Jeanne Lewis at Steples

Harvard phone line naturalize 9-400-065 Rev. July 24, 2000 Jeanne Lewis at Staples, Inc. (A) (Abridged) op YO INC Six months from now, on February 1, 1998, Jeanne Lewis (HBS 92) would arrive the senior sin pre locationnt of merchandise at Staples, Inc. (Staples), a nationwide emplacement supplies superstore. After 10 months working side by side with Todd Krasnow, the current administrator vice president of marketing, Lewis was becoming healthful-known(prenominal) with the department. Her initial assessment led her to respect if the departments operating style was suited to evolving warlike realities.As KrasnoWs heir apparent, Lewis anted to be involved in shaping the departments priorities for the future year. The strategic ca-caulation process traditionally began around this fourth dimension in August, and Lewis wondered if the time to start taking action had arrived. Thus far, 1997 had been a hard year for the high society the Federal patronageing Commission had challenged Staples proposed amalgamation with Office Depot, and the devil companies had recently abandoned 10 months of spinal fusion efforts.At that time, Chairman and CEO Tom Stemberg reaffirmed his load that Staples would bristle from a $5 one million million company to a $10 gazillion company by the turn of the century. Staples non sole(prenominal) had to grow bigger, it excessively had to grow better, as analysts had become accustomed to the companys 14 consecutive quarters of earnings-per-share development in excess of 30%. The theme of the upcoming year was twofold strong growth and much effective execution. c Lewis believed that Stembergs obiter dictum to look for the silver lining in the failed spinal fusion and to take to heart the lessons of the merger could serve as a call option to action for the marketing department. marting, which served as two an architect and driver of the brand, would play a critical fibre in Staples continue success. Lewis k bran-n ew that Staples could survive only if it was ready to outsmart rid of outmoded ideas and replace them with new onesa philosophy shared by Krasnow. only if Lewis also knew that it could be trigntening to tump over up the ideas that nad made the company successful.Furthermore, the marketing staff was lowstandably disquieted about KrasnoWs planned departure, and many were already mourning his loss. Lewis explained No While the merger distractions were going 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 get back to business. We needed to refocus on edifice our business, because it was as competitive as ever, and we had befuddled a couple of beats in a few marketing areas term busy with the merger.We were at a crook point in the marketing department, as opposed to being long past(a) it. Because of the confluence of external events as well as our own intern al complexity, if we didnt change, indeed I was concerned it would start to maneuver eventually in sales. Research fit in Jennifer M. Suesse prepared this case under the oversight of Professor Linda A. Hill as the nucleotide for class discussion rather than to decorate either effective or idle handling of an administrative situation. It is an abridged fluctuation 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. 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Copying or posting is an misdemeanour of copyright. email&160protected harvard. edu or 617. 783. 7860. 400-065 Lewis knew the marketing departments role in ensuring success was twofold maintaining the refined balance between meeting short-term financial objectives ith appropriate promotional evasive action and building customer loyalty and storage witn an ettective marketing strategy and investigating ways to leverage Staples brand and broaden its franchise.She also had specific questions about some of the departments structures, systems, and staffing. She was overeager to get started, but recognized the risks of doing overly much, in addition fast My style is that I want things to happen quickly. When I chance on thingseither a new fuss someone has never had to fgure out bef ore, or where theyVe Just had a different star of timingI Jump in and say, heres the way to do it, and that makes hange happen quickly. But that could limit my ability 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 impact 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 virtuoso Market, and president of First National Supermarket), pioneered the fantasy of the portion supplies superstore. A Toys R Us of office supplies, Staples, the Office Superstore would provide completeness, whatchamacallit, informed tending as well as benignant prices overing everything from coffee to computer software for the small-business customer. 2 Initial customer research indicated that nigh small businesses did not track their a ggregate expenditures for office products tight, nor were they aware that they were paying on average 40% more for them than thumping corporations. To communicate the savings and increased convenience of its new way of procuring office supplies, Staples focus was prepared to invest heavily in marketing. Staples message would emphasize discounts and convenience, leaving customers broad from the hassles of dealing with long lines, order forms, and nine-fold suppliers.For the pivotal role of director of marketing, Stemberg chartered 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 group 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 and through the evening until 1000 0clock.