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Managing The Move To The Cloud Analyzing The Risks And Opportunities Of Cloud Based Accounting Information Systems Case Study Solution

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Background and Facts

Managing The Move To The Cloud Analyzing The Risks And Opportunities Of Cloud Based Accounting Information Systems an office supplies retailer for small and also average sized organisations has lately been involved in preparing for a merging with its rival Residence Deport, which has affected efficiency degrees in departmentswith the senior supervisor associated with lawful problems presented by the federal Trade Commission. With the Advertising Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the near future. With difficulties in the kind of a prospective cultural change and also reduced employee spirits, the company wants a total reengineering initiative at the advertising and marketing division.

Trouble Declaration

The possible social adjustment at the advertising and marketing department of Managing The Move To The Cloud Analyzing The Risks And Opportunities Of Cloud Based Accounting Information Systems is enhancing unpredictability in the workplace resulting in numerous difficulties 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 duty in impacting strategic decisions given that Stapes Inc. had to abandon its plans of merging with Office Deport after the Federal Profession Commission's intervention while doing so. Given the truth that the store has a worldwide presence with branches in UK, U.S.A., Canada and Germany, political consider each of these nations might be able to affect efficiency or strategic objectives. Federal Profession Commission's antitrust suit versus the merging occupied beneficial time of the organization's elderly monitoring recommending that 'political' factors can have major effects for a worldwide organisation.

Economic Factors: Financial factors such as the development of local business in the worldwide scenario suggest that Managing The Move To The Cloud Analyzing The Risks And Opportunities Of Cloud Based Accounting Information Systems is thriving in an environment where there is potential growth of organisations. In addition to this, truth that store customers are mainly searching for office products for home offices recommends that the marketplace has a climbing pattern of business owners and also online organisations.

Social factors: Social trends in the economy reveal that clients are trying to find ease along with appealing rates. Market research demonstrates how the customer for Managing The Move To The Cloud Analyzing The Risks And Opportunities Of Cloud Based Accounting Information Systems does not have awareness about locating solutions which can supply a combination of comfort and low costs.

Technical factors: Technology plays an essential role in Managing The Move To The Cloud Analyzing The Risks And Opportunities Of Cloud Based Accounting Information Systems's organisation technique especially as the company is piloting Technology centers which would certainly supply innovation sales as well as assistance in the kind of memory upgrades, peripheral installments. (Recap of INSECT in appendix 2).

OB Issues as well as Manifestations.

Several underlying Organizational Behavior issues can be seen in Managing The Move To The Cloud Analyzing The Risks And Opportunities Of Cloud Based Accounting Information Systems's case as highlighted in this area.

Concerns regarding cultural change: There is apprehension regarding a cultural change that would certainly happen once Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with a lot of the employee currently showing unhappiness over this potential step. This anticipated change has actually produced stress in the work environment which has actually been coupled with the past stress and anxiety of preparing the firm for a possible merging with Home Deport.

Difficult Task Atmosphere for Newcomers: There is lack of personnel that can match the demanding atmosphere of a hectic organization. Not just does this result in problem in locating the ideal people, it puts stress on brand-new hires as can not stand up to the rate and also pressure that the company expects them to birth.

Dual Reporting Lines: Beginners locate this organizational culture cumbersome and difficult to cope with specifically as dotted line connections are meant to be weaker generally as well as objective setting and efficiency assessment is still done by the strong line manager. This suggests that newcomers could lose clearness about their particular functions as well as objectives especially as populated line reporting does not maintain them in direct interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been hypothesized that the latter would certainly take Krasnow's setting came as a strike to her morale. Lewis might have been qualified as well as ideal for the work however the truth that Kransnow's separation would make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Task Instability: Fear and also instability can be identified as 2 major worries that Lewis would be taking care of specifically as the merger has now be terminated as well as 2 elderly executives of the advertising and marketing department would certainly be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders that would certainly not just be in charge of brining about a cultural change however would likewise need to prove herself in her brand-new role.

Incompatible Administration Style of Leader: Lewis's management design as well as its incompatibility with the advertising division's function can additionally be viewed as an OB obstacle specifically as she has been utilized to taking care of issues in the operations division where personnel are educated to concentrate on processes and obtain them right. The advertising and marketing division on the other hand can be viewed as a team of people that are used to being nurtured by Krasnow who focused much more on outcome than procedures.

Interdepartmental Differences: Interdepartmental disputes in between 3 departments, marketing, merchandizing as well as procedures respectively over the allotment of the advertising and marketing mix can be identified as one more OB issue. The advertising department does not share the exact same vision as the other two departments regarding the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and procedures departments do not agree over the advertising and marketing mix appropriation among one an additional either.

Fragmentation in Advertising And Marketing Division: Fragmentation in between the marketing and advertising divisions can be determined as another OB issue which could need additional focus. The truth that the advertising and marketing sections in the marketing department are disconnected is protecting against both departments from gaining from each other's experience as well as competence. Combination of marketing with merchandising and procedures would come to be harder if the advertising and marketing department itself is disintegrated which can be another prospective OB worry.

Managing The Move To The Cloud Analyzing The Risks And Opportunities Of Cloud Based Accounting Information Systems Analysis

Different concepts have been used to describe the scenarios to get more quality about the scenario available.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors think that juniors are passive as well as lazy, have little aspiration as well as resist change. The hard variation of this concept stressed coercion, tight controls, hazards and also punishments. Over time it creates reduced performance, subtle sabotage as well as competition (Bargain, 2003). The circumstance at Managing The Move To The Cloud Analyzing The Risks And Opportunities Of Cloud Based Accounting Information Systems is not entirely complying with Theory X, it can be seen that brand-new hires are locating this environment rather demanding which may at some point lead to a better inclination of the management towards Theory X. Based on McGregor's promoted view, which he called Theory Y, the important job of the administration is to set up organizational conditions to ensure that people can attain their very own goals best by routing their efforts towards business rewards. If individuals find no contentment in their job, the management would certainly have little selection but to count on concept X and exterior control (Bargain, 2003). Even while analyzing Lewis's monitoring style, theory X may have been suitable in the procedures department to some extent but the Advertising and marketing division would certainly call for dependence on Theory Y in order to get the creative thinking and originality from the groups.

Tuckman's Teamwork Concept: As much as Lewis's worry regarding bringing consistency in between the advertising and marketing and also advertising and marketing division is worried, this would initially lead to contrast as talked about by Bruce Tuckman in his 'Teamwork Concept'. By integrating the marketing and also marketing division's job, there may be the very same preliminary disconnect which might lead to the second phase of 'storming' where the teams challenge one another.

When individuals are provided with adjustment, they get in stage one and also so there might be feelings like sadness, uncertainty, stress, rage, anxiety, denial as well as disorientation.The circumstance at the advertising department of Managing The Move To The Cloud Analyzing The Risks And Opportunities Of Cloud Based Accounting Information Systems is similar so Lewis can obtain comfy with the suggestion that it is not amazing actions. It is during this stage that Lewis will certainly have to provide advice to the division so that they can find a sense of direction. It can be seen just how Krasnow has already made this shift much easier by making Lewis obtain involved in the department a year prior to his actual departure.

Maslow's Need hierarchy: The OB concern pertaining to instability at the office has been caused firstly by the change in monitoring and secondly by the truth that the merger will certainly no more be initiated. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has goes over the value of 'security needs as being a reduced degree demand of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel safe and secure and also out of danger' is at the second level of demands. Before a worker can be made to establish psychologically, he needs to have his 'Physiological 'as well as 'Safety' needs met. This shows that unless the employees are made to feel secure about their present work condition in Managing The Move To The Cloud Analyzing The Risks And Opportunities Of Cloud Based Accounting Information Systems they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Managing The Move To The Cloud Analyzing The Risks And Opportunities Of Cloud Based Accounting Information Systems Case Study



Ramification of Analysis.

The OB analysis has checked out numerous concepts to comprehend exactly how to handle the present situation at hand. The complying with three choices have actually been suggested to help Lewis deal with the business challenges in the advertising division. Each of these choices has actually been recommended for relieving the change needed to bring the marketing department according to the needs of the marketplace and for making the social modification that would certainly adhere to when the current leader leaves.

Combination of marketing and advertising features. Separating Adverting and also Manufacturing features. Assimilation of Advertising with Workflow.

Analysis of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merging days has expertise in business-to-business marketing along with firm and retail advertising and marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to deal with both advertising as well as advertising features.

The benefit of this strategy is that it will certainly integrate the two features while lowering the demand for hiring an added source for advertising and marketing. Lewis would be heading the advertising department and also in any case her replacement would be needed for the current role that she is performing. The downside of this choice is that external hiring might produce bitterness from interior personnel who might be looking at the setting of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and Production: Provided the affordable stress as well as excellent quality work called for from the ad agency, it is suggested that Lewis should allow the manufacturing unit to be a different feature from the marketing system. Since most ad agency had these 2 features as different units, it makes even more sense to comply with the norm. Along with this, both features might be able to concentrate on their core triggers extra successfully. Nevertheless, the downside of this technique would be that extra expenses would have to be birthed for setting up different manufacturing features. A production head might have to be hired which could enhance overheads for the company.

Assimilation of Advertising with Procedures: Given that Lewis is already taking care of the advertising as well as operations departments at the same time; it makes sense to integrate the two functions considering that she has been effectively taking care of both ends. The fact that Lewis has to adapt her management style for the marketing division suggests that these 2 departments would be culturally diverse.

Suggestion.



An examination of the three options suggests that assimilation of advertising and marketing and operations would certainly not be a possible move due to the huge distinctions in between the two departments despite the reality that presently Lewis is dealing with both. While separation of the production feature may have been a favorable relocation for the advertising and marketing division, the fact that it would certainly suggest positioning a 3rd feature under Lewis's wing means this must be stayed clear of.

Activity Strategy.

Lewis will certainly take over the role of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be combined.

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

Production feature will remain part of advertising under advertising function.

Lewis will separate herself from operations.

A democratic leadership design with worker empowerment will be used in advertising and marketing department.

Open up door policy and also focus on cross departmental communication will certainly be targeted at eliminating dissonance.

Contingency strategy.

If the integration does not work out as planned, a contingency plan would adhere to which would certainly divide the production feature from the advertising feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the marketing division without an SVP. Because case the production feature will certainly be separated by placing it under an SVP manufacturing.