Cypress Semiconductor 125% Convertible Notes Case Study Analysis


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Cypress Semiconductor 125% Convertible Notes Case Study Solution

Background and Facts

Cypress Semiconductor 125% Convertible Notes an office supplies seller for tiny and medium sized businesses has actually just recently been involved in preparing for a merging with its competitor House Deport, which has impacted performance levels in departmentswith the elderly manager associated with legal problems presented by the federal Profession Compensation. With the Advertising Head advancing the information of his departure from the company in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the role in the near future. With challenges in the form of a potential social modification and also low staff member spirits, the organization requires a total reengineering initiative at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective social adjustment at the advertising department of Cypress Semiconductor 125% Convertible Notes is enhancing uncertainty in the working environment resulting in different challenges for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting calculated choices considering that Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Profession Payment's intervention at the same time. Offered the fact that the store has a worldwide existence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries might be able to impact performance or critical objectives. Federal Profession Commission's antitrust match against the merging used up valuable time of the organization's elderly management suggesting that 'political' factors can have severe implications for an international business.

Economic Factors: Financial factors such as the introduction of small businesses in the international scenario recommend that Cypress Semiconductor 125% Convertible Notes is growing in a setting where there is possible development of businesses. Along with this, fact that shop clients are mostly looking for workplace materials for home offices suggests that the market has a rising fad of business owners and online businesses.

Social factors: Social trends in the economic climate reveal that customers are looking for benefit as well as appealing rates. Marketing research demonstrates how the client for Cypress Semiconductor 125% Convertible Notes lacks recognition about discovering solutions which can offer a combination of ease and also low costs.

Technological factors: Innovation plays an important duty in Cypress Semiconductor 125% Convertible Notes's service technique especially as the organization is piloting Technology centers which would use innovation sales and also support in the kind of memory upgrades, outer installations. (Recap of PEST in appendix 2).

OB Issues as well as Manifestations.

Several underlying Organizational Habits problems can be seen in Cypress Semiconductor 125% Convertible Notes's case as highlighted in this area.

Worries regarding social modification: There is uneasiness concerning a social modification that would certainly take place once Todd Krasnow leaves from his setting as the Executive Vice President of Advertising with a lot of the team member currently revealing discontent over this possible action. This predicted adjustment has actually produced stress in the work environment which has actually been coupled with the past stress and anxiety of preparing the company for a prospective merging with House Deport.
Pest Analysis
Demanding Job Environment for Newcomers: There is lack of employees that can match the difficult environment of a busy company. Not just does this cause trouble in finding the best people, it places tension on brand-new hires as can not hold up against the pace as well as pressure that the organization expects them to bear.

Double Coverage Lines: Beginners find this organizational culture difficult as well as hard to handle particularly as populated line partnerships are suggested to be weaker as a whole and also unbiased setup and efficiency examination is still done by the solid line supervisor. This indicates that newcomers can lose quality concerning their respective duties as well as goals especially as dotted line coverage does not maintain them in straight interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles even though it had actually been hypothesized that the last would take Krasnow's setting came as an impact to her spirits. Lewis may have been capable and ideal for the work yet the reality that Kransnow's separation would certainly make Coles a straight record to Lewis may have been the reason for Coles' resignation from solutions.

Fear & Task Insecurity: Worry and also insecurity can be identified as two major concerns that Lewis would be taking care of particularly as the merger has actually currently be terminated and 2 elderly execs of the marketing division would certainly be leaving. The entire responsibility of the division would be dropping on Lewis's shoulders that would certainly not simply be in charge of brining about a cultural adjustment however would certainly likewise have to show herself in her new role.

Incompatible Administration Style of Leader: Lewis's monitoring design as well as its incompatibility with the advertising and marketing department's function can additionally be seen as an OB difficulty particularly as she has been utilized to dealing with issues in the procedures division where personnel are taught to concentrate on processes and get them. 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 a lot more on output than procedures.

Interdepartmental Disagreements: Interdepartmental disputes in between three departments, advertising and marketing, merchandizing as well as procedures specifically over the allowance of the advertising and marketing mix can be identified as one more OB problem. Although the advertising and marketing department does not share the same vision as the other two divisions relating to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and operations departments do not agree over the marketing mix appropriation among each other either.

Fragmentation in Advertising And Marketing Department: Fragmentation in between the marketing and advertising departments can be recognized as one more OB problem which could require more focus. The reality that the advertising and marketing sections in the marketing division are detached is avoiding both divisions from obtaining from each various other's experience and also proficiency. Assimilation of advertising and marketing with retailing and operations would become harder if the advertising division itself is disintegrated which can be another prospective OB issue.

Cypress Semiconductor 125% Convertible Notes Analysis

Numerous concepts have actually been made use of to discuss the conditions to obtain additional clarity concerning the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers believe that subordinates are easy and also lazy, have little ambition and withstand change. The situation at Cypress Semiconductor 125% Convertible Notes is not completely adhering to Theory X, it can be seen that new hires are discovering this setting instead difficult which might at some point lead to a greater inclination of the management towards Theory X. Even while evaluating Lewis's monitoring design, theory X may have been ideal in the operations division to some degree but the Advertising department would require dependence on Concept Y in order to obtain the creative thinking as well as originality from the teams.

Tuckman's Synergy Concept: As much as Lewis's concern concerning bringing consistency in between the advertising and marketing and advertising division is concerned, this would originally lead to contrast as gone over by Bruce Tuckman in his 'Team effort Theory'. By incorporating the marketing and advertising and marketing division's job, there may be the very same initial disconnect which can lead to the 2nd phase of 'storming' where the teams test one another.

When people are offered with adjustment, they get in phase one as well as so there may be emotions like sadness, uncertainty, stress, anger, anxiety, rejection and also disorientation.The circumstance at the marketing department of Cypress Semiconductor 125% Convertible Notes is similar so Lewis can get comfy with the concept that it is not phenomenal habits. It is during this stage that Lewis will have to give guidance to the division so that they can discover a feeling of instructions. It can be seen how Krasnow has actually currently made this transition easier by making Lewis obtain involved in the division a year before his actual separation.
Vrio Analysis
Maslow's Need power structure: The OB issue related to insecurity at the workplace has been set off first of all by the change in monitoring and second of all by the fact that the merging will no longer be initiated. Abraham Maslow in his Concept of 'Requirements Pecking order' (appendix 5) has talks about the value of 'security requires as being a reduced degree requirement of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to feel safe and secure and also unharmed' is at the 2nd level of needs. Before a staff member can be made to develop mentally, he needs to have his 'Physiological 'as well as 'Security' requires met. This shows that unless the workers are made to feel protected about their present work standing in Cypress Semiconductor 125% Convertible Notes they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Cypress Semiconductor 125% Convertible Notes Case Study

Ramification of Analysis.

The OB analysis has actually looked at numerous theories to recognize how to manage the present situation available. The complying with three options have been recommended to aid Lewis manage the organizational challenges in the advertising and marketing division. Each of these alternatives has been recommended for easing the shift needed to bring the advertising division in line with the needs of the market as well as for making the social modification that would adhere to once the existing leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting as well as Production functions. Combination of Advertising with Operations.

Evaluation of Alternatives.

Judith Shapiro that 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 as well as retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both advertising and marketing as well as advertising features.

The benefit of this technique is that it will certainly incorporate the two features while minimizing the demand for working with an added resource for marketing. Lewis would certainly be heading the advertising department and in any kind of case her substitute would certainly be required for the present function that she is doing. The drawback of this option is that external hiring may cause bitterness from internal employees that might be considering the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and also Manufacturing: Offered the affordable pressures and top quality job called for from the ad agency, it is advised that Lewis ought to enable the production unit to be a different function from the marketing system. Given that most ad agency had these 2 features as different systems, it makes even more feeling to comply with the norm. Both functions may be able to focus on their core triggers a lot more effectively. The drawback of this method would certainly be that added prices would certainly have to be birthed for setting up separate production features. A manufacturing head may have to be employed which can raise expenses for the organization.

Assimilation of Marketing with Workflows: Because Lewis is already dealing with the marketing and also operations departments all at once; it makes sense to integrate the two features because she has been successfully dealing with both ends. The truth that the two divisions already have significant differences over appropriation of resources suggests that this combination may be able to produce consistency especially as Lewis would certainly be heading both ends.However there are different drawbacks of this relocation specifically as it would certainly place excessive worry over Lewis's shoulders. The fact that Lewis has to adapt her management design for the marketing department recommends that these two divisions would certainly be culturally varied. Lewis might not be able to use one kind of management design to both divisions which could result in inadequacy in either one of the 2 features.


An evaluation of the 3 choices suggests that integration of advertising as well as procedures would not be a practical relocation due to the huge differences between both divisions although that presently Lewis is handling both. While separation of the manufacturing feature may have been a favorable step for the advertising department, the reality that it would mean putting a third feature under Lewis's wing indicates this should be avoided too. The assimilation of the advertising department is the most effective option in regards to getting the optimal results from the division. An action plan for this option is talked about listed below.

Activity Strategy.
Lewis will certainly take control of the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

Manufacturing function will certainly remain component of marketing under advertising function.

Lewis will certainly separate herself from procedures.

A democratic management style with worker empowerment will certainly be used in advertising department.

Open up door policy and also emphasis on cross departmental communication will be aimed at eliminating dissonance.

Contingency strategy.

If the assimilation does not exercise as intended, a backup strategy would adhere to which would separate the production function from the advertising and marketing function to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising division without an SVP. Because case the production feature will certainly be separated by placing it under an SVP production.