Lucas Wang Stop Loss Strategy Case Study Solution


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Lucas Wang Stop Loss Strategy Case Study Solution

Background and Facts

Lucas Wang Stop Loss Strategy a workplace supplies store for tiny as well as average sized companies has lately been involved in preparing for a merger with its competitor House Deport, which has actually influenced effectiveness levels in departmentswith the senior manager involved in lawful difficulties presented by the government Trade Compensation. With the Marketing Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the future. With difficulties in the type of a potential social modification and also reduced staff member morale, the organization needs a total reengineering initiative at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The potential cultural change at the marketing division of Lucas Wang Stop Loss Strategy is raising uncertainty in the working environment resulting in 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 significant role in influencing critical decisions considering that Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Profession Commission's treatment while doing so. Provided the fact that the store has an international existence with branches in UK, USA, Canada as well as Germany, political factors in each of these countries may be able to affect efficiency or critical objectives. Federal Trade Commission's antitrust match against the merging used up important time of the organization's elderly monitoring recommending that 'political' factors can have serious ramifications for an international company.

Economic Factors: Financial factors such as the appearance of small companies in the international situation suggest that Lucas Wang Stop Loss Strategy is thriving in a setting where there is possible development of companies. Along with this, reality that shop customers are primarily seeking workplace supplies for office suggests that the market has a rising fad of entrepreneurs and also home based services.

Social factors: Social trends in the economic climate reveal that consumers are seeking comfort in addition to eye-catching prices. Marketing research shows how the client for Lucas Wang Stop Loss Strategy does not have awareness regarding discovering remedies which can offer a combination of comfort and also affordable.

Technical factors: Modern technology plays a crucial duty in Lucas Wang Stop Loss Strategy's business method especially as the company is piloting Innovation facilities which would certainly supply technology sales as well as support in the type of memory upgrades, peripheral setups. (Recap of INSECT in appendix 2).

OB Issues as well as Effects.

Several underlying Organizational Behavior issues can be seen in Lucas Wang Stop Loss Strategy's case as highlighted in this section.

Apprehensions concerning social adjustment: There is uneasiness regarding a cultural change that would certainly take place as soon as Todd Krasnow leaves from his position as the Executive Vice President of Advertising with most of the personnel already revealing discontent over this prospective action. This anticipated change has created anxiety in the office which has actually been paired with the previous stress of preparing the firm for a potential merging with Home Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is lack of personnel that can match the demanding atmosphere of a hectic organization. Not just does this cause difficulty in finding the best individuals, it places stress on new hires as can not withstand the speed and pressure that the organization anticipates them to bear.

Dual Coverage Lines: Newcomers discover this organizational society cumbersome and also hard to deal with particularly as populated line connections are suggested to be weaker as a whole and objective setting as well as performance assessment is still done by the strong line supervisor. This means that newcomers might shed clarity regarding their corresponding roles as well as purposes especially as populated line reporting does not maintain them in straight communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had been guessed that the last would take Krasnow's position came as a strike to her spirits. Lewis might have been qualified and ideal for the task yet the reality that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Job Insecurity: Worry and insecurity can be identified as two significant problems that Lewis would certainly be managing especially as the merger has actually currently be terminated as well as two elderly executives of the marketing division would be leaving. The entire obligation of the department would certainly be falling on Lewis's shoulders who would certainly not just be in charge of brining about a cultural adjustment but would likewise have to verify herself in her brand-new duty.

Incompatible Monitoring Style of Leader: Lewis's administration design as well as its conflict with the advertising and marketing department's function can likewise be seen as an OB obstacle particularly as she has been used to managing issues in the procedures division where workers are educated to focus on procedures and also get them right. The marketing department on the various other hand can be seen as a team of individuals who are utilized to being nurtured by Krasnow who focused much more on result than processes.

Interdepartmental Disputes: Interdepartmental arguments between 3 divisions, advertising, merchandizing and also procedures respectively over the allotment of the advertising and marketing mix can be determined as another OB problem. The advertising and marketing division does not share the same vision as the other 2 departments regarding the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing as well as procedures departments do not agree over the advertising and marketing mix allowance among one another either.

Disintegration in Advertising Department: Disintegration between the advertising and marketing divisions can be determined as another OB concern which might require additional focus. The reality that the advertising and marketing areas in the advertising and marketing department are disconnected is stopping both departments from obtaining from each various other's experience as well as know-how. Assimilation of advertising and marketing with merchandising as well as operations would certainly become harder if the advertising department itself is broken down which can be another potential OB issue.

Lucas Wang Stop Loss Strategy Analysis

Numerous concepts have been made use of to discuss the conditions to obtain additional quality concerning the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that staffs are passive as well as careless, have little aspiration and also resist modification. The circumstance at Lucas Wang Stop Loss Strategy is not totally following Concept X, it can be seen that new hires are discovering this atmosphere instead difficult which might eventually lead to a higher disposition of the administration in the direction of Concept X. Even while evaluating Lewis's management style, concept X may have been suitable in the operations department to some degree but the Advertising and marketing division would certainly call for dependence on Concept Y in order to obtain the creativity and creativity from the groups.

Tuckman's Team effort Concept: As far as Lewis's worry concerning bringing harmony between the advertising and marketing and also advertising division is concerned, this would originally lead to conflict as gone over by Bruce Tuckman in his 'Teamwork Theory'. By incorporating the marketing and advertising and marketing department's work, there may be the exact same first detach which might lead to the second stage of 'storming' where the teams challenge one another.

Bridges' Transition Design: According To William Bridge's concept (appendix 4), individuals are fairly uneasy with change, which is noticeable by the situation at Lucas Wang Stop Loss Strategy The circumstance can be seen as a typical course of life if is examined according to Bridge's concept where he clarifies that individuals undergo three phases of transition when they experience adjustment. 'End, losing as well as Releasing', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When people are presented with change, they go into stage one therefore there might be feelings like despair, uncertainty, frustration, rage, worry, denial as well as disorientation.The scenario at the advertising and marketing department of Lucas Wang Stop Loss Strategy is comparable so Lewis can get comfortable with the suggestion that it is not phenomenal actions. In the 2nd phase, there may be a demand to bridge the space in between the new and old society so Lewis may need to face this experience as soon as Krasnow leaves. There might be reduced spirits and reduced efficiency at this stage which must not be taken as a setback. It is throughout this stage that Lewis will certainly have to give assistance to the department so that they can find a sense of direction. It can be seen exactly how Krasnow has actually already made this change simpler by making Lewis obtain associated with the division a year before his actual separation. According to Bridges' Version, stage 3 will certainly cause openness to knowing, High power as well as commitment as people will accept the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has discusses the significance of 'safety and security needs as being a reduced degree need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel protected as well as out of threat' is at the 2nd level of demands. Prior to a staff member can be made to establish emotionally, he requires to have his 'Physiological 'as well as 'Security' requires satisfied.

SWOT Analysis for Lucas Wang Stop Loss Strategy Case Study

Ramification of Analysis.

The OB analysis has taken a look at numerous concepts to recognize exactly how to deal with the current situation handy. The complying with three choices have been recommended to help Lewis take care of the organizational difficulties in the advertising and marketing department. Each of these choices has been proposed for alleviating the change needed to bring the advertising and marketing division in accordance with the requirements of the market and for making the social change that would certainly follow as soon as the present leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting as well as Production functions. Assimilation of Advertising And Marketing with Operations.

Analysis of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The in-house advertising agency of Lucas Wang Stop Loss Strategy is already stamina for the organization in terms of conserving up on overheads connected to marketing as well as promotion. Since no new employment has been done after Bridget Cole's departure with the coverage line being directly appointed to Krasnow for the advertising feature, this is a beneficial opportunity for incorporating the marketing and advertising features. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merger days has proficiency in business-to-business advertising and marketing together with agency as well as retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing features.

The benefit of this approach is that it will certainly incorporate both functions while decreasing the demand for hiring an extra resource for advertising and marketing. Lewis would be heading the advertising and marketing department and in any type of case her replacement would be needed for the present duty that she is doing. The negative aspect of this alternative is that exterior hiring may bring about bitterness from internal personnel that may be considering the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Manufacturing: Offered the competitive stress and also high top quality work called for from the marketing agency, it is suggested that Lewis needs to permit the production system to be a different function from the advertising and marketing unit. Considering that the majority of advertising and marketing firms had these two features as different devices, it makes even more sense to adhere to the standard.

Assimilation of Advertising with Operations: Since Lewis is already taking care of the marketing and also operations departments all at once; it makes sense to incorporate the two functions because she has been effectively taking treatment of both ends. The truth that Lewis has to adjust her management style for the advertising and marketing division suggests that these two departments would be culturally diverse.


An assessment of the 3 alternatives shows that combination of marketing as well as procedures would certainly not be a feasible step due to the vast distinctions between the two divisions despite the fact that presently Lewis is managing both. While splitting up of the manufacturing function may have been a favorable relocation for the advertising division, the reality that it would mean putting a third function under Lewis's wing indicates this need to be prevented also. The combination of the advertising department is the most effective choice in regards to getting the ideal arise from the department. An action plan for this choice is discussed listed below.

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

Marketing and advertising features would be merged.

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

Manufacturing function will continue to be part of advertising and marketing under advertising and marketing function.

Lewis will divide herself from operations.

An autonomous management style with staff member empowerment will be used in advertising division.

Open up door plan as well as focus on cross department communication will be focused on eliminating dissonance.

Contingency strategy.

If the integration does not work out as prepared, a backup strategy would certainly adhere to which would separate the production feature from the advertising and marketing feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising division without an SVP. In that case the manufacturing function will most definitely be separated by placing it under an SVP production.