Financial Performance Measurement For The 21st Century Case Study Analysis


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Financial Performance Measurement For The 21st Century Case Study Analysis

Background and Facts

Financial Performance Measurement For The 21st Century a workplace supplies store for tiny and also medium sized organisations has recently been involved in preparing for a merger with its rival Residence Deport, which has influenced effectiveness levels in departmentswith the elderly manager associated with legal complications put forth by the government Trade Payment. With the Marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the near future. With difficulties in the type of a potential social adjustment and also low worker spirits, the company requires a full reengineering effort at the marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The possible social adjustment at the advertising division of Financial Performance Measurement For The 21st Century is increasing unpredictability in the workplace leading to numerous challenges 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 significant function in impacting critical choices given that Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Profession Payment's intervention in the process. Offered the fact that the store has a worldwide existence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations may have the ability to impact efficiency or calculated goals. Federal Trade Compensation's antitrust fit versus the merger took up important time of the organization's senior administration recommending that 'political' factors can have significant ramifications for a worldwide service.

Economic Factors: Economic factors such as the introduction of small businesses in the international situation recommend that Financial Performance Measurement For The 21st Century is thriving in an atmosphere where there is prospective growth of companies. Reality that store customers are mostly looking for workplace products for house offices suggests that the market has a climbing fad of entrepreneurs and house based businesses.

Social factors: Social fads in the economy reveal that clients are looking for comfort in addition to attractive costs. Market research demonstrates how the client for Financial Performance Measurement For The 21st Century lacks recognition regarding locating remedies which can use a mix of convenience as well as low costs.

Technical factors: Technology plays a crucial duty in Financial Performance Measurement For The 21st Century's company approach particularly as the company is piloting Innovation centers which would certainly supply technology sales and assistance in the type of memory upgrades, outer setups. (Recap of PEST in appendix 2).

OB Issues and Symptoms.

A number of underlying Business Habits problems can be seen in Financial Performance Measurement For The 21st Century's case as highlighted in this section.

Uneasiness concerning social change: There is worry regarding a cultural change that would take place when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with the majority of the staff members already showing unhappiness over this potential step. This expected adjustment has produced anxiety in the office which has been combined with the past tension of preparing the company for a possible merger with Home Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is shortage of employees that can match the difficult setting of a busy organization. Not just does this result in trouble in discovering the best people, it puts stress and anxiety on new hires as can not withstand the rate and also stress that the company anticipates them to birth.

Dual Coverage Lines: Beginners find this organizational society troublesome and also challenging to deal with especially as dotted line relationships are indicated to be weaker as a whole and also objective setting and also performance assessment is still done by the solid line supervisor. This means that beginners can lose quality about their corresponding functions as well as purposes specifically as dotted line coverage does not maintain them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had been hypothesized that the last would take Krasnow's position came as a strike to her morale. Lewis may have been capable and appropriate for the task yet the fact that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Task Insecurity: Fear and insecurity can be determined as 2 major problems that Lewis would certainly be handling especially as the merging has now be terminated and 2 elderly executives of the marketing division would be leaving. The whole obligation of the department would certainly be dropping on Lewis's shoulders who would certainly not just supervise of brining about a cultural change yet would additionally have to show herself in her new function.

Incompatible Monitoring Style of Leader: Lewis's management design and also its conflict with the marketing division's role can also be viewed as an OB challenge particularly as she has actually been utilized to taking care of problems in the operations department where employees are shown to focus on processes and also obtain them right. The advertising department on the other hand can be seen as a group of individuals who are made use of to being nurtured by Krasnow who concentrated much more on result than procedures.

Interdepartmental Arguments: Interdepartmental disagreements between three departments, advertising and marketing, merchandizing and procedures specifically over the allowance of the advertising and marketing mix can be identified as another OB issue. Although the advertising department does not share the exact same vision as the other 2 divisions concerning the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and also operations divisions do not concur over the advertising and marketing mix allocation amongst one another either.

Disintegration in Marketing Division: Fragmentation between the advertising and marketing divisions can be identified as one more OB problem which might require more interest. The reality that the marketing and advertising sections in the advertising and marketing department are detached is protecting against both divisions from gaining from each various other's experience as well as knowledge. Assimilation of advertising and marketing with retailing and also procedures would certainly become more difficult if the advertising and marketing department itself is degenerated which can be one more possible OB issue.

Financial Performance Measurement For The 21st Century Analysis

Numerous concepts have been made use of to explain the scenarios to obtain more clarity about the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that juniors are passive as well as lazy, have little passion and stand up to adjustment. The difficult variation of this concept stressed browbeating, limited controls, hazards and penalties. In time it generates reduced performance, refined sabotage as well as competition (Deal, 2003). The situation at Financial Performance Measurement For The 21st Century is not entirely complying with Theory X, it can be seen that new hires are discovering this atmosphere instead stressful which may eventually lead to a higher inclination of the monitoring in the direction of Concept X. Based on McGregor's supported view, which he called Concept Y, the important task of the monitoring is to set up organizational problems so that individuals can accomplish their very own goals best by guiding their efforts in the direction of organizational benefits. If people find no complete satisfaction in their work, the administration would have little choice yet to depend on concept X and outside control (Bargain, 2003). Even while evaluating Lewis's monitoring design, theory X may have been suitable in the operations department somewhat however the Advertising and marketing department would certainly require dependence on Concept Y in order to get the creativity as well as creativity from the teams.

Tuckman's Team effort Concept: As far as Lewis's problem about bringing harmony in between the marketing as well as advertising division is concerned, this would originally lead to clash as talked about by Bruce Tuckman in his 'Teamwork Theory'. By incorporating the marketing and advertising department's job, there might be the same preliminary separate which might lead to the 2nd phase of 'storming' where the teams challenge one another.

Bridges' Shift Model: According To William Bridge's theory (appendix 4), individuals are fairly unpleasant with adjustment, which is noticeable by the scenario at Financial Performance Measurement For The 21st Century The circumstance can be viewed as a typical course of life if is studied based on Bridge's theory where he describes that people go through 3 phases of transition when they experience change. 'Ending, losing and also Releasing', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When people exist with change, they get in phase one therefore there might be emotions like sadness, unpredictability, disappointment, temper, anxiety, rejection and also disorientation.The situation at the advertising and marketing department of Financial Performance Measurement For The 21st Century is comparable so Lewis can obtain comfortable with the concept that it is not phenomenal habits. In the second stage, there might be a need to connect the gap between the new and also old society so Lewis might have to face this ordeal once Krasnow leaves. There might be reduced spirits and low efficiency at this stage which ought to not be taken as an obstacle. It is during this stage that Lewis will have to give assistance to the department to ensure that they can discover an orientation. It can be seen just how Krasnow has currently made this change easier by making Lewis obtain involved in the division a year prior to his actual separation. According to Bridges' Version, stage 3 will certainly produce openness to knowing, High energy and dedication as people will embrace the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the significance of 'security needs as being a lower level demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel safe and secure as well as out of danger' is at the second degree of demands. Before an employee can be made to create emotionally, he requires to have his 'Physiological 'and also 'Security' requires fulfilled.

SWOT Analysis for Financial Performance Measurement For The 21st Century Case Study

Ramification of Analysis.

The OB analysis has actually considered different concepts to comprehend exactly how to cope with the existing situation at hand. The following 3 alternatives have actually been suggested to help Lewis manage the business challenges in the marketing department. Each of these alternatives has been proposed for alleviating the transition needed to bring the marketing department in line with the needs of the market and also for making the cultural adjustment that would comply with when the existing leader leaves.

Integration of marketing and advertising functions. Dividing Adverting as well as Manufacturing features. Integration of Advertising with Workflow.

Analysis of Alternatives.

Assimilation of Advertising And Marketing & Advertising Functions: The internal advertising and marketing company of Financial Performance Measurement For The 21st Century is already toughness for the organization in terms of saving up on expenses connected to marketing as well as promotion. Considering that no new recruitment has actually been done after Bridget Cole's separation with the reporting line being straight assigned to Krasnow for the advertising function, this is a beneficial chance for integrating the advertising and marketing functions. Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merging days has experience in business-to-business advertising and marketing along with company and retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both advertising and marketing features.

The benefit of this strategy is that it will certainly incorporate the two features while minimizing the demand for employing an additional resource for marketing. In addition to this, Lewis would certainly be heading the marketing division and all the same her replacement would be required for the current duty that she is carrying out. The disadvantage of this alternative is that exterior hiring may bring about resentment from inner personnel who might be eying the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and also Manufacturing: Given the competitive stress as well as high quality work needed from the marketing agency, it is advised that Lewis should enable the production unit to be a separate feature from the advertising and marketing system. Since many advertising agencies had these 2 functions as different units, it makes more sense to comply with the norm.

Integration of Marketing with Operations: Because Lewis is currently taking care of the advertising as well as operations departments concurrently; it makes sense to integrate the two features since she has actually been effectively dealing with both ends. The fact that the two divisions currently have significant distinctions over appropriation of resources recommends that this combination may be able to produce harmony specifically as Lewis would certainly be heading both ends.However there are numerous drawbacks of this step particularly as it would certainly place way too much burden over Lewis's shoulders. The truth that Lewis has to adjust her monitoring style for the advertising and marketing department recommends that these two divisions would certainly be culturally varied. Along with this, Lewis might not have the ability to use one type of management style to both departments which might result in inefficiency in either one of the two features.


An assessment of the three options shows that assimilation of marketing and procedures would not be a feasible step as a result of the substantial distinctions between the two divisions despite the fact that currently Lewis is managing both. While separation of the manufacturing feature might have been a beneficial move for the advertising department, the reality that it would certainly indicate positioning a third feature under Lewis's wing means this ought to be prevented. The assimilation of the marketing division is the most effective choice in terms of obtaining the optimum arise from the department. An activity plan for this choice is discussed below.

Action Strategy.
Lewis will take control of the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

Production function will stay component of marketing under advertising and marketing feature.

Lewis will certainly separate herself from operations.

An autonomous leadership design with employee empowerment will certainly be used in marketing division.

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

Contingency plan.

If the assimilation does not work out as intended, a backup strategy would certainly comply with which would certainly divide the production feature from the advertising function to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising department without an SVP. Because case the manufacturing feature will definitely be separated by positioning it under an SVP manufacturing.