Ann Taylor Stores Corporation Deferred Taxes Case Study Solution


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Ann Taylor Stores Corporation Deferred Taxes Case Study Help

Background and Facts

Ann Taylor Stores Corporation Deferred Taxes an office supplies store for tiny as well as moderate sized organisations has lately been involved in preparing for a merger with its rival Home Deport, which has actually impacted effectiveness degrees in departmentswith the elderly manager associated with lawful issues put forth by the government Trade Payment. With the Advertising Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the existing head of procedures has been asked to take the function in the future. With challenges in the form of a prospective cultural change and also reduced worker morale, the organization needs a full reengineering effort at the advertising division.

Problem Declaration
Porter's 5 Forces Analysis
The prospective social change at the advertising department of Ann Taylor Stores Corporation Deferred Taxes is increasing unpredictability in the workplace resulting in different challenges for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting calculated choices because Stapes Inc. had to abandon its strategies of combining with Workplace Deport after the Federal Trade Payment's treatment at the same time. Provided the truth that the shop has an international presence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries may have the ability to impact efficiency or tactical objectives. Federal Profession Payment's antitrust match against the merging occupied valuable time of the organization's senior management suggesting that 'political' factors can have serious implications for a worldwide company.

Economic Factors: Economic factors such as the emergence of small companies in the global circumstance recommend that Ann Taylor Stores Corporation Deferred Taxes is growing in an atmosphere where there is potential development of businesses. Truth that store customers are mostly looking for office supplies for residence workplaces recommends that the market has a rising pattern of business owners and house based businesses.

Social factors: Social patterns in the economy show that clients are trying to find convenience in addition to appealing rates. Market research demonstrates how the customer for Ann Taylor Stores Corporation Deferred Taxes does not have awareness concerning finding solutions which can use a combination of benefit as well as inexpensive.

Technological factors: Technology plays an important role in Ann Taylor Stores Corporation Deferred Taxes's business strategy particularly as the company is piloting Innovation facilities which would certainly provide technology sales and also support in the type of memory upgrades, outer installations. (Summary of BUG in appendix 2).

OB Issues and also Effects.

A number of underlying Business Actions concerns can be seen in Ann Taylor Stores Corporation Deferred Taxes's case as highlighted in this area.

Worries about cultural change: There is uneasiness regarding a social modification that would happen when Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising with most of the team member already showing discontent over this potential relocation. This predicted modification has created tension in the work environment which has been paired with the past anxiety of preparing the company for a potential merger with Home Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is shortage of employees that can match the demanding atmosphere of a hectic organization. Not only does this result in difficulty in finding the best individuals, it puts tension on brand-new hires as can not stand up to the pace and stress that the organization expects them to bear.

Twin Coverage Lines: Beginners find this business society cumbersome and hard to deal with particularly as dotted line relationships are meant to be weak generally and unbiased setup as well as efficiency analysis is still done by the strong line manager. This indicates that newcomers can shed clarity regarding their respective functions as well as goals especially as dotted line reporting does not maintain them in direct communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had been speculated that the last would certainly take Krasnow's setting came as a blow to her spirits. Lewis might have been qualified and proper for the task but the reality that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Anxiety & Job Insecurity: Anxiety and instability can be identified as two major worries that Lewis would certainly be dealing with especially as the merging has actually now be cancelled and two elderly execs of the marketing division would certainly be leaving. The entire responsibility of the division would certainly be dropping on Lewis's shoulders who would not just supervise of brining concerning a social adjustment but would also need to confirm herself in her brand-new function.

Incompatible Management Design of Leader: Lewis's management style and also its incompatibility with the marketing department's duty can also be viewed as an OB obstacle especially as she has been made use of to managing concerns in the operations department where employees are shown to focus on procedures as well as get them right. The advertising division on the various other hand can be seen as a group of people who are used to being nurtured by Krasnow who focused more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental differences in between three divisions, advertising and marketing, merchandizing and operations specifically over the allotment of the advertising and marketing mix can be determined as an additional OB issue. Although the advertising division does not share the same vision as the various other 2 departments concerning the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing as well as operations departments do not concur over the marketing mix allotment among each other either.

Disintegration in Advertising Department: Disintegration in between the advertising and marketing divisions can be identified as one more OB issue which might need further attention. The fact that the marketing and advertising areas in the marketing division are disconnected is preventing both divisions from obtaining from each various other's experience and know-how. Assimilation of marketing with merchandising and also procedures would come to be harder if the advertising and marketing division itself is broken down which can be an additional possible OB issue.

Ann Taylor Stores Corporation Deferred Taxes Analysis

Various theories have been made use of to explain the conditions to obtain further clearness concerning the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors think that juniors are easy as well as lazy, have little passion and also stand up to modification. The tough variation of this theory highlighted threat, tight controls, hazards as well as penalties. With time it generates reduced efficiency, refined sabotage as well as rivalry (Bargain, 2003). The scenario at Ann Taylor Stores Corporation Deferred Taxes is not completely complying with Concept X, it can be seen that brand-new hires are finding this setting rather stressful which might at some point lead to a better inclination of the management in the direction of Theory X. Based on McGregor's advocated view, which he called Concept Y, the essential task of the monitoring is to prepare business conditions to ensure that people can achieve their own goals best by routing their efforts in the direction of business incentives. If people discover no satisfaction in their job, the management would certainly have little selection but to rely on theory X and external control (Offer, 2003). Also while examining Lewis's monitoring design, concept X might have been suitable in the operations division somewhat but the Marketing department would call for dependence on Concept Y so as to get the creativity and creativity from the teams.

Tuckman's Teamwork Theory: As for Lewis's worry concerning bringing harmony in between the advertising and marketing department is worried, this would initially lead to contrast as talked about by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, during the preliminary stage of group growth, people might not bond, as they are hectic locating their area in the team. By incorporating the marketing and advertising department's job, there may be the same initial separate which could cause the second stage of 'storming' where the teams challenge each other. It is just during the 3rd phase or 'norming' when they would certainly come together to share suggestions prior to the group can bring about harmony in the fourth stage 'carrying out'.

Bridges' Transition Version: According To William Bridge's theory (appendix 4), individuals are rather unpleasant with modification, which is noticeable by the circumstance at Ann Taylor Stores Corporation Deferred Taxes The situation can be viewed as a regular training course of life if is studied according to Bridge's concept where he explains that people undergo three stages of transition when they experience modification. 'Closing, shedding and Letting go', The Neutral Area and also 'The New Starting' (Bridges, 2004). When people exist with modification, they get in stage one therefore there may be emotions like despair, uncertainty, frustration, temper, anxiety, denial and disorientation.The circumstance at the marketing department of Ann Taylor Stores Corporation Deferred Taxes is comparable so Lewis can obtain comfy with the concept that it is not extraordinary habits. In the 2nd stage, there may be a need to bridge the space in between the new and also old culture so Lewis might need to face this experience when Krasnow leaves. There might be reduced morale as well as low performance at this phase which should not be taken as a setback. It is during this phase that Lewis will have to provide support to the division to ensure that they can locate a sense of direction. It can be seen just how Krasnow has already made this change less complicated by making Lewis get associated with the division a year prior to his actual separation. According to Bridges' Model, stage three will certainly produce visibility to discovering, High power and dedication as individuals will certainly welcome the modification (Bridges, 2004).
Vrio Analysis
Maslow's Need hierarchy: The OB issue related to instability at the workplace has been triggered to start with by the modification in monitoring and also second of all by the reality that the merger will no more be started. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has goes over the relevance of 'protection needs as being a reduced degree requirement of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the need to really feel protected and also unharmed' goes to the second degree of needs. Before a staff member can be made to establish emotionally, he needs to have his 'Physiological 'and 'Safety' needs fulfilled. This suggests that unless the personnel are made to feel safe concerning their current work condition in Ann Taylor Stores Corporation Deferred Taxes they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Ann Taylor Stores Corporation Deferred Taxes Case Study

Ramification of Analysis.

The OB analysis has considered various theories to comprehend how to cope with the existing scenario available. The adhering to 3 options have been suggested to aid Lewis handle the business challenges in the advertising and marketing division. Each of these alternatives has actually been proposed for relieving the transition required to bring the advertising and marketing department in line with the requirements of the market and for making the cultural adjustment that would follow when the existing leader leaves.

Assimilation of marketing and advertising features. Separating Adverting and also Production features. Integration of Advertising with Operations.

Analysis of Alternatives.

Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merger days has know-how in business-to-business advertising and marketing along with company and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing and advertising functions.

The advantage of this method is that it will certainly integrate the two features while decreasing the demand for employing an additional resource for advertising and marketing. Along with this, Lewis would be heading the advertising department and also regardless her replacement would certainly be needed for the current duty that she is carrying out. The disadvantage of this choice is that external hiring may bring about bitterness from interior employees that may be eying the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Manufacturing: Given the affordable stress and high quality work called for from the advertising agency, it is recommended that Lewis needs to enable the manufacturing system to be a different function from the advertising device. Considering that the majority of advertising agencies had these 2 features as separate systems, it makes more sense to comply with the norm. Both features might be able to concentrate on their core turns on more effectively. The disadvantage of this approach would certainly be that extra expenses would have to be borne for establishing up separate manufacturing functions. In addition to this, a production head may need to be hired which might raise overheads for the company.

Combination of Advertising with Workflows: Since Lewis is already taking care of the advertising and also procedures departments all at once; it makes sense to integrate both features considering that she has actually been effectively caring for both ends. The fact that the two divisions currently have significant distinctions over allocation of resources recommends that this combination might be able to cause harmony specifically as Lewis would certainly be heading both ends.However there are numerous downsides of this action especially as it would certainly place way too much concern over Lewis's shoulders. The fact that Lewis needs to adapt her management style for the advertising division suggests that these 2 departments would be culturally diverse. In addition to this, Lewis may not be able to apply one sort of management design to both divisions which could lead to inadequacy in either among both functions.


An assessment of the three alternatives suggests that integration of advertising and marketing and operations would certainly not be a practical step due to the large differences in between the 2 divisions regardless of the fact that presently Lewis is managing both. While splitting up of the manufacturing function may have been a positive relocation for the marketing department, the fact that it would certainly suggest putting a third function under Lewis's wing suggests this need to be prevented.

Action Strategy.
Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Production feature will continue to be part of advertising under marketing feature.

Lewis will certainly divide herself from operations.

An autonomous leadership style with staff member empowerment will certainly be made use of in advertising department.

Open up door policy and also focus on cross departmental interaction will be focused on removing disharmony.

Contingency plan.

If the combination does not work out as planned, a backup plan would adhere to which would divide the manufacturing function from the marketing feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising and marketing department without an SVP. In that case the manufacturing function will definitely be divided by positioning it under an SVP production.