The Looming Shadow Of Illicit Trade On The Internet Case Study Solution


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The Looming Shadow Of Illicit Trade On The Internet Case Study Solution

Background and Facts

The Looming Shadow Of Illicit Trade On The Internet an office materials store for little as well as average sized organisations has actually lately been involved in planning for a merger with its competitor Home Deport, which has actually affected performance levels in departmentswith the senior supervisor associated with lawful complications presented by the federal Trade Payment. With the Advertising and marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the near future. With obstacles in the form of a potential social change and low worker spirits, the organization wants a complete reengineering effort at the marketing department.

Problem Declaration

The possible cultural change at the marketing division of The Looming Shadow Of Illicit Trade On The Internet is increasing uncertainty in the workplace resulting in numerous challenges 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 decisions given that Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Trade Commission's treatment in the process. Offered the fact that the shop has an international visibility with branches in UK, USA, Canada and Germany, political consider each of these nations might have the ability to affect efficiency or tactical goals. Federal Profession Commission's antitrust fit against the merger occupied valuable time of the company's elderly management suggesting that 'political' factors can have significant ramifications for a worldwide organisation.

Economic Factors: Financial factors such as the emergence of small businesses in the international scenario suggest that The Looming Shadow Of Illicit Trade On The Internet is growing in a setting where there is prospective growth of businesses. In addition to this, reality that store clients are mainly searching for office products for office recommends that the marketplace has a rising pattern of entrepreneurs and also home services.

Social factors: Social trends in the economy show that clients are seeking comfort as well as attractive costs. Marketing research shows how the consumer for The Looming Shadow Of Illicit Trade On The Internet does not have recognition concerning locating services which can supply a combination of ease and low costs.

Technological factors: Modern technology plays a crucial duty in The Looming Shadow Of Illicit Trade On The Internet's business technique especially as the company is piloting Technology facilities which would provide innovation sales as well as support in the type of memory upgrades, peripheral installments. (Summary of INSECT in appendix 2).

OB Issues and Manifestations.

A number of underlying Organizational Behavior problems can be seen in The Looming Shadow Of Illicit Trade On The Internet's case as highlighted in this section.

Concerns about cultural change: There is concern about a social adjustment that would certainly take place when Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with a lot of the personnel already showing discontent over this potential action. This predicted change has created stress in the workplace which has actually been paired with the previous stress of preparing the company for a prospective merging with House Deport.

Stressful Job Setting for Newcomers: There is scarcity of personnel that can match the stressful environment of a hectic organization. Not only does this lead to problem in finding the right people, it places stress and anxiety on brand-new hires as can not stand up to the speed as well as stress that the organization expects them to bear.

Dual Coverage Lines: Novices find this organizational society troublesome and also difficult to cope with particularly as dotted line partnerships are meant to be weaker in general as well as objective setting as well as performance examination is still done by the solid line manager. This suggests that newbies could lose quality concerning their corresponding functions and purposes particularly as dotted line coverage does not keep them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been guessed that the last would take Krasnow's setting came as a blow to her spirits. Lewis may have been capable and appropriate for the job but the reality that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Job Insecurity: Concern as well as instability can be identified as 2 significant problems that Lewis would be managing particularly as the merging has currently be cancelled as well as 2 elderly execs of the marketing department would certainly be leaving. The entire duty of the department would certainly be dropping on Lewis's shoulders who would not simply be in charge of brining concerning a social adjustment yet would certainly also need to show herself in her new role.

Incompatible Monitoring Design of Leader: Lewis's administration design and its incompatibility with the advertising and marketing department's function can additionally be seen as an OB obstacle especially as she has been used to handling issues in the operations division where personnel are instructed to concentrate on procedures as well as obtain them. The marketing division on the other hand can be viewed as a group of people that are made use of to being nurtured by Krasnow who concentrated a lot more on outcome than processes.

Interdepartmental Disagreements: Interdepartmental disputes in between 3 departments, marketing, merchandizing and also operations specifically over the allotment of the marketing mix can be recognized as one more OB worry. Although the advertising department does not share the very same vision as the various other two divisions relating to the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and procedures departments do not concur over the marketing mix appropriation amongst each other either.

Disintegration in Advertising And Marketing Department: Disintegration in between the advertising and marketing divisions can be determined as another OB issue which might need more interest. The fact that the advertising and marketing sections in the advertising and marketing division are detached is preventing both divisions from getting from each other's experience as well as know-how. Combination of advertising with merchandising as well as operations would certainly become harder if the advertising department itself is degenerated which can be one more prospective OB issue.

The Looming Shadow Of Illicit Trade On The Internet Analysis

Different concepts have been used to discuss the situations to obtain more clearness about the scenario available.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors think that juniors are easy and also lazy, have little aspiration as well as stand up to adjustment. The difficult version of this concept stressed coercion, limited controls, risks and punishments. In time it creates reduced efficiency, refined sabotage and also competition (Deal, 2003). The circumstance at The Looming Shadow Of Illicit Trade On The Internet is not completely adhering to Theory X, it can be seen that new hires are finding this setting rather stressful which may ultimately lead to a higher inclination of the administration in the direction of Theory X. Based on McGregor's supported sight, which he called Theory Y, the essential task of the administration is to arrange organizational problems so that individuals can attain their own goals best by guiding their initiatives in the direction of organizational incentives. If people find no complete satisfaction in their job, the monitoring would have little option however to depend on theory X and exterior control (Bargain, 2003). Also while examining Lewis's management style, theory X may have appropriated in the procedures division to some extent however the Advertising department would certainly call for dependence on Theory Y to get the imagination and originality from the groups.

Tuckman's Synergy Concept: Regarding Lewis's problem regarding bringing consistency between the advertising and marketing department is worried, this would at first lead to conflict as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, throughout the preliminary phase of group growth, people may not bond, as they are active discovering their area in the team. By incorporating the marketing and advertising department's job, there may be the same preliminary separate which can result in the 2nd phase of 'storming' where the groups challenge each other. It is only during the third phase or 'norming' when they would certainly come together to share ideas prior to the team can bring around harmony in the 4th stage 'doing'.

Bridges' Transition Version: Based On William Bridge's theory (appendix 4), people are fairly unpleasant with change, which is obvious by the circumstance at The Looming Shadow Of Illicit Trade On The Internet The scenario can be viewed as a typical training course of life if is researched as per Bridge's concept where he discusses that individuals go through 3 phases of transition when they experience change. 'Ending, losing and Letting go', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they get in phase one and so there may be feelings like despair, unpredictability, disappointment, temper, worry, rejection as well as disorientation.The situation at the marketing department of The Looming Shadow Of Illicit Trade On The Internet is comparable so Lewis can obtain comfy with the suggestion that it is not amazing actions. In the 2nd stage, there might be a need to link the gap in between the new and old culture so Lewis might need to face this challenge as soon as Krasnow leaves. There might be reduced morale and reduced efficiency at this stage which should not be taken as a problem. It is throughout this stage that Lewis will have to offer advice to the division to make sure that they can find an orientation. It can be seen just how Krasnow has currently made this change easier by making Lewis get involved in the division a year before his actual separation. According to Bridges' Design, phase three will produce visibility to knowing, High power and dedication as individuals will welcome the change (Bridges, 2004).

Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has talks about the value of 'protection requires as being a reduced degree requirement of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel protected and out of danger' is at the second level of requirements. Prior to an employee can be made to establish emotionally, he requires to have his 'Physiological 'as well as 'Security' needs met.

SWOT Analysis for The Looming Shadow Of Illicit Trade On The Internet Case Study

Ramification of Analysis.

The OB analysis has actually taken a look at different theories to recognize how to deal with the present circumstance at hand. The adhering to three options have actually been suggested to aid Lewis handle the business difficulties in the advertising and marketing department. Each of these options has actually been recommended for reducing the shift required to bring the advertising and marketing division in accordance with the needs of the market and for making the cultural modification that would follow when the present leader leaves.

Integration of marketing and advertising features. Separating Adverting and also Production functions. Combination of Advertising And Marketing with Operations.

Assessment of Alternatives.

Integration of Advertising And Marketing & Advertising And Marketing Functions: The internal marketing agency of The Looming Shadow Of Illicit Trade On The Internet is currently toughness for the company in regards to conserving up on overheads associated with advertising and marketing and promotion. Since no brand-new recruitment has actually been done after Bridget Cole's separation with the coverage line being directly assigned to Krasnow for the marketing function, this is a favorable chance for integrating the advertising and marketing functions. Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merging days has knowledge in business-to-business marketing together with firm and retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to take care of both marketing and advertising functions.

The benefit of this strategy is that it will incorporate the two features while decreasing the requirement for working with an added resource for marketing. In addition to this, Lewis would certainly be heading the advertising and marketing department as well as all the same her replacement would be required for the present duty that she is executing. The downside of this option is that outside hiring may cause resentment from internal workers who may be looking at the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Production: Provided the affordable stress as well as high quality job required from the advertising firm, it is suggested that Lewis must enable the production system to be a different function from the advertising unit. Considering that many advertising companies had these two functions as different devices, it makes more feeling to follow the standard.

Integration of Marketing with Procedures: Considering that Lewis is currently taking care of the advertising and marketing as well as operations divisions all at once; it makes sense to incorporate the 2 functions given that she has actually been efficiently taking treatment of both ends. The fact that Lewis has to adjust her management style for the advertising and marketing division recommends that these 2 divisions would be culturally diverse.


An assessment of the three alternatives suggests that assimilation of marketing and also operations would certainly not be a possible action due to the huge distinctions between the two departments in spite of the fact that presently Lewis is handling both. While splitting up of the manufacturing function might have been a desirable step for the advertising and marketing division, the reality that it would certainly indicate positioning a third feature under Lewis's wing means this should be prevented.

Action Plan.

Lewis will certainly take over the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

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

Production function will certainly stay component of advertising under marketing feature.

Lewis will divide herself from operations.

A democratic leadership style with worker empowerment will be used in marketing department.

Open door policy and emphasis on cross departmental communication will be focused on removing disharmony.

Contingency plan.

If the combination does not exercise as prepared, a backup strategy would adhere to which would divide the manufacturing function from the advertising function to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising division without an SVP. In that case the manufacturing feature will absolutely be separated by positioning it under an SVP production.