Canadian Pacifics Bid For Norfolk Southern Case Study Analysis


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Canadian Pacifics Bid For Norfolk Southern Case Study Solution

Background and Facts

Canadian Pacifics Bid For Norfolk Southern an office materials retailer for little and moderate sized companies has just recently been involved in planning for a merging with its competitor House Deport, which has actually affected effectiveness levels in departmentswith the elderly supervisor associated with lawful problems presented by the federal Trade Commission. With the Advertising Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the future. With challenges in the form of a possible social modification and also reduced staff member spirits, the organization requires a complete reengineering effort at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The potential cultural change at the advertising and marketing department of Canadian Pacifics Bid For Norfolk Southern is raising uncertainty in the workplace resulting in numerous challenges for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting critical choices given that Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Trade Commission's treatment in the process. Provided the truth that the shop has a worldwide existence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries might be able to affect efficiency or calculated goals. Federal Profession Compensation's antitrust match versus the merger used up valuable time of the organization's senior administration suggesting that 'political' factors can have severe effects for a worldwide service.

Economic Factors: Economic factors such as the introduction of local business in the international scenario recommend that Canadian Pacifics Bid For Norfolk Southern is flourishing in an environment where there is prospective development of companies. Reality that store clients are mainly looking for office supplies for house offices recommends that the market has a rising trend of business owners as well as home based organisations.

Social factors: Social fads in the economy reveal that consumers are looking for comfort as well as appealing prices. Market research demonstrates how the customer for Canadian Pacifics Bid For Norfolk Southern lacks recognition about finding options which can provide a mix of comfort as well as low costs.

Technical factors: Modern technology plays a vital duty in Canadian Pacifics Bid For Norfolk Southern's business approach particularly as the company is piloting Innovation facilities which would certainly provide innovation sales and support in the form of memory upgrades, outer installments. (Recap of BUG in appendix 2).

OB Issues and Effects.

Numerous underlying Organizational Actions problems can be seen in Canadian Pacifics Bid For Norfolk Southern's case as highlighted in this section.

Concerns concerning cultural modification: There is worry regarding a cultural modification that would certainly happen when Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with most of the staff members already showing unhappiness over this prospective move. This expected modification has actually created stress in the work environment which has actually been coupled with the previous stress and anxiety of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is shortage of personnel that can match the demanding setting of a fast-paced organization. Not only does this lead to trouble in finding the best individuals, 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.

Twin Reporting Lines: Beginners find this organizational society troublesome and challenging to deal with especially as dotted line relationships are suggested to be weak generally and also objective setup and also performance analysis is still done by the strong line supervisor. This indicates that newcomers could lose quality concerning their respective duties and also purposes especially as dotted line reporting does not keep them in direct interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles even though it had been speculated that the latter would certainly take Krasnow's position came as a blow to her spirits. Lewis may have been qualified and also suitable for the job however the fact that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from services.

Anxiety & Work Instability: Worry and also insecurity can be identified as two significant worries that Lewis would certainly be taking care of specifically as the merging has actually currently be terminated and 2 elderly execs of the advertising and marketing department would be leaving. The entire duty of the department would be falling on Lewis's shoulders that would certainly not simply supervise of brining about a social modification yet would certainly likewise need to confirm herself in her brand-new duty.

Incompatible Administration Design of Leader: Lewis's monitoring style and also its incompatibility with the advertising and marketing department's duty can also be seen as an OB challenge specifically as she has been made use of to dealing with concerns in the operations division where workers are taught to concentrate on processes and also obtain them right. The advertising and marketing department on the other hand can be seen as a group of people who are used to being nurtured by Krasnow who concentrated extra on output than processes.

Interdepartmental Disagreements: Interdepartmental disagreements between 3 departments, advertising, merchandizing and procedures specifically over the appropriation of the advertising and marketing mix can be recognized as an additional OB worry. The marketing division does not share the exact same vision as the various other two departments concerning the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and also operations divisions do not concur over the advertising and marketing mix appropriation amongst one an additional either.

Fragmentation in Advertising And Marketing Division: Disintegration in between the marketing and advertising divisions can be identified as one more OB problem which might need more focus. The reality that the advertising and marketing areas in the marketing department are disconnected is preventing both divisions from gaining from each other's experience and also competence. Assimilation of advertising and marketing with merchandising and also operations would certainly become more difficult if the advertising and marketing division itself is broken down which can be another potential OB concern.

Canadian Pacifics Bid For Norfolk Southern Analysis

Various concepts have actually been utilized to discuss the conditions to get more clarity regarding the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of supervisors believe that juniors are passive as well as careless, have little ambition and also stand up to modification. The tough variation of this theory highlighted browbeating, tight controls, threats and also penalties. Gradually it creates low productivity, refined sabotage as well as rivalry (Bargain, 2003). The scenario at Canadian Pacifics Bid For Norfolk Southern is not totally adhering to Theory X, it can be seen that new hires are finding this environment instead difficult which may eventually lead to a greater inclination of the management towards Theory X. According to McGregor's supported sight, which he called Concept Y, the important task of the administration is to organize organizational conditions to ensure that people can accomplish their own objectives best by directing their initiatives towards organizational incentives. If people find no complete satisfaction in their job, the management would have little option however to depend on concept X and external control (Deal, 2003). Even while assessing Lewis's monitoring style, concept X may have been suitable in the procedures division somewhat yet the Marketing department would certainly call for dependence on Concept Y in order to get the creative thinking and also originality from the groups.

Tuckman's Team effort Concept: As much as Lewis's problem regarding bringing consistency in between the marketing and advertising and marketing department is worried, this would originally lead to contrast as discussed by Bruce Tuckman in his 'Team effort Concept'. By integrating the marketing as well as advertising department's job, there might be the very same first disconnect which might lead to the 2nd phase of 'storming' where the groups challenge one an additional.

Bridges' Transition Version: According To William Bridge's concept (appendix 4), people are fairly awkward with adjustment, which is noticeable by the situation at Canadian Pacifics Bid For Norfolk Southern The situation can be viewed as a normal program of life if is examined as per Bridge's theory where he discusses that people undergo three phases of shift when they experience change. 'Closing, shedding and Letting go', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When individuals are presented with change, they get in phase one and so there may be emotions like despair, uncertainty, frustration, rage, anxiety, denial and also disorientation.The circumstance at the advertising and marketing department of Canadian Pacifics Bid For Norfolk Southern is similar so Lewis can get comfortable with the concept that it is not amazing actions. In the 2nd stage, there may be a need to link the void between the new and also old society so Lewis may need to face this experience when Krasnow leaves. There might be reduced morale as well as low performance at this stage which need to not be taken as a problem. It is throughout this stage that Lewis will certainly need to give advice to the division to make sure that they can find an orientation. It can be seen exactly how Krasnow has already made this transition simpler by making Lewis obtain associated with the division a year before his real separation. According to Bridges' Design, phase 3 will bring about visibility to discovering, High power and commitment as people will certainly embrace the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Need hierarchy: The OB concern pertaining to insecurity at the office has actually been triggered to start with by the adjustment in administration and also second of all by the fact that the merging will certainly no longer be started. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has talks about the importance of 'protection needs as being a reduced level demand of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to feel secure as well as safe' is at the 2nd degree of demands. Prior to a staff member can be made to develop emotionally, he needs to have his 'Physiological 'as well as 'Safety' requires satisfied. This suggests that unless the personnel are made to feel secure regarding their present work status in Canadian Pacifics Bid For Norfolk Southern they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Canadian Pacifics Bid For Norfolk Southern Case Study

Implication of Analysis.

The OB analysis has checked out various concepts to comprehend how to cope with the present circumstance available. The adhering to 3 alternatives have actually been suggested to help Lewis handle the business challenges in the advertising division. Each of these options has been proposed for easing the shift needed to bring the marketing department according to the needs of the marketplace as well as for making the social modification that would certainly adhere to once the current leader leaves.

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

Assessment of Alternatives.

Integration of Marketing & Advertising Functions: The in-house advertising company of Canadian Pacifics Bid For Norfolk Southern is currently strength for the company in terms of conserving up on expenses related to advertising and marketing as well as promotion. Because no new employment has actually been done after Bridget Cole's separation with the reporting line being directly appointed to Krasnow for the marketing function, this is a favorable opportunity for integrating the advertising and marketing functions. Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merging days has competence in business-to-business advertising in addition to agency and retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to handle both advertising and marketing functions.

The benefit of this approach is that it will integrate both features while minimizing the demand for working with an added resource for marketing. Lewis would certainly be heading the advertising department as well as in any kind of case her replacement would certainly be needed for the existing function that she is carrying out. The drawback of this choice is that exterior hiring might produce resentment from interior personnel that might be considering the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting as well as Production: Offered the competitive pressures as well as high top quality job required from the advertising agency, it is suggested that Lewis must enable the manufacturing system to be a different feature from the advertising and marketing device. Given that most marketing firms had these two functions as separate units, it makes more feeling to comply with the norm.

Integration of Advertising And Marketing with Workflows: Given that Lewis is already taking treatment of the marketing as well as procedures divisions concurrently; it makes feeling to incorporate the two features given that she has actually been efficiently taking care of both ends. The truth that Lewis has to adapt her administration style for the advertising division suggests that these two divisions would certainly be culturally diverse.


An assessment of the 3 alternatives shows that integration of advertising as well as operations would not be a practical action due to the large differences in between the two departments in spite of the fact that presently Lewis is dealing with both. While separation of the manufacturing feature may have been a favorable step for the advertising and marketing division, the reality that it would imply positioning a 3rd function under Lewis's wing indicates this must be avoided.

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

Marketing and advertising functions would be merged.

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

Production feature will certainly remain component of advertising and marketing under advertising function.

Lewis will certainly separate herself from operations.

An autonomous leadership style with worker empowerment will certainly be utilized in marketing division.

Open up door plan as well as focus on cross departmental interaction will be targeted at getting rid of discord.

Contingency strategy.

If the integration does not exercise as planned, a contingency plan would certainly follow which would certainly divide the manufacturing feature from the marketing function to reduce the tons 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 manufacturing function will absolutely be separated by positioning it under an SVP manufacturing.