Streamline The Abc Of A Merger B Building The New Organization Case Study Solution


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Streamline The Abc Of A Merger B Building The New Organization Case Study Analysis

Background and Facts

Streamline The Abc Of A Merger B Building The New Organization an office products merchant for small and average sized services has actually recently been associated with preparing for a merger with its competitor House Deport, which has impacted effectiveness degrees in departmentswith the elderly manager involved in lawful problems presented by the government Profession Compensation. With the Advertising and marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the duty in the future. With obstacles in the type of a potential cultural change as well as low staff member morale, the company wants a complete reengineering initiative at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The possible social modification at the advertising division of Streamline The Abc Of A Merger B Building The New Organization is enhancing uncertainty in the working environment causing different obstacles for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in influencing calculated decisions since Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Trade Compensation's intervention while doing so. Offered the reality that the shop has an international presence with branches in UK, USA, Canada and also Germany, political factors in each of these countries might have the ability to influence efficiency or tactical goals. Federal Trade Commission's antitrust fit against the merger used up beneficial time of the organization's senior management recommending that 'political' factors can have serious implications for a global service.

Economic Factors: Financial factors such as the appearance of local business in the global situation recommend that Streamline The Abc Of A Merger B Building The New Organization is growing in a setting where there is potential development of companies. Along with this, truth that shop clients are mainly trying to find office products for office suggests that the market has a climbing trend of entrepreneurs as well as home businesses.

Social factors: Social trends in the economic situation show that clients are trying to find ease along with attractive costs. Marketing research shows how the client for Streamline The Abc Of A Merger B Building The New Organization lacks recognition about finding options which can supply a mix of convenience as well as low costs.

Technical factors: Technology plays an essential role in Streamline The Abc Of A Merger B Building The New Organization's business approach specifically as the organization is piloting Innovation facilities which would certainly offer modern technology sales and also support in the kind of memory upgrades, peripheral installations. (Summary of BUG in appendix 2).

OB Issues and Manifestations.

Numerous underlying Organizational Actions problems can be seen in Streamline The Abc Of A Merger B Building The New Organization's case as highlighted in this area.

Concerns regarding cultural modification: There is apprehension regarding a social adjustment that would certainly happen once Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with the majority of the employee already showing discontent over this prospective step. This expected adjustment has actually developed stress in the workplace which has actually been coupled with the previous tension of preparing the company for a possible merger with House Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is scarcity of workers that can match the difficult setting of a hectic organization. Not only does this result in trouble in locating the right people, it puts stress on brand-new hires as can not withstand the pace as well as stress that the organization expects them to bear.

Double Coverage Lines: Newcomers discover this organizational society troublesome and also tough to cope with particularly as populated line partnerships are suggested to be weak as a whole and also unbiased setting as well as efficiency examination is still done by the solid line manager. This suggests that newbies can lose quality concerning their particular duties and also objectives specifically as dotted line coverage does not maintain them in direct communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had been hypothesized that the latter would take Krasnow's setting came as an impact to her spirits. Lewis may have been capable and also proper for the task yet the reality that Kransnow's departure would make Coles a straight report to Lewis may have been the reason for Coles' resignation from solutions.

Anxiety & Job Insecurity: Concern and also insecurity can be recognized as 2 significant worries that Lewis would be dealing with specifically as the merger has currently be terminated and also 2 senior execs of the advertising and marketing division would be leaving. The whole duty of the department would certainly be dropping on Lewis's shoulders who would certainly not just supervise of brining regarding a social adjustment yet would likewise need to show herself in her brand-new function.

Incompatible Management Design of Leader: Lewis's management style and also its conflict with the marketing department's duty can also be viewed as an OB obstacle specifically as she has actually been made use of to managing concerns in the operations division where employees are educated to focus on processes and obtain them right. The marketing division on the other hand can be seen as a team of people who are made use of to being supported by Krasnow that concentrated more on output than processes.

Interdepartmental Differences: Interdepartmental disagreements between three departments, advertising, merchandizing as well as procedures specifically over the allowance of the advertising and marketing mix can be determined as one more OB issue. The advertising and marketing division does not share the very same vision as the other two departments concerning the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and procedures departments do not agree over the marketing mix allocation among one an additional either.

Disintegration in Marketing Department: Disintegration between the marketing and advertising departments can be recognized as one more OB problem which could require additional attention. The truth that the marketing and advertising sections in the advertising and marketing department are detached is protecting against both departments from gaining from each various other's experience as well as experience. Combination of advertising with merchandising and operations would certainly come to be more difficult if the advertising and marketing department itself is broken down which can be one more possible OB concern.

Streamline The Abc Of A Merger B Building The New Organization Analysis

Various concepts have actually been used to discuss the conditions to get additional clarity about the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that subordinates are passive and also careless, have little aspiration and resist adjustment. The difficult version of this theory highlighted threat, limited controls, threats as well as punishments. Gradually it creates reduced efficiency, refined sabotage and also competition (Offer, 2003). The circumstance at Streamline The Abc Of A Merger B Building The New Organization is not completely adhering to Concept X, it can be seen that brand-new hires are discovering this atmosphere instead stressful which may at some point lead to a greater inclination of the administration in the direction of Theory X. As per McGregor's promoted view, which he called Concept Y, the necessary job of the monitoring is to arrange business conditions to make sure that individuals can achieve their very own objectives best by directing their initiatives towards business benefits. If individuals locate no satisfaction in their work, the monitoring would certainly have little option but to count on theory X and exterior control (Offer, 2003). Even while examining Lewis's management style, theory X may have appropriated in the procedures department to some extent yet the Advertising and marketing division would need dependence on Theory Y so as to get the creativity and also originality from the teams.

Tuckman's Team effort Theory: As for Lewis's worry regarding bringing consistency in between the marketing and advertising division is worried, this would originally cause conflict as discussed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's theory displayed in appendix 3, throughout the first stage of team growth, individuals may not bond, as they are busy discovering their area in the team. By incorporating the advertising and marketing division's work, there may coincide preliminary disconnect which could bring about the second stage of 'storming' where the teams test each other. However, it is only during the third phase or 'norming' when they would certainly collaborate to share suggestions before the group can produce synergy in the 4th phase 'doing'.

When people are provided with adjustment, they get in stage one and also so there might be feelings like sadness, uncertainty, irritation, anger, concern, denial and disorientation.The situation at the advertising and marketing department of Streamline The Abc Of A Merger B Building The New Organization is comparable so Lewis can obtain comfy with the concept that it is not remarkable behavior. It is throughout this phase that Lewis will have to give advice to the department so that they can find a feeling of instructions. It can be seen exactly how Krasnow has currently made this shift much easier by making Lewis obtain involved in the division a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has discusses the relevance of 'safety needs as being a reduced level need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel protected as well as out of risk' is at the second degree of demands. Prior to a worker can be made to create psychologically, he requires to have his 'Physiological 'and 'Safety and security' needs satisfied.

SWOT Analysis for Streamline The Abc Of A Merger B Building The New Organization Case Study

Effects of Analysis.

The OB analysis has actually looked at different theories to recognize just how to manage the present circumstance at hand. The complying with 3 choices have actually been suggested to assist Lewis deal with the organizational challenges in the advertising division. Each of these alternatives has actually been proposed for easing the transition needed to bring the marketing division according to the needs of the market as well as for making the cultural adjustment that would certainly comply with once the existing leader leaves.

Integration of marketing and advertising functions. Dividing Adverting as well as Manufacturing functions. Integration of Advertising And Marketing with Workflow.

Assessment of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The in-house advertising and marketing agency of Streamline The Abc Of A Merger B Building The New Organization is currently strength for the company in regards to conserving up on overheads related to marketing and also promotion. Given that no brand-new employment has actually been done after Bridget Cole's separation with the reporting line being straight assigned to Krasnow for the advertising and marketing function, this is a beneficial possibility for incorporating the marketing and advertising features. Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merger days has experience in business-to-business advertising along with firm as well as retail advertising experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both marketing and advertising features.

The benefit of this method is that it will certainly incorporate both features while lowering the demand for hiring an added resource for marketing. Along with this, Lewis would certainly be heading the marketing division and also regardless her replacement would be required for the existing role that she is performing. The drawback of this option is that exterior hiring might bring about animosity from inner employees that may be considering the position of EVP after Lewis takes over Krasnow's setting.

Separating Adverting as well as Manufacturing: Given the affordable stress and high quality job called for from the ad agency, it is advised that Lewis needs to allow the manufacturing unit to be a separate feature from the marketing system. Since a lot of ad agency had these 2 features as separate devices, it makes even more feeling to follow the norm. In addition to this, both features might be able to focus on their core triggers extra efficiently. Nonetheless, the negative aspect of this strategy would certainly be that extra costs would have to be borne for setting up different production features. In addition to this, a production head may need to be worked with which might enhance expenses for the company.

Assimilation of Advertising with Workflows: Given that Lewis is currently taking treatment of the marketing and procedures departments simultaneously; it makes sense to integrate the two features considering that she has been successfully taking care of both ends. The reality that Lewis has to adjust her management style for the advertising and marketing division suggests that these two divisions would certainly be culturally varied.


An evaluation of the three alternatives shows that integration of advertising and procedures would certainly not be a possible step due to the large distinctions in between the two departments despite the fact that currently Lewis is managing both. While separation of the production feature might have been a desirable relocation for the advertising and marketing division, the truth that it would certainly indicate putting a 3rd feature under Lewis's wing indicates this need to be avoided.

Action Plan.
Lewis will take over the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Production feature will continue to be part of marketing under advertising function.

Lewis will divide herself from procedures.

A democratic leadership style with worker empowerment will be made use of in marketing department.

Open door plan as well as focus on cross department interaction will certainly be aimed at removing dissonance.

Contingency strategy.

If the assimilation does not exercise as prepared, a backup strategy would certainly follow which would separate the production function from the advertising function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the marketing department without an SVP. Because case the production function will definitely be divided by positioning it under an SVP production.