Bankruptcy And Restructuring At Marvel Entertainment Group Case Study Solution


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Bankruptcy And Restructuring At Marvel Entertainment Group Case Study Analysis

Background and Facts

Bankruptcy And Restructuring At Marvel Entertainment Group an office supplies retailer for little as well as moderate sized companies has actually recently been associated with preparing for a merging with its rival Home Deport, which has actually influenced effectiveness degrees in departmentswith the senior supervisor involved in legal issues put forth by the government Profession Compensation. With the Marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the function in the near future. With difficulties in the type of a prospective cultural modification and low staff member morale, the organization needs a complete reengineering initiative at the advertising division.

Issue Statement
Porter's 5 Forces Analysis
The potential social adjustment at the marketing division of Bankruptcy And Restructuring At Marvel Entertainment Group is boosting uncertainty in the workplace causing numerous difficulties for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting calculated decisions because Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Profession Commission's intervention in the process. Provided the truth that the shop has a global visibility with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries might be able to influence performance or strategic objectives. Federal Profession Compensation's antitrust fit versus the merging took up important time of the organization's elderly monitoring suggesting that 'political' factors can have major ramifications for a global organisation.

Economic Factors: Economic factors such as the emergence of small businesses in the worldwide circumstance recommend that Bankruptcy And Restructuring At Marvel Entertainment Group is growing in an atmosphere where there is prospective growth of organisations. Reality that shop customers are primarily looking for office supplies for house workplaces suggests that the market has a rising trend of business owners and home based organisations.

Social factors: Social trends in the economy reveal that clients are searching for convenience as well as appealing prices. Marketing research shows how the customer for Bankruptcy And Restructuring At Marvel Entertainment Group lacks recognition concerning locating remedies which can provide a mix of ease and inexpensive.

Technical factors: Modern technology plays an essential function in Bankruptcy And Restructuring At Marvel Entertainment Group's organisation method specifically as the company is piloting Innovation facilities which would certainly offer innovation sales and assistance in the type of memory upgrades, peripheral installments. (Summary of BUG in appendix 2).

OB Issues as well as Symptoms.

Numerous underlying Organizational Habits issues can be seen in Bankruptcy And Restructuring At Marvel Entertainment Group's case as highlighted in this section.

Uneasiness regarding social modification: There is concern regarding a cultural modification that would certainly take place when Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with most of the staff members already revealing discontent over this potential relocation. This anticipated modification has developed stress in the work environment which has actually been coupled with the previous stress and anxiety of preparing the firm for a prospective merger with House Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is scarcity of employees that can match the difficult environment of a hectic company. Not only does this bring about difficulty in locating the right individuals, it places stress and anxiety on brand-new hires as can not withstand the rate as well as stress that the organization expects them to birth.

Double Reporting Lines: Novices locate this business society cumbersome as well as challenging to deal with specifically as dotted line connections are indicated to be weaker in general and also objective setup and also performance assessment is still done by the solid line supervisor. This suggests that novices might lose clarity regarding their corresponding duties as well as purposes particularly as dotted line coverage does not keep them in straight interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been hypothesized that the latter would certainly take Krasnow's position came as a strike to her morale. Lewis may have been capable and also appropriate for the task but the truth that Kransnow's separation would make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Concern & Job Instability: Anxiety and also insecurity can be recognized as two significant concerns that Lewis would certainly be handling especially as the merging has actually currently be cancelled and also two senior execs of the advertising division would be leaving. The entire obligation of the division would certainly be falling on Lewis's shoulders that would not simply be in charge of brining about a cultural change however would certainly additionally have to show herself in her brand-new duty.

Inappropriate Management Style of Leader: Lewis's management design as well as its incompatibility with the marketing division's role can additionally be seen as an OB challenge specifically as she has actually been used to handling problems in the operations department where workers are shown to concentrate on procedures and get them. The advertising division on the various other hand can be seen as a group of individuals who are used to being nurtured by Krasnow who focused more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental disputes in between three divisions, advertising and marketing, merchandizing as well as procedures respectively over the appropriation of the advertising mix can be determined as another OB issue. Although the marketing department does not share the same vision as the various other 2 divisions concerning the aloocation of the marketing mix twoards promos and advertsing, the merchandizing as well as procedures departments do not agree over the advertising mix allowance amongst one another either.

Disintegration in Marketing Division: Fragmentation between the marketing and advertising divisions can be determined as one more OB issue which might need more focus. The reality that the advertising and marketing areas in the advertising and marketing department are detached is avoiding both divisions from gaining from each various other's experience and also know-how. Assimilation of advertising with merchandising as well as operations would certainly become harder if the advertising division itself is broken down which can be an additional prospective OB concern.

Bankruptcy And Restructuring At Marvel Entertainment Group Analysis

Different concepts have actually been utilized to describe the scenarios to get further clearness regarding the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most managers believe that subordinates are passive and careless, have little aspiration and also resist adjustment. The situation at Bankruptcy And Restructuring At Marvel Entertainment Group is not completely adhering to Theory X, it can be seen that brand-new hires are finding this setting rather stressful which might at some point lead to a better disposition of the administration towards Theory X. Also while assessing Lewis's administration design, concept X may have been suitable in the procedures department to some level however the Advertising and marketing department would require dependence on Concept Y in order to obtain the imagination and also creativity from the groups.

Tuckman's Synergy Concept: As far as Lewis's worry about bringing harmony in between the advertising and marketing department is worried, this would originally lead to contrast as gone over by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, during the initial phase of team advancement, people may not bond, as they are busy locating their area in the group. By integrating the marketing and advertising division's work, there may coincide preliminary separate which can result in the second phase of 'storming' where the teams challenge each other. It is only during the 3rd stage or 'norming' when they would come together to share concepts prior to the group can bring about harmony in the 4th phase 'executing'.

When people are presented with modification, they enter phase one and so there might be feelings like despair, unpredictability, disappointment, anger, fear, denial and also disorientation.The situation at the advertising and marketing division of Bankruptcy And Restructuring At Marvel Entertainment Group is similar so Lewis can obtain comfy with the idea that it is not amazing actions. It is during this phase that Lewis will have to provide support to the division so that they can discover a sense of instructions. It can be seen how Krasnow has actually currently made this transition simpler by making Lewis obtain entailed in the department a year before his actual separation.
Vrio Analysis
Maslow's Demand pecking order: The OB issue related to insecurity at the workplace has been set off first of all by the change in monitoring as well as secondly by the fact that the merger will no more be launched. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has talks about the significance of 'safety requires as being a reduced level need of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to feel secure as well as out of danger' goes to the 2nd degree of requirements. Prior to a worker can be made to develop emotionally, he requires to have his 'Physical 'and also 'Safety and security' requires met. This indicates that unless the personnel are made to feel safe and secure concerning their current work standing in Bankruptcy And Restructuring At Marvel Entertainment Group they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Bankruptcy And Restructuring At Marvel Entertainment Group Case Study

Ramification of Analysis.

The OB analysis has considered numerous theories to understand how to cope with the existing circumstance available. The following three alternatives have actually been suggested to help Lewis manage the business obstacles in the marketing division. Each of these options has actually been recommended for alleviating the change required to bring the advertising division according to the needs of the market and also for making the cultural change that would certainly adhere to once the current leader leaves.

Assimilation of marketing and advertising features. Separating Adverting and also Manufacturing features. Integration of Advertising And Marketing with Operations.

Evaluation of Alternatives.

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

The advantage of this technique is that it will integrate both features while lowering the requirement for hiring an added resource for advertising and marketing. In addition to this, Lewis would be heading the advertising and marketing division as well as in any case her replacement would certainly be needed for the current role that she is doing. The drawback of this choice is that outside hiring may produce resentment from inner personnel who may be looking at the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Production: Given the affordable pressures as well as excellent quality work called for from the ad agency, it is suggested that Lewis ought to allow the manufacturing device to be a different function from the advertising unit. Since a lot of ad agency had these two features as different devices, it makes more sense to comply with the norm. Both features may be able to concentrate on their core turns on much more successfully. Nevertheless, the drawback of this method would certainly be that added expenses would certainly have to be borne for establishing different production features. Along with this, a manufacturing head may have to be employed which could boost expenses for the organization.

Assimilation of Marketing with Operations: Considering that Lewis is already dealing with the advertising as well as procedures departments concurrently; it makes good sense to incorporate the two functions considering that she has actually been efficiently taking care of both ends. The fact that both departments currently have significant differences over allocation of sources recommends that this assimilation may be able to bring about consistency especially as Lewis would be heading both ends.However there are numerous drawbacks of this step specifically as it would certainly place excessive problem over Lewis's shoulders. The reality that Lewis has to adapt her administration style for the advertising department recommends that these two departments would certainly be culturally diverse. Along with this, Lewis may not be able to apply one kind of leadership design to both departments which can result in inefficiency in either one of the two functions.


An evaluation of the three choices shows that combination of advertising and operations would certainly not be a practical relocation due to the substantial distinctions between the 2 divisions in spite of the fact that presently Lewis is handling both. While splitting up of the production feature may have been a desirable relocation for the advertising division, the truth that it would mean placing a third feature under Lewis's wing indicates this need to be stayed clear of.

Action Plan.
Lewis will certainly take over the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

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

Lewis will certainly divide herself from operations.

An autonomous leadership style with employee empowerment will certainly be utilized in advertising department.

Open up door plan and focus on cross departmental communication will be focused on removing disharmony.

Contingency strategy.

If the integration does not work out as intended, a contingency plan would certainly follow which would divide the manufacturing feature from the advertising and marketing feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising and marketing division without an SVP. Because case the production function will most definitely be divided by placing it under an SVP manufacturing.