Bankruptcy A Debtors Perspective Case Study Solution


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Bankruptcy A Debtors Perspective Case Study Solution

Background and Facts

Bankruptcy A Debtors Perspective an office products store for little and medium sized businesses has actually lately been associated with planning for a merger with its rival Residence Deport, which has actually influenced efficiency degrees in departmentswith the elderly manager associated with lawful difficulties put forth by the government Profession Compensation. With the Advertising Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the role in the near future. With difficulties in the form of a possible cultural change as well as reduced worker morale, the organization needs a total reengineering initiative at the advertising department.

Issue Declaration

The prospective cultural change at the advertising department of Bankruptcy A Debtors Perspective is enhancing uncertainty in the workplace causing numerous obstacles for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting strategic decisions given that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Trade Compensation's treatment in the process. Provided the fact that the store has a global existence with branches in UK, USA, Canada and Germany, political consider each of these countries might have the ability to affect performance or critical objectives. Federal Profession Commission's antitrust fit versus the merging used up important time of the organization's elderly management recommending that 'political' factors can have major effects for a global service.

Economic Factors: Financial factors such as the appearance of local business in the worldwide situation recommend that Bankruptcy A Debtors Perspective is thriving in a setting where there is possible growth of organisations. In addition to this, reality that shop consumers are mainly seeking workplace materials for home offices recommends that the marketplace has an increasing fad of entrepreneurs and also home based services.

Social factors: Social patterns in the economy show that customers are searching for ease in addition to eye-catching rates. Market research demonstrates how the client for Bankruptcy A Debtors Perspective does not have recognition regarding locating options which can provide a combination of benefit and also affordable.

Technological factors: Technology plays a crucial function in Bankruptcy A Debtors Perspective's business strategy especially as the company is piloting Innovation facilities which would provide modern technology sales as well as assistance in the kind of memory upgrades, peripheral installments. (Recap of BUG in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Business Habits problems can be seen in Bankruptcy A Debtors Perspective's case as highlighted in this section.

Concerns about social adjustment: There is concern about a social adjustment that would happen when Todd Krasnow leaves from his position as the Exec Vice President of Marketing with most of the team member already revealing discontent over this possible move. This expected adjustment has produced anxiety in the workplace which has actually been paired with the previous stress of preparing the company for a prospective merger with Home Deport.

Difficult Work Environment for Newcomers: There is shortage of personnel that can match the difficult environment of a fast-paced organization. Not only does this result in trouble in discovering the right people, it puts tension on brand-new hires as can not hold up against the rate and also pressure that the company anticipates them to birth.

Dual Coverage Lines: Newcomers discover this organizational culture cumbersome and hard to deal with especially as dotted line connections are implied to be weaker generally and unbiased setting as well as efficiency assessment is still done by the strong line manager. This indicates that newcomers can shed quality about their particular roles and also objectives especially as populated line reporting does not keep them in straight communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles even though it had actually been guessed that the last would certainly take Krasnow's setting came as a blow to her spirits. Lewis may have been capable as well as proper for the task however the reality that Kransnow's separation would certainly make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Work Instability: Fear and also instability can be determined as two significant problems that Lewis would be managing especially as the merger has actually now be terminated and also two elderly executives of the advertising department would be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders that would not simply supervise of brining concerning a cultural change however would additionally have to verify herself in her new duty.

Inappropriate Administration Style of Leader: Lewis's management design and its incompatibility with the advertising department's function can likewise be seen as an OB difficulty specifically as she has been made use of to taking care of concerns in the operations department where personnel are educated to focus on processes and also get them. The marketing division on the other hand can be seen as a team of individuals that are made use of to being supported by Krasnow who concentrated extra on result than processes.

Interdepartmental Disputes: Interdepartmental arguments between 3 divisions, advertising and marketing, merchandizing and procedures respectively over the allotment of the marketing mix can be recognized as an additional OB issue. The advertising and marketing division does not share the same vision as the other 2 departments concerning the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and procedures departments do not agree over the marketing mix allotment among one an additional either.

Disintegration in Advertising Department: Fragmentation in between the advertising and marketing departments can be identified as one more OB problem which could require further focus. The truth that the advertising and marketing sections in the advertising and marketing division are detached is stopping both divisions from getting from each other's experience as well as knowledge. Integration of marketing with retailing and also operations would end up being more difficult if the advertising department itself is broken down which can be another prospective OB issue.

Bankruptcy A Debtors Perspective Analysis

Different theories have been used to explain the circumstances to obtain more clarity regarding the situation handy.

McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of managers think that subordinates are easy and careless, have little passion and withstand adjustment. The situation at Bankruptcy A Debtors Perspective is not totally adhering to Concept X, it can be seen that brand-new hires are finding this setting rather demanding which might ultimately lead to a better disposition of the management towards Theory X. Even while examining Lewis's management style, concept X may have been suitable in the procedures department to some level but the Advertising division would require dependence on Concept Y in order to obtain the creative thinking and originality from the groups.

Tuckman's Team effort Theory: As for Lewis's worry regarding bringing consistency between the marketing and advertising department is worried, this would at first cause contrast as discussed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, during the initial phase of team growth, individuals might not bond, as they are active finding their area in the team. By combining the marketing and advertising division's work, there might coincide initial disconnect which might bring about the second phase of 'storming' where the teams test one another. However, it is only throughout the third phase or 'norming' when they would certainly come together to share concepts before the team can cause harmony in the 4th stage 'executing'.

Bridges' Change Design: According To William Bridge's theory (appendix 4), individuals are rather awkward with modification, which is evident by the scenario at Bankruptcy A Debtors Perspective The circumstance can be viewed as a regular training course of life if is studied according to Bridge's concept where he discusses that people go through 3 stages of transition when they experience modification. 'Closing, losing and also Letting go', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When individuals are presented with adjustment, they go into stage one and so there may be feelings like despair, unpredictability, stress, anger, anxiety, rejection and disorientation.The scenario at the advertising and marketing department of Bankruptcy A Debtors Perspective is similar so Lewis can obtain comfy with the concept that it is not remarkable actions. In the 2nd phase, there might be a demand to connect the void in between the brand-new and old society so Lewis may have to face this experience when Krasnow leaves. There may be reduced spirits as well as reduced performance at this stage which ought to not be taken as a problem. It is throughout this phase that Lewis will certainly need to give support to the department so that they can find a sense of direction. It can be seen exactly how Krasnow has actually currently made this change simpler by making Lewis obtain associated with the department a year prior to his real departure. As per Bridges' Version, phase three will produce openness to discovering, High energy and commitment as individuals will welcome the adjustment (Bridges, 2004).

Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has discusses the value of 'protection requires as being a lower level need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel safe and also out of danger' is at the 2nd degree of requirements. Prior to an employee can be made to develop psychologically, he needs to have his 'Physical 'and 'Safety and security' needs satisfied.

SWOT Analysis for Bankruptcy A Debtors Perspective Case Study

Implication of Analysis.

The OB analysis has considered various concepts to understand just how to manage the current scenario available. The complying with three choices have been proposed to assist Lewis take care of the organizational difficulties in the advertising division. Each of these choices has been suggested for easing the change needed to bring the advertising division in accordance with the demands of the market and for making the social modification that would certainly follow as soon as the existing leader leaves.

Combination of advertising and marketing features. Dividing Adverting and Manufacturing functions. Integration of Marketing with Workflow.

Evaluation of Alternatives.

Integration of Advertising & Marketing Functions: The in-house advertising and marketing company of Bankruptcy A Debtors Perspective is currently strength for the company in regards to conserving up on overheads connected to advertising as well as promotion. Since no new employment has been done after Bridget Cole's departure with the reporting line being straight appointed to Krasnow for the advertising and marketing function, this is a favorable opportunity for incorporating the marketing and advertising features. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merger days has competence in business-to-business marketing along with company and retail advertising experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to deal with both marketing and advertising functions.

The benefit of this method is that it will certainly integrate both features while reducing the requirement for hiring an additional source for advertising. Along with this, Lewis would certainly be heading the advertising and marketing division as well as all the same her substitute would be needed for the existing role that she is executing. The drawback of this option is that external hiring might bring about bitterness from internal employees who may be eying the placement of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and also Manufacturing: Provided the affordable stress and also high quality work required from the advertising agency, it is suggested that Lewis should allow the production unit to be a different feature from the advertising and marketing device. Considering that a lot of advertising firms had these 2 features as different devices, it makes more feeling to comply with the norm.

Combination of Marketing with Operations: Given that Lewis is currently taking care of the advertising as well as operations departments concurrently; it makes sense to integrate the 2 functions considering that she has been efficiently taking care of both ends. The fact that Lewis has to adapt her administration design for the advertising and marketing department suggests that these two divisions would be culturally diverse.


An analysis of the 3 choices suggests that integration of advertising as well as procedures would not be a viable action due to the substantial differences in between the two departments regardless of the reality that currently Lewis is dealing with both. While splitting up of the production function may have been a favorable action for the advertising and marketing department, the truth that it would certainly mean positioning a third feature under Lewis's wing suggests this ought to be prevented.

Activity Strategy.

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

Advertising and Marketing functions would be combined.

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

Manufacturing function will remain part of advertising and marketing under advertising feature.

Lewis will certainly divide herself from procedures.

An autonomous leadership style with worker empowerment will be made use of in advertising and marketing department.

Open up door plan and focus on cross departmental interaction will be focused on eliminating discord.

Backup plan.

If the combination does not exercise as planned, a contingency plan would comply with which would certainly separate the manufacturing function from the advertising function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing division without an SVP. Because case the production function will most definitely be separated by positioning it under an SVP manufacturing.