The Jia Wu Expansion Case Study Solution


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The Jia Wu Expansion Case Study Analysis

Background and Facts

The Jia Wu Expansion a workplace products seller for little as well as medium sized businesses has actually just recently been involved in planning for a merging with its rival House Deport, which has influenced performance degrees in departmentswith the elderly manager associated with lawful issues presented by the federal Profession Commission. With the Advertising Head advancing the news of his separation from the business in one year, Jeannie Lewis, the existing head of procedures has been asked to take the duty in the near future. With challenges in the kind of a possible cultural adjustment as well as reduced staff member morale, the organization requires a complete reengineering effort at the advertising department.

Issue Statement

The potential social adjustment at the marketing department of The Jia Wu Expansion is increasing uncertainty in the working environment resulting in various difficulties for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing calculated decisions considering that Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Profession Payment's intervention at the same time. Provided the fact that the store has a global visibility with branches in UK, USA, Canada as well as Germany, political consider each of these nations may be able to impact efficiency or strategic objectives. Federal Profession Payment's antitrust fit versus the merging occupied useful time of the organization's senior management recommending that 'political' factors can have significant effects for a global organisation.

Economic Factors: Financial factors such as the development of small businesses in the worldwide situation suggest that The Jia Wu Expansion is flourishing in an environment where there is possible development of organisations. In addition to this, reality that store clients are mostly seeking office materials for home offices recommends that the marketplace has a rising pattern of business owners and also online organisations.

Social factors: Social trends in the economy show that consumers are trying to find comfort in addition to attractive rates. Marketing research demonstrates how the client for The Jia Wu Expansion does not have understanding regarding discovering services which can use a combination of ease as well as low costs.

Technological factors: Innovation plays a vital function in The Jia Wu Expansion's organisation technique especially as the organization is piloting Innovation facilities which would supply technology sales as well as support in the kind of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues and also Effects.

Numerous underlying Business Habits problems can be seen in The Jia Wu Expansion's case as highlighted in this area.

Uneasiness concerning cultural adjustment: There is uneasiness about a cultural adjustment that would certainly occur when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising with the majority of the employee currently revealing unhappiness over this potential step. This expected modification has produced stress in the workplace which has been coupled with the previous stress of preparing the firm for a possible merging with House Deport.

Difficult Job Setting for Newcomers: There is lack of employees that can match the stressful atmosphere of a fast-paced company. Not just does this result in trouble in finding the appropriate people, it puts tension on brand-new hires as can not endure the speed and stress that the company expects them to birth.

Dual Coverage Lines: Beginners discover this organizational culture cumbersome and challenging to cope with particularly as dotted line connections are meant to be weaker in general and unbiased setting and efficiency assessment is still done by the strong line manager. This implies that newcomers might shed quality about their corresponding functions as well as purposes particularly as populated line reporting does not keep them in direct interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had been guessed that the latter would take Krasnow's setting came as a blow to her morale. Lewis might have been qualified as well as ideal for the task however the reality that Kransnow's departure would make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.

Fear & Task Instability: Concern and insecurity can be recognized as 2 significant concerns that Lewis would certainly be taking care of particularly as the merging has currently be cancelled and two senior executives of the advertising division would be leaving. The whole duty of the department would be falling on Lewis's shoulders who would not simply be in charge of brining regarding a cultural adjustment but would additionally need to prove herself in her new role.

Incompatible Management Style of Leader: Lewis's administration style and its incompatibility with the marketing department's function can likewise be seen as an OB challenge specifically as she has actually been used to taking care of concerns in the operations division where workers are instructed to concentrate on procedures and also get them. The advertising and marketing department on the various other hand can be viewed as a team of people that are made use of to being supported by Krasnow who concentrated much more on output than procedures.

Interdepartmental Disagreements: Interdepartmental disputes between three divisions, marketing, merchandizing and procedures specifically over the allotment of the advertising mix can be recognized as one more OB worry. The marketing department does not share the exact same vision as the various other 2 divisions pertaining to the aloocation of the advertising mix twoards promos and advertsing, the merchandizing as well as operations departments do not agree over the advertising mix appropriation amongst one an additional either.

Disintegration in Advertising And Marketing Department: Disintegration in between the marketing and advertising departments can be determined as one more OB concern which might need further attention. The fact that the advertising and marketing sections in the advertising and marketing department are detached is stopping both divisions from getting from each various other's experience and proficiency. Assimilation of advertising with merchandising and also procedures would certainly become more difficult if the advertising and marketing division itself is degenerated which can be an additional prospective OB concern.

The Jia Wu Expansion Analysis

Various theories have actually been utilized to clarify the conditions to obtain further clearness regarding the scenario at hand.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers think that staffs are passive and also careless, have little aspiration and resist adjustment. The difficult version of this theory emphasized threat, tight controls, hazards as well as punishments. Over time it creates low productivity, refined sabotage and also rivalry (Deal, 2003). Although the circumstance at The Jia Wu Expansion is not completely following Theory X, it can be seen that brand-new hires are locating this environment rather stressful which might at some point result in a better inclination of the administration in the direction of Concept X. Based on McGregor's supported sight, which he called Theory Y, the essential task of the management is to arrange business problems to make sure that people can attain their own objectives best by directing their initiatives towards business rewards. If individuals locate no complete satisfaction in their work, the monitoring would have little selection but to rely on concept X and external control (Offer, 2003). Also while analyzing Lewis's management design, concept X might have been suitable in the procedures department somewhat however the Marketing department would need dependence on Theory Y to get the creative thinking and also creativity from the groups.

Tuckman's Team effort Theory: As much as Lewis's concern regarding bringing harmony in between the marketing and also advertising division is worried, this would at first lead to clash as reviewed by Bruce Tuckman in his 'Teamwork Theory'. By combining the marketing as well as advertising and marketing department's job, there might be the very same preliminary separate which might lead to the second stage of 'storming' where the teams challenge one an additional.

Bridges' Change Design: As per William Bridge's theory (appendix 4), people are fairly uneasy with modification, which is obvious by the situation at The Jia Wu Expansion The situation can be seen as a typical training course of life if is studied based on Bridge's concept where he describes that people experience three stages of shift when they experience change. 'Ending, losing as well as Releasing', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they enter phase one and so there might be emotions like sadness, uncertainty, stress, rage, worry, rejection and disorientation.The circumstance at the marketing department of The Jia Wu Expansion is comparable so Lewis can get comfortable with the idea that it is not remarkable behavior. In the 2nd stage, there might be a requirement to connect the space in between the brand-new and old society so Lewis might need to face this ordeal once Krasnow leaves. There might be low morale and low efficiency at this stage which ought to not be taken as an obstacle. It is during this phase that Lewis will have to provide support to the division to ensure that they can find a sense of direction. It can be seen just how Krasnow has currently made this shift less complicated by making Lewis obtain associated with the department a year prior to his actual separation. Based on Bridges' Design, phase 3 will certainly bring about openness to knowing, High power and commitment as individuals will certainly welcome the change (Bridges, 2004).

Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has discusses the significance of 'protection requires as being a lower degree demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel secure and out of danger' is at the second level of demands. Before a worker can be made to establish psychologically, he needs to have his 'Physiological 'and 'Safety and security' requires satisfied.

SWOT Analysis for The Jia Wu Expansion Case Study

Implication of Analysis.

The OB analysis has taken a look at different concepts to comprehend exactly how to handle the current scenario handy. The complying with three options have actually been suggested to help Lewis manage the organizational challenges in the marketing department. Each of these choices has been proposed for alleviating the transition needed to bring the advertising and marketing division in line with the needs of the market and for making the cultural adjustment that would certainly adhere to when the existing leader leaves.

Combination of advertising and marketing functions. Separating Adverting as well as Manufacturing features. Combination of Advertising And Marketing with Operations.

Assessment of Alternatives.

Integration of Advertising And Marketing & Advertising Functions: The in-house advertising firm of The Jia Wu Expansion is already toughness for the organization in terms of saving up on overheads associated with advertising and marketing and promo. Because no brand-new employment has been done after Bridget Cole's departure with the coverage line being straight assigned to Krasnow for the advertising and marketing feature, this is a positive possibility for incorporating the advertising and marketing features. Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merging days has know-how in business-to-business marketing in addition to company and also retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to handle both marketing and advertising functions.

The benefit of this strategy is that it will incorporate both features while lowering the demand for working with an additional resource for marketing. In addition to this, Lewis would certainly be heading the marketing division and all the same her substitute would certainly be needed for the current role that she is performing. The negative aspect of this alternative is that external hiring might produce animosity from interior personnel that might be looking at the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and Production: Offered the competitive pressures as well as premium quality job required from the advertising agency, it is advised that Lewis must allow the production device to be a different feature from the marketing unit. Given that the majority of advertising agencies had these 2 features as separate devices, it makes even more feeling to adhere to the standard. Along with this, both functions may be able to concentrate on their core activates extra effectively. However, the downside of this approach would certainly be that extra expenses would have to be birthed for setting up different manufacturing features. A manufacturing head might have to be worked with which can enhance expenses for the company.

Combination of Advertising And Marketing with Workflows: Given that Lewis is currently taking care of the marketing and procedures departments at the same time; it makes sense to incorporate the two functions because she has been effectively dealing with both ends. The truth that the two divisions currently have major differences over allotment of sources recommends that this integration might be able to bring about consistency specifically as Lewis would certainly be heading both ends.However there are different drawbacks of this move particularly as it would certainly place way too much worry over Lewis's shoulders. The reality that Lewis needs to adjust her administration design for the advertising department suggests that these two divisions would be culturally diverse. Lewis might not be able to apply one kind of management style to both departments which might result in inadequacy in either one of the two functions.


An analysis of the three choices shows that assimilation of marketing and operations would not be a feasible step because of the huge distinctions in between both departments although that presently Lewis is taking care of both. While separation of the manufacturing feature may have been a positive step for the advertising and marketing division, the fact that it would certainly suggest placing a 3rd feature under Lewis's wing means this must be stayed clear of. The combination of the marketing department is the most effective option in terms of getting the ideal arise from the department. An action prepare for this choice is discussed below.

Activity Strategy.

Lewis will take control of the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would be merged.

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

Manufacturing feature will remain part of advertising and marketing under advertising and marketing function.

Lewis will certainly divide herself from procedures.

An autonomous leadership design with employee empowerment will certainly be made use of in advertising department.

Open door policy as well as emphasis on cross department communication will certainly be targeted at eliminating discord.

Backup plan.

If the integration does not work out as prepared, a backup plan would adhere to which would divide the manufacturing feature from the advertising function to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the marketing division without an SVP. Because case the manufacturing function will certainly be divided by positioning it under an SVP production.