Fedex And Pension Accounting Case Study Solution


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Fedex And Pension Accounting Case Study Help

Background and Facts

Fedex And Pension Accounting an office supplies merchant for small as well as moderate sized companies has actually recently been associated with preparing for a merging with its competitor Residence Deport, which has actually impacted effectiveness degrees in departmentswith the elderly supervisor involved in lawful complications presented by the government Profession Compensation. With the Advertising and marketing Head putting forward the news of his departure from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the role in the near future. With obstacles in the type of a possible social adjustment as well as low staff member spirits, the company requires a full reengineering initiative at the advertising division.

Issue Statement
Porter's 5 Forces Analysis
The prospective social modification at the advertising and marketing division of Fedex And Pension Accounting is enhancing unpredictability in the working environment leading to numerous obstacles for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing strategic decisions since Stapes Inc. had to abandon its strategies of combining with Office Deport after the Federal Profession Commission's treatment in the process. Offered the truth that the store has a global existence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these countries may be able to influence performance or critical goals. Federal Trade Compensation's antitrust fit against the merging used up valuable time of the organization's senior management recommending that 'political' factors can have major ramifications for an international business.

Economic Factors: Financial factors such as the introduction of small companies in the global circumstance recommend that Fedex And Pension Accounting is prospering in a setting where there is potential growth of services. Fact that shop consumers are mainly looking for office products for home offices recommends that the market has an increasing trend of entrepreneurs as well as home based companies.

Social factors: Social trends in the economic climate show that clients are searching for benefit along with appealing rates. Marketing research demonstrates how the client for Fedex And Pension Accounting lacks understanding regarding finding solutions which can supply a mix of benefit as well as affordable.

Technological factors: Innovation plays a crucial duty in Fedex And Pension Accounting's business approach specifically as the organization is piloting Technology centers which would certainly supply modern technology sales as well as support in the type of memory upgrades, peripheral setups. (Summary of BUG in appendix 2).

OB Issues and also Symptoms.

A number of underlying Business Habits problems can be seen in Fedex And Pension Accounting's case as highlighted in this area.

Worries about cultural adjustment: There is uneasiness about a cultural change that would happen once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with the majority of the staff members currently showing unhappiness over this possible relocation. This anticipated adjustment has developed stress in the office which has been paired with the previous tension of preparing the firm for a prospective merger with Residence Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is scarcity of employees that can match the demanding atmosphere of a hectic organization. Not just does this cause trouble in discovering the ideal people, it puts tension on new hires as can not withstand the pace and also stress that the organization expects them to bear.

Double Reporting Lines: Beginners locate this organizational culture cumbersome and challenging to deal with specifically as dotted line partnerships are suggested to be weak generally as well as unbiased setup and also efficiency analysis is still done by the strong line manager. This indicates that newcomers can lose clearness concerning their respective roles and also purposes specifically as populated line reporting does not maintain 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 even though it had actually been hypothesized that the last would take Krasnow's setting came as a blow to her morale. Lewis may have been capable and proper for the job yet the fact that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Task Insecurity: Fear and also insecurity can be recognized as two major problems that Lewis would be taking care of particularly as the merger has actually now be cancelled as well as two senior executives of the marketing department would certainly be leaving. The entire responsibility of the division would be falling on Lewis's shoulders that would certainly not just supervise of brining regarding a social adjustment yet would certainly likewise need to confirm herself in her brand-new role.

Inappropriate Monitoring Design of Leader: Lewis's management design and also its conflict with the advertising department's role can also be viewed as an OB obstacle specifically as she has actually been made use of to taking care of concerns in the operations department where personnel are instructed to concentrate on processes as well as get them right. The marketing department on the other hand can be seen as a group of people who are made use of to being nurtured by Krasnow who focused more on output than processes.

Interdepartmental Disputes: Interdepartmental disagreements in between 3 departments, advertising, merchandizing as well as operations respectively over the allocation of the advertising and marketing mix can be recognized as one more OB worry. The advertising department does not share the very same vision as the various other 2 divisions regarding the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and operations departments do not agree over the advertising and marketing mix allowance among one another either.

Fragmentation in Advertising And Marketing Department: Fragmentation in between the advertising and marketing divisions can be identified as one more OB problem which can need additional attention. The reality that the marketing and advertising sections in the marketing division are separated is avoiding both divisions from getting from each other's experience and knowledge. Integration of advertising and marketing with retailing and also procedures would certainly come to be harder if the advertising and marketing division itself is disintegrated which can be an additional prospective OB concern.

Fedex And Pension Accounting Analysis

Different theories have been made use of to discuss the scenarios to obtain further quality about the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that staffs are easy and lazy, have little passion and also withstand change. The hard variation of this concept stressed coercion, tight controls, threats as well as punishments. In time it produces low performance, refined sabotage and also competition (Deal, 2003). The situation at Fedex And Pension Accounting is not totally complying with Theory X, it can be seen that brand-new hires are finding this setting instead stressful which might ultimately lead to a greater inclination of the management in the direction of Concept X. According to McGregor's advocated view, which he called Theory Y, the essential task of the monitoring is to set up business problems so that individuals can attain their own goals best by routing their efforts in the direction of business rewards. If individuals locate no satisfaction in their work, the monitoring would have little selection but to count on theory X as well as external control (Bargain, 2003). Even while assessing Lewis's management style, concept X may have appropriated in the procedures division somewhat but the Advertising and marketing division would need reliance on Theory Y so as to get the creativity as well as creativity from the groups.

Tuckman's Team effort Theory: As far as Lewis's concern concerning bringing harmony in between the marketing as well as advertising and marketing division is worried, this would initially lead to conflict as reviewed by Bruce Tuckman in his 'Teamwork Concept'. By integrating the advertising and marketing as well as advertising division's job, there might be the exact same first separate which can lead to the second stage of 'storming' where the teams test one an additional.

When people are provided with modification, they go into stage one and also so there might be emotions like unhappiness, uncertainty, aggravation, temper, concern, rejection and also disorientation.The scenario at the marketing department of Fedex And Pension Accounting is similar so Lewis can obtain comfy with the suggestion that it is not remarkable actions. It is during this stage that Lewis will have to offer guidance to the department so that they can discover a feeling of instructions. It can be seen how Krasnow has actually currently made this change less complicated by making Lewis get included in the department a year before his real separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has discusses the significance of 'security requires as being a reduced degree need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel protected and also out of danger' is at the 2nd degree of requirements. Before a staff member can be made to establish mentally, he needs to have his 'Physical 'as well as 'Safety and security' requires satisfied.

SWOT Analysis for Fedex And Pension Accounting Case Study

Effects of Analysis.

The OB analysis has actually considered various concepts to understand how to manage the current circumstance available. The adhering to three alternatives have actually been proposed to help Lewis take care of the organizational obstacles in the marketing department. Each of these options has actually been proposed for relieving the shift needed to bring the marketing department according to the demands of the market as well as for making the cultural change that would comply with as soon as the existing leader leaves.

Assimilation of advertising and marketing features. Separating Adverting and Production features. Integration of Advertising with Operations.

Analysis of Alternatives.

Combination of Advertising & Advertising And Marketing Functions: The internal marketing agency of Fedex And Pension Accounting is already strength for the company in regards to saving up on expenses connected to marketing as well as promo. Considering that no new recruitment has actually been done after Bridget Cole's separation with the coverage line being straight appointed to Krasnow for the advertising feature, this is a beneficial opportunity for incorporating the marketing and advertising features. Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merger days has expertise in business-to-business advertising along with agency and also retail advertising and marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both marketing and advertising functions.

The benefit of this strategy is that it will incorporate both functions while decreasing the requirement for employing an extra source for advertising. In addition to this, Lewis would be heading the marketing department and also all the same her replacement would be required for the current role that she is executing. The negative aspect of this option is that external hiring may produce animosity from interior employees who may be eying the placement of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and also Production: Offered the affordable pressures as well as high top quality job required from the marketing company, it is suggested that Lewis should permit the production system to be a different function from the advertising system. Considering that most marketing agencies had these 2 features as separate units, it makes even more feeling to adhere to the norm.

Integration of Advertising with Workflows: Because Lewis is currently looking after the advertising and marketing and operations divisions all at once; it makes good sense to incorporate both features because she has been effectively taking care of both ends. The fact that both divisions already have significant distinctions over allowance of resources suggests that this integration may have the ability to cause consistency specifically as Lewis would certainly be heading both ends.However there are various downsides of this step especially as it would put way too much worry over Lewis's shoulders. The truth that Lewis has to adapt her administration design for the advertising division recommends that these 2 departments would certainly be culturally varied. In addition to this, Lewis might not be able to apply one type of leadership style to both departments which could cause ineffectiveness in either among the two features.


An analysis of the 3 choices suggests that integration of advertising and operations would not be a practical relocation due to the substantial differences between the 2 departments regardless of the fact that presently Lewis is managing both. While separation of the manufacturing feature might have been a favorable move for the advertising and marketing department, the truth that it would suggest putting a third feature under Lewis's wing implies this should be prevented.

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

Marketing and advertising functions would certainly be merged.

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

Manufacturing feature will continue to be part of advertising and marketing under advertising and marketing feature.

Lewis will divide herself from operations.

An autonomous management design with staff member empowerment will certainly be made use of in advertising division.

Open door policy and also focus on cross departmental interaction will certainly be targeted at getting rid of disharmony.

Contingency strategy.

If the integration does not work out as planned, a contingency plan would comply with which would certainly separate the production feature from the marketing function to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising division without an SVP. In that case the manufacturing feature will most definitely be divided by positioning it under an SVP production.