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

CASE ANALYSIS

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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 a workplace products retailer for little and average sized businesses has actually recently been associated with preparing for a merging with its rival House Deport, which has actually influenced efficiency degrees in departmentswith the senior manager associated with lawful issues put forth by the government Trade Commission. With the Advertising Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the future. With difficulties in the form of a possible cultural adjustment and also low staff member morale, the organization requires a full reengineering initiative at the advertising department.

Problem Declaration
Porter's 5 Forces Analysis
The prospective cultural change at the advertising and marketing division of Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate is increasing uncertainty in the workplace resulting in different obstacles for the Jeannie Lewis who 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 decisions since Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Trade Compensation's treatment in the process. Offered the truth that the store has an international existence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these nations may be able to affect efficiency or tactical objectives. Federal Trade Payment's antitrust match versus the merger took up valuable time of the company's senior monitoring suggesting that 'political' factors can have major implications for an international service.

Economic Factors: Financial factors such as the appearance of small companies in the worldwide scenario recommend that Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate is flourishing in a setting where there is potential growth of businesses. In addition to this, truth that shop customers are primarily looking for office products for home offices suggests that the marketplace has a climbing fad of business owners and also home organisations.

Social factors: Social fads in the economy show that customers are seeking ease as well as attractive rates. Marketing research demonstrates how the customer for Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate lacks understanding regarding finding services which can offer a mix of comfort and affordable.

Technological factors: Technology plays a vital role in Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate's service strategy particularly as the company is piloting Technology facilities which would provide technology sales and support in the kind of memory upgrades, outer installments. (Recap of PEST in appendix 2).

OB Issues and Manifestations.

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

Apprehensions about cultural change: There is uneasiness concerning a cultural modification that would certainly occur when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with a lot of the personnel already showing discontent over this potential step. This expected adjustment has actually produced stress in the workplace which has actually been combined with the past tension of preparing the firm for a potential merger with Residence Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is lack of personnel that can match the difficult environment of a busy organization. Not just does this bring about difficulty in locating the right people, it places stress on new hires as can not hold up against the pace and also pressure that the company anticipates them to bear.

Twin Coverage Lines: Newbies find this organizational society difficult and also difficult to deal with particularly as populated line connections are implied to be weak as a whole and also unbiased setup as well as efficiency analysis is still done by the solid line supervisor. This implies that newbies could shed clearness concerning their respective duties and objectives especially as populated line reporting does not keep them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles even though it had been hypothesized that the last would certainly take Krasnow's position came as an impact to her morale. Lewis might have been qualified and also appropriate for the task but the fact that Kransnow's departure would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Job Instability: Worry as well as insecurity can be recognized as 2 major issues that Lewis would certainly be dealing with especially as the merger has actually currently be terminated and two elderly execs of the advertising and marketing division would certainly be leaving. The whole responsibility of the division would certainly be dropping on Lewis's shoulders that would certainly not just supervise of brining about a cultural change however would certainly also have to prove herself in her new function.

Inappropriate Management Design of Leader: Lewis's monitoring style as well as its conflict with the advertising and marketing division's function can also be seen as an OB obstacle specifically as she has actually been used to taking care of issues in the procedures department where workers are shown to concentrate on processes and get them. The advertising division on the other hand can be viewed as a group of people that are utilized to being nurtured by Krasnow that focused a lot more on outcome than processes.

Interdepartmental Disputes: Interdepartmental differences between three departments, advertising, merchandizing as well as operations respectively over the appropriation of the advertising mix can be identified as another OB problem. The advertising division does not share the exact same vision as the various other 2 divisions concerning the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing as well as operations departments do not agree over the marketing mix allocation amongst one an additional either.

Disintegration in Advertising Department: Fragmentation between the advertising and marketing divisions can be identified as another OB concern which might require further interest. The reality that the advertising and marketing areas in the marketing division are disconnected is stopping both divisions from acquiring from each other's experience and also experience. Combination of advertising with retailing as well as operations would become more difficult if the marketing department itself is disintegrated which can be another possible OB issue.

Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate Analysis

Various theories have actually been made use of to describe the circumstances to obtain further clarity concerning the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that juniors are passive and careless, have little ambition and also withstand adjustment. The tough variation of this theory highlighted browbeating, tight controls, risks and also penalties. Over time it creates reduced efficiency, refined sabotage and also rivalry (Deal, 2003). Although the situation at Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate is not completely complying with Theory X, it can be seen that brand-new hires are locating this setting rather stressful which may eventually result in a higher disposition of the monitoring towards Concept X. Based on McGregor's supported sight, which he called Concept Y, the necessary task of the monitoring is to set up business problems to ensure that individuals can attain their own goals best by guiding their efforts in the direction of business incentives. If individuals locate no satisfaction in their work, the management would have little selection however to rely on concept X as well as exterior control (Offer, 2003). Even while assessing Lewis's monitoring style, theory X may have been suitable in the procedures division to some extent but the Marketing division would need dependence on Concept Y so as to get the creativity as well as creativity from the groups.

Tuckman's Synergy Concept: As for Lewis's issue regarding bringing harmony between the marketing and advertising department is worried, this would at first bring about clash as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, throughout the first phase of group growth, individuals may not bond, as they are busy finding their area in the group. By combining the advertising and marketing department's work, there may be the same preliminary separate which might bring about the 2nd phase of 'storming' where the groups challenge each other. It is only during the third stage or 'norming' when they would come with each other to share suggestions prior to the group can bring about synergy in the fourth stage 'performing'.

Bridges' Shift Version: As per William Bridge's concept (appendix 4), people are fairly awkward with adjustment, which is noticeable by the scenario at Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate The situation can be seen as a normal program of life if is researched as per Bridge's theory where he discusses that individuals go through three stages of change when they experience adjustment. 'Closing, shedding and Letting go', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When people are presented with change, they go into phase one therefore there might be emotions like sadness, uncertainty, stress, temper, fear, denial and disorientation.The scenario at the advertising and marketing division of Canadian Pacific Ltd Unlocking Shareholder Value In A Conglomerate is similar so Lewis can obtain comfortable with the suggestion that it is not extraordinary behavior. In the 2nd phase, there may be a need to bridge the gap between the brand-new and also old culture so Lewis might need to encounter this experience when Krasnow leaves. There might be reduced spirits as well as reduced efficiency at this stage which should not be taken as a setback. It is throughout this stage that Lewis will certainly have to give guidance to the division to make sure that they can find a sense of direction. It can be seen exactly how Krasnow has already made this shift easier by making Lewis get involved in the department a year prior to his actual separation. As per Bridges' Model, phase three will certainly cause openness to knowing, High energy as well as commitment as individuals will accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has reviews the significance of 'safety and security needs as being a lower level demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel secure and out of danger' is at the 2nd level of demands. Before an employee can be made to create emotionally, he needs to have his 'Physiological 'and 'Safety' needs satisfied.

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



Ramification of Analysis.

The OB analysis has checked out numerous concepts to recognize just how to manage the existing situation at hand. The following 3 choices have actually been recommended to aid Lewis manage the organizational obstacles in the marketing department. Each of these options has been proposed for relieving the change needed to bring the advertising department according to the demands of the marketplace as well as for making the social adjustment that would follow when the present leader leaves.

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

Evaluation of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merger days has competence in business-to-business advertising and marketing along with firm and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to manage both advertising and marketing and advertising and marketing functions.

The benefit of this approach is that it will incorporate both features while lowering the demand for hiring an extra resource for marketing. Lewis would be heading the advertising department as well as in any kind of case her replacement would certainly be required for the existing role that she is performing. The downside of this choice is that external hiring may cause bitterness from inner personnel who might be considering the position of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and also Manufacturing: Provided the competitive stress and also high quality work required from the marketing company, it is advised that Lewis needs to allow the production device to be a different feature from the advertising device. Since most marketing firms had these two functions as separate devices, it makes even more sense to follow the norm.

Assimilation of Marketing with Procedures: Considering that Lewis is currently taking care of the advertising and operations departments at the same time; it makes feeling to integrate the two functions because she has been successfully taking treatment of both ends. The truth that Lewis has to adapt her administration design for the marketing division recommends that these two divisions would certainly be culturally diverse.

Recommendation.



An evaluation of the three choices shows that combination of marketing and also operations would certainly not be a feasible move as a result of the substantial differences between both departments although that presently Lewis is handling both. While splitting up of the production feature may have been a positive step for the advertising division, the truth that it would certainly suggest positioning a 3rd function under Lewis's wing means this need to be stayed clear of as well. The assimilation of the advertising and marketing division is the best alternative in regards to getting the optimal arise from the department. An activity prepare for this choice is discussed below.

Activity Strategy.
Recommendation
Lewis will take control of the function of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

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

Lewis will separate herself from procedures.

A democratic leadership style with staff member empowerment will certainly be utilized in advertising division.

Open door plan as well as emphasis on cross department communication will be targeted at getting rid of disharmony.

Contingency strategy.

If the combination does not exercise as planned, a contingency plan would certainly follow which would separate the production function from the advertising feature to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising division without an SVP. Because case the production feature will definitely be divided by positioning it under an SVP production.