Fands Investments Understanding Financial Data Case Study Solution


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Background and Facts

Fands Investments Understanding Financial Data an office supplies merchant for little as well as average sized companies has lately been associated with planning for a merger with its rival House Deport, which has affected effectiveness degrees in departmentswith the elderly supervisor associated with legal problems presented by the government Profession Compensation. With the Advertising Head advancing the news of his separation from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the duty in the near future. With challenges in the form of a prospective social change as well as low employee spirits, the company needs a total reengineering initiative at the advertising division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible social change at the marketing division of Fands Investments Understanding Financial Data is enhancing unpredictability in the workplace resulting in different challenges for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing strategic decisions considering that Stapes Inc. had to abandon its strategies of combining with Office Deport after the Federal Trade Commission's treatment while doing so. Offered the truth that the shop has an international visibility with branches in UK, USA, Canada and Germany, political factors in each of these countries may be able to influence performance or strategic goals. Federal Profession Compensation's antitrust suit versus the merger occupied useful time of the company's senior management recommending that 'political' factors can have major effects for an international company.

Economic Factors: Financial factors such as the development of local business in the global situation suggest that Fands Investments Understanding Financial Data is growing in an atmosphere where there is prospective development of services. In addition to this, fact that store consumers are mostly searching for workplace materials for office suggests that the market has a rising trend of entrepreneurs as well as online services.

Social factors: Social trends in the economic climate reveal that consumers are trying to find ease along with eye-catching prices. Marketing research demonstrates how the customer for Fands Investments Understanding Financial Data does not have understanding regarding locating options which can provide a mix of comfort as well as inexpensive.

Technological factors: Modern technology plays a crucial duty in Fands Investments Understanding Financial Data's service method particularly as the organization is piloting Modern technology facilities which would use modern technology sales and also support in the type of memory upgrades, outer setups. (Summary of PARASITE in appendix 2).

OB Issues and also Symptoms.

A number of underlying Business Habits concerns can be seen in Fands Investments Understanding Financial Data's case as highlighted in this section.

Uneasiness about cultural adjustment: There is uneasiness about a cultural change that would take place as soon as Todd Krasnow leaves from his setting as the Exec Vice President of Marketing with most of the team member currently showing unhappiness over this potential action. This expected change has actually developed stress and anxiety in the office which has been paired with the past tension of preparing the company for a possible merging with Residence Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is shortage of employees that can match the difficult environment of a fast-paced company. Not only does this result in problem in finding the ideal individuals, it places stress on new hires as can not withstand the rate as well as stress that the organization expects them to bear.

Double Reporting Lines: Beginners discover this organizational society cumbersome as well as difficult to manage specifically as populated line connections are implied to be weak generally and also objective setting as well as performance examination is still done by the solid line manager. This suggests that newbies could lose clarity about their particular roles and also goals specifically as populated line coverage does not keep them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles despite the fact that it had been hypothesized that the latter would certainly take Krasnow's position came as a strike to her spirits. Lewis may have been capable and also ideal for the work yet the reality that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Work Instability: Concern and insecurity can be recognized as two significant worries that Lewis would certainly be dealing with specifically as the merging has currently be terminated and 2 senior execs of the advertising division would be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders that would certainly not just supervise of brining about a cultural adjustment however would certainly also have to show herself in her brand-new role.

Incompatible Monitoring Style of Leader: Lewis's management design and also its incompatibility with the advertising division's role can likewise be seen as an OB difficulty especially as she has actually been used to managing issues in the operations department where workers are taught to focus on procedures as well as get them. The marketing division on the various other hand can be viewed as a team of people who are used to being supported by Krasnow who focused a lot more on output than procedures.

Interdepartmental Disagreements: Interdepartmental disputes between three departments, advertising, merchandizing as well as procedures specifically over the allocation of the advertising mix can be identified as an additional OB concern. The marketing department does not share the same vision as the other two divisions concerning the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and operations departments do not agree over the marketing mix appropriation amongst one another either.

Disintegration in Advertising And Marketing Department: Fragmentation between the marketing and advertising departments can be determined as one more OB issue which can need additional attention. The truth that the marketing and advertising sections in the marketing division are disconnected is protecting against both departments from acquiring from each other's experience and also know-how. Integration of advertising with merchandising as well as procedures would certainly end up being harder if the advertising department itself is disintegrated which can be another potential OB concern.

Fands Investments Understanding Financial Data Analysis

Various theories have actually been utilized to discuss the situations to get more clearness regarding the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most supervisors believe that juniors are easy and careless, have little aspiration and also withstand modification. The hard version of this concept emphasized browbeating, tight controls, hazards as well as penalties. Gradually it creates low efficiency, refined sabotage as well as competition (Offer, 2003). Although the circumstance at Fands Investments Understanding Financial Data is not completely following Concept X, it can be seen that new hires are discovering this atmosphere instead stressful which might eventually lead to a greater inclination of the administration in the direction of Theory X. Based on McGregor's supported view, which he called Theory Y, the essential job of the monitoring is to arrange business conditions so that individuals can achieve their very own goals best by guiding their efforts in the direction of business incentives. If people discover no fulfillment in their job, the administration would have little selection however to depend on concept X and outside control (Deal, 2003). Even while analyzing Lewis's administration design, concept X may have appropriated in the procedures department somewhat but the Advertising and marketing department would call for dependence on Concept Y so as to get the creative thinking and creativity from the groups.

Tuckman's Team effort Concept: As much as Lewis's issue regarding bringing consistency in between the marketing and also advertising division is concerned, this would initially lead to clash as discussed by Bruce Tuckman in his 'Synergy Concept'. By combining the marketing as well as marketing division's job, there might be the exact same first separate which might lead to the second phase of 'storming' where the teams test one another.

When individuals are offered with modification, they go into phase one as well as so there might be emotions like despair, unpredictability, disappointment, temper, concern, rejection as well as disorientation.The scenario at the advertising and marketing department of Fands Investments Understanding Financial Data is comparable so Lewis can get comfy with the concept that it is not amazing behavior. It is throughout this stage that Lewis will have to provide advice to the department so that they can locate a feeling of instructions. It can be seen exactly how Krasnow has actually currently made this change less complicated by making Lewis obtain entailed in the division a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has goes over the importance of 'safety needs as being a reduced level requirement of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and out of danger' is at the second degree of demands. Prior to an employee can be made to establish mentally, he needs to have his 'Physiological 'and 'Security' requires met.

SWOT Analysis for Fands Investments Understanding Financial Data Case Study

Implication of Analysis.

The OB analysis has actually looked at different theories to recognize how to manage the current circumstance available. The following three choices have been suggested to aid Lewis deal with the business obstacles in the advertising and marketing department. Each of these options has been recommended for relieving the shift needed to bring the advertising division in accordance with the demands of the market as well as for making the cultural change that would follow when the current leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting and also Manufacturing functions. Assimilation of Marketing with Operations.

Analysis of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merging days has proficiency in business-to-business marketing along with firm and also retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both marketing and advertising and marketing functions.

The benefit of this strategy is that it will certainly incorporate both features while reducing the need for working with an extra resource for advertising and marketing. Lewis would be heading the advertising and marketing department and also in any case her replacement would certainly be needed for the existing duty that she is performing. The disadvantage of this alternative is that outside hiring may bring about bitterness from inner workers who might be considering the setting of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Manufacturing: Provided the affordable stress and high quality work required from the advertising and marketing company, it is suggested that Lewis must permit the production unit to be a different feature from the advertising unit. Since a lot of marketing firms had these two features as separate devices, it makes more sense to adhere to the standard.

Assimilation of Marketing with Procedures: Considering that Lewis is already dealing with the advertising as well as operations departments concurrently; it makes sense to integrate both features considering that she has been successfully dealing with both ends. The fact that both departments currently have significant differences over appropriation of resources recommends that this integration might be able to cause consistency specifically as Lewis would certainly be heading both ends.However there are different negative aspects of this action particularly as it would place way too much burden over Lewis's shoulders. The fact that Lewis has to adapt her monitoring design for the advertising department suggests that these two divisions would certainly be culturally varied. Lewis might not be able to apply one kind of leadership design to both departments which could result in inadequacy in either one of the 2 functions.


An analysis of the 3 alternatives suggests that integration of marketing and operations would not be a possible relocation because of the large differences in between the two divisions despite the fact that presently Lewis is handling both. While splitting up of the manufacturing function might have been a favorable relocation for the marketing division, the truth that it would certainly mean positioning a 3rd feature under Lewis's wing means this should be prevented too. The combination of the advertising and marketing department is the very best alternative in regards to obtaining the optimal arise from the division. An action plan for this option is talked about below.

Activity Strategy.
Lewis will take over the function of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

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

Lewis will certainly divide herself from operations.

A democratic management style with worker empowerment will be used in advertising department.

Open up door policy as well as emphasis on cross departmental interaction will certainly be aimed at eliminating discord.

Backup plan.

If the integration does not work out as prepared, a contingency plan would certainly adhere to which would divide the manufacturing feature from the advertising function to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the marketing department without an SVP. Because case the manufacturing feature will most definitely be divided by placing it under an SVP manufacturing.