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


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

Background and Facts

Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B an office products store for tiny and average sized organisations has actually recently been involved in preparing for a merger with its competitor Residence Deport, which has influenced performance levels in departmentswith the senior supervisor involved in legal complications presented by the federal Profession Commission. With the Marketing Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the current head of operations has been asked to take the role in the future. With difficulties in the type of a potential cultural modification as well as reduced staff member spirits, the company requires a full reengineering effort at the marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The potential cultural modification at the advertising division of Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B is raising uncertainty in the workplace leading to different challenges for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing calculated choices considering that Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Profession Commission's treatment while doing so. Provided the fact that the store has a worldwide existence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these nations might have the ability to affect performance or calculated goals. Federal Profession Payment's antitrust suit against the merging took up valuable time of the organization's elderly monitoring suggesting that 'political' factors can have significant implications for a global service.

Economic Factors: Financial factors such as the appearance of local business in the global scenario recommend that Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B is flourishing in a setting where there is prospective development of organisations. Reality that store clients are primarily looking for office materials for residence workplaces recommends that the market has an increasing fad of entrepreneurs as well as home based organisations.

Social factors: Social trends in the economic situation show that consumers are seeking benefit along with attractive prices. Marketing research demonstrates how the consumer for Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B does not have awareness concerning locating solutions which can provide a mix of comfort and also affordable.

Technological factors: Innovation plays a crucial duty in Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B's organisation technique especially as the organization is piloting Modern technology centers which would offer innovation sales and also support in the kind of memory upgrades, peripheral installments. (Recap of BUG in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Business Behavior problems can be seen in Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B's case as highlighted in this section.

Worries concerning social adjustment: There is worry about a cultural change that would certainly take place once Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with a lot of the team member already revealing discontent over this possible action. This expected adjustment has actually created tension in the work environment which has actually been paired with the past tension of preparing the company for a prospective merging with House Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is scarcity of workers that can match the demanding setting of a hectic company. Not only does this bring about difficulty in finding the right individuals, it places tension on brand-new hires as can not endure the speed as well as stress that the organization expects them to birth.

Dual Coverage Lines: Beginners discover this organizational culture difficult and also hard to cope with especially as populated line partnerships are meant to be weaker in general and also objective setup and also performance examination is still done by the solid line supervisor. This suggests that beginners could shed quality about their respective duties as well as purposes specifically as populated line reporting does not keep them in straight interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had actually been speculated that the latter would take Krasnow's setting came as a blow to her spirits. Lewis might have been qualified and appropriate for the work yet the truth that Kransnow's separation would make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Task Instability: Anxiety and also insecurity can be recognized as two significant concerns that Lewis would be handling especially as the merging has currently be cancelled and 2 elderly executives of the advertising department would be leaving. The entire duty of the department would certainly be dropping on Lewis's shoulders that would not simply supervise of brining about a social change however would certainly additionally have to prove herself in her new function.

Incompatible Management Design of Leader: Lewis's administration style as well as its conflict with the advertising and marketing division's function can additionally be seen as an OB obstacle particularly as she has been made use of to managing problems in the operations division where workers are educated to concentrate on procedures and obtain them right. The advertising department on the various other hand can be viewed as a team of individuals who are used to being nurtured by Krasnow who concentrated more on output than processes.

Interdepartmental Disputes: Interdepartmental differences between 3 divisions, advertising and marketing, merchandizing and operations respectively over the allowance of the advertising mix can be recognized as another OB issue. Although the marketing division does not share the same vision as the other two divisions pertaining to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and procedures divisions do not concur over the advertising mix allocation among one another either.

Fragmentation in Advertising And Marketing Division: Disintegration between the marketing and advertising divisions can be identified as another OB problem which might require further interest. The reality that the marketing and advertising sections in the advertising and marketing department are separated is stopping both departments from getting from each various other's experience as well as competence. Combination of advertising and marketing with merchandising as well as operations would certainly become more difficult if the advertising division itself is disintegrated which can be an additional potential OB issue.

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

Numerous theories have been used to describe the conditions to get additional clarity about the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that subordinates are passive as well as careless, have little aspiration as well as withstand adjustment. The situation at Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B is not totally adhering to Concept X, it can be seen that brand-new hires are finding this environment instead demanding which might ultimately lead to a higher inclination of the monitoring in the direction of Concept X. Even while examining Lewis's management style, concept X might have been suitable in the procedures department to some extent but the Advertising and marketing division would certainly require reliance on Concept Y in order to obtain the creative thinking as well as creativity from the teams.

Tuckman's Teamwork Theory: As much as Lewis's issue regarding bringing consistency in between the advertising and marketing and also advertising and marketing department is worried, this would originally lead to clash as talked about by Bruce Tuckman in his 'Synergy Concept'. By incorporating the advertising and marketing as well as advertising and marketing division's job, there might be the exact same preliminary separate which could lead to the 2nd stage of 'storming' where the teams test one an additional.

Bridges' Shift Model: As per William Bridge's concept (appendix 4), people are fairly uneasy with change, which is evident by the situation at Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B The scenario can be viewed as a regular program of life if is studied based on Bridge's concept where he describes that people experience 3 phases of transition when they experience adjustment. 'Closing, shedding and also Releasing', The Neutral Area and 'The New Starting' (Bridges, 2004). When individuals are presented with adjustment, they get in stage one and so there may be emotions like sadness, uncertainty, stress, rage, worry, rejection as well as disorientation.The situation at the advertising and marketing department of Dr Sergio Ceccuzzi And Smi Negotiating Cross Border Acquisitions In Europe B is comparable so Lewis can get comfy with the concept that it is not amazing behavior. In the second phase, there might be a requirement to connect the void between the brand-new and also old society so Lewis might have to face this ordeal when Krasnow leaves. There might be low spirits and reduced efficiency at this phase which ought to not be taken as a problem. It is during this stage that Lewis will certainly need to provide guidance to the department to ensure that they can discover an orientation. It can be seen how Krasnow has actually currently made this transition less complicated by making Lewis obtain associated with the division a year before his real separation. As per Bridges' Model, stage 3 will certainly bring about visibility to knowing, High power and also commitment as individuals will welcome the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has goes over the value of 'security requires as being a lower degree need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel safe and secure and out of threat' is at the second level of needs. Before a worker can be made to establish emotionally, he requires to have his 'Physical 'and also 'Safety and security' needs met.

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

Ramification of Analysis.

The OB analysis has actually looked at various concepts to comprehend just how to manage the present scenario at hand. The adhering to three choices have actually been proposed to assist Lewis manage the organizational obstacles in the marketing division. Each of these options has actually been proposed for reducing the shift needed to bring the advertising and marketing department according to the needs of the market and for making the cultural change that would certainly adhere to once the current leader leaves.

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

Analysis of Alternatives.

Integration of Advertising And Marketing & Advertising And Marketing Functions: The internal marketing firm 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 connected to advertising as well as promotion. Given that no brand-new employment has been done after Bridget Cole's separation with the coverage line being straight designated to Krasnow for the advertising function, this is a favorable opportunity for incorporating the advertising and marketing features. Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merging days has experience in business-to-business advertising along with agency as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to handle both marketing and advertising features.

The benefit of this technique is that it will certainly incorporate both features while minimizing the requirement for employing an extra source for marketing. Along with this, Lewis would certainly be heading the advertising department and also all the same her substitute would be needed for the existing role that she is carrying out. The downside of this alternative is that outside hiring might bring about bitterness from interior workers that might be looking at the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Manufacturing: Provided the affordable pressures and high quality work needed from the advertising agency, it is advised that Lewis should allow the production system to be a different feature from the advertising unit. Because most advertising agencies had these 2 functions as separate devices, it makes more sense to follow the norm. In addition to this, both functions might have the ability to concentrate on their core activates extra efficiently. The disadvantage of this technique would be that added costs would have to be birthed for setting up separate production functions. Along with this, a production head might have to be employed which could raise expenses for the organization.

Assimilation of Marketing with Workflows: Because Lewis is currently taking care of the advertising and also procedures departments concurrently; it makes feeling to incorporate the 2 functions since she has actually been efficiently taking care of both ends. The reality that Lewis has to adjust her administration design for the marketing department suggests that these 2 divisions would be culturally diverse.


An analysis of the 3 choices shows that assimilation of advertising and marketing as well as procedures would not be a feasible relocation due to the vast differences in between the 2 departments regardless of the reality that currently Lewis is dealing with both. While separation of the production feature might have been a positive step for the advertising and marketing division, the reality that it would mean putting a 3rd function under Lewis's wing suggests this should be avoided.

Activity Strategy.
Lewis will certainly take control of the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

Manufacturing feature will certainly stay component of marketing under advertising feature.

Lewis will certainly separate herself from operations.

An autonomous management design with staff member empowerment will certainly be made use of in marketing department.

Open door plan as well as emphasis on cross departmental interaction will be targeted at removing disharmony.

Backup strategy.

If the assimilation does not work out as intended, a contingency strategy would follow which would certainly divide the manufacturing feature from the marketing feature to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing department without an SVP. Because case the production function will absolutely be separated by positioning it under an SVP production.