Corporate Governance The Jack Wright Series 2 Legal Obligations Of Directors Case Study Solution


Home >> Harvard >> Corporate Governance The Jack Wright Series 2 Legal Obligations Of Directors >>

Corporate Governance The Jack Wright Series 2 Legal Obligations Of Directors Case Study Solution

Background and Facts

Corporate Governance The Jack Wright Series 2 Legal Obligations Of Directors a workplace products retailer for little and average sized organisations has actually recently been associated with planning for a merging with its rival Residence Deport, which has influenced effectiveness levels in departmentswith the elderly supervisor involved in legal issues put forth by the federal Trade Compensation. With the Advertising Head advancing the information of his departure from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the role in the future. With obstacles in the kind of a possible social change as well as reduced worker spirits, the company is in need of a total reengineering effort at the marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective social change at the marketing division of Corporate Governance The Jack Wright Series 2 Legal Obligations Of Directors is raising unpredictability in the working environment leading to numerous challenges 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 significant role in impacting critical decisions since Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Trade Compensation's treatment while doing so. Offered the fact that the shop has a worldwide existence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries might have the ability to affect efficiency or critical objectives. Federal Profession Compensation's antitrust suit against the merger occupied valuable time of the company's elderly administration suggesting that 'political' factors can have significant effects for a global organisation.

Economic Factors: Economic factors such as the appearance of small businesses in the international circumstance suggest that Corporate Governance The Jack Wright Series 2 Legal Obligations Of Directors is prospering in an environment where there is prospective growth of services. Along with this, fact that store clients are primarily looking for workplace products for office suggests that the market has an increasing trend of entrepreneurs and home based businesses.

Social factors: Social trends in the economic climate reveal that clients are trying to find comfort in addition to eye-catching rates. Market research demonstrates how the consumer for Corporate Governance The Jack Wright Series 2 Legal Obligations Of Directors does not have understanding about discovering options which can use a combination of comfort and also low costs.

Technical factors: Innovation plays an important role in Corporate Governance The Jack Wright Series 2 Legal Obligations Of Directors's company method specifically as the organization is piloting Innovation centers which would certainly supply innovation sales and also assistance in the type of memory upgrades, peripheral installations. (Recap of INSECT in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Business Actions concerns can be seen in Corporate Governance The Jack Wright Series 2 Legal Obligations Of Directors's case as highlighted in this area.

Concerns about cultural modification: There is concern about a cultural adjustment that would certainly take place as soon as Todd Krasnow leaves from his position as the Exec Vice President of Marketing with most of the team member already showing unhappiness over this prospective relocation. This predicted change has produced tension in the work environment which has been paired with the past stress and anxiety of preparing the company for a possible merger with Home Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is scarcity of employees that can match the difficult setting of a busy company. Not only does this lead to trouble in locating the ideal individuals, it puts tension on brand-new hires as can not stand up to the pace as well as pressure that the organization expects them to birth.

Dual Coverage Lines: Novices find this organizational society difficult and tough to deal with specifically as dotted line relationships are implied to be weak as a whole as well as unbiased setup and efficiency analysis is still done by the strong line supervisor. This implies that beginners can shed clearness regarding their respective roles as well as purposes especially as populated line reporting 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 as opposed to Bridget Coles although it had actually been speculated that the last would certainly take Krasnow's placement came as a strike to her spirits. Lewis may have been capable and ideal for the job but the reality that Kransnow's departure would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Anxiety & Work Insecurity: Fear and instability can be determined as two major issues that Lewis would be managing particularly as the merging has currently be cancelled and also 2 elderly execs of the advertising and marketing department would certainly be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders who would certainly not just be in charge of brining regarding a social change however would certainly likewise need to verify herself in her brand-new function.

Inappropriate Monitoring Design of Leader: Lewis's administration style as well as its conflict with the advertising division's role can likewise be viewed as an OB obstacle particularly as she has actually been utilized to managing concerns in the procedures division where personnel are instructed to focus on processes and get them right. The advertising and marketing division on the various other hand can be viewed as a team of people that are used to being supported by Krasnow that focused much more on output than processes.

Interdepartmental Differences: Interdepartmental disagreements between three divisions, advertising, merchandizing as well as operations respectively over the allotment of the marketing mix can be identified as another OB issue. The advertising department does not share the same vision as the other 2 departments pertaining to the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing as well as procedures departments do not agree over the marketing mix allowance among one an additional either.

Fragmentation in Marketing Department: Disintegration in between the advertising and marketing divisions can be identified as an additional OB problem which might require additional interest. The fact that the marketing and advertising sections in the marketing department are disconnected is stopping both departments from gaining from each various other's experience and also know-how. Assimilation of advertising and marketing with merchandising and procedures would certainly become more difficult if the advertising department itself is disintegrated which can be one more possible OB concern.

Corporate Governance The Jack Wright Series 2 Legal Obligations Of Directors Analysis

Different concepts have been used to explain the scenarios to obtain additional clearness regarding the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers think that subordinates are easy and lazy, have little passion and also withstand adjustment. The circumstance at Corporate Governance The Jack Wright Series 2 Legal Obligations Of Directors is not entirely complying with Concept X, it can be seen that new hires are finding this atmosphere rather stressful which may ultimately lead to a better disposition of the monitoring in the direction of Concept X. Also while assessing Lewis's management design, concept X may have been appropriate in the procedures department to some extent but the Marketing department would certainly require dependence on Theory Y in order to get the imagination and creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's problem about bringing consistency between the advertising and marketing and also advertising division is worried, this would at first lead to conflict as discussed by Bruce Tuckman in his 'Synergy Theory'. By combining the marketing and marketing division's work, there may be the same first disconnect which might lead to the 2nd stage of 'storming' where the groups test one another.

When people are presented with adjustment, they enter phase one as well as so there might be feelings like despair, uncertainty, aggravation, anger, anxiety, rejection as well as disorientation.The scenario at the advertising and marketing department of Corporate Governance The Jack Wright Series 2 Legal Obligations Of Directors is similar so Lewis can get comfortable with the idea that it is not remarkable actions. It is throughout this phase that Lewis will certainly have to give assistance to the department so that they can discover a feeling of instructions. It can be seen exactly how Krasnow has actually already made this transition less complicated by making Lewis get included in the department a year before his real separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has talks about the importance of 'security requires as being a lower degree need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel secure and out of danger' is at the second level of demands. Prior to a staff member can be made to develop mentally, he requires to have his 'Physiological 'as well as 'Safety and security' requires fulfilled.

SWOT Analysis for Corporate Governance The Jack Wright Series 2 Legal Obligations Of Directors Case Study

Effects of Analysis.

The OB analysis has actually considered different theories to comprehend exactly how to deal with the present scenario handy. The adhering to three choices have actually been proposed to help Lewis take care of the business challenges in the advertising and marketing department. Each of these options has been proposed for reducing the shift needed to bring the advertising and marketing department in line with the demands of the market as well as for making the social modification that would adhere to once the existing leader leaves.

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

Evaluation of Alternatives.

Combination of Marketing & Advertising Functions: The internal advertising agency of Corporate Governance The Jack Wright Series 2 Legal Obligations Of Directors is already toughness for the company in terms of conserving up on expenses related to advertising and marketing and also promotion. Since no brand-new employment has actually been done after Bridget Cole's separation with the reporting line being straight appointed to Krasnow for the advertising and marketing feature, this is a desirable opportunity for integrating the advertising and marketing features. Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merger days has competence in business-to-business marketing in addition to company and also retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both marketing and advertising features.

The advantage of this strategy is that it will integrate both functions while decreasing the demand for employing an extra source for advertising. In addition to this, Lewis would certainly be heading the advertising and marketing division and also regardless her substitute would be required for the current role that she is performing. The drawback of this option is that exterior hiring may cause bitterness from internal employees who may be looking at the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Manufacturing: Provided the competitive stress as well as excellent quality work required from the advertising agency, it is recommended that Lewis needs to enable the production device to be a separate function from the marketing unit. Because a lot of advertising agencies had these 2 features as different units, it makes even more feeling to adhere to the norm. Along with this, both features might have the ability to concentrate on their core activates a lot more efficiently. The disadvantage of this technique would be that added expenses would have to be borne for setting up separate manufacturing functions. Along with this, a manufacturing head might have to be employed which might boost expenses for the organization.

Integration of Marketing with Procedures: Considering that Lewis is already dealing with the marketing and also procedures divisions concurrently; it makes sense to integrate the two functions given that she has actually been effectively looking after both ends. The truth that the two departments already have significant differences over appropriation of sources suggests that this integration might have the ability to cause harmony specifically as Lewis would certainly be heading both ends.However there are various downsides of this move particularly as it would place way too much concern over Lewis's shoulders. The fact that Lewis has to adjust her management design for the advertising division recommends that these two divisions would certainly be culturally diverse. Along with this, Lewis may not have the ability to apply one type of leadership design to both departments which might result in inefficiency in either among both functions.


An evaluation of the three options suggests that assimilation of marketing as well as procedures would certainly not be a feasible action because of the substantial distinctions between the two departments despite the fact that currently Lewis is dealing with both. While separation of the manufacturing feature might have been a desirable move for the advertising and marketing department, the truth that it would certainly imply putting a third function under Lewis's wing suggests this must be stayed clear of also. The combination of the advertising and marketing division is the best choice in terms of obtaining the ideal arise from the division. An action prepare for this choice is talked about below.

Activity Strategy.
Lewis will certainly take control of the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be combined.

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

Production function will remain part of marketing under advertising feature.

Lewis will separate herself from procedures.

A democratic management style with staff member empowerment will be utilized in marketing department.

Open door plan and focus on cross department communication will certainly be focused on eliminating dissonance.

Backup plan.

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