Preventing Another Madoff Reengineering The Secs Investigation Process Case Study Analysis


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Preventing Another Madoff Reengineering The Secs Investigation Process Case Study Solution

Background and Facts

Preventing Another Madoff Reengineering The Secs Investigation Process a workplace materials seller for tiny and also medium sized companies has actually just recently been involved in preparing for a merger with its competitor House Deport, which has actually influenced performance degrees in departmentswith the elderly manager associated with lawful difficulties put forth by the federal Trade Compensation. With the Advertising Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the role in the near future. With obstacles in the kind of a prospective cultural change and low employee morale, the company wants a complete reengineering effort at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective cultural modification at the marketing department of Preventing Another Madoff Reengineering The Secs Investigation Process is enhancing unpredictability in the working environment leading to different obstacles for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting tactical decisions because Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Profession Commission's intervention in the process. Provided the truth that the shop has a global presence with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries might be able to impact efficiency or critical goals. Federal Trade Payment's antitrust match versus the merger occupied valuable time of the company's senior administration recommending that 'political' factors can have major ramifications for an international service.

Economic Factors: Financial factors such as the introduction of local business in the global situation recommend that Preventing Another Madoff Reengineering The Secs Investigation Process is flourishing in an environment where there is possible development of businesses. In addition to this, truth that shop clients are mainly searching for office materials for office recommends that the market has an increasing trend of entrepreneurs as well as home based companies.

Social factors: Social patterns in the economic situation reveal that consumers are searching for convenience as well as appealing prices. Market research shows how the customer for Preventing Another Madoff Reengineering The Secs Investigation Process does not have understanding regarding finding solutions which can use a combination of ease as well as affordable.

Technological factors: Modern technology plays an essential duty in Preventing Another Madoff Reengineering The Secs Investigation Process's organisation method particularly as the organization is piloting Modern technology centers which would supply technology sales and also assistance in the type of memory upgrades, peripheral installments. (Summary of INSECT in appendix 2).

OB Issues and Manifestations.

Numerous underlying Organizational Habits problems can be seen in Preventing Another Madoff Reengineering The Secs Investigation Process's case as highlighted in this area.

Worries regarding social modification: There is worry concerning a social change that would occur as soon as Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with the majority of the team member currently showing discontent over this potential move. This anticipated change has produced tension in the office which has actually been combined with the past anxiety of preparing the company for a possible merging with Residence Deport.
Pest Analysis
Demanding Job Environment for Newcomers: There is lack of personnel that can match the stressful environment of a busy organization. Not just does this lead to trouble in locating the best people, it places tension on new hires as can not endure the rate and stress that the company expects them to bear.

Double Reporting Lines: Newcomers locate this business culture cumbersome and also tough to deal with particularly as dotted line partnerships are suggested to be weak in general and unbiased setup as well as efficiency examination is still done by the strong line manager. This implies that newcomers could shed quality regarding their respective roles as well as goals specifically as dotted line coverage does not keep them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had been hypothesized that the last would certainly take Krasnow's placement came as a strike to her spirits. Lewis might have been capable and proper for the job yet the fact that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Work Insecurity: Concern and also instability can be determined as two major issues that Lewis would certainly be managing particularly as the merging has actually currently be cancelled and also two elderly execs of the advertising division would be leaving. The entire obligation of the department would be falling on Lewis's shoulders who would certainly not simply be in charge of brining regarding a social modification however would likewise need to prove herself in her brand-new function.

Inappropriate Management Design of Leader: Lewis's monitoring design and its conflict with the advertising department's role can also be viewed as an OB obstacle particularly as she has been used to managing concerns in the procedures department where personnel are shown to focus on procedures and obtain them right. The advertising division on the various other hand can be viewed as a group of people that are utilized to being supported by Krasnow that focused extra on output than procedures.

Interdepartmental Arguments: Interdepartmental disputes between 3 departments, advertising, merchandizing and operations specifically over the allowance of the advertising and marketing mix can be recognized as another OB problem. The marketing division does not share the very same vision as the other 2 departments pertaining to the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and also operations departments do not agree over the advertising mix allowance amongst one another either.

Disintegration in Marketing Department: Disintegration between the marketing and advertising divisions can be determined as another OB issue which might require more focus. The fact that the advertising and marketing areas in the advertising and marketing division are detached is avoiding both departments from getting from each various other's experience and also expertise. Integration of advertising and marketing with merchandising and also operations would certainly come to be more difficult if the marketing department itself is degenerated which can be one more prospective OB concern.

Preventing Another Madoff Reengineering The Secs Investigation Process Analysis

Various theories have been used to clarify the scenarios to obtain more quality regarding the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that juniors are passive as well as lazy, have little aspiration and also stand up to modification. The scenario at Preventing Another Madoff Reengineering The Secs Investigation Process is not totally adhering to Concept X, it can be seen that new hires are finding this environment rather demanding which may at some point lead to a better inclination of the management in the direction of Theory X. Even while analyzing Lewis's administration style, theory X might have been suitable in the procedures department to some extent however the Marketing division would certainly require dependence on Theory Y in order to obtain the creativity as well as creativity from the teams.

Tuckman's Synergy Concept: As for Lewis's worry about bringing consistency between the advertising and marketing department is concerned, this would initially lead to clash as reviewed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, throughout the preliminary phase of group advancement, people may not bond, as they are busy finding their place in the group. By incorporating the advertising and marketing division's work, there might coincide initial detach which can result in the 2nd stage of 'storming' where the teams test one another. It is only during the third stage or 'norming' when they would certainly come together to share suggestions before the group can bring around synergy in the fourth phase 'carrying out'.

Bridges' Transition Design: Based On William Bridge's theory (appendix 4), individuals are rather uneasy with change, which is apparent by the scenario at Preventing Another Madoff Reengineering The Secs Investigation Process The situation can be viewed as a normal training course of life if is researched based on Bridge's theory where he describes that people experience three phases of shift when they experience modification. 'Ending, shedding and also Letting go', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When individuals are presented with adjustment, they get in stage one and so there might be emotions like sadness, uncertainty, aggravation, rage, concern, denial and also disorientation.The scenario at the marketing department of Preventing Another Madoff Reengineering The Secs Investigation Process is similar so Lewis can get comfy with the suggestion that it is not remarkable habits. In the 2nd phase, there may be a need to connect the space in between the new and old society so Lewis may have to face this ordeal when Krasnow leaves. There may be low morale as well as low efficiency at this stage which should not be taken as a problem. It is throughout this phase that Lewis will have to give support to the division to ensure that they can locate a sense of direction. It can be seen exactly how Krasnow has currently made this transition easier by making Lewis get associated with the division a year before his actual separation. According to Bridges' Version, phase three will certainly bring about visibility to understanding, High energy as well as commitment as individuals will welcome the modification (Bridges, 2004).
Vrio Analysis
Maslow's Requirement pecking order: The OB issue pertaining to instability at the office has been activated to start with by the modification in monitoring and secondly by the reality that the merger will no longer be initiated. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has talks about the significance of 'security needs as being a reduced level demand of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to really feel secure and also untouched' is at the second level of demands. Prior to a worker can be made to establish psychologically, he requires to have his 'Physical 'as well as 'Safety' requires met. This indicates that unless the workers are made to really feel safe and secure regarding their existing work status in Preventing Another Madoff Reengineering The Secs Investigation Process they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Preventing Another Madoff Reengineering The Secs Investigation Process Case Study

Effects of Analysis.

The OB analysis has actually checked out numerous theories to understand exactly how to deal with the present situation at hand. The complying with 3 choices have been proposed to assist Lewis handle the business difficulties in the advertising and marketing department. Each of these options has been proposed for easing the transition needed to bring the advertising and marketing department in line with the demands of the marketplace and for making the cultural change that would adhere to when the existing leader leaves.

Integration of marketing and advertising features. Separating Adverting and Manufacturing features. Integration of Marketing with Procedures.

Examination of Alternatives.

Assimilation of Marketing & Advertising And Marketing Functions: The in-house marketing agency of Preventing Another Madoff Reengineering The Secs Investigation Process is currently toughness for the organization in terms of saving up on expenses connected to marketing and also promotion. Considering that no new recruitment has been done after Bridget Cole's separation with the coverage line being directly assigned to Krasnow for the advertising function, this is a positive possibility for integrating the marketing and advertising functions. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merger days has know-how in business-to-business advertising and marketing along with firm and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to handle both advertising and marketing functions.

The advantage of this strategy is that it will certainly incorporate both features while decreasing the requirement for hiring an extra resource for advertising. Lewis would certainly be heading the advertising division and also in any case her replacement would be needed for the existing duty that she is performing. The disadvantage of this option is that exterior hiring may bring about resentment from interior personnel that might be eying the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Manufacturing: Provided the affordable pressures and premium quality job called for from the ad agency, it is recommended that Lewis must enable the manufacturing device to be a separate feature from the advertising and marketing device. Because many advertising agencies had these 2 features as different devices, it makes more feeling to adhere to the norm. In addition to this, both features might have the ability to concentrate on their core activates extra efficiently. Nevertheless, the drawback of this method would be that added costs would have to be birthed for setting up different production features. A production head may have to be hired which could increase overheads for the company.

Combination of Advertising And Marketing with Workflows: Considering that Lewis is currently taking care of the advertising and procedures divisions concurrently; it makes sense to integrate the two features given that she has been effectively looking after both ends. The fact that the two departments already have major distinctions over appropriation of sources suggests that this integration may have the ability to bring about consistency specifically as Lewis would certainly be heading both ends.However there are various downsides of this move especially as it would certainly put excessive worry over Lewis's shoulders. The truth that Lewis needs to adapt her administration style for the advertising division recommends that these two divisions would certainly be culturally varied. Along with this, Lewis may not be able to use one sort of leadership style to both divisions which might lead to inefficiency in either among both features.


An analysis of the 3 choices suggests that integration of advertising and marketing as well as procedures would certainly not be a possible move as a result of the vast differences between the two divisions despite the fact that presently Lewis is handling both. While splitting up of the manufacturing function might have been a desirable move for the advertising and marketing department, the truth that it would mean putting a third function under Lewis's wing means this should be stayed clear of. The combination of the marketing department is the most effective option in terms of obtaining the optimal arise from the division. An activity prepare for this option is gone over below.

Action Strategy.
Lewis will take control of the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Manufacturing function will certainly remain part of marketing under marketing feature.

Lewis will divide herself from procedures.

An autonomous management design with employee empowerment will be made use of in advertising and marketing division.

Open up door plan and emphasis on cross departmental communication will be aimed at eliminating dissonance.

Backup strategy.

If the assimilation does not exercise as prepared, a contingency plan would certainly comply with which would certainly separate the production feature from the marketing function to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising department without an SVP. In that case the production feature will absolutely be separated by placing it under an SVP production.