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Citibanks E Business Strategy For Global Corporate Banking 2008 Case Study Analysis

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Citibanks E Business Strategy For Global Corporate Banking 2008 Case Study Analysis

Background and Facts

Citibanks E Business Strategy For Global Corporate Banking 2008 a workplace products store for little as well as moderate sized services has lately been associated with planning for a merging with its rival Residence Deport, which has actually influenced efficiency degrees in departmentswith the senior supervisor involved in legal problems presented by the federal Trade Payment. With the Advertising Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the duty in the future. With challenges in the kind of a possible cultural modification and reduced staff member spirits, the organization needs a complete reengineering initiative at the advertising and marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective social modification at the marketing department of Citibanks E Business Strategy For Global Corporate Banking 2008 is raising uncertainty in the working environment leading to different difficulties for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting tactical decisions because Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Profession Payment's intervention at the same time. Provided the truth that the shop has a global presence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these nations might be able to affect efficiency or critical goals. Federal Trade Compensation's antitrust suit versus the merging used up beneficial time of the organization's elderly monitoring recommending that 'political' factors can have significant ramifications for an international business.

Economic Factors: Economic factors such as the emergence of small businesses in the international situation suggest that Citibanks E Business Strategy For Global Corporate Banking 2008 is thriving in an environment where there is prospective development of services. Truth that store customers are primarily looking for office products for residence workplaces recommends that the market has a climbing trend of business owners as well as residence based companies.

Social factors: Social patterns in the economic situation reveal that customers are searching for convenience along with attractive prices. Marketing research demonstrates how the client for Citibanks E Business Strategy For Global Corporate Banking 2008 lacks recognition regarding discovering remedies which can use a mix of benefit as well as inexpensive.

Technological factors: Technology plays an essential function in Citibanks E Business Strategy For Global Corporate Banking 2008's organisation approach specifically as the company is piloting Innovation centers which would certainly offer innovation sales as well as assistance in the type of memory upgrades, outer installments. (Summary of INSECT in appendix 2).

OB Issues and Symptoms.

Numerous underlying Business Habits problems can be seen in Citibanks E Business Strategy For Global Corporate Banking 2008's case as highlighted in this area.

Apprehensions regarding cultural adjustment: There is apprehension about a cultural adjustment that would certainly happen when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising with the majority of the team member currently showing discontent over this potential step. This predicted adjustment has actually created tension in the office which has actually been paired with the past stress and anxiety of preparing the company for a potential merging with Residence Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is shortage of employees that can match the stressful setting of a fast-paced organization. Not just does this result in trouble in discovering the appropriate people, it puts tension on brand-new hires as can not hold up against the speed as well as stress that the organization expects them to bear.

Dual Reporting Lines: Newcomers find this business society troublesome and also difficult to deal with especially as dotted line relationships are meant to be weak as a whole and also objective setup and performance evaluation is still done by the strong line manager. This means that beginners could lose clearness about their respective roles as well as goals specifically as populated line reporting does not keep them in straight interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been speculated that the latter would take Krasnow's position came as a blow to her morale. Lewis may have been capable as well as appropriate for the work yet the truth that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Fear & Work Insecurity: Fear as well as insecurity can be identified as two major problems that Lewis would be dealing with specifically as the merger has currently be terminated and also two elderly execs of the advertising department would certainly be leaving. The whole obligation of the department would certainly be dropping on Lewis's shoulders who would certainly not just supervise of brining about a social change however would additionally have to verify herself in her brand-new role.

Inappropriate Monitoring Design of Leader: Lewis's monitoring design as well as its incompatibility with the advertising division's duty can also be seen as an OB challenge specifically as she has actually been used to dealing with problems in the operations division where personnel are instructed to concentrate on processes and obtain them right. The marketing department on the various other hand can be viewed as a team of people that are made use of to being nurtured by Krasnow that concentrated more on output than procedures.

Interdepartmental Differences: Interdepartmental disagreements in between 3 divisions, marketing, merchandizing and also operations specifically over the allowance of the advertising mix can be identified as an additional OB problem. The advertising and marketing division does not share the same vision as the other two departments regarding the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and operations departments do not concur over the advertising and marketing mix allocation among one an additional either.

Fragmentation in Marketing Department: Fragmentation in between the advertising and marketing divisions can be determined as another OB issue which could require further interest. The reality that the advertising and marketing areas in the advertising division are separated is preventing both divisions from acquiring from each various other's experience as well as proficiency. Integration of advertising with merchandising as well as operations would certainly end up being harder if the advertising and marketing division itself is disintegrated which can be another potential OB problem.

Citibanks E Business Strategy For Global Corporate Banking 2008 Analysis

Various theories have been utilized to clarify the scenarios to get more clearness regarding the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of supervisors believe that juniors are easy and also lazy, have little ambition as well as withstand change. The difficult variation of this theory emphasized threat, tight controls, dangers and punishments. With time it creates low performance, refined sabotage and also competition (Deal, 2003). Although the circumstance at Citibanks E Business Strategy For Global Corporate Banking 2008 is not totally adhering to Concept X, it can be seen that new hires are discovering this atmosphere rather demanding which may ultimately result in a greater inclination of the management in the direction of Concept X. Based on McGregor's promoted sight, which he called Concept Y, the necessary job of the monitoring is to arrange business conditions to make sure that individuals can accomplish their own objectives best by guiding their efforts towards organizational incentives. If people find no complete satisfaction in their job, the administration would certainly have little option but to rely on theory X and also external control (Deal, 2003). Also while analyzing Lewis's administration style, theory X may have been suitable in the operations department to some extent but the Advertising department would need reliance on Concept Y to get the creative thinking and originality from the teams.

Tuckman's Teamwork Theory: Regarding Lewis's issue about bringing harmony in between the marketing and advertising division is concerned, this would originally lead to conflict as talked about by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, throughout the preliminary stage of group development, people may not bond, as they are hectic discovering their area in the team. By combining the marketing and advertising department's work, there may coincide initial disconnect which can result in the 2nd phase of 'storming' where the groups challenge one another. Nevertheless, it is just during the 3rd stage or 'norming' when they would collaborate to share ideas prior to the team can cause synergy in the 4th phase 'performing'.

When individuals are presented with adjustment, they go into stage one as well as so there might be feelings like sadness, uncertainty, aggravation, temper, anxiety, rejection and also disorientation.The situation at the advertising department of Citibanks E Business Strategy For Global Corporate Banking 2008 is similar so Lewis can get comfy with the concept that it is not extraordinary actions. It is during this phase that Lewis will certainly have to provide assistance to the division so that they can discover a feeling of direction. It can be seen just how Krasnow has actually currently made this shift much easier by making Lewis get entailed in the department a year before his actual separation.
Vrio Analysis
Maslow's Demand power structure: The OB concern related to insecurity at the work environment has actually been activated first of all by the change in management as well as secondly by the reality that the merger will no longer be started. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has discusses the importance of 'security requires as being a lower degree need of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the demand to feel protected as well as unharmed' goes to the 2nd degree of requirements. Before a worker can be made to establish mentally, he needs to have his 'Physiological 'and also 'Security' needs fulfilled. This indicates that unless the workers are made to feel safe regarding their present work status in Citibanks E Business Strategy For Global Corporate Banking 2008 they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Citibanks E Business Strategy For Global Corporate Banking 2008 Case Study



Implication of Analysis.

The OB analysis has actually taken a look at numerous concepts to recognize how to cope with the present circumstance handy. The following three options have been suggested to help Lewis deal with the organizational challenges in the advertising and marketing division. Each of these choices has actually been proposed for alleviating the shift required to bring the advertising and marketing division in line with the needs of the market and for making the social change that would comply with as soon as the present leader leaves.

Integration of advertising and marketing features. Separating Adverting as well as Manufacturing features. Assimilation of Advertising with Operations.

Examination of Alternatives.

Assimilation of Advertising & Advertising And Marketing Functions: The in-house advertising and marketing firm of Citibanks E Business Strategy For Global Corporate Banking 2008 is currently strength for the company in regards to saving up on expenses connected to advertising and marketing and promotion. Since no new employment has actually been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the advertising and marketing feature, this is a desirable possibility for integrating the marketing and advertising features. Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merger days has experience in business-to-business marketing in addition to agency as well as retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both advertising and marketing features.

The advantage of this method is that it will certainly integrate the two functions while lowering the demand for employing an extra source for advertising. Along with this, Lewis would be heading the advertising division and also in any case her replacement would certainly be needed for the current function that she is executing. The negative aspect of this choice is that external hiring might cause resentment from interior employees that might be eying the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Manufacturing: Offered the competitive pressures and also high quality job required from the advertising and marketing firm, it is recommended that Lewis ought to permit the manufacturing unit to be a different feature from the advertising and marketing unit. Since the majority of marketing agencies had these 2 functions as different systems, it makes even more sense to comply with the norm.

Combination of Marketing with Workflows: Given that Lewis is currently caring for the marketing and also operations departments at the same time; it makes good sense to integrate the two features given that she has been efficiently caring for both ends. The reality that both departments already have major distinctions over appropriation of resources suggests that this combination may have the ability to produce consistency particularly as Lewis would certainly be heading both ends.However there are various drawbacks of this relocation especially as it would place way too much worry over Lewis's shoulders. The fact that Lewis has to adjust her monitoring design for the advertising and marketing division recommends that these 2 departments would be culturally varied. Along with this, Lewis might not be able to apply one sort of management style to both divisions which might lead to inadequacy in either one of the two functions.

Suggestion.



An assessment of the 3 options shows that combination of advertising and marketing as well as procedures would certainly not be a feasible relocation because of the large distinctions in between both departments despite the fact that presently Lewis is taking care of both. While separation of the production feature might have been a positive step for the marketing division, the reality that it would suggest positioning a third function under Lewis's wing implies this must be stayed clear of. The integration of the marketing division is the most effective choice in regards to getting the optimal results from the division. An activity prepare for this alternative is gone over below.

Action Plan.
Recommendation
Lewis will certainly take control of the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Manufacturing feature will certainly remain part of marketing under advertising and marketing feature.

Lewis will divide herself from procedures.

A democratic leadership design with employee empowerment will be utilized in marketing department.

Open door policy and also emphasis on cross department communication will certainly be targeted at getting rid of disharmony.

Contingency strategy.

If the combination does not exercise as planned, a contingency strategy would adhere to which would certainly divide the manufacturing function from the advertising and marketing feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the marketing division without an SVP. In that case the production function will certainly be separated by positioning it under an SVP production.