Banc Ones Halcyon Days Of Merger Integration Case Study Help


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Banc Ones Halcyon Days Of Merger Integration Case Study Solution

Background and Facts

Banc Ones Halcyon Days Of Merger Integration a workplace supplies store for small as well as moderate sized companies has just recently been associated with planning for a merger with its rival House Deport, which has actually impacted performance degrees in departmentswith the elderly manager associated with legal complications presented by the government Trade Payment. With the Advertising Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the near future. With challenges in the type of a prospective cultural change and also reduced employee morale, the organization wants a complete reengineering initiative at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective social modification at the marketing division of Banc Ones Halcyon Days Of Merger Integration is enhancing unpredictability in the workplace leading to numerous difficulties for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing calculated choices because Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Trade Commission's intervention in the process. Provided the fact that the shop has a global presence with branches in UK, USA, Canada and also Germany, political consider each of these countries might be able to impact performance or strategic objectives. Federal Profession Payment's antitrust suit versus the merger used up useful time of the company's senior monitoring recommending that 'political' factors can have severe ramifications for a global company.

Economic Factors: Financial factors such as the emergence of small companies in the worldwide circumstance recommend that Banc Ones Halcyon Days Of Merger Integration is flourishing in an environment where there is potential growth of businesses. Along with this, truth that store clients are mostly searching for workplace products for office suggests that the marketplace has an increasing pattern of business owners and online businesses.

Social factors: Social trends in the economic climate show that customers are seeking comfort in addition to attractive rates. Marketing research shows how the customer for Banc Ones Halcyon Days Of Merger Integration lacks understanding regarding finding options which can use a combination of ease as well as inexpensive.

Technical factors: Technology plays a crucial function in Banc Ones Halcyon Days Of Merger Integration's company technique specifically as the organization is piloting Technology facilities which would certainly provide technology sales and also support in the type of memory upgrades, peripheral installations. (Summary of BUG in appendix 2).

OB Issues as well as Effects.

Numerous underlying Organizational Actions problems can be seen in Banc Ones Halcyon Days Of Merger Integration's case as highlighted in this area.

Apprehensions concerning cultural change: There is apprehension concerning a social change that would certainly occur when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with the majority of the team member already showing discontent over this prospective action. This anticipated modification has developed tension in the office which has actually been paired with the past tension of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is lack of personnel that can match the demanding atmosphere of a busy company. Not only does this result in problem in finding the best people, it puts stress and anxiety on new hires as can not endure the pace and also pressure that the organization expects them to bear.

Dual Reporting Lines: Novices discover this organizational culture troublesome as well as hard to cope with especially as populated line connections are implied to be weaker generally as well as objective setting and performance assessment is still done by the solid line manager. This suggests that beginners might shed quality concerning their respective duties and also goals specifically as populated line reporting does not keep them in direct interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles even though it had actually been hypothesized that the latter would certainly take Krasnow's position came as a blow to her spirits. Lewis may have been qualified as well as proper for the job but the reality that Kransnow's departure would make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Anxiety & Work Instability: Anxiety and instability can be recognized as two major worries that Lewis would certainly be handling particularly as the merger has now be terminated and 2 elderly execs of the marketing department would be leaving. The entire obligation of the division would certainly be dropping on Lewis's shoulders that would certainly not simply be in charge of brining regarding a social change however would certainly likewise have to show herself in her new role.

Inappropriate Administration Style of Leader: Lewis's management style and its incompatibility with the marketing department's function can likewise be viewed as an OB obstacle particularly as she has been made use of to managing concerns in the procedures division where employees are educated to focus on processes and also obtain them right. The marketing department on the other hand can be viewed as a group of people that are made use of to being nurtured by Krasnow who focused a lot more on output than processes.

Interdepartmental Arguments: Interdepartmental differences in between three divisions, marketing, merchandizing and also procedures specifically over the allocation of the advertising and marketing mix can be recognized as an additional OB concern. Although the advertising department does not share the same vision as the other 2 departments regarding the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and also operations departments do not concur over the advertising and marketing mix allowance among one another either.

Disintegration in Advertising Division: Fragmentation in between the marketing and advertising departments can be recognized as one more OB problem which can need additional attention. The truth that the advertising and marketing areas in the marketing department are detached is preventing both divisions from getting from each various other's experience as well as expertise. Combination of advertising with merchandising and also operations would become harder if the advertising and marketing department itself is disintegrated which can be an additional prospective OB concern.

Banc Ones Halcyon Days Of Merger Integration Analysis

Numerous theories have actually been utilized to explain the situations to get more quality concerning the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that staffs are passive and careless, have little aspiration and resist change. The circumstance at Banc Ones Halcyon Days Of Merger Integration is not entirely following Theory X, it can be seen that brand-new hires are discovering this environment instead stressful which might at some point lead to a greater disposition of the management towards Theory X. Also while examining Lewis's administration design, concept X may have been ideal in the procedures department to some extent yet the Advertising and marketing division would certainly call for reliance on Concept Y in order to obtain the imagination and also originality from the groups.

Tuckman's Teamwork Concept: As far as Lewis's worry about bringing harmony in between the marketing and advertising and marketing department is worried, this would originally lead to contrast as reviewed by Bruce Tuckman in his 'Synergy Concept'. By integrating the advertising and marketing as well as marketing division's work, there might be the exact same initial separate which can lead to the 2nd stage of 'storming' where the groups challenge one an additional.

Bridges' Shift Version: According To William Bridge's theory (appendix 4), individuals are rather unpleasant with change, which is obvious by the scenario at Banc Ones Halcyon Days Of Merger Integration The situation can be seen as a normal program of life if is studied according to Bridge's theory where he discusses that people go through three phases of transition when they experience change. 'Closing, shedding and Letting go', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people exist with adjustment, they enter stage one and so there may be feelings like sadness, uncertainty, irritation, anger, anxiety, denial as well as disorientation.The situation at the marketing department of Banc Ones Halcyon Days Of Merger Integration is comparable so Lewis can get comfortable with the idea that it is not remarkable habits. In the second stage, there may be a requirement to connect the gap between the brand-new and also old culture so Lewis may need to encounter this challenge as soon as Krasnow leaves. There may be low morale and also low productivity at this phase which must not be taken as an obstacle. It is during this phase that Lewis will certainly need to provide assistance to the division to ensure that they can locate a sense of direction. It can be seen just how Krasnow has actually currently made this shift much easier by making Lewis get associated with the division a year prior to his actual separation. Based on Bridges' Model, stage three will produce visibility to knowing, High power as well as commitment as people will embrace the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has reviews the significance of 'protection needs as being a reduced level demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel safe and secure and out of risk' is at the 2nd degree of requirements. Before an employee can be made to develop mentally, he requires to have his 'Physical 'and 'Safety and security' needs fulfilled.

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

Ramification of Analysis.

The OB analysis has actually taken a look at various theories to recognize how to cope with the present circumstance at hand. The adhering to three options have been recommended to assist Lewis manage the organizational difficulties in the advertising and marketing department. Each of these options has been suggested for relieving the transition needed to bring the advertising division according to the demands of the marketplace and for making the cultural adjustment that would comply with when the current leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and Production features. Combination of Advertising with Procedures.

Analysis of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merger days has experience in business-to-business advertising and marketing along with company and also retail advertising experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to handle both advertising and advertising and marketing features.

The advantage of this technique is that it will integrate the two functions while decreasing the requirement for working with an extra resource for advertising. Along with this, Lewis would be heading the advertising and marketing department and in any case her substitute would certainly be needed for the present duty that she is performing. The negative aspect of this option is that exterior hiring might bring about bitterness from internal workers who may be eying the position of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and also Production: Given the competitive pressures as well as premium quality work called for from the ad agency, it is advised that Lewis must allow the manufacturing device to be a different function from the marketing unit. Considering that the majority of ad agency had these two functions as different devices, it makes even more sense to comply with the norm. In addition to this, both features might be able to concentrate on their core turns on much more successfully. The disadvantage of this method would certainly be that added expenses would certainly have to be birthed for establishing up separate production functions. A manufacturing head might have to be worked with which might enhance overheads for the organization.

Combination of Advertising with Operations: Because Lewis is already taking care of the advertising and procedures divisions concurrently; it makes feeling to integrate the 2 features since she has been efficiently taking care of both ends. The reality that Lewis has to adapt her monitoring design for the marketing division recommends that these two departments would certainly be culturally diverse.


An evaluation of the 3 alternatives shows that assimilation of marketing and procedures would certainly not be a viable action as a result of the huge differences in between the two departments although that presently Lewis is taking care of both. While separation of the manufacturing function might have been a desirable action for the advertising and marketing division, the truth that it would indicate placing a third feature under Lewis's wing implies this should be prevented. The assimilation of the advertising department is the best alternative in terms of obtaining the optimum arise from the department. An action prepare for this alternative is discussed listed below.

Action Plan.
Lewis will take control of the role of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

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

Lewis will separate herself from procedures.

An autonomous leadership style with worker empowerment will certainly be utilized in advertising division.

Open door plan and also emphasis on cross departmental interaction will certainly be targeted at eliminating dissonance.

Backup plan.

If the assimilation does not exercise as prepared, a backup strategy would adhere to which would certainly separate the manufacturing function from the marketing feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing division without an SVP. In that case the manufacturing feature will absolutely be divided by placing it under an SVP manufacturing.