Preventing Another Madoff Reengineering The Secs Investigation Process Case Study Analysis


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Background and Facts

Preventing Another Madoff Reengineering The Secs Investigation Process a workplace materials merchant for small and average sized businesses has recently been involved in planning for a merger with its rival Home Deport, which has actually affected performance degrees in departmentswith the senior supervisor involved in legal difficulties presented by the government Profession Commission. With the Marketing Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the future. With difficulties in the type of a potential social adjustment as well as low worker spirits, the organization needs a complete reengineering effort at the marketing division.

Issue Statement
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing division of Preventing Another Madoff Reengineering The Secs Investigation Process is boosting unpredictability in the working environment leading to different obstacles for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing calculated choices considering that Stapes Inc. had to desert its strategies of combining with Workplace Deport after the Federal Profession Payment's treatment at the same time. Given the reality that the shop has a global existence with branches in UK, USA, Canada and also Germany, political factors in each of these nations might have the ability to influence performance or strategic goals. Federal Trade Commission's antitrust fit against the merger used up beneficial time of the organization's senior administration recommending that 'political' factors can have serious effects for a global organisation.

Economic Factors: Financial factors such as the development of small businesses in the worldwide scenario suggest that Preventing Another Madoff Reengineering The Secs Investigation Process is thriving in an atmosphere where there is potential development of organisations. Along with this, reality that shop consumers are mainly seeking workplace products for home offices suggests that the market has a climbing pattern of entrepreneurs as well as home services.

Social factors: Social trends in the economy reveal that customers are searching for benefit along with appealing rates. Marketing research shows how the client for Preventing Another Madoff Reengineering The Secs Investigation Process lacks understanding regarding locating options which can offer a mix of ease and inexpensive.

Technological factors: Technology plays an important duty in Preventing Another Madoff Reengineering The Secs Investigation Process's business technique specifically as the organization is piloting Innovation centers which would provide innovation sales and also assistance in the form of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues and Manifestations.

Numerous underlying Organizational Behavior issues can be seen in Preventing Another Madoff Reengineering The Secs Investigation Process's case as highlighted in this section.

Uneasiness about social adjustment: There is concern concerning a social change that would certainly happen when Todd Krasnow leaves from his setting as the Exec Vice President of Marketing with the majority of the team member already revealing unhappiness over this possible move. This expected change has actually created stress in the workplace which has been coupled with the past stress of preparing the firm for a possible merger with House Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is scarcity of employees that can match the demanding setting of a fast-paced organization. Not just does this cause difficulty in locating the ideal people, it places anxiety on new hires as can not stand up to the pace and pressure that the organization anticipates them to bear.

Dual Reporting Lines: Novices find this business culture difficult and also tough to cope with especially as dotted line relationships are indicated to be weak as a whole and objective setup and efficiency examination is still done by the strong line supervisor. This implies that newbies could shed clarity about their respective duties as well as goals particularly as populated line reporting does not keep them in direct communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had actually been speculated that the last would take Krasnow's position came as a strike to her spirits. Lewis might have been capable and also appropriate for the job but the fact that Kransnow's separation would make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Job Insecurity: Anxiety as well as insecurity can be identified as 2 significant problems that Lewis would be dealing with particularly as the merger has now be cancelled as well as two senior executives of the marketing division would certainly be leaving. The entire obligation of the division would be falling on Lewis's shoulders that would not just be in charge of brining regarding a social adjustment yet would likewise need to confirm herself in her new duty.

Inappropriate Administration Design of Leader: Lewis's administration design as well as its conflict with the advertising and marketing division's role can additionally be seen as an OB obstacle especially as she has been made use of to dealing with problems in the operations department where employees are shown to focus on procedures and also obtain them. The advertising and marketing division on the various other hand can be seen as a group of people who are made use of to being supported by Krasnow who focused much more on output than processes.

Interdepartmental Disputes: Interdepartmental differences in between three divisions, advertising and marketing, merchandizing as well as operations specifically over the allocation of the advertising and marketing mix can be identified as an additional OB worry. The marketing division does not share the very same vision as the other two departments concerning the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and operations departments do not concur over the advertising and marketing mix appropriation among one another either.

Fragmentation in Advertising Division: Fragmentation between the advertising and marketing divisions can be identified as one more OB concern which could need additional attention. The reality that the advertising and marketing areas in the marketing division are detached is protecting against both departments from obtaining from each other's experience and experience. Combination of marketing with merchandising and operations would end up being harder if the advertising and marketing department itself is broken down which can be an additional prospective OB issue.

Preventing Another Madoff Reengineering The Secs Investigation Process Analysis

Different concepts have been made use of to explain the scenarios to obtain more quality about the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that juniors are easy as well as lazy, have little passion and withstand change. The difficult variation of this theory stressed threat, limited controls, hazards and penalties. With time it creates low productivity, refined sabotage and also competition (Deal, 2003). Although the circumstance at Preventing Another Madoff Reengineering The Secs Investigation Process is not entirely following Theory X, it can be seen that new hires are locating this setting instead difficult which might at some point lead to a better inclination of the monitoring in the direction of Theory X. As per McGregor's supported sight, which he called Concept Y, the crucial job of the administration is to set up business conditions to ensure that individuals can accomplish their own objectives best by directing their initiatives in the direction of business benefits. If individuals discover no contentment in their work, the management would certainly have little option however to count on concept X and external control (Bargain, 2003). Even while examining Lewis's management design, theory X may have appropriated in the operations department to some extent however the Marketing division would certainly call for reliance on Concept Y in order to get the creative thinking and creativity from the teams.

Tuckman's Teamwork Theory: As far as Lewis's issue about bringing harmony in between the marketing and advertising division is concerned, this would originally lead to clash as talked about by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, throughout the initial stage of team advancement, people may not bond, as they are active discovering their area in the group. By incorporating the marketing and advertising department's job, there might be the same first separate which can cause the 2nd phase of 'storming' where the groups test each other. Nonetheless, it is only during the third phase or 'norming' when they would collaborate to share concepts before the team can produce synergy in the 4th phase 'doing'.

When people are offered with modification, they go into phase one and also so there might be feelings like unhappiness, uncertainty, frustration, anger, concern, rejection and also disorientation.The situation at the marketing division of Preventing Another Madoff Reengineering The Secs Investigation Process is comparable so Lewis can obtain comfy with the idea that it is not phenomenal behavior. It is throughout this phase that Lewis will have to offer support to the division so that they can locate a sense of direction. It can be seen exactly how Krasnow has actually already made this shift less complicated by making Lewis get entailed in the division a year prior to his actual departure.
Vrio Analysis
Maslow's Requirement power structure: The OB problem pertaining to instability at the office has actually been caused first of all by the adjustment in management and second of all by the reality that the merger will certainly no longer be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the significance of 'safety needs as being a lower degree need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe as well as safe' goes to the second level of needs. Prior to a staff member can be made to establish emotionally, he needs to have his 'Physiological 'and also 'Security' needs met. This shows that unless the personnel are made to really feel protected regarding their existing work condition in Preventing Another Madoff Reengineering The Secs Investigation Process they may not reach 'Self-Fulfillment'. (King, 2009).

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

Implication of Analysis.

The OB analysis has actually taken a look at various theories to understand how to manage the present situation handy. The complying with three alternatives have been proposed to help Lewis manage the business difficulties in the marketing department. Each of these choices has actually been recommended for alleviating the shift needed to bring the advertising and marketing division in line with the demands of the market as well as for making the social change that would certainly comply with once the existing leader leaves.

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

Examination of Alternatives.

Combination of Marketing & Advertising Functions: The in-house marketing company of Preventing Another Madoff Reengineering The Secs Investigation Process is already toughness for the company in terms of saving up on expenses associated with marketing as well as promotion. Considering that no brand-new recruitment has actually been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the marketing function, this is a desirable possibility for integrating the advertising and marketing features. Judith Shapiro that has earlier been talked to by Lewis during the earlier merging days has proficiency in business-to-business advertising along with agency as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both marketing and advertising functions.

The advantage of this method is that it will incorporate both features while decreasing the demand for employing an added source for marketing. Lewis would be heading the advertising department and in any kind of case her substitute would be needed for the present duty that she is carrying out. The drawback of this choice is that outside hiring might produce resentment from interior workers who may be eying the setting of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and also Production: Provided the affordable stress as well as high quality work needed from the advertising agency, it is recommended that Lewis ought to permit the production system to be a different function from the advertising unit. Given that many ad agency had these 2 functions as different systems, it makes even more feeling to comply with the norm. Both features may be able to concentrate on their core activates much more effectively. However, the disadvantage of this strategy would be that added prices would have to be birthed for setting up separate production features. A manufacturing head may have to be employed which could enhance overheads for the organization.

Combination of Advertising And Marketing with Procedures: Because Lewis is currently dealing with the marketing as well as operations divisions concurrently; it makes good sense to integrate both features considering that she has been successfully taking care of both ends. The fact that the two departments currently have significant differences over appropriation of sources recommends that this assimilation may be able to produce harmony specifically as Lewis would certainly be heading both ends.However there are different disadvantages of this relocation particularly as it would place excessive worry over Lewis's shoulders. The fact that Lewis needs to adapt her monitoring style for the marketing department recommends that these 2 divisions would be culturally diverse. In addition to this, Lewis might not be able to apply one kind of leadership style to both departments which can result in inadequacy in either one of the two features.


An examination of the three choices suggests that integration of advertising and marketing as well as operations would not be a possible step as a result of the large differences in between the two divisions although that presently Lewis is taking care of both. While splitting up of the manufacturing feature might have been a desirable step for the marketing department, the fact that it would suggest positioning a third function under Lewis's wing indicates this should be avoided as well. The integration of the advertising and marketing division is the best option in terms of getting the optimum arise from the department. An action prepare for this option is gone over below.

Action Strategy.
Lewis will take control of the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

Manufacturing feature will continue to be component of advertising and marketing under advertising and marketing feature.

Lewis will certainly separate herself from procedures.

An autonomous leadership style with worker empowerment will be utilized in advertising department.

Open door plan as well as focus on cross departmental interaction will certainly be focused on getting rid of discord.

Backup plan.

If the integration does not work out as intended, a contingency strategy would follow which would separate the manufacturing feature from the marketing function to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the marketing division without an SVP. Because case the production feature will absolutely be divided by putting it under an SVP manufacturing.