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Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate Case Study Solution

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Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate Case Study Help

Background and Facts

Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate an office materials retailer for little as well as medium sized services has lately been involved in planning for a merger with its rival House Deport, which has actually influenced performance degrees in departmentswith the elderly manager involved in legal issues put forth by the government Trade Payment. With the Advertising Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the existing head of procedures has been asked to take the duty in the future. With obstacles in the form of a possible cultural modification and also reduced employee morale, the organization wants a total reengineering initiative at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The possible social modification at the advertising and marketing division of Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate is enhancing uncertainty in the workplace causing various difficulties 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 affecting tactical choices considering that Stapes Inc. had to abandon its strategies of combining with Office Deport after the Federal Profession Compensation's intervention while doing so. Given the fact that the store has an international existence with branches in UK, U.S.A., Canada and Germany, political factors in each of these nations might be able to influence efficiency or tactical objectives. Federal Profession Payment's antitrust match versus the merging used up beneficial time of the organization's elderly management recommending that 'political' factors can have major implications for an international organisation.

Economic Factors: Financial factors such as the development of small businesses in the worldwide situation recommend that Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate is flourishing in a setting where there is possible development of services. Along with this, truth that store customers are mostly trying to find office supplies for home offices recommends that the marketplace has a climbing trend of business owners and also home based organisations.

Social factors: Social trends in the economy show that customers are seeking ease along with eye-catching rates. Marketing research demonstrates how the client for Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate lacks awareness about locating remedies which can provide a combination of comfort as well as inexpensive.

Technological factors: Modern technology plays a vital role in Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate's service approach specifically as the organization is piloting Modern technology facilities which would use technology sales as well as support in the kind of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues and also Manifestations.

Several underlying Business Behavior concerns can be seen in Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate's case as highlighted in this area.

Concerns concerning social modification: There is uneasiness regarding a cultural change that would certainly happen when Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with a lot of the employee already revealing discontent over this prospective move. This anticipated modification has produced anxiety in the work environment which has actually been coupled with the previous tension of preparing the company for a potential merging with Residence Deport.
Pest Analysis
Demanding Job Atmosphere for Newcomers: There is lack of employees that can match the demanding atmosphere of a busy company. Not only does this bring about problem in finding the best individuals, it places stress on brand-new hires as can not hold up against the speed as well as stress that the organization anticipates them to birth.

Double Reporting Lines: Novices discover this organizational society difficult as well as difficult to cope with especially as populated line connections are suggested to be weak generally and also objective setting and also efficiency assessment is still done by the strong line supervisor. This means that beginners could shed clarity regarding their particular roles and also goals especially as dotted line reporting does not maintain them in direct communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had actually been guessed that the last would certainly take Krasnow's position came as a blow to her spirits. Lewis may have been capable as well as proper for the job yet the reality that Kransnow's departure would make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Job Instability: Anxiety and instability can be identified as two major concerns that Lewis would certainly be taking care of particularly as the merger has now be cancelled and also 2 elderly executives of the advertising and marketing division would certainly be leaving. The whole responsibility of the division would certainly be dropping on Lewis's shoulders who would certainly not simply supervise of brining regarding a social modification but would certainly likewise have to verify herself in her brand-new role.

Incompatible Administration Style of Leader: Lewis's monitoring design and also its conflict with the advertising and marketing department's function can also be viewed as an OB difficulty especially as she has been utilized to handling concerns in the procedures division where personnel are educated to concentrate on processes and also get them right. The advertising division on the various other hand can be seen as a team of people that are utilized to being nurtured by Krasnow that focused much more on output than procedures.

Interdepartmental Differences: Interdepartmental disagreements in between three departments, marketing, merchandizing and also procedures respectively over the allocation of the advertising and marketing mix can be determined as one more OB problem. The advertising and marketing department does not share the exact same vision as the various other two divisions concerning the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing as well as procedures departments do not agree over the advertising mix allotment amongst one an additional either.

Fragmentation in Advertising Department: Fragmentation between the advertising and marketing divisions can be identified as another OB concern which can need more focus. The reality that the marketing and advertising sections in the marketing division are separated is protecting against both divisions from obtaining from each other's experience and experience. Assimilation of advertising with retailing and also operations would become harder if the marketing division itself is disintegrated which can be another possible OB worry.

Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate Analysis

Different concepts have been utilized to describe the conditions to get further clearness about the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that juniors are passive and also lazy, have little passion and resist adjustment. The situation at Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate is not entirely adhering to Concept X, it can be seen that new hires are locating this atmosphere rather stressful which might eventually lead to a greater inclination of the administration towards Concept X. Even while assessing Lewis's monitoring design, theory X may have been appropriate in the procedures department to some degree yet the Marketing division would call for dependence on Concept Y in order to get the creativity and creativity from the groups.

Tuckman's Synergy Concept: As much as Lewis's issue concerning bringing consistency between the marketing as well as marketing division is worried, this would originally lead to contrast as gone over by Bruce Tuckman in his 'Teamwork Theory'. By combining the marketing as well as advertising division's job, there may be the very same first detach which can lead to the second stage of 'storming' where the groups test one an additional.

Bridges' Shift Version: As per William Bridge's concept (appendix 4), people are fairly uncomfortable with adjustment, which is noticeable by the circumstance at Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate The circumstance can be seen as a regular course of life if is researched according to Bridge's theory where he discusses that people undergo 3 stages of transition when they experience modification. 'End, losing as well as Letting go', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When individuals are presented with modification, they go into phase one therefore there may be feelings like sadness, uncertainty, stress, rage, concern, rejection and also disorientation.The situation at the advertising and marketing department of Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate is similar so Lewis can obtain comfy with the suggestion that it is not phenomenal habits. In the second stage, there may be a requirement to bridge the space in between the new and also old culture so Lewis might have to face this challenge when Krasnow leaves. There might be low spirits as well as reduced productivity at this phase which should not be taken as an obstacle. It is throughout this phase that Lewis will need to give advice to the division so that they can locate a sense of direction. It can be seen just how Krasnow has actually currently made this transition easier by making Lewis get involved in the division a year prior to his actual separation. According to Bridges' Design, phase three will certainly bring about visibility to discovering, High power and dedication as individuals will certainly accept the change (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB issue related to insecurity at the work environment has actually been activated to start with by the change in administration as well as second of all by the reality that the merging will no more be initiated. Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has goes over the importance of 'safety and security requires as being a reduced level need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel secure as well as unharmed' goes to the 2nd level of requirements. Prior to a worker can be made to establish emotionally, he needs to have his 'Physical 'as well as 'Safety' needs satisfied. This shows that unless the employees are made to really feel protected concerning their existing employment condition in Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate Case Study



Effects of Analysis.

The OB analysis has looked at different concepts to understand exactly how to handle the existing scenario at hand. The adhering to three alternatives have been proposed to help Lewis manage the organizational obstacles in the advertising and marketing division. Each of these alternatives has actually been suggested for reducing the transition required to bring the advertising and marketing department in accordance with the needs of the marketplace and for making the social modification that would certainly adhere to when the present leader leaves.

Combination of advertising and marketing functions. Dividing Adverting and also Production features. Assimilation of Advertising with Procedures.

Examination of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis during the earlier merging days has know-how in business-to-business advertising and marketing along with agency as well as retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to handle both advertising and marketing as well as advertising features.

The advantage of this approach is that it will certainly incorporate both features while decreasing the requirement for employing an additional resource for marketing. Along with this, Lewis would be heading the advertising and marketing department and all the same her replacement would be needed for the present role that she is performing. The disadvantage of this choice is that exterior hiring may bring about resentment from inner workers who might be considering the setting of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and Production: Offered the competitive stress as well as high quality job called for from the advertising agency, it is suggested that Lewis needs to allow the production device to be a separate function from the advertising and marketing device. Because many advertising agencies had these two functions as separate units, it makes even more feeling to follow the norm. Both functions may be able to focus on their core activates extra efficiently. However, the downside of this method would certainly be that additional expenses would certainly have to be borne for setting up different manufacturing functions. A manufacturing head might have to be worked with which might enhance overheads for the organization.

Combination of Advertising with Procedures: Given that Lewis is currently caring for the marketing and procedures departments simultaneously; it makes good sense to integrate both features since she has actually been successfully dealing with both ends. The truth that both departments already have major distinctions over allocation of resources recommends that this combination may have the ability to cause harmony particularly as Lewis would certainly be heading both ends.However there are various drawbacks of this action particularly as it would certainly place excessive burden over Lewis's shoulders. The fact that Lewis needs to adjust her management style for the advertising and marketing department suggests that these 2 divisions would be culturally diverse. In addition to this, Lewis may not be able to use one kind of leadership style to both departments which could result in ineffectiveness in either one of both features.

Suggestion.



An assessment of the 3 options shows that integration of marketing and operations would not be a possible action due to the large differences between the two departments despite the reality that currently Lewis is taking care of both. While separation of the manufacturing function may have been a beneficial relocation for the advertising and marketing department, the truth that it would certainly imply putting a third function under Lewis's wing implies this must be avoided.

Action Strategy.
Recommendation
Lewis will take control of the function of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Manufacturing function will certainly continue to be component of marketing under marketing feature.

Lewis will divide herself from procedures.

An autonomous leadership style with worker empowerment will be made use of in advertising and marketing department.

Open door policy and emphasis on cross department interaction will be aimed at getting rid of dissonance.

Backup strategy.

If the integration does not work out as prepared, a contingency plan would certainly comply with which would divide the production function from the advertising function to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the manufacturing feature will definitely be divided by positioning it under an SVP manufacturing.