Accounting For Manufacturing Companies Case Study Solution


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Accounting For Manufacturing Companies Case Study Solution

Background and Facts

Accounting For Manufacturing Companies an office products store for small as well as average sized organisations has recently been involved in planning for a merging with its competitor Home Deport, which has influenced effectiveness degrees in departmentswith the elderly manager involved in lawful complications put forth by the government Trade Compensation. With the Advertising Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the duty in the near future. With obstacles in the form of a potential social adjustment and also low worker morale, the company requires a full reengineering effort at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The prospective social change at the advertising and marketing department of Accounting For Manufacturing Companies is raising uncertainty in the workplace bring about various difficulties for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting critical choices given that Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Profession Commission's intervention in the process. Offered the truth that the store has a global visibility with branches in UK, USA, Canada and also Germany, political factors in each of these countries might have the ability to affect performance or critical goals. Federal Profession Compensation's antitrust fit versus the merging occupied useful time of the organization's senior management suggesting that 'political' factors can have significant ramifications for a global service.

Economic Factors: Economic factors such as the introduction of small businesses in the international situation recommend that Accounting For Manufacturing Companies is flourishing in an environment where there is potential development of companies. Truth that shop clients are mostly looking for workplace supplies for house workplaces suggests that the market has a climbing trend of entrepreneurs as well as house based businesses.

Social factors: Social patterns in the economy reveal that customers are trying to find benefit in addition to attractive rates. Market research demonstrates how the consumer for Accounting For Manufacturing Companies lacks awareness about locating services which can provide a combination of convenience and also low costs.

Technological factors: Modern technology plays an essential function in Accounting For Manufacturing Companies's service approach specifically as the company is piloting Modern technology centers which would certainly provide modern technology sales as well as assistance in the type of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues as well as Effects.

Numerous underlying Business Habits concerns can be seen in Accounting For Manufacturing Companies's case as highlighted in this section.

Apprehensions about social modification: There is uneasiness about a social change that would take place when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with most of the staff members already showing unhappiness over this prospective step. This predicted adjustment has produced stress in the workplace which has been coupled with the previous stress of preparing the firm for a possible merging with House Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is lack of workers that can match the stressful atmosphere of a hectic company. Not just does this result in trouble in discovering the right individuals, it places tension on brand-new hires as can not stand up to the rate and also stress that the company anticipates them to birth.

Twin Reporting Lines: Newbies discover this organizational society cumbersome and also difficult to cope with specifically as dotted line relationships are meant to be weak generally and also objective setting and also efficiency evaluation is still done by the solid line supervisor. This means that newcomers could lose clearness regarding their corresponding roles and also purposes particularly as populated line coverage does not keep them in straight communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had been speculated that the latter would take Krasnow's position came as a blow to her morale. Lewis may have been qualified and proper for the task yet the fact that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Task Insecurity: Worry as well as instability can be determined as 2 major issues that Lewis would be taking care of specifically as the merger has currently be cancelled and also 2 elderly execs of the marketing department would be leaving. The whole duty of the department would be dropping on Lewis's shoulders who would not just be in charge of brining concerning a social adjustment but would likewise have to confirm herself in her brand-new duty.

Incompatible Administration Design of Leader: Lewis's administration style and also its incompatibility with the advertising and marketing division's duty can additionally be seen as an OB challenge especially as she has been utilized to managing problems in the operations division where personnel are shown to focus on procedures and get them right. The advertising and marketing department on the other hand can be viewed as a group of people who are used to being nurtured by Krasnow who concentrated more on outcome than procedures.

Interdepartmental Differences: Interdepartmental differences in between three departments, advertising, merchandizing and procedures respectively over the allowance of the marketing mix can be determined as one more OB concern. The advertising division does not share the same vision as the various other two departments relating to the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and operations divisions do not agree over the marketing mix appropriation amongst one another either.

Disintegration in Marketing Department: Fragmentation in between the marketing and advertising departments can be identified as an additional OB concern which can need further focus. The reality that the advertising and marketing areas in the advertising and marketing department are disconnected is avoiding both divisions from gaining from each various other's experience and know-how. Assimilation of advertising and marketing with retailing and operations would certainly end up being harder if the advertising department itself is degenerated which can be an additional possible OB concern.

Accounting For Manufacturing Companies Analysis

Different concepts have been used to discuss the situations to get further quality concerning the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that staffs are passive and also careless, have little passion and stand up to modification. The scenario at Accounting For Manufacturing Companies is not entirely following Theory X, it can be seen that new hires are discovering this setting rather difficult which might ultimately lead to a better disposition of the management in the direction of Theory X. Even while assessing Lewis's administration style, theory X may have been appropriate in the operations division to some degree yet the Advertising and marketing department would need reliance on Theory Y in order to obtain the creative thinking as well as originality from the teams.

Tuckman's Synergy Concept: Regarding Lewis's issue regarding bringing harmony in between the advertising and marketing division is concerned, this would originally result in clash as gone over by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, during the first phase of group advancement, individuals may not bond, as they are active finding their area in the group. By incorporating the marketing and advertising division's job, there may be the same initial disconnect which could lead to the 2nd stage of 'storming' where the teams test one another. It is just throughout the third stage or 'norming' when they would come with each other to share suggestions prior to the team can bring about harmony in the fourth phase 'performing'.

When people are provided with change, they enter phase one as well as so there might be emotions like unhappiness, unpredictability, aggravation, rage, concern, rejection and also disorientation.The circumstance at the marketing department of Accounting For Manufacturing Companies is comparable so Lewis can obtain comfy with the suggestion that it is not remarkable actions. It is during this stage that Lewis will have to offer support to the department so that they can locate a feeling of instructions. It can be seen just how Krasnow has actually currently made this change less complicated by making Lewis obtain involved in the division a year before his real departure.
Vrio Analysis
Maslow's Need pecking order: The OB issue pertaining to instability at the workplace has actually been activated first of all by the adjustment in administration and second of all by the reality that the merger will certainly no more be started. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has reviews the value of 'safety needs as being a lower level requirement of a human for causing inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the need to feel safe as well as safe' is at the second degree of requirements. Prior to an employee can be made to establish emotionally, he requires to have his 'Physical 'and 'Safety and security' requires fulfilled. This indicates that unless the workers are made to feel safe and secure concerning their existing work standing in Accounting For Manufacturing Companies they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Accounting For Manufacturing Companies Case Study

Implication of Analysis.

The OB analysis has actually looked at different concepts to recognize exactly how to handle the present circumstance available. The following 3 options have actually been suggested to aid Lewis deal with the business obstacles in the marketing department. Each of these choices has been proposed for alleviating the change needed to bring the marketing department in accordance with the needs of the market and also for making the cultural change that would certainly adhere to as soon as the present leader leaves.

Combination of advertising and marketing functions. Dividing Adverting as well as Manufacturing functions. Assimilation of Advertising with Procedures.

Assessment of Alternatives.

Combination of Advertising & Marketing Functions: The internal marketing firm of Accounting For Manufacturing Companies is already stamina for the organization in terms of saving up on expenses connected to advertising and marketing and also promo. Considering that no brand-new employment has been done after Bridget Cole's departure with the reporting line being straight designated to Krasnow for the advertising feature, this is a desirable possibility for incorporating the marketing and advertising functions. Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merging days has knowledge in business-to-business advertising and marketing together with firm and retail advertising experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both marketing and advertising functions.

The benefit of this method is that it will integrate the two features while decreasing the demand for hiring an additional source for advertising. Lewis would be heading the advertising department and in any kind of case her replacement would certainly be required for the present function that she is performing. The downside of this alternative is that outside hiring may bring about animosity from inner workers that might be looking at the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Production: Given the affordable pressures and also high top quality work needed from the marketing company, it is advised that Lewis should enable the manufacturing unit to be a different feature from the advertising system. Considering that many marketing firms had these 2 functions as different devices, it makes even more feeling to comply with the norm.

Integration of Marketing with Workflows: Because Lewis is already dealing with the advertising and also operations departments at the same time; it makes good sense to incorporate the two functions given that she has been effectively dealing with both ends. The truth that both divisions currently have major distinctions over allotment of sources suggests that this combination might have the ability to cause consistency especially as Lewis would certainly be heading both ends.However there are different drawbacks of this move especially as it would certainly place too much concern over Lewis's shoulders. The fact that Lewis needs to adapt her administration design for the advertising department recommends that these 2 departments would be culturally varied. Along with this, Lewis may not be able to use one kind of management design to both divisions which might result in inadequacy in either one of the two features.


An evaluation of the 3 alternatives indicates that integration of marketing and procedures would not be a viable move due to the substantial distinctions between the two divisions despite the fact that currently Lewis is dealing with both. While separation of the production function may have been a favorable relocation for the marketing division, the truth that it would certainly imply placing a third feature under Lewis's wing means this should be stayed clear of.

Activity Plan.
Lewis will certainly take control of the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would be merged.

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

Manufacturing function will certainly continue to be part of advertising under advertising function.

Lewis will certainly separate herself from operations.

A democratic management style with staff member empowerment will be made use of in advertising division.

Open door plan and emphasis on cross department interaction will certainly be focused on removing disharmony.

Contingency plan.

If the combination does not work out as prepared, a backup plan would comply with which would certainly separate the manufacturing function from the advertising and marketing function to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising and marketing department without an SVP. In that case the production feature will most definitely be divided by putting it under an SVP manufacturing.