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Wal Mart Stores Inc Case Study Solution

Background and Facts

Wal Mart Stores Inc a workplace products merchant for small and average sized services has lately been involved in planning for a merger with its rival Residence Deport, which has influenced efficiency degrees in departmentswith the senior supervisor associated with lawful problems put forth by the federal Trade Compensation. With the Advertising Head advancing the information of his separation from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the duty in the future. With challenges in the kind of a potential cultural adjustment as well as low worker spirits, the company requires a complete reengineering effort at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising division of Wal Mart Stores Inc is boosting unpredictability in the working environment resulting in numerous obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting strategic choices considering that Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Trade Payment's intervention at the same time. Given the fact that the shop has an international presence with branches in UK, USA, Canada and also Germany, political factors in each of these countries might be able to influence performance or strategic goals. Federal Trade Payment's antitrust suit versus the merger occupied valuable time of the organization's elderly administration suggesting that 'political' factors can have significant effects for an international business.

Economic Factors: Economic factors such as the development of small companies in the global circumstance suggest that Wal Mart Stores Inc is thriving in an environment where there is prospective development of companies. In addition to this, truth that shop consumers are mainly trying to find office materials for office recommends that the marketplace has a climbing fad of entrepreneurs as well as home organisations.

Social factors: Social fads in the economic situation show that clients are looking for convenience as well as eye-catching prices. Market research shows how the client for Wal Mart Stores Inc does not have understanding concerning discovering solutions which can provide a mix of comfort and also low costs.

Technical factors: Innovation plays a crucial function in Wal Mart Stores Inc's organisation approach especially as the organization is piloting Innovation facilities which would offer technology sales as well as support in the form of memory upgrades, peripheral installments. (Summary of INSECT in appendix 2).

OB Issues and Manifestations.

Numerous underlying Organizational Actions issues can be seen in Wal Mart Stores Inc's case as highlighted in this area.

Worries regarding social modification: There is concern about a cultural adjustment that would certainly take place as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Marketing with a lot of the personnel already revealing unhappiness over this potential step. This anticipated change has created tension in the office which has actually been paired with the past stress of preparing the firm for a potential merging with House Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is shortage of workers that can match the difficult environment of a hectic organization. Not just does this lead to trouble in finding the ideal individuals, it puts stress on new hires as can not withstand the pace as well as stress that the organization expects them to birth.

Dual Reporting Lines: Newbies locate this organizational society difficult and challenging to manage specifically as dotted line relationships are indicated to be weaker in general and also unbiased setup as well as performance examination is still done by the solid line supervisor. This implies that newcomers could lose quality regarding their respective roles and purposes especially as populated line reporting does not maintain them in direct communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had been speculated that the latter would certainly take Krasnow's position came as a strike to her morale. Lewis might have been capable and also ideal for the job but the truth that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Fear & Work Instability: Worry as well as instability can be recognized as two significant worries that Lewis would be dealing with especially as the merger has actually currently be terminated as well as 2 elderly executives of the advertising and marketing department would be leaving. The entire duty of the division would certainly be falling on Lewis's shoulders that would certainly not simply supervise of brining about a cultural modification yet would certainly also have to show herself in her new role.

Incompatible Monitoring Design of Leader: Lewis's management design and its conflict with the advertising department's function can additionally be viewed as an OB challenge especially as she has actually been used to dealing with issues in the procedures division where workers are taught to concentrate on procedures as well as obtain them right. The marketing department on the other hand can be seen as a team of individuals that are made use of to being nurtured by Krasnow who focused a lot more on outcome than procedures.

Interdepartmental Differences: Interdepartmental differences between 3 divisions, advertising and marketing, merchandizing and procedures specifically over the allocation of the marketing mix can be identified as an additional OB problem. The marketing department does not share the very same vision as the various other 2 divisions pertaining to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing as well as procedures departments do not concur over the marketing mix allotment amongst one another either.

Disintegration in Marketing Division: Disintegration in between the marketing and advertising departments can be recognized as another OB problem which could need additional focus. The truth that the advertising and marketing sections in the marketing department are separated is preventing both departments from obtaining from each other's experience and expertise. Combination of advertising with retailing as well as operations would certainly become more difficult if the advertising and marketing division itself is disintegrated which can be one more prospective OB problem.

Wal Mart Stores Inc Analysis

Different concepts have actually been used to describe the scenarios to obtain more clarity about the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of managers think that juniors are passive and careless, have little ambition as well as stand up to modification. The situation at Wal Mart Stores Inc is not completely complying with Theory X, it can be seen that brand-new hires are discovering this atmosphere instead demanding which may ultimately lead to a higher inclination of the administration in the direction of Theory X. Also while evaluating Lewis's management style, concept X may have been appropriate in the procedures division to some level yet the Advertising department would certainly require reliance on Theory Y in order to get the imagination and creativity from the teams.

Tuckman's Teamwork Concept: As far as Lewis's problem concerning bringing consistency between the advertising and marketing and also advertising department is worried, this would initially lead to conflict as reviewed by Bruce Tuckman in his 'Team effort Theory'. By combining the advertising and marketing and also advertising and marketing division's job, there may be the exact same preliminary separate which can lead to the second phase of 'storming' where the teams test one an additional.

When individuals are provided with adjustment, they go into phase one and also so there might be emotions like unhappiness, uncertainty, aggravation, temper, worry, denial and also disorientation.The scenario at the advertising department of Wal Mart Stores Inc is similar so Lewis can obtain comfortable with the concept that it is not phenomenal actions. It is throughout this stage that Lewis will certainly have to give support to the division so that they can discover a feeling of direction. It can be seen how Krasnow has actually already made this change less complicated by making Lewis obtain included in the department a year before his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has discusses the significance of 'safety and security requires as being a lower level need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel safe as well as out of danger' is at the second degree of requirements. Prior to a worker can be made to establish mentally, he needs to have his 'Physiological 'and 'Safety' needs satisfied.

SWOT Analysis for Wal Mart Stores Inc Case Study

Ramification of Analysis.

The OB analysis has taken a look at various concepts to recognize how to handle the current situation available. The following 3 alternatives have actually been recommended to assist Lewis handle the organizational challenges in the advertising division. Each of these options has actually been suggested for easing the shift needed to bring the advertising division in accordance with the demands of the marketplace and for making the cultural change that would certainly follow once the current leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and Production functions. Integration of Marketing with Operations.

Analysis of Alternatives.

Combination of Advertising And Marketing & Advertising And Marketing Functions: The internal advertising and marketing agency of Wal Mart Stores Inc is already toughness for the organization in regards to conserving up on overheads associated with advertising and marketing and also promo. Because no new employment has actually been done after Bridget Cole's departure with the coverage line being straight appointed to Krasnow for the advertising feature, this is a favorable opportunity for integrating the marketing and advertising functions. Judith Shapiro that has earlier been spoken with by Lewis during the earlier merger days has know-how in business-to-business marketing together with company and retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both advertising and marketing functions.

The benefit of this strategy is that it will certainly integrate both features while decreasing the need for working with an added source for advertising and marketing. Lewis would certainly be heading the advertising division and in any case her substitute would certainly be needed for the current duty that she is doing. The downside of this alternative is that external hiring might bring about resentment from inner workers who may be looking at the setting of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Production: Provided the competitive stress and high top quality job called for from the marketing firm, it is recommended that Lewis needs to allow the production device to be a different feature from the marketing device. Given that a lot of advertising and marketing firms had these two functions as separate systems, it makes even more feeling to comply with the norm.

Integration of Advertising And Marketing with Operations: Given that Lewis is currently caring for the advertising and marketing and also operations departments all at once; it makes sense to integrate both features given that she has actually been effectively dealing with both ends. The fact that the two divisions currently have significant distinctions over allowance of resources recommends that this integration might be able to bring about harmony especially as Lewis would certainly be heading both ends.However there are numerous disadvantages of this relocation particularly as it would put way too much concern over Lewis's shoulders. The fact that Lewis needs to adapt her monitoring style for the marketing department suggests that these 2 departments would certainly be culturally diverse. Lewis may not be able to use one type of leadership design to both departments which could result in inefficiency in either one of the two features.


An evaluation of the three choices suggests that integration of marketing and operations would not be a possible action due to the vast distinctions in between the two divisions although that presently Lewis is managing both. While splitting up of the production function may have been a beneficial relocation for the advertising division, the fact that it would certainly mean positioning a 3rd feature under Lewis's wing indicates this should be stayed clear of also. The combination of the advertising division is the best choice in terms of obtaining the ideal results from the department. An activity prepare for this option is reviewed below.

Action Strategy.
Lewis will certainly take control of the function of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be merged.

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

Manufacturing function will certainly remain component of advertising under advertising and marketing feature.

Lewis will divide herself from operations.

An autonomous leadership design with employee empowerment will certainly be used in advertising division.

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

Contingency strategy.

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