Cypress Semiconductor 125% Convertible Notes Case Study Solution


Home >> Harvard >> Cypress Semiconductor 125% Convertible Notes >>

Cypress Semiconductor 125% Convertible Notes Case Study Solution

Background and Facts

Cypress Semiconductor 125% Convertible Notes an office materials seller for tiny and average sized organisations has lately been associated with preparing for a merging with its rival Residence Deport, which has influenced effectiveness levels in departmentswith the senior manager involved in legal difficulties presented by the federal Trade Commission. With the Marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the function in the future. With challenges in the type of a prospective social change and reduced employee spirits, the company requires a full reengineering effort at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural change at the marketing department of Cypress Semiconductor 125% Convertible Notes is boosting unpredictability in the workplace resulting in numerous challenges for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing tactical choices considering that Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Trade Payment's treatment in the process. Offered the truth that the store has a global existence with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries may be able to influence performance or calculated goals. Federal Trade Commission's antitrust fit against the merging took up beneficial time of the organization's elderly monitoring suggesting that 'political' factors can have major implications for a worldwide company.

Economic Factors: Economic factors such as the emergence of small businesses in the worldwide scenario suggest that Cypress Semiconductor 125% Convertible Notes is flourishing in a setting where there is possible growth of companies. In addition to this, truth that shop customers are mostly looking for workplace supplies for home offices recommends that the marketplace has a rising fad of business owners and home services.

Social factors: Social fads in the economic climate show that clients are searching for benefit along with eye-catching prices. Marketing research shows how the client for Cypress Semiconductor 125% Convertible Notes lacks recognition regarding discovering solutions which can use a combination of benefit and inexpensive.

Technological factors: Innovation plays a vital duty in Cypress Semiconductor 125% Convertible Notes's service approach specifically as the company is piloting Technology facilities which would offer modern technology sales and support in the form of memory upgrades, outer setups. (Recap of PEST in appendix 2).

OB Issues and Symptoms.

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

Worries concerning cultural adjustment: There is uneasiness concerning a cultural change that would occur when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising And Marketing with a lot of the personnel currently showing discontent over this potential relocation. This expected modification has produced anxiety in the office which has been coupled with the past stress of preparing the firm for a potential merger with House Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is shortage of workers that can match the demanding setting of a hectic company. Not only does this bring about trouble in finding the right people, it puts anxiety on new hires as can not hold up against the rate as well as stress that the organization expects them to bear.

Dual Coverage Lines: Beginners discover this business society difficult as well as hard to handle specifically as populated line partnerships are meant to be weak generally and also objective setup and efficiency assessment is still done by the strong line supervisor. This means that newcomers can shed quality about their corresponding roles and also goals especially as dotted line reporting does not maintain them in direct communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been speculated that the last would take Krasnow's placement came as an impact to her spirits. Lewis might have been capable and also ideal for the task but the reality that Kransnow's departure would make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Task Instability: Fear and also insecurity can be determined as 2 major problems that Lewis would be managing particularly as the merger has currently be terminated and also two senior execs of the advertising department would certainly be leaving. The whole responsibility of the department would be dropping on Lewis's shoulders who would not simply supervise of brining concerning a cultural adjustment however would likewise have to prove herself in her brand-new duty.

Incompatible Administration Style of Leader: Lewis's management style as well as its conflict with the advertising department's role can also be seen as an OB challenge especially as she has been made use of to handling concerns in the procedures division where workers are taught to focus on processes as well as obtain them. The marketing division on the other hand can be seen as a group of individuals who are used to being supported by Krasnow that focused much more on outcome than processes.

Interdepartmental Arguments: Interdepartmental differences between 3 divisions, advertising, merchandizing as well as procedures respectively over the allocation of the advertising and marketing mix can be recognized as one more OB issue. Although the marketing division does not share the very same vision as the various other two divisions concerning the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and procedures divisions do not agree over the marketing mix appropriation among each other either.

Fragmentation in Advertising And Marketing Division: Disintegration in between the marketing and advertising departments can be recognized as another OB issue which could need additional focus. The reality that the marketing and advertising areas in the marketing division are disconnected is avoiding both divisions from obtaining from each other's experience and expertise. Combination of marketing with retailing and operations would certainly end up being more difficult if the marketing division itself is broken down which can be an additional prospective OB problem.

Cypress Semiconductor 125% Convertible Notes Analysis

Different concepts have actually been used to clarify the circumstances to get further quality about the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors believe that subordinates are passive and careless, have little ambition as well as withstand adjustment. The scenario at Cypress Semiconductor 125% Convertible Notes is not completely complying with Concept X, it can be seen that brand-new hires are locating this atmosphere instead demanding which might at some point lead to a better inclination of the administration in the direction of Concept X. Even while analyzing Lewis's monitoring style, theory X may have been appropriate in the operations department to some extent however the Advertising and marketing division would certainly require dependence on Concept Y in order to get the imagination and also creativity from the groups.

Tuckman's Synergy Concept: As far as Lewis's concern concerning bringing consistency in between the marketing and advertising department is concerned, this would originally result in contrast as discussed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, during the initial phase of team advancement, individuals might not bond, as they are active finding their location in the team. By combining the advertising and marketing department's work, there might coincide preliminary disconnect which might bring about the second phase of 'storming' where the groups test one another. Nevertheless, it is just during the third stage or 'norming' when they would collaborate to share suggestions prior to the team can cause synergy in the 4th stage 'executing'.

When people are presented with modification, they enter phase one and so there may be emotions like unhappiness, uncertainty, irritation, rage, fear, rejection and disorientation.The situation at the advertising division of Cypress Semiconductor 125% Convertible Notes is similar so Lewis can obtain comfortable with the suggestion that it is not remarkable behavior. It is throughout this phase that Lewis will have to provide support to the department so that they can find a sense of direction. It can be seen how Krasnow has actually already made this shift much easier by making Lewis get involved in the department a year prior to his actual departure.
Vrio Analysis
Maslow's Demand pecking order: The OB problem related to insecurity at the office has actually been activated first of all by the change in management and second of all by the truth that the merger will no more be initiated. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has goes over the importance of 'protection requires as being a reduced level demand of a human for causing inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to really feel safe and secure and untouched' is at the second degree of demands. Before an employee can be made to establish psychologically, he requires to have his 'Physiological 'as well as 'Safety' requires satisfied. This shows that unless the personnel are made to feel safe regarding their existing employment standing in Cypress Semiconductor 125% Convertible Notes they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Cypress Semiconductor 125% Convertible Notes Case Study

Ramification of Analysis.

The OB analysis has looked at numerous concepts to understand how to handle the present scenario at hand. The complying with three options have actually been suggested to aid Lewis handle the organizational challenges in the advertising and marketing division. Each of these options has been suggested for reducing the shift required to bring the advertising and marketing department in accordance with the needs of the market and also for making the social adjustment that would certainly follow as soon as the current leader leaves.

Assimilation of advertising and marketing functions. Dividing Adverting and also Manufacturing features. Assimilation of Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merger days has know-how in business-to-business marketing along with firm and also retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to manage both marketing as well as advertising and marketing functions.

The advantage of this technique is that it will certainly integrate the two features while decreasing the need for working with an extra source for marketing. In addition to this, Lewis would be heading the advertising and marketing division as well as in any case her replacement would certainly be required for the present duty that she is carrying out. The drawback of this choice is that outside hiring might bring about resentment from inner workers that may be eying the placement of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Manufacturing: Offered the affordable stress as well as high quality job needed from the marketing firm, it is suggested that Lewis ought to enable the manufacturing system to be a separate function from the advertising and marketing unit. Considering that the majority of advertising and marketing firms had these two features as separate units, it makes even more sense to adhere to the standard.

Assimilation of Marketing with Workflows: Given that Lewis is currently dealing with the marketing and procedures departments concurrently; it makes good sense to integrate the two features considering that she has been effectively taking care of both ends. The fact that both divisions already have significant differences over appropriation of sources suggests that this combination might have the ability to produce consistency particularly as Lewis would be heading both ends.However there are different downsides of this step especially as it would certainly put too much worry over Lewis's shoulders. The truth that Lewis needs to adjust her monitoring design for the advertising and marketing division suggests that these 2 departments would be culturally varied. In addition to this, Lewis may not have the ability to apply one type of leadership style to both divisions which can lead to inadequacy in either among both features.


An analysis of the three choices shows that integration of advertising and also operations would not be a viable action because of the large distinctions in between the two divisions despite the fact that presently Lewis is dealing with both. While splitting up of the production function may have been a desirable relocation for the advertising department, the reality that it would certainly imply putting a 3rd function under Lewis's wing indicates this ought to be prevented also. The combination of the advertising and marketing division is the most effective option in regards to getting the optimal results from the department. An activity plan for this choice is talked about below.

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

Advertising and Marketing features would be merged.

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

Production function will continue to be component of advertising under advertising function.

Lewis will divide herself from procedures.

An autonomous management style with worker empowerment will certainly be utilized in marketing department.

Open up door policy as well as focus on cross department interaction will be focused on eliminating discord.

Contingency strategy.

If the combination does not exercise as intended, a contingency strategy would adhere to which would certainly separate the production function from the advertising and marketing feature to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the manufacturing function will definitely be divided by positioning it under an SVP manufacturing.