Barclays Capital And The Sale Of Del Monte Foods Case Study Solution


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Barclays Capital And The Sale Of Del Monte Foods Case Study Analysis

Background and Facts

Barclays Capital And The Sale Of Del Monte Foods an office materials store for little and also moderate sized businesses has just recently been associated with planning for a merger with its rival House Deport, which has actually affected effectiveness degrees in departmentswith the senior supervisor associated with lawful complications put forth by the government Trade Commission. With the Marketing Head advancing the information of his departure from the business in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the duty in the future. With difficulties in the type of a potential social adjustment and also low staff member spirits, the organization wants a complete reengineering effort at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective social adjustment at the advertising and marketing department of Barclays Capital And The Sale Of Del Monte Foods is enhancing unpredictability in the workplace resulting in different difficulties 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 function in influencing critical decisions because Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Trade Compensation's treatment in the process. Provided the reality that the store has an international presence with branches in UK, U.S.A., Canada and Germany, political consider each of these countries might have the ability to affect performance or tactical goals. Federal Trade Commission's antitrust fit against the merging took up important time of the organization's elderly monitoring suggesting that 'political' factors can have significant effects for a worldwide organisation.

Economic Factors: Financial factors such as the introduction of small companies in the worldwide situation suggest that Barclays Capital And The Sale Of Del Monte Foods is growing in an atmosphere where there is prospective development of services. Reality that store customers are mainly looking for office products for residence offices suggests that the market has an increasing trend of business owners and house based services.

Social factors: Social trends in the economic situation reveal that consumers are seeking benefit along with appealing rates. Market research demonstrates how the client for Barclays Capital And The Sale Of Del Monte Foods lacks understanding regarding discovering solutions which can supply a combination of comfort and inexpensive.

Technical factors: Modern technology plays a crucial duty in Barclays Capital And The Sale Of Del Monte Foods's company strategy specifically as the organization is piloting Innovation facilities which would supply innovation sales and also support in the type of memory upgrades, peripheral installations. (Recap of INSECT in appendix 2).

OB Issues and Effects.

A number of underlying Business Habits problems can be seen in Barclays Capital And The Sale Of Del Monte Foods's case as highlighted in this area.

Apprehensions concerning social modification: There is uneasiness about a social change that would happen as soon as Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with a lot of the personnel currently showing unhappiness over this possible action. This anticipated modification has developed stress and anxiety in the work environment which has actually been combined with the previous tension of preparing the company for a potential merger with Residence Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is lack of employees that can match the demanding atmosphere of a fast-paced company. Not only does this result in trouble in locating the best people, it places stress on brand-new hires as can not hold up against the rate as well as stress that the company anticipates them to bear.

Dual Coverage Lines: Newbies find this organizational society cumbersome as well as difficult to deal with particularly as populated line connections are meant to be weak generally and also objective setup and also performance analysis is still done by the solid line manager. This means that beginners can lose clearness concerning their corresponding functions and also goals specifically as populated line coverage does not keep them in direct interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had actually been guessed that the last would take Krasnow's placement came as an impact to her morale. Lewis may have been capable as well as appropriate for the job yet the fact that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Worry & Work Insecurity: Worry and also insecurity can be identified as two significant problems that Lewis would certainly be taking care of especially as the merger has actually now be terminated and also two senior executives of the advertising department would certainly be leaving. The entire duty of the division would be dropping on Lewis's shoulders who would not simply be in charge of brining regarding a cultural modification but would also need to prove herself in her new function.

Incompatible Administration Style of Leader: Lewis's administration design as well as its conflict with the advertising department's function can also be seen as an OB challenge particularly as she has actually been utilized to dealing with concerns in the procedures division where workers are educated to focus on procedures as well as get them. The marketing department on the other hand can be seen as a team of individuals who are utilized to being nurtured by Krasnow that concentrated more on result than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements in between 3 divisions, marketing, merchandizing as well as procedures specifically over the allowance of the marketing mix can be determined as another OB problem. The advertising and marketing division does not share the exact same vision as the various other 2 divisions concerning the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and operations departments do not agree over the marketing mix allocation among one an additional either.

Disintegration in Marketing Division: Fragmentation between the marketing and advertising departments can be recognized as one more OB issue which could require more attention. The truth that the marketing and advertising sections in the advertising division are detached is protecting against both departments from getting from each various other's experience as well as competence. Assimilation of advertising and marketing with retailing and also operations would become harder if the advertising department itself is degenerated which can be an additional possible OB issue.

Barclays Capital And The Sale Of Del Monte Foods Analysis

Various concepts have actually been used to discuss the situations to get more quality concerning the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that juniors are passive and also lazy, have little aspiration and stand up to change. The difficult variation of this concept emphasized threat, tight controls, hazards and also punishments. Gradually it generates reduced efficiency, subtle sabotage and competition (Deal, 2003). Although the scenario at Barclays Capital And The Sale Of Del Monte Foods is not totally complying with Theory X, it can be seen that new hires are discovering this environment instead demanding which might at some point lead to a higher inclination of the monitoring in the direction of Concept X. According to McGregor's promoted view, which he called Theory Y, the necessary job of the management is to prepare organizational conditions to make sure that people can achieve their very own goals best by guiding their initiatives in the direction of business benefits. If people locate no satisfaction in their job, the management would have little selection but to depend on theory X and also external control (Offer, 2003). Even while evaluating Lewis's administration style, concept X might have been suitable in the operations department to some extent however the Advertising division would call for dependence on Concept Y to get the imagination and originality from the teams.

Tuckman's Team effort Theory: As far as Lewis's worry regarding bringing consistency in between the marketing and also advertising and marketing department is worried, this would initially lead to contrast as discussed by Bruce Tuckman in his 'Team effort Concept'. By incorporating the advertising and marketing as well as advertising and marketing department's job, there may be the same preliminary detach which might lead to the 2nd stage of 'storming' where the groups challenge one another.

Bridges' Change Model: Based On William Bridge's concept (appendix 4), people are rather awkward with change, which is evident by the situation at Barclays Capital And The Sale Of Del Monte Foods The situation can be seen as a typical course of life if is examined according to Bridge's concept where he explains that individuals go through three phases of change when they experience modification. 'End, losing and also Letting go', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When people are presented with modification, they get in stage one and so there may be emotions like despair, uncertainty, aggravation, anger, anxiety, denial and also disorientation.The scenario at the advertising and marketing department of Barclays Capital And The Sale Of Del Monte Foods is comparable so Lewis can obtain comfy with the concept that it is not extraordinary actions. In the second stage, there might be a requirement to link the void in between the new and also old culture so Lewis might have to encounter this ordeal once Krasnow leaves. There might be low morale and low productivity at this stage which need to not be taken as an obstacle. It is throughout this stage that Lewis will need to give guidance to the department to ensure that they can locate a sense of direction. It can be seen exactly how Krasnow has currently made this change less complicated by making Lewis obtain involved in the division a year prior to his actual departure. Based on Bridges' Version, phase 3 will bring about visibility to understanding, High energy and also commitment as people will certainly embrace the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB problem related to instability at the workplace has actually been caused firstly by the change in administration as well as secondly by the truth that the merging will certainly no more be initiated. Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has reviews the importance of 'security requires as being a lower degree demand of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to feel secure and also safe' goes to the 2nd degree of demands. Before an employee can be made to create emotionally, he requires to have his 'Physiological 'and 'Safety and security' requires met. This indicates that unless the workers are made to feel safe and secure concerning their current employment status in Barclays Capital And The Sale Of Del Monte Foods they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Barclays Capital And The Sale Of Del Monte Foods Case Study

Ramification of Analysis.

The OB analysis has considered numerous concepts to comprehend exactly how to cope with the current circumstance at hand. The following 3 options have actually been proposed to aid Lewis manage the organizational obstacles in the marketing division. Each of these alternatives has actually been suggested for relieving the change needed to bring the marketing department in accordance with the requirements of the marketplace and also for making the cultural change that would certainly follow as soon as the existing leader leaves.

Integration of marketing and advertising features. Dividing Adverting and Production features. Assimilation of Marketing with Workflow.

Analysis of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merger days has knowledge in business-to-business marketing along with company and also retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to handle both marketing as well as advertising functions.

The benefit of this technique is that it will certainly integrate both features while minimizing the demand for hiring an extra source for advertising and marketing. Along with this, Lewis would certainly be heading the marketing department and all the same her substitute would certainly be needed for the present duty that she is carrying out. The drawback of this choice is that outside hiring might cause animosity from inner workers that might be eying the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting as well as Production: Given the affordable stress and also premium quality job called for from the advertising agency, it is suggested that Lewis must allow the production device to be a different function from the advertising device. Considering that the majority of advertising agencies had these two features as different units, it makes even more sense to adhere to the norm. Both features might be able to focus on their core activates much more successfully. The disadvantage of this approach would be that extra costs would certainly have to be birthed for setting up different manufacturing features. A manufacturing head may have to be hired which might enhance overheads for the organization.

Integration of Advertising with Procedures: Given that Lewis is currently caring for the advertising and also operations departments concurrently; it makes good sense to incorporate both functions since she has actually been effectively looking after both ends. The truth that the two departments currently have significant distinctions over allocation of sources recommends that this assimilation may have the ability to cause consistency especially as Lewis would be heading both ends.However there are various downsides of this step particularly as it would certainly put excessive burden over Lewis's shoulders. The reality that Lewis needs to adapt her management design for the marketing department recommends that these 2 divisions would be culturally diverse. Lewis might not be able to apply one kind of management style to both departments which could result in ineffectiveness in either one of the two features.


An examination of the three options shows that combination of advertising and marketing and also procedures would not be a practical relocation as a result of the huge distinctions between both departments despite the fact that presently Lewis is handling both. While separation of the production feature might have been a beneficial move for the advertising division, the truth that it would certainly mean putting a 3rd function under Lewis's wing implies this ought to be avoided. The integration of the advertising department is the most effective alternative in terms of obtaining the optimal arise from the department. An activity prepare for this option is reviewed below.

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

Marketing and advertising features would be merged.

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

Production function will continue to be component of marketing under advertising feature.

Lewis will separate herself from procedures.

A democratic leadership style with employee empowerment will be used in advertising division.

Open up door policy and also focus on cross departmental communication will be aimed at removing dissonance.

Contingency strategy.

If the integration does not exercise as planned, a backup strategy would follow which would separate the production function from the advertising and marketing function to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising division without an SVP. In that case the production feature will absolutely be divided by placing it under an SVP production.