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All That Glitters Is Gold A Case Of Inventory Accounting Policy Case Study Analysis

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All That Glitters Is Gold A Case Of Inventory Accounting Policy Case Study Solution

Background and Facts

All That Glitters Is Gold A Case Of Inventory Accounting Policy a workplace products seller for small and medium sized businesses has actually lately been involved in preparing for a merger with its rival House Deport, which has impacted performance degrees in departmentswith the senior manager associated with legal complications put forth by the government Profession Compensation. With the Advertising Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the future. With difficulties in the form of a potential social modification and low staff member spirits, the organization wants a full reengineering initiative at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The possible social change at the advertising and marketing department of All That Glitters Is Gold A Case Of Inventory Accounting Policy is enhancing uncertainty in the working environment causing numerous challenges for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting critical decisions considering that Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Trade Commission's treatment at the same time. Provided the fact that the store has a worldwide visibility with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries may have the ability to impact performance or strategic objectives. Federal Trade Commission's antitrust fit against the merger used up valuable time of the company's elderly monitoring recommending that 'political' factors can have serious effects for a global organisation.

Economic Factors: Economic factors such as the development of small businesses in the worldwide circumstance suggest that All That Glitters Is Gold A Case Of Inventory Accounting Policy is flourishing in an environment where there is prospective development of services. Reality that store customers are mainly looking for workplace materials for house offices suggests that the market has an increasing fad of entrepreneurs as well as home based companies.

Social factors: Social trends in the economic situation show that clients are seeking benefit along with attractive rates. Marketing research demonstrates how the customer for All That Glitters Is Gold A Case Of Inventory Accounting Policy does not have recognition about discovering solutions which can supply a mix of benefit and low costs.

Technical factors: Modern technology plays an essential role in All That Glitters Is Gold A Case Of Inventory Accounting Policy's organisation approach particularly as the organization is piloting Technology facilities which would certainly use modern technology sales as well as support in the type of memory upgrades, outer setups. (Recap of PARASITE in appendix 2).

OB Issues and Symptoms.

Numerous underlying Organizational Actions concerns can be seen in All That Glitters Is Gold A Case Of Inventory Accounting Policy's case as highlighted in this section.

Worries regarding cultural modification: There is worry regarding a social adjustment that would occur once Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with the majority of the personnel currently revealing discontent over this prospective step. This predicted modification has actually produced anxiety in the workplace which has actually been paired with the past stress and anxiety of preparing the firm for a potential merger with House Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is scarcity of workers that can match the difficult setting of a fast-paced company. Not just does this result in trouble in discovering the right people, it places stress on new hires as can not stand up to the rate and stress that the company anticipates them to bear.

Double Reporting Lines: Newcomers discover this business culture cumbersome and also challenging to manage especially as populated line partnerships are implied to be weaker generally as well as objective setting as well as efficiency analysis is still done by the strong line supervisor. This means that newbies could lose quality regarding their corresponding roles as well as purposes especially as dotted line coverage does not keep them in direct interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had been guessed that the latter would certainly take Krasnow's position came as a strike to her morale. Lewis might have been qualified and ideal for the task however the reality that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Concern & Task Instability: Concern as well as instability can be identified as 2 significant issues that Lewis would be dealing with specifically as the merging has actually now be terminated and also 2 elderly execs of the marketing department would be leaving. The entire duty of the department would be dropping on Lewis's shoulders that would certainly not just be in charge of brining about a cultural adjustment but would certainly also need to prove herself in her new function.

Incompatible Administration Style of Leader: Lewis's monitoring design as well as its incompatibility with the advertising and marketing department's function can likewise be viewed as an OB difficulty specifically as she has been used to dealing with issues in the procedures division where personnel are taught to focus on processes and also get them right. The advertising division on the various other hand can be seen as a team of individuals that are used to being supported by Krasnow who focused extra on outcome than procedures.

Interdepartmental Disputes: Interdepartmental disputes between three departments, advertising and marketing, merchandizing as well as procedures respectively over the allotment of the advertising mix can be determined as an additional OB worry. Although the marketing division does not share the exact same vision as the other 2 departments concerning the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and procedures divisions do not concur over the marketing mix appropriation among one another either.

Disintegration in Advertising And Marketing Division: Disintegration in between the marketing and advertising departments can be determined as another OB concern which can need additional interest. The truth that the advertising and marketing areas in the marketing division are disconnected is stopping both divisions from getting from each various other's experience as well as know-how. Integration of marketing with retailing as well as operations would certainly come to be more difficult if the advertising division itself is disintegrated which can be an additional possible OB worry.

All That Glitters Is Gold A Case Of Inventory Accounting Policy Analysis

Numerous theories have been made use of to explain the situations to obtain further quality concerning the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers think that subordinates are passive and careless, have little aspiration as well as withstand modification. The scenario at All That Glitters Is Gold A Case Of Inventory Accounting Policy is not totally adhering to Concept X, it can be seen that new hires are locating this setting instead stressful which might at some point lead to a better disposition of the monitoring towards Theory X. Even while evaluating Lewis's administration design, concept X may have been ideal in the operations department to some extent however the Marketing division would need reliance on Concept Y in order to get the imagination as well as creativity from the teams.

Tuckman's Teamwork Concept: As much as Lewis's worry regarding bringing consistency between the advertising and marketing and also marketing department is concerned, this would at first lead to conflict as talked about by Bruce Tuckman in his 'Teamwork Theory'. By combining the marketing as well as advertising department's job, there may be the very same first detach which can lead to the second stage of 'storming' where the groups challenge one an additional.

Bridges' Transition Design: According To William Bridge's theory (appendix 4), individuals are quite awkward with modification, which is apparent by the situation at All That Glitters Is Gold A Case Of Inventory Accounting Policy The situation can be seen as a typical course of life if is studied based on Bridge's concept where he describes that individuals go through three phases of change when they experience change. 'Closing, shedding and Letting go', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people exist with change, they go into phase one therefore there might be emotions like despair, uncertainty, stress, anger, fear, rejection as well as disorientation.The circumstance at the advertising division of All That Glitters Is Gold A Case Of Inventory Accounting Policy is comparable so Lewis can obtain comfy with the concept that it is not remarkable behavior. In the second phase, there might be a requirement to bridge the gap between the new as well as old society so Lewis may need to face this challenge once Krasnow leaves. There might be reduced morale and also reduced productivity at this phase which should not be taken as an obstacle. It is during this phase that Lewis will have to give guidance to the department to ensure that they can locate an orientation. It can be seen how Krasnow has already made this change much easier by making Lewis get involved in the department a year prior to his actual separation. Based on Bridges' Design, phase three will cause visibility to knowing, High energy as well as dedication as people will certainly welcome the change (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB issue related to insecurity at the workplace has been triggered to start with by the modification in monitoring and also second of all by the reality that the merging will certainly no longer be initiated. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has reviews the relevance of 'protection requires as being a reduced degree need of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel safe and secure as well as unharmed' is at the 2nd degree of requirements. Prior to a staff member can be made to establish psychologically, he requires to have his 'Physiological 'as well as 'Security' needs fulfilled. This shows that unless the workers are made to feel safe about their current employment status in All That Glitters Is Gold A Case Of Inventory Accounting Policy they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for All That Glitters Is Gold A Case Of Inventory Accounting Policy Case Study



Implication of Analysis.

The OB analysis has actually taken a look at various concepts to comprehend exactly how to cope with the present circumstance handy. The following 3 options have actually been recommended to help Lewis deal with the organizational challenges in the advertising department. Each of these alternatives has been suggested for relieving the change needed to bring the advertising division according to the demands of the marketplace and for making the cultural adjustment that would adhere to as soon as the current leader leaves.

Combination of marketing and advertising features. Dividing Adverting as well as Production functions. Integration of Advertising with Operations.

Evaluation of Alternatives.

Integration of Marketing & Marketing Functions: The internal advertising and marketing company of All That Glitters Is Gold A Case Of Inventory Accounting Policy is currently strength for the organization in terms of saving up on expenses associated with marketing as well as promotion. Since no new employment has actually been done after Bridget Cole's departure with the reporting line being straight assigned to Krasnow for the advertising function, this is a beneficial opportunity for integrating the marketing and advertising features. Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merging days has know-how in business-to-business advertising together with agency and retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to handle both marketing and advertising features.

The benefit of this approach is that it will incorporate both functions while decreasing the demand for hiring an extra resource for advertising and marketing. Lewis would be heading the marketing department as well as in any kind of case her substitute would be needed for the present function that she is doing. The drawback of this option is that exterior hiring might produce bitterness from internal personnel who might be looking at the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting as well as Manufacturing: Offered the competitive stress as well as excellent quality work needed from the ad agency, it is advised that Lewis must allow the production device to be a different function from the marketing system. Since a lot of advertising agencies had these two functions as separate devices, it makes more feeling to comply with the standard. In addition to this, both functions might have the ability to focus on their core activates much more successfully. The downside of this strategy would be that added costs would certainly have to be borne for establishing up separate production features. A production head might have to be hired which could increase expenses for the company.

Combination of Advertising with Procedures: Since Lewis is currently caring for the marketing as well as procedures departments all at once; it makes good sense to incorporate the two features since she has been efficiently dealing with both ends. The fact that both departments already have significant differences over appropriation of sources recommends that this combination might be able to cause harmony especially as Lewis would be heading both ends.However there are numerous downsides of this relocation particularly as it would certainly put way too much concern over Lewis's shoulders. The truth that Lewis has to adjust her monitoring design for the advertising and marketing department suggests that these 2 departments would be culturally varied. In addition to this, Lewis might not be able to use one type of leadership design to both divisions which could lead to inefficiency in either one of both features.

Recommendation.



An assessment of the 3 alternatives suggests that combination of advertising and marketing and operations would not be a viable move due to the huge distinctions between the two departments in spite of the reality that currently Lewis is handling both. While splitting up of the production function may have been a positive step for the marketing division, the truth that it would indicate placing a third function under Lewis's wing means this must be avoided.

Activity Strategy.
Recommendation
Lewis will take over the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

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

Lewis will divide herself from operations.

An autonomous leadership design with staff member empowerment will be used in advertising division.

Open door plan as well as focus on cross departmental interaction will be aimed at eliminating disharmony.

Contingency strategy.

If the assimilation does not work out as planned, a backup strategy would adhere to which would certainly divide the production feature from the advertising and marketing function to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing division without an SVP. Because case the production feature will certainly be divided by putting it under an SVP manufacturing.