Jeanne Lewis at Steples

Harvard Business naturalize 9-400-065 Rev. July 24, 2000 Jeanne Lewis at Staples, Inc. (A) (Ab disembarrassged) op YO INC Six months from now, on February 1, 1998, Jeanne Lewis (HBS 92) would become the senior debility prexy of marketing at Staples, Inc. (Staples), a nationwide office supplies superstore. After 10 months working side by side with Todd Krasnow, the current executive ungodliness president of marketing, Lewis was becoming familiar with the department. Her initial assessment led her to rarity if the departments operating style was suited to evolving private-enterprise(a) realities.As KrasnoWs heir apparent, Lewis anted to be winding in shaping the departments priorities for the upcoming year. The strategic planning process traditionally began around this time in August, and Lewis wondered if the time to start taking feat had arrived. Thus far, 1997 had been a trying year for the ships comp some(prenominal) the Federal trade in Commission had challenged Staples proposed fusion with Office Depot, and the two companies had recently abandoned 10 months of merger efforts.At that time, Chairman and CEO tomcat Stemberg reaffirmed his commitment that Staples would advance from a $5 billion company to a $10 billion company by the turn of the century. Staples not only had to grow bigger, it also had to grow better, as analysts had become accustomed to the companys 14 consecutive quarters of earnings-per-share produce in excess of 30%. The theme of the upcoming year was double strong growth and more effective execution. c Lewis believed that Stembergs pronouncement to play for the silver lining in the failed merger and to take to heart the lessons of the merger could serve as a call to action for the marketing department. Marketing, which served as both an architect and driver of the set, would play a critical determination in Staples continued success. Lewis k sassy that Staples could survive only if it was watchful to consume rid of outm oded ideas and replace them with new onesa philosophy shared by Krasnow. But Lewis also knew that it could be trigntening to give up the ideas that nad make the company successful.Furthermore, the marketing staff was understandably apprehensive about KrasnoWs plan departure, and many were already mourning his loss. Lewis explained No While the merger distractions were red on, things that maybe should have been dealt with, werent. Now, I wanted to make it clear that a new person was coming on oard in this area, and fgure out how we could issue forth back to business. We needed to refocus on building our business, because it was as competitive as ever, and we had lost a couple of beats in a few marketing areas while busy with the merger.We were at a move point in the marketing department, as opposed to being big past it. Because of the confluence of external events as well as our profess internal complexity, if we didnt change, then I was concerned it would start to show in the end in sales. Research Associate Jennifer M. Suesse prepared this case under the lapse of Professor Linda A. Hill as the basis for class discussion kind of than to illustrate either effective or ineffective handling of an administrative situation. It is an abridged version of an earlier case, Jeanne Lewis at Staples, Inc. (A), HBS No. 499-041, prepared by Research Associate Kristin C.Doughty under the supervision of Professor Linda A. Hill. Some name calling have been disguised. Copyright 2000 by the President and Fellows of Harvard College. 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This document is trustworthy for use only by Harutyun Gevorgyan at HE OTHER until November 2014. write or posting is an infringement of copyright. emailprotected harvard. edu or 617. 783. 7860. 400-065 Lewis knew the marketing departments role in ensuring success was twofold maintaining the delicate balance between meeting short-run financial objectives ith appropriate promotional tactics and building customer committal and retention witn an ettective marketing strategy and investigating modal values to leverage Staples brand and broaden its franchise.She also had specific questions about some of the departments structures, systems, and staffing. She was eager to get started, but recognized the risks of doing too much, too fast My style is that I want things to happen quickly. When I see thingseither a new problem someone has never had to fgure out before, or where theyVe Just had a different sense of timingI Jump in and say, heres the way to do it, and that makes hange happen quick ly. But that could limit my ability to work across and with the organization.I could end up spending too much time managing trim down and not enough time making broader, more expansive electric shock by managing across the organization as well. Staples Background (1985-1991)1 In 1985, Tom Stemberg (HBS 73), known for his marketing sa. n. y and innovations in the staid supermarket industry (as vice president of sales at Star Market, and president of First field Supermarket), pioneered the concept of the office supplies superstore. A Toys R Us of office supplies, Staples, the Office Superstore would return completeness, convenience, informed assistance as well as attractive prices overing everything from coffee tree to computer software for the small-business customer. 2 Initial customer research indicated that intimately small businesses did not track their total expenditures for office products nearly, nor were they aware that they were salaried on average 40% more for them than large corporations. To communicate the nest egg and increased convenience of its new way of procuring office supplies, Staples management was prepared to invest heavily in marketing. Staples message would emphasize discounts and convenience, leaving customers drop from the hassles of dealing with long lines, order forms, and multiple suppliers.For the pivotal role of film director of marketing, Stemberg hired Todd Krasnow, a 28-year- old HBS graduate who had worked in marketing at Star Market with Stembergs new VP of operations. In the early days, Stembergs team of louvre (himself, Krasnow, CFO, VP of operations, VP of merchandising) each had their own primary spheres of responsibility, but they all worked very closely together, doing whatever it took to get the Job done. They began the mornings with a 700 0clock meeting, reconvened for a orking lunch, and broadly speaking worked through the evening until 1000 0clock.