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Federal Bank Dividend Discount Valuation Case Study Solution

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Federal Bank Dividend Discount Valuation Case Study Solution

Background and Facts

Federal Bank Dividend Discount Valuation a workplace products store for little and average sized businesses has actually just recently been associated with planning for a merger with its competitor Residence Deport, which has actually affected effectiveness levels in departmentswith the elderly manager associated with lawful problems presented by the government Profession Commission. With the Advertising Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the duty in the future. With challenges in the form of a prospective social adjustment as well as low staff member morale, the company needs a complete reengineering initiative at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The potential social change at the advertising and marketing division of Federal Bank Dividend Discount Valuation is enhancing uncertainty in the working environment causing numerous difficulties for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing tactical choices since Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Profession Compensation's intervention at the same time. Offered the fact that the store has a worldwide presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations might have the ability to influence efficiency or calculated goals. Federal Profession Compensation's antitrust match versus the merger occupied beneficial time of the organization's elderly monitoring recommending that 'political' factors can have major ramifications for a worldwide company.

Economic Factors: Economic factors such as the emergence of small businesses in the international situation recommend that Federal Bank Dividend Discount Valuation is growing in a setting where there is possible development of services. Reality that store consumers are primarily looking for office materials for residence offices suggests that the market has a rising fad of entrepreneurs and also house based companies.

Social factors: Social trends in the economic climate reveal that clients are searching for comfort in addition to attractive rates. Marketing research shows how the client for Federal Bank Dividend Discount Valuation does not have recognition concerning locating remedies which can supply a mix of convenience as well as affordable.

Technical factors: Technology plays an important duty in Federal Bank Dividend Discount Valuation's organisation technique particularly as the company is piloting Modern technology centers which would provide modern technology sales and support in the type of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Organizational Actions problems can be seen in Federal Bank Dividend Discount Valuation's case as highlighted in this area.

Worries concerning social modification: There is uneasiness about a social change that would occur as soon as Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with most of the personnel already revealing discontent over this prospective step. This predicted change has created anxiety in the office which has been coupled with the previous stress of preparing the company for a prospective merging with Home Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is lack of employees that can match the stressful setting of a busy company. Not only does this cause difficulty in finding the right individuals, it puts stress on brand-new hires as can not hold up against the rate and also stress that the organization anticipates them to birth.

Twin Reporting Lines: Novices locate this business society cumbersome and tough to manage particularly as populated line connections are implied to be weaker as a whole and unbiased setting and also performance assessment is still done by the solid line manager. This suggests that beginners can shed clearness regarding their particular functions as well as goals especially as dotted line coverage does not keep them in direct interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been guessed that the latter would certainly take Krasnow's setting came as a blow to her spirits. Lewis may have been capable and suitable for the task however the reality that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from solutions.

Anxiety & Job Insecurity: Worry as well as insecurity can be identified as 2 major worries that Lewis would certainly be taking care of especially as the merger has now be terminated as well as 2 senior executives of the marketing division would be leaving. The entire duty of the division would certainly be falling on Lewis's shoulders who would not simply be in charge of brining about a cultural change yet would certainly also need to confirm herself in her new role.

Inappropriate Administration Style of Leader: Lewis's management style as well as its incompatibility with the advertising and marketing division's role can additionally be seen as an OB difficulty especially as she has actually been utilized to taking care of issues in the operations department where employees are instructed to focus on processes and also obtain them right. The advertising department on the other hand can be viewed as a group of individuals who are made use of to being nurtured by Krasnow that concentrated a lot more on output than procedures.

Interdepartmental Arguments: Interdepartmental disputes between three departments, marketing, merchandizing and procedures respectively over the allocation of the marketing mix can be recognized as one more OB problem. Although the advertising division does not share the exact same vision as the other 2 divisions concerning the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and operations departments do not agree over the advertising mix allotment among one another either.

Disintegration in Advertising Division: Fragmentation between the advertising and marketing departments can be determined as another OB problem which might require further focus. The reality that the advertising and marketing areas in the advertising division are separated is avoiding both divisions from obtaining from each other's experience and proficiency. Combination of advertising with merchandising as well as procedures would certainly become more difficult if the advertising division itself is broken down which can be another prospective OB worry.

Federal Bank Dividend Discount Valuation Analysis

Different theories have actually been made use of to clarify the conditions to obtain further clearness regarding the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers believe that subordinates are passive as well as careless, have little aspiration and also withstand adjustment. The tough variation of this theory highlighted browbeating, limited controls, dangers as well as punishments. In time it generates reduced productivity, subtle sabotage and competition (Bargain, 2003). The scenario at Federal Bank Dividend Discount Valuation is not completely adhering to Concept X, it can be seen that new hires are discovering this setting instead stressful which may at some point lead to a higher inclination of the management in the direction of Concept X. As per McGregor's advocated view, which he called Concept Y, the essential task of the management is to set up organizational conditions to ensure that people can attain their own goals best by guiding their efforts in the direction of business rewards. If people discover no complete satisfaction in their job, the administration would certainly have little option however to depend on theory X as well as outside control (Deal, 2003). Even while evaluating Lewis's management design, concept X may have been suitable in the operations department somewhat however the Marketing department would certainly require dependence on Concept Y in order to get the creative thinking as well as originality from the groups.

Tuckman's Teamwork Theory: Regarding Lewis's issue regarding bringing harmony between the advertising and marketing division is concerned, this would originally lead to clash as reviewed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's theory displayed in appendix 3, during the preliminary stage of team growth, individuals might not bond, as they are active discovering their location in the team. By combining the marketing and advertising department's work, there might coincide initial separate which might cause the 2nd stage of 'storming' where the teams challenge one another. It is just during the third phase or 'norming' when they would certainly come together to share ideas before the group can bring about synergy in the fourth phase 'doing'.

When individuals are provided with change, they enter stage one as well as so there might be feelings like despair, unpredictability, aggravation, rage, worry, denial and disorientation.The situation at the advertising and marketing department of Federal Bank Dividend Discount Valuation is similar so Lewis can obtain comfy with the idea that it is not phenomenal actions. It is during this phase that Lewis will have to give assistance to the department so that they can discover a sense of direction. It can be seen just how Krasnow has actually already made this transition less complicated by making Lewis obtain included in the department a year prior to his real separation.
Vrio Analysis
Maslow's Need hierarchy: The OB concern pertaining to insecurity at the office has been set off firstly by the adjustment in administration and secondly by the reality that the merging will no longer be launched. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has goes over the relevance of 'safety requires as being a reduced level demand of a human for causing inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the need to feel safe and secure and also untouched' goes to the 2nd degree of demands. Before a worker can be made to develop psychologically, he needs to have his 'Physical 'and 'Safety and security' requires satisfied. This suggests that unless the workers are made to feel protected about their present employment status in Federal Bank Dividend Discount Valuation they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Federal Bank Dividend Discount Valuation Case Study



Ramification of Analysis.

The OB analysis has actually taken a look at various concepts to understand exactly how to handle the present circumstance at hand. The following three choices have actually been recommended to assist Lewis take care of the organizational challenges in the advertising department. Each of these options has been proposed for relieving the transition required to bring the marketing division in accordance with the requirements of the marketplace as well as for making the social adjustment that would adhere to as soon as the existing leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and Manufacturing functions. Combination of Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merging days has experience in business-to-business advertising along with agency and retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both advertising and marketing and marketing functions.

The advantage of this strategy is that it will integrate both functions while decreasing the need for working with an added resource for advertising and marketing. Along with this, Lewis would be heading the advertising and marketing department as well as in any case her substitute would certainly be required for the existing role that she is executing. The disadvantage of this alternative is that exterior hiring might bring about animosity from internal personnel that might be considering the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Manufacturing: Provided the competitive stress and high quality job called for from the advertising agency, it is advised that Lewis must allow the manufacturing unit to be a separate function from the advertising device. Given that the majority of advertising companies had these two functions as different units, it makes even more feeling to follow the norm.

Assimilation of Advertising with Operations: Because Lewis is already taking treatment of the marketing and procedures departments at the same time; it makes sense to incorporate the two features considering that she has been successfully taking treatment of both ends. The truth that Lewis has to adapt her administration style for the advertising and marketing department recommends that these two divisions would be culturally diverse.

Referral.



An examination of the three options indicates that combination of advertising and marketing as well as operations would not be a viable move due to the substantial differences between the 2 divisions regardless of the fact that presently Lewis is handling both. While splitting up of the production function may have been a favorable relocation for the marketing division, the reality that it would certainly indicate putting a 3rd function under Lewis's wing implies this need to be prevented.

Activity Strategy.
Recommendation
Lewis will take over the role of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Manufacturing function will stay part of marketing under advertising and marketing function.

Lewis will certainly separate herself from procedures.

An autonomous leadership style with worker empowerment will certainly be used in marketing division.

Open door policy and also emphasis on cross departmental communication will certainly be targeted at eliminating discord.

Contingency strategy.

If the combination does not exercise as prepared, a backup strategy would adhere to which would certainly divide the manufacturing function from the advertising and marketing function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising division without an SVP. In that case the production function will certainly be separated by placing it under an SVP manufacturing.