Banco Compartamos Life After The Ipo Case Study Solution


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Banco Compartamos Life After The Ipo Case Study Help

Background and Facts

Banco Compartamos Life After The Ipo an office products store for tiny and medium sized businesses has actually recently been associated with preparing for a merger with its competitor Residence Deport, which has actually affected performance levels in departmentswith the elderly manager involved in legal difficulties put forth by the government Trade Compensation. With the Marketing 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 near future. With challenges in the form of a potential cultural change and low staff member spirits, the organization requires a complete reengineering effort at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising and marketing division of Banco Compartamos Life After The Ipo is increasing unpredictability in the working environment causing different 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 significant function in impacting tactical decisions since Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Profession Commission's intervention at the same time. Provided the fact that the shop has a global visibility with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries might have the ability to affect performance or tactical objectives. Federal Profession Commission's antitrust match against the merging occupied useful time of the company's elderly management suggesting that 'political' factors can have serious effects for a worldwide organisation.

Economic Factors: Financial factors such as the emergence of local business in the international situation recommend that Banco Compartamos Life After The Ipo is flourishing in an environment where there is prospective growth of organisations. Fact that shop consumers are primarily looking for workplace supplies for residence workplaces recommends that the market has a climbing fad of entrepreneurs and residence based businesses.

Social factors: Social patterns in the economy reveal that customers are looking for benefit as well as appealing costs. Marketing research shows how the customer for Banco Compartamos Life After The Ipo does not have awareness regarding discovering solutions which can provide a combination of comfort and affordable.

Technical factors: Technology plays a vital function in Banco Compartamos Life After The Ipo's business strategy especially as the company is piloting Innovation facilities which would supply innovation sales as well as support in the kind of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and also Symptoms.

Several underlying Organizational Behavior issues can be seen in Banco Compartamos Life After The Ipo's case as highlighted in this area.

Worries concerning cultural change: There is concern about a cultural change that would occur when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with a lot of the team member currently showing unhappiness over this potential step. This expected change has created stress and anxiety in the workplace which has actually been coupled with the past tension of preparing the firm for a prospective merging with Residence Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is shortage of workers that can match the difficult environment of a fast-paced company. Not just does this result in trouble in locating the best people, it puts anxiety on brand-new hires as can not withstand the speed as well as pressure that the organization anticipates them to birth.

Double Reporting Lines: Beginners discover this organizational culture difficult and hard to handle especially as populated line partnerships are indicated to be weaker as a whole as well as objective setting and performance evaluation is still done by the solid line supervisor. This implies that newcomers can shed quality about their particular duties and purposes specifically as dotted line coverage does not maintain them in direct interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles despite the fact that it had been hypothesized that the latter would take Krasnow's placement came as a strike to her morale. Lewis may have been capable as well as suitable for the task yet the truth that Kransnow's separation would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Anxiety & Work Insecurity: Worry and also instability can be identified as two major concerns that Lewis would be managing particularly as the merger has actually now be cancelled and also 2 senior execs of the marketing division would be leaving. The entire obligation of the department would be dropping on Lewis's shoulders that would certainly not simply be in charge of brining regarding a cultural modification yet would certainly likewise have to show herself in her new function.

Inappropriate Administration Style of Leader: Lewis's management design and its conflict with the advertising department's function can additionally be viewed as an OB challenge particularly as she has actually been utilized to managing issues in the operations department where workers are taught to focus on procedures as well as obtain them right. The advertising division on the various other hand can be seen as a team of individuals that are utilized to being supported by Krasnow who focused a lot more on result than processes.

Interdepartmental Disagreements: Interdepartmental differences in between three divisions, advertising, merchandizing and also procedures specifically over the allotment of the marketing mix can be identified as an additional OB problem. The marketing division does not share the same vision as the various other 2 departments relating to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing as well as procedures departments do not agree over the advertising and marketing mix allowance among one an additional either.

Fragmentation in Marketing Division: Fragmentation between the marketing and advertising departments can be recognized as another OB concern which might need additional interest. The fact that the advertising and marketing areas in the marketing department are disconnected is preventing both divisions from obtaining from each various other's experience and also experience. Assimilation of advertising with retailing and operations would certainly come to be more difficult if the advertising and marketing department itself is degenerated which can be one more prospective OB problem.

Banco Compartamos Life After The Ipo Analysis

Various theories have actually been made use of to describe the conditions to obtain more clarity regarding the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors believe that juniors are passive and lazy, have little aspiration and also stand up to adjustment. The difficult version of this concept stressed coercion, tight controls, risks as well as penalties. Gradually it creates low productivity, subtle sabotage and also competition (Offer, 2003). The situation at Banco Compartamos Life After The Ipo is not totally adhering to Concept X, it can be seen that new hires are finding this environment rather stressful which may ultimately lead to a higher inclination of the management in the direction of Theory X. According to McGregor's advocated view, which he called Concept Y, the crucial task of the monitoring is to set up organizational problems to ensure that individuals can attain their own objectives best by directing their efforts in the direction of organizational rewards. If individuals locate no fulfillment in their job, the administration would have little choice however to count on concept X and also exterior control (Offer, 2003). Also while analyzing Lewis's administration style, concept X may have been suitable in the operations department to some extent however the Advertising and marketing division would certainly require dependence on Theory Y in order to get the imagination as well as originality from the teams.

Tuckman's Team effort Theory: As much as Lewis's worry regarding bringing harmony in between the advertising as well as advertising department is worried, this would initially lead to clash as gone over by Bruce Tuckman in his 'Team effort Concept'. By integrating the advertising as well as marketing division's work, there might be the very same initial disconnect which can lead to the second stage of 'storming' where the teams challenge one an additional.

When individuals are offered with adjustment, they go into stage one and also so there may be emotions like unhappiness, uncertainty, frustration, temper, fear, denial and also disorientation.The scenario at the marketing division of Banco Compartamos Life After The Ipo is similar so Lewis can get comfortable with the concept that it is not amazing habits. It is during this phase that Lewis will have to offer assistance to the department so that they can find a sense of instructions. It can be seen exactly how Krasnow has actually already made this transition less complicated by making Lewis get entailed in the department a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has reviews the significance of 'safety requires as being a reduced level demand of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and out of risk' is at the 2nd level of demands. Before a worker can be made to create mentally, he needs to have his 'Physical 'and 'Safety and security' requires satisfied.

SWOT Analysis for Banco Compartamos Life After The Ipo Case Study

Implication of Analysis.

The OB analysis has actually considered different theories to comprehend exactly how to cope with the existing situation at hand. The adhering to 3 choices have been recommended to aid Lewis deal with the organizational obstacles in the marketing department. Each of these choices has actually been recommended for easing the transition needed to bring the marketing department in line with the demands of the marketplace as well as for making the cultural change that would certainly adhere to as soon as the existing leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting and Manufacturing functions. Integration of Marketing with Operations.

Assessment of Alternatives.

Integration of Advertising & Marketing Functions: The internal advertising company of Banco Compartamos Life After The Ipo is already strength for the company in regards to saving up on overheads connected to advertising and also promo. Because no new recruitment has actually been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the advertising function, this is a desirable possibility for incorporating the advertising and marketing features. Judith Shapiro that has earlier been spoken with by Lewis during the earlier merger days has know-how in business-to-business advertising and marketing along with firm and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to handle both advertising and marketing functions.

The benefit of this technique is that it will integrate both functions while minimizing the demand for hiring an additional resource for advertising and marketing. Along with this, Lewis would be heading the marketing department and also regardless her substitute would be needed for the present role that she is performing. The downside of this choice is that external hiring might produce resentment from interior personnel that may be eying the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting as well as Manufacturing: Given the affordable pressures and also high top quality work needed from the marketing firm, it is recommended that Lewis should permit the production device to be a separate feature from the advertising device. Because most advertising and marketing firms had these 2 features as separate units, it makes more feeling to adhere to the norm.

Integration of Advertising with Operations: Given that Lewis is already dealing with the marketing as well as operations divisions all at once; it makes good sense to incorporate both functions considering that she has been successfully dealing with both ends. The truth that both divisions currently have significant distinctions over allowance of sources recommends that this assimilation may be able to bring about harmony particularly as Lewis would certainly be heading both ends.However there are various disadvantages of this action especially as it would place too much burden over Lewis's shoulders. The fact that Lewis needs to adjust her administration style for the marketing division suggests that these two departments would certainly be culturally diverse. In addition to this, Lewis may not have the ability to apply one sort of leadership style to both departments which can result in inefficiency in either one of both features.


An evaluation of the three choices suggests that integration of marketing and operations would certainly not be a practical relocation due to the vast distinctions in between the 2 departments regardless of the fact that presently Lewis is dealing with both. While splitting up of the manufacturing feature might have been a positive relocation for the advertising and marketing division, the fact that it would suggest putting a 3rd function under Lewis's wing suggests this ought to be stayed clear of.

Activity Strategy.
Lewis will take over the function of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Manufacturing feature will certainly stay component of advertising and marketing under advertising and marketing function.

Lewis will certainly separate herself from operations.

A democratic management design with staff member empowerment will be used in advertising department.

Open up door policy as well as focus on cross department interaction will be targeted at eliminating dissonance.

Contingency strategy.

If the combination does not work out as prepared, a contingency strategy would certainly follow which would divide the manufacturing feature from the advertising function to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the marketing division without an SVP. Because case the manufacturing feature will definitely be separated by putting it under an SVP production.