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Alumni Action Foundation Currency Hedging Strategy Case Study Analysis

Background and Facts

Alumni Action Foundation Currency Hedging Strategy an office supplies retailer for small and also average sized companies has actually lately been involved in planning for a merging with its rival Home Deport, which has influenced performance degrees in departmentswith the elderly supervisor associated with lawful difficulties presented by the federal Profession Compensation. With the Marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the current head of operations has actually been asked to take the role in the future. With obstacles in the form of a potential cultural change as well as reduced staff member morale, the company requires a full reengineering initiative at the advertising division.

Issue Declaration
Porter's 5 Forces Analysis
The possible social modification at the advertising and marketing department of Alumni Action Foundation Currency Hedging Strategy is raising uncertainty in the working environment causing different challenges for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting strategic decisions since Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Trade Payment's treatment in the process. Offered the reality that the store has a worldwide presence with branches in UK, USA, Canada and Germany, political consider each of these nations might have the ability to influence efficiency or strategic goals. Federal Profession Compensation's antitrust match against the merger used up beneficial time of the organization's senior management suggesting that 'political' factors can have serious implications for a global service.

Economic Factors: Economic factors such as the appearance of small businesses in the worldwide scenario suggest that Alumni Action Foundation Currency Hedging Strategy is thriving in a setting where there is prospective development of companies. In addition to this, fact that shop customers are mainly searching for workplace materials for home offices suggests that the market has a climbing pattern of business owners as well as home based services.

Social factors: Social fads in the economic climate show that clients are looking for comfort as well as appealing rates. Marketing research shows how the customer for Alumni Action Foundation Currency Hedging Strategy does not have awareness regarding finding remedies which can use a mix of ease and affordable.

Technical factors: Modern technology plays an essential role in Alumni Action Foundation Currency Hedging Strategy's business technique particularly as the company is piloting Modern technology centers which would certainly provide technology sales as well as support in the form of memory upgrades, outer installments. (Summary of PEST in appendix 2).

OB Issues and also Manifestations.

Several underlying Business Behavior problems can be seen in Alumni Action Foundation Currency Hedging Strategy's case as highlighted in this section.

Apprehensions regarding cultural modification: There is concern about a social adjustment that would happen when Todd Krasnow leaves from his position as the Exec Vice President of Marketing with the majority of the team member currently revealing unhappiness over this prospective relocation. This anticipated adjustment has created stress in the work environment which has been coupled with the previous stress of preparing the firm for a prospective merger with Home Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is scarcity of employees that can match the stressful environment of a busy company. Not only does this result in difficulty in finding the ideal individuals, it puts tension on new hires as can not endure the pace and stress that the company expects them to bear.

Double Coverage Lines: Newcomers locate this business culture cumbersome and hard to handle especially as dotted line partnerships are suggested to be weaker as a whole and unbiased setup as well as efficiency examination is still done by the solid line supervisor. This indicates that beginners could lose clearness concerning their respective functions as well as goals specifically as dotted line coverage does not keep them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles although it had actually been guessed that the latter would certainly take Krasnow's setting came as an impact to her spirits. Lewis may have been qualified and also ideal for the task yet the fact that Kransnow's separation would make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.

Fear & Task Insecurity: Anxiety and also instability can be determined as two significant concerns that Lewis would be handling particularly as the merger has actually currently be cancelled as well as 2 senior execs of the marketing division would be leaving. The entire obligation of the division would certainly be falling on Lewis's shoulders who would certainly not simply be in charge of brining about a social change yet would certainly likewise have to show herself in her brand-new duty.

Incompatible Management Style of Leader: Lewis's monitoring design as well as its incompatibility with the advertising and marketing department's role can also be seen as an OB difficulty specifically as she has been utilized to taking care of concerns in the procedures department where employees are instructed to concentrate on procedures as well as obtain them. The advertising department on the various other hand can be viewed as a group of people who are made use of to being supported by Krasnow that concentrated much more on outcome than procedures.

Interdepartmental Differences: Interdepartmental differences between 3 departments, advertising, merchandizing and procedures respectively over the appropriation of the advertising mix can be identified as another OB worry. The marketing division does not share the very same vision as the other 2 divisions concerning the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing as well as procedures departments do not agree over the marketing mix allowance amongst one an additional either.

Fragmentation in Advertising Department: Disintegration in between the marketing and advertising departments can be determined as another OB problem which might require additional focus. The truth that the marketing and advertising sections in the marketing department are disconnected is avoiding both divisions from obtaining from each other's experience as well as know-how. Integration of marketing with retailing and also operations would end up being harder if the marketing division itself is broken down which can be an additional possible OB issue.

Alumni Action Foundation Currency Hedging Strategy Analysis

Different theories have been used to clarify the circumstances to obtain more clarity concerning the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many supervisors think that staffs are passive and lazy, have little aspiration and also resist change. The hard version of this concept stressed threat, limited controls, dangers as well as punishments. Gradually it creates reduced efficiency, subtle sabotage and competition (Offer, 2003). Although the circumstance at Alumni Action Foundation Currency Hedging Strategy is not totally following Concept X, it can be seen that new hires are locating this environment rather stressful which might at some point bring about a greater disposition of the monitoring towards Theory X. Based on McGregor's supported sight, which he called Theory Y, the vital task of the administration is to prepare business conditions to make sure that people can achieve their very own goals best by routing their initiatives in the direction of organizational benefits. If people locate no fulfillment in their work, the administration would certainly have little option but to count on concept X as well as exterior control (Deal, 2003). Even while examining Lewis's administration design, theory X may have appropriated in the operations division to some extent however the Advertising department would require dependence on Theory Y so as to get the creativity as well as creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's concern about bringing harmony in between the advertising and marketing as well as marketing department is concerned, this would originally lead to conflict as discussed by Bruce Tuckman in his 'Teamwork Theory'. By incorporating the marketing as well as advertising division's work, there may be the exact same first separate which could lead to the 2nd stage of 'storming' where the teams test one an additional.

Bridges' Change Version: Based On William Bridge's theory (appendix 4), individuals are quite unpleasant with adjustment, which is noticeable by the circumstance at Alumni Action Foundation Currency Hedging Strategy The circumstance can be viewed as a typical program of life if is researched according to Bridge's concept where he discusses that people experience three phases of shift when they experience modification. 'End, losing and also Letting go', The Neutral Zone and 'The New Starting' (Bridges, 2004). When people exist with change, they get in stage one therefore there may be feelings like unhappiness, uncertainty, disappointment, temper, fear, denial as well as disorientation.The circumstance at the advertising division of Alumni Action Foundation Currency Hedging Strategy is comparable so Lewis can obtain comfortable with the suggestion that it is not extraordinary habits. In the 2nd stage, there may be a demand to link the gap between the new and also old society so Lewis might need to encounter this challenge once Krasnow leaves. There might be low morale as well as reduced efficiency at this stage which should not be taken as a problem. It is throughout this phase that Lewis will certainly have to give advice to the department so that they can find a sense of direction. It can be seen exactly how Krasnow has actually currently made this transition simpler by making Lewis get involved in the division a year prior to his actual separation. According to Bridges' Version, stage three will certainly bring about visibility to understanding, High energy and dedication as individuals will certainly accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Requirement power structure: The OB problem pertaining to insecurity at the work environment has actually been set off first of all by the change in monitoring and secondly by the truth that the merger will certainly no longer be started. Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has discusses the value of 'protection requires as being a reduced level need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel secure and untouched' is at the second level of needs. Prior to a staff member can be made to establish psychologically, he needs to have his 'Physical 'as well as 'Safety and security' requires met. This indicates that unless the employees are made to feel safe regarding their current employment status in Alumni Action Foundation Currency Hedging Strategy they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Alumni Action Foundation Currency Hedging Strategy Case Study

Ramification of Analysis.

The OB analysis has actually taken a look at various theories to understand just how to deal with the current scenario handy. The following 3 options have been recommended to aid Lewis take care of the business obstacles in the advertising and marketing department. Each of these options has been suggested for easing the change needed to bring the marketing department in line with the demands of the market and also for making the cultural change that would certainly comply with when the present leader leaves.

Assimilation of marketing and advertising features. Separating Adverting and also Manufacturing features. Assimilation of Marketing with Workflow.

Analysis of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merger days has expertise in business-to-business advertising along with agency as well as retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both advertising and advertising functions.

The advantage of this approach is that it will certainly incorporate both functions while decreasing the requirement for employing an extra source for advertising and marketing. Lewis would be heading the advertising and marketing division and also in any kind of case her replacement would be required for the current role that she is executing. The disadvantage of this option is that exterior hiring might cause animosity from inner workers that may be considering the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Production: Given the affordable stress as well as top quality work called for from the ad agency, it is suggested that Lewis should enable the production system to be a separate function from the marketing unit. Given that a lot of advertising agencies had these two functions as separate devices, it makes even more feeling to adhere to the norm. In addition to this, both functions might be able to concentrate on their core triggers more successfully. Nonetheless, the negative aspect of this strategy would certainly be that extra costs would have to be borne for establishing different manufacturing features. In addition to this, a production head may need to be hired which can enhance overheads for the company.

Assimilation of Advertising with Operations: Since Lewis is currently taking treatment of the advertising and procedures departments simultaneously; it makes sense to integrate the 2 functions because she has actually been successfully taking treatment of both ends. The fact that Lewis has to adjust her management style for the advertising division suggests that these two divisions would be culturally diverse.


An evaluation of the three alternatives indicates that combination of marketing and procedures would not be a possible relocation because of the large distinctions in between the two divisions despite the fact that presently Lewis is handling both. While splitting up of the production feature might have been a favorable move for the marketing division, the reality that it would certainly suggest putting a 3rd function under Lewis's wing indicates this must be prevented. The combination of the marketing division is the very best option in regards to getting the ideal results from the department. An activity plan for this alternative is talked about listed below.

Action Strategy.
Lewis will certainly take control of the function of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Production feature will remain component of marketing under advertising function.

Lewis will separate herself from procedures.

An autonomous leadership style with employee empowerment will certainly be used in advertising department.

Open door plan and emphasis on cross department communication will certainly be aimed at eliminating discord.

Contingency strategy.

If the assimilation does not work out as prepared, a contingency strategy would follow which would certainly separate the production function from the advertising function to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising division without an SVP. In that case the manufacturing feature will definitely be separated by placing it under an SVP production.