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Dividend Policy At Fuyao Glass Case Study Help

CASE SOLUTION

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Dividend Policy At Fuyao Glass Case Study Help

Background and Facts

Dividend Policy At Fuyao Glass a workplace products store for little and also moderate sized companies has lately been associated with planning for a merger with its competitor Home Deport, which has actually affected effectiveness degrees in departmentswith the elderly manager involved in legal complications put forth by the government Profession Commission. With the Advertising Head advancing the information of his departure from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the function in the future. With difficulties in the type of a potential social modification as well as reduced 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 prospective social change at the advertising department of Dividend Policy At Fuyao Glass is enhancing unpredictability in the working environment resulting in different 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 impacting strategic decisions since Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Trade Payment's treatment at the same time. Offered the fact that the shop has a worldwide presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries might be able to impact performance or critical goals. Federal Profession Payment's antitrust fit against the merging used up important time of the organization's elderly administration recommending that 'political' factors can have severe effects for an international service.

Economic Factors: Economic factors such as the appearance of small businesses in the worldwide circumstance suggest that Dividend Policy At Fuyao Glass is growing in an environment where there is potential development of businesses. In addition to this, reality that shop clients are primarily searching for workplace products for home offices suggests that the market has a climbing pattern of business owners as well as home organisations.

Social factors: Social fads in the economic situation show that consumers are seeking ease along with attractive rates. Marketing research shows how the customer for Dividend Policy At Fuyao Glass lacks understanding concerning locating remedies which can supply a mix of convenience and inexpensive.

Technical factors: Modern technology plays a crucial duty in Dividend Policy At Fuyao Glass's organisation technique especially as the company is piloting Innovation centers which would certainly offer innovation sales as well as support in the form of memory upgrades, outer setups. (Summary of BUG in appendix 2).

OB Issues as well as Effects.

Numerous underlying Organizational Habits issues can be seen in Dividend Policy At Fuyao Glass's case as highlighted in this section.

Concerns about cultural adjustment: There is apprehension concerning a social change that would happen when Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with the majority of the staff members already revealing unhappiness over this possible relocation. This expected modification has created anxiety in the office which has been coupled with the past tension of preparing the firm for a possible merger with House Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is lack of employees that can match the demanding environment of a fast-paced organization. Not only does this result in trouble in locating the ideal individuals, it puts tension on new hires as can not hold up against the speed and also stress that the company anticipates them to bear.

Dual Reporting Lines: Novices discover this organizational society difficult as well as hard to cope with specifically as populated line relationships are meant to be weak as a whole and also unbiased setup and also performance examination is still done by the strong line supervisor. This indicates that newcomers can lose clearness regarding their corresponding duties and purposes especially as dotted line reporting does not maintain them in direct communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had been hypothesized that the latter would take Krasnow's setting came as a strike to her morale. Lewis might have been capable and appropriate for the job but the fact that Kransnow's departure would make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Job Insecurity: Worry and also insecurity can be recognized as two major problems that Lewis would certainly be taking care of particularly as the merging has actually now be terminated as well as 2 senior execs of the advertising and marketing department would certainly be leaving. The whole obligation of the department would certainly be falling on Lewis's shoulders who would not simply supervise of brining about a social change however would also need to verify herself in her brand-new duty.

Incompatible Monitoring Style of Leader: Lewis's management style and also its incompatibility with the advertising and marketing department's duty can additionally be viewed as an OB challenge particularly as she has actually been made use of to managing issues in the procedures division where personnel are instructed to focus on procedures and obtain them right. The marketing division on the other hand can be viewed as a team of people that are used to being nurtured by Krasnow who concentrated extra on result than processes.

Interdepartmental Disagreements: Interdepartmental disagreements in between 3 divisions, marketing, merchandizing as well as operations respectively over the appropriation of the advertising and marketing mix can be recognized as one more OB concern. Although the advertising department does not share the very same vision as the various other 2 divisions relating to the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and also procedures divisions do not agree over the advertising mix allocation among one another either.

Disintegration in Marketing Division: Fragmentation in between the marketing and advertising departments can be identified as one more OB issue which could require additional attention. The fact that the marketing and advertising sections in the advertising and marketing department are detached is avoiding both divisions from obtaining from each various other's experience as well as expertise. Assimilation of advertising with merchandising as well as operations would certainly end up being harder if the advertising and marketing department itself is disintegrated which can be another possible OB problem.

Dividend Policy At Fuyao Glass Analysis

Different concepts have actually been made use of to describe the circumstances to get more clarity concerning the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers think that juniors are passive and also careless, have little passion and also resist modification. The scenario at Dividend Policy At Fuyao Glass is not totally adhering to Theory X, it can be seen that brand-new hires are finding this setting rather demanding which may ultimately lead to a higher inclination of the management in the direction of Theory X. Also while evaluating Lewis's management design, concept X might have been appropriate in the procedures division to some extent however the Advertising and marketing division would certainly require reliance on Concept Y in order to obtain the imagination as well as creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's worry concerning bringing harmony between the advertising and advertising department is concerned, this would at first lead to contrast as talked about by Bruce Tuckman in his 'Teamwork Concept'. By integrating the advertising and also marketing department's job, there might be the exact same first disconnect which could lead to the second stage of 'storming' where the groups test one another.

Bridges' Change Model: Based On William Bridge's theory (appendix 4), individuals are rather uneasy with change, which is evident by the scenario at Dividend Policy At Fuyao Glass The situation can be viewed as a typical program of life if is studied as per Bridge's theory where he explains that people go through 3 phases of transition when they experience adjustment. 'Ending, losing as well as Letting go', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people are presented with modification, they go into phase one and so there might be feelings like unhappiness, uncertainty, irritation, rage, worry, rejection and disorientation.The scenario at the marketing department of Dividend Policy At Fuyao Glass is similar so Lewis can obtain comfy with the suggestion that it is not phenomenal habits. In the second stage, there might be a need to link the space in between the brand-new and also old culture so Lewis might need to face this ordeal when Krasnow leaves. There might be low spirits and also low productivity at this phase which need to not be taken as a trouble. It is throughout this phase that Lewis will certainly have to offer guidance to the division to ensure that they can find a sense of direction. It can be seen just how Krasnow has actually already made this shift much easier by making Lewis get associated with the division a year before his real separation. According to Bridges' Version, phase three will certainly produce visibility to learning, High power as well as dedication as people will accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has discusses the relevance of 'security requires as being a lower degree requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel safe and out of danger' is at the 2nd degree of demands. Prior to an employee can be made to develop psychologically, he needs to have his 'Physiological 'and 'Safety' requires satisfied.

SWOT Analysis for Dividend Policy At Fuyao Glass Case Study



Effects of Analysis.

The OB analysis has actually checked out different theories to understand just how to handle the existing scenario available. The complying with three choices have been recommended to help Lewis deal with the business challenges in the advertising department. Each of these options has been recommended for easing the shift needed to bring the marketing division according to the requirements of the marketplace and for making the social adjustment that would certainly follow as soon as the existing leader leaves.

Integration of advertising and marketing features. Dividing Adverting and Manufacturing features. Integration of Marketing with Workflow.

Analysis of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merging days has experience in business-to-business advertising and marketing along with company and also retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to handle both marketing and also marketing functions.

The advantage of this technique is that it will certainly incorporate the two features while minimizing the need for employing an additional source for advertising and marketing. Lewis would certainly be heading the advertising department as well as in any kind of case her substitute would certainly be required for the current function that she is performing. The negative aspect of this alternative is that exterior hiring may produce bitterness from inner employees that may be looking at the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and Production: Provided the competitive pressures and excellent quality work called for from the advertising agency, it is recommended that Lewis needs to enable the production unit to be a separate feature from the marketing system. Because many advertising agencies had these two features as different units, it makes more sense to adhere to the norm. Both functions may be able to concentrate on their core triggers a lot more successfully. The disadvantage of this technique would certainly be that additional expenses would certainly have to be borne for establishing up separate manufacturing functions. In addition to this, a production head might need to be worked with which might boost expenses for the company.

Combination of Marketing with Procedures: Considering that Lewis is already taking care of the advertising and marketing as well as procedures divisions simultaneously; it makes sense to incorporate the 2 features given that she has actually been effectively taking care of both ends. The reality that Lewis has to adapt her administration style for the advertising division recommends that these two divisions would be culturally varied.

Recommendation.



An evaluation of the three options suggests that integration of advertising and marketing as well as operations would not be a possible relocation due to the large differences between the two divisions regardless of the reality that currently Lewis is managing both. While separation of the manufacturing feature might have been a favorable move for the advertising department, the fact that it would indicate positioning a 3rd feature under Lewis's wing indicates this need to be stayed clear of.

Activity Plan.
Recommendation
Lewis will take control of the role of EVP 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 marketing and advertising.

Manufacturing function will certainly remain component of advertising under advertising function.

Lewis will divide herself from operations.

A democratic management style with staff member empowerment will certainly be used in advertising division.

Open up door policy and also emphasis on cross departmental interaction will certainly be aimed at getting rid of disharmony.

Contingency plan.

If the assimilation does not work out as intended, a contingency plan would follow which would separate the manufacturing function from the marketing feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising division without an SVP. In that case the production function will definitely be divided by positioning it under an SVP manufacturing.