Reliable Equipment Ltd The Popcorn Predicament Case Study Solution


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Reliable Equipment Ltd The Popcorn Predicament Case Study Analysis

Background and Facts

Reliable Equipment Ltd The Popcorn Predicament an office supplies retailer for little and also medium sized companies has recently been associated with planning for a merging with its rival Home Deport, which has affected efficiency levels in departmentswith the elderly manager involved in lawful difficulties presented by the federal Trade Compensation. With the Advertising and marketing Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the present head of procedures has been asked to take the function in the near future. With obstacles in the kind of a prospective social adjustment and also reduced staff member spirits, the organization needs a total reengineering effort at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The potential social change at the marketing department of Reliable Equipment Ltd The Popcorn Predicament is increasing unpredictability in the workplace causing numerous obstacles for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting critical decisions since Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Profession Commission's intervention at the same time. Given the reality that the shop has an international presence with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries might have the ability to impact efficiency or tactical objectives. Federal Profession Compensation's antitrust suit versus the merger occupied valuable time of the organization's elderly monitoring recommending that 'political' factors can have major ramifications for a worldwide business.

Economic Factors: Economic factors such as the emergence of small businesses in the international circumstance recommend that Reliable Equipment Ltd The Popcorn Predicament is flourishing in an atmosphere where there is potential development of companies. Reality that store customers are mostly looking for office supplies for home offices suggests that the market has a rising trend of entrepreneurs and also home based organisations.

Social factors: Social patterns in the economy show that customers are searching for benefit along with attractive prices. Market research demonstrates how the client for Reliable Equipment Ltd The Popcorn Predicament lacks recognition regarding locating remedies which can offer a mix of comfort and also low costs.

Technical factors: Technology plays an essential function in Reliable Equipment Ltd The Popcorn Predicament's company approach especially as the organization is piloting Innovation facilities which would certainly use innovation sales and assistance in the type of memory upgrades, outer installments. (Summary of INSECT in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Business Behavior issues can be seen in Reliable Equipment Ltd The Popcorn Predicament's case as highlighted in this section.

Apprehensions concerning social change: There is uneasiness regarding a social change that would certainly happen as soon as Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising And Marketing with a lot of the team member currently showing unhappiness over this prospective relocation. This expected modification has actually produced tension in the office which has actually been coupled with the previous anxiety of preparing the company for a possible merging with Residence Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is lack of workers that can match the stressful setting of a hectic company. Not only does this lead to problem in finding the right individuals, it puts stress on brand-new hires as can not endure the pace and also pressure that the company anticipates them to birth.

Twin Coverage Lines: Novices locate this business culture cumbersome and also hard to cope with particularly as dotted line relationships are indicated to be weaker in general and also objective setting and also efficiency analysis is still done by the strong line manager. This indicates that beginners might shed clearness about their respective functions and purposes especially as populated line reporting does not maintain them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had been speculated that the latter would take Krasnow's placement came as a strike to her spirits. Lewis might have been capable and also appropriate for the job but the truth that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Task Insecurity: Concern and also insecurity can be determined as two significant issues that Lewis would certainly be taking care of specifically as the merger has currently be cancelled as well as two senior execs of the advertising department would be leaving. The entire obligation of the division would be dropping on Lewis's shoulders who would not simply supervise of brining regarding a social change but would certainly also have to prove herself in her brand-new role.

Inappropriate Management Style of Leader: Lewis's monitoring design and its conflict with the advertising division's role can also be seen as an OB difficulty particularly as she has actually been made use of to taking care of problems in the operations division where personnel are taught to focus on processes and also obtain them. The marketing department on the various other hand can be seen as a group of individuals that are utilized to being supported by Krasnow that focused a lot more on output than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements in between 3 departments, advertising and marketing, merchandizing and operations specifically over the allowance of the marketing mix can be identified as an additional OB worry. Although the advertising and marketing division does not share the exact same vision as the various other two divisions concerning the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and also procedures divisions do not agree over the advertising mix allowance amongst each other either.

Fragmentation in Advertising Department: Disintegration in between the marketing and advertising departments can be recognized as another OB issue which could require further interest. The fact that the advertising and marketing areas in the advertising and marketing department are separated is stopping both departments from obtaining from each other's experience and knowledge. Integration of advertising with retailing and operations would certainly end up being harder if the marketing department itself is broken down which can be another possible OB problem.

Reliable Equipment Ltd The Popcorn Predicament Analysis

Numerous concepts have actually been made use of to explain the scenarios to obtain more quality regarding the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of supervisors think that staffs are passive and also careless, have little aspiration as well as withstand modification. The tough variation of this theory emphasized browbeating, tight controls, dangers and punishments. Over time it generates low efficiency, refined sabotage as well as competition (Deal, 2003). The situation at Reliable Equipment Ltd The Popcorn Predicament is not completely complying with Concept X, it can be seen that new hires are discovering this setting rather difficult which may ultimately lead to a better disposition of the monitoring in the direction of Concept X. According to McGregor's supported sight, which he called Concept Y, the crucial job of the management is to prepare organizational conditions to make sure that people can accomplish their own goals best by directing their initiatives towards business rewards. If people find no fulfillment in their work, the monitoring would have little choice but to depend on theory X and exterior control (Bargain, 2003). Also while examining Lewis's management style, concept X may have been suitable in the operations division to some extent yet the Advertising and marketing department would require dependence on Theory Y in order to get the imagination and creativity from the teams.

Tuckman's Synergy Concept: As much as Lewis's problem regarding bringing harmony in between the advertising and also advertising division is worried, this would initially lead to clash as gone over by Bruce Tuckman in his 'Synergy Theory'. By combining the marketing and marketing division's work, there may be the same first detach which might lead to the 2nd phase of 'storming' where the teams challenge one another.

Bridges' Transition Version: As per William Bridge's theory (appendix 4), individuals are rather awkward with change, which is apparent by the circumstance at Reliable Equipment Ltd The Popcorn Predicament The situation can be viewed as a typical course of life if is studied based on Bridge's concept where he discusses that people undergo 3 stages of transition when they experience adjustment. 'Ending, losing and Letting go', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When people are presented with change, they go into stage one and so there may be feelings like sadness, uncertainty, disappointment, temper, anxiety, rejection and also disorientation.The circumstance at the marketing division of Reliable Equipment Ltd The Popcorn Predicament is similar so Lewis can obtain comfortable with the idea that it is not extraordinary behavior. In the 2nd stage, there may be a requirement to bridge the gap in between the new and old culture so Lewis may have to encounter this experience when Krasnow leaves. There may be low morale and also reduced productivity at this phase which must not be taken as a setback. It is during this stage that Lewis will need to provide advice to the department to ensure that they can discover a sense of direction. It can be seen how Krasnow has already made this change easier by making Lewis obtain associated with the division a year prior to his actual separation. As per Bridges' Model, stage three will bring about openness to discovering, High energy and dedication as individuals will certainly embrace the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has talks about the relevance of 'safety needs as being a reduced degree requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel protected and also out of threat' is at the 2nd degree of requirements. Before a staff member can be made to develop mentally, he requires to have his 'Physical 'and 'Security' requires met.

SWOT Analysis for Reliable Equipment Ltd The Popcorn Predicament Case Study

Ramification of Analysis.

The OB analysis has looked at various theories to recognize how to deal with the present scenario handy. The following 3 options have been proposed to aid Lewis manage the business difficulties in the marketing department. Each of these choices has been suggested for easing the shift needed to bring the advertising and marketing division in line with the needs of the market and also for making the cultural modification that would follow once the current leader leaves.

Combination of advertising and marketing features. Separating Adverting as well as Manufacturing features. Assimilation of Marketing with Operations.

Assessment of Alternatives.

Assimilation of Advertising & Advertising Functions: The internal advertising company of Reliable Equipment Ltd The Popcorn Predicament is already strength for the organization in terms of conserving up on expenses related to marketing and promotion. Considering that no brand-new recruitment has actually been done after Bridget Cole's departure with the coverage line being directly designated to Krasnow for the advertising feature, this is a beneficial chance for integrating the marketing and advertising features. Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merger days has experience in business-to-business advertising and marketing in addition to company and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both marketing and advertising functions.

The benefit of this method is that it will certainly incorporate the two functions while lowering the demand for employing an added resource for advertising. Along with this, Lewis would certainly be heading the marketing division and also in any case her substitute would certainly be needed for the present function that she is carrying out. The disadvantage of this option is that exterior hiring might produce resentment from inner employees who might be considering the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Production: Offered the competitive stress as well as high top quality job needed from the advertising firm, it is suggested that Lewis must permit the production device to be a different function from the advertising and marketing unit. Given that the majority of advertising agencies had these 2 functions as different devices, it makes more feeling to comply with the standard.

Assimilation of Advertising with Procedures: Given that Lewis is already caring for the advertising and marketing and procedures departments concurrently; it makes sense to integrate the two features given that she has actually been successfully dealing with both ends. The fact that the two divisions already have significant differences over appropriation of resources suggests that this combination might have the ability to produce harmony especially as Lewis would certainly be heading both ends.However there are different negative aspects of this move particularly as it would certainly place too much concern over Lewis's shoulders. The truth that Lewis has to adjust her monitoring style for the advertising department suggests that these two divisions would certainly be culturally varied. In addition to this, Lewis may not be able to use one kind of management design to both departments which can cause ineffectiveness in either among both features.


An examination of the three choices shows that integration of marketing and also operations would certainly not be a feasible action as a result of the substantial distinctions in between both divisions although that currently Lewis is managing both. While splitting up of the manufacturing function may have been a favorable step for the advertising department, the reality that it would certainly suggest positioning a third function under Lewis's wing indicates this must be prevented too. The assimilation of the advertising division is the very best alternative in regards to obtaining the optimum results from the division. An activity prepare for this option is gone over listed below.

Activity Strategy.
Lewis will certainly take over the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

Manufacturing feature will stay part of advertising and marketing under marketing feature.

Lewis will certainly separate herself from operations.

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

Open up door policy and also focus on cross departmental interaction will be aimed at eliminating disharmony.

Contingency strategy.

If the assimilation does not exercise as prepared, a backup plan would follow which would divide the manufacturing feature from the marketing function to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing department without an SVP. Because case the manufacturing function will most definitely be divided by placing it under an SVP production.