Concordia Casting Co Case Study Analysis


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Background and Facts

Concordia Casting Co a workplace products seller for little as well as moderate sized services has lately been associated with planning for a merger with its competitor House Deport, which has impacted performance levels in departmentswith the elderly supervisor involved in legal difficulties presented by the government Trade Commission. With the Marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the future. With obstacles in the kind of a prospective cultural modification as well as reduced employee spirits, the organization is in need of a complete reengineering initiative at the marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the marketing department of Concordia Casting Co is boosting uncertainty in the workplace bring about numerous challenges for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting critical choices considering that Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Profession Compensation's treatment while doing so. Given the reality that the store has an international existence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations may have the ability to influence efficiency or tactical objectives. Federal Trade Compensation's antitrust fit against the merging took up valuable time of the company's elderly monitoring suggesting that 'political' factors can have severe ramifications for a worldwide service.

Economic Factors: Economic factors such as the development of local business in the international circumstance suggest that Concordia Casting Co is prospering in an environment where there is possible development of organisations. Reality that shop consumers are mainly looking for office materials for home offices recommends that the market has a rising trend of entrepreneurs and house based organisations.

Social factors: Social fads in the economy show that customers are seeking comfort along with appealing costs. Market research demonstrates how the consumer for Concordia Casting Co does not have understanding concerning finding services which can use a mix of ease as well as inexpensive.

Technological factors: Innovation plays an important function in Concordia Casting Co's service approach specifically as the organization is piloting Modern technology facilities which would offer modern technology sales and also support in the kind of memory upgrades, peripheral setups. (Summary of PARASITE in appendix 2).

OB Issues and also Manifestations.

Numerous underlying Organizational Actions problems can be seen in Concordia Casting Co's case as highlighted in this area.

Uneasiness regarding social adjustment: There is uneasiness regarding a social modification that would certainly occur as soon as Todd Krasnow leaves from his setting as the Exec Vice President of Marketing with a lot of the staff members currently revealing discontent over this prospective move. This predicted modification has created anxiety in the work environment which has been paired with the past stress and anxiety of preparing the company for a potential merging with Home Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is scarcity of employees that can match the demanding atmosphere of a busy company. Not just does this bring about trouble in discovering the ideal individuals, it puts anxiety on brand-new hires as can not endure the speed and also stress that the company expects them to bear.

Double Reporting Lines: Newcomers locate this business culture troublesome and difficult to manage specifically as dotted line partnerships are meant to be weaker in general and also unbiased setup as well as efficiency analysis is still done by the strong line manager. This means that newcomers could lose clearness about their corresponding roles as well as purposes particularly as populated line reporting does not maintain them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles although it had been speculated that the latter would certainly take Krasnow's placement came as an impact to her spirits. Lewis may have been qualified and suitable for the job yet the fact that Kransnow's separation would make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Job Instability: Fear as well as instability can be recognized as 2 significant concerns that Lewis would certainly be managing particularly as the merger has now be cancelled as well as two elderly execs of the advertising and marketing division would be leaving. The entire duty of the department would certainly be dropping on Lewis's shoulders who would certainly not simply be in charge of brining about a social change but would certainly also need to prove herself in her new duty.

Incompatible Management Design of Leader: Lewis's monitoring style and its incompatibility with the marketing division's role can additionally be seen as an OB obstacle specifically as she has actually been made use of to dealing with issues in the operations department where employees are educated to concentrate on processes and also get them right. The marketing division on the other hand can be seen as a team of individuals that are made use of to being nurtured by Krasnow that focused much more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental arguments between three divisions, advertising and marketing, merchandizing as well as operations respectively over the allocation of the advertising and marketing mix can be recognized as another OB concern. The marketing division does not share the same vision as the other two departments regarding the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and procedures departments do not agree over the advertising mix allotment amongst one another either.

Disintegration in Advertising Department: Fragmentation between the marketing and advertising divisions can be recognized as another OB problem which might need more interest. The fact that the marketing and advertising areas in the advertising department are disconnected is protecting against both divisions from getting from each various other's experience and knowledge. Integration of advertising and marketing with retailing and procedures would certainly come to be harder if the marketing division itself is degenerated which can be one more possible OB worry.

Concordia Casting Co Analysis

Various concepts have actually been used to explain the scenarios to obtain additional quality concerning the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers think that subordinates are passive as well as careless, have little aspiration and also withstand modification. The scenario at Concordia Casting Co is not completely following Concept X, it can be seen that brand-new hires are discovering this environment rather stressful which might ultimately lead to a higher inclination of the management in the direction of Theory X. Even while examining Lewis's monitoring style, concept X may have been ideal in the procedures department to some extent but the Marketing department would need reliance on Concept Y in order to get the creative thinking and originality from the groups.

Tuckman's Team effort Concept: As for Lewis's issue concerning bringing consistency between the marketing and advertising division is concerned, this would originally cause clash as gone over by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, throughout the initial phase of group advancement, people might not bond, as they are active discovering their area in the team. By integrating the marketing and advertising division's work, there might be the same initial separate which might cause the 2nd stage of 'storming' where the teams test each other. However, it is only during the third phase or 'norming' when they would collaborate to share concepts prior to the group can cause harmony in the fourth stage 'executing'.

Bridges' Shift Version: As per William Bridge's theory (appendix 4), individuals are fairly unpleasant with change, which is evident by the scenario at Concordia Casting Co The situation can be viewed as a regular program of life if is examined according to Bridge's theory where he describes that people undergo 3 stages of shift when they experience change. 'Ending, shedding as well as Letting go', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When people are presented with modification, they enter stage one therefore there may be emotions like despair, unpredictability, stress, rage, concern, rejection and also disorientation.The scenario at the advertising and marketing division of Concordia Casting Co is similar so Lewis can get comfy with the suggestion that it is not phenomenal behavior. In the second stage, there might be a demand to connect the gap in between the brand-new as well as old society so Lewis might have to face this ordeal when Krasnow leaves. There might be low morale as well as low efficiency at this stage which must not be taken as a setback. It is during this stage that Lewis will have to provide advice to the division so that they can find an orientation. It can be seen just how Krasnow has currently made this shift easier by making Lewis get associated with the division a year before his real separation. Based on Bridges' Design, phase three will certainly bring about visibility to knowing, High power and commitment as people will welcome the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has reviews the relevance of 'protection needs as being a reduced degree need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel safe and out of danger' is at the 2nd level of requirements. Prior to a staff member can be made to create emotionally, he requires to have his 'Physical 'as well as 'Security' needs met.

SWOT Analysis for Concordia Casting Co Case Study

Ramification of Analysis.

The OB analysis has actually taken a look at numerous theories to understand exactly how to manage the existing circumstance available. The following 3 options have been suggested to assist Lewis deal with the business difficulties in the advertising and marketing division. Each of these options has been proposed for easing the transition required to bring the advertising and marketing department according to the demands of the market and for making the social adjustment that would certainly adhere to as soon as the existing leader leaves.

Combination of marketing and advertising features. Separating Adverting and Manufacturing functions. Combination of Marketing with Operations.

Analysis of Alternatives.

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

The benefit of this approach is that it will certainly incorporate both features while decreasing the demand for hiring an added resource for advertising. Lewis would certainly be heading the advertising and marketing division and in any type of case her substitute would certainly be required for the current function that she is carrying out. The drawback of this alternative is that outside hiring may produce animosity from inner personnel who might be looking at the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Manufacturing: Given the competitive pressures and also excellent quality job required from the advertising agency, it is suggested that Lewis needs to allow the production device to be a separate feature from the advertising and marketing unit. Because many ad agency had these 2 features as separate devices, it makes more sense to adhere to the standard. Both features might be able to concentrate on their core triggers much more effectively. Nonetheless, the disadvantage of this approach would be that additional expenses would certainly need to be birthed for establishing different manufacturing features. A manufacturing head might have to be hired which might increase overheads for the company.

Assimilation of Advertising And Marketing with Workflows: Considering that Lewis is currently taking treatment of the advertising and marketing and operations departments concurrently; it makes sense to incorporate the two functions given that she has actually been effectively taking treatment of both ends. The truth that Lewis has to adjust her management style for the advertising division suggests that these two departments would be culturally diverse.


An evaluation of the three alternatives indicates that integration of marketing and procedures would not be a viable step due to the vast differences in between the 2 divisions despite the truth that presently Lewis is dealing with both. While separation of the manufacturing feature might have been a positive relocation for the advertising and marketing division, the truth that it would mean putting a third feature under Lewis's wing means this should be stayed clear of.

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

Advertising and Marketing functions would certainly be merged.

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

Manufacturing function will certainly remain component of marketing under marketing function.

Lewis will certainly separate herself from procedures.

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

Open up door policy and focus on cross department communication will be targeted at removing disharmony.

Contingency plan.

If the integration does not exercise as intended, a backup plan would certainly comply with which would certainly separate the production feature from the advertising and marketing feature to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing department without an SVP. In that case the manufacturing feature will absolutely be divided by putting it under an SVP manufacturing.