Relayfoodscom Case Study Solution


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Relayfoodscom Case Study Help

Background and Facts

Relayfoodscom an office products seller for tiny as well as medium sized businesses has just recently been associated with planning for a merger with its rival Residence Deport, which has actually affected effectiveness degrees in departmentswith the senior manager involved in legal issues presented by the government Trade Commission. With the Advertising and marketing Head advancing 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 challenges in the form of a prospective cultural adjustment and reduced employee morale, the company is in need of a total reengineering effort at the advertising and marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The possible cultural adjustment at the marketing department of Relayfoodscom is raising unpredictability in the workplace causing 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 duty in impacting critical decisions because Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Trade Payment's treatment at the same time. Offered the reality that the store has an international existence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations might be able to influence performance or strategic objectives. Federal Profession Commission's antitrust suit against the merging occupied beneficial time of the company's senior management recommending that 'political' factors can have major effects for an international business.

Economic Factors: Financial factors such as the introduction of small businesses in the global circumstance suggest that Relayfoodscom is growing in an atmosphere where there is potential development of organisations. Along with this, truth that shop clients are mainly seeking workplace products for office suggests that the marketplace has a rising trend of business owners as well as home based organisations.

Social factors: Social fads in the economic situation reveal that customers are trying to find convenience as well as eye-catching costs. Market research demonstrates how the customer for Relayfoodscom does not have understanding regarding discovering services which can supply a mix of ease and also inexpensive.

Technical factors: Innovation plays a crucial function in Relayfoodscom's service strategy particularly as the organization is piloting Technology facilities which would provide modern technology sales and also assistance in the kind of memory upgrades, peripheral installments. (Summary of BUG in appendix 2).

OB Issues and Effects.

A number of underlying Business Habits problems can be seen in Relayfoodscom's case as highlighted in this section.

Concerns regarding cultural modification: There is concern regarding a cultural adjustment that would certainly occur as soon as Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with most of the team member already revealing discontent over this prospective move. This expected adjustment has actually created tension in the workplace which has been paired with the past stress and anxiety of preparing the company for a possible merger with House Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is scarcity of personnel that can match the difficult environment of a fast-paced company. Not just does this lead to difficulty in discovering the appropriate individuals, it puts tension on new hires as can not endure the pace and also pressure that the company anticipates them to birth.

Dual Reporting Lines: Novices locate this organizational society difficult and also tough to manage specifically as populated line relationships are indicated to be weaker as a whole and also unbiased setup and efficiency examination is still done by the strong line supervisor. This means that beginners could shed clearness concerning their particular roles and objectives especially as dotted line coverage does not maintain them in straight communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles despite the fact that it had been guessed that the latter would take Krasnow's placement came as a strike to her morale. Lewis might have been capable and suitable for the job however the reality that Kransnow's separation would make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Anxiety & Job Insecurity: Fear and insecurity can be identified as 2 significant problems that Lewis would be taking care of especially as the merger has actually now be terminated and also two elderly executives of the advertising and marketing department would be leaving. The whole obligation of the division would certainly be falling on Lewis's shoulders who would not just be in charge of brining regarding a cultural change however would certainly additionally have to verify herself in her brand-new duty.

Inappropriate Administration Design of Leader: Lewis's administration style and also its incompatibility with the advertising division's duty can also be seen as an OB challenge particularly as she has actually been used to dealing with problems in the operations department where personnel are taught to focus on processes and obtain them. The advertising and marketing department on the various other hand can be viewed as a group of people who are made use of to being supported by Krasnow who focused a lot more on output than processes.

Interdepartmental Disputes: Interdepartmental arguments between 3 divisions, advertising, merchandizing and also procedures respectively over the allotment of the advertising and marketing mix can be determined as one more OB issue. Although the marketing division does not share the same vision as the various other two divisions regarding the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and also procedures departments do not agree over the marketing mix allotment among one another either.

Fragmentation in Advertising And Marketing Division: Fragmentation between the advertising and marketing divisions can be determined as another OB issue which might require more focus. The reality that the advertising and marketing sections in the advertising and marketing department are detached is preventing both divisions from acquiring from each other's experience and also expertise. Combination of marketing with merchandising and also operations would become more difficult if the marketing division itself is broken down which can be one more possible OB concern.

Relayfoodscom Analysis

Different theories have been made use of to describe the situations to obtain additional clarity about the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most managers think that juniors are passive as well as careless, have little passion and withstand modification. The difficult variation of this concept highlighted coercion, limited controls, risks and also punishments. In time it produces low performance, refined sabotage and competition (Offer, 2003). Although the situation at Relayfoodscom is not totally following Concept X, it can be seen that new hires are discovering this setting instead difficult which may eventually result in a higher disposition of the monitoring in the direction of Concept X. According to McGregor's supported sight, which he called Theory Y, the essential task of the monitoring is to arrange organizational problems so that people can accomplish their very own objectives best by guiding their initiatives in the direction of organizational benefits. If people locate no complete satisfaction in their work, the management would certainly have little selection but to depend on concept X and also external control (Bargain, 2003). Also while assessing Lewis's monitoring style, theory X may have appropriated in the procedures department somewhat but the Advertising division would call for dependence on Concept Y in order to get the creative thinking as well as originality from the groups.

Tuckman's Teamwork Theory: Regarding Lewis's concern regarding bringing harmony in between the marketing and advertising division is worried, this would at first bring about contrast as gone over by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's theory shown in appendix 3, throughout the first stage of team growth, individuals may not bond, as they are hectic finding their location in the team. By integrating the advertising and marketing department's job, there might be the same first disconnect which can lead to the second stage of 'storming' where the teams challenge one another. It is just throughout the 3rd stage or 'norming' when they would certainly come together to share concepts prior to the group can bring about synergy in the 4th phase 'doing'.

Bridges' Shift Design: Based On William Bridge's concept (appendix 4), individuals are rather uncomfortable with modification, which is obvious by the scenario at Relayfoodscom The situation can be viewed as a typical program of life if is examined as per Bridge's concept where he discusses that individuals experience three stages of transition when they experience change. 'Ending, shedding as well as Letting go', The Neutral Area and also 'The New Starting' (Bridges, 2004). When people exist with change, they enter phase one therefore there may be feelings like sadness, uncertainty, stress, temper, worry, denial and also disorientation.The scenario at the advertising division of Relayfoodscom is comparable so Lewis can obtain comfortable with the idea that it is not amazing habits. In the second stage, there may be a requirement to connect the space between the brand-new and also old culture so Lewis might have to face this challenge as soon as Krasnow leaves. There might be reduced spirits as well as reduced performance at this stage which should not be taken as a setback. It is during this stage that Lewis will certainly need to provide guidance to the division to make sure that they can locate an orientation. It can be seen exactly how Krasnow has currently made this shift easier by making Lewis get associated with the department a year before his real separation. Based on Bridges' Design, stage three will produce openness to understanding, High power as well as commitment as individuals will certainly accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has discusses the importance of 'security needs as being a reduced degree demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel secure and out of threat' is at the second degree of demands. Prior to a worker can be made to establish psychologically, he needs to have his 'Physical 'as well as 'Safety and security' needs met.

SWOT Analysis for Relayfoodscom Case Study

Ramification of Analysis.

The OB analysis has actually looked at numerous concepts to comprehend exactly how to handle the existing situation handy. The following 3 options have actually been recommended to help Lewis take care of the business difficulties in the advertising division. Each of these alternatives has actually been proposed for easing the change needed to bring the advertising and marketing division in accordance with the requirements of the marketplace and also for making the cultural modification that would certainly adhere to once the existing leader leaves.

Combination of marketing and advertising features. Dividing Adverting and also Production features. Combination of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merger days has know-how in business-to-business advertising along with company and also retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to take care of both advertising and also marketing features.

The benefit of this method is that it will certainly integrate both features while decreasing the need for working with an added resource for advertising and marketing. Lewis would be heading the advertising and marketing division as well as in any type of case her substitute would certainly be required for the present duty that she is carrying out. The drawback of this choice is that exterior hiring might produce animosity from interior workers who might be looking at the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Production: Offered the affordable stress as well as premium quality work required from the advertising agency, it is advised that Lewis ought to allow the production device to be a separate function from the marketing unit. Considering that a lot of advertising agencies had these 2 functions as different devices, it makes more sense to adhere to the norm. Along with this, both functions may have the ability to focus on their core turns on a lot more effectively. However, the drawback of this strategy would be that extra costs would certainly need to be birthed for setting up separate production features. Along with this, a manufacturing head might need to be worked with which could increase overheads for the organization.

Assimilation of Marketing with Procedures: Given that Lewis is already dealing with the marketing and also operations divisions simultaneously; it makes sense to incorporate both functions given that she has been efficiently dealing with both ends. The reality that both departments currently have major differences over appropriation of sources recommends that this combination might have the ability to cause harmony specifically as Lewis would certainly be heading both ends.However there are various negative aspects of this action particularly as it would put excessive worry over Lewis's shoulders. The truth that Lewis needs to adjust her administration style for the marketing division suggests that these 2 departments would be culturally varied. Lewis may not be able to apply one type of leadership design to both divisions which can result in inadequacy in either one of the two features.


An analysis of the three options suggests that integration of advertising and marketing as well as procedures would certainly not be a feasible relocation due to the huge differences between the two divisions in spite of the truth that currently Lewis is taking care of both. While separation of the manufacturing feature might have been a desirable step for the advertising division, the truth that it would certainly indicate putting a third function under Lewis's wing implies this must be stayed clear of.

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

Advertising and Marketing functions would be merged.

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

Manufacturing feature will remain part of advertising under advertising function.

Lewis will separate herself from operations.

A democratic leadership design with worker empowerment will be utilized in advertising department.

Open up door policy and also focus on cross departmental communication will be focused on removing disharmony.

Backup plan.

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