Bank Of Taiwan Case Study Analysis


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Background and Facts

Bank Of Taiwan a workplace supplies merchant for little and medium sized companies has just recently been associated with planning for a merging with its competitor Home Deport, which has impacted performance levels in departmentswith the senior manager involved in legal complications put forth by the government Trade Compensation. With the Marketing Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the near future. With obstacles in the form of a potential cultural adjustment as well as low worker morale, the company is in need of a total reengineering initiative at the marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural adjustment at the marketing department of Bank Of Taiwan is raising unpredictability in the working environment resulting in various obstacles for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting strategic choices considering that Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Payment's intervention while doing so. Offered the truth that the store has an international presence with branches in UK, USA, Canada and also Germany, political consider each of these countries might have the ability to affect efficiency or critical objectives. Federal Trade Compensation's antitrust match against the merging used up important time of the company's senior monitoring recommending that 'political' factors can have major ramifications for a global organisation.

Economic Factors: Financial factors such as the development of small businesses in the worldwide situation suggest that Bank Of Taiwan is thriving in an environment where there is prospective development of services. Along with this, fact that shop clients are mostly trying to find workplace products for home offices suggests that the market has a climbing pattern of entrepreneurs and online services.

Social factors: Social patterns in the economy show that clients are searching for convenience as well as eye-catching rates. Marketing research demonstrates how the consumer for Bank Of Taiwan does not have recognition concerning discovering options which can provide a mix of benefit and also affordable.

Technical factors: Technology plays an important role in Bank Of Taiwan's organisation strategy specifically as the organization is piloting Modern technology centers which would supply innovation sales as well as support in the type of memory upgrades, peripheral setups. (Summary of PARASITE in appendix 2).

OB Issues and also Symptoms.

Several underlying Organizational Behavior problems can be seen in Bank Of Taiwan's case as highlighted in this section.

Uneasiness regarding social modification: There is worry regarding a social modification that would occur when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Marketing with the majority of the staff members already showing unhappiness over this potential relocation. This anticipated change has actually produced tension in the work environment which has actually been coupled with the past anxiety of preparing the firm for a possible merger with House Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is scarcity of personnel that can match the demanding environment of a fast-paced organization. Not just does this result in trouble in discovering the appropriate people, it puts stress and anxiety on new hires as can not withstand the speed as well as stress that the company expects them to bear.

Dual Coverage Lines: Beginners locate this business culture cumbersome as well as tough to handle particularly as dotted line relationships are implied to be weak generally and also unbiased setup and also performance examination is still done by the solid line manager. This suggests that newcomers might lose quality concerning their particular functions as well as objectives particularly as populated line coverage does not keep them in direct interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had actually been hypothesized that the last would certainly take Krasnow's placement came as an impact to her morale. Lewis might have been capable and also appropriate for the job however the reality that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Work Insecurity: Anxiety and also instability can be determined as 2 major concerns that Lewis would be handling particularly as the merging has currently be cancelled and two elderly executives of the advertising division would be leaving. The entire duty of the department would certainly be dropping on Lewis's shoulders that would not just supervise of brining regarding a cultural modification however would certainly likewise need to prove herself in her brand-new function.

Incompatible Administration Design of Leader: Lewis's monitoring style as well as its incompatibility with the advertising and marketing division's role can also be viewed as an OB challenge specifically as she has been utilized to taking care of issues in the procedures division where workers are taught to focus on procedures and get them right. The advertising and marketing department on the other hand can be viewed as a team of individuals that are used to being supported by Krasnow that concentrated a lot more on output than procedures.

Interdepartmental Arguments: Interdepartmental arguments between 3 departments, advertising and marketing, merchandizing as well as operations specifically over the allocation of the advertising and marketing mix can be recognized as one more OB problem. Although the advertising and marketing department does not share the very same vision as the various other two divisions regarding the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing as well as procedures departments do not agree over the marketing mix appropriation amongst each other either.

Disintegration in Marketing Department: Disintegration in between the marketing and advertising divisions can be identified as one more OB problem which can need more focus. The truth that the advertising and marketing sections in the marketing department are detached is stopping both divisions from acquiring from each various other's experience and knowledge. Combination of advertising with merchandising and also operations would certainly come to be harder if the advertising division itself is disintegrated which can be another possible OB issue.

Bank Of Taiwan Analysis

Various concepts have actually been made use of to describe the conditions to get further clarity regarding the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers believe that staffs are passive and also careless, have little passion as well as withstand change. The difficult variation of this concept highlighted coercion, limited controls, threats as well as penalties. Over time it produces reduced performance, refined sabotage as well as rivalry (Deal, 2003). The situation at Bank Of Taiwan is not entirely adhering to Concept X, it can be seen that brand-new hires are locating this environment rather difficult which might at some point lead to a better inclination of the monitoring towards Theory X. As per McGregor's promoted view, which he called Concept Y, the crucial task of the administration is to prepare organizational problems so that people can achieve their very own goals best by directing their initiatives towards organizational rewards. If individuals discover no contentment in their job, the management would have little option however to depend on theory X and also external control (Deal, 2003). Also while analyzing Lewis's management design, theory X might have appropriated in the procedures department somewhat but the Advertising department would certainly call for reliance on Concept Y to get the imagination and also originality from the teams.

Tuckman's Synergy Concept: As far as Lewis's worry concerning bringing consistency in between the marketing and also marketing division is concerned, this would originally lead to contrast as discussed by Bruce Tuckman in his 'Synergy Concept'. By integrating the marketing and marketing department's job, there might be the very same first detach which might lead to the second stage of 'storming' where the groups test one another.

Bridges' Shift Version: According To William Bridge's concept (appendix 4), people are quite uncomfortable with adjustment, which is obvious by the circumstance at Bank Of Taiwan The situation can be seen as a regular program of life if is examined based on Bridge's concept where he explains that individuals undergo 3 phases of transition when they experience change. 'Closing, losing and also Letting go', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When people are presented with change, they go into phase one and so there may be feelings like unhappiness, unpredictability, frustration, temper, anxiety, denial and also disorientation.The circumstance at the marketing department of Bank Of Taiwan is comparable so Lewis can get comfortable with the suggestion that it is not remarkable behavior. In the second stage, there might be a demand to link the void between the new and old culture so Lewis might have to face this challenge as soon as Krasnow leaves. There may be low morale and also low efficiency at this stage which should not be taken as an obstacle. It is during this stage that Lewis will need to offer support to the division to ensure that they can find a sense of direction. It can be seen exactly how Krasnow has already made this transition less complicated by making Lewis get involved in the department a year prior to his real departure. According to Bridges' Version, phase 3 will certainly bring about visibility to understanding, High power and dedication as individuals will certainly accept the modification (Bridges, 2004).
Vrio Analysis
Maslow's Requirement power structure: The OB problem related to instability at the workplace has actually been triggered firstly by the modification in monitoring and second of all by the truth that the merging will no more be initiated. Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has reviews the value of 'security requires as being a lower level need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel secure and also unharmed' is at the 2nd degree of requirements. Prior to a worker can be made to develop emotionally, he requires to have his 'Physical 'and 'Safety and security' needs met. This shows that unless the workers are made to feel safe and secure concerning their existing work status in Bank Of Taiwan they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Bank Of Taiwan Case Study

Implication of Analysis.

The OB analysis has actually taken a look at numerous concepts to understand exactly how to deal with the existing circumstance available. The complying with 3 options have actually been recommended to help Lewis deal with the business difficulties in the advertising and marketing department. Each of these choices has actually been suggested for reducing the shift needed to bring the marketing division according to the demands of the marketplace and also for making the social change that would adhere to when the current leader leaves.

Combination of marketing and advertising features. Separating Adverting as well as Production functions. Combination of Advertising And Marketing with Workflow.

Examination of Alternatives.

Assimilation of Advertising And Marketing & Advertising And Marketing Functions: The internal advertising company of Bank Of Taiwan is already stamina for the organization in regards to conserving up on overheads related to advertising and marketing and promotion. Considering that no new recruitment has actually been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the marketing function, this is a favorable opportunity for incorporating the advertising and marketing features. Judith Shapiro that has earlier been interviewed by Lewis during the earlier merger days has experience in business-to-business marketing in addition to agency and also retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both advertising and marketing features.

The benefit of this approach is that it will incorporate the two functions while decreasing the demand for working with an extra resource for advertising. Lewis would be heading the advertising department and in any type of case her substitute would be needed for the current function that she is performing. The negative aspect of this choice is that exterior hiring might produce resentment from internal personnel that may be considering the placement of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and Production: Offered the affordable stress and premium quality work called for from the ad agency, it is recommended that Lewis should permit the production device to be a separate function from the advertising and marketing system. Since a lot of advertising agencies had these 2 functions as different devices, it makes even more sense to comply with the norm. In addition to this, both functions might have the ability to concentrate on their core turns on much more successfully. Nevertheless, the drawback of this method would certainly be that extra expenses would have to be borne for setting up separate production features. Along with this, a production head might need to be worked with which could boost expenses for the organization.

Combination of Marketing with Workflows: Given that Lewis is currently taking care of the advertising as well as operations departments concurrently; it makes good sense to integrate the two functions given that she has actually been effectively dealing with both ends. The truth that both divisions already have significant differences over allowance of sources suggests that this combination may have the ability to produce consistency specifically as Lewis would certainly be heading both ends.However there are numerous negative aspects of this relocation particularly as it would certainly place excessive worry over Lewis's shoulders. The reality that Lewis has to adapt her administration style for the marketing division recommends that these 2 departments would certainly be culturally diverse. In addition to this, Lewis may not be able to use one type of management style to both divisions which might lead to inefficiency in either one of both functions.


An assessment of the three choices suggests that combination of advertising as well as procedures would not be a possible move due to the substantial differences between the two divisions despite the fact that presently Lewis is managing both. While separation of the production function may have been a positive action for the advertising and marketing department, the truth that it would suggest placing a 3rd feature under Lewis's wing suggests this should be stayed clear of. The combination of the marketing division is the most effective alternative in regards to obtaining the optimal results from the division. An action plan for this option is gone over listed below.

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

Marketing and advertising functions would be combined.

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

Manufacturing feature will continue to be part of marketing under advertising and marketing function.

Lewis will certainly separate herself from operations.

A democratic leadership style with worker empowerment will certainly be used in advertising department.

Open up door policy and also emphasis on cross department interaction will certainly be aimed at eliminating disharmony.

Contingency plan.

If the assimilation does not work out as planned, a backup strategy would certainly follow which would separate the manufacturing feature from the marketing function to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the marketing department without an SVP. Because case the production feature will absolutely be separated by putting it under an SVP production.