Kpmg Peat Marwick The Shadow Partner Case Study Analysis


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Kpmg Peat Marwick The Shadow Partner Case Study Analysis

Background and Facts

Kpmg Peat Marwick The Shadow Partner a workplace supplies store for little and also medium sized businesses has recently been associated with preparing for a merger with its competitor Home Deport, which has affected effectiveness levels in departmentswith the elderly supervisor associated with legal difficulties presented by the federal Profession Payment. With the Advertising and marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the role in the near future. With challenges in the type of a possible social adjustment and also low staff member spirits, the company requires a full reengineering initiative at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the advertising division of Kpmg Peat Marwick The Shadow Partner is increasing uncertainty in the workplace causing various challenges for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting strategic decisions considering that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Commission's intervention while doing so. Offered the truth that the shop has a worldwide presence with branches in UK, USA, Canada and also Germany, political factors in each of these countries may be able to influence efficiency or calculated objectives. Federal Trade Payment's antitrust match versus the merging took up important time of the organization's senior management suggesting that 'political' factors can have serious implications for a global company.

Economic Factors: Economic factors such as the introduction of small companies in the international scenario suggest that Kpmg Peat Marwick The Shadow Partner is growing in an environment where there is possible growth of businesses. Along with this, truth that store clients are mainly seeking office products for home offices recommends that the marketplace has an increasing fad of business owners and home based services.

Social factors: Social patterns in the economic situation show that customers are searching for comfort in addition to eye-catching rates. Market research demonstrates how the consumer for Kpmg Peat Marwick The Shadow Partner lacks awareness regarding finding services which can supply a mix of comfort as well as low costs.

Technological factors: Innovation plays an important role in Kpmg Peat Marwick The Shadow Partner's service technique particularly as the organization is piloting Modern technology centers which would supply technology sales and assistance in the type of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Organizational Actions concerns can be seen in Kpmg Peat Marwick The Shadow Partner's case as highlighted in this section.

Uneasiness about social change: There is uneasiness concerning a social change that would certainly take place when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with most of the team member already revealing discontent over this prospective action. This expected adjustment has actually developed stress and anxiety in the office which has been paired with the previous anxiety of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is lack of employees that can match the stressful atmosphere of a fast-paced organization. Not only does this result in difficulty in finding the best people, it places tension on new hires as can not endure the speed as well as stress that the organization expects them to bear.

Dual Coverage Lines: Newbies locate this business culture troublesome and also challenging to cope with particularly as populated line relationships are meant to be weak in general as well as unbiased setup and performance assessment is still done by the strong line manager. This indicates that beginners might shed quality regarding their corresponding roles and also objectives particularly as dotted line coverage does not maintain them in straight interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles despite the fact that it had been hypothesized that the latter would take Krasnow's position came as a blow to her morale. Lewis might have been qualified and suitable for the work however the fact that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the reason for Coles' resignation from services.

Concern & Task Instability: Fear and insecurity can be recognized as two major problems that Lewis would be dealing with particularly as the merging has actually now be cancelled and 2 elderly execs of the advertising and marketing department would certainly be leaving. The whole duty of the division would be dropping on Lewis's shoulders that would certainly not simply supervise of brining about a cultural change however would certainly likewise have to confirm herself in her new function.

Incompatible Administration Style of Leader: Lewis's monitoring design as well as its incompatibility with the advertising and marketing department's function can also be seen as an OB challenge specifically as she has been utilized to handling concerns in the procedures division where employees are instructed to concentrate on procedures and also obtain them. The advertising department on the various other hand can be viewed as a group of individuals who are utilized to being nurtured by Krasnow that concentrated more on result than processes.

Interdepartmental Disagreements: Interdepartmental differences in between three divisions, advertising, merchandizing as well as procedures respectively over the appropriation of the marketing mix can be recognized as another OB issue. The advertising department does not share the very same vision as the various other two departments regarding the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing as well as operations divisions do not concur over the advertising mix allotment amongst one another either.

Disintegration in Marketing Division: Fragmentation in between the advertising and marketing departments can be determined as another OB concern which might require more interest. The truth that the marketing and advertising sections in the marketing division are detached is stopping both departments from obtaining from each other's experience as well as expertise. Combination of advertising with merchandising and also procedures would certainly become harder if the advertising and marketing department itself is broken down which can be an additional prospective OB concern.

Kpmg Peat Marwick The Shadow Partner Analysis

Numerous concepts have actually been made use of to discuss the conditions to get more clearness concerning the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers believe that subordinates are passive and also lazy, have little aspiration and resist change. The circumstance at Kpmg Peat Marwick The Shadow Partner is not entirely adhering to Theory X, it can be seen that brand-new hires are finding this setting rather difficult which might eventually lead to a greater inclination of the administration in the direction of Theory X. Even while assessing Lewis's administration style, concept X may have been appropriate in the operations department to some degree however the Advertising and marketing division would certainly require reliance on Concept Y in order to get the creativity as well as originality from the groups.

Tuckman's Synergy Theory: As much as Lewis's worry regarding bringing harmony in between the advertising as well as marketing division is concerned, this would at first lead to conflict as gone over by Bruce Tuckman in his 'Teamwork Concept'. By integrating the advertising as well as advertising and marketing department's work, there might be the same first detach which can lead to the 2nd phase of 'storming' where the groups test one another.

Bridges' Change Model: As per William Bridge's concept (appendix 4), individuals are quite unpleasant with adjustment, which is noticeable by the situation at Kpmg Peat Marwick The Shadow Partner The circumstance can be seen as a typical training course of life if is researched according to Bridge's concept where he discusses that individuals experience three stages of shift when they experience adjustment. 'End, losing and Letting go', The Neutral Zone and 'The New Starting' (Bridges, 2004). When individuals are presented with change, they go into stage one and so there may be feelings like unhappiness, unpredictability, stress, temper, concern, denial and also disorientation.The circumstance at the advertising department of Kpmg Peat Marwick The Shadow Partner is comparable so Lewis can get comfy with the idea that it is not remarkable actions. In the second phase, there may be a need to connect the void in between the new and also old society so Lewis may need to encounter this challenge when Krasnow leaves. There may be reduced morale as well as low efficiency at this phase which ought to not be taken as a trouble. It is during this phase that Lewis will certainly need to provide assistance to the division to make sure that they can discover an orientation. It can be seen just how Krasnow has already made this shift simpler by making Lewis get involved in the division a year before his actual separation. According to Bridges' Model, phase 3 will certainly produce visibility to learning, High energy and also dedication as individuals will welcome the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB issue related to instability at the work environment has actually been caused to start with by the modification in administration and second of all by the reality that the merging will no more be initiated. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has talks about the value of 'safety needs as being a reduced level requirement of a human for triggering inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to feel safe and secure as well as unharmed' goes to the 2nd degree of needs. Prior to a staff member can be made to develop emotionally, he needs to have his 'Physiological 'and also 'Security' requires met. This indicates that unless the personnel are made to really feel secure concerning their existing work status in Kpmg Peat Marwick The Shadow Partner they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Kpmg Peat Marwick The Shadow Partner Case Study

Effects of Analysis.

The OB analysis has actually considered different theories to understand exactly how to cope with the existing situation handy. The complying with 3 options have actually been suggested to assist Lewis take care of the business obstacles in the marketing department. Each of these alternatives has been recommended for reducing the change needed to bring the advertising department in accordance with the demands of the market and for making the cultural change that would follow once the existing leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and Manufacturing features. Integration of Marketing with Workflow.

Assessment of Alternatives.

Combination of Advertising And Marketing & Marketing Functions: The internal advertising company of Kpmg Peat Marwick The Shadow Partner is already stamina for the organization in regards to conserving up on overheads connected to advertising and marketing and promo. Because no brand-new recruitment has actually been done after Bridget Cole's departure with the coverage line being directly assigned to Krasnow for the advertising function, this is a beneficial chance for integrating the marketing and advertising features. Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merger days has knowledge in business-to-business advertising and marketing in addition to company as well as retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to manage both advertising and marketing features.

The advantage of this approach is that it will certainly integrate the two functions while decreasing the requirement for working with an extra source for marketing. In addition to this, Lewis would be heading the marketing department and all the same her replacement would be needed for the existing duty that she is doing. The drawback of this choice is that outside hiring might cause bitterness from internal personnel that may be considering the setting of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and also Manufacturing: Offered the affordable stress and high top quality job needed from the advertising and marketing firm, it is advised that Lewis must enable the manufacturing system to be a different feature from the marketing system. Since many advertising and marketing firms had these two functions as separate units, it makes even more sense to follow the norm.

Combination of Advertising with Workflows: Given that Lewis is already caring for the advertising as well as operations departments simultaneously; it makes sense to incorporate the two functions given that she has been efficiently taking care of both ends. The reality that the two departments already have major distinctions over appropriation of sources suggests that this assimilation may be able to bring about consistency particularly as Lewis would be heading both ends.However there are different disadvantages of this relocation especially as it would certainly put too much burden over Lewis's shoulders. The fact that Lewis needs to adjust her monitoring style for the marketing division suggests that these two departments would certainly be culturally varied. In addition to this, Lewis may not be able to apply one kind of leadership design to both divisions which can lead to inadequacy in either among the two functions.


An assessment of the 3 options indicates that combination of advertising and marketing and also procedures would certainly not be a practical action due to the large distinctions between the two departments despite the fact that presently Lewis is taking care of both. While splitting up of the manufacturing function may have been a positive step for the advertising and marketing department, the reality that it would imply putting a third function under Lewis's wing suggests this need to be prevented.

Activity Plan.
Lewis will take control of the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would be merged.

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

Manufacturing feature will certainly remain part of advertising under advertising function.

Lewis will divide herself from procedures.

A democratic management design with staff member empowerment will certainly be made use of in marketing department.

Open up door plan and emphasis on cross departmental interaction will be aimed at removing disharmony.

Backup strategy.

If the assimilation does not work out as intended, a backup strategy would follow which would separate the production function from the advertising and marketing function to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing department without an SVP. In that case the production function will definitely be separated by positioning it under an SVP production.