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Banc Ones Halcyon Days Of Merger Integration Case Study Solution

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Banc Ones Halcyon Days Of Merger Integration Case Study Analysis

Background and Facts

Banc Ones Halcyon Days Of Merger Integration an office products store for tiny as well as moderate sized businesses has just recently been associated with preparing for a merger with its competitor Home Deport, which has impacted performance levels in departmentswith the senior supervisor involved in legal issues presented by the government Trade Compensation. With the Advertising and marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the future. With obstacles in the type of a possible cultural change and also reduced worker morale, the organization needs a full reengineering effort at the marketing division.

Problem Statement

The prospective cultural change at the advertising and marketing department of Banc Ones Halcyon Days Of Merger Integration is raising unpredictability in the working environment resulting in various 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 role in impacting tactical decisions since Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Profession Payment's treatment while doing so. Offered the reality that the shop has a worldwide presence with branches in UK, U.S.A., Canada and Germany, political factors in each of these nations may be able to influence performance or calculated objectives. Federal Profession Compensation's antitrust fit against the merging occupied beneficial time of the company's senior management recommending that 'political' factors can have severe ramifications for a worldwide business.

Economic Factors: Financial factors such as the appearance of small businesses in the global circumstance suggest that Banc Ones Halcyon Days Of Merger Integration is growing in an environment where there is prospective development of services. Truth that shop clients are mostly looking for workplace supplies for home workplaces recommends that the market has an increasing trend of business owners as well as house based organisations.

Social factors: Social fads in the economy show that customers are searching for comfort in addition to attractive rates. Marketing research shows how the customer for Banc Ones Halcyon Days Of Merger Integration does not have awareness concerning discovering remedies which can offer a combination of benefit as well as low costs.

Technical factors: Innovation plays a crucial role in Banc Ones Halcyon Days Of Merger Integration's organisation approach specifically as the organization is piloting Modern technology facilities which would offer modern technology sales and support in the type of memory upgrades, outer installments. (Summary of PEST in appendix 2).

OB Issues as well as Effects.

Numerous underlying Business Behavior problems can be seen in Banc Ones Halcyon Days Of Merger Integration's case as highlighted in this section.

Uneasiness about social modification: There is worry regarding a cultural modification that would occur as soon as Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with the majority of the staff members currently revealing discontent over this potential move. This expected adjustment has actually produced anxiety in the work environment which has been combined with the previous anxiety of preparing the firm for a prospective merger with House Deport.

Difficult Task Environment for Newcomers: There is shortage of personnel that can match the demanding setting of a hectic organization. Not just does this bring about trouble in locating the right people, it places stress and anxiety on new hires as can not hold up against the rate as well as pressure that the organization expects them to bear.

Double Coverage Lines: Newbies discover this organizational society difficult and also hard to handle specifically as populated line partnerships are implied to be weak generally and also objective setup and also performance assessment is still done by the solid line supervisor. This means that newcomers might shed clarity regarding their particular roles and also purposes specifically as dotted line coverage does not maintain them in direct communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles although it had been hypothesized that the last would take Krasnow's position came as a strike to her spirits. Lewis might have been qualified and also appropriate for the job however the fact that Kransnow's departure would make Coles a straight record to Lewis may have been the reason for Coles' resignation from solutions.

Worry & Job Instability: Worry and instability can be determined as 2 significant problems that Lewis would be taking care of especially as the merging has actually now be terminated and also 2 senior execs of the advertising and marketing division would be leaving. The whole responsibility of the division would be dropping on Lewis's shoulders that would certainly not simply supervise of brining concerning a social adjustment yet would likewise need to confirm herself in her brand-new function.

Incompatible Management Design of Leader: Lewis's monitoring design and its conflict with the marketing department's duty can likewise be seen as an OB difficulty specifically as she has been used to handling problems in the operations division where employees are instructed to focus on procedures and get them. The marketing division on the various other hand can be seen as a group of individuals who are utilized to being supported by Krasnow who focused extra on result than procedures.

Interdepartmental Disputes: Interdepartmental disputes in between three divisions, advertising and marketing, merchandizing as well as procedures respectively over the appropriation of the advertising mix can be identified as one more OB worry. Although the advertising and marketing department does not share the exact same vision as the various other two divisions pertaining to the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and also procedures divisions do not concur over the advertising and marketing mix appropriation amongst each other either.

Disintegration in Advertising Division: Fragmentation in between the advertising and marketing divisions can be determined as an additional OB problem which could need additional focus. The truth that the marketing and advertising sections in the advertising and marketing department are detached is preventing both departments from obtaining from each other's experience as well as expertise. Assimilation of advertising with retailing and also procedures would end up being more difficult if the marketing division itself is degenerated which can be another prospective OB worry.

Banc Ones Halcyon Days Of Merger Integration Analysis

Various concepts have been made use of to discuss the conditions to get further quality regarding the situation available.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers believe that staffs are passive as well as lazy, have little ambition and also resist modification. The situation at Banc Ones Halcyon Days Of Merger Integration is not completely adhering to Theory X, it can be seen that brand-new hires are locating this environment instead demanding which may ultimately lead to a better disposition of the administration in the direction of Concept X. Even while examining Lewis's management design, theory X may have been appropriate in the operations department to some degree yet the Advertising and marketing division would certainly require reliance on Theory Y in order to obtain the creative thinking and creativity from the teams.

Tuckman's Synergy Concept: As far as Lewis's problem regarding bringing consistency in between the advertising as well as marketing division is concerned, this would at first lead to clash as talked about by Bruce Tuckman in his 'Synergy Concept'. By combining the advertising as well as advertising department's work, there might be the exact same first disconnect which could lead to the 2nd stage of 'storming' where the groups challenge one another.

Bridges' Shift Version: As per William Bridge's concept (appendix 4), people are fairly uneasy with change, which is evident by the situation at Banc Ones Halcyon Days Of Merger Integration The situation can be viewed as a typical course of life if is researched as per Bridge's concept where he explains that people undergo 3 phases of shift when they experience change. 'Closing, losing and Letting go', The Neutral Area and also 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they enter phase one and so there may be feelings like despair, unpredictability, frustration, temper, concern, rejection and disorientation.The circumstance at the marketing division of Banc Ones Halcyon Days Of Merger Integration is similar so Lewis can get comfortable with the suggestion that it is not phenomenal habits. In the 2nd stage, there may be a demand to connect the gap between the brand-new and old culture so Lewis may have to face this experience as soon as Krasnow leaves. There may be low morale and low efficiency at this phase which must not be taken as an obstacle. It is throughout this phase that Lewis will certainly need to offer support to the department to ensure that they can find an orientation. It can be seen just how Krasnow has actually currently made this transition easier by making Lewis get involved in the department a year prior to his real separation. According to Bridges' Design, phase 3 will certainly cause visibility to discovering, High energy and dedication as people will certainly accept the adjustment (Bridges, 2004).

Maslow's Need hierarchy: The OB concern pertaining to insecurity at the workplace has actually been caused to start with by the modification in management and also secondly by the fact that the merger will certainly no longer be launched. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has talks about the significance of 'safety needs as being a reduced degree requirement of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel secure and also untouched' goes to the second degree of requirements. Prior to an employee can be made to create psychologically, he requires to have his 'Physiological 'and 'Safety' needs fulfilled. This suggests that unless the workers are made to really feel safe and secure regarding their present employment condition in Banc Ones Halcyon Days Of Merger Integration they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Banc Ones Halcyon Days Of Merger Integration Case Study



Ramification of Analysis.

The OB analysis has considered numerous theories to comprehend how to deal with the existing circumstance available. The complying with three alternatives have been suggested to help Lewis manage the business difficulties in the advertising department. Each of these choices has actually been proposed for reducing the transition required to bring the advertising division according to the requirements of the market as well as for making the cultural modification that would certainly comply with as soon as the current leader leaves.

Integration of marketing and advertising features. Separating Adverting and Manufacturing functions. Integration of Marketing with Procedures.

Evaluation of Alternatives.

Combination of Marketing & Advertising And Marketing Functions: The in-house advertising and marketing agency of Banc Ones Halcyon Days Of Merger Integration is currently toughness for the organization in terms of saving up on expenses associated with marketing as well as promotion. Since no brand-new recruitment has actually been done after Bridget Cole's departure with the coverage line being directly appointed to Krasnow for the marketing feature, this is a favorable chance for integrating the advertising and marketing features. Judith Shapiro who has earlier been interviewed by Lewis during the earlier merging days has knowledge in business-to-business advertising and marketing along with company and retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to manage both marketing and advertising features.

The benefit of this strategy is that it will certainly integrate both functions while minimizing the need for hiring an extra source for advertising and marketing. Along with this, Lewis would be heading the advertising and marketing division as well as in any case her substitute would be needed for the present function that she is executing. The negative aspect of this alternative is that exterior hiring may produce animosity from interior personnel who may be looking at the placement of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Manufacturing: Given the competitive stress and also premium quality job required from the ad agency, it is suggested that Lewis must permit the production unit to be a different feature from the advertising and marketing unit. Because the majority of advertising agencies had these 2 features as separate units, it makes even more feeling to adhere to the standard. Both functions may be able to concentrate on their core activates extra successfully. However, the drawback of this approach would certainly be that added expenses would certainly need to be birthed for establishing separate production functions. A production head may have to be hired which can boost overheads for the company.

Combination of Marketing with Operations: Since Lewis is already taking care of the marketing and operations divisions concurrently; it makes feeling to incorporate the two functions given that she has been efficiently taking treatment of both ends. The fact that Lewis has to adapt her administration design for the marketing department recommends that these two departments would be culturally diverse.

Recommendation.



An assessment of the 3 options indicates that assimilation of advertising and marketing and also operations would certainly not be a feasible step due to the large distinctions between the 2 divisions despite the fact that presently Lewis is handling both. While splitting up of the manufacturing feature might have been a positive relocation for the marketing department, the reality that it would certainly imply placing a third function under Lewis's wing suggests this ought to be avoided.

Activity Plan.

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

Marketing and advertising features would be combined.

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

Manufacturing function will certainly continue to be component of advertising under marketing function.

Lewis will certainly divide herself from procedures.

An autonomous management design with employee empowerment will certainly be made use of in advertising and marketing department.

Open up door plan and emphasis on cross department communication will be aimed at removing disharmony.

Contingency plan.

If the combination does not work out as intended, a backup plan would follow which would separate the manufacturing function from the marketing feature to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising and marketing division without an SVP. In that case the manufacturing feature will definitely be divided by placing it under an SVP manufacturing.