Acquisition Of Consolidated Rail Corp A Case Study Solution


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Acquisition Of Consolidated Rail Corp A Case Study Analysis

Background and Facts

Acquisition Of Consolidated Rail Corp A an office products merchant for tiny as well as average sized services has lately been associated with planning for a merger with its competitor House Deport, which has actually influenced performance degrees in departmentswith the senior supervisor involved in lawful problems put forth by the government Trade Commission. With the Advertising and marketing Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the role in the near future. With difficulties in the form of a possible social change and reduced employee morale, the organization is in need of a complete reengineering effort at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The potential social change at the advertising division of Acquisition Of Consolidated Rail Corp A is raising unpredictability in the workplace causing various challenges for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting calculated decisions since Stapes Inc. needed to abandon its strategies of combining with Workplace Deport after the Federal Profession Payment's intervention in the process. Given the fact that the store has an international presence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries may be able to influence performance or strategic objectives. Federal Trade Commission's antitrust suit versus the merger took up valuable time of the organization's senior management recommending that 'political' factors can have serious ramifications for an international business.

Economic Factors: Economic factors such as the development of small businesses in the international circumstance suggest that Acquisition Of Consolidated Rail Corp A is thriving in an atmosphere where there is possible growth of businesses. Reality that shop clients are primarily looking for office materials for home offices suggests that the market has an increasing trend of business owners and also home based companies.

Social factors: Social fads in the economic climate reveal that customers are seeking convenience as well as attractive rates. Marketing research demonstrates how the client for Acquisition Of Consolidated Rail Corp A does not have understanding about finding options which can use a mix of comfort and also low costs.

Technical factors: Technology plays an important function in Acquisition Of Consolidated Rail Corp A'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 kind of memory upgrades, peripheral installments. (Recap of INSECT in appendix 2).

OB Issues and also Symptoms.

Several underlying Organizational Behavior issues can be seen in Acquisition Of Consolidated Rail Corp A's case as highlighted in this section.

Worries about social modification: There is worry regarding a cultural change that would take place when Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with a lot of the employee already showing unhappiness over this potential action. This predicted adjustment has actually developed anxiety in the work environment which has actually been paired with the past stress of preparing the firm for a possible merging with House Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is shortage of workers that can match the difficult atmosphere of a busy company. Not only does this lead to problem in discovering the best people, it puts anxiety on brand-new hires as can not endure the rate and also stress that the company expects them to birth.

Dual Reporting Lines: Newcomers locate this business culture difficult and difficult to handle especially as dotted line connections are implied to be weak in general and also objective setting and also performance examination is still done by the strong line supervisor. This means that newcomers could shed clearness concerning their particular functions as well as purposes especially as dotted line coverage does not keep them in direct interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles even though it had actually been guessed that the last would take Krasnow's position came as a blow to her spirits. Lewis might have been capable as well as suitable for the task but the fact that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Worry & Work Instability: Anxiety and also instability can be identified as two major worries that Lewis would certainly be handling specifically as the merging has actually now be cancelled and also 2 senior executives of the marketing department would be leaving. The whole duty of the department would be falling on Lewis's shoulders who would not just be in charge of brining concerning a social change however would certainly likewise have to prove herself in her brand-new function.

Inappropriate Administration Style of Leader: Lewis's administration style and also its incompatibility with the advertising and marketing department's function can additionally be viewed as an OB challenge especially as she has been utilized to handling problems in the operations division where workers are shown to focus on procedures as well as obtain them right. The advertising department on the various other hand can be viewed as a group of people who are used to being supported by Krasnow who focused much more on result than procedures.

Interdepartmental Differences: Interdepartmental disputes between 3 divisions, marketing, merchandizing as well as procedures respectively over the allotment of the marketing mix can be identified as another OB problem. The marketing division does not share the exact same vision as the other two divisions relating to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing as well as procedures departments do not concur over the marketing mix appropriation amongst one an additional either.

Fragmentation in Advertising And Marketing Department: Fragmentation between the marketing and advertising departments can be identified as another OB problem which might require additional attention. The fact that the marketing and advertising sections in the advertising department are separated is stopping both divisions from acquiring from each other's experience as well as competence. Assimilation of marketing with retailing and operations would certainly end up being more difficult if the advertising and marketing division itself is disintegrated which can be another potential OB problem.

Acquisition Of Consolidated Rail Corp A Analysis

Various theories have been utilized to describe the conditions to get additional clarity regarding the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers think that juniors are passive as well as careless, have little passion and resist change. The scenario at Acquisition Of Consolidated Rail Corp A is not completely adhering to Theory X, it can be seen that brand-new hires are locating this setting instead difficult which might eventually lead to a greater inclination of the management towards Theory X. Even while analyzing Lewis's administration design, theory X might have been appropriate in the operations division to some level but the Advertising department would require dependence on Theory Y in order to get the creative thinking and also creativity from the teams.

Tuckman's Synergy Theory: As much as Lewis's issue about bringing harmony between the advertising and marketing as well as advertising and marketing division is worried, this would initially lead to conflict as gone over by Bruce Tuckman in his 'Synergy Concept'. By integrating the advertising as well as advertising department's job, there might be the very same preliminary disconnect which could lead to the 2nd stage of 'storming' where the groups challenge one another.

When individuals are offered with adjustment, they go into phase one as well as so there may be feelings like unhappiness, uncertainty, irritation, anger, worry, rejection and also disorientation.The circumstance at the advertising department of Acquisition Of Consolidated Rail Corp A is similar so Lewis can get comfortable with the concept that it is not phenomenal behavior. It is throughout this stage that Lewis will certainly have to provide assistance to the department so that they can locate a sense of instructions. It can be seen just how Krasnow has actually currently made this change simpler by making Lewis get involved in the division a year prior to his real separation.
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue pertaining to insecurity at the workplace has actually been set off to start with by the change in monitoring and second of all by the reality that the merging will no longer be launched. Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has talks about the importance of 'safety needs as being a reduced level need of a human for causing inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to feel protected as well as unharmed' goes to the 2nd level of demands. Prior to an employee can be made to establish psychologically, he needs to have his 'Physiological 'as well as 'Safety' requires met. This indicates that unless the workers are made to really feel safe concerning their existing work standing in Acquisition Of Consolidated Rail Corp A they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Acquisition Of Consolidated Rail Corp A Case Study

Effects of Analysis.

The OB analysis has taken a look at various concepts to understand just how to manage the present scenario handy. The adhering to 3 options have actually been suggested to help Lewis take care of the business obstacles in the marketing department. Each of these alternatives has actually been suggested for relieving the change needed to bring the advertising department according to the requirements of the marketplace and also for making the social adjustment that would certainly adhere to when the present leader leaves.

Integration of advertising and marketing features. Dividing Adverting as well as Manufacturing functions. Assimilation of Marketing with Operations.

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merger days has competence in business-to-business advertising along with agency and also retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to take care of both advertising as well as advertising and marketing functions.

The benefit of this method is that it will incorporate the two features while decreasing the need for employing an extra source for advertising and marketing. In addition to this, Lewis would certainly be heading the advertising and marketing department as well as in any case her replacement would be required for the current duty that she is executing. The drawback of this option is that external hiring may bring about resentment from internal personnel who might be eying the setting of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and also Manufacturing: Given the competitive pressures and also high quality work required from the advertising and marketing agency, it is recommended that Lewis needs to allow the manufacturing unit to be a different feature from the advertising system. Since most marketing agencies had these two features as different systems, it makes even more feeling to comply with the norm.

Combination of Marketing with Operations: Since Lewis is already taking treatment of the advertising and also procedures departments at the same time; it makes feeling to incorporate the two functions because she has actually been effectively taking care of both ends. The truth that Lewis has to adapt her management style for the advertising department recommends that these 2 divisions would certainly be culturally diverse.


An analysis of the 3 choices suggests that combination of advertising as well as procedures would certainly not be a viable relocation because of the vast differences in between both divisions although that presently Lewis is managing both. While splitting up of the manufacturing function might have been a favorable step for the marketing department, the reality that it would indicate positioning a third feature under Lewis's wing suggests this must be avoided. The assimilation of the advertising and marketing division is the very best alternative in terms of obtaining the ideal results from the department. An action prepare for this choice is discussed below.

Activity Strategy.
Lewis will certainly take over the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Production function will certainly stay part of advertising under advertising function.

Lewis will divide herself from operations.

A democratic management style with worker empowerment will be made use of in advertising department.

Open door policy and also focus on cross department communication will be targeted at getting rid of discord.

Backup plan.

If the integration does not work out as planned, a backup plan would certainly follow which would separate the manufacturing feature from the marketing function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the marketing division without an SVP. Because case the manufacturing function will most definitely be separated by positioning it under an SVP manufacturing.