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Citibank Hong Kong Capital Arbitrage In The Emerging Markets Case Study Solution

CASE ANALYSIS

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Citibank Hong Kong Capital Arbitrage In The Emerging Markets Case Study Solution

Background and Facts

Citibank Hong Kong Capital Arbitrage In The Emerging Markets a workplace materials retailer for little as well as average sized services has actually just recently been associated with planning for a merger with its competitor House Deport, which has actually influenced performance levels in departmentswith the elderly supervisor involved in legal issues presented by the government Trade Compensation. With the Advertising and marketing Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the duty in the future. With challenges in the kind of a possible cultural change as well as reduced employee spirits, the company wants a full reengineering initiative at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The potential social change at the marketing division of Citibank Hong Kong Capital Arbitrage In The Emerging Markets is boosting uncertainty in the working environment leading to various difficulties for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing calculated decisions given that Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Profession Payment's treatment in the process. Offered the truth that the store has an international visibility with branches in UK, USA, Canada as well as Germany, political factors in each of these nations may have the ability to influence efficiency or critical objectives. Federal Trade Commission's antitrust suit against the merger occupied useful time of the company's senior management recommending that 'political' factors can have significant implications for an international service.

Economic Factors: Financial factors such as the appearance of local business in the worldwide situation recommend that Citibank Hong Kong Capital Arbitrage In The Emerging Markets is thriving in an environment where there is possible development of businesses. Along with this, truth that shop customers are mostly seeking office supplies for office suggests that the marketplace has an increasing pattern of business owners and home based organisations.

Social factors: Social fads in the economic situation show that customers are looking for convenience in addition to attractive prices. Market research shows how the client for Citibank Hong Kong Capital Arbitrage In The Emerging Markets lacks awareness concerning locating remedies which can use a combination of convenience and also low costs.

Technological factors: Modern technology plays an important function in Citibank Hong Kong Capital Arbitrage In The Emerging Markets's organisation technique especially as the company is piloting Modern technology facilities which would certainly provide modern technology sales as well as assistance in the kind of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues as well as Effects.

Several underlying Business Habits issues can be seen in Citibank Hong Kong Capital Arbitrage In The Emerging Markets's case as highlighted in this area.

Worries about social change: There is concern concerning a cultural modification that would certainly occur as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising with most of the personnel currently showing unhappiness over this possible step. This anticipated adjustment has developed anxiety in the office which has actually been paired with the past stress of preparing the firm for a prospective merging with Home Deport.
Pest Analysis
Demanding Work Atmosphere for Newcomers: There is scarcity of employees that can match the stressful atmosphere of a busy organization. Not just does this lead to problem in locating the ideal people, it places stress and anxiety on new hires as can not hold up against the speed and also stress that the company expects them to birth.

Twin Reporting Lines: Newbies discover this organizational society difficult as well as difficult to handle specifically as populated line relationships are implied to be weaker generally and objective setup as well as performance assessment is still done by the strong line supervisor. This suggests that newbies might shed clarity concerning their particular duties and goals specifically as populated line coverage does not maintain them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had been speculated that the last would take Krasnow's placement came as a strike to her morale. Lewis might have been capable and suitable for the task however the reality that Kransnow's separation would certainly make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Work Instability: Worry and instability can be identified as 2 significant issues that Lewis would certainly be managing particularly as the merger has actually now be cancelled and also two elderly execs of the advertising and marketing department would certainly be leaving. The entire obligation of the department would certainly be falling on Lewis's shoulders that would not simply supervise of brining concerning a cultural change yet would certainly likewise need to prove herself in her brand-new role.

Inappropriate Management Design of Leader: Lewis's administration design and also its incompatibility with the advertising and marketing department's role can additionally be seen as an OB challenge particularly as she has been utilized to dealing with problems in the operations department where personnel are educated to concentrate on processes and also get them right. The marketing department on the other hand can be seen as a team of individuals that are utilized to being nurtured by Krasnow who concentrated extra on result than processes.

Interdepartmental Disagreements: Interdepartmental differences in between three departments, marketing, merchandizing and procedures respectively over the allocation of the advertising mix can be identified as another OB concern. Although the marketing division does not share the exact same vision as the other 2 divisions relating to the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and also procedures departments do not agree over the marketing mix allocation among one another either.

Fragmentation in Marketing Department: Fragmentation between the advertising and marketing departments can be determined as one more OB issue which could need further attention. The truth that the marketing and advertising areas in the marketing division are disconnected is avoiding both departments from gaining from each various other's experience and knowledge. Assimilation of marketing with merchandising as well as procedures would come to be harder if the advertising and marketing division itself is disintegrated which can be one more prospective OB issue.

Citibank Hong Kong Capital Arbitrage In The Emerging Markets Analysis

Numerous concepts have actually been used to describe the scenarios to get further clearness regarding the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers think that juniors are passive and also lazy, have little ambition as well as stand up to adjustment. The hard variation of this theory emphasized threat, limited controls, risks and also punishments. With time it generates low performance, refined sabotage and rivalry (Deal, 2003). Although the situation at Citibank Hong Kong Capital Arbitrage In The Emerging Markets is not entirely following Theory X, it can be seen that new hires are finding this setting instead difficult which may at some point result in a better disposition of the administration in the direction of Concept X. Based on McGregor's advocated view, which he called Concept Y, the crucial task of the administration is to organize business conditions so that people can accomplish their very own goals best by guiding their efforts in the direction of business incentives. If people locate no satisfaction in their job, the administration would certainly have little choice but to depend on concept X and also outside control (Offer, 2003). Even while evaluating Lewis's management style, theory X might have appropriated in the operations division to some extent however the Advertising and marketing department would call for dependence on Theory Y to get the creativity and also creativity from the teams.

Tuckman's Synergy Concept: As far as Lewis's problem about bringing consistency in between the marketing and advertising department is concerned, this would originally cause contrast as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, throughout the first phase of team advancement, individuals might not bond, as they are hectic locating their location in the group. By integrating the advertising and marketing division's work, there might coincide preliminary detach which could bring about the second phase of 'storming' where the teams test each other. It is just throughout the 3rd stage or 'norming' when they would certainly come together to share ideas before the team can bring around harmony in the fourth stage 'carrying out'.

When people are provided with change, they go into phase one and so there might be feelings like despair, uncertainty, stress, temper, fear, rejection and also disorientation.The circumstance at the advertising department of Citibank Hong Kong Capital Arbitrage In The Emerging Markets is similar so Lewis can obtain comfy with the suggestion that it is not extraordinary actions. It is during this stage that Lewis will certainly have to provide assistance to the division so that they can locate a feeling of direction. It can be seen just how Krasnow has currently made this shift simpler by making Lewis get involved in the department a year prior to his actual separation.
Vrio Analysis
Maslow's Need power structure: The OB concern pertaining to instability at the workplace has actually been caused to start with by the adjustment in monitoring and second of all by the fact that the merger will no more be launched. Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has talks about the significance of 'safety and security needs as being a lower level demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel secure and also out of danger' is at the 2nd level of needs. Prior to a staff member can be made to create emotionally, he needs to have his 'Physical 'and also 'Safety and security' needs satisfied. This indicates that unless the personnel are made to feel secure concerning their current work status in Citibank Hong Kong Capital Arbitrage In The Emerging Markets they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Citibank Hong Kong Capital Arbitrage In The Emerging Markets Case Study



Effects of Analysis.

The OB analysis has looked at various concepts to understand just how to manage the current circumstance at hand. The complying with 3 choices have actually been recommended to aid Lewis handle the organizational challenges in the marketing division. Each of these options has actually been recommended for easing the shift needed to bring the marketing department according to the needs of the market as well as for making the social change that would follow once the current leader leaves.

Integration of advertising and marketing functions. Dividing Adverting and Manufacturing features. Integration of Advertising And Marketing with Workflow.

Analysis of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The in-house advertising company of Citibank Hong Kong Capital Arbitrage In The Emerging Markets is already strength for the company in regards to saving up on overheads related to advertising and marketing as well as promo. Considering that no new employment has actually been done after Bridget Cole's separation with the coverage line being straight appointed to Krasnow for the advertising and marketing feature, this is a favorable chance for integrating the advertising and marketing features. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merging days has expertise in business-to-business marketing together with company as well as retail advertising experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both advertising and marketing features.

The benefit of this technique is that it will certainly integrate the two features while reducing the demand for employing an additional source for advertising and marketing. In addition to this, Lewis would be heading the marketing department as well as regardless her replacement would be needed for the existing duty that she is doing. The downside of this alternative is that exterior hiring may cause animosity from internal employees who may be eying the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Manufacturing: Offered the competitive pressures as well as top quality job required from the advertising agency, it is recommended that Lewis must allow the production system to be a separate function from the advertising and marketing unit. Given that a lot of advertising agencies had these two functions as separate devices, it makes more feeling to adhere to the norm. Both functions might be able to focus on their core activates much more efficiently. Nevertheless, the downside of this strategy would be that extra expenses would certainly have to be borne for setting up separate production functions. A manufacturing head might have to be hired which might boost overheads for the organization.

Integration of Advertising with Procedures: Since Lewis is already taking care of the marketing and operations divisions concurrently; it makes good sense to incorporate both functions considering that she has actually been efficiently taking care of both ends. The fact that the two divisions already have major differences over allowance of resources suggests that this combination might have the ability to produce consistency particularly as Lewis would be heading both ends.However there are different negative aspects of this move specifically as it would certainly put way too much worry over Lewis's shoulders. The fact that Lewis needs to adapt her management design for the advertising and marketing department suggests that these two divisions would be culturally varied. Lewis might not be able to apply one type of management design to both departments which could result in inadequacy in either one of the 2 functions.

Recommendation.



An examination of the 3 alternatives indicates that integration of marketing as well as operations would not be a possible move due to the large differences in between the 2 departments despite the fact that currently Lewis is dealing with both. While separation of the manufacturing feature may have been a favorable relocation for the advertising division, the truth that it would certainly indicate putting a 3rd function under Lewis's wing suggests this ought to be prevented.

Action Strategy.
Recommendation
Lewis will take control of the duty of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Production function will certainly stay part of marketing under advertising function.

Lewis will certainly separate herself from procedures.

A democratic management style with worker empowerment will certainly be made use of in advertising division.

Open up door policy and also emphasis on cross departmental interaction will certainly be aimed at removing disharmony.

Contingency strategy.

If the assimilation does not exercise as planned, a contingency plan would adhere to which would divide the production feature from the marketing function to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising division without an SVP. In that case the manufacturing function will definitely be separated by positioning it under an SVP production.