Calpine Corp The Evolution From Project To Corporate Finance Chinese Version Case Study Solution


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Calpine Corp The Evolution From Project To Corporate Finance Chinese Version Case Study Help

Background and Facts

Calpine Corp The Evolution From Project To Corporate Finance Chinese Version an office materials retailer for little as well as moderate sized organisations has lately been involved in preparing for a merger with its competitor Home Deport, which has affected effectiveness levels in departmentswith the senior manager involved in lawful difficulties presented by the government Trade Commission. With the Advertising and marketing Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the duty in the near future. With obstacles in the kind of a potential cultural modification as well as low staff member spirits, the company requires a full reengineering effort at the advertising and marketing department.

Trouble Statement

The possible cultural modification at the advertising division of Calpine Corp The Evolution From Project To Corporate Finance Chinese Version is boosting uncertainty in the workplace resulting in numerous obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting strategic decisions considering that Stapes Inc. had to abandon its strategies of combining with Workplace Deport after the Federal Trade Compensation's intervention at the same time. Provided the fact that the shop has a global existence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries may be able to influence efficiency or strategic goals. Federal Profession Commission's antitrust suit versus the merger occupied useful time of the organization's senior monitoring recommending that 'political' factors can have major effects for a worldwide business.

Economic Factors: Financial factors such as the emergence of small companies in the international situation recommend that Calpine Corp The Evolution From Project To Corporate Finance Chinese Version is prospering in an atmosphere where there is possible development of businesses. Truth that shop customers are primarily looking for office products for house workplaces recommends that the market has a rising fad of business owners and residence based companies.

Social factors: Social fads in the economic situation show that consumers are seeking comfort in addition to attractive prices. Marketing research demonstrates how the client for Calpine Corp The Evolution From Project To Corporate Finance Chinese Version does not have recognition regarding discovering remedies which can provide a combination of ease as well as low costs.

Technical factors: Innovation plays a vital duty in Calpine Corp The Evolution From Project To Corporate Finance Chinese Version's organisation approach specifically as the organization is piloting Technology facilities which would certainly use innovation sales and also support in the type of memory upgrades, peripheral installations. (Recap of PARASITE in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Organizational Behavior concerns can be seen in Calpine Corp The Evolution From Project To Corporate Finance Chinese Version's case as highlighted in this section.

Uneasiness about social modification: There is uneasiness regarding a social change that would certainly take place when Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Marketing with the majority of the employee already showing unhappiness over this possible action. This expected adjustment has developed stress and anxiety in the workplace which has been coupled with the previous tension of preparing the firm for a prospective merging with Home Deport.

Demanding Task Atmosphere for Newcomers: There is shortage of employees that can match the stressful setting of a fast-paced company. Not only does this lead to problem in finding the ideal people, it places stress and anxiety on brand-new hires as can not hold up against the rate and stress that the organization anticipates them to birth.

Twin Reporting Lines: Novices locate this business culture difficult and also difficult to deal with specifically as populated line connections are suggested to be weak as a whole and unbiased setup and efficiency analysis is still done by the strong line manager. This indicates that beginners might lose clearness regarding their particular duties as well as goals specifically as populated line coverage does not maintain them in direct interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had been speculated that the last would take Krasnow's placement came as an impact to her spirits. Lewis may have been qualified and ideal for the task but the truth that Kransnow's separation would make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Concern & Job Insecurity: Fear as well as instability can be identified as 2 significant worries that Lewis would be managing specifically as the merging has now be terminated and also two senior execs of the marketing division would be leaving. The entire responsibility of the division would be dropping on Lewis's shoulders that would not just be in charge of brining regarding a cultural change yet would additionally need to show herself in her new role.

Inappropriate Management Design of Leader: Lewis's management style as well as its conflict with the advertising department's duty can also be seen as an OB difficulty especially as she has been utilized to handling problems in the procedures division where personnel are educated to concentrate on procedures and also get them. The marketing division on the other hand can be seen as a group of individuals that are used to being nurtured by Krasnow that concentrated extra on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental differences in between three departments, advertising, merchandizing as well as operations specifically over the allocation of the advertising and marketing mix can be recognized as another OB worry. Although the advertising and marketing department does not share the same vision as the various other 2 divisions relating to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and procedures departments do not agree over the advertising mix allowance among one another either.

Fragmentation in Marketing Department: Fragmentation between the marketing and advertising departments can be identified as an additional OB problem which might require more interest. The truth that the advertising and marketing sections in the advertising and marketing division are detached is preventing both departments from acquiring from each other's experience and also experience. Assimilation of marketing with retailing and operations would certainly end up being more difficult if the advertising department itself is broken down which can be one more possible OB worry.

Calpine Corp The Evolution From Project To Corporate Finance Chinese Version Analysis

Numerous theories have actually been made use of to clarify the circumstances to obtain further clearness regarding the situation at hand.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers believe that staffs are easy as well as careless, have little aspiration and stand up to adjustment. The scenario at Calpine Corp The Evolution From Project To Corporate Finance Chinese Version is not entirely following Concept X, it can be seen that brand-new hires are finding this atmosphere rather stressful which might at some point lead to a greater inclination of the administration towards Theory X. Even while analyzing Lewis's monitoring design, theory X might have been appropriate in the operations division to some level but the Marketing department would call for dependence on Concept Y in order to get the creative thinking as well as creativity from the groups.

Tuckman's Team effort Theory: As for Lewis's problem about bringing consistency in between the marketing and advertising division is concerned, this would initially result in conflict as reviewed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). According to Tuckman's theory displayed in appendix 3, during the preliminary phase of team growth, people may not bond, as they are hectic finding their area in the group. By combining the marketing and advertising department's job, there might be the same initial detach which might bring about the second phase of 'storming' where the teams test one another. It is only throughout the 3rd stage or 'norming' when they would certainly come with each other to share concepts before the group can bring around synergy in the 4th phase 'executing'.

When individuals are offered with modification, they enter phase one as well as so there might be feelings like sadness, unpredictability, irritation, rage, anxiety, denial and also disorientation.The scenario at the advertising and marketing division of Calpine Corp The Evolution From Project To Corporate Finance Chinese Version is comparable so Lewis can get comfortable with the idea that it is not remarkable actions. It is during this phase that Lewis will have to offer support to the department so that they can discover a feeling of instructions. It can be seen exactly how Krasnow has actually already made this transition simpler by making Lewis obtain involved in the department a year prior to his actual separation.

Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has goes over the value of 'protection needs as being a lower degree requirement of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel protected as well as out of risk' is at the second level of needs. Prior to a worker can be made to establish mentally, he requires to have his 'Physiological 'and also 'Security' needs fulfilled.

SWOT Analysis for Calpine Corp The Evolution From Project To Corporate Finance Chinese Version Case Study

Effects of Analysis.

The OB analysis has actually considered different concepts to comprehend just how to handle the existing situation handy. The complying with 3 alternatives have been recommended to aid Lewis handle the organizational obstacles in the advertising and marketing department. Each of these alternatives has actually been recommended for reducing the transition needed to bring the advertising and marketing division in line with the needs of the marketplace and also for making the social adjustment that would certainly comply with as soon as the existing leader leaves.

Combination of marketing and advertising functions. Separating Adverting and also Production features. Assimilation of Advertising with Operations.

Analysis of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The in-house marketing company of Calpine Corp The Evolution From Project To Corporate Finance Chinese Version is currently toughness for the organization in regards to conserving up on expenses connected to marketing and also promotion. Considering that no brand-new recruitment has actually been done after Bridget Cole's departure with the coverage line being directly assigned to Krasnow for the advertising function, this is a desirable opportunity for incorporating the marketing and advertising functions. Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merger days has experience in business-to-business advertising and marketing together with firm and retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to take care of both marketing and advertising functions.

The advantage of this technique is that it will incorporate the two features while lowering the need for working with an extra resource for marketing. Lewis would certainly be heading the marketing department and also in any case her substitute would be needed for the existing role that she is performing. The negative aspect of this choice is that external hiring might cause resentment from internal personnel who might be looking at the position of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Manufacturing: Given the competitive pressures as well as premium quality work needed from the advertising agency, it is suggested that Lewis needs to enable the manufacturing unit to be a different function from the marketing unit. Since a lot of ad agency had these two functions as separate systems, it makes more feeling to adhere to the norm. In addition to this, both features may have the ability to focus on their core turns on a lot more successfully. Nonetheless, the downside of this technique would be that additional costs would certainly have to be borne for setting up separate manufacturing functions. A manufacturing head might have to be hired which could boost overheads for the company.

Integration of Advertising with Operations: Since Lewis is already taking care of the advertising and marketing and also procedures departments concurrently; it makes good sense to incorporate both functions given that she has actually been effectively dealing with both ends. The fact that both divisions currently have significant differences over allowance of sources suggests that this assimilation might be able to produce harmony especially as Lewis would certainly be heading both ends.However there are various downsides of this relocation especially as it would certainly place too much worry over Lewis's shoulders. The fact that Lewis needs to adjust her monitoring design for the marketing department recommends that these 2 divisions would be culturally diverse. Along with this, Lewis may not be able to use one kind of leadership style to both divisions which can cause inefficiency in either one of both functions.


An examination of the 3 alternatives suggests that assimilation of advertising as well as operations would not be a viable relocation because of the vast distinctions in between the two departments despite the fact that presently Lewis is managing both. While separation of the production feature may have been a beneficial move for the marketing division, the truth that it would certainly imply putting a third feature under Lewis's wing suggests this ought to be prevented. The assimilation of the advertising division is the very best alternative in regards to obtaining the optimum results from the department. An activity plan for this alternative is discussed listed below.

Action Plan.

Lewis will take over the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be combined.

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

Manufacturing feature will stay component of advertising under marketing feature.

Lewis will certainly separate herself from procedures.

An autonomous leadership design with employee empowerment will be made use of in marketing division.

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

Contingency plan.

If the assimilation does not work out as planned, a contingency strategy would comply with which would separate the manufacturing function from the advertising feature to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising division without an SVP. In that case the production feature will definitely be separated by putting it under an SVP manufacturing.