Dividend Policy At Fpl Group Inc A Case Study Help


Home >> Harvard >> Dividend Policy At Fpl Group Inc A >>

Dividend Policy At Fpl Group Inc A Case Study Solution

Background and Facts

Dividend Policy At Fpl Group Inc A a workplace supplies store for small and moderate sized organisations has actually lately been associated with planning for a merging with its rival House Deport, which has actually influenced efficiency degrees in departmentswith the senior supervisor associated with legal difficulties put forth by the government Profession Compensation. With the Advertising Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the role in the near future. With challenges in the type of a prospective social change and low worker spirits, the company is in need of a complete reengineering effort at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The possible cultural change at the advertising department of Dividend Policy At Fpl Group Inc A is enhancing unpredictability in the working environment causing various challenges for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting tactical decisions because Stapes Inc. needed to abandon its strategies of merging with Office Deport after the Federal Trade Commission's intervention in the process. Offered the truth that the store has a global existence with branches in UK, U.S.A., Canada and Germany, political consider each of these nations may have the ability to affect performance or critical objectives. Federal Trade Commission's antitrust suit versus the merger used up beneficial time of the organization's elderly monitoring recommending that 'political' factors can have significant ramifications for a global service.

Economic Factors: Economic factors such as the emergence of local business in the worldwide scenario suggest that Dividend Policy At Fpl Group Inc A is thriving in a setting where there is possible growth of services. Truth that store clients are mainly looking for workplace products for house workplaces recommends that the market has an increasing trend of entrepreneurs and also home based businesses.

Social factors: Social patterns in the economy show that clients are searching for benefit as well as appealing prices. Market research shows how the customer for Dividend Policy At Fpl Group Inc A lacks understanding concerning finding options which can offer a combination of benefit and low costs.

Technical factors: Modern technology plays a vital function in Dividend Policy At Fpl Group Inc A's company technique specifically as the organization is piloting Technology centers which would supply innovation sales as well as support in the form of memory upgrades, peripheral installments. (Summary of BUG in appendix 2).

OB Issues and Manifestations.

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

Uneasiness regarding cultural adjustment: There is worry about a social adjustment that would occur once Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with most of the staff members currently showing discontent over this potential relocation. This predicted change has developed tension in the office which has been combined with the previous stress of preparing the company for a possible merging with House Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is shortage of workers that can match the stressful setting of a fast-paced company. Not only does this lead to problem in locating the ideal people, it places anxiety on brand-new hires as can not hold up against the pace and also pressure that the organization anticipates them to bear.

Double Coverage Lines: Beginners find this business society troublesome as well as difficult to manage especially as populated line partnerships are indicated to be weak generally as well as objective setup and efficiency examination is still done by the strong line manager. This indicates that novices can lose quality about their respective duties and also objectives especially as dotted line coverage does not keep them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been hypothesized that the last would take Krasnow's placement came as a blow to her morale. Lewis may have been qualified and proper for the work yet the truth that Kransnow's separation would make Coles a direct report to Lewis may have been the reason for Coles' resignation from solutions.

Fear & Job Insecurity: Worry and also insecurity can be determined as 2 major issues that Lewis would certainly be managing particularly as the merging has currently be cancelled as well as 2 elderly execs of the advertising division would certainly be leaving. The whole duty of the department would be falling on Lewis's shoulders who would not simply supervise of brining about a social adjustment however would certainly likewise need to show herself in her new role.

Inappropriate Management Style of Leader: Lewis's management style and its conflict with the advertising department's function can also be seen as an OB difficulty especially as she has actually been used to managing issues in the procedures department where personnel are taught to focus on procedures and also get them. The advertising and marketing department on the other hand can be viewed as a group of individuals who are made use of to being supported by Krasnow that focused much more on output than procedures.

Interdepartmental Disputes: Interdepartmental disputes in between three departments, marketing, merchandizing and procedures respectively over the allowance of the advertising and marketing mix can be determined as an additional OB problem. Although the advertising department does not share the very same vision as the various other two departments concerning the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and operations divisions do not concur over the advertising mix appropriation amongst each other either.

Fragmentation in Advertising Department: Disintegration in between the marketing and advertising divisions can be recognized as another OB concern which could require additional focus. The fact that the advertising and marketing areas in the advertising and marketing department are separated is avoiding both divisions from acquiring from each other's experience as well as knowledge. Combination of marketing with retailing and also procedures would become more difficult if the advertising and marketing division itself is disintegrated which can be one more potential OB worry.

Dividend Policy At Fpl Group Inc A Analysis

Different concepts have actually been utilized to describe the conditions to obtain more clearness concerning the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors think that subordinates are passive and also careless, have little aspiration and resist adjustment. The circumstance at Dividend Policy At Fpl Group Inc A is not completely complying with Theory X, it can be seen that new hires are finding this setting instead stressful which might ultimately lead to a greater inclination of the management towards Theory X. Also while assessing Lewis's administration style, concept X might have been appropriate in the procedures division to some level however the Marketing division would certainly call for reliance on Theory Y in order to get the creative thinking and also originality from the teams.

Tuckman's Teamwork Concept: Regarding Lewis's problem concerning bringing consistency between the advertising and marketing division is concerned, this would originally cause contrast as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's theory displayed in appendix 3, during the preliminary stage of group advancement, individuals may not bond, as they are busy locating their place in the group. By incorporating the marketing and advertising division's job, there may be the same preliminary disconnect which can bring about the 2nd phase of 'storming' where the groups challenge each other. However, it is only during the third stage or 'norming' when they would certainly come together to share concepts before the group can bring about synergy in the fourth phase 'doing'.

Bridges' Transition Version: Based On William Bridge's theory (appendix 4), individuals are fairly uneasy with change, which is obvious by the situation at Dividend Policy At Fpl Group Inc A The circumstance can be seen as a regular course of life if is researched based on Bridge's theory where he explains that individuals go through 3 phases of transition when they experience adjustment. 'End, losing and Letting go', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When people are presented with change, they go into stage one therefore there might be emotions like unhappiness, unpredictability, frustration, anger, concern, denial as well as disorientation.The situation at the marketing division of Dividend Policy At Fpl Group Inc A is comparable so Lewis can obtain comfy with the concept that it is not remarkable habits. In the second phase, there may be a demand to connect the void between the brand-new as well as old society so Lewis may have to face this ordeal as soon as Krasnow leaves. There may be low morale and also low productivity at this stage which must not be taken as an obstacle. It is throughout this phase that Lewis will have to give support to the department to make sure that they can find a sense of direction. It can be seen exactly how Krasnow has actually currently made this shift easier by making Lewis obtain involved in the department a year before his actual separation. According to Bridges' Version, stage 3 will certainly produce visibility to discovering, High energy and commitment as people will certainly welcome the change (Bridges, 2004).
Vrio Analysis
Maslow's Demand power structure: The OB problem pertaining to instability at the work environment has actually been caused first of all by the adjustment in management and second of all by the reality that the merging will certainly no longer be started. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has goes over the importance of 'safety requires as being a lower degree demand of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel safe and secure as well as untouched' goes to the second degree of requirements. Prior to an employee can be made to create mentally, he needs to have his 'Physical 'and 'Safety and security' requires fulfilled. This shows that unless the personnel are made to feel protected concerning their existing work standing in Dividend Policy At Fpl Group Inc A they might not reach 'Self-Fulfillment'. (King, 2009).

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

Implication of Analysis.

The OB analysis has actually checked out different concepts to recognize exactly how to cope with the current situation available. The following three options have actually been proposed to aid Lewis manage the organizational obstacles in the advertising division. Each of these options has been suggested for alleviating the shift needed to bring the advertising department in line with the demands of the market as well as for making the cultural change that would comply with when the current leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and also Manufacturing features. Assimilation of Advertising And Marketing with Workflow.

Examination of Alternatives.

Integration of Advertising And Marketing & Advertising Functions: The internal advertising agency of Dividend Policy At Fpl Group Inc A is currently strength for the organization in regards to conserving up on overheads associated with marketing and also promotion. Since no new employment has actually been done after Bridget Cole's departure with the coverage line being straight appointed to Krasnow for the advertising function, this is a positive opportunity for incorporating the advertising and marketing features. Judith Shapiro that has earlier been interviewed by Lewis during the earlier merger days has proficiency in business-to-business advertising along with agency and also retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to manage both advertising and marketing features.

The advantage of this approach is that it will integrate both features while reducing the demand for employing an additional resource for advertising. Lewis would be heading the marketing department and in any type of case her substitute would be needed for the present role that she is doing. The disadvantage of this choice is that outside hiring may produce resentment from internal personnel that might be considering the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Production: Provided the competitive pressures as well as high quality job required from the ad agency, it is suggested that Lewis must allow the manufacturing device to be a different function from the advertising and marketing unit. Because most advertising agencies had these two features as separate devices, it makes even more sense to follow the standard. Both functions may be able to concentrate on their core triggers more successfully. Nevertheless, the drawback of this technique would certainly be that added prices would certainly need to be birthed for establishing different manufacturing functions. A production head might have to be worked with which can increase overheads for the company.

Assimilation of Advertising And Marketing with Operations: Given that Lewis is already caring for the advertising and marketing and procedures departments concurrently; it makes good sense to integrate both functions considering that she has actually been successfully taking care of both ends. The truth that the two divisions currently have major differences over allowance of sources recommends that this combination might be able to bring about harmony specifically as Lewis would certainly be heading both ends.However there are various negative aspects of this move especially as it would certainly place too much burden over Lewis's shoulders. The fact that Lewis has to adjust her monitoring style for the advertising and marketing department recommends that these 2 departments would certainly be culturally varied. Lewis may not be able to apply one type of leadership design to both divisions which might result in inadequacy in either one of the 2 features.


An analysis of the three choices suggests that combination of advertising and marketing as well as operations would certainly not be a feasible relocation because of the large differences between the two departments although that presently Lewis is managing both. While separation of the manufacturing function might have been a desirable move for the advertising and marketing department, the reality that it would suggest positioning a 3rd feature under Lewis's wing suggests this should be prevented. The assimilation of the marketing division is the most effective alternative in regards to obtaining the optimal results from the division. An activity prepare for this alternative is talked about listed below.

Activity Strategy.
Lewis will certainly take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

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

Manufacturing function will continue to be component of advertising and marketing under marketing function.

Lewis will certainly divide herself from operations.

A democratic management design with employee empowerment will certainly be utilized in advertising division.

Open up door policy and focus on cross department communication will be aimed at eliminating discord.

Contingency strategy.

If the combination does not work out as planned, a contingency strategy would follow which would certainly divide the manufacturing feature from the advertising function to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing department without an SVP. Because case the manufacturing function will most definitely be separated by positioning it under an SVP production.