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Walnut Venture Associates A Rbs Group Investment Memorandum Case Study Solution

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Walnut Venture Associates A Rbs Group Investment Memorandum Case Study Solution

Background and Facts

Walnut Venture Associates A Rbs Group Investment Memorandum an office supplies merchant for little and moderate sized organisations has lately been involved in preparing for a merging with its competitor Home Deport, which has influenced performance levels in departmentswith the elderly manager associated with lawful problems put forth by the federal Profession Compensation. With the Advertising Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the near future. With challenges in the type of a potential cultural adjustment as well as low worker spirits, the organization needs a complete reengineering effort at the advertising and marketing division.

Trouble Declaration

The prospective social adjustment at the advertising department of Walnut Venture Associates A Rbs Group Investment Memorandum is increasing uncertainty in the workplace bring about numerous obstacles for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting tactical decisions since Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Profession Payment's treatment at the same time. Provided the reality that the shop has an international visibility with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations might have the ability to affect efficiency or tactical goals. Federal Trade Commission's antitrust fit against the merger took up beneficial time of the organization's senior administration suggesting that 'political' factors can have severe ramifications for a worldwide service.

Economic Factors: Economic factors such as the introduction of small businesses in the international scenario suggest that Walnut Venture Associates A Rbs Group Investment Memorandum is flourishing in a setting where there is possible growth of businesses. Reality that shop customers are primarily looking for workplace products for residence workplaces recommends that the market has a rising fad of business owners and residence based organisations.

Social factors: Social trends in the economic climate show that customers are searching for ease along with eye-catching costs. Marketing research shows how the consumer for Walnut Venture Associates A Rbs Group Investment Memorandum does not have understanding concerning discovering solutions which can offer a combination of benefit and also affordable.

Technical factors: Modern technology plays an important function in Walnut Venture Associates A Rbs Group Investment Memorandum's service approach particularly as the organization is piloting Innovation facilities which would certainly offer modern technology sales and also support in the kind of memory upgrades, peripheral installments. (Summary of INSECT in appendix 2).

OB Issues as well as Symptoms.

Several underlying Organizational Behavior problems can be seen in Walnut Venture Associates A Rbs Group Investment Memorandum's case as highlighted in this section.

Worries concerning social modification: There is worry about a social adjustment that would certainly happen once Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with most of the team member currently showing unhappiness over this possible step. This expected modification has created anxiety in the workplace which has been paired with the previous anxiety of preparing the company for a possible merging with House Deport.

Demanding Task Setting for Newcomers: There is scarcity of employees that can match the difficult environment of a fast-paced organization. Not just does this lead to problem in discovering the appropriate people, it puts anxiety on brand-new hires as can not withstand the rate as well as stress that the company anticipates them to birth.

Dual Coverage Lines: Beginners find this business society cumbersome and also difficult to manage particularly as populated line connections are meant to be weaker as a whole and also unbiased setup and efficiency analysis is still done by the solid line supervisor. This indicates that beginners can lose quality concerning their respective duties as well as objectives particularly as dotted line reporting does not maintain them in straight communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles even though it had actually been speculated that the latter would certainly take Krasnow's setting came as a blow to her morale. Lewis may have been qualified as well as appropriate for the job however the fact that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Anxiety & Work Instability: Concern as well as instability can be determined as two major issues that Lewis would certainly be dealing with especially as the merger has currently be cancelled and also two elderly executives of the marketing department would be leaving. The whole obligation of the department would be dropping on Lewis's shoulders that would certainly not just be in charge of brining concerning a social adjustment however would certainly additionally need to confirm herself in her new function.

Incompatible Management Design of Leader: Lewis's monitoring design and its incompatibility with the marketing department's function can likewise be seen as an OB difficulty particularly as she has actually been used to taking care of concerns in the procedures division where workers are instructed to focus on processes as well as obtain them. The marketing division on the other hand can be viewed as a group of people that are used to being supported by Krasnow that focused more on outcome than procedures.

Interdepartmental Differences: Interdepartmental differences in between three departments, advertising and marketing, merchandizing and also operations specifically over the allowance of the advertising mix can be identified as an additional OB issue. The advertising department does not share the exact same vision as the other 2 departments pertaining to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and also procedures departments do not agree over the marketing mix allocation among one an additional either.

Fragmentation in Advertising And Marketing Department: Fragmentation between the advertising and marketing divisions can be recognized as one more OB issue which could need further focus. The truth that the advertising and marketing areas in the advertising department are separated is avoiding both divisions from acquiring from each other's experience as well as know-how. Assimilation of advertising and marketing with retailing and procedures would end up being harder if the advertising and marketing department itself is broken down which can be an additional potential OB worry.

Walnut Venture Associates A Rbs Group Investment Memorandum Analysis

Different concepts have actually been used to explain the circumstances to obtain additional clarity regarding the situation at hand.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of supervisors think that subordinates are easy and lazy, have little passion as well as resist change. The scenario at Walnut Venture Associates A Rbs Group Investment Memorandum is not entirely adhering to Concept X, it can be seen that brand-new hires are discovering this environment instead demanding which may eventually lead to a greater inclination of the management towards Theory X. Also while examining Lewis's administration style, theory X might have been suitable in the procedures division to some level yet the Advertising division would require reliance on Concept Y in order to obtain the creativity as well as originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's concern regarding bringing consistency in between the advertising and marketing and also advertising and marketing department is worried, this would initially lead to conflict as talked about by Bruce Tuckman in his 'Teamwork Concept'. By combining the advertising and marketing department's job, there may be the exact same initial detach which could lead to the second phase of 'storming' where the teams test one another.

When individuals are provided with modification, they enter phase one and also so there might be feelings like unhappiness, unpredictability, irritation, rage, concern, denial and also disorientation.The scenario at the advertising division of Walnut Venture Associates A Rbs Group Investment Memorandum is comparable so Lewis can get comfy with the concept that it is not phenomenal habits. It is throughout this phase that Lewis will certainly have to offer advice to the department so that they can find a sense of direction. It can be seen exactly how Krasnow has currently made this change much easier by making Lewis obtain involved in the department a year prior to his actual separation.

Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has goes over the relevance of 'safety and security requires as being a lower degree requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel secure and also out of risk' is at the 2nd degree of needs. Before a worker can be made to create psychologically, he requires to have his 'Physiological 'as well as 'Security' needs met.

SWOT Analysis for Walnut Venture Associates A Rbs Group Investment Memorandum Case Study



Ramification of Analysis.

The OB analysis has checked out different theories to recognize how to handle the existing situation at hand. The adhering to 3 options have actually been recommended to aid Lewis take care of the business difficulties in the advertising division. Each of these alternatives has actually been recommended for relieving the shift required to bring the marketing division according to the requirements of the marketplace as well as for making the cultural change that would certainly adhere to once the current leader leaves.

Integration of advertising and marketing features. Separating Adverting as well as Manufacturing features. Assimilation of Advertising And Marketing with Operations.

Assessment of Alternatives.

Integration of Advertising & Marketing Functions: The in-house advertising and marketing agency of Walnut Venture Associates A Rbs Group Investment Memorandum is already stamina for the company in regards to saving up on overheads associated with advertising as well as promotion. Given that no brand-new employment has been done after Bridget Cole's separation with the coverage line being directly designated to Krasnow for the marketing function, this is a positive possibility for integrating the advertising and marketing functions. Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merging days has know-how in business-to-business marketing together with agency and retail advertising experience. As soon as Krasnow leaves, Lewis can work with 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 integrate both features while reducing the requirement for hiring an added source for marketing. Lewis would be heading the advertising division and also in any type of case her replacement would be required for the current function that she is executing. The disadvantage of this choice is that external hiring may produce bitterness from interior employees that may be looking at the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Production: Provided the affordable stress and high top quality work required from the advertising and marketing company, it is recommended that Lewis should permit the production unit to be a different feature from the advertising and marketing device. Since most advertising and marketing firms had these 2 functions as separate units, it makes more sense to adhere to the standard.

Assimilation of Advertising with Workflows: Since Lewis is already caring for the advertising and operations divisions at the same time; it makes good sense to integrate the two features because she has been effectively dealing with both ends. The truth that the two departments currently have major distinctions over allocation of resources recommends that this integration might have the ability to cause harmony specifically as Lewis would be heading both ends.However there are numerous negative aspects of this move particularly as it would put way too much worry over Lewis's shoulders. The reality that Lewis needs to adapt her management style for the advertising division suggests that these two divisions would certainly be culturally diverse. Lewis might not be able to apply one kind of leadership design to both departments which might result in ineffectiveness in either one of the two features.

Suggestion.



An examination of the three options indicates that integration of advertising and marketing as well as procedures would not be a practical move due to the large distinctions in between the two departments in spite of the reality that currently Lewis is handling both. While separation of the production function might have been a desirable move for the advertising and marketing department, the fact that it would suggest positioning a 3rd feature under Lewis's wing implies this should be avoided.

Action Plan.

Lewis will take over the function of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Production feature will stay component of advertising and marketing under marketing function.

Lewis will divide herself from procedures.

An autonomous leadership design with employee empowerment will be made use of in advertising department.

Open up door policy as well as focus on cross department interaction will be focused on getting rid of discord.

Contingency strategy.

If the assimilation does not work out as prepared, a contingency plan would certainly adhere to which would certainly divide the manufacturing function from the advertising function to decrease 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 department without an SVP. Because case the manufacturing feature will absolutely be separated by putting it under an SVP manufacturing.