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Citigroups Exchange Offer B Case Study Analysis

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Citigroups Exchange Offer B Case Study Analysis

Background and Facts

Citigroups Exchange Offer B an office products seller for tiny and also moderate sized services has actually lately been associated with planning for a merger with its rival Home Deport, which has actually influenced efficiency degrees in departmentswith the senior supervisor associated with lawful issues presented by the federal Trade Compensation. With the Marketing Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the near future. With obstacles in the kind of a prospective cultural modification as well as reduced employee morale, the company requires a full reengineering initiative at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The prospective social adjustment at the marketing division of Citigroups Exchange Offer B is enhancing uncertainty in the workplace leading to numerous 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 significant role in affecting calculated choices given that Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Trade Payment's treatment while doing so. Given the fact that the store has an international presence with branches in UK, USA, Canada and Germany, political consider each of these countries may have the ability to influence performance or strategic goals. Federal Trade Payment's antitrust match against the merging took up beneficial time of the organization's elderly management recommending that 'political' factors can have serious implications for a global business.

Economic Factors: Economic factors such as the introduction of small businesses in the international situation suggest that Citigroups Exchange Offer B is flourishing in an environment where there is prospective development of businesses. Along with this, truth that shop customers are mostly seeking office materials for home offices suggests that the market has a rising fad of business owners and also home based businesses.

Social factors: Social fads in the economic situation reveal that clients are seeking convenience along with appealing costs. Marketing research demonstrates how the consumer for Citigroups Exchange Offer B does not have understanding about locating remedies which can provide a mix of ease and affordable.

Technological factors: Technology plays a vital role in Citigroups Exchange Offer B's business approach specifically as the organization is piloting Technology centers which would provide technology sales and support in the kind of memory upgrades, peripheral setups. (Recap of PEST in appendix 2).

OB Issues and Manifestations.

Several underlying Business Behavior issues can be seen in Citigroups Exchange Offer B's case as highlighted in this area.

Apprehensions about social change: There is concern about a social modification that would take place when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with the majority of the staff members already revealing discontent over this prospective move. This expected adjustment has actually created stress in the workplace which has actually been combined with the past stress and anxiety of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is lack of employees that can match the stressful environment of a busy company. Not just does this bring about problem in discovering the ideal individuals, it places anxiety on brand-new hires as can not withstand the speed and pressure that the organization anticipates them to bear.

Double Coverage Lines: Newcomers locate this business culture cumbersome and difficult to manage especially as dotted line connections are implied to be weaker in general and also objective setting and efficiency examination is still done by the solid line manager. This means that newbies could shed clearness regarding their corresponding functions and objectives particularly as populated line coverage does not maintain 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 although it had actually been hypothesized that the latter would take Krasnow's position came as an impact to her spirits. Lewis may have been qualified and appropriate 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 solutions.

Worry & Work Instability: Fear and also instability can be determined as two significant issues that Lewis would be dealing with specifically as the merger has currently be cancelled as well as 2 elderly execs of the marketing division would be leaving. The entire obligation of the department would be falling on Lewis's shoulders who would not simply supervise of brining concerning a cultural adjustment but would certainly likewise have to verify herself in her brand-new function.

Incompatible Administration Design of Leader: Lewis's administration design and also its conflict with the advertising department's role can additionally be viewed as an OB challenge particularly as she has actually been made use of to taking care of problems in the procedures division where workers are instructed to concentrate on processes and also obtain them right. The advertising and marketing department on the various other hand can be viewed as a team of individuals that are utilized to being nurtured by Krasnow that focused a lot more on outcome than processes.

Interdepartmental Disagreements: Interdepartmental disagreements in between 3 divisions, advertising and marketing, merchandizing as well as operations specifically over the allowance of the advertising mix can be recognized as one more OB concern. The advertising department does not share the exact same vision as the various other two divisions concerning the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and procedures divisions do not agree over the advertising and marketing mix allowance among one another either.

Fragmentation in Advertising And Marketing Department: Fragmentation in between the advertising and marketing departments can be recognized as an additional OB concern which could need additional attention. The reality that the marketing and advertising sections in the advertising and marketing department are separated is avoiding both departments from getting from each other's experience and also experience. Integration of advertising with merchandising and also operations would come to be harder if the advertising and marketing department itself is degenerated which can be another prospective OB issue.

Citigroups Exchange Offer B Analysis

Different concepts have actually been utilized to discuss the situations to get further clearness about the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors think that juniors are passive and also careless, have little ambition and also withstand adjustment. The situation at Citigroups Exchange Offer B is not entirely adhering to Theory X, it can be seen that brand-new hires are discovering this atmosphere instead demanding which might at some point lead to a higher disposition of the management in the direction of Concept X. Also while evaluating Lewis's management design, theory X might have been ideal in the procedures department to some degree but the Advertising and marketing division would certainly call for reliance on Concept Y in order to get the imagination as well as originality from the teams.

Tuckman's Team effort Theory: As much as Lewis's worry regarding bringing harmony between the advertising and marketing and marketing division is worried, this would initially lead to clash as discussed by Bruce Tuckman in his 'Teamwork Theory'. By incorporating the advertising and also advertising department's work, there might be the very same initial separate which could lead to the second phase of 'storming' where the teams test one an additional.

When people are presented with modification, they enter phase one and also so there may be emotions like sadness, uncertainty, irritation, rage, concern, rejection and disorientation.The scenario at the marketing division of Citigroups Exchange Offer B is similar so Lewis can get comfortable with the idea that it is not amazing actions. It is throughout this stage that Lewis will certainly have to give advice to the division so that they can discover a feeling of instructions. It can be seen how Krasnow has actually already made this transition simpler by making Lewis obtain entailed in the department a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has goes over the relevance of 'safety and security needs as being a reduced level need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel safe and secure and also out of danger' is at the second level of needs. Before a staff member can be made to develop mentally, he needs to have his 'Physical 'and 'Safety' requires satisfied.

SWOT Analysis for Citigroups Exchange Offer B Case Study



Ramification of Analysis.

The OB analysis has actually looked at different concepts to understand how to deal with the present circumstance handy. The following 3 choices have been proposed to help Lewis deal with the organizational challenges in the advertising department. Each of these alternatives has been proposed for alleviating the transition required to bring the advertising department in line with the needs of the market as well as for making the social adjustment that would comply with as soon as the existing leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting and also Production functions. Assimilation of Advertising with Procedures.

Evaluation of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merger days has knowledge in business-to-business advertising and marketing along with firm as well as retail advertising experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both advertising and advertising and marketing features.

The benefit of this strategy is that it will integrate the two features while lowering the requirement for working with an added resource for advertising. Lewis would certainly be heading the advertising division and also in any kind of case her replacement would be required for the existing role that she is performing. The disadvantage of this option is that exterior hiring might cause animosity from interior workers that might be considering the placement of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and Production: Given the affordable stress as well as high top quality work needed from the marketing firm, it is suggested that Lewis ought to permit the production device to be a different feature from the advertising system. Since most advertising firms had these two functions as separate systems, it makes even more feeling to comply with the standard.

Assimilation of Marketing with Workflows: Considering that Lewis is currently caring for the advertising as well as operations departments at the same time; it makes good sense to integrate both functions because she has been effectively taking care of both ends. The fact that the two departments already have major distinctions over allotment of resources suggests that this integration may have the ability to produce consistency specifically as Lewis would be heading both ends.However there are various negative aspects of this move specifically as it would put excessive problem over Lewis's shoulders. The fact that Lewis needs to adapt her management design for the advertising and marketing department suggests that these two departments would be culturally diverse. Along with this, Lewis may not have the ability to apply one sort of management style to both divisions which can result in ineffectiveness in either one of the two features.

Referral.



An analysis of the three alternatives suggests that assimilation of advertising as well as procedures would certainly not be a viable step due to the huge distinctions in between the two departments despite the reality that presently Lewis is handling both. While separation of the production function may have been a favorable move for the advertising and marketing division, the reality that it would imply positioning a third feature under Lewis's wing means this should be prevented.

Action Strategy.
Recommendation
Lewis will certainly take over the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Manufacturing function will certainly stay part of advertising and marketing under marketing feature.

Lewis will certainly separate herself from procedures.

An autonomous leadership design with employee empowerment will certainly be used in advertising and marketing department.

Open up door policy as well as emphasis on cross departmental interaction will certainly be targeted at getting rid of dissonance.

Contingency plan.

If the assimilation does not work out as intended, a backup plan would comply with which would certainly divide the production function from the advertising and marketing feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising division without an SVP. Because case the manufacturing feature will absolutely be separated by putting it under an SVP production.