Atandts Acquisition Of Ncr Case Study Help


Home >> Harvard >> Atandts Acquisition Of Ncr >>

Atandts Acquisition Of Ncr Case Study Analysis

Background and Facts

Atandts Acquisition Of Ncr a workplace materials store for little as well as medium sized companies has lately been involved in preparing for a merger with its rival House Deport, which has actually influenced performance degrees in departmentswith the elderly manager associated with lawful issues presented by the government Profession Commission. With the Marketing Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the duty in the near future. With difficulties in the form of a prospective cultural adjustment and also reduced employee spirits, the company wants a total reengineering effort at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The potential cultural modification at the advertising department of Atandts Acquisition Of Ncr is raising uncertainty in the working environment bring about different obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting strategic choices since Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Profession Compensation's intervention in the process. Given the fact that the shop has a worldwide presence with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries may have the ability to influence efficiency or critical goals. Federal Profession Payment's antitrust suit versus the merger occupied important time of the organization's senior administration recommending that 'political' factors can have significant ramifications for a global company.

Economic Factors: Economic factors such as the appearance of small companies in the global circumstance suggest that Atandts Acquisition Of Ncr is prospering in a setting where there is potential development of services. Truth that shop consumers are mainly looking for workplace products for residence workplaces recommends that the market has an increasing fad of entrepreneurs and also home based services.

Social factors: Social trends in the economic situation reveal that customers are searching for benefit along with appealing rates. Marketing research demonstrates how the customer for Atandts Acquisition Of Ncr lacks awareness regarding locating remedies which can supply a mix of ease and inexpensive.

Technical factors: Modern technology plays a crucial function in Atandts Acquisition Of Ncr's service approach specifically as the company is piloting Technology centers which would offer innovation sales as well as support in the type of memory upgrades, outer installments. (Recap of PARASITE in appendix 2).

OB Issues as well as Effects.

Several underlying Organizational Habits concerns can be seen in Atandts Acquisition Of Ncr's case as highlighted in this area.

Apprehensions about social change: There is apprehension concerning a cultural adjustment that would certainly occur as soon as Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with a lot of the team member currently showing discontent over this potential action. This expected adjustment has actually produced anxiety in the office which has actually been coupled with the previous tension of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is scarcity of workers that can match the demanding atmosphere of a fast-paced company. Not just does this bring about trouble in locating the best people, it puts tension on new hires as can not endure the speed as well as stress that the company anticipates them to bear.

Double Reporting Lines: Newbies locate this organizational culture difficult as well as difficult to handle particularly as populated line partnerships are indicated to be weaker as a whole and also objective setting and also efficiency analysis is still done by the solid line supervisor. This suggests that newbies might lose quality about their respective functions as well as objectives particularly as dotted line coverage does not keep them in direct communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been speculated that the latter would take Krasnow's placement came as a strike to her morale. Lewis may have been capable as well as ideal for the work however the reality that Kransnow's separation would make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.

Concern & Work Instability: Worry as well as insecurity can be determined as 2 major issues that Lewis would be managing especially as the merger has currently be cancelled as well as 2 elderly execs of the advertising department would be leaving. The whole obligation of the division would certainly be falling on Lewis's shoulders that would certainly not simply supervise of brining about a social change however would additionally need to verify herself in her new function.

Incompatible Administration Design of Leader: Lewis's management design and also its incompatibility with the marketing department's duty can likewise be seen as an OB obstacle specifically as she has been used to taking care of concerns in the procedures division where workers are shown to focus on procedures and get them. The marketing division on the other hand can be viewed as a group of individuals that are made use of to being nurtured by Krasnow that focused much more on output than procedures.

Interdepartmental Disagreements: Interdepartmental disputes between 3 divisions, marketing, merchandizing and also operations specifically over the allowance of the advertising and marketing mix can be recognized as one more OB problem. Although the advertising department does not share the same vision as the other two departments pertaining to the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and also procedures divisions do not agree over the advertising and marketing mix allocation amongst one another either.

Fragmentation in Advertising And Marketing Department: Disintegration in between the advertising and marketing departments can be determined as one more OB issue which might need additional interest. The reality that the marketing and advertising areas in the advertising and marketing division are separated is preventing both divisions from acquiring from each other's experience and also know-how. Combination of advertising and marketing with merchandising as well as operations would come to be harder if the marketing division itself is disintegrated which can be another possible OB issue.

Atandts Acquisition Of Ncr Analysis

Different concepts have been used to clarify the circumstances to obtain more clarity concerning the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors think that staffs are easy as well as careless, have little aspiration as well as withstand modification. The difficult version of this concept highlighted threat, limited controls, dangers as well as penalties. With time it generates reduced efficiency, subtle sabotage as well as competition (Offer, 2003). The situation at Atandts Acquisition Of Ncr is not totally adhering to Theory X, it can be seen that new hires are finding this setting instead stressful which might ultimately lead to a better disposition of the monitoring towards Concept X. Based on McGregor's advocated view, which he called Theory Y, the crucial job of the management is to organize business problems to make sure that individuals can achieve their very own objectives best by guiding their initiatives towards business rewards. If individuals find no contentment in their work, the monitoring would certainly have little selection but to rely on concept X and outside control (Offer, 2003). Even while examining Lewis's administration design, concept X may have appropriated in the operations department somewhat but the Advertising division would certainly call for dependence on Theory Y so as to get the creative thinking and also creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's problem concerning bringing consistency in between the advertising as well as advertising department is worried, this would at first lead to contrast as gone over by Bruce Tuckman in his 'Synergy Theory'. By combining the marketing and marketing division's work, there might be the very same first detach which can lead to the 2nd phase of 'storming' where the groups test one another.

Bridges' Change Version: As per William Bridge's theory (appendix 4), people are fairly uneasy with adjustment, which is noticeable by the situation at Atandts Acquisition Of Ncr The situation can be seen as a normal training course of life if is researched according to Bridge's concept where he explains that people undergo three stages of change when they experience adjustment. 'Ending, losing as well as Releasing', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When people are presented with change, they get in stage one and so there might be emotions like unhappiness, uncertainty, aggravation, rage, worry, denial and disorientation.The situation at the advertising and marketing department of Atandts Acquisition Of Ncr is similar so Lewis can get comfy with the idea that it is not extraordinary habits. In the 2nd stage, there might be a demand to bridge the gap between the brand-new and also old culture so Lewis might need to encounter this ordeal as soon as Krasnow leaves. There may be low spirits as well as reduced performance at this stage which ought to not be taken as a problem. It is throughout this phase that Lewis will have to offer assistance to the department to make sure that they can discover a sense of direction. It can be seen exactly how Krasnow has already made this change much easier by making Lewis get associated with the department a year before his actual departure. Based on Bridges' Model, stage three will certainly bring about visibility to learning, High power as well as dedication as people will accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has discusses the relevance of 'protection requires as being a lower degree need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and secure and also out of threat' is at the second level of demands. Before a worker can be made to create emotionally, he requires to have his 'Physical 'as well as 'Security' requires satisfied.

SWOT Analysis for Atandts Acquisition Of Ncr Case Study

Effects of Analysis.

The OB analysis has actually considered numerous theories to recognize exactly how to deal with the current scenario at hand. The complying with three alternatives have been proposed to assist Lewis manage the organizational obstacles in the marketing department. Each of these choices has actually been suggested for reducing the shift required to bring the advertising division according to the needs of the market and for making the cultural modification that would certainly comply with once the present leader leaves.

Assimilation of marketing and advertising features. Separating Adverting as well as Manufacturing functions. Assimilation of Advertising And Marketing with Operations.

Assessment of Alternatives.

Assimilation of Advertising And Marketing & Advertising Functions: The internal advertising firm of Atandts Acquisition Of Ncr is already strength for the organization in terms of saving up on overheads related to advertising and also promo. Considering that no new employment has been done after Bridget Cole's separation with the reporting line being straight designated to Krasnow for the marketing function, this is a desirable opportunity for integrating the advertising and marketing functions. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merging days has competence in business-to-business advertising along with firm and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to deal with both advertising and marketing functions.

The advantage of this strategy is that it will certainly incorporate both features while reducing the demand for hiring an extra source for advertising and marketing. Lewis would be heading the marketing division and in any case her replacement would certainly be needed for the present role that she is performing. The downside of this option is that external hiring might bring about resentment from inner employees that might be eying the placement of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Manufacturing: Offered the competitive stress and also excellent quality work needed from the ad agency, it is suggested that Lewis needs to permit the production unit to be a different function from the advertising unit. Because many ad agency had these 2 functions as separate units, it makes more sense to adhere to the norm. In addition to this, both features might be able to concentrate on their core triggers extra efficiently. Nonetheless, the negative aspect of this strategy would be that added prices would certainly need to be borne for setting up separate production functions. Along with this, a manufacturing head might have to be hired which could boost expenses for the organization.

Integration of Advertising with Workflows: Given that Lewis is currently taking care of the marketing and also procedures divisions at the same time; it makes sense to incorporate the two features since she has actually been efficiently taking care of both ends. The reality that Lewis has to adjust her management design for the advertising division recommends that these 2 divisions would certainly be culturally diverse.


An assessment of the three choices shows that integration of marketing and also procedures would not be a feasible step because of the vast differences between both departments although that presently Lewis is handling both. While separation of the manufacturing function may have been a desirable move for the advertising and marketing division, the reality that it would imply putting a third function under Lewis's wing means this must be avoided. The combination of the advertising division is the best choice in terms of getting the ideal results from the division. An activity prepare for this option is talked about listed below.

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

Advertising and Marketing functions would certainly be merged.

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

Manufacturing feature will remain part of marketing under advertising and marketing feature.

Lewis will certainly divide herself from operations.

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

Open up door plan and also focus on cross departmental communication will certainly be aimed at eliminating discord.

Backup plan.

If the assimilation does not work out as planned, a backup plan would certainly comply with which would certainly divide the manufacturing function 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 certainly be heading the advertising and marketing department without an SVP. Because case the production feature will most definitely be divided by positioning it under an SVP manufacturing.