BASED ON THE CASE STUDY PROVIDED,LIST 3 major OB issues, and 3 questions from a minor OB issue, that can be asked based on the case-based report.

Liu Yuan, a marketing major who graduated from university, was accepted into the Marketing Department of 'Perfect Diary,' a leading business in China's cosmetics industry. He was assigned to the Marketing Group 1 (MG1), which is responsible for the young skin line, following a one-month pre-job training period. Three months later, Liu Yuan was hired on a permanent basis as an assistant business manager, making him the youngest member of MG1. He was overjoyed and happy that his first job was with such an amazing organisation, which is the dream of many people. Today[DZ1] , he would begin[DZ2] his journey as a permanent employee in the core department of MG1, Perfect Diary.

Each year, Perfect Diary hosted a Product Idea Competition (PIC) to inspire employees to submit innovative ideas and product concepts that could one day become a reality. The winners will receive a substantial bonus and the chance to launch their own product line.

The Company

Perfect Diary, established in 2017, was a young cosmetics brand committed to exploring Western beauty trends. Simultaneously, they incorporated Asian people's facial and skin characteristics to create a line of high-quality, well-designed, and easy-to-use cosmetic products for the new generation of women and work to establish a world class cosmetic brand .

Perfect Diary had risen to become China's number one domestic makeup brand, with e-commerce sales expected to hit 5.23 billion yuan in 2020, an increase of 72.6 percent over 2019. The company's gross profit was 3.36 billion yuan in 2020, up more than 74.5 percent from the previous year. Direct-to-customer (DTC) sales totalled approximately 32.3 million. Perfect Diary's revenue was fourth in the cosmetics industry in Mainland China, after Maybelline, Dior, and L'Oreal Paris.

Marketing Group 1

Marketing group 1 (MG1) was mainly responsible for the products of young girls aged 18-25, which was one of the companys main product lines. The main job in the marketing department includes to:

1. make a product image positioning plan, as well as a new product launch and promotion plan. (Brand Marketing)
2. follow online social media branding and word-of-mouth communication. (Social Marketing)
3. maintain brand-media relationships and expand brand reach through full media. (Public Relations)
4. be[DZ3] responsible for brand recruitment, secondary review, maintenance of old guests, waking up dormant customers. (Customers Relations Management)
5. be responsible for counter set-up and visual display of the brand offline. (Visual Merchandising)

MG1[DZ4] consists of 14 members. Wang Hao, 33, is the group's leader. He earned a master's degree in marketing from an Ivy League university. He spent five years working for a leading multinational cosmetics corporation, gaining valuable practical knowledge. He is extremely gentle and skilled at using the advantages of group members to accomplish group cooperation. Simultaneously, he places a premium on team building. He believes that a positive work environment is essential for producing high-quality work. Under his leadership, MG1 has grown steadily since its inception, and the core members have assumed an increasing role in the overall business[DZ5] .

Marketing Group 2

Marketing Group 2 (MG2) is primarily responsible for products aimed at young mature skin between the ages of 25 and 30, which is Perfect Diary's younger product line. Since this company's initial target market consisted primarily of young females seeking high-quality yet affordable cosmetic items. With the company's continued growth, the company began to widen the market for young mature skin, specifically targeting working women. Naturally, this is a challenging task for MG2.

MG2's group leader, Xiao Huayi, is a 40-year-old professional with 15 years of experience in the Chinese cosmetics industry. In comparison to Wang Hao, Xiao Huayi's management style is more directive. In his professional judgement, he often establishes work conditions for community members. However, it is also due to his extensive experience that his conceptual method is reinforced by proven brand routines. Recent reactions to newly released products have been disappointing, and company executives have consistently pressed them. Xiao Huayi is on the lookout for a new breakthrough point that will allow MG2 to perform better.

The competition

Every year in March, the company will hold an annual Product Idea Competition (PIC). Each department of the company has one entry. Each department of the business is represented by a single entry. The top three finishers in the PIC will receive generous prizes. Additionally, the company would choose one of the top three ideas to develop for launch. Without a doubt, it serves as an excellent motivator for all workers, and particularly for those talented young colleagues. They are likely to seize the opportunity to earn the respect of their superiors and advance their careers. For the MG1, which is already adept at product design and planning, this rivalry is particularly exciting because they have successfully defended their championship twice in the previous two PICs. This time, they're heading for the third championship.

Following an internal comparison of MG1, it was decided to use Liu Yuan's idea to represent MG1 in PIC. Naturally, this product was primarily developed and completed by him and his colleague Zhang Nana, who previously trained him as an intern and was also a part of the champion team at last year's PIC.

Following a revision of his product concept, he wanted to develop an innovative make-up correction product called the refresh stick. At first, he envisioned a stick with eyeliner and puffed eye shadow on both ends. As Zhang Nana often quotes, the right marketer is someone who understands a product well enough to try it out for themselves. Using the quote from his senior as inspiration, he added eye shadow and eyeliner to his eyelid for 12 hours. After checking the product on his eye, he realised there is another issue that women face when it comes to eyeliner and eye shadow. He realised this after 12 hours of wearing eyeliner and mascara, and he was not alone. He considers it very uncomfortable during the day, as the waterproof eye shadow under the eyes smudges easily. In the afternoon or at the end of the day, one may turn into a panda with smudged eyes. Despite the fact that there are several makeup correction options on the market, it has yet to be missing in any way. The majority of correction products are intended to remove makeup but not for touch up. By using the make-up correction product, you will remove the morning eye cream. As a result, he wanted to build the Refresh Stick with both ends feature a round and triangular Q Tip.

He designed it differently than the current market product, which stunned the judges during his competition presentation. On the other end of the swab, he produced an end with eye cream and makeup. It will be the market's first makeup correction stick. His innovation in using an eye cream rather than a cleanser piqued the panel's interest, since it had never been heard before. As Liu Yuan explained, it was a tip he picked up while conducting market research at the shop. He also performed a demonstration for the tables. He drew a line on his hand and then erased it with an eye cream. To their amusement, it is very simple to remove. According to research he made with the lab team, one can remove makeup easily by using eye cream. This way, you can cover the area around the eye without having to remove your makeup. All that is required is to extract them and dab or tap them into the skin. This eliminates the need to carry around a bulky pouch when all that is required is a quick and easy makeup renew stick. He also mentions that they will be able to use Perfect Diary's eye cream and foundations with this makeup renew stick. Indirectly, this would result in an increase in consumer purchases of their goods.

Wang Hao This is the most inventive product I've seen in years, and I have complete faith in its conception to rise our sales this year.

Eventually the refresh stick won the first prize in the competition. At the same time, the Vice President of Perfect Diary, Huang[DZ6] announced that this product idea could be applied to the whole product lines of Perfect Diary, and he told all departments to come up with strategy for product launch plans. With that, all department agreed to allow Liu Yuans team to launch it to the market first, which will be next year during new year.

The Invitation[DZ7]

One month after PIC, Xiao Huayi had a private conversation with Liu Yuan.

Xiao Huayi: Liu, are you interested in coming to my group? I can talk with Wang Hao. You can rank directly to level 3 from Level 1.

Liu Yuan: Mr. Xiao, thanks for the opportunity. I just joined the company several months ago and I have a lot to learn. I find my team members great and look forward to working with them.

Xiao Huayi: Although MG1 is an excellent place, I believe MG2 is a better match for you, and I will grant you more flexibility. And, according to what I've learned, MG1 intends to launch the new product on New Year's Day with a New Year gift box package. I intended to accelerate the launch of MG2 to Christmas Day in order to boost our group's revenues. If our sales increase as a result of your crafted product, you will undoubtedly gain further exposure. And I have discussed

Xiao Huayi never had a chance to finish his sentence.

Liu Yuan You've got to be kidding. I dont agree with you, Xiao. You were already aware of our group's launch date, but you intend to move it forward. Isn't it agreed by all departments that our team will make its first release? Dont you think its foul play?

Liu Yuan slammed fist on the table then stormed out of the seat, enraged. As Xiao saw Liu Yuans action, he was speechless. As he watched him walking away, his face was expressionless, but he was enraged on the inside. He could not believe a newcomer, who had joined the organization less than six months prior, would dare to address him in such a manner.

Soon, Wang Hao approached Liu Yuan to talk.

Wang Hao: Liu, you are very talented and passionate about your work. You have just begun your journey in an organization and conflict within departments is very common. Indeed, what Xiao did was unethical and it may be because the continuous poor performance of MG2, which led him to make such a wrong decision. Dont forget that the final say is by our president and definitely not Xiao. Besides, impulsiveness cannot solve any problem than causing one.

Liu Yuan: I am so sorry. I admit my behaviour was over the board and unforgivable. I acted out of rage and was not conscious of it. Upon hearing from him, I was extremely upset.

Wang Hao took a look at Liu Yuans reaction, took a sip of coffee and continued.

Wang Hao: Anyway, Xiaos behavior will be handled by the management. However, as a newcomer, your hostile attitude toward Xiao is intolerable. He is MG2's team leader and holds a higher rank. You must behave appropriately. It is important to always obey protocol in an organization.

Liu Yuan: Again, I apologize. I did not want to violate protocol. I acknowledge my mistake and promise to change it.

Wang Hao: I'm glad you realized your mistake, and I'd like to suggest that you apologize to Xiao. You should resolve it as soon as possible. Due to the fact that this is your first mistake, you will receive a warning. However, keep in mind that you will face serious consequences if this occurs again.

During the conversation, Liu Yuan's expression became increasingly embarrassed, and he regretted his unprofessional act at workplace.

Wang Hao: You just graduated from university and yet to experience conflict at workplace. I totally understand you. This was the first lesson you experienced in the workplace, and dealing with conflicts with other team is also one mandatory ability that you will need. Assuming you know what to do next. I hope you will take the right decision.

Resolving conflict at the workplace[DZ8]

The next day, Liu Yuan approached and apologised to Xiao Huayi. He honestly acknowledged his impulsiveness and they eventually went for lunch together. Following this incident, Liu Yuan learned that he should never take rash action and always think before acting. He should control his emotion and act wisely. He needs to learn how to handle workplace conflict more effectively.[DZ9]