Kbc Mobile Banking Case Study Solution


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Kbc Mobile Banking Case Study Solution

Background and Facts

Kbc Mobile Banking a workplace materials retailer for small and medium sized services has just recently been associated with planning for a merger with its competitor House Deport, which has actually influenced performance degrees in departmentswith the elderly manager involved in lawful problems put forth by the federal Profession Commission. With the Advertising Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the near future. With challenges in the kind of a potential social modification and also reduced staff member spirits, the company wants a full reengineering initiative at the advertising department.

Trouble Declaration

The prospective social change at the advertising and marketing department of Kbc Mobile Banking is increasing uncertainty in the working environment resulting in numerous challenges for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting tactical choices given that Stapes Inc. needed to abandon its strategies of merging with Office Deport after the Federal Trade Payment's intervention at the same time. Provided the truth that the shop has a global visibility with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries might have the ability to affect efficiency or tactical goals. Federal Trade Payment's antitrust suit versus the merger took up important time of the company's senior administration suggesting that 'political' factors can have serious implications for a worldwide business.

Economic Factors: Financial factors such as the emergence of small companies in the worldwide circumstance recommend that Kbc Mobile Banking is growing in an environment where there is possible development of services. Reality that store customers are mainly looking for workplace materials for home workplaces suggests that the market has an increasing trend of entrepreneurs as well as home based businesses.

Social factors: Social fads in the economic climate reveal that customers are looking for ease along with eye-catching prices. Marketing research demonstrates how the customer for Kbc Mobile Banking lacks understanding regarding locating services which can use a mix of comfort as well as low costs.

Technical factors: Modern technology plays a crucial role in Kbc Mobile Banking's business technique specifically as the organization is piloting Modern technology centers which would provide innovation sales and assistance in the kind of memory upgrades, peripheral installations. (Summary of INSECT in appendix 2).

OB Issues and Manifestations.

Numerous underlying Organizational Actions issues can be seen in Kbc Mobile Banking's case as highlighted in this area.

Uneasiness concerning cultural modification: There is apprehension concerning a social adjustment that would certainly take place once Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with the majority of the staff members currently showing unhappiness over this potential action. This expected adjustment has developed stress and anxiety in the office which has actually been coupled with the past stress and anxiety of preparing the firm for a prospective merging with House Deport.

Stressful Task Environment for Newcomers: There is shortage of workers that can match the stressful environment of a hectic company. Not just does this bring about problem in locating the right people, it places stress and anxiety on new hires as can not endure the pace as well as pressure that the organization expects them to birth.

Double Reporting Lines: Newbies find this business culture difficult and tough to manage particularly as dotted line connections are suggested to be weak as a whole as well as objective setting and performance examination is still done by the strong line supervisor. This indicates that novices could lose clearness concerning their respective functions and purposes especially as populated line reporting does not maintain them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had been guessed that the last would take Krasnow's position came as a strike to her spirits. Lewis may have been qualified as well as ideal for the work yet the truth that Kransnow's departure would make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Work Insecurity: Anxiety and also instability can be identified as two significant concerns that Lewis would certainly be taking care of specifically as the merging has actually currently be cancelled and also two elderly executives of the advertising department would certainly be leaving. The entire responsibility of the department would be dropping on Lewis's shoulders that would not just be in charge of brining regarding a cultural adjustment but would likewise have to show herself in her new duty.

Inappropriate Management Design of Leader: Lewis's administration design as well as its incompatibility with the advertising and marketing department's function can additionally be seen as an OB challenge particularly as she has actually been used to taking care of problems in the procedures department where employees are shown to focus on procedures and also obtain them right. The marketing division on the various other hand can be seen as a group of individuals who are utilized to being supported by Krasnow who focused much more on output than procedures.

Interdepartmental Arguments: Interdepartmental disagreements between three divisions, advertising, merchandizing and procedures respectively over the appropriation of the advertising mix can be determined as an additional OB concern. Although the advertising and marketing division does not share the same vision as the other 2 divisions concerning the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and operations departments do not agree over the advertising mix appropriation amongst one another either.

Fragmentation in Advertising And Marketing Division: Disintegration between the advertising and marketing divisions can be determined as another OB issue which could require more attention. The truth that the marketing and advertising sections in the advertising department are detached is protecting against both departments from obtaining from each various other's experience and also expertise. Assimilation of advertising with merchandising and operations would become more difficult if the advertising division itself is broken down which can be an additional potential OB problem.

Kbc Mobile Banking Analysis

Numerous concepts have been made use of to clarify the situations to get more clarity concerning the situation at hand.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors think that staffs are easy and also careless, have little passion and resist modification. The tough variation of this theory emphasized coercion, tight controls, risks and punishments. With time it produces reduced efficiency, refined sabotage and also rivalry (Offer, 2003). Although the situation at Kbc Mobile Banking is not totally following Theory X, it can be seen that brand-new hires are discovering this setting instead demanding which may at some point bring about a better inclination of the management towards Concept X. According to McGregor's advocated view, which he called Concept Y, the necessary task of the management is to arrange organizational conditions so that individuals can achieve their own goals best by guiding their initiatives towards business rewards. If people locate no complete satisfaction in their job, the monitoring would have little option but to rely on concept X and also external control (Deal, 2003). Even while assessing Lewis's monitoring style, concept X might have appropriated in the operations department to some extent but the Marketing division would certainly need reliance on Theory Y so as to get the creative thinking and also originality from the teams.

Tuckman's Team effort Concept: As for Lewis's problem concerning bringing consistency between the advertising and marketing department is worried, this would at first lead to clash as discussed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, throughout the first phase of group growth, people may not bond, as they are active discovering their area in the team. By incorporating the marketing and advertising department's job, there might coincide preliminary disconnect which can lead to the 2nd stage of 'storming' where the groups challenge each other. It is only throughout the 3rd phase or 'norming' when they would come together to share concepts before the team can bring about harmony in the 4th phase 'performing'.

When people are provided with modification, they enter phase one and so there might be feelings like unhappiness, uncertainty, disappointment, anger, concern, rejection and also disorientation.The situation at the advertising department of Kbc Mobile Banking is similar so Lewis can obtain comfy with the idea that it is not extraordinary behavior. It is during this phase that Lewis will have to provide guidance to the division so that they can find a feeling of instructions. It can be seen how Krasnow has currently made this change less complicated by making Lewis get involved in the division a year prior to his real departure.

Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has talks about the importance of 'security requires as being a lower degree requirement of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel secure and also out of risk' is at the second degree of requirements. Before a worker can be made to develop emotionally, he needs to have his 'Physical 'and 'Safety' requires satisfied.

SWOT Analysis for Kbc Mobile Banking Case Study

Ramification of Analysis.

The OB analysis has actually considered different concepts to recognize exactly how to manage the existing situation handy. The complying with 3 alternatives have actually been suggested to assist Lewis deal with the business difficulties in the advertising and marketing division. Each of these options has actually been recommended for relieving the change required to bring the advertising and marketing department according to the requirements of the market as well as for making the social modification that would adhere to when the existing leader leaves.

Integration of marketing and advertising functions. Dividing Adverting as well as Manufacturing features. Assimilation of Marketing with Operations.

Analysis of Alternatives.

Assimilation of Advertising & Advertising Functions: The in-house advertising company of Kbc Mobile Banking is already toughness for the organization in terms of saving up on expenses related to marketing and also promotion. Given that no new employment has been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the advertising and marketing feature, this is a beneficial chance for incorporating the marketing and advertising functions. Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merging days has knowledge in business-to-business advertising and marketing along with agency as well as retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to take care of both advertising and marketing features.

The benefit of this method is that it will certainly incorporate both features while lowering the need for working with an added source for marketing. In addition to this, Lewis would be heading the marketing division as well as in any case her substitute would be needed for the existing role that she is carrying out. The downside of this alternative is that exterior hiring might bring about resentment from internal workers who might be considering the placement of EVP after Lewis takes over Krasnow's position.

Dividing Adverting as well as Production: Offered the affordable pressures as well as excellent quality work called for from the ad agency, it is suggested that Lewis needs to permit the manufacturing unit to be a separate function from the advertising device. Since a lot of ad agency had these two functions as different systems, it makes even more feeling to adhere to the standard. Both features might be able to focus on their core triggers much more efficiently. Nonetheless, the downside of this strategy would be that extra prices would certainly need to be borne for setting up different manufacturing functions. A production head might have to be hired which might raise overheads for the company.

Combination of Advertising with Procedures: Since Lewis is currently caring for the advertising and marketing and also operations departments concurrently; it makes sense to incorporate the two features since she has actually been successfully looking after both ends. The truth that the two departments currently have significant distinctions over allowance of resources suggests that this combination might be able to produce harmony specifically as Lewis would be heading both ends.However there are numerous disadvantages of this action particularly as it would certainly place way too much concern over Lewis's shoulders. The reality that Lewis has to adapt her management design for the advertising department suggests that these two departments would be culturally varied. In addition to this, Lewis might not be able to use one sort of management design to both divisions which can lead to inefficiency in either among both functions.


An evaluation of the three alternatives suggests that assimilation of advertising and marketing and operations would certainly not be a practical move due to the large distinctions between the two departments despite the fact that currently Lewis is managing both. While separation of the manufacturing function may have been a positive move for the advertising and marketing department, the truth that it would certainly suggest putting a third feature under Lewis's wing implies this must be prevented also. The combination of the advertising and marketing division is the very best option in regards to getting the optimum arise from the division. An activity plan for this choice is discussed listed below.

Action Plan.

Lewis will certainly take control of the role of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

Judith Shapiro will be worked with to take Lewis's place as SVP of advertising and marketing.

Manufacturing function will certainly remain component of advertising and marketing under advertising feature.

Lewis will certainly divide herself from procedures.

A democratic leadership style with staff member empowerment will be used in advertising department.

Open door policy and also focus on cross departmental interaction will certainly be targeted at eliminating disharmony.

Backup strategy.

If the combination does not work out as intended, a backup strategy would adhere to which would separate the production feature from the advertising function to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the production function will absolutely be divided by putting it under an SVP manufacturing.