Dividend Policy At Fpl Group Inc A Case Study Analysis


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Dividend Policy At Fpl Group Inc A Case Study Solution

Background and Facts

Dividend Policy At Fpl Group Inc A a workplace materials merchant for tiny as well as moderate sized organisations has actually recently been involved in preparing for a merging with its competitor Residence Deport, which has actually influenced performance levels in departmentswith the elderly supervisor associated with lawful difficulties put forth by the federal Trade Payment. With the Advertising and marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the role in the near future. With obstacles in the form of a possible cultural adjustment and reduced worker spirits, the company needs a full reengineering effort at the advertising and marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing division of Dividend Policy At Fpl Group Inc A is boosting uncertainty in the working environment resulting in numerous challenges for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting tactical decisions because Stapes Inc. needed to abandon its plans of combining with Workplace Deport after the Federal Profession Payment's intervention while doing so. Offered the truth that the shop has a global presence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these nations may have the ability to influence efficiency or strategic objectives. Federal Trade Compensation's antitrust suit against the merger occupied beneficial time of the company's senior monitoring recommending that 'political' factors can have severe implications for a worldwide service.

Economic Factors: Economic factors such as the emergence of small companies in the global situation recommend that Dividend Policy At Fpl Group Inc A is growing in a setting where there is possible development of companies. Along with this, reality that store consumers are mostly looking for office products for office suggests that the market has a rising fad of business owners and also home organisations.

Social factors: Social patterns in the economy reveal that customers are searching for ease along with eye-catching rates. Marketing research shows how the customer for Dividend Policy At Fpl Group Inc A does not have recognition regarding locating options which can use a combination of benefit as well as affordable.

Technological factors: Technology plays a vital role in Dividend Policy At Fpl Group Inc A's company strategy particularly as the company is piloting Innovation centers which would supply modern technology sales as well as assistance in the type of memory upgrades, peripheral setups. (Recap of PEST in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Organizational Behavior concerns can be seen in Dividend Policy At Fpl Group Inc A's case as highlighted in this section.

Concerns about social modification: There is apprehension regarding a cultural adjustment that would occur once Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with a lot of the employee already revealing unhappiness over this possible step. This expected change has actually produced stress and anxiety in the workplace which has actually been coupled with the past anxiety of preparing the company for a prospective merging with Residence Deport.
Pest Analysis
Stressful Task Setting for Newcomers: There is scarcity of personnel that can match the stressful environment of a hectic company. Not just does this bring about trouble in discovering the ideal people, it places tension on brand-new hires as can not withstand the speed and also stress that the company expects them to bear.

Double Reporting Lines: Novices locate this organizational society cumbersome and also tough to deal with particularly as dotted line relationships are implied to be weak generally and unbiased setting and also performance analysis is still done by the solid line manager. This implies that newcomers might lose clearness concerning their respective roles as well as purposes specifically as populated line coverage does not maintain them in straight interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had been hypothesized that the latter would take Krasnow's setting came as an impact to her morale. Lewis may have been capable and suitable for the job but the fact that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Task Insecurity: Anxiety as well as insecurity can be determined as two significant worries that Lewis would certainly be managing specifically as the merging has actually now be terminated and two elderly executives of the advertising division would be leaving. The whole responsibility of the department would be falling on Lewis's shoulders who would certainly not simply supervise of brining about a social adjustment yet would certainly additionally have to show herself in her brand-new duty.

Inappropriate Management Design of Leader: Lewis's administration style as well as its conflict with the advertising department's role can likewise be viewed as an OB difficulty especially as she has been made use of to dealing with concerns in the procedures department where workers are educated to concentrate on processes and get them right. The marketing department on the various other hand can be viewed as a team of people who are utilized to being supported by Krasnow who focused extra on output than procedures.

Interdepartmental Disputes: Interdepartmental arguments between 3 divisions, advertising and marketing, merchandizing as well as operations specifically over the allocation of the advertising and marketing mix can be recognized as an additional OB issue. Although the advertising and marketing department does not share the very same vision as the other two divisions regarding the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing as well as procedures divisions do not agree over the advertising mix allowance amongst one another either.

Disintegration in Advertising And Marketing Division: Fragmentation in between the advertising and marketing divisions can be determined as another OB problem which might need further attention. The reality that the marketing and advertising sections in the marketing department are separated is preventing both departments from getting from each other's experience as well as know-how. Combination of marketing with merchandising and procedures would become more difficult if the marketing department itself is disintegrated which can be one more possible OB issue.

Dividend Policy At Fpl Group Inc A Analysis

Different theories have been used to discuss the conditions to obtain more clarity regarding the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors believe that subordinates are easy and lazy, have little ambition and also resist change. The hard version of this concept stressed browbeating, limited controls, risks and punishments. Over time it creates low productivity, refined sabotage as well as competition (Deal, 2003). Although the situation at Dividend Policy At Fpl Group Inc A is not totally complying with Theory X, it can be seen that new hires are discovering this setting instead stressful which may ultimately result in a better inclination of the administration towards Theory X. As per McGregor's promoted view, which he called Concept Y, the vital job of the administration is to organize business problems so that individuals can achieve their very own goals best by directing their initiatives in the direction of business benefits. If people discover no fulfillment in their work, the monitoring would have little option yet to rely on concept X as well as exterior control (Bargain, 2003). Also while analyzing Lewis's management design, theory X might have appropriated in the operations department to some extent yet the Advertising and marketing department would need reliance on Theory Y in order to get the creativity and originality from the teams.

Tuckman's Synergy Theory: Regarding Lewis's issue concerning bringing harmony between the marketing and advertising division is concerned, this would initially bring about conflict as gone over by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). According to Tuckman's theory displayed in appendix 3, during the first stage of team advancement, people may not bond, as they are hectic finding their place in the group. By combining the advertising and marketing department's work, there may coincide first separate which might cause the 2nd stage of 'storming' where the groups test one another. However, it is only during the 3rd stage or 'norming' when they would certainly come together to share concepts prior to the team can produce synergy in the 4th phase 'performing'.

When individuals are provided with modification, they go into phase one as well as so there might be emotions like sadness, uncertainty, frustration, rage, anxiety, rejection as well as disorientation.The circumstance at the marketing division of Dividend Policy At Fpl Group Inc A is comparable so Lewis can get comfortable with the suggestion that it is not extraordinary actions. It is throughout this stage that Lewis will certainly have to provide support to the department so that they can find a sense of instructions. It can be seen exactly how Krasnow has already made this shift much easier by making Lewis obtain included in the division a year prior to his real departure.
Vrio Analysis
Maslow's Requirement power structure: The OB issue pertaining to instability at the workplace has actually been caused first of all by the change in management as well as second of all by the truth that the merger will no more be initiated. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has discusses the importance of 'protection needs as being a reduced level need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel safe and secure and safe' is at the second level of requirements. Before a staff member can be made to create mentally, he requires to have his 'Physical 'as well as 'Safety and security' requires satisfied. This indicates that unless the personnel are made to really feel safe regarding their existing work standing in Dividend Policy At Fpl Group Inc A they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Dividend Policy At Fpl Group Inc A Case Study

Effects of Analysis.

The OB analysis has actually checked out numerous concepts to comprehend how to manage the current scenario handy. The following three alternatives have been recommended to aid Lewis handle the organizational difficulties in the advertising and marketing division. Each of these alternatives has been suggested for alleviating the change needed to bring the advertising department according to the needs of the market as well as for making the cultural adjustment that would adhere to as soon as the present leader leaves.

Integration of advertising and marketing features. Separating Adverting and also Production features. Integration of Advertising with Procedures.

Evaluation of Alternatives.

Combination of Marketing & Advertising Functions: The in-house advertising and marketing firm of Dividend Policy At Fpl Group Inc A is currently strength for the company in regards to saving up on overheads associated with advertising as well as promo. Since no new employment has actually been done after Bridget Cole's departure with the reporting line being straight assigned to Krasnow for the advertising and marketing feature, this is a positive possibility for integrating the marketing and advertising functions. Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merging days has proficiency in business-to-business marketing along with company and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to deal with both marketing and advertising functions.

The advantage of this technique is that it will integrate the two functions while reducing the need for working with an additional resource for advertising and marketing. In addition to this, Lewis would certainly be heading the advertising division as well as all the same her replacement would be required for the current duty that she is carrying out. The disadvantage of this option is that exterior hiring might bring about animosity from internal workers who might be considering the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Production: Offered the competitive pressures and excellent quality job required from the advertising agency, it is recommended that Lewis should permit the production system to be a separate feature from the advertising system. Because most advertising agencies had these two features as separate units, it makes more sense to follow the norm. Along with this, both features might be able to focus on their core turns on much more efficiently. However, the downside of this strategy would be that added costs would need to be borne for setting up different manufacturing features. A manufacturing head might have to be worked with which can boost expenses for the company.

Combination of Marketing with Workflows: Considering that Lewis is currently caring for the advertising and marketing and also procedures divisions simultaneously; it makes sense to incorporate both features since she has been successfully dealing with both ends. The fact that both divisions currently have significant differences over allotment of sources suggests that this assimilation might have the ability to cause harmony especially as Lewis would be heading both ends.However there are various drawbacks of this move particularly as it would certainly place way too much problem over Lewis's shoulders. The reality that Lewis has to adapt her administration style for the advertising and marketing department recommends that these 2 departments would certainly be culturally diverse. Along with this, Lewis might not be able to use one sort of management style to both departments which might result in ineffectiveness in either among the two features.


An analysis of the three alternatives suggests that combination of marketing and also operations would certainly not be a practical action due to the vast distinctions in between the two departments in spite of the fact that currently Lewis is handling both. While separation of the production feature might have been a beneficial action for the advertising and marketing division, the fact that it would mean placing a 3rd function under Lewis's wing suggests this ought to be prevented.

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

Marketing and advertising functions would be merged.

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

Production function will certainly continue to be component of marketing under marketing feature.

Lewis will separate herself from operations.

A democratic management design with worker empowerment will certainly be used in marketing division.

Open up door policy and emphasis on cross department interaction will be focused on getting rid of discord.

Contingency strategy.

If the assimilation does not work out as planned, a backup strategy would follow which would divide the production function from the advertising and marketing function to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising and marketing division without an SVP. Because case the manufacturing function will most definitely be divided by putting it under an SVP production.