Lucas Wang Stop Loss Strategy Case Study Solution


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Lucas Wang Stop Loss Strategy Case Study Analysis

Background and Facts

Lucas Wang Stop Loss Strategy an office materials merchant for tiny as well as moderate sized businesses has just recently been associated with planning for a merger with its rival Home Deport, which has impacted effectiveness levels in departmentswith the senior supervisor associated with lawful difficulties put forth by the government Profession Payment. With the Advertising Head advancing the information of his separation from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the near future. With challenges in the type of a possible cultural change and also reduced employee morale, the company wants a complete reengineering initiative at the marketing division.

Issue Declaration

The prospective social change at the marketing department of Lucas Wang Stop Loss Strategy is enhancing unpredictability in the working environment causing different 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 impacting tactical choices since Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Trade Compensation's treatment at the same time. Offered the truth that the shop has a worldwide presence with branches in UK, USA, Canada as well as Germany, political consider each of these countries might be able to influence efficiency or strategic goals. Federal Profession Payment's antitrust fit versus the merger took up important time of the company's elderly monitoring suggesting that 'political' factors can have major ramifications for a worldwide company.

Economic Factors: Financial factors such as the introduction of small companies in the global situation suggest that Lucas Wang Stop Loss Strategy is growing in an environment where there is possible development of services. Truth that shop consumers are primarily looking for office materials for home offices suggests that the market has an increasing trend of business owners and also home based businesses.

Social factors: Social fads in the economic situation reveal that customers are seeking benefit as well as attractive costs. Market research shows how the customer for Lucas Wang Stop Loss Strategy lacks awareness about discovering solutions which can offer a combination of convenience and low costs.

Technological factors: Modern technology plays an important function in Lucas Wang Stop Loss Strategy's service technique especially as the company is piloting Innovation centers which would certainly provide innovation sales as well as assistance in the kind of memory upgrades, peripheral installments. (Summary of PEST in appendix 2).

OB Issues and Effects.

A number of underlying Business Actions concerns can be seen in Lucas Wang Stop Loss Strategy's case as highlighted in this section.

Uneasiness concerning cultural modification: There is concern regarding a social change that would take place once Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with most of the employee currently showing discontent over this prospective move. This expected adjustment has created tension in the workplace which has been paired with the previous stress and anxiety of preparing the firm for a potential merging with Home Deport.

Stressful Work Atmosphere for Newcomers: There is lack of personnel that can match the difficult setting of a hectic organization. Not only does this cause trouble in finding the ideal individuals, it places tension on new hires as can not withstand the speed and also pressure that the organization expects them to birth.

Double Reporting Lines: Newbies locate this business society troublesome as well as difficult to cope with particularly as dotted line connections are indicated to be weak generally as well as objective setup and efficiency evaluation is still done by the strong line manager. This means that newcomers can shed quality concerning their particular functions as well as objectives specifically as dotted line coverage does not maintain them in direct interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had actually been guessed that the latter would certainly take Krasnow's placement came as a strike to her spirits. Lewis might have been qualified as well as suitable for the work however the fact that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from solutions.

Anxiety & Task Insecurity: Fear and instability can be determined as two significant problems that Lewis would certainly be dealing with particularly as the merger has currently be terminated and two senior execs of the marketing division would certainly be leaving. The entire responsibility of the division would be falling on Lewis's shoulders that would not simply supervise of brining regarding a social change however would also need to confirm herself in her brand-new role.

Incompatible Management Design of Leader: Lewis's monitoring design as well as its incompatibility with the marketing division's function can also be seen as an OB obstacle especially as she has been used to taking care of problems in the procedures division where personnel are taught to concentrate on processes and also get them right. The advertising and marketing division on the other hand can be viewed as a group of individuals who are used to being supported by Krasnow that concentrated a lot more on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements between 3 divisions, marketing, merchandizing as well as procedures respectively over the allowance of the marketing mix can be recognized as an additional OB problem. The advertising and marketing division does not share the exact same vision as the other 2 divisions regarding the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing as well as operations departments do not concur over the advertising mix allotment among one another either.

Disintegration in Advertising Division: Disintegration in between the advertising and marketing divisions can be identified as one more OB problem which can need further focus. The truth that the marketing and advertising areas in the marketing division are separated is preventing both divisions from acquiring from each other's experience as well as knowledge. Assimilation of marketing with merchandising and also procedures would certainly end up being harder if the advertising and marketing division itself is broken down which can be one more possible OB problem.

Lucas Wang Stop Loss Strategy Analysis

Different concepts have actually been made use of to clarify the conditions to get additional clearness regarding the situation available.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors think that staffs are passive and careless, have little ambition and also stand up to change. The tough variation of this concept emphasized threat, limited controls, hazards and also punishments. In time it produces low productivity, subtle sabotage as well as rivalry (Offer, 2003). The situation at Lucas Wang Stop Loss Strategy is not totally adhering to Theory X, it can be seen that new hires are discovering this atmosphere instead stressful which might at some point lead to a higher disposition of the monitoring in the direction of Concept X. As per McGregor's supported sight, which he called Concept Y, the necessary job of the administration is to arrange business conditions so that individuals can attain their very own goals best by directing their efforts towards business rewards. If people find no fulfillment in their job, the management would certainly have little option however to count on theory X and also exterior control (Deal, 2003). Also while evaluating Lewis's monitoring style, theory X might have appropriated in the procedures division somewhat but the Marketing division would certainly require dependence on Concept Y to get the imagination and also originality from the groups.

Tuckman's Teamwork Theory: As far as Lewis's issue regarding bringing harmony between the advertising and advertising department is concerned, this would originally lead to contrast as reviewed by Bruce Tuckman in his 'Synergy Theory'. By integrating the advertising as well as marketing department's work, there may be the exact same preliminary separate which can lead to the 2nd stage of 'storming' where the groups challenge one another.

Bridges' Change Design: According To William Bridge's concept (appendix 4), people are fairly unpleasant with adjustment, which is evident by the circumstance at Lucas Wang Stop Loss Strategy The circumstance can be seen as a regular course of life if is researched based on Bridge's concept where he describes that individuals experience 3 stages of change when they experience modification. 'Closing, shedding and also Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people are presented with adjustment, they enter stage one and so there may be emotions like sadness, uncertainty, aggravation, anger, fear, rejection and disorientation.The scenario at the marketing division of Lucas Wang Stop Loss Strategy is similar so Lewis can obtain comfortable with the concept that it is not amazing actions. In the 2nd phase, there might be a requirement to bridge the gap in between the brand-new as well as old society so Lewis may have to face this challenge once Krasnow leaves. There may be low spirits and reduced efficiency at this stage which should not be taken as an obstacle. It is during this phase that Lewis will certainly need to give advice to the department to ensure that they can locate an orientation. It can be seen just how Krasnow has currently made this shift simpler by making Lewis get associated with the department a year prior to his actual departure. As per Bridges' Model, stage three will bring about openness to discovering, High energy and dedication as people will certainly welcome the adjustment (Bridges, 2004).

Maslow's Need power structure: The OB issue related to insecurity at the work environment has been caused firstly by the change in management and also secondly by the reality that the merger will no longer be launched. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has talks about the importance of 'safety requires as being a reduced degree need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel safe and also unharmed' goes to the 2nd level of requirements. Prior to an employee can be made to develop emotionally, he needs to have his 'Physiological 'and 'Safety' needs satisfied. This shows that unless the workers are made to feel protected regarding their current employment condition in Lucas Wang Stop Loss Strategy they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Lucas Wang Stop Loss Strategy Case Study

Effects of Analysis.

The OB analysis has checked out different theories to comprehend exactly how to handle the existing situation at hand. The complying with 3 options have been proposed to help Lewis deal with the organizational obstacles in the advertising division. Each of these alternatives has been recommended for alleviating the shift required to bring the advertising department according to the demands of the market as well as for making the social adjustment that would adhere to once the present leader leaves.

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

Analysis of Alternatives.

Combination of Advertising And Marketing & Advertising And Marketing Functions: The in-house marketing agency of Lucas Wang Stop Loss Strategy is currently toughness for the company in regards to conserving up on overheads connected to advertising and also promo. Given that no new recruitment has actually been done after Bridget Cole's departure with the reporting line being straight appointed to Krasnow for the advertising and marketing function, this is a beneficial chance for incorporating the advertising and marketing functions. Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merger days has experience in business-to-business marketing together with agency and retail marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to deal with both marketing and advertising features.

The advantage of this strategy is that it will certainly integrate the two functions while reducing the demand for hiring an additional resource for marketing. Lewis would be heading the marketing department and in any case her replacement would be required for the current function that she is performing. The downside of this option is that external hiring may bring about resentment from inner employees that might be eying the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Manufacturing: Offered the affordable stress and also top quality job needed from the ad agency, it is recommended that Lewis needs to permit the production unit to be a separate feature from the advertising unit. Given that a lot of ad agency had these 2 features as different devices, it makes even more feeling to comply with the standard. In addition to this, both functions might be able to focus on their core turns on extra efficiently. The negative aspect of this method would be that added expenses would have to be birthed for establishing up different production functions. A manufacturing head might have to be worked with which can enhance expenses for the organization.

Combination of Advertising with Procedures: Considering that Lewis is already looking after the advertising and operations departments at the same time; it makes good sense to incorporate the two functions because she has actually been effectively looking after both ends. The reality that both divisions already have major differences over allocation of sources recommends that this assimilation might have the ability to cause consistency especially as Lewis would be heading both ends.However there are various drawbacks of this action especially as it would place too much worry over Lewis's shoulders. The truth that Lewis has to adjust her administration style for the marketing department suggests that these two divisions would certainly be culturally varied. In addition to this, Lewis may not have the ability to apply one type of leadership style to both divisions which can result in inadequacy in either one of the two functions.


An examination of the 3 options suggests that integration of marketing and also procedures would certainly not be a viable step due to the vast distinctions between the 2 divisions despite the fact that presently Lewis is taking care of both. While separation of the production feature might have been a favorable step for the advertising department, the truth that it would mean placing a 3rd function under Lewis's wing indicates this ought to be stayed clear of.

Activity Plan.

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

Advertising and Marketing features 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 remain component of advertising under advertising and marketing feature.

Lewis will certainly separate herself from procedures.

An autonomous management style with staff member empowerment will be made use of in advertising department.

Open door plan as well as focus on cross departmental communication will be targeted at eliminating discord.

Backup strategy.

If the combination does not work out as planned, a contingency plan would adhere to which would certainly divide the manufacturing feature from the marketing feature to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing division without an SVP. Because case the manufacturing function will certainly be separated by putting it under an SVP manufacturing.