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From Correlation To Causation Case Study Analysis

Background and Facts

From Correlation To Causation an office products merchant for small and medium sized companies has lately been involved in preparing for a merging with its competitor Home Deport, which has actually impacted efficiency degrees in departmentswith the senior manager associated with legal difficulties put forth by the government Profession Compensation. With the Advertising and marketing Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the future. With difficulties in the kind of a possible social change and reduced staff member morale, the company is in need of a total reengineering effort at the marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing division of From Correlation To Causation is raising uncertainty in the working environment bring about various challenges for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting calculated choices given that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Compensation's treatment in the process. Offered the truth that the shop has a worldwide existence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations might have the ability to affect efficiency or strategic objectives. Federal Profession Commission's antitrust fit versus the merging used up valuable time of the company's senior management suggesting that 'political' factors can have severe ramifications for an international service.

Economic Factors: Economic factors such as the introduction of small businesses in the worldwide scenario recommend that From Correlation To Causation is prospering in an environment where there is possible development of services. In addition to this, fact that shop customers are mostly looking for workplace supplies for office suggests that the marketplace has an increasing trend of entrepreneurs and home based companies.

Social factors: Social trends in the economic situation show that customers are searching for ease in addition to appealing prices. Marketing research demonstrates how the client for From Correlation To Causation lacks recognition about locating remedies which can provide a combination of ease and also inexpensive.

Technological factors: Innovation plays an important function in From Correlation To Causation's company technique particularly as the organization is piloting Innovation facilities which would provide modern technology sales and assistance in the kind of memory upgrades, outer installations. (Summary of INSECT in appendix 2).

OB Issues and Symptoms.

A number of underlying Organizational Behavior concerns can be seen in From Correlation To Causation's case as highlighted in this section.

Uneasiness regarding social change: There is concern concerning a social change that would certainly happen once Todd Krasnow leaves from his setting as the Exec Vice President of Advertising And Marketing with the majority of the employee currently revealing discontent over this potential relocation. This anticipated modification has produced anxiety in the work environment which has actually been combined with the past stress of preparing the firm for a prospective merging with House Deport.
Pest Analysis
Demanding Work Atmosphere for Newcomers: There is scarcity of workers that can match the difficult atmosphere of a fast-paced company. Not only does this bring about trouble in discovering the appropriate people, it puts stress on new hires as can not stand up to the speed as well as pressure that the company anticipates them to bear.

Twin Coverage Lines: Novices discover this business society troublesome as well as challenging to manage specifically as populated line partnerships are suggested to be weaker as a whole as well as objective setup and efficiency assessment is still done by the solid line manager. This indicates that newbies could lose clearness concerning their corresponding duties and goals specifically as populated line reporting does not keep them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had been guessed that the latter would certainly take Krasnow's placement came as an impact to her morale. Lewis might have been qualified and ideal for the task but the truth that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Fear & Task Instability: Concern as well as insecurity can be recognized as 2 major concerns that Lewis would certainly be taking care of especially as the merger has now be cancelled and also two senior execs of the advertising and marketing department would be leaving. The entire responsibility of the division would be falling on Lewis's shoulders that would not simply supervise of brining concerning a social change but would also need to prove herself in her brand-new duty.

Incompatible Management Design of Leader: Lewis's administration design and its incompatibility with the marketing division's role can additionally be seen as an OB difficulty particularly as she has actually been utilized to taking care of issues in the procedures department where employees are instructed to concentrate on processes and also obtain them right. 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 nurtured by Krasnow who focused more on output than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between 3 divisions, advertising and marketing, merchandizing as well as operations specifically over the allocation of the marketing mix can be identified as another OB worry. The advertising division does not share the same vision as the other two divisions regarding the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and procedures divisions do not agree over the marketing mix allotment among one an additional either.

Disintegration in Marketing Department: Fragmentation in between the advertising and marketing departments can be determined as an additional OB issue which can need further attention. The reality that the advertising and marketing areas in the marketing division are separated is stopping both divisions from acquiring from each various other's experience and knowledge. Assimilation of advertising and marketing with retailing as well as operations would become harder if the advertising and marketing division itself is broken down which can be one more possible OB worry.

From Correlation To Causation Analysis

Numerous theories have actually been utilized to explain the situations to obtain more clarity regarding the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers think that subordinates are easy as well as careless, have little ambition as well as stand up to adjustment. The circumstance at From Correlation To Causation is not entirely following Concept X, it can be seen that new hires are finding this atmosphere rather stressful which may ultimately lead to a greater inclination of the monitoring towards Concept X. Even while analyzing Lewis's management style, concept X may have been suitable in the procedures division to some degree but the Advertising division would call for reliance on Concept Y in order to get the imagination and creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's worry regarding bringing harmony between the marketing and also advertising department is concerned, this would originally lead to contrast as discussed by Bruce Tuckman in his 'Teamwork Theory'. By combining the advertising and advertising and marketing division's work, there might be the exact same initial disconnect which could lead to the second phase of 'storming' where the teams challenge one another.

Bridges' Transition Version: As per William Bridge's theory (appendix 4), people are fairly awkward with modification, which is noticeable by the situation at From Correlation To Causation The situation can be seen as a regular program of life if is studied based on Bridge's theory where he describes that individuals go through 3 phases of change when they experience modification. 'Closing, shedding and also Releasing', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When individuals are presented with modification, they get in stage one and so there might be feelings like sadness, unpredictability, disappointment, temper, worry, denial and also disorientation.The situation at the advertising and marketing department of From Correlation To Causation is similar so Lewis can obtain comfortable with the idea that it is not extraordinary behavior. In the second stage, there might be a need to connect the space in between the new as well as old society so Lewis might have to encounter this experience when Krasnow leaves. There might be reduced spirits and also low performance at this phase which ought to not be taken as an obstacle. It is during this phase that Lewis will need to offer advice to the department so that they can locate a sense of direction. It can be seen exactly how Krasnow has actually currently made this shift much easier by making Lewis obtain involved in the division a year prior to his actual departure. As per Bridges' Design, phase 3 will bring about openness to understanding, High power as well as commitment as people will embrace the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Demand hierarchy: The OB issue pertaining to instability at the office has been triggered to start with by the change in administration and secondly by the truth that the merger will no more be started. Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has talks about the importance of 'safety needs as being a reduced degree requirement of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the need to feel safe and secure and also unharmed' goes to the 2nd degree of needs. Before an employee can be made to establish emotionally, he requires to have his 'Physical 'and 'Safety' needs fulfilled. This shows that unless the personnel are made to really feel safe about their present employment condition in From Correlation To Causation they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for From Correlation To Causation Case Study

Effects of Analysis.

The OB analysis has considered different concepts to recognize exactly how to cope with the existing circumstance at hand. The following three alternatives have actually been proposed to help Lewis manage the business challenges in the marketing department. Each of these options has been proposed for alleviating the transition needed to bring the advertising and marketing division in accordance with the demands of the marketplace and also for making the social change that would certainly follow as soon as the present leader leaves.

Combination of marketing and advertising functions. Separating Adverting and also Production features. Assimilation of Marketing with Procedures.

Assessment of Alternatives.

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

The benefit of this strategy is that it will integrate both features while reducing the requirement for working with an additional source for advertising. Along with this, Lewis would be heading the advertising division and regardless her replacement would certainly be required for the current role that she is carrying out. The disadvantage of this option is that outside hiring might bring about resentment from inner workers who might be eying the setting of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and Manufacturing: Given the competitive pressures as well as high quality work needed from the advertising and marketing company, it is recommended that Lewis ought to allow the production device to be a different feature from the advertising device. Given that a lot of advertising firms had these 2 functions as different devices, it makes more feeling to comply with the norm.

Assimilation of Advertising with Workflows: Because Lewis is already taking treatment of the marketing as well as procedures departments concurrently; it makes feeling to integrate the two functions given that she has actually been effectively taking treatment of both ends. The truth that Lewis has to adapt her administration style for the marketing department suggests that these 2 departments would certainly be culturally diverse.


An analysis of the three options indicates that integration of advertising and marketing and also procedures would not be a feasible move because of the substantial differences between both divisions although that presently Lewis is dealing with both. While splitting up of the production function may have been a desirable relocation for the advertising and marketing department, the fact that it would certainly mean putting a 3rd feature under Lewis's wing suggests this must be prevented also. The combination of the advertising division is the very best alternative in regards to getting the optimal arise from the department. An action prepare for this option is talked about below.

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

Advertising and Marketing features would be combined.

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

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

Lewis will divide herself from operations.

An autonomous management style with worker empowerment will certainly be made use of in advertising and marketing department.

Open up door policy and also focus on cross department communication will certainly be aimed at getting rid of dissonance.

Contingency strategy.

If the assimilation does not work out as prepared, a contingency plan would certainly adhere to which would certainly divide the production feature from the advertising function to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising division without an SVP. In that case the production feature will definitely be divided by putting it under an SVP manufacturing.