Inc The Popcorn Predicament is prospering in an atmosphere where there is potential development of companies. In addition to this, truth that shop clients are mainly searching for workplace materials for office recommends that the market has a rising fad of entrepreneurs and also home based companies.

Social factors: Social patterns in the economic situation show that consumers are seeking convenience along with appealing rates. Market research shows how the client for Paramount Distributing Inc The Popcorn Predicament lacks awareness regarding discovering remedies which can use a combination of convenience and affordable.

Technological factors: Technology plays a vital role in Paramount Distributing Inc The Popcorn Predicament's organisation approach specifically as the company is piloting Modern technology centers which would offer technology sales and assistance in the kind of memory upgrades, peripheral installments. (Recap of PARASITE in appendix 2).

OB Issues as well as Effects.

A number of underlying Organizational Habits problems can be seen in Paramount Distributing Inc The Popcorn Predicament's case as highlighted in this section.

Worries about social modification: There is worry regarding a social modification that would occur as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising with the majority of the personnel already revealing unhappiness over this potential relocation. This anticipated adjustment has produced stress in the work environment which has actually been coupled with the previous stress and anxiety of preparing the company for a possible merger with Home Deport.
Pest Analysis
Stressful Job Atmosphere for Newcomers: There is scarcity of personnel that can match the stressful environment of a busy organization. Not just does this result in trouble in finding the best people, it puts stress and anxiety on brand-new hires as can not hold up against the rate and stress that the organization anticipates them to bear.

Double Reporting Lines: Newbies discover this organizational culture troublesome as well as hard to deal with especially as populated line partnerships are implied to be weaker in general as well as unbiased setting and performance evaluation is still done by the solid line manager. This means that newbies might shed quality concerning their corresponding roles as well as objectives especially as populated line reporting does not maintain them in direct communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been speculated that the latter would take Krasnow's placement came as an impact to her morale. Lewis might have been qualified and also appropriate for the task but the fact that Kransnow's separation would make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Task Insecurity: Fear and insecurity can be recognized as 2 significant concerns that Lewis would certainly be handling specifically as the merging has now be cancelled as well as two senior executives of the advertising and marketing division would be leaving. The whole responsibility of the division would be falling on Lewis's shoulders that would certainly not just supervise of brining concerning a cultural modification but would likewise have to show herself in her brand-new function.

Incompatible Administration Design of Leader: Lewis's administration style and also its conflict with the advertising and marketing division's duty can additionally be seen as an OB obstacle particularly as she has actually been made use of to dealing with problems in the operations department where workers are instructed to focus on processes and also get them. The advertising division on the other hand can be viewed as a group of people who are used to being supported by Krasnow that concentrated a lot more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between 3 departments, advertising, merchandizing and operations specifically over the appropriation of the advertising and marketing mix can be determined as another OB problem. Although the advertising division does not share the same vision as the various other 2 departments pertaining to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and also operations departments do not concur over the marketing mix allocation amongst one another either.

Disintegration in Advertising And Marketing Department: Fragmentation in between the advertising and marketing departments can be determined as one more OB problem which can require additional attention. The truth that the marketing and advertising areas in the marketing division are detached is stopping both divisions from acquiring from each various other's experience as well as expertise. Assimilation of marketing with retailing and also operations would certainly end up being more difficult if the advertising department itself is broken down which can be another prospective OB problem.

Paramount Distributing Inc The Popcorn Predicament Analysis

Numerous theories have actually been utilized to clarify the conditions to get more quality concerning the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors think that subordinates are easy as well as lazy, have little aspiration as well as withstand modification. The situation at Paramount Distributing Inc The Popcorn Predicament is not totally following Theory X, it can be seen that new hires are finding this atmosphere rather difficult which may ultimately lead to a greater disposition of the monitoring towards Concept X. Also while assessing Lewis's management style, concept X might have been suitable in the operations division to some degree yet the Marketing division would certainly need dependence on Concept Y in order to get the imagination as well as creativity from the groups.

Tuckman's Teamwork Theory: As for Lewis's concern about bringing consistency between the advertising and marketing division is concerned, this would initially cause conflict as talked about by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's concept received appendix 3, throughout the initial stage of team advancement, people may not bond, as they are hectic finding their location in the team. By incorporating the marketing and advertising department's job, there may coincide initial separate which might cause the second stage of 'storming' where the teams challenge one another. Nevertheless, it is just throughout the third phase or 'norming' when they would certainly come together to share concepts prior to the group can produce harmony in the 4th stage 'doing'.

When individuals are presented with change, they enter phase one as well as so there may be emotions like unhappiness, uncertainty, disappointment, anger, fear, denial as well as disorientation.The circumstance at the advertising and marketing division of Paramount Distributing Inc The Popcorn Predicament is similar so Lewis can obtain comfortable with the concept that it is not phenomenal habits. It is throughout this phase that Lewis will certainly have to provide guidance to the department so that they can discover a sense of direction. It can be seen how Krasnow has actually already made this shift much easier by making Lewis get entailed in the division a year before his actual departure.
Vrio Analysis
Maslow's Demand pecking order: The OB issue related to insecurity at the work environment has been activated to start with by the adjustment in management as well as second of all by the fact that the merging will certainly no longer be initiated. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has discusses the value of 'protection needs as being a lower degree demand of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to really feel secure and also out of danger' goes to the 2nd degree of demands. Prior to an employee can be made to develop emotionally, he requires to have his 'Physical 'as well as 'Safety' requires satisfied. This indicates that unless the workers are made to feel secure about their current employment condition in Paramount Distributing Inc The Popcorn Predicament they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Paramount Distributing Inc The Popcorn Predicament Case Study

Effects of Analysis.

The OB analysis has actually looked at various concepts to comprehend exactly how to handle the present situation at hand. The adhering to three alternatives have been proposed to assist Lewis take care of the organizational challenges in the advertising division. Each of these choices has actually been suggested for easing the transition needed to bring the marketing department in line with the demands of the market and for making the cultural adjustment that would comply with once the existing leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and also Manufacturing functions. Integration of Marketing with Workflow.

Examination of Alternatives.

Assimilation of Marketing & Marketing Functions: The in-house marketing agency of Paramount Distributing Inc The Popcorn Predicament is already strength for the organization in terms of saving up on expenses associated with advertising as well as promotion. Given that no brand-new recruitment has actually been done after Bridget Cole's departure with the coverage line being directly appointed to Krasnow for the marketing function, this is a favorable possibility for incorporating the advertising and marketing features. Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merger days has expertise in business-to-business marketing in addition to firm as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to deal with both advertising and marketing features.

The advantage of this method is that it will integrate the two functions while decreasing the demand for employing an added source for advertising and marketing. Along with this, Lewis would be heading the marketing department as well as all the same her substitute would be required for the current role that she is performing. The downside of this alternative is that exterior hiring may bring about resentment from internal personnel who might be looking at the placement of EVP after Lewis takes over Krasnow's setting.

Separating Adverting as well as Production: Offered the competitive stress and also excellent quality job needed from the ad agency, it is advised that Lewis needs to enable the manufacturing system to be a separate function from the advertising and marketing system. Considering that the majority of advertising agencies had these 2 functions as different systems, it makes even more sense to follow the norm. Both features may be able to concentrate on their core activates more efficiently. Nevertheless, the downside of this strategy would be that extra prices would certainly have to be borne for establishing different production features. A manufacturing head may have to be employed which could increase overheads for the organization.

Assimilation of Advertising And Marketing with Operations: Given that Lewis is currently looking after the advertising and marketing as well as operations divisions simultaneously; it makes sense to incorporate the two features since she has been effectively taking care of both ends. The truth that both departments currently have major distinctions over allotment of resources recommends that this combination might be able to produce harmony particularly as Lewis would be heading both ends.However there are various negative aspects of this move specifically as it would certainly place too much worry over Lewis's shoulders. The truth that Lewis has to adjust her administration style for the advertising department suggests that these two divisions would be culturally varied. Lewis might not be able to use one type of leadership style to both divisions which can result in inefficiency in either one of the two functions.


An analysis of the three options shows that assimilation of advertising and marketing and also procedures would not be a feasible move because of the large differences in between both divisions despite the fact that presently Lewis is handling both. While separation of the production feature may have been a positive relocation for the marketing department, the fact that it would certainly indicate putting a 3rd feature under Lewis's wing implies this ought to be prevented. The integration of the advertising department is the best option in regards to obtaining the ideal arise from the department. An action prepare for this option is discussed listed below.

Action Plan.
Lewis will take control of the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

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

Production function will remain part of marketing under advertising and marketing function.

Lewis will divide herself from procedures.

A democratic leadership design with worker empowerment will be made use of in advertising department.

Open door plan and emphasis on cross department communication will certainly be aimed at removing disharmony.

Contingency plan.

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