Dividend Policy At Fpl Group Inc A Case Study Help


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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 supplies seller for tiny and moderate sized services has lately been involved in preparing for a merger with its rival Residence Deport, which has actually influenced effectiveness degrees in departmentswith the senior supervisor involved in legal difficulties put forth by the federal Profession Commission. With the Marketing Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the future. With challenges in the type of a prospective cultural change as well as low staff member spirits, the company requires a complete reengineering initiative at the marketing division.

Trouble Declaration

The prospective social change at the advertising department of Dividend Policy At Fpl Group Inc A is enhancing uncertainty in the working environment bring about numerous challenges for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting tactical choices because Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Trade Compensation's treatment in the process. Provided the reality that the store has an international visibility with branches in UK, U.S.A., Canada and Germany, political factors in each of these nations might be able to influence performance or strategic objectives. Federal Trade Payment's antitrust suit versus the merger used up useful time of the company's senior administration recommending that 'political' factors can have major effects for a global company.

Economic Factors: Financial factors such as the introduction of small businesses in the worldwide circumstance recommend that Dividend Policy At Fpl Group Inc A is growing in an environment where there is prospective development of organisations. Fact that store consumers are mainly looking for office supplies for residence offices suggests that the market has an increasing fad of business owners and home based organisations.

Social factors: Social trends in the economic situation reveal that customers are looking for comfort as well as appealing prices. Marketing research demonstrates how the client for Dividend Policy At Fpl Group Inc A does not have understanding concerning finding remedies which can offer a combination of comfort and also inexpensive.

Technological factors: Innovation plays an important role in Dividend Policy At Fpl Group Inc A's company strategy especially as the company is piloting Modern technology centers which would supply technology sales and also support in the type of memory upgrades, outer setups. (Recap of BUG in appendix 2).

OB Issues and Manifestations.

Several underlying Organizational Actions issues can be seen in Dividend Policy At Fpl Group Inc A's case as highlighted in this section.

Apprehensions regarding cultural adjustment: There is worry regarding a social modification that would certainly occur when Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising with a lot of the staff members currently revealing discontent over this potential step. This predicted change has created stress in the workplace which has been combined with the past anxiety of preparing the firm for a prospective merging with Home Deport.

Demanding Task Setting for Newcomers: There is lack of employees that can match the difficult setting of a hectic company. Not only does this cause trouble in discovering the right people, it puts anxiety on brand-new hires as can not withstand the rate as well as stress that the company expects them to birth.

Double Reporting Lines: Beginners discover this business society troublesome and difficult to handle specifically as dotted line partnerships are meant to be weak in general as well as objective setting as well as performance evaluation is still done by the solid line supervisor. This means that novices might shed clearness concerning their respective duties and goals particularly as populated line reporting does not maintain them in straight interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles despite the fact that it had actually been hypothesized that the latter would certainly take Krasnow's position came as a strike to her spirits. Lewis may have been capable and suitable for the task yet the truth that Kransnow's separation would make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Work Insecurity: Anxiety and also instability can be determined as 2 major issues that Lewis would certainly be handling particularly as the merging has now be terminated and 2 elderly execs of the advertising department would certainly be leaving. The whole obligation of the division would be falling on Lewis's shoulders who would certainly not simply be in charge of brining concerning a social modification yet would additionally have to prove herself in her brand-new duty.

Inappropriate Management Design of Leader: Lewis's administration design and also its conflict with the advertising division's duty can likewise be seen as an OB challenge particularly as she has actually been utilized to managing problems in the procedures division where employees are taught to concentrate on processes and also get them. The advertising and marketing division on the various other hand can be viewed as a group of individuals who are used to being nurtured by Krasnow that concentrated more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental differences in between three divisions, advertising, merchandizing as well as operations specifically over the allotment of the advertising and marketing mix can be recognized as an additional OB worry. The advertising division does not share the same vision as the other 2 divisions pertaining to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and also procedures divisions do not concur over the advertising mix appropriation among one another either.

Disintegration in Advertising And Marketing Division: Fragmentation in between the advertising and marketing divisions can be determined as one more OB issue which could require further interest. The fact that the advertising and marketing sections in the advertising and marketing division are detached is preventing both divisions from gaining from each various other's experience as well as proficiency. Integration of marketing with retailing as well as operations would come to be harder if the advertising department itself is broken down which can be another possible OB concern.

Dividend Policy At Fpl Group Inc A Analysis

Numerous theories have been used to describe the conditions to obtain more clearness regarding the scenario handy.

McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most supervisors believe that staffs are easy as well as lazy, have little ambition and also stand up to change. The hard version of this theory stressed browbeating, tight controls, dangers and also penalties. With time it produces reduced efficiency, refined sabotage and competition (Offer, 2003). Although the situation at Dividend Policy At Fpl Group Inc A is not completely adhering to Theory X, it can be seen that brand-new hires are finding this environment instead demanding which may ultimately cause a higher inclination of the management in the direction of Concept X. Based on McGregor's promoted view, which he called Theory Y, the necessary job of the administration is to set up organizational conditions so that individuals can achieve their very own goals best by directing their initiatives in the direction of organizational rewards. If individuals find no contentment in their work, the monitoring would certainly have little option however to depend on concept X and also outside control (Deal, 2003). Even while examining Lewis's monitoring style, concept X might have appropriated in the procedures division somewhat yet the Marketing department would certainly need dependence on Theory Y in order to get the creative thinking and also creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's concern about bringing harmony between the marketing and advertising department is worried, this would at first cause conflict as talked about by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, throughout the initial stage of group advancement, people might not bond, as they are busy locating their location in the group. By integrating the advertising and marketing division's work, there may coincide first separate which might cause the second stage of 'storming' where the groups challenge each other. It is only throughout the third stage or 'norming' when they would come with each other to share ideas prior to the group can bring about synergy in the 4th phase 'performing'.

Bridges' Change Design: As per William Bridge's concept (appendix 4), individuals are fairly uncomfortable with adjustment, which is apparent by the circumstance at Dividend Policy At Fpl Group Inc A The scenario can be seen as a typical program of life if is examined as per Bridge's theory where he clarifies that people undergo 3 stages of shift when they experience adjustment. 'Closing, losing and Releasing', The Neutral Area and also 'The New Starting' (Bridges, 2004). When individuals are presented with change, they get in phase one and so there may be emotions like despair, uncertainty, frustration, temper, anxiety, rejection as well as disorientation.The scenario at the advertising and marketing department of Dividend Policy At Fpl Group Inc A is similar so Lewis can get comfortable with the suggestion that it is not amazing actions. In the second phase, there may be a requirement to connect the space between the brand-new and old society so Lewis might need to face this challenge as soon as Krasnow leaves. There might be reduced spirits and reduced efficiency at this stage which ought to not be taken as a trouble. It is throughout this phase that Lewis will have to provide support to the division to ensure that they can locate an orientation. It can be seen exactly how Krasnow has currently made this shift much easier by making Lewis obtain associated with the department a year before his actual departure. Based on Bridges' Model, phase 3 will certainly bring about visibility to learning, High energy and also commitment as people will accept the adjustment (Bridges, 2004).

Maslow's Need pecking order: The OB problem related to insecurity at the office has actually been triggered first of all by the change in management and second of all by the fact that the merger will no more be started. Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has discusses the value of 'safety and security requires as being a reduced degree need of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the need to feel protected as well as unharmed' goes to the 2nd degree of demands. Prior to an employee can be made to develop emotionally, he needs to have his 'Physiological 'and 'Security' needs satisfied. This indicates that unless the personnel are made to really feel protected concerning their current work condition 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 taken a look at numerous theories to recognize exactly how to handle the existing circumstance at hand. The complying with three choices have actually been recommended to assist Lewis manage the organizational obstacles in the marketing department. Each of these choices has actually 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 social change that would adhere to when the existing leader leaves.

Combination of marketing and advertising features. Separating Adverting as well as Manufacturing features. Integration of Marketing with Procedures.

Analysis of Alternatives.

Integration of Advertising & Advertising And Marketing Functions: The internal marketing company of Dividend Policy At Fpl Group Inc A is already toughness for the organization in terms of saving up on expenses associated with marketing and promotion. Considering that no new employment has been done after Bridget Cole's separation with the coverage line being directly assigned to Krasnow for the advertising and marketing function, this is a beneficial possibility for incorporating the advertising and marketing functions. Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merging days has proficiency in business-to-business advertising together with agency and retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing features.

The benefit of this strategy is that it will certainly integrate the two features while decreasing the requirement for working with an extra source for marketing. Lewis would certainly be heading the advertising department and in any case her replacement would be required for the present function that she is carrying out. The drawback of this choice is that exterior hiring might bring about animosity from internal employees that may be eying the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Production: Provided the affordable pressures and also premium quality work required from the advertising agency, it is suggested that Lewis must permit the production device to be a different feature from the advertising unit. Because the majority of advertising agencies had these two functions as different units, it makes more feeling to follow the norm. Both functions may be able to concentrate on their core turns on more successfully. Nonetheless, the downside of this approach would be that added costs would have to be birthed for setting up separate production functions. Along with this, a production head might have to be hired which can raise expenses for the company.

Combination of Marketing with Procedures: Considering that Lewis is currently dealing with the advertising and marketing and also procedures divisions at the same time; it makes good sense to incorporate the two functions considering that she has been efficiently caring for both ends. The truth that the two departments already have major distinctions over appropriation of resources suggests that this integration may be able to produce consistency particularly as Lewis would be heading both ends.However there are numerous negative aspects of this move especially as it would place way too much problem over Lewis's shoulders. The reality that Lewis needs to adjust her monitoring design for the advertising division recommends that these two departments would be culturally diverse. Lewis might not be able to use one type of management style to both divisions which could result in inefficiency in either one of the two features.


An assessment of the three alternatives indicates that integration of advertising and procedures would not be a viable action due to the vast distinctions in between the two divisions despite the fact that presently Lewis is taking care of both. While separation of the manufacturing function might have been a favorable relocation for the advertising and marketing division, the fact that it would imply placing a 3rd function under Lewis's wing suggests this ought to be stayed clear of. The assimilation of the advertising department is the best option in regards to getting the ideal results from the division. An action prepare for this alternative is gone over listed below.

Action Plan.

Lewis will take over the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Production function will certainly remain component of advertising and marketing under advertising function.

Lewis will separate herself from operations.

A democratic leadership design with employee empowerment will be made use of in advertising division.

Open up door policy and focus on cross departmental interaction will certainly be aimed at removing dissonance.

Contingency strategy.

If the integration does not work out as intended, a contingency strategy would follow which would certainly divide the production feature from the marketing function to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing division without an SVP. In that case the production feature will absolutely be divided by putting it under an SVP production.