Citicorp 1985 Case Study Solution


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Citicorp 1985 Case Study Solution

Background and Facts

Citicorp 1985 a workplace materials merchant for little and also medium sized companies has just recently been involved in preparing for a merger with its rival Home Deport, which has influenced effectiveness degrees in departmentswith the senior manager involved in legal difficulties presented by the federal Trade Payment. With the Marketing Head advancing the news of his separation from the business in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the near future. With difficulties in the type of a potential social change and reduced employee spirits, the organization wants a complete reengineering initiative at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective social change at the advertising division of Citicorp 1985 is enhancing unpredictability in the working environment leading to numerous obstacles for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting calculated decisions since Stapes Inc. needed to abandon its strategies of merging with Office Deport after the Federal Profession Compensation's intervention at the same time. Provided the reality that the store has a global visibility with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these countries might have the ability to influence performance or critical objectives. Federal Profession Payment's antitrust fit against the merging occupied beneficial time of the company's senior monitoring recommending that 'political' factors can have severe implications for a worldwide company.

Economic Factors: Financial factors such as the emergence of small businesses in the worldwide scenario suggest that Citicorp 1985 is flourishing in an environment where there is potential growth of organisations. Reality that store customers are mainly looking for office products for house workplaces suggests that the market has a rising trend of business owners and house based businesses.

Social factors: Social trends in the economic climate reveal that consumers are seeking convenience as well as appealing rates. Marketing research demonstrates how the consumer for Citicorp 1985 lacks awareness concerning finding solutions which can provide a mix of ease as well as affordable.

Technical factors: Technology plays a crucial function in Citicorp 1985's organisation strategy specifically as the company is piloting Technology centers which would offer technology sales and also assistance in the type of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues and also Manifestations.

Several underlying Organizational Behavior issues can be seen in Citicorp 1985's case as highlighted in this area.

Uneasiness regarding cultural change: There is apprehension regarding a social change that would certainly take place as soon as Todd Krasnow leaves from his setting as the Exec Vice President of Advertising And Marketing with the majority of the team member already showing discontent over this prospective move. This predicted adjustment has produced stress in the workplace which has been coupled with the previous tension of preparing the company for a potential merging with Home Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is lack of personnel that can match the demanding atmosphere of a hectic organization. Not just does this lead to difficulty in locating the ideal individuals, it places tension on brand-new hires as can not stand up to the rate and stress that the company anticipates them to birth.

Double Reporting Lines: Beginners find this business culture troublesome and hard to deal with especially as dotted line relationships are indicated to be weaker as a whole and objective setup as well as efficiency examination is still done by the solid line manager. This suggests that newcomers might shed quality regarding their respective roles as well as objectives particularly as dotted line reporting does not maintain them in direct interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles even though it had actually been hypothesized that the latter would take Krasnow's setting came as an impact to her morale. Lewis may have been capable and also ideal for the job however the truth that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Fear & Job Instability: Fear and also insecurity can be determined as 2 major issues that Lewis would be taking care of specifically as the merger has now be cancelled and 2 senior executives of the marketing division would certainly be leaving. The entire duty of the division would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining regarding a cultural adjustment yet would certainly additionally need to verify herself in her brand-new function.

Inappropriate Management Style of Leader: Lewis's monitoring design and its incompatibility with the advertising and marketing department's function can additionally be seen as an OB challenge especially as she has actually been utilized to handling problems in the operations department where employees are shown to concentrate on procedures and also obtain them. The advertising department on the various other hand can be viewed as a team of people that are utilized to being nurtured by Krasnow that concentrated extra on outcome than processes.

Interdepartmental Disputes: Interdepartmental arguments between three departments, marketing, merchandizing and procedures specifically over the allotment of the marketing mix can be identified as another OB worry. The marketing department does not share the exact same vision as the other 2 departments regarding the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and also procedures departments do not agree over the marketing mix allowance among one another either.

Disintegration in Advertising And Marketing Department: Fragmentation between the marketing and advertising departments can be determined as one more OB concern which can require further interest. The reality that the advertising and marketing sections in the marketing department are separated is stopping both divisions from gaining from each various other's experience and also competence. Integration of advertising and marketing with merchandising as well as operations would certainly come to be harder if the marketing department itself is broken down which can be one more prospective OB issue.

Citicorp 1985 Analysis

Numerous concepts have been used to discuss the situations to obtain more clarity regarding the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many supervisors believe that juniors are easy as well as careless, have little passion and resist modification. The hard version of this concept stressed browbeating, limited controls, threats and punishments. In time it produces reduced efficiency, refined sabotage as well as rivalry (Bargain, 2003). Although the situation at Citicorp 1985 is not entirely adhering to Theory X, it can be seen that new hires are locating this setting instead difficult which might eventually bring about a higher disposition of the administration towards Theory X. According to McGregor's promoted sight, which he called Theory Y, the important task of the management is to arrange organizational problems to ensure that individuals can accomplish their very own goals best by guiding their efforts in the direction of business rewards. If people find no complete satisfaction in their job, the monitoring would certainly have little selection yet to rely upon theory X and exterior control (Bargain, 2003). Also while evaluating Lewis's monitoring style, concept X may have been suitable in the operations department somewhat but the Advertising department would require reliance on Concept Y in order to get the imagination and originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's problem regarding bringing harmony between the marketing and also advertising and marketing division is concerned, this would initially lead to clash as discussed by Bruce Tuckman in his 'Synergy Theory'. By combining the marketing and advertising and marketing division's job, there may be the exact same first detach which could lead to the 2nd phase of 'storming' where the groups challenge one another.

Bridges' Shift Design: Based On William Bridge's concept (appendix 4), people are quite uneasy with modification, which is noticeable by the scenario at Citicorp 1985 The situation can be viewed as a regular training course of life if is examined based on Bridge's theory where he discusses that individuals undergo three phases of transition when they experience adjustment. 'Closing, shedding as well as Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people exist with modification, they get in phase one therefore there may be emotions like despair, uncertainty, disappointment, rage, anxiety, denial and also disorientation.The circumstance at the advertising department of Citicorp 1985 is comparable so Lewis can obtain comfy with the idea that it is not remarkable actions. In the second stage, there might be a requirement to link the gap in between the new and also old culture so Lewis might have to face this challenge once Krasnow leaves. There might be low spirits and also low efficiency at this stage which should not be taken as a problem. It is during this phase that Lewis will certainly have to offer support to the division so that they can discover an orientation. It can be seen how Krasnow has actually already made this change easier by making Lewis obtain involved in the division a year prior to his actual separation. As per Bridges' Design, phase three will certainly cause openness to knowing, High power and also commitment as people will accept the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has discusses the value of 'safety and security requires as being a reduced degree requirement of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel secure and out of danger' is at the second degree of requirements. Prior to an employee can be made to create mentally, he requires to have his 'Physiological 'and 'Safety and security' requires met.

SWOT Analysis for Citicorp 1985 Case Study

Effects of Analysis.

The OB analysis has actually checked out different theories to comprehend exactly how to manage the current situation at hand. The following 3 choices have actually been proposed to assist Lewis deal with the business difficulties in the marketing division. Each of these options has been recommended for alleviating the shift required to bring the marketing division in accordance with the needs of the marketplace as well as for making the social modification that would adhere to once the present leader leaves.

Integration of advertising and marketing features. Separating Adverting and Manufacturing features. Assimilation of Marketing with Operations.

Examination of Alternatives.

Integration of Advertising And Marketing & Marketing Functions: The in-house advertising and marketing firm of Citicorp 1985 is currently strength for the organization in terms of conserving up on expenses connected to advertising and marketing and also promotion. Because no new recruitment has actually been done after Bridget Cole's departure with the coverage line being straight designated to Krasnow for the advertising and marketing function, this is a favorable opportunity for incorporating the marketing and advertising functions. Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merger days has expertise in business-to-business marketing in addition to firm as well as retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both advertising and marketing features.

The benefit of this method is that it will certainly integrate both functions while decreasing the demand for working with an added resource for marketing. In addition to this, Lewis would be heading the advertising division and all the same her replacement would be needed for the existing role that she is performing. The negative aspect of this alternative is that external hiring might cause animosity from inner workers that might be considering the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting as well as Production: Given the competitive pressures as well as top quality job called for from the advertising agency, it is suggested that Lewis ought to allow the production device to be a different function from the marketing device. Since the majority of ad agency had these two features as separate units, it makes even more feeling to comply with the standard. Both functions may be able to concentrate on their core turns on much more efficiently. However, the drawback of this technique would certainly be that extra expenses would certainly need to be birthed for establishing separate manufacturing features. A manufacturing head might have to be worked with which could increase overheads for the organization.

Combination of Marketing with Workflows: Considering that Lewis is currently taking care of the marketing and procedures departments simultaneously; it makes sense to incorporate the two features because she has actually been successfully taking treatment of both ends. The truth that Lewis has to adapt her management design for the advertising and marketing department recommends that these two divisions would certainly be culturally diverse.


An analysis of the three alternatives shows that integration of advertising and operations would certainly not be a feasible step due to the huge differences between the two divisions although that presently Lewis is managing both. While separation of the manufacturing feature may have been a positive step for the marketing department, the truth that it would indicate positioning a 3rd feature under Lewis's wing implies this need to be stayed clear of too. The combination of the marketing department is the very best choice in terms of getting the optimum results from the department. An action plan for this option is gone over below.

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

Advertising and Marketing features would be merged.

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

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

Lewis will certainly divide herself from operations.

An autonomous management style with staff member empowerment will be utilized in marketing department.

Open door plan as well as emphasis on cross departmental communication will certainly be focused on removing disharmony.

Backup plan.

If the integration does not exercise as intended, a contingency plan would certainly follow which would separate the manufacturing function from the advertising and marketing function to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising division without an SVP. Because case the production feature will certainly be separated by putting it under an SVP production.