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Citigroups Shareholder Tango In Brazil A Case Study Solution

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Citigroups Shareholder Tango In Brazil A Case Study Analysis

Background and Facts

Citigroups Shareholder Tango In Brazil A an office supplies retailer for tiny and also average sized services has actually lately been associated with planning for a merger with its competitor House Deport, which has actually impacted efficiency levels in departmentswith the senior supervisor associated with lawful complications presented by the federal Trade Commission. With the Advertising Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the current head of operations has actually been asked to take the duty in the near future. With obstacles in the kind of a potential social adjustment as well as low employee spirits, the company is in need of a complete reengineering effort at the marketing department.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural adjustment at the marketing department of Citigroups Shareholder Tango In Brazil A is boosting unpredictability in the working environment bring about numerous obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting strategic decisions since Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Profession Compensation's intervention in the process. Offered the fact that the store has a worldwide visibility with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these countries may have the ability to affect performance or strategic objectives. Federal Profession Payment's antitrust fit against the merger used up important time of the company's senior administration suggesting that 'political' factors can have severe ramifications for a global business.

Economic Factors: Economic factors such as the introduction of small businesses in the worldwide situation recommend that Citigroups Shareholder Tango In Brazil A is flourishing in a setting where there is possible development of companies. Fact that shop clients are mainly looking for workplace products for house offices recommends that the market has a climbing pattern of business owners as well as house based companies.

Social factors: Social trends in the economy reveal that clients are searching for comfort along with eye-catching rates. Market research demonstrates how the consumer for Citigroups Shareholder Tango In Brazil A does not have understanding about discovering remedies which can offer a mix of ease and low costs.

Technical factors: Technology plays an important function in Citigroups Shareholder Tango In Brazil A's service method specifically as the organization is piloting Technology facilities which would certainly offer modern technology sales and support in the kind of memory upgrades, peripheral setups. (Recap of PEST in appendix 2).

OB Issues as well as Effects.

Several underlying Business Behavior problems can be seen in Citigroups Shareholder Tango In Brazil A's case as highlighted in this section.

Uneasiness about social modification: There is uneasiness about a cultural change that would occur as soon as Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with most of the staff members already revealing discontent over this possible step. This expected adjustment has actually produced stress and anxiety in the office which has actually been paired with the past anxiety of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is lack of personnel that can match the stressful environment of a busy organization. Not just does this bring about difficulty in locating the appropriate people, it places stress on new hires as can not hold up against the speed and pressure that the organization expects them to bear.

Twin Reporting Lines: Newbies find this organizational society cumbersome as well as tough to handle especially as dotted line connections are indicated to be weaker in general as well as unbiased setting and also efficiency examination is still done by the solid line manager. This means that newbies could lose quality concerning their corresponding functions and also objectives especially as populated line coverage does not keep them in direct communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had actually been guessed that the latter would certainly take Krasnow's placement came as a blow to her spirits. Lewis may have been capable and also ideal for the job yet the reality that Kransnow's departure would make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.

Worry & Job Insecurity: Anxiety and instability can be identified as 2 major problems that Lewis would be taking care of particularly as the merger has actually currently be cancelled and two elderly execs of the marketing division would be leaving. The whole responsibility of the department would be dropping on Lewis's shoulders who would not simply supervise of brining concerning a social modification however would likewise have to prove herself in her new function.

Incompatible Management Style of Leader: Lewis's management design and its incompatibility with the advertising department's function can also be seen as an OB difficulty especially as she has actually been utilized to handling problems in the procedures department where workers are educated to concentrate on procedures and also get them. The marketing department on the various other hand can be viewed as a group of individuals that are used to being supported by Krasnow that concentrated more on result than processes.

Interdepartmental Disputes: Interdepartmental arguments between 3 divisions, advertising and marketing, merchandizing as well as operations respectively over the allotment of the marketing mix can be recognized as an additional OB concern. Although the marketing division does not share the very same vision as the various other 2 divisions concerning the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing as well as procedures departments do not agree over the marketing mix allowance amongst one another either.

Fragmentation in Advertising Department: Fragmentation in between the advertising and marketing divisions can be recognized as one more OB concern which could require more focus. The fact that the marketing and advertising sections in the marketing division are disconnected is preventing both divisions from obtaining from each various other's experience as well as proficiency. Assimilation of advertising with retailing and operations would certainly come to be more difficult if the advertising and marketing division itself is broken down which can be an additional potential OB concern.

Citigroups Shareholder Tango In Brazil A Analysis

Numerous concepts have actually been made use of to describe the situations to get more quality regarding the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that subordinates are passive and careless, have little ambition and withstand change. The difficult version of this concept stressed browbeating, tight controls, dangers as well as punishments. With time it produces reduced efficiency, refined sabotage as well as competition (Deal, 2003). The circumstance at Citigroups Shareholder Tango In Brazil A is not entirely adhering to Concept X, it can be seen that brand-new hires are finding this setting rather difficult which may at some point lead to a better disposition of the management in the direction of Theory X. As per McGregor's promoted sight, which he called Concept Y, the important task of the management is to organize organizational problems to ensure that individuals can accomplish their own objectives best by guiding their initiatives in the direction of business incentives. If individuals discover no satisfaction in their job, the management would certainly have little choice however to count on theory X as well as external control (Deal, 2003). Even while analyzing Lewis's administration style, theory X might have appropriated in the procedures division to some extent however the Marketing department would need reliance on Theory Y in order to get the imagination and creativity from the groups.

Tuckman's Team effort Theory: As much as Lewis's issue regarding bringing consistency between the marketing and also advertising division is worried, this would originally lead to conflict as gone over by Bruce Tuckman in his 'Teamwork Concept'. By integrating the marketing and advertising and marketing department's work, there might be the exact same initial detach which can lead to the second stage of 'storming' where the groups test one another.

Bridges' Shift Model: Based On William Bridge's theory (appendix 4), people are rather awkward with modification, which is evident by the circumstance at Citigroups Shareholder Tango In Brazil A The scenario can be seen as a typical course of life if is examined based on Bridge's concept where he discusses that people undergo three phases of transition when they experience adjustment. 'Ending, losing and also Releasing', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people are presented with adjustment, they enter phase one and so there might be feelings like sadness, uncertainty, frustration, temper, anxiety, denial and disorientation.The scenario at the advertising division of Citigroups Shareholder Tango In Brazil A is comparable so Lewis can get comfortable with the suggestion that it is not phenomenal habits. In the second phase, there might be a demand to bridge the space in between the brand-new and old culture so Lewis might need to face this ordeal once Krasnow leaves. There might be reduced spirits as well as low efficiency at this phase which must not be taken as a setback. It is throughout this stage that Lewis will certainly need to provide support to the division so that they can discover an orientation. It can be seen how Krasnow has already made this change much easier by making Lewis obtain associated with the department a year before his actual separation. Based on Bridges' Version, phase three will certainly cause visibility to knowing, High energy as well as dedication as individuals will welcome the change (Bridges, 2004).
Vrio Analysis
Maslow's Need pecking order: The OB problem pertaining to insecurity at the workplace has been activated first of all by the adjustment in monitoring and secondly by the fact that the merger will certainly no more be launched. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has discusses the value of 'security needs as being a lower level demand of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the need to really feel protected as well as out of danger' is at the 2nd level of demands. Before an employee can be made to develop mentally, he requires to have his 'Physical 'and also 'Safety' requires fulfilled. This suggests that unless the workers are made to feel safe and secure regarding their existing work status in Citigroups Shareholder Tango In Brazil A they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Citigroups Shareholder Tango In Brazil A Case Study



Ramification of Analysis.

The OB analysis has actually checked out various theories to understand just how to deal with the existing situation available. The adhering to three choices have actually been suggested to help Lewis take care of the organizational difficulties in the marketing department. Each of these alternatives has been proposed for relieving the shift required to bring the advertising division in line with the demands of the market and also for making the social change that would adhere to once the existing leader leaves.

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

Assessment of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merger days has knowledge in business-to-business advertising and marketing along with company and retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to handle both advertising and advertising features.

The advantage of this technique is that it will certainly incorporate the two features while minimizing the demand for working with an additional resource for marketing. In addition to this, Lewis would certainly be heading the advertising and marketing division and also in any case her replacement would be needed for the present function that she is doing. The negative aspect of this alternative is that exterior hiring might produce animosity from internal personnel that may be looking at the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Manufacturing: Provided the competitive stress and high quality job required from the ad agency, it is recommended that Lewis must allow the manufacturing unit to be a different function from the marketing device. Considering that many advertising agencies had these two features as separate units, it makes even more sense to adhere to the norm. In addition to this, both functions might have the ability to focus on their core activates more successfully. The drawback of this technique would be that additional prices would have to be borne for setting up separate production features. In addition to this, a production head might need to be worked with which could raise expenses for the company.

Assimilation of Advertising And Marketing with Operations: Considering that Lewis is currently taking treatment of the advertising and procedures divisions concurrently; it makes feeling to integrate the two functions given that she has actually been successfully taking care of both ends. The fact that Lewis has to adapt her monitoring style for the advertising department recommends that these two departments would be culturally diverse.

Recommendation.



An analysis of the 3 alternatives shows that combination of advertising as well as operations would certainly not be a feasible move due to the huge distinctions in between the two divisions despite the fact that presently Lewis is dealing with both. While separation of the manufacturing function might have been a favorable move for the marketing department, the truth that it would suggest placing a third feature under Lewis's wing implies this should be avoided as well. The combination of the advertising and marketing division is the very best option in terms of getting the optimum results from the department. An activity plan for this option is gone over below.

Action Plan.
Recommendation
Lewis will take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

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

Lewis will certainly divide herself from procedures.

An autonomous leadership style with worker empowerment will certainly be made use of in marketing department.

Open door plan as well as focus on cross department communication will be focused on removing disharmony.

Backup strategy.

If the integration does not exercise as prepared, a backup strategy would follow which would separate the manufacturing feature from the advertising function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the manufacturing feature will absolutely be separated by placing it under an SVP production.