Ing Direct Redefining Direct Banking Case Study Help


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Ing Direct Redefining Direct Banking Case Study Solution

Background and Facts

Ing Direct Redefining Direct Banking an office products store for small and also medium sized businesses has actually just recently been involved in preparing for a merging with its rival Residence Deport, which has actually impacted effectiveness degrees in departmentswith the senior supervisor involved in legal issues presented by the government Profession Commission. With the Advertising and marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the role in the near future. With difficulties in the kind of a possible social change and low employee spirits, the company wants a complete reengineering effort at the advertising division.

Problem Statement
Porter's 5 Forces Analysis
The potential cultural modification at the marketing department of Ing Direct Redefining Direct Banking is enhancing uncertainty in the workplace causing various challenges for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting critical decisions because Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Trade Payment's treatment in the process. Given the fact that the shop has an international existence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries might be able to affect performance or strategic goals. Federal Profession Commission's antitrust suit versus the merging took up valuable time of the company's senior monitoring recommending that 'political' factors can have severe ramifications for a worldwide business.

Economic Factors: Economic factors such as the development of small companies in the global situation recommend that Ing Direct Redefining Direct Banking is growing in an environment where there is potential growth of organisations. Truth that store customers are primarily looking for office supplies for residence offices suggests that the market has a climbing trend of entrepreneurs as well as residence based organisations.

Social factors: Social fads in the economy reveal that clients are trying to find comfort as well as eye-catching costs. Marketing research demonstrates how the client for Ing Direct Redefining Direct Banking does not have awareness regarding finding solutions which can supply a mix of comfort and low costs.

Technological factors: Modern technology plays an essential role in Ing Direct Redefining Direct Banking's service method particularly as the organization is piloting Technology centers which would certainly use technology sales and support in the form of memory upgrades, outer setups. (Recap of PEST in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Organizational Habits problems can be seen in Ing Direct Redefining Direct Banking's case as highlighted in this area.

Uneasiness about social adjustment: There is concern concerning a social change that would happen as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with a lot of the personnel currently revealing discontent over this prospective step. This expected adjustment has developed stress in the work environment which has been coupled with the previous stress of preparing the firm for a potential merging with Home Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is shortage of workers that can match the difficult setting of a busy company. Not just does this cause problem in discovering the best people, it places stress on new hires as can not stand up to the pace and pressure that the organization anticipates them to birth.

Double Reporting Lines: Newcomers locate this business culture difficult and challenging to deal with particularly as populated line partnerships are indicated to be weaker as a whole as well as objective setup as well as efficiency evaluation is still done by the solid line manager. This suggests that newcomers can lose quality concerning their respective duties and objectives specifically as populated line reporting does not keep them in direct interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had actually been guessed that the latter would certainly take Krasnow's placement came as a strike to her spirits. Lewis might have been capable and also proper for the task however the truth that Kransnow's separation would make Coles a straight record to Lewis may have been the reason for Coles' resignation from services.

Anxiety & Task Insecurity: Fear and also insecurity can be recognized as 2 major concerns that Lewis would be handling specifically as the merging has currently be cancelled as well as 2 elderly execs of the advertising and marketing division would certainly be leaving. The whole obligation of the department would be falling on Lewis's shoulders that would not simply supervise of brining about a social change yet would certainly likewise need to confirm herself in her new role.

Inappropriate Administration Design of Leader: Lewis's management style and also its conflict with the marketing department's role can additionally be seen as an OB challenge especially as she has been used to dealing with problems in the operations division where workers are taught to concentrate on processes and get them. The advertising department on the various other hand can be seen as a team of people that are used to being nurtured by Krasnow that concentrated extra on result than processes.

Interdepartmental Arguments: Interdepartmental differences between three divisions, advertising, merchandizing and procedures specifically over the appropriation of the marketing mix can be identified as an additional OB issue. The advertising division does not share the exact same vision as the other two departments relating to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as operations departments do not concur over the advertising mix allocation amongst one an additional either.

Fragmentation in Advertising And Marketing Division: Fragmentation in between the advertising and marketing divisions can be identified as another OB issue which can require more interest. The fact that the advertising and marketing areas in the advertising division are separated is avoiding both departments from gaining from each various other's experience as well as proficiency. Combination of marketing with merchandising and operations would certainly end up being harder if the advertising and marketing department itself is degenerated which can be another potential OB issue.

Ing Direct Redefining Direct Banking Analysis

Numerous concepts have been made use of to describe the scenarios to get additional quality about the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that staffs are passive and lazy, have little ambition as well as stand up to modification. The difficult version of this concept stressed coercion, limited controls, dangers and punishments. In time it creates low productivity, refined sabotage as well as competition (Bargain, 2003). Although the circumstance at Ing Direct Redefining Direct Banking is not completely complying with Theory X, it can be seen that brand-new hires are locating this atmosphere rather demanding which might at some point bring about a greater disposition of the management in the direction of Concept X. As per McGregor's advocated view, which he called Concept Y, the essential task of the administration is to set up organizational problems to ensure that people can accomplish their very own goals best by guiding their efforts towards organizational incentives. If people discover no fulfillment in their job, the administration would have little selection however to rely on theory X and external control (Offer, 2003). Even while assessing Lewis's administration design, theory X might have been suitable in the procedures division to some extent however the Marketing division would certainly need reliance on Concept Y so as to get the imagination and originality from the teams.

Tuckman's Teamwork Concept: As for Lewis's concern about bringing harmony between the advertising and marketing division is concerned, this would originally result in conflict as talked about by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). According to Tuckman's theory received appendix 3, throughout the preliminary stage of team advancement, people may not bond, as they are hectic finding their location in the group. By integrating the marketing and advertising department's job, there might be the same first disconnect which could bring about the 2nd stage of 'storming' where the teams challenge one another. It is only throughout the third stage or 'norming' when they would certainly come with each other to share suggestions before the group can bring about harmony in the fourth phase 'performing'.

Bridges' Shift Model: As per William Bridge's theory (appendix 4), individuals are fairly uneasy with adjustment, which is apparent by the scenario at Ing Direct Redefining Direct Banking The circumstance can be seen as a regular program of life if is researched based on Bridge's theory where he explains that individuals experience 3 stages of change when they experience modification. 'End, losing as well as Releasing', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they go into stage one and so there may be emotions like unhappiness, unpredictability, stress, anger, concern, rejection and disorientation.The situation at the advertising and marketing department of Ing Direct Redefining Direct Banking is similar so Lewis can get comfortable with the concept that it is not remarkable behavior. In the second stage, there may be a need to connect the gap between the brand-new and old culture so Lewis may need to face this ordeal as soon as Krasnow leaves. There might be reduced morale as well as low productivity at this phase which must not be taken as a trouble. It is during this stage that Lewis will have to provide support to the division so that they can discover a sense of direction. It can be seen exactly how Krasnow has actually already made this transition much easier by making Lewis get involved in the department a year prior to his actual departure. As per Bridges' Version, phase three will certainly produce visibility to understanding, High energy and dedication as people will embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Need pecking order: The OB concern related to instability at the office has been caused firstly by the change in administration and also second of all by the truth that the merger will certainly no more be started. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has discusses the importance of 'safety requires as being a reduced degree need of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to feel safe and secure as well as out of danger' is at the second degree of needs. Before an employee can be made to develop psychologically, he requires to have his 'Physiological 'and also 'Safety' requires satisfied. This suggests that unless the employees are made to really feel protected about their existing work condition in Ing Direct Redefining Direct Banking they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Ing Direct Redefining Direct Banking Case Study

Effects of Analysis.

The OB analysis has checked out different theories to recognize just how to cope with the present situation handy. The following 3 options have actually been suggested to help Lewis manage the business difficulties in the marketing division. Each of these alternatives has actually been suggested for easing the change required to bring the advertising and marketing division in line with the requirements of the marketplace and for making the cultural modification that would adhere to as soon as the current leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and also Manufacturing functions. Assimilation of Advertising with Operations.

Examination of Alternatives.

Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merger days has knowledge in business-to-business advertising along with firm and retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to manage both advertising and marketing and advertising and marketing features.

The advantage of this approach is that it will integrate both features while lowering the demand for working with an extra resource for marketing. In addition to this, Lewis would be heading the advertising division and also regardless her substitute would certainly be needed for the current function that she is carrying out. The disadvantage of this choice is that outside hiring might cause resentment from inner employees who may be considering the placement of EVP after Lewis takes over Krasnow's position.

Separating Adverting as well as Manufacturing: Given the affordable stress and excellent quality job needed from the ad agency, it is recommended that Lewis must allow the manufacturing unit to be a different function from the advertising device. Since many ad agency had these 2 features as separate devices, it makes more feeling to follow the norm. Both features may be able to concentrate on their core triggers more efficiently. The disadvantage of this strategy would certainly be that extra prices would have to be birthed for establishing up separate manufacturing features. A production head may have to be employed which can enhance expenses for the organization.

Combination of Advertising And Marketing with Procedures: Given that Lewis is already looking after the marketing and operations departments concurrently; it makes sense to incorporate both functions since she has been successfully taking care of both ends. The reality that both departments already have major differences over allowance of sources recommends that this integration might have the ability to bring about consistency particularly as Lewis would certainly be heading both ends.However there are numerous disadvantages of this relocation particularly as it would place too much worry over Lewis's shoulders. The truth that Lewis has to adapt her management style for the advertising department recommends that these 2 divisions would certainly be culturally varied. Lewis might not be able to apply one type of management design to both departments which could result in inadequacy in either one of the two features.


An examination of the 3 choices indicates that integration of marketing and also procedures would certainly not be a possible move due to the large distinctions between the 2 divisions in spite of the fact that presently Lewis is managing both. While separation of the production function may have been a desirable action for the advertising and marketing department, the fact that it would indicate positioning a 3rd feature under Lewis's wing indicates this need to be stayed clear of.

Activity Plan.
Lewis will certainly take over the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

Judith Shapiro will certainly be hired to take Lewis's location as SVP of advertising and marketing.

Production function will certainly stay part of marketing under advertising function.

Lewis will divide herself from procedures.

A democratic leadership style with worker empowerment will certainly be used in marketing division.

Open up door policy and also focus on cross department communication will be aimed at removing dissonance.

Backup strategy.

If the assimilation does not work out as prepared, a backup strategy would follow which would divide the production function from the advertising function to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the marketing department without an SVP. In that case the production feature will most definitely be separated by placing it under an SVP production.