Jeanne Lewis at Steples

Harvard Business school day 9-400-065 Rev. July 24, 2000 Jeanne Lewis at Staples, Inc. (A) (Ab dischargeged) op YO INC Six months from now, on February 1, 1998, Jeanne Lewis (HBS 92) would become the aged depravity president of marketing at Staples, Inc. (Staples), a nationwide office supplies superstore. subsequently 10 months working side by side with Todd Krasnow, the current executive vice president of marketing, Lewis was becoming familiar with the department. Her sign assessment led her to wonder if the departments direct style was suited to evolving competitive realities.As KrasnoWs heritor apparent, Lewis anted to be involved in establishment the departments priorities for the upcoming yr. The strategic planning play tradition on the wholey began around this date in August, and Lewis wondered if the cadence to start taking effect had arrived. Thus far, 1997 had been a trying twelvemonth for the guild the Federal Trade guardianship had challenged Staples propos ed nuclear fusion re run with Office Depot, and the two companies had lately abandoned 10 months of merger efforts.At that time, chair and CEO Tom Stemberg reaffirmed his commitment that Staples would puzzle from a $5 billion companionship to a $10 billion company by the turn of the century. Staples not still had to grow bigger, it also had to grow better, as analysts had become accustomed to the companys 14 ensuant quarters of earnings-per-share growth in tautological of 30%. The theme of the upcoming year was twof hoar strong growth and to a greater extent effective execution. c Lewis believed that Stembergs pronouncement to watch for the silver lining in the failed merger and to take to heart the lessons of the merger could coif as a call to action for the marketing department. Marketing, which served as both an couturier and driver of the tar cross, would play a unfavourable purpose in Staples continued conquest. Lewis k radical that Staples could drop dead only i f it was brisk to get rid of outmoded ideas and replace them with new onesa philosophy shared by Krasnow. exclusively Lewis also knew that it could be trigntening to give up the ideas that nad made the company successful.Furthermore, the marketing staff was understandably apprehensive close KrasnoWs planned departure, and many were already grief his loss. Lewis explained No While the merger distractions were handout on, things that maybe should train been dealt with, werent. Now, I cherished to make it clear that a new person was coming on oard in this area, and fgure out how we could get back to business. We call for 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 nimble with the merger.We were at a turning position in the marketing department, as contrasted to being dogged past it. Because of the multitude of external events as wellspring as our own internal complexity, if we didnt change, then I was concerned it would start to show in the end in gross revenue. Research Associate Jennifer M. Suesse prepared this case under the watchfulness of prof Linda A. Hill as the basis for strain discussion rather than to illustrate either effective or ineffective manipulation of an administrative situation. It is an abridged version of an to begin with 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 names have been disguised. Copyright 2000 by the President and Fellows of Harvard College. 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This enumeration is authorized 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 amid meeting short-term financial objectives ith divert promotional tactics and building guest loyalty and retention witn an ettective marketing dodging and gradeigating offices to leverage Staples brand and broaden its franchise.She also had specific questions close to some of the departments structures, systems, and staffing. She was eager to get started, moreover recognized the risks of doing too much, too turbulent My style is that I want things to kick downstairs quickly. When I see thingseither a new problem someone has never had to fgure out before, or where theyVe Just had a different sense o f timingI Jump in and say, heres the way to do it, and that makes hange happen quickly. But that could limit my major power to work across and with the organization.I could end up spending too much time managing down and not enough time making broader, more expansive violation by managing across the organization as well. Staples Background (1985-1991)1 In 1985, Tom Stemberg (HBS 73), know for his marketing sa. n. y and innovations in the decorous supermarket industry (as vice president of sales at Star Market, and president of front National Supermarket), pioneered the concept of the office supplies superstore. A Toys R Us of office supplies, Staples, the Office Superstore would fork over completeness, convenience, informed assistance as well as attractive prices overing everything from coffee to reckoner software for the small-business node. 2 Initial customer research indicated that most small businesses did not track their total expenditures for office products closely, no r were they cognizant that they were paying on average 40% more for them than large corporations. To communicate the savings and increased convenience of its new way of procuring office supplies, Staples management was prepared to invest heavily in marketing. Staples message would underline discounts and convenience, leaving customers free from the hassles of dealing with long lines, order forms, and multiple suppliers.For the pivotal role of 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 five (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 generally worked through the evening until 1000 0clock.