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 materials merchant for small and average sized companies has recently been associated with planning for a merger with its rival Residence Deport, which has actually impacted performance degrees in departmentswith the elderly supervisor associated with lawful issues put forth by the government Profession Compensation. With the Marketing Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the duty in the near future. With challenges in the form of a possible cultural modification and also low worker spirits, the company requires a complete reengineering effort at the advertising division.

Issue Statement
Porter's 5 Forces Analysis
The prospective social change at the advertising and marketing department of Reliable Equipment Ltd The Popcorn Predicament is enhancing uncertainty in the workplace bring about numerous obstacles 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 strategic choices because Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Trade Compensation's treatment while doing so. Provided the fact that the store has a worldwide existence with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these nations may be able to impact efficiency or strategic objectives. Federal Profession Commission's antitrust suit versus the merging used up valuable time of the organization's elderly monitoring recommending that 'political' factors can have significant effects for a global business.

Economic Factors: Economic factors such as the appearance of small businesses in the global circumstance recommend that Reliable Equipment Ltd The Popcorn Predicament is thriving in a setting where there is prospective development of services. Truth that shop clients are mostly looking for office materials for house workplaces suggests that the market has an increasing pattern of entrepreneurs as well as residence based businesses.

Social factors: Social patterns in the economic climate show that clients are searching for benefit along with eye-catching prices. Market research demonstrates how the customer for Reliable Equipment Ltd The Popcorn Predicament does not have recognition about discovering remedies which can provide a mix of benefit and inexpensive.

Technological factors: Technology plays an important role in Reliable Equipment Ltd The Popcorn Predicament's company method especially as the company is piloting Modern technology facilities which would certainly offer technology sales and also support in the kind of memory upgrades, peripheral installments. (Summary of PEST in appendix 2).

OB Issues and Effects.

Several underlying Business Actions concerns can be seen in Reliable Equipment Ltd The Popcorn Predicament's case as highlighted in this area.

Worries about cultural adjustment: There is apprehension regarding a cultural change that would certainly take place as soon as Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with the majority of the employee currently showing discontent over this possible step. This anticipated modification has developed tension in the workplace which has actually been combined with the past stress of preparing the firm for a prospective merger with Residence Deport.
Pest Analysis
Difficult Work Setting for Newcomers: There is lack of employees that can match the demanding environment of a fast-paced organization. Not only does this bring about trouble in discovering the ideal individuals, it puts anxiety on brand-new hires as can not endure the rate as well as pressure that the company anticipates them to birth.

Double Coverage Lines: Beginners find this business culture troublesome and tough to handle particularly as dotted line relationships are implied to be weak generally as well as objective setup as well as performance assessment is still done by the solid line manager. This means that beginners could lose clearness about their corresponding functions and goals especially as populated line reporting does not maintain them in direct interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles although it had actually been hypothesized that the last would certainly take Krasnow's placement came as a strike to her spirits. Lewis may have been capable and suitable for the task but the reality that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Concern & Work Instability: Anxiety and also insecurity can be identified as two significant problems that Lewis would certainly be taking care of particularly as the merging has actually now be terminated and also two elderly execs of the advertising and marketing division would certainly be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders who would certainly not just be in charge of brining about a cultural change however would certainly likewise have to confirm herself in her brand-new role.

Incompatible Administration Style of Leader: Lewis's administration design as well as its incompatibility with the advertising and marketing department's function can also be seen as an OB challenge particularly as she has actually been used to handling problems in the procedures department where personnel are instructed to concentrate on procedures as well as obtain them. The advertising and marketing department on the other hand can be viewed as a team of people who are used to being supported by Krasnow that concentrated more on outcome than processes.

Interdepartmental Disputes: Interdepartmental arguments in between three divisions, advertising, merchandizing and operations specifically over the allocation of the advertising and marketing mix can be recognized as one more OB concern. The marketing department does not share the same vision as the various other two divisions pertaining to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and procedures departments do not agree over the advertising mix allotment among one another either.

Fragmentation in Advertising And Marketing Division: Disintegration between the advertising and marketing divisions can be identified as an additional OB concern which can need more interest. The reality that the marketing and advertising areas in the marketing department are separated is stopping both divisions from obtaining from each various other's experience as well as know-how. Integration of marketing with merchandising as well as procedures would certainly end up being harder if the marketing division itself is broken down which can be one more possible OB problem.

Reliable Equipment Ltd The Popcorn Predicament Analysis

Various concepts have been utilized to clarify the scenarios to get additional quality concerning the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of supervisors think that subordinates are easy and careless, have little aspiration and stand up to change. The difficult version of this concept highlighted coercion, limited controls, dangers as well as punishments. Over time it creates low efficiency, refined sabotage and also competition (Bargain, 2003). Although the circumstance at Reliable Equipment Ltd The Popcorn Predicament is not entirely complying with Concept X, it can be seen that new hires are locating this environment rather difficult which may eventually result in a higher disposition of the monitoring towards Theory X. According to McGregor's advocated sight, which he called Concept Y, the crucial job of the management is to prepare organizational problems so that people can attain their very own objectives best by directing their efforts towards business rewards. If individuals find no contentment in their work, the monitoring would have little choice yet to rely upon concept X as well as external control (Bargain, 2003). Also while assessing Lewis's administration style, concept X may have been suitable in the procedures department somewhat yet the Advertising and marketing division would need reliance on Concept Y in order to get the imagination and also creativity from the teams.

Tuckman's Teamwork Theory: As much as Lewis's worry about bringing consistency in between the marketing as well as marketing department is concerned, this would originally lead to conflict as talked about by Bruce Tuckman in his 'Team effort Theory'. By incorporating the advertising and marketing and advertising department's job, there may be the exact same initial disconnect which might lead to the 2nd phase of 'storming' where the groups test one an additional.

Bridges' Transition Model: According To William Bridge's theory (appendix 4), individuals are quite uneasy with change, which is apparent by the circumstance at Reliable Equipment Ltd The Popcorn Predicament The situation can be viewed as a regular program of life if is studied according to Bridge's concept where he describes that individuals undergo three stages of change when they experience adjustment. 'Ending, losing as well as Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people are presented with modification, they go into stage one therefore there may be emotions like unhappiness, uncertainty, irritation, temper, concern, rejection and disorientation.The situation at the advertising and marketing division of Reliable Equipment Ltd The Popcorn Predicament is comparable so Lewis can obtain comfortable with the suggestion that it is not phenomenal behavior. In the 2nd phase, there might be a requirement to bridge the void between the brand-new and old society so Lewis might have to encounter this challenge when Krasnow leaves. There may be reduced spirits as well as reduced productivity at this stage which need to not be taken as a setback. It is throughout this phase that Lewis will need to give guidance to the department to ensure that they can discover an orientation. It can be seen just how Krasnow has actually already made this transition simpler by making Lewis obtain involved in the department a year prior to his real separation. According to Bridges' Model, stage three will certainly cause openness to learning, High power and also dedication as people will welcome the modification (Bridges, 2004).
Vrio Analysis
Maslow's Requirement power structure: The OB issue pertaining to instability at the work environment has actually been set off first of all by the modification in administration and also second of all by the reality that the merging will certainly no more be launched. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has goes over the importance 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 secure as well as untouched' goes to the 2nd degree of demands. Before a worker can be made to establish psychologically, he needs to have his 'Physical 'and also 'Security' needs met. This shows that unless the employees are made to feel secure about their current employment condition in Reliable Equipment Ltd The Popcorn Predicament they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Reliable Equipment Ltd The Popcorn Predicament Case Study

Effects of Analysis.

The OB analysis has taken a look at various concepts to understand exactly how to manage the existing circumstance available. The following 3 choices have been proposed to help Lewis handle the organizational difficulties in the advertising and marketing department. Each of these choices has actually been proposed for reducing the transition needed to bring the advertising division according to the needs of the marketplace and also for making the social adjustment that would certainly comply with as soon as the current leader leaves.

Integration of marketing and advertising features. Separating Adverting and also Manufacturing features. Combination of Marketing with Workflow.

Assessment of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merging days has experience in business-to-business advertising and marketing along with firm and retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both advertising and marketing and advertising features.

The benefit of this strategy is that it will integrate the two functions while reducing the requirement for working with an added source for marketing. In addition to this, Lewis would be heading the advertising and marketing division as well as all the same her replacement would certainly be required for the current duty that she is performing. The downside of this alternative is that exterior hiring might bring about animosity from internal personnel that may be considering the position of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and also Manufacturing: Given the affordable pressures and high quality job required from the marketing agency, it is recommended that Lewis must permit the manufacturing device to be a separate feature from the marketing unit. Given that many marketing agencies had these two features as separate devices, it makes more sense to comply with the standard.

Assimilation of Marketing with Procedures: Since Lewis is already taking treatment of the advertising and marketing as well as procedures divisions simultaneously; it makes feeling to incorporate the two functions given that she has been effectively taking care of both ends. The reality that Lewis has to adapt her management design for the advertising department recommends that these 2 divisions would be culturally varied.


An assessment of the three choices shows that combination of advertising as well as operations would not be a viable action because of the vast differences in between the two divisions although that presently Lewis is dealing with both. While splitting up of the manufacturing feature might have been a positive step for the marketing department, the fact that it would certainly indicate positioning a third function under Lewis's wing indicates this need to be avoided also. The integration of the advertising and marketing department is the very best choice in terms of obtaining the optimal results from the department. An activity prepare for this choice is discussed below.

Activity Strategy.
Lewis will certainly 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 advertising and marketing.

Manufacturing function will certainly continue to be component of marketing under advertising and marketing feature.

Lewis will certainly separate herself from procedures.

An autonomous leadership design with worker empowerment will be utilized in marketing division.

Open up door plan and focus on cross department interaction will be focused on removing discord.

Backup plan.

If the assimilation does not exercise as prepared, a backup plan would certainly adhere to which would certainly 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 hired, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the manufacturing feature will certainly be divided by positioning it under an SVP production.