Supply Chain Hubs In Global Humanitarian Logistics Case Study Analysis


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Supply Chain Hubs In Global Humanitarian Logistics Case Study Analysis

Background and Facts

Supply Chain Hubs In Global Humanitarian Logistics an office products retailer for small as well as medium sized businesses has just recently been involved in planning for a merging with its rival Residence Deport, which has actually impacted efficiency levels in departmentswith the elderly manager associated with legal difficulties presented by the federal Trade Commission. With the Advertising Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the duty in the near future. With difficulties in the type of a prospective cultural change and low worker morale, the organization needs a full reengineering effort at the advertising division.

Issue Statement

The potential cultural adjustment at the advertising department of Supply Chain Hubs In Global Humanitarian Logistics is raising uncertainty in the working environment bring about different challenges for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing strategic 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 truth that the shop has a worldwide presence with branches in UK, U.S.A., Canada and also Germany, political consider each of these nations may be able to influence performance or tactical objectives. Federal Profession Payment's antitrust suit against the merger used up beneficial time of the organization's senior management suggesting that 'political' factors can have major ramifications for an international business.

Economic Factors: Economic factors such as the appearance of local business in the international circumstance suggest that Supply Chain Hubs In Global Humanitarian Logistics is growing in an environment where there is prospective growth of organisations. Along with this, fact that store consumers are mostly seeking office supplies for office suggests that the market has an increasing pattern of entrepreneurs and also online organisations.

Social factors: Social patterns in the economy reveal that consumers are seeking ease as well as eye-catching costs. Market research shows how the consumer for Supply Chain Hubs In Global Humanitarian Logistics lacks understanding concerning locating services which can offer a mix of ease and low costs.

Technological factors: Innovation plays an essential duty in Supply Chain Hubs In Global Humanitarian Logistics's business strategy particularly as the organization is piloting Innovation centers which would certainly supply innovation sales as well as assistance in the form of memory upgrades, peripheral installments. (Recap of INSECT in appendix 2).

OB Issues and Effects.

A number of underlying Business Habits problems can be seen in Supply Chain Hubs In Global Humanitarian Logistics's case as highlighted in this section.

Apprehensions regarding social modification: There is uneasiness regarding a cultural modification that would certainly take place as soon as Todd Krasnow leaves from his position as the Executive Vice President of Marketing with most of the staff members already revealing unhappiness over this potential move. This predicted modification has created tension in the work environment which has actually been coupled with the past stress of preparing the firm for a potential merging with Home Deport.

Stressful Job Setting for Newcomers: There is lack of employees that can match the stressful setting of a fast-paced organization. Not only does this lead to trouble in locating the right people, it puts stress and anxiety on new hires as can not stand up to the speed as well as pressure that the company expects them to bear.

Dual Reporting Lines: Newcomers find this organizational society difficult as well as hard to deal with specifically as populated line connections are meant to be weak generally and objective setup and performance evaluation is still done by the solid line manager. This means that newcomers can lose quality about their particular roles and goals particularly as populated line coverage does not maintain them in direct interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had been speculated that the last would certainly take Krasnow's position came as a blow to her morale. Lewis may have been qualified and also appropriate for the work however the truth that Kransnow's separation would make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Job Insecurity: Anxiety and also instability can be recognized as 2 significant worries that Lewis would certainly be handling specifically as the merger has actually now be cancelled and also 2 senior executives of the marketing division would certainly be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining regarding a social change however would also have to confirm herself in her brand-new duty.

Inappropriate Administration Style of Leader: Lewis's administration design and also its conflict with the advertising division's duty can additionally be seen as an OB obstacle specifically as she has been utilized to managing issues in the operations division where workers are instructed to focus on processes as well as obtain them right. The advertising department on the other hand can be seen as a group of individuals who are used to being supported by Krasnow who concentrated much more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental arguments in between three divisions, advertising and marketing, merchandizing and procedures respectively over the allowance of the advertising and marketing mix can be identified as another OB concern. Although the advertising division does not share the same vision as the other two divisions regarding the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing as well as operations departments do not agree over the advertising mix allocation among one another either.

Fragmentation in Marketing Division: Fragmentation in between the marketing and advertising divisions can be recognized as an additional OB concern which might require more interest. The fact that the advertising and marketing areas in the advertising and marketing division are detached is preventing both departments from getting from each other's experience as well as experience. Assimilation of advertising with merchandising and also procedures would become more difficult if the advertising department itself is broken down which can be another potential OB problem.

Supply Chain Hubs In Global Humanitarian Logistics Analysis

Various theories have actually been used to clarify the situations to obtain further quality concerning the situation at hand.

McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most supervisors believe that staffs are passive and also careless, have little ambition and stand up to modification. The scenario at Supply Chain Hubs In Global Humanitarian Logistics is not entirely complying with Concept X, it can be seen that new hires are locating this atmosphere instead demanding which might at some point lead to a greater disposition of the administration in the direction of Theory X. Even while assessing Lewis's management style, concept X may have been appropriate in the operations division to some extent however the Advertising department would call for reliance on Theory Y in order to get the creative thinking as well as originality from the teams.

Tuckman's Team effort Theory: As far as Lewis's concern concerning bringing harmony between the marketing and also advertising department is concerned, this would initially lead to clash as talked about by Bruce Tuckman in his 'Teamwork Concept'. By integrating the advertising and also advertising department's work, there may be the very same first separate which could lead to the 2nd phase of 'storming' where the groups test one an additional.

Bridges' Transition Model: As per William Bridge's theory (appendix 4), individuals are fairly uncomfortable with modification, which is noticeable by the circumstance at Supply Chain Hubs In Global Humanitarian Logistics The scenario can be seen as a normal course of life if is examined based on Bridge's concept where he describes that individuals go through three phases of transition when they experience change. 'Closing, losing and also Letting go', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When people exist with adjustment, they go into stage one therefore there might be emotions like unhappiness, uncertainty, disappointment, rage, fear, rejection and also disorientation.The situation at the advertising and marketing division of Supply Chain Hubs In Global Humanitarian Logistics is similar so Lewis can get comfy with the idea that it is not amazing behavior. In the 2nd phase, there may be a demand to bridge the space between the brand-new and old culture so Lewis may need to encounter this challenge once Krasnow leaves. There might be low morale and low efficiency at this phase which ought to not be taken as a setback. It is during this stage that Lewis will have to offer assistance to the division to ensure that they can discover a sense of direction. It can be seen exactly how Krasnow has actually already made this change much easier by making Lewis get associated with the division a year before his actual departure. As per Bridges' Version, phase three will certainly produce visibility to learning, High energy and also dedication as people will certainly accept the modification (Bridges, 2004).

Maslow's Requirement pecking order: The OB problem pertaining to instability at the office has been caused to start with by the adjustment in management and secondly by the truth that the merger will certainly no longer be started. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has reviews the value of 'safety and security requires as being a lower level demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and also untouched' goes to the 2nd degree of demands. Before an employee can be made to establish psychologically, he needs to have his 'Physical 'and also 'Safety' requires satisfied. This shows that unless the personnel are made to feel secure concerning their current employment condition in Supply Chain Hubs In Global Humanitarian Logistics they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Supply Chain Hubs In Global Humanitarian Logistics Case Study

Effects of Analysis.

The OB analysis has actually checked out numerous theories to recognize just how to cope with the present situation handy. The following three options have actually been proposed to aid Lewis take care of the business obstacles in the advertising division. Each of these options has been suggested for reducing the change needed to bring the marketing division in accordance with the needs of the market as well as for making the social modification that would adhere to when the current leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting and also Manufacturing features. Combination of Marketing with Operations.

Examination of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merging days has knowledge in business-to-business marketing along with firm and also retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing and also advertising features.

The benefit of this strategy is that it will incorporate the two functions while decreasing the demand for employing an extra resource for advertising and marketing. In addition to this, Lewis would be heading the advertising department and all the same her substitute would be needed for the existing function that she is carrying out. The downside of this choice is that outside hiring might cause resentment from interior workers who may be considering the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Production: Given the competitive pressures and high top quality work called for from the marketing firm, it is suggested that Lewis ought to permit the manufacturing unit to be a separate function from the marketing unit. Because most marketing companies had these two functions as different devices, it makes even more sense to comply with the standard.

Combination of Marketing with Operations: Since Lewis is currently caring for the advertising as well as operations divisions at the same time; it makes good sense to integrate the two functions given that she has actually been successfully looking after both ends. The reality that both departments currently have major distinctions over allowance of resources recommends that this integration might have the ability to produce consistency particularly as Lewis would be heading both ends.However there are numerous disadvantages of this move particularly as it would put excessive worry over Lewis's shoulders. The truth that Lewis needs to adapt her management style for the advertising division recommends that these 2 departments would be culturally diverse. In addition to this, Lewis might not have the ability to use one kind of management design to both divisions which could result in inadequacy in either among both functions.


An examination of the three options indicates that integration of advertising and marketing and also procedures would not be a possible move due to the large distinctions between the 2 divisions in spite of the truth that currently Lewis is taking care of both. While separation of the production feature may have been a favorable step for the advertising and marketing division, the reality that it would certainly imply placing a third feature under Lewis's wing suggests this must be prevented.

Activity Plan.

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

Marketing and advertising features would be combined.

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

Manufacturing feature will remain component of marketing under advertising and marketing feature.

Lewis will separate herself from procedures.

A democratic leadership style with staff member empowerment will be used in advertising and marketing department.

Open door policy and focus on cross department communication will be focused on getting rid of discord.

Contingency strategy.

If the integration does not work out as intended, a contingency plan would certainly follow which would certainly separate the manufacturing feature from the advertising and marketing feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing department without an SVP. Because case the production function will definitely be separated by positioning it under an SVP manufacturing.