Divestiture Of Cable And Wireless Hkt Ltd Case Study Analysis


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Divestiture Of Cable And Wireless Hkt Ltd Case Study Help

Background and Facts

Divestiture Of Cable And Wireless Hkt Ltd an office supplies seller for small as well as moderate sized businesses has lately been associated with planning for a merger with its competitor Residence Deport, which has affected efficiency levels in departmentswith the senior manager involved in legal difficulties presented by the government Profession Commission. With the Marketing Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the present head of operations has been asked to take the function in the future. With difficulties in the kind of a prospective social modification and also reduced staff member spirits, the organization requires a complete reengineering initiative at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing division of Divestiture Of Cable And Wireless Hkt Ltd is increasing unpredictability in the working environment causing various challenges for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing tactical decisions since Stapes Inc. needed to abandon its strategies of combining with Workplace Deport after the Federal Trade Compensation's intervention in the process. Provided the fact that the store has a global presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries might have the ability to affect performance or strategic goals. Federal Trade Payment's antitrust fit against the merger occupied valuable time of the company's elderly monitoring suggesting that 'political' factors can have severe implications for a worldwide business.

Economic Factors: Financial factors such as the appearance of small companies in the global situation suggest that Divestiture Of Cable And Wireless Hkt Ltd is flourishing in an atmosphere where there is possible growth of services. Along with this, truth that shop consumers are primarily searching for office materials for office recommends that the market has a rising pattern of entrepreneurs as well as home services.

Social factors: Social trends in the economic climate reveal that customers are seeking benefit as well as appealing rates. Market research demonstrates how the client for Divestiture Of Cable And Wireless Hkt Ltd lacks awareness concerning discovering solutions which can provide a combination of convenience and also low costs.

Technical factors: Innovation plays an important role in Divestiture Of Cable And Wireless Hkt Ltd's organisation technique specifically as the organization is piloting Innovation facilities which would supply modern technology sales and support in the form of memory upgrades, peripheral installments. (Recap of BUG in appendix 2).

OB Issues and also Effects.

Several underlying Organizational Behavior problems can be seen in Divestiture Of Cable And Wireless Hkt Ltd's case as highlighted in this section.

Uneasiness regarding social change: There is worry regarding a social modification that would certainly occur when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising with the majority of the employee already revealing discontent over this potential relocation. This anticipated modification has produced anxiety in the office which has been combined with the previous tension of preparing the company for a potential merger with Residence Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is scarcity of workers that can match the difficult setting of a fast-paced organization. Not just does this bring about trouble in discovering the ideal individuals, it puts anxiety on brand-new hires as can not stand up to the speed as well as stress that the company expects them to bear.

Double Reporting Lines: Beginners locate this organizational society troublesome and also challenging to handle especially as dotted line connections are indicated to be weaker as a whole and unbiased setup and also efficiency assessment is still done by the strong line manager. This implies that beginners can lose clarity concerning their particular functions as well as purposes specifically as populated line coverage does not maintain them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles even though it had been speculated that the latter would take Krasnow's position came as a strike to her morale. Lewis might have been capable and proper for the task yet the reality that Kransnow's separation would make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.

Fear & Job Instability: Anxiety and also insecurity can be determined as two major concerns that Lewis would certainly be handling especially as the merging has currently be cancelled and also 2 senior executives of the marketing department would certainly be leaving. The entire obligation of the division would be dropping on Lewis's shoulders that would certainly not just be in charge of brining concerning a cultural modification but would likewise have to confirm herself in her brand-new duty.

Inappropriate Management Style of Leader: Lewis's management design and its conflict with the marketing department's duty can also be seen as an OB difficulty especially as she has actually been used to taking care of problems in the operations division where personnel are educated to concentrate on procedures and also get them. The marketing division on the various other hand can be seen as a group of people who are utilized to being supported by Krasnow who concentrated extra on result than processes.

Interdepartmental Disputes: Interdepartmental disputes in between three departments, advertising and marketing, merchandizing and also operations specifically over the allocation of the advertising mix can be recognized as another OB concern. Although the advertising department does not share the same vision as the various other 2 departments concerning the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and also procedures departments do not concur over the advertising and marketing mix allotment among each other either.

Fragmentation in Advertising Division: Disintegration between the marketing and advertising departments can be recognized as another OB concern which could need more attention. The fact that the marketing and advertising areas in the advertising and marketing department are detached is preventing both departments from getting from each various other's experience as well as expertise. Assimilation of marketing with retailing and procedures would certainly end up being more difficult if the advertising department itself is disintegrated which can be one more prospective OB worry.

Divestiture Of Cable And Wireless Hkt Ltd Analysis

Different theories have actually been made use of to describe the scenarios to obtain additional clarity concerning the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers think that juniors are passive as well as careless, have little aspiration and stand up to adjustment. The difficult variation of this concept emphasized browbeating, tight controls, risks and penalties. Gradually it generates low efficiency, refined sabotage and also competition (Offer, 2003). Although the situation at Divestiture Of Cable And Wireless Hkt Ltd is not entirely following Theory X, it can be seen that brand-new hires are locating this setting rather demanding which may eventually bring about a greater disposition of the management in the direction of Theory X. According to McGregor's promoted sight, which he called Theory Y, the crucial job of the monitoring is to set up business conditions to make sure that people can achieve their very own objectives best by guiding their efforts in the direction of organizational incentives. If individuals locate no complete satisfaction in their job, the management would certainly have little choice however to depend on concept X as well as outside control (Offer, 2003). Also while analyzing Lewis's administration design, concept X may have appropriated in the operations division to some extent however the Marketing department would certainly need dependence on Concept Y in order to get the creative thinking and creativity from the teams.

Tuckman's Teamwork Theory: As much as Lewis's worry regarding bringing harmony in between the marketing and advertising and marketing division is concerned, this would at first lead to contrast as gone over by Bruce Tuckman in his 'Synergy Theory'. By combining the advertising and also marketing department's job, there may be the very same initial detach which can lead to the second stage of 'storming' where the groups challenge one another.

Bridges' Shift Design: According To William Bridge's concept (appendix 4), individuals are quite uncomfortable with adjustment, which is evident by the scenario at Divestiture Of Cable And Wireless Hkt Ltd The circumstance can be seen as a regular course of life if is examined based on Bridge's concept where he describes that individuals experience three stages of change when they experience change. 'End, shedding and also Releasing', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people exist with change, they go into phase one and so there may be emotions like unhappiness, unpredictability, disappointment, anger, anxiety, rejection and disorientation.The situation at the advertising division of Divestiture Of Cable And Wireless Hkt Ltd is similar so Lewis can obtain comfy with the suggestion that it is not extraordinary habits. In the second stage, there might be a demand to connect the space in between the brand-new and old society so Lewis may need to encounter this experience as soon as Krasnow leaves. There may be low spirits and reduced productivity at this stage which should not be taken as a setback. It is throughout this stage that Lewis will have to give guidance to the department to ensure that they can discover a sense of direction. It can be seen how Krasnow has already made this change less complicated by making Lewis obtain associated with the department a year prior to his actual separation. According to Bridges' Version, stage three will cause visibility to understanding, High energy and also dedication as people will accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has talks about the significance of 'safety needs as being a lower degree demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel protected and out of risk' is at the 2nd degree of needs. Before an employee can be made to develop psychologically, he needs to have his 'Physical 'and also 'Safety and security' requires met.

SWOT Analysis for Divestiture Of Cable And Wireless Hkt Ltd Case Study

Ramification of Analysis.

The OB analysis has taken a look at different concepts to recognize just how to deal with the existing circumstance available. The following three options have been suggested to help Lewis take care of the business obstacles in the advertising and marketing department. Each of these options has actually been proposed for reducing the change needed to bring the marketing department in accordance with the demands of the marketplace as well as for making the cultural modification that would certainly follow as soon as the present leader leaves.

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

Assessment of Alternatives.

Combination of Advertising And Marketing & Marketing Functions: The internal advertising and marketing company of Divestiture Of Cable And Wireless Hkt Ltd is already strength for the organization in terms of conserving up on expenses connected to advertising and marketing as well as promotion. Since no brand-new recruitment has actually been done after Bridget Cole's departure with the coverage line being directly designated to Krasnow for the marketing function, this is a beneficial chance for integrating the marketing and advertising functions. Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merger days has knowledge in business-to-business advertising and marketing in addition to firm as well as retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to take care of both marketing and advertising features.

The benefit of this strategy is that it will certainly integrate the two features while decreasing the requirement for employing an added source for marketing. In addition to this, Lewis would be heading the advertising division and also all the same her replacement would be needed for the present role that she is carrying out. The negative aspect of this alternative is that external hiring might cause animosity from internal workers who might be eying the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Production: Provided the affordable stress and also high top quality job required from the advertising and marketing company, it is recommended that Lewis needs to allow the production system to be a separate feature from the advertising and marketing unit. Considering that a lot of marketing companies had these 2 functions as separate devices, it makes even more feeling to comply with the norm.

Integration of Marketing with Procedures: Since Lewis is currently taking treatment of the advertising as well as procedures departments simultaneously; it makes feeling to incorporate the 2 features given that she has actually been efficiently taking care of both ends. The fact that Lewis has to adapt her administration design for the advertising and marketing department recommends that these two divisions would be culturally diverse.


An analysis of the 3 choices shows that combination of advertising and marketing and also procedures would not be a viable action due to the vast differences between the two departments regardless of the truth that currently Lewis is taking care of both. While separation of the production feature might have been a positive relocation for the advertising and marketing department, the truth that it would certainly mean positioning a third feature under Lewis's wing suggests this need to be prevented.

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

Advertising and Marketing functions would certainly be merged.

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

Production feature will remain part of advertising and marketing under marketing feature.

Lewis will certainly separate herself from procedures.

An autonomous management design with worker empowerment will certainly be made use of in advertising division.

Open door policy and also emphasis on cross department interaction will certainly be targeted at eliminating dissonance.

Contingency strategy.

If the combination does not work out as prepared, a backup strategy would follow which would divide the manufacturing feature from the advertising and marketing function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the marketing department without an SVP. Because case the production feature will definitely be divided by placing it under an SVP production.