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The Jia Wu Expansion Case Study Analysis

Background and Facts

The Jia Wu Expansion a workplace materials merchant for small and also moderate sized services has actually lately been involved in planning for a merger with its competitor Home Deport, which has affected efficiency levels in departmentswith the elderly manager involved in lawful difficulties put forth by the government Profession Payment. With the Marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the present head of operations has been asked to take the duty in the future. With difficulties in the kind of a possible social modification and also reduced employee morale, the company is in need of a complete reengineering initiative at the advertising division.

Issue Statement
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising and marketing division of The Jia Wu Expansion is enhancing uncertainty in the working environment leading to different challenges for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting strategic choices considering that Stapes Inc. needed to abandon its strategies of merging with Office Deport after the Federal Trade Commission's intervention in the process. Offered the fact that the shop has a worldwide existence with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries may be able to affect efficiency or strategic objectives. Federal Trade Commission's antitrust match versus the merger occupied useful time of the organization's elderly management recommending that 'political' factors can have serious effects for a global business.

Economic Factors: Financial factors such as the emergence of small companies in the worldwide situation recommend that The Jia Wu Expansion is prospering in a setting where there is prospective development of organisations. In addition to this, truth that store customers are primarily seeking workplace products for home offices recommends that the marketplace has an increasing fad of entrepreneurs and home services.

Social factors: Social patterns in the economy show that consumers are seeking comfort as well as attractive rates. Market research shows how the consumer for The Jia Wu Expansion lacks understanding about finding services which can use a combination of convenience and also affordable.

Technological factors: Innovation plays a crucial duty in The Jia Wu Expansion's business strategy specifically as the organization is piloting Modern technology facilities which would offer modern technology sales and assistance in the kind of memory upgrades, peripheral installations. (Summary of INSECT in appendix 2).

OB Issues and also Manifestations.

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

Worries about social adjustment: There is uneasiness about a cultural change that would happen when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with a lot of the employee already showing unhappiness over this possible step. This expected modification has developed stress in the office which has actually been combined with the past stress and anxiety of preparing the firm for a prospective merger with Residence Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is lack of workers that can match the stressful setting of a busy company. Not only does this bring about trouble in finding the right people, it puts stress and anxiety on new hires as can not hold up against the pace as well as stress that the company anticipates them to birth.

Double Coverage Lines: Newbies find this business society difficult as well as tough to manage specifically as dotted line partnerships are suggested to be weaker in general and also objective setting and efficiency analysis is still done by the strong line manager. This implies that newcomers might lose quality regarding their respective functions as well as goals especially as dotted line coverage 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 as opposed to Bridget Coles despite the fact that it had actually been guessed that the last would take Krasnow's placement came as a strike to her spirits. Lewis may have been qualified as well as ideal for the task however the reality that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Job Instability: Anxiety as well as insecurity can be recognized as 2 significant concerns that Lewis would be dealing with specifically as the merging has actually currently be cancelled and also 2 elderly executives of the advertising and marketing division would be leaving. The entire obligation of the department would be falling on Lewis's shoulders that would not just supervise of brining regarding a cultural adjustment however would certainly also have to verify herself in her new role.

Inappropriate Monitoring Design of Leader: Lewis's administration style and its conflict with the marketing department's duty can additionally be seen as an OB difficulty particularly as she has actually been made use of to handling concerns in the procedures division where employees are taught to concentrate on processes and get them right. The advertising division on the various other hand can be viewed as a group of people that are utilized to being nurtured by Krasnow that focused much more on output than processes.

Interdepartmental Differences: Interdepartmental disagreements between three divisions, marketing, merchandizing and also procedures respectively over the allowance of the marketing mix can be determined as another OB problem. Although the marketing department does not share the exact same vision as the various other 2 departments relating to the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and procedures divisions do not agree over the marketing mix allocation among each other either.

Disintegration in Marketing Division: Disintegration between the marketing and advertising departments can be identified as another OB concern which could require further attention. The truth that the marketing and advertising areas in the advertising division are separated is stopping both divisions from getting from each other's experience as well as experience. Integration of marketing with merchandising and operations would end up being harder if the advertising and marketing division itself is degenerated which can be an additional potential OB issue.

The Jia Wu Expansion Analysis

Numerous theories have actually been made use of to clarify the situations to obtain additional quality concerning the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers think that staffs are easy as well as lazy, have little ambition as well as withstand change. The circumstance at The Jia Wu Expansion is not entirely complying with Theory X, it can be seen that brand-new hires are finding this atmosphere instead demanding which may at some point lead to a higher inclination of the management towards Concept X. Even while analyzing Lewis's monitoring design, theory X may have been appropriate in the procedures department to some level however the Advertising and marketing division would need reliance on Theory Y in order to get the creative thinking as well as creativity from the groups.

Tuckman's Synergy Concept: As far as Lewis's issue concerning bringing harmony between the advertising and marketing as well as advertising division is worried, this would initially lead to clash as talked about by Bruce Tuckman in his 'Teamwork Theory'. By combining the advertising and marketing and also advertising and marketing department's job, there may be the exact same first separate which can lead to the second phase of 'storming' where the groups challenge one another.

When individuals are offered with adjustment, they get in phase one and also so there might be feelings like unhappiness, unpredictability, frustration, anger, worry, denial and disorientation.The circumstance at the advertising department of The Jia Wu Expansion is similar so Lewis can obtain comfy with the suggestion that it is not remarkable habits. It is during this phase that Lewis will have to give assistance to the division so that they can locate a feeling of instructions. It can be seen just how Krasnow has already made this transition simpler by making Lewis obtain entailed in the department a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the importance of 'protection requires as being a lower level requirement of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel protected and out of danger' is at the second level of needs. Before a staff member can be made to establish emotionally, he requires to have his 'Physical 'and also 'Safety' needs satisfied.

SWOT Analysis for The Jia Wu Expansion Case Study

Effects of Analysis.

The OB analysis has actually checked out various concepts to comprehend exactly how to cope with the present situation at hand. The following 3 alternatives have actually been suggested to help Lewis take care of the organizational obstacles in the advertising and marketing division. Each of these options has been recommended for easing the shift required to bring the advertising and marketing division according to the demands of the market as well as for making the cultural modification that would certainly adhere to when the current leader leaves.

Assimilation of advertising and marketing features. Separating Adverting and Production features. Assimilation of Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merger days has competence in business-to-business marketing along with agency as well as retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both marketing as well as advertising and marketing functions.

The benefit of this approach is that it will certainly integrate the two features while minimizing the requirement for hiring an added source for advertising and marketing. Along with this, Lewis would be heading the advertising and marketing department and regardless her replacement would be needed for the current duty that she is executing. The disadvantage of this alternative is that exterior hiring might bring about bitterness from inner workers that may be eying the position of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and also Manufacturing: Given the competitive stress as well as high top quality work needed from the advertising and marketing agency, it is advised that Lewis ought to permit the manufacturing unit to be a different function from the advertising system. Because most advertising companies had these two features as separate units, it makes even more sense to comply with the standard.

Assimilation of Advertising And Marketing with Procedures: Considering that Lewis is already taking care of the advertising as well as procedures divisions simultaneously; it makes sense to incorporate the 2 features since she has actually been effectively taking care of both ends. The fact that Lewis has to adapt her monitoring style for the advertising division recommends that these 2 divisions would certainly be culturally diverse.


An examination of the three choices suggests that combination of advertising and also procedures would not be a viable action because of the vast distinctions in between both departments despite the fact that currently Lewis is managing both. While separation of the manufacturing function might have been a desirable action for the marketing department, the truth that it would suggest positioning a 3rd feature under Lewis's wing implies this should be stayed clear of. The combination of the advertising and marketing division is the best alternative in terms of getting the optimal results from the division. An activity prepare for this option is gone over below.

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

Marketing and advertising features would certainly be merged.

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

Production function will certainly stay part of advertising and marketing under marketing function.

Lewis will certainly divide herself from operations.

An autonomous management design with staff member empowerment will be used in advertising and marketing department.

Open door policy and also focus on cross departmental communication will be aimed at eliminating discord.

Backup strategy.

If the assimilation does not exercise as intended, a contingency plan would certainly comply with which would certainly separate the production function from the advertising function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising department without an SVP. Because case the manufacturing function will definitely be separated by placing it under an SVP manufacturing.