Leadership and Management: Resolving Conflicts in Two Case Studies

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Added on  2022/12/19

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Case Study
AI Summary
This case study analysis examines two distinct scenarios: Benjy's, a retailer grappling with online competition and conflicting values between its low-cost ethos and the CEO's focus on service; and Lakeland Wonders, a toy manufacturer facing internal resistance to its new CEO's strategic changes. The analysis addresses the core conflicts in each case, offering strategic advice to resolve the value clashes. For Benjy's, the solution involves a blend of online and offline strategies, emphasizing customer service and supplier relationships. For Lakeland Wonders, the analysis recommends the new CEO to engage with existing employees and get their buy-in. Furthermore, the analysis identifies key management competencies vital for 21st-century leaders in a VUCA (Volatile, Uncertain, Complex, and Ambiguous) world, including communication, clarity, adaptability, and people-centric leadership. The assignment provides a comprehensive overview of the challenges and potential solutions within the context of leadership, strategic management, and organizational change.
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CASE STUDY: 7
Can you win back online shoppers?
1) What conflicting values are evident in this case?
It is evident from the case that, there is a conflict in the way company should move forward considering
the competition it is facing from online electronic apps. It is seen that people come to Benjy’s to see the
product but prefer to buy online due to less pricing. The management is well concerned about it but
there is conflict seen in the solution it is seeking. Ben wanted to meet customer’s online pricing and
follow its low cost high volume ethos. However, the CEO; Mr. Faber had a different strategy. He wanted
to focus more on product mix and services. Due to this conflicting values, a solution couldn’t be reached.
Thus, strategic changes were majorly required for Benjy’s which resulting into conflicting values.
2) What advice would you give the Board of Benjy’s about a way forward that resolves the
values conflict?
It is important for Benjy’s to make a strategic decision immediately, or else it will keep on losing its
business. Therefore, in order to resolve value conflict, Benjy’s should first get a detailed analysis of the
internal and external environment. This can be done through SWOT analysis and PESTEL analysis.
Through SWOT Benjy’s will know its own internal strength and weaknesses along with opportunities
lying ahead. In adding, PESTEL will help Benjy’s to understand outside environment better and making
decision in combination with internal strengths (Rothaermel, 2016).
After analysis, the company should arrange a board meeting where a corporate level strategy should be
framed. Considering that the company already has its showrooms and good relations with its suppliers,
it can tie up directly with suppliers for low price but can promise them to pay early. This will create a
win-win situation for all. In this way, Ben’s strategy would also be implemented. On the other hand CEO
wants to focus on service side; this can be done by focusing and training employees on knowledge, in
store service and after sales service. This will enhance reputation of Benjy’s as it will be able to match up
price with online portals and in addition will be able to provide service too. Slowly, once customer trust
and base is developed, Benjy’s can decide to shift to small stores thereby saving cost and focus on online
sales.
It is suggested that in today’s situation, the company should partially shift to online business to build
customer base by matching prices to its online competitors. In addition, it can reduce its store size and
enhance its customer support though better service and knowledge.
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3. What management competencies do you believe this case highlights that are important for the 21st
century leader-manager in VUCA world?
The management competencies highlighted in this case that are important for 21st century are:
Communication efficiency – the manager should be able to communicate efficiently and clearly
what they exactly want to do and how.
Clarity – There should be clarity about the strategies manager wants to implement along with
background study for that strategy and clear plan for its implementation.
Different approach to problem solving – the manager needs to have a unique approach in
solving management problems. This is because in today’s world, a manager cannot use tried and
tested methods but should have uniqueness in solving problems to be more efficient (Kok,
Heuvel, & C, 2018).
People first leader – The leader-manager should first consider the impact of decisions on people
in the organization.
Fast learner – today the competition has increased and thus the leader should be able to learn
fast from the changing environment and take decisions accordingly.
Flexible – There is no sure strategy for success and thus, in today’s ever changing environment;
the leader needs to be flexible to change.
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Topic 11
Welcome aboard (But don’t change a thing)
1) What conflicting values are evident in this case?
The company Lakeland is into manufacturing of premium wooden toys. The company since its inception
was handled by a family legacy but now it has got a new CEO from outside; Ms. Cheryl Hailstrom. The
company has seen lots of success till now but the time is changing and company has got certain targets
by its board. So, it is important for Cheryl to get good accounts and increase sales in order to achieve
those targets. She has been associated with Lakeland indirectly helping them into toy innovation ideas.
She has clear vision of having offshore manufacturing and entering middle section market in order to
enhance company’s growth. However, the major conflict is that the already existing employees of
company are not ready to accept all her decisions and implement them resulting into Cheryl being
frustrated. Another conflict is that she is unable to convince employees that this is for benefit of
Lakeland itself.
There are employees working at Lakeland since years and they are experienced and have worked in
different organizational culture (Schein & Schein, 2016). However, Cheryl is an aggressive person and
wants to get her decisions implemented fast. Due to this conflict has also risen between Mark, Bary,
Jerry and Ned with Cheryl. Everyone wants to support her but they need time to make their plans.
2) What advice would you give Cheryl Hailstrom about a way forward that resolves the values
conflict?
Cheryl Hailstorm should understand that she is new to the company but others are working there
since long. There is a particular type of work culture they follow and thus in order to change the
organizational culture from slow moving to aggressive she needs to put lots of efforts. It is advisable
for Cheryl to first ask top level employees about their opinion on new strategies she wants to
implement. In this way she can know their view and understand if they would be supportive (Burke,
2017).
The second thing for Cheryl is to make employees understand the reasons behind her decisions. This
could be company’s growth in future or market competitiveness. The top level employees should be
convinced in order to implement new strategy. Cheryl should ask Mr. Mark about how to go ahead
with manufacturing problem; that is whether to manufacture in US itself or to outsource and its
feasibility. In addition, Cheryl should ask Barry, Elaise and Jerry on their opinion; problems arising
and solutions for the same. This way, with everyone’s support; she can make structural and
behavioral changes.
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3) What management competencies do you believe this case highlights that are important for the
21st century leader-manager in VUCA world?
Managing people – The leader should be able to manage people not just by authoritative
attitude but by taking their opinions into consideration and making them feel part of strategies
being framed.
Negotiation – The leader should be a strong negotiator which in this case Cheryl is not. Cheryl
tries to implement her strategies but is unable to have successful negotiation with top heads of
company to get their support.
Co-coordinating with others – Previously leaders could just send information to employees but
today the leader should be able to co-ordinate with others. Cheryl failed to do this as one
organizational decision requires small strategic decisions in different departments (Deaton,
2018). All these decisions need to be co-ordinated. However, Cheryl is unable to develop that
co-ordination among different departments of the company and thus everyone was thinking
differently and was confuse.
References
Burke, W. W. (2017). Organization Change: Theory and Practice. SAGE Publications, Inc.
Deaton, A. V. (2018). VUCA Tools for a VUCA World: Developing Leaders and Teams for Sustainable
Results. DaVinci Resources.
Kok, J. (., Heuvel, V. d., & C, S. (2018). Leading in a VUCA World: Integrating Leadership, Discernment
and Spirituality. Springer.
Rothaermel, F. (2016). Strategic Management. McGraw-Hill Education.
Schein, E. H., & Schein, P. A. (2016). Organizational Culture and Leadership. Wiley.
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