From Imitation To Innovation Zongshen Industrial Group Case Study Solution


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From Imitation To Innovation Zongshen Industrial Group Case Study Analysis

Background and Facts

From Imitation To Innovation Zongshen Industrial Group a workplace products retailer for little and medium sized organisations has actually recently been involved in preparing for a merger with its rival Home Deport, which has actually influenced performance levels in departmentswith the senior manager involved in legal complications put forth by the federal Trade Commission. With the Advertising and marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the near future. With challenges in the form of a potential cultural modification and low employee spirits, the company wants a complete reengineering initiative at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The possible social adjustment at the marketing division of From Imitation To Innovation Zongshen Industrial Group is raising unpredictability in the working environment bring about numerous obstacles for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting critical choices given that Stapes Inc. had to desert its strategies of combining with Workplace Deport after the Federal Profession Commission's intervention at the same time. Provided the truth that the shop has a worldwide visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries might have the ability to impact efficiency or tactical objectives. Federal Trade Commission's antitrust match versus the merger took up valuable time of the company's elderly management recommending that 'political' factors can have severe ramifications for a global company.

Economic Factors: Economic factors such as the development of small companies in the international scenario recommend that From Imitation To Innovation Zongshen Industrial Group is growing in a setting where there is possible growth of businesses. Reality that shop consumers are mostly looking for workplace materials for home workplaces recommends that the market has an increasing trend of entrepreneurs and also residence based services.

Social factors: Social trends in the economy show that consumers are searching for comfort in addition to eye-catching rates. Marketing research shows how the customer for From Imitation To Innovation Zongshen Industrial Group lacks recognition about discovering remedies which can offer a combination of convenience and also inexpensive.

Technical factors: Modern technology plays an important duty in From Imitation To Innovation Zongshen Industrial Group's service strategy specifically as the company is piloting Technology facilities which would certainly offer technology sales as well as support in the form of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Business Actions issues can be seen in From Imitation To Innovation Zongshen Industrial Group's case as highlighted in this area.

Apprehensions regarding social modification: There is uneasiness about a cultural adjustment that would happen when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising with a lot of the team member currently revealing discontent over this possible move. This anticipated change has actually created anxiety in the workplace which has been combined with the previous anxiety of preparing the company for a possible merging with Residence Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is scarcity of personnel that can match the demanding environment of a busy organization. Not only does this lead to problem in finding the right people, it puts tension on new hires as can not hold up against the speed as well as pressure that the company expects them to birth.

Twin Reporting Lines: Newbies find this organizational culture cumbersome and difficult to deal with especially as populated line partnerships are indicated to be weaker generally and objective setup and efficiency examination is still done by the strong line manager. This suggests that beginners can lose clarity about their respective functions and also objectives specifically as populated line reporting does not keep them in direct communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had actually been hypothesized that the latter would certainly take Krasnow's placement came as a strike to her spirits. Lewis may have been capable and also ideal for the job yet the reality that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Worry & Job Instability: Anxiety and also instability can be recognized as 2 major worries that Lewis would be handling especially as the merger has actually currently be terminated as well as 2 senior executives of the marketing division would certainly be leaving. The entire duty of the department would be falling on Lewis's shoulders who would certainly not simply be in charge of brining about a social change yet would certainly likewise have to verify herself in her brand-new duty.

Incompatible Management Design of Leader: Lewis's administration design and also its incompatibility with the advertising department's duty can additionally be seen as an OB difficulty particularly as she has actually been made use of to taking care of problems in the operations division where workers are shown to concentrate on procedures and also obtain them. The advertising and marketing department on the other hand can be viewed as a group of people who are used to being nurtured by Krasnow who focused more on output than procedures.

Interdepartmental Disagreements: Interdepartmental differences between three divisions, marketing, merchandizing and also operations respectively over the allotment of the advertising and marketing mix can be identified as another OB issue. Although the advertising department does not share the same vision as the other 2 divisions concerning the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing as well as procedures departments do not agree over the advertising mix allotment amongst one another either.

Fragmentation in Advertising Division: Fragmentation in between the marketing and advertising departments can be identified as another OB concern which might need further interest. The reality that the marketing and advertising areas in the advertising division are disconnected is avoiding both departments from getting from each other's experience and competence. Assimilation of advertising with retailing and operations would come to be harder if the advertising and marketing department itself is broken down which can be an additional prospective OB concern.

From Imitation To Innovation Zongshen Industrial Group Analysis

Numerous theories have actually been made use of to clarify the scenarios to get more quality about the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors believe that staffs are easy as well as lazy, have little ambition and resist change. The situation at From Imitation To Innovation Zongshen Industrial Group is not completely following Concept X, it can be seen that new hires are finding this environment instead stressful which may at some point lead to a better inclination of the management towards Theory X. Also while analyzing Lewis's monitoring style, theory X might have been appropriate in the operations department to some degree yet the Advertising and marketing division would certainly require reliance on Theory Y in order to get the creativity and originality from the teams.

Tuckman's Synergy Concept: As far as Lewis's concern regarding bringing consistency between the advertising and advertising department is concerned, this would originally lead to conflict as discussed by Bruce Tuckman in his 'Team effort Concept'. By combining the marketing as well as advertising department's work, there may be the same first separate which could lead to the second stage of 'storming' where the teams test one an additional.

Bridges' Transition Design: As per William Bridge's concept (appendix 4), individuals are rather unpleasant with change, which is evident by the scenario at From Imitation To Innovation Zongshen Industrial Group The situation can be seen as a typical program of life if is examined based on Bridge's theory where he clarifies that people undergo 3 phases of change when they experience adjustment. 'End, shedding as well as Releasing', The Neutral Area and 'The New Starting' (Bridges, 2004). When individuals exist with modification, they go into phase one therefore there might be emotions like despair, unpredictability, frustration, anger, concern, denial as well as disorientation.The situation at the marketing department of From Imitation To Innovation Zongshen Industrial Group is comparable so Lewis can get comfortable with the concept that it is not extraordinary habits. In the 2nd stage, there may be a requirement to bridge the void in between the brand-new and also old society so Lewis might have to face this ordeal when Krasnow leaves. There may be low morale and reduced productivity at this stage which must not be taken as an obstacle. It is throughout this stage that Lewis will need to give advice to the division so that they can discover a sense of direction. It can be seen how Krasnow has already made this transition much easier by making Lewis obtain associated with the department a year prior to his actual departure. Based on Bridges' Model, stage 3 will certainly cause visibility to learning, High energy and also commitment as individuals will certainly welcome the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has reviews the importance of 'protection needs as being a lower level need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel safe and secure and out of danger' is at the 2nd degree of demands. Prior to an employee can be made to create psychologically, he requires to have his 'Physiological 'as well as 'Security' needs satisfied.

SWOT Analysis for From Imitation To Innovation Zongshen Industrial Group Case Study

Ramification of Analysis.

The OB analysis has looked at different theories to comprehend just how to handle the current scenario handy. The complying with 3 choices have actually been recommended to aid Lewis deal with the organizational challenges in the advertising division. Each of these choices has actually been proposed for easing the change needed to bring the advertising and marketing division according to the requirements of the market and also for making the cultural change that would comply with once the existing leader leaves.

Integration of advertising and marketing features. Separating Adverting and also Manufacturing features. Combination of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Assimilation of Advertising & Advertising And Marketing Functions: The in-house marketing firm of From Imitation To Innovation Zongshen Industrial Group is currently toughness for the organization in regards to conserving up on overheads connected to advertising and promotion. Because no brand-new recruitment has been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the advertising and marketing function, this is a positive opportunity for incorporating the marketing and advertising functions. Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merger days has experience in business-to-business marketing along with agency as well as retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing functions.

The advantage of this approach is that it will integrate both features while lowering the need for hiring an extra resource for advertising. In addition to this, Lewis would certainly be heading the marketing division as well as regardless her substitute would be required for the existing duty that she is doing. The drawback of this option is that external hiring may cause bitterness from inner workers that may be eying the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting as well as Manufacturing: Provided the affordable pressures and top quality work required from the ad agency, it is recommended that Lewis needs to allow the manufacturing device to be a different function from the marketing system. Because a lot of advertising agencies had these 2 features as separate systems, it makes more feeling to comply with the norm. In addition to this, both features may be able to concentrate on their core activates much more effectively. The downside of this method would be that extra costs would have to be borne for establishing up different manufacturing features. Along with this, a production head may have to be hired which could increase expenses for the organization.

Combination of Advertising with Procedures: Since Lewis is currently taking care of the advertising and procedures departments concurrently; it makes sense to integrate the two features since she has been successfully caring for both ends. The fact that the two departments currently have significant differences over allotment of resources suggests that this integration may be able to bring about harmony specifically as Lewis would be heading both ends.However there are different negative aspects of this move particularly as it would certainly put way too much worry over Lewis's shoulders. The truth that Lewis needs to adjust her administration style for the advertising division recommends that these two departments would certainly be culturally diverse. Along with this, Lewis might not be able to use one type of leadership style to both divisions which might result in inadequacy in either one of the two features.


An analysis of the 3 choices shows that integration of advertising and marketing and operations would not be a feasible action due to the substantial distinctions in between both departments despite the fact that currently Lewis is taking care of both. While separation of the manufacturing function may have been a desirable step for the advertising and marketing department, the fact that it would certainly indicate putting a 3rd feature under Lewis's wing suggests this must be avoided as well. The combination of the advertising and marketing division is the very best choice in regards to getting the optimal arise from the division. An activity prepare for this option is talked about listed below.

Activity Strategy.
Lewis will certainly take over the function of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Production function will continue to be component of advertising under advertising and marketing feature.

Lewis will certainly separate herself from procedures.

An autonomous leadership style with employee empowerment will be utilized in marketing division.

Open door policy and also focus on cross departmental communication will be focused on removing disharmony.

Contingency plan.

If the combination does not work out as intended, a contingency strategy would certainly comply with which would certainly separate the production feature from the marketing feature to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising department without an SVP. In that case the manufacturing function will most definitely be separated by placing it under an SVP production.