Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B Case Study Help


Home >> Darden >> Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B >>

Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B Case Study Solution

Background and Facts

Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B a workplace materials retailer for little and moderate sized businesses has lately been associated with preparing for a merger with its rival Home Deport, which has impacted performance levels in departmentswith the senior manager involved in lawful difficulties presented by the government Trade Commission. With the Advertising and marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the future. With difficulties in the kind of a potential cultural modification and reduced worker spirits, the company is in need of a total reengineering initiative at the advertising department.

Problem Statement

The potential cultural change at the marketing division of Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B is enhancing unpredictability in the workplace leading to various obstacles 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 major duty in influencing calculated decisions considering that Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Profession Commission's intervention in the process. Offered the fact that the shop has a worldwide visibility with branches in UK, U.S.A., Canada and also Germany, political consider each of these nations might be able to affect efficiency or calculated objectives. Federal Trade Commission's antitrust suit versus the merging used up valuable time of the organization's senior management suggesting that 'political' factors can have major effects for a worldwide business.

Economic Factors: Economic factors such as the development of small companies in the global situation recommend that Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B is growing in an atmosphere where there is possible development of services. In addition to this, fact that shop customers are primarily looking for office materials for office recommends that the marketplace has a climbing trend of business owners and also home based services.

Social factors: Social trends in the economy show that consumers are looking for ease along with eye-catching rates. Market research demonstrates how the client for Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B lacks recognition concerning finding remedies which can offer a combination of comfort as well as low costs.

Technical factors: Innovation plays a crucial function in Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B's service method specifically as the company is piloting Innovation centers which would certainly supply technology sales and also support in the kind of memory upgrades, peripheral setups. (Recap of PARASITE in appendix 2).

OB Issues and also Manifestations.

A number of underlying Organizational Behavior problems can be seen in Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B's case as highlighted in this area.

Uneasiness about social change: There is apprehension about a social adjustment that would certainly happen when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising with a lot of the team member already revealing discontent over this potential step. This predicted change has actually developed tension in the work environment which has actually been paired with the past stress and anxiety of preparing the firm for a prospective merger with Home Deport.

Difficult Work Setting for Newcomers: There is shortage of personnel that can match the stressful setting of a busy organization. Not just does this result in trouble in discovering the right people, it places stress on brand-new hires as can not hold up against the rate as well as pressure that the company anticipates them to bear.

Double Coverage Lines: Newbies find this business society difficult and also hard to deal with specifically as populated line connections are meant to be weaker as a whole as well as unbiased setting and also efficiency analysis is still done by the strong line supervisor. This means that beginners could shed quality about their particular functions and goals specifically as dotted line coverage does not keep them in direct interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had been hypothesized that the last would certainly take Krasnow's setting came as an impact to her morale. Lewis might have been capable as well as ideal for the work yet the truth that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Concern & Job Insecurity: Anxiety as well as instability can be determined as two major problems that Lewis would be taking care of especially as the merger has actually currently be terminated and 2 senior executives of the marketing department would be leaving. The entire responsibility of the division would be falling on Lewis's shoulders who would not just be in charge of brining regarding a social modification yet would certainly also need to confirm herself in her new function.

Incompatible Administration Style of Leader: Lewis's administration style and also its conflict with the advertising and marketing division's function can additionally be seen as an OB obstacle especially as she has actually been made use of to managing issues in the operations department where personnel are educated to focus on procedures as well as obtain them right. The advertising and marketing division on the various other hand can be viewed as a team of individuals that are utilized to being supported by Krasnow that concentrated much more on output than procedures.

Interdepartmental Differences: Interdepartmental arguments between 3 divisions, advertising and marketing, merchandizing as well as procedures respectively over the allowance of the advertising and marketing mix can be determined as one more OB issue. Although the marketing division does not share the exact same vision as the various other 2 divisions regarding the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and also procedures divisions do not agree over the advertising and marketing mix allocation among each other either.

Fragmentation in Advertising Division: Disintegration in between the marketing and advertising departments can be identified as an additional OB issue which might need more focus. The truth that the advertising and marketing sections in the advertising division are disconnected is avoiding both departments from acquiring from each various other's experience as well as expertise. Integration of marketing with merchandising as well as procedures would end up being harder if the advertising and marketing division itself is disintegrated which can be one more prospective OB worry.

Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B Analysis

Different concepts have actually been made use of to discuss the circumstances to obtain more quality concerning the circumstance at hand.

McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers believe that subordinates are passive and lazy, have little passion and stand up to modification. The circumstance at Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B is not completely adhering to Theory X, it can be seen that new hires are locating this atmosphere rather difficult which may ultimately lead to a higher disposition of the management in the direction of Concept X. Also while assessing Lewis's management style, concept X might have been appropriate in the operations department to some degree but the Marketing division would call for reliance on Theory Y in order to obtain the creative thinking and creativity from the groups.

Tuckman's Team effort Concept: As far as Lewis's worry concerning bringing consistency in between the marketing as well as advertising division is worried, this would initially lead to conflict as reviewed by Bruce Tuckman in his 'Synergy Concept'. By combining the marketing as well as advertising and marketing department's work, there may be the exact same preliminary separate which could lead to the 2nd stage of 'storming' where the groups test one another.

Bridges' Change Model: As per William Bridge's theory (appendix 4), individuals are rather uneasy with adjustment, which is apparent by the situation at Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B The circumstance can be viewed as a typical course of life if is studied based on Bridge's concept where he describes that people undergo three phases of change when they experience change. 'Ending, losing as well as Releasing', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they go into phase one therefore there might be emotions like unhappiness, uncertainty, aggravation, temper, anxiety, rejection and also disorientation.The situation at the advertising division of Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B is similar so Lewis can get comfy with the concept that it is not phenomenal habits. In the 2nd phase, there may be a demand to bridge the space in between the brand-new and old society so Lewis might have to face this challenge when Krasnow leaves. There may be low spirits and also reduced performance at this stage which ought to not be taken as a trouble. It is during this phase that Lewis will certainly have to offer guidance to the department so that they can discover a sense of direction. It can be seen just how Krasnow has actually already made this transition simpler by making Lewis obtain involved in the department a year prior to his actual departure. According to Bridges' Model, phase three will certainly bring about visibility to understanding, High power and commitment as people will certainly accept the adjustment (Bridges, 2004).

Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has talks about the relevance of 'protection requires as being a lower degree demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel safe and out of threat' is at the 2nd degree of requirements. Before a worker can be made to establish emotionally, he requires to have his 'Physiological 'and 'Safety and security' needs met.

SWOT Analysis for Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B Case Study

Implication of Analysis.

The OB analysis has actually looked at numerous theories to understand how to manage the existing situation handy. The complying with 3 options have actually been proposed to aid Lewis manage the organizational obstacles in the advertising division. Each of these choices has actually been recommended for reducing the change required to bring the advertising and marketing division according to the needs of the market and for making the cultural change that would certainly adhere to once the present leader leaves.

Combination of marketing and advertising functions. Separating Adverting as well as Production features. Assimilation of Advertising with Procedures.

Assessment of Alternatives.

Combination of Advertising And Marketing & Advertising Functions: The in-house marketing agency of Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B is already toughness for the company in regards to conserving up on expenses related to advertising and marketing and also promo. Considering that no brand-new employment has actually been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the advertising function, this is a positive chance for incorporating the marketing and advertising functions. Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merger days has know-how in business-to-business marketing together with firm and retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing features.

The benefit of this technique is that it will certainly integrate the two functions while reducing the demand for hiring an added resource for advertising. In addition to this, Lewis would be heading the marketing division and also regardless her substitute would certainly be needed for the current function that she is performing. The downside of this option is that exterior hiring may produce resentment from interior employees who might be considering the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting as well as Manufacturing: Provided the competitive pressures and also high quality job called for from the marketing company, it is recommended that Lewis must allow the manufacturing system to be a different feature from the advertising and marketing system. Considering that the majority of marketing companies had these two features as separate devices, it makes even more sense to comply with the norm.

Assimilation of Advertising with Workflows: Since Lewis is currently taking care of the marketing and also operations divisions at the same time; it makes feeling to integrate the two functions since she has been efficiently taking treatment of both ends. The truth that Lewis has to adapt her monitoring design for the advertising and marketing department recommends that these two divisions would be culturally varied.


An assessment of the 3 choices suggests that assimilation of advertising and marketing and also operations would not be a practical action due to the vast differences between the two departments although that presently Lewis is managing both. While splitting up of the manufacturing feature might have been a desirable relocation for the advertising department, the reality that it would indicate placing a 3rd feature under Lewis's wing implies this should be avoided as well. The combination of the advertising and marketing division is the most effective option in regards to obtaining the optimum arise from the department. An activity prepare for this option is discussed below.

Activity Plan.

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

Marketing and advertising functions would certainly be merged.

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

Production feature will certainly continue to be component of advertising under advertising and marketing function.

Lewis will certainly separate herself from procedures.

An autonomous management design with employee empowerment will certainly be utilized in marketing division.

Open up door plan and also focus on cross departmental communication will be aimed at removing dissonance.

Backup strategy.

If the integration does not exercise as intended, a contingency strategy would adhere to which would divide the manufacturing function from the advertising and marketing feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the marketing department without an SVP. Because case the production function will most definitely be divided by placing it under an SVP manufacturing.