Lucas Wang Stop Loss Strategy Case Study Help


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Lucas Wang Stop Loss Strategy Case Study Solution

Background and Facts

Lucas Wang Stop Loss Strategy a workplace materials seller for small and also average sized companies has actually just recently been associated with planning for a merger with its competitor Home Deport, which has affected effectiveness degrees in departmentswith the elderly supervisor involved in legal difficulties presented by the federal Trade Commission. With the Advertising Head putting forward 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 future. With obstacles in the kind of a prospective cultural modification as well as reduced employee morale, the organization is in need of a total reengineering initiative at the advertising and marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The prospective social adjustment at the advertising and marketing department of Lucas Wang Stop Loss Strategy is raising uncertainty in the workplace bring about numerous obstacles for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting critical choices because Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Trade Compensation's intervention while doing so. Given the fact that the store has a worldwide existence with branches in UK, USA, Canada as well as Germany, political consider each of these nations might have the ability to impact performance or calculated goals. Federal Profession Compensation's antitrust match versus the merger used up important time of the organization's senior administration suggesting that 'political' factors can have significant implications for an international company.

Economic Factors: Economic factors such as the emergence of small businesses in the global circumstance suggest that Lucas Wang Stop Loss Strategy is growing in a setting where there is possible development of organisations. Along with this, truth that shop consumers are mostly seeking workplace materials for home offices recommends that the marketplace has a rising trend of business owners and home services.

Social factors: Social patterns in the economic situation show that customers are looking for benefit in addition to appealing costs. Marketing research shows how the consumer for Lucas Wang Stop Loss Strategy does not have understanding regarding finding options which can provide a mix of ease and low costs.

Technical factors: Modern technology plays an essential function in Lucas Wang Stop Loss Strategy's business approach specifically as the organization is piloting Innovation facilities which would provide technology sales and also assistance in the type of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues and Symptoms.

Numerous underlying Business Habits concerns can be seen in Lucas Wang Stop Loss Strategy's case as highlighted in this section.

Uneasiness regarding social modification: There is uneasiness regarding a social change that would occur when Todd Krasnow leaves from his position as the Exec Vice President of Advertising with a lot of the team member already revealing unhappiness over this possible step. This expected change has actually produced tension in the office which has actually been coupled with the past anxiety of preparing the firm for a potential merger with House Deport.
Pest Analysis
Demanding Job Environment for Newcomers: There is scarcity of workers that can match the difficult setting of a hectic company. Not just does this bring about difficulty in discovering the right people, it puts anxiety on new hires as can not hold up against the rate and stress that the company expects them to birth.

Double Reporting Lines: Novices find this organizational culture difficult and also challenging to manage particularly as dotted line relationships are implied to be weak as a whole as well as objective setting as well as efficiency evaluation is still done by the strong line supervisor. This means that beginners might shed quality about their particular roles and objectives particularly as populated line coverage does not keep them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been guessed that the last would certainly take Krasnow's position came as a blow to her spirits. Lewis may have been capable and appropriate for the work however the fact that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.

Concern & Task Insecurity: Fear and also insecurity can be recognized as two significant issues that Lewis would certainly be managing specifically as the merger has currently be terminated as well as 2 senior execs of the marketing division would certainly be leaving. The entire obligation of the department would certainly be dropping on Lewis's shoulders that would not just be in charge of brining regarding a social modification yet would certainly likewise have to show herself in her brand-new function.

Incompatible Administration Design of Leader: Lewis's management design and its incompatibility with the advertising and marketing division's duty can also be seen as an OB obstacle particularly as she has been utilized to handling issues in the procedures division where employees are instructed to focus on procedures and obtain them right. The advertising department on the various other hand can be viewed as a team of people that are made use of to being nurtured by Krasnow who focused extra on result than procedures.

Interdepartmental Arguments: Interdepartmental disagreements between three departments, marketing, merchandizing and also procedures respectively over the allocation of the advertising and marketing mix can be identified as an additional OB problem. Although the advertising department does not share the very same vision as the various other two departments relating to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and operations departments do not agree over the advertising and marketing mix allotment amongst one another either.

Fragmentation in Advertising And Marketing Division: Disintegration between the marketing and advertising divisions can be determined as an additional OB concern which could require additional interest. The fact that the advertising and marketing sections in the advertising department are disconnected is stopping both departments from obtaining from each various other's experience as well as know-how. Assimilation of marketing with retailing and also operations would become harder if the advertising division itself is degenerated which can be an additional possible OB worry.

Lucas Wang Stop Loss Strategy Analysis

Numerous concepts have actually been utilized to clarify the circumstances to obtain further clearness regarding the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many supervisors think that subordinates are easy and also lazy, have little passion and also stand up to change. The difficult version of this concept stressed threat, tight controls, hazards as well as punishments. With time it generates reduced efficiency, refined sabotage as well as competition (Deal, 2003). Although the scenario at Lucas Wang Stop Loss Strategy is not entirely following Concept X, it can be seen that brand-new hires are finding this atmosphere instead demanding which may eventually lead to a better disposition of the management in the direction of Concept X. According to McGregor's supported sight, which he called Concept Y, the crucial job of the management is to arrange organizational conditions to ensure that people can achieve their own goals best by routing their initiatives in the direction of business rewards. If people locate no contentment in their job, the monitoring would certainly have little selection yet to rely upon theory X and also outside control (Deal, 2003). Even while evaluating Lewis's administration design, theory X may have appropriated in the procedures department to some extent yet the Marketing department would certainly need dependence on Concept Y so as to get the creative thinking and also originality from the teams.

Tuckman's Team effort Theory: Regarding Lewis's problem concerning bringing consistency in between the marketing and advertising department is worried, this would at first cause clash as reviewed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's theory shown in appendix 3, throughout the initial stage of team growth, individuals may not bond, as they are active discovering their area in the group. By combining the marketing and advertising division's job, there may be the same preliminary separate which can cause the 2nd stage of 'storming' where the groups test one another. It is only throughout the 3rd stage or 'norming' when they would certainly come with each other to share suggestions before the group can bring around harmony in the 4th stage 'performing'.

When individuals are presented with adjustment, they get in stage one and so there might be emotions like unhappiness, uncertainty, aggravation, temper, fear, denial and also disorientation.The circumstance at the advertising division of Lucas Wang Stop Loss Strategy is similar so Lewis can get comfy with the concept that it is not amazing actions. It is throughout this phase that Lewis will certainly have to give advice to the department so that they can discover a feeling of direction. It can be seen how Krasnow has actually currently made this shift simpler by making Lewis obtain involved in the department a year prior to his actual separation.
Vrio Analysis
Maslow's Need power structure: The OB concern pertaining to instability at the office has been caused to start with by the change in management as well as secondly by the reality that the merger will certainly no longer be started. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has discusses the significance of 'protection requires as being a reduced degree requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel safe and unharmed' goes to the second degree of requirements. Before a staff member can be made to create emotionally, he requires to have his 'Physiological 'as well as 'Security' needs met. This shows that unless the workers are made to feel protected regarding their existing employment status in Lucas Wang Stop Loss Strategy they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Lucas Wang Stop Loss Strategy Case Study

Effects of Analysis.

The OB analysis has actually checked out numerous concepts to understand exactly how to handle the existing circumstance at hand. The complying with three options have actually been proposed to aid Lewis deal with the organizational obstacles in the advertising and marketing division. Each of these choices has been proposed for relieving the change needed to bring the advertising division in accordance with the needs of the marketplace and also for making the social change that would certainly adhere to when the existing leader leaves.

Assimilation of advertising and marketing features. Separating Adverting and also Production functions. Assimilation of Advertising with Workflow.

Analysis of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis during the earlier merging days has proficiency in business-to-business advertising along with company and retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both marketing and marketing functions.

The advantage of this strategy is that it will incorporate both functions while decreasing the demand for working with an additional resource for advertising and marketing. Lewis would be heading the marketing division as well as in any type of case her substitute would certainly be required for the present duty that she is performing. The negative aspect of this choice is that exterior hiring may produce bitterness from interior personnel that may be eying the placement of EVP after Lewis takes over Krasnow's position.

Dividing Adverting as well as Production: Provided the competitive pressures and high top quality work called for from the marketing company, it is recommended that Lewis must enable the production unit to be a separate feature from the advertising and marketing unit. Because most advertising and marketing firms had these 2 functions as separate devices, it makes even more feeling to adhere to the norm.

Combination of Advertising And Marketing with Procedures: Because Lewis is currently looking after the marketing and also procedures departments simultaneously; it makes sense to integrate both features given that she has actually been successfully dealing with both ends. The fact that both departments currently have significant distinctions over appropriation of sources recommends that this integration might be able to bring about consistency particularly as Lewis would certainly be heading both ends.However there are numerous downsides of this action particularly as it would place excessive concern over Lewis's shoulders. The truth that Lewis has to adjust her administration style for the advertising and marketing division recommends that these two divisions would certainly be culturally varied. Lewis might not be able to apply one kind of leadership style to both divisions which can result in ineffectiveness in either one of the two functions.


An evaluation of the three options shows that integration of marketing and also procedures would certainly not be a practical relocation because of the substantial distinctions in between both departments despite the fact that presently Lewis is taking care of both. While separation of the production function might have been a beneficial move for the advertising department, the fact that it would imply placing a 3rd feature under Lewis's wing implies this must be stayed clear of as well. The integration of the advertising and marketing division is the very best choice in regards to obtaining the ideal arise from the division. An activity prepare for this alternative is gone over listed below.

Action Strategy.
Lewis will certainly take over the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

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

Manufacturing function will certainly continue to be part of advertising under advertising feature.

Lewis will separate herself from operations.

A democratic leadership design with staff member empowerment will certainly be utilized in advertising department.

Open door plan and also emphasis on cross departmental interaction will certainly be targeted at removing disharmony.

Contingency plan.

If the assimilation does not work out as prepared, a backup plan would certainly comply with which would certainly divide the manufacturing feature from the advertising and marketing function to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the manufacturing function will most definitely be separated by positioning it under an SVP production.