Global Thermostat Case Study Solution


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Global Thermostat Case Study Solution

Background and Facts

Global Thermostat a workplace materials merchant for little and medium sized organisations has actually lately been associated with preparing for a merging with its rival House Deport, which has actually affected effectiveness levels in departmentswith the senior manager involved in legal problems presented by the government Trade Payment. With the Marketing Head advancing the news of his departure from the company in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the near future. With challenges in the form of a potential social modification and low employee spirits, the company is in need of a full reengineering effort at the advertising department.

Problem Statement

The prospective cultural adjustment at the advertising and marketing division of Global Thermostat is enhancing uncertainty in the workplace resulting in numerous challenges for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting critical decisions given that Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Trade Commission's treatment in the process. Provided the fact that the shop has an international existence with branches in UK, USA, Canada as well as Germany, political factors in each of these nations may be able to influence performance or calculated objectives. Federal Trade Commission's antitrust fit against the merger took up useful time of the organization's elderly management recommending that 'political' factors can have severe implications for a global service.

Economic Factors: Financial factors such as the development of local business in the worldwide scenario suggest that Global Thermostat is prospering in an atmosphere where there is possible development of companies. Reality that store consumers are mostly looking for workplace products for residence offices recommends that the market has a climbing trend of entrepreneurs as well as residence based businesses.

Social factors: Social trends in the economy show that consumers are searching for comfort along with eye-catching rates. Marketing research demonstrates how the customer for Global Thermostat lacks understanding regarding discovering remedies which can supply a mix of ease and affordable.

Technical factors: Modern technology plays a crucial function in Global Thermostat's service technique particularly as the company is piloting Technology facilities which would certainly supply modern technology sales and also support in the form of memory upgrades, peripheral installments. (Recap of PARASITE in appendix 2).

OB Issues and Symptoms.

Several underlying Business Behavior concerns can be seen in Global Thermostat's case as highlighted in this area.

Worries about social change: There is worry concerning a social modification that would certainly happen as soon as Todd Krasnow leaves from his setting as the Exec Vice President of Advertising And Marketing with a lot of the staff members already revealing discontent over this possible move. This expected change has produced stress and anxiety in the workplace which has actually been combined with the past tension of preparing the company for a potential merger with House Deport.

Difficult Job Environment for Newcomers: There is scarcity of personnel that can match the stressful setting of a fast-paced organization. Not only does this lead to trouble in finding the best individuals, it places tension on brand-new hires as can not stand up to the pace and stress that the organization expects them to birth.

Double Reporting Lines: Newcomers locate this business culture difficult and also difficult to manage particularly as dotted line relationships are indicated to be weak generally and also unbiased setup as well as efficiency analysis is still done by the solid line supervisor. This suggests that beginners could lose clarity about their corresponding roles as well as objectives specifically as dotted line coverage does not maintain them in straight interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had been guessed that the last would take Krasnow's position came as an impact to her morale. Lewis might have been qualified and also ideal for the job however the reality that Kransnow's separation would make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Work Insecurity: Fear and also instability can be determined as two significant issues that Lewis would certainly be taking care of especially as the merger has actually now be cancelled and two elderly executives of the marketing division would be leaving. The entire duty of the division would certainly be falling on Lewis's shoulders that would not simply be in charge of brining regarding a cultural adjustment however would certainly additionally have to show herself in her brand-new duty.

Inappropriate Management Style of Leader: Lewis's monitoring design as well as its conflict with the marketing division's role can additionally be seen as an OB challenge particularly as she has been used to taking care of problems in the operations division where workers are shown to focus on procedures and obtain them. The marketing department on the other hand can be seen as a team of individuals who are made use of to being nurtured by Krasnow who concentrated a lot more on output than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between three departments, advertising and marketing, merchandizing and also operations specifically over the allotment of the advertising mix can be identified as one more OB problem. The advertising and marketing division does not share the exact same vision as the other two divisions concerning the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and operations divisions do not agree over the marketing mix appropriation amongst one an additional either.

Fragmentation in Advertising And Marketing Department: Disintegration in between the marketing and advertising departments can be recognized as one more OB issue which could require additional focus. The reality that the advertising and marketing sections in the marketing division are detached is protecting against both divisions from acquiring from each various other's experience as well as expertise. Combination of advertising and marketing with merchandising and also operations would certainly end up being harder if the advertising and marketing department itself is disintegrated which can be an additional potential OB problem.

Global Thermostat Analysis

Various theories have been utilized to clarify the situations to obtain additional clearness regarding the scenario available.

McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers think that juniors are easy and careless, have little passion and also withstand adjustment. The circumstance at Global Thermostat is not totally following Theory X, it can be seen that brand-new hires are discovering this setting rather difficult which may eventually lead to a greater disposition of the management towards Concept X. Even while examining Lewis's monitoring design, concept X may have been ideal in the operations department to some degree however the Marketing division would certainly require reliance on Theory Y in order to obtain the imagination as well as creativity from the groups.

Tuckman's Synergy Concept: As for Lewis's worry concerning bringing consistency between the marketing and advertising department is concerned, this would originally cause clash as talked about by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's theory shown in appendix 3, during the preliminary stage of group growth, individuals might not bond, as they are hectic locating their area in the team. By incorporating the advertising and marketing department's job, there may be the same preliminary separate which can bring about the 2nd stage of 'storming' where the teams challenge each other. It is just during the 3rd stage or 'norming' when they would certainly come with each other to share suggestions prior to the team can bring about synergy in the 4th stage 'doing'.

When individuals are offered with change, they get in phase one as well as so there may be feelings like unhappiness, uncertainty, disappointment, temper, concern, denial and also disorientation.The circumstance at the marketing department of Global Thermostat is comparable so Lewis can get comfortable with the suggestion that it is not amazing behavior. It is during this stage that Lewis will certainly have to provide advice to the department so that they can discover a feeling of direction. It can be seen just how Krasnow has actually currently made this change simpler by making Lewis obtain entailed in the division a year prior to his real separation.

Maslow's Need pecking order: The OB problem pertaining to insecurity at the office has been triggered first of all by the modification in administration and also secondly by the reality that the merger will certainly no more be initiated. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has goes over the significance of 'safety requires as being a lower degree need of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to feel safe and also untouched' is at the 2nd degree of needs. Prior to a staff member can be made to develop emotionally, he requires to have his 'Physiological 'and 'Security' needs satisfied. This indicates that unless the personnel are made to really feel safe about their existing employment status in Global Thermostat they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Global Thermostat Case Study

Ramification of Analysis.

The OB analysis has actually considered numerous concepts to recognize exactly how to cope with the present circumstance handy. The adhering to 3 alternatives have actually been recommended to help Lewis handle the business obstacles in the advertising department. Each of these alternatives has actually been proposed for relieving the shift required to bring the advertising and marketing division in accordance with the requirements of the marketplace as well as for making the cultural modification that would certainly comply with when the present leader leaves.

Combination of marketing and advertising features. Dividing Adverting and Manufacturing functions. Assimilation of Advertising with Procedures.

Examination of Alternatives.

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

The advantage of this strategy is that it will certainly integrate both functions while decreasing the requirement for working with an extra source for advertising and marketing. Along with this, Lewis would be heading the advertising department as well as in any case her replacement would be needed for the current role that she is carrying out. The drawback of this option is that external hiring might cause resentment from inner employees who might be eying the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting as well as Manufacturing: Provided the competitive pressures as well as high top quality work required from the marketing agency, it is suggested that Lewis needs to permit the manufacturing system to be a different feature from the marketing unit. Since many marketing firms had these 2 features as separate systems, it makes even more feeling to comply with the norm.

Combination of Marketing with Procedures: Since Lewis is already taking care of the advertising and marketing and also procedures divisions simultaneously; it makes sense to incorporate the two functions given that she has actually been successfully dealing with both ends. The truth that the two divisions currently have significant differences over allotment of resources suggests that this combination might be able to produce harmony specifically as Lewis would certainly be heading both ends.However there are various disadvantages of this step particularly as it would certainly place excessive problem over Lewis's shoulders. The fact that Lewis needs to adjust her administration style for the marketing department suggests that these 2 departments would be culturally diverse. In addition to this, Lewis might not have the ability to apply one sort of management design to both divisions which could lead to inefficiency in either one of the two features.


An examination of the 3 choices shows that combination of advertising and marketing as well as procedures would not be a feasible move due to the vast differences between the two divisions although that currently Lewis is dealing with both. While splitting up of the manufacturing function may have been a favorable relocation for the marketing division, the fact that it would indicate placing a 3rd function under Lewis's wing means this need to be prevented. The integration of the marketing division is the best alternative in regards to obtaining the ideal arise from the department. An action prepare for this choice is reviewed listed below.

Action Plan.

Lewis will take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would be merged.

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

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

Lewis will divide herself from procedures.

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

Open door plan and focus on cross department communication will certainly be focused on getting rid of disharmony.

Contingency plan.

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