Daktronics E Dividend Policy In 2010 Case Study Help


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Daktronics E Dividend Policy In 2010 Case Study Solution

Background and Facts

Daktronics E Dividend Policy In 2010 an office products retailer for little and moderate sized businesses has actually just recently been involved in planning for a merging with its competitor Residence Deport, which has actually impacted efficiency degrees in departmentswith the senior manager involved in lawful issues put forth by the government Trade Compensation. With the Advertising Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the future. With challenges in the type of a potential social modification as well as low worker morale, the company wants a total reengineering effort at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural adjustment at the advertising department of Daktronics E Dividend Policy In 2010 is enhancing unpredictability in the working environment bring about numerous difficulties 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 significant function in impacting calculated choices since Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Trade Commission's intervention while doing so. Given the reality that the shop has an international existence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries might have the ability to impact efficiency or critical objectives. Federal Trade Compensation's antitrust match versus the merging used up beneficial time of the organization's senior monitoring suggesting that 'political' factors can have serious implications for an international business.

Economic Factors: Financial factors such as the appearance of local business in the worldwide situation recommend that Daktronics E Dividend Policy In 2010 is prospering in an atmosphere where there is potential development of companies. Fact that store clients are mainly looking for office supplies for residence workplaces recommends that the market has a climbing trend of business owners and also residence based organisations.

Social factors: Social patterns in the economic climate reveal that customers are searching for comfort as well as eye-catching rates. Marketing research shows how the consumer for Daktronics E Dividend Policy In 2010 does not have recognition regarding finding remedies which can use a combination of comfort as well as affordable.

Technical factors: Technology plays an important function in Daktronics E Dividend Policy In 2010's company strategy particularly as the company is piloting Technology facilities which would certainly supply modern technology sales and also assistance in the form of memory upgrades, outer installments. (Summary of PARASITE in appendix 2).

OB Issues and Symptoms.

Numerous underlying Organizational Actions problems can be seen in Daktronics E Dividend Policy In 2010's case as highlighted in this section.

Concerns regarding cultural change: There is uneasiness concerning a cultural modification that would take place as soon as Todd Krasnow leaves from his setting as the Executive Vice President of Advertising And Marketing with the majority of the employee already revealing unhappiness over this potential move. This expected modification has created stress and anxiety in the work environment which has been coupled with the previous tension of preparing the firm for a potential merger with House Deport.
Pest Analysis
Demanding Job Environment for Newcomers: There is scarcity of personnel that can match the stressful environment of a hectic company. Not only does this lead to trouble in finding the right people, it places anxiety on new hires as can not endure the speed and also stress that the company anticipates them to bear.

Twin Reporting Lines: Beginners find this business society troublesome and also tough to deal with specifically as populated line connections are meant to be weaker as a whole and unbiased setup and also efficiency assessment is still done by the solid line manager. This implies that novices can lose clarity about their corresponding duties and also goals especially as populated line coverage does not keep them in direct communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been hypothesized that the latter would certainly take Krasnow's position came as a blow to her morale. Lewis might have been qualified and also ideal for the job but the truth that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Task Insecurity: Anxiety and insecurity can be recognized as 2 significant issues that Lewis would be handling especially as the merging has currently be cancelled and also 2 elderly execs of the marketing department would certainly be leaving. The entire obligation of the department would certainly be dropping on Lewis's shoulders who would certainly not just be in charge of brining concerning a social change yet would additionally have to prove herself in her new function.

Incompatible Management Style of Leader: Lewis's administration design as well as its conflict with the marketing division's duty can additionally be viewed as an OB difficulty particularly as she has actually been utilized to managing issues in the operations department where personnel are shown to concentrate on procedures and also get them right. The advertising division on the various other hand can be viewed as a group of people who are made use of to being supported by Krasnow that concentrated extra on outcome than procedures.

Interdepartmental Disputes: Interdepartmental disagreements between three departments, advertising, merchandizing as well as procedures respectively over the allowance of the advertising mix can be recognized as another OB worry. The advertising and marketing division does not share the exact same vision as the various other two divisions relating to the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and also procedures departments do not concur over the advertising and marketing mix allotment among one an additional either.

Fragmentation in Marketing Division: Disintegration between the marketing and advertising departments can be determined as an additional OB issue which can need more interest. The fact that the marketing and advertising areas in the marketing department are disconnected is protecting against both divisions from acquiring from each various other's experience as well as proficiency. Combination of marketing with retailing and also operations would certainly end up being more difficult if the advertising and marketing department itself is degenerated which can be another possible OB worry.

Daktronics E Dividend Policy In 2010 Analysis

Numerous theories have actually been used to explain the situations to get further clarity about the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers think that staffs are passive and careless, have little ambition as well as resist modification. The hard variation of this concept stressed coercion, limited controls, threats and punishments. In time it generates low efficiency, refined sabotage and competition (Deal, 2003). Although the circumstance at Daktronics E Dividend Policy In 2010 is not completely complying with Concept X, it can be seen that brand-new hires are discovering this atmosphere rather stressful which may eventually lead to a greater disposition of the monitoring towards Theory X. As per McGregor's supported view, which he called Theory Y, the necessary task of the monitoring is to prepare business conditions so that people can achieve their very own objectives best by directing their efforts towards business incentives. If people find no satisfaction in their job, the monitoring would have little selection but to rely on concept X as well as outside control (Bargain, 2003). Also while assessing Lewis's administration design, concept X might have been suitable in the procedures division somewhat however the Advertising department would certainly need dependence on Theory Y so as to get the creativity and also creativity from the groups.

Tuckman's Teamwork Theory: As for Lewis's issue concerning bringing consistency between the marketing and advertising division is concerned, this would initially result in clash as reviewed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). Based on Tuckman's theory displayed in appendix 3, during the preliminary stage of team development, people may not bond, as they are hectic discovering their location in the group. By combining the marketing and advertising division's work, there may be the same initial separate which might bring about the second stage of 'storming' where the teams challenge each other. Nevertheless, it is only throughout the third phase or 'norming' when they would certainly integrate to share concepts before the team can bring about harmony in the fourth stage 'performing'.

When individuals are provided with change, they enter phase one as well as so there might be emotions like sadness, unpredictability, irritation, rage, anxiety, rejection as well as disorientation.The circumstance at the marketing division of Daktronics E Dividend Policy In 2010 is comparable so Lewis can obtain comfy with the suggestion that it is not remarkable behavior. It is during this phase that Lewis will certainly have to offer assistance to the department so that they can locate a sense of direction. It can be seen just how Krasnow has currently made this change simpler by making Lewis obtain involved in the division a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has goes over the value of 'safety and security requires as being a lower level demand of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel secure as well as out of threat' is at the second level of demands. Before an employee can be made to create psychologically, he needs to have his 'Physiological 'as well as 'Safety and security' requires satisfied.

SWOT Analysis for Daktronics E Dividend Policy In 2010 Case Study

Implication of Analysis.

The OB analysis has considered different theories to comprehend how to cope with the existing situation available. The following 3 alternatives have actually been recommended to assist Lewis handle the business challenges in the advertising and marketing department. Each of these options has actually been suggested for relieving the transition required to bring the marketing division in line with the needs of the marketplace as well as for making the cultural modification that would certainly comply with when the current leader leaves.

Combination of advertising and marketing functions. Separating Adverting as well as Manufacturing functions. Combination of Marketing with Workflow.

Assessment of Alternatives.

Integration of Advertising And Marketing & Marketing Functions: The internal marketing agency of Daktronics E Dividend Policy In 2010 is currently toughness for the company in terms of saving up on overheads related to marketing and promotion. Given that no new recruitment has actually been done after Bridget Cole's departure with the coverage line being straight appointed to Krasnow for the advertising feature, this is a positive chance for integrating the marketing and advertising functions. Judith Shapiro who has earlier been talked to by Lewis during the earlier merging days has experience in business-to-business advertising together with agency and retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing functions.

The advantage of this approach is that it will certainly incorporate the two features while decreasing the need for working with an additional source for advertising. Lewis would be heading the advertising division as well as in any case her substitute would certainly be required for the existing role that she is executing. The disadvantage of this option is that exterior hiring may cause bitterness from interior employees who might be eying the placement of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting as well as Manufacturing: Given the affordable stress and high quality job called for from the advertising and marketing firm, it is suggested that Lewis needs to allow the manufacturing device to be a separate function from the advertising and marketing device. Given that a lot of marketing firms had these two functions as different systems, it makes even more feeling to follow the standard.

Integration of Advertising And Marketing with Procedures: Considering that Lewis is already dealing with the advertising and also operations departments all at once; it makes sense to incorporate the two functions because she has actually been successfully caring for both ends. The truth that both departments already have major differences over allotment of resources suggests that this assimilation might be able to produce consistency especially as Lewis would certainly be heading both ends.However there are numerous disadvantages of this relocation specifically as it would put too much worry over Lewis's shoulders. The fact that Lewis needs to adjust her monitoring style for the advertising department recommends that these 2 departments would be culturally diverse. Lewis may not be able to use one kind of management design to both divisions which can result in inadequacy in either one of the two functions.


An assessment of the 3 options suggests that assimilation of advertising and marketing and operations would certainly not be a possible step as a result of the huge distinctions between both divisions despite the fact that currently Lewis is dealing with both. While splitting up of the production function might have been a beneficial step for the advertising division, the fact that it would certainly suggest positioning a third function under Lewis's wing implies this ought to be prevented as well. The assimilation of the advertising and marketing division is the very best alternative in regards to obtaining the optimum results from the division. An activity plan for this choice is talked about listed below.

Action Strategy.
Lewis will certainly take control of the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

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

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

Lewis will certainly divide herself from procedures.

An autonomous leadership design with staff member empowerment will certainly be made use of in advertising and marketing department.

Open door policy and focus on cross departmental interaction will be aimed at eliminating dissonance.

Backup strategy.

If the assimilation does not exercise as intended, a contingency strategy would certainly adhere to which would separate the manufacturing function from the advertising and marketing feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the advertising and marketing department without an SVP. Because case the production function will most definitely be divided by putting it under an SVP manufacturing.