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Deferred Taxes And The Valuation Allowance At Lucent Technologies Inc A Case Study Solution

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Background and Facts

Deferred Taxes And The Valuation Allowance At Lucent Technologies Inc A an office supplies store for tiny and medium sized organisations has just recently been involved in preparing for a merger with its competitor House Deport, which has actually impacted efficiency levels in departmentswith the senior manager associated with legal issues put forth by the federal Trade Commission. With the Marketing 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 future. With challenges in the form of a prospective social change and also low worker spirits, the organization is in need of a complete reengineering effort at the marketing department.

Issue Statement
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing department of Deferred Taxes And The Valuation Allowance At Lucent Technologies Inc A is raising unpredictability in the workplace leading to various 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 function in affecting tactical decisions considering that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Payment's intervention while doing so. Provided the fact that the store has an international presence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these countries might be able to influence efficiency or critical objectives. Federal Profession Compensation's antitrust fit versus the merging occupied useful time of the company's elderly monitoring recommending that 'political' factors can have significant effects for a global organisation.

Economic Factors: Financial factors such as the emergence of small businesses in the global circumstance recommend that Deferred Taxes And The Valuation Allowance At Lucent Technologies Inc A is thriving in an atmosphere where there is prospective growth of businesses. Truth that shop customers are primarily looking for workplace materials for home offices suggests that the market has a climbing pattern of business owners and also house based organisations.

Social factors: Social fads in the economy show that customers are looking for convenience in addition to appealing costs. Market research shows how the customer for Deferred Taxes And The Valuation Allowance At Lucent Technologies Inc A does not have awareness about locating solutions which can use a combination of comfort and low costs.

Technological factors: Modern technology plays an important role in Deferred Taxes And The Valuation Allowance At Lucent Technologies Inc A's service strategy especially as the company is piloting Modern technology centers which would use technology sales and also assistance in the type of memory upgrades, outer installations. (Summary of PARASITE in appendix 2).

OB Issues and Symptoms.

Numerous underlying Business Actions concerns can be seen in Deferred Taxes And The Valuation Allowance At Lucent Technologies Inc A's case as highlighted in this section.

Worries concerning social modification: There is concern about a social change that would occur when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising with most of the personnel currently showing unhappiness over this possible relocation. This anticipated modification has developed tension in the work environment which has been coupled with the previous tension of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is shortage of workers that can match the stressful setting of a busy organization. Not only does this lead to problem in finding the right individuals, it places tension on new hires as can not endure the speed as well as stress that the company anticipates them to bear.

Dual Coverage Lines: Newbies locate this organizational society troublesome as well as tough to deal with particularly as dotted line connections are meant to be weaker generally as well as objective setting and performance assessment is still done by the strong line manager. This means that newcomers can shed quality concerning their corresponding roles and also goals particularly as populated line reporting does not maintain them in straight communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had actually been speculated that the last would certainly take Krasnow's setting came as a strike to her spirits. Lewis may have been capable and also proper for the task but the truth that Kransnow's departure would make Coles a straight record to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Work Insecurity: Worry and instability can be recognized as two major concerns that Lewis would be handling specifically as the merging has actually now be terminated and also two elderly executives of the marketing department would be leaving. The entire responsibility of the division would certainly be dropping on Lewis's shoulders who would not just be in charge of brining regarding a cultural modification yet would also need to verify herself in her brand-new duty.

Inappropriate Administration Design of Leader: Lewis's administration design and also its incompatibility with the advertising department's duty can likewise be seen as an OB obstacle especially as she has actually been utilized to handling concerns in the operations department where workers are taught to concentrate on procedures and obtain them. The advertising and marketing division on the various other hand can be viewed as a team of individuals who are made use of to being nurtured by Krasnow who concentrated more on result than processes.

Interdepartmental Disagreements: Interdepartmental differences in between three divisions, marketing, merchandizing and procedures respectively over the appropriation of the advertising and marketing mix can be determined as one more OB problem. The advertising and marketing department does not share the very same vision as the various other two departments regarding the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and also operations divisions do not agree over the advertising mix allocation among one an additional either.

Disintegration in Marketing Division: Fragmentation between the advertising and marketing divisions can be determined as one more OB issue which might need additional attention. The reality that the marketing and advertising areas in the advertising and marketing department are separated is protecting against both departments from getting from each various other's experience and proficiency. Combination of marketing with merchandising and operations would certainly end up being more difficult if the marketing department itself is broken down which can be one more potential OB worry.

Deferred Taxes And The Valuation Allowance At Lucent Technologies Inc A Analysis

Numerous theories have actually been used to discuss the conditions to get additional clarity regarding the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers believe that juniors are easy and also lazy, have little aspiration and also resist modification. The hard variation of this concept highlighted browbeating, tight controls, hazards as well as penalties. With time it generates low efficiency, refined sabotage as well as competition (Offer, 2003). Although the situation at Deferred Taxes And The Valuation Allowance At Lucent Technologies Inc A is not completely complying with Theory X, it can be seen that brand-new hires are discovering this setting instead stressful which might eventually lead to a higher disposition of the administration in the direction of Theory X. According to McGregor's promoted sight, which he called Concept Y, the necessary task of the management is to arrange business problems so that individuals can accomplish their own objectives best by directing their initiatives in the direction of business incentives. If people find no fulfillment in their job, the management would have little option but to rely upon concept X and also outside control (Deal, 2003). Also while evaluating Lewis's management style, concept X may have been suitable in the procedures department to some extent however the Advertising and marketing department would call for dependence on Theory Y to get the creative thinking and creativity from the teams.

Tuckman's Synergy Concept: As much as Lewis's problem regarding bringing harmony between the advertising and advertising and marketing division is worried, this would originally lead to contrast as gone over by Bruce Tuckman in his 'Team effort Concept'. By incorporating the advertising and marketing as well as marketing department's work, there might be the exact same initial separate which can lead to the 2nd phase of 'storming' where the groups challenge one an additional.

Bridges' Transition Design: Based On William Bridge's theory (appendix 4), individuals are rather awkward with adjustment, which is obvious by the situation at Deferred Taxes And The Valuation Allowance At Lucent Technologies Inc A The scenario can be seen as a typical training course of life if is studied based on Bridge's concept where he discusses that people undergo 3 stages of transition when they experience adjustment. 'Closing, losing and Releasing', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When individuals exist with change, they enter stage one therefore there may be emotions like sadness, unpredictability, frustration, temper, fear, denial and disorientation.The scenario at the advertising and marketing department of Deferred Taxes And The Valuation Allowance At Lucent Technologies Inc A is similar so Lewis can obtain comfortable with the idea that it is not amazing habits. In the second phase, there might be a demand to link the void between the new and old culture so Lewis might need to face this ordeal once Krasnow leaves. There may be low morale as well as reduced efficiency at this stage which should not be taken as an obstacle. It is throughout this stage that Lewis will certainly have to provide assistance to the department to make sure that they can locate a sense of direction. It can be seen exactly how Krasnow has actually currently made this change less complicated by making Lewis obtain associated with the division a year prior to his actual departure. As per Bridges' Design, phase 3 will certainly cause openness to knowing, High energy and also commitment as individuals will welcome the modification (Bridges, 2004).
Vrio Analysis
Maslow's Need pecking order: The OB problem pertaining to insecurity at the work environment has been activated to start with by the adjustment in management as well as secondly by the truth that the merger will certainly no longer be initiated. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has talks about the significance of 'safety and security requires as being a reduced degree need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel protected and safe' goes to the second degree of requirements. Before a worker can be made to develop emotionally, he requires to have his 'Physiological 'and also 'Safety and security' requires satisfied. This shows that unless the personnel are made to feel protected concerning their existing employment status in Deferred Taxes And The Valuation Allowance At Lucent Technologies Inc A they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Deferred Taxes And The Valuation Allowance At Lucent Technologies Inc A Case Study



Implication of Analysis.

The OB analysis has considered different concepts to comprehend how to cope with the present scenario available. The following 3 alternatives have actually been suggested to aid Lewis handle the organizational difficulties in the advertising department. Each of these choices has been recommended for relieving the transition needed to bring the advertising division in accordance with the demands of the market and also for making the cultural adjustment that would comply with when the current leader leaves.

Assimilation of advertising and marketing features. Separating Adverting as well as Production functions. Integration of Advertising with Workflow.

Assessment of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merging days has competence in business-to-business advertising along with company as well as retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both marketing and advertising functions.

The advantage of this approach is that it will incorporate both features while minimizing the requirement for employing an additional resource for advertising and marketing. Lewis would certainly be heading the marketing division and in any case her substitute would certainly be required for the present duty that she is carrying out. The disadvantage of this choice is that outside hiring might produce bitterness from inner personnel that might be eying the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Production: Offered the competitive stress as well as top quality work called for from the advertising agency, it is advised that Lewis ought to allow the production system to be a separate function from the advertising and marketing device. Given that many ad agency had these two functions as different units, it makes more sense to adhere to the standard. Along with this, both functions may have the ability to concentrate on their core activates more effectively. The disadvantage of this approach would be that added costs would certainly have to be birthed for establishing up separate manufacturing functions. Along with this, a production head might need to be worked with which can raise expenses for the organization.

Integration of Marketing with Workflows: Since Lewis is already taking care of the marketing as well as procedures divisions simultaneously; it makes sense to incorporate the two features given that she has actually been efficiently taking treatment of both ends. The reality that Lewis has to adapt her administration design for the advertising department suggests that these two divisions would be culturally diverse.

Referral.



An assessment of the three alternatives indicates that integration of advertising and also procedures would not be a viable step because of the substantial differences in between both divisions despite the fact that currently Lewis is dealing with both. While splitting up of the manufacturing feature might have been a desirable step for the marketing department, the reality that it would certainly imply placing a 3rd function under Lewis's wing indicates this should be avoided also. The assimilation of the advertising and marketing division is the best choice in terms of obtaining the optimal arise from the department. An action plan for this choice is gone over listed below.

Activity Strategy.
Recommendation
Lewis will take over the role of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Manufacturing function will certainly continue to be part of advertising and marketing under advertising feature.

Lewis will divide herself from procedures.

A democratic leadership design with worker empowerment will certainly be utilized in marketing department.

Open door policy and also emphasis on cross department interaction will certainly be focused on removing disharmony.

Contingency strategy.

If the assimilation does not exercise as planned, a backup plan would follow which would certainly separate the production feature from the advertising feature to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing department without an SVP. Because case the manufacturing feature will absolutely be separated by positioning it under an SVP manufacturing.