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Financial Reporting Problems At Molex Inc B Case Study Analysis

Background and Facts

Financial Reporting Problems At Molex Inc B an office materials store for small and medium sized companies has actually just recently been involved in preparing for a merger with its competitor Home Deport, which has actually affected efficiency degrees in departmentswith the senior supervisor associated with lawful issues put forth by the government Trade Payment. With the Advertising and marketing Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the near future. With obstacles in the type of a possible social adjustment as well as reduced employee spirits, the organization is in need of a full reengineering initiative at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The potential cultural adjustment at the marketing division of Financial Reporting Problems At Molex Inc B is boosting uncertainty in the workplace resulting in numerous challenges for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting strategic choices since Stapes Inc. needed to abandon its plans of combining with Workplace Deport after the Federal Trade Commission's intervention at the same time. Offered the truth that the shop has a global existence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these nations may have the ability to impact efficiency or tactical objectives. Federal Profession Commission's antitrust fit versus the merging took up important time of the organization's elderly management suggesting that 'political' factors can have severe effects for a worldwide service.

Economic Factors: Financial factors such as the appearance of small businesses in the worldwide circumstance suggest that Financial Reporting Problems At Molex Inc B is prospering in a setting where there is possible development of businesses. Reality that shop customers are mostly looking for workplace materials for house offices suggests that the market has an increasing fad of entrepreneurs as well as home based services.

Social factors: Social fads in the economic climate reveal that clients are looking for ease as well as attractive rates. Marketing research demonstrates how the client for Financial Reporting Problems At Molex Inc B does not have awareness concerning locating solutions which can provide a mix of benefit and also affordable.

Technological factors: Innovation plays a vital function in Financial Reporting Problems At Molex Inc B's business technique especially as the organization is piloting Technology centers which would certainly provide modern technology sales as well as support in the kind of memory upgrades, outer setups. (Summary of INSECT in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Organizational Actions problems can be seen in Financial Reporting Problems At Molex Inc B's case as highlighted in this area.

Uneasiness concerning cultural adjustment: There is apprehension regarding a cultural modification that would certainly occur when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with a lot of the staff members currently revealing unhappiness over this possible action. This predicted adjustment has produced anxiety in the workplace which has been coupled with the past stress of preparing the firm for a potential merging with House Deport.
Pest Analysis
Difficult Task Setting for Newcomers: There is shortage of employees that can match the stressful environment of a hectic organization. Not only does this result in trouble in discovering the ideal people, it places tension on brand-new hires as can not endure the speed as well as stress that the organization anticipates them to birth.

Twin Reporting Lines: Beginners discover this organizational culture cumbersome and difficult to deal with particularly as dotted line partnerships are meant to be weaker as a whole and unbiased setting as well as efficiency evaluation is still done by the strong line manager. This indicates that newbies could lose quality concerning their particular roles and also goals especially as populated line reporting does not maintain them in straight communication with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles despite the fact that it had actually been hypothesized that the last would take Krasnow's position came as a strike to her spirits. Lewis may have been capable and ideal for the work but the fact that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the reason for Coles' resignation from services.

Worry & Job Instability: Anxiety as well as insecurity can be recognized as 2 major concerns that Lewis would be taking care of specifically as the merging has currently be cancelled and also 2 senior executives of the marketing department would certainly be leaving. The entire responsibility of the department would certainly be dropping on Lewis's shoulders who would not simply supervise of brining about a cultural modification yet would certainly also have to show herself in her new duty.

Inappropriate Monitoring Style of Leader: Lewis's management design and also its incompatibility with the advertising division's duty can also be viewed as an OB obstacle specifically as she has been used to managing issues in the procedures division where workers are educated to focus on procedures and also obtain them right. The advertising and marketing division on the other hand can be viewed as a group of people that are utilized to being nurtured by Krasnow who concentrated much more on result than procedures.

Interdepartmental Disputes: Interdepartmental disputes between 3 departments, advertising, merchandizing and also procedures respectively over the appropriation of the advertising mix can be identified as another OB problem. The advertising and marketing department does not share the very same vision as the other 2 divisions pertaining to the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and procedures divisions do not agree over the marketing mix allowance amongst one another either.

Disintegration in Advertising Department: Fragmentation between the advertising and marketing departments can be recognized as an additional OB issue which could need additional focus. The reality that the advertising and marketing sections in the advertising and marketing division are separated is avoiding both departments from gaining from each other's experience as well as proficiency. Assimilation of advertising and marketing with merchandising as well as operations would certainly become harder if the marketing department itself is broken down which can be one more prospective OB concern.

Financial Reporting Problems At Molex Inc B Analysis

Various theories have actually been made use of to discuss the conditions to get further clarity about the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers think that juniors are easy as well as careless, have little aspiration as well as withstand adjustment. The difficult version of this theory highlighted browbeating, tight controls, hazards and also penalties. Over time it produces low performance, subtle sabotage as well as rivalry (Bargain, 2003). Although the circumstance at Financial Reporting Problems At Molex Inc B is not completely adhering to Theory X, it can be seen that new hires are locating this setting rather difficult which might eventually lead to a greater inclination of the administration towards Concept X. As per McGregor's supported view, which he called Theory Y, the necessary task of the administration is to prepare business problems to ensure that individuals can accomplish their very own goals best by guiding their efforts in the direction of business incentives. If people discover no fulfillment in their work, the monitoring would certainly have little selection yet to depend on theory X and external control (Deal, 2003). Also while analyzing Lewis's administration style, concept X might have been suitable in the procedures department to some extent however the Advertising and marketing department would certainly call for reliance on Theory Y in order to get the creativity and originality from the teams.

Tuckman's Synergy Concept: Regarding Lewis's concern regarding bringing consistency in between the marketing and advertising division is concerned, this would initially lead to clash as discussed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, during the first phase of group development, people might not bond, as they are active finding their location in the group. By combining the advertising and marketing division's work, there may coincide initial detach which can cause the 2nd phase of 'storming' where the teams test one another. Nevertheless, it is just throughout the 3rd phase or 'norming' when they would certainly collaborate to share suggestions prior to the team can produce synergy in the fourth stage 'carrying out'.

Bridges' Shift Version: Based On William Bridge's concept (appendix 4), people are rather awkward with adjustment, which is obvious by the circumstance at Financial Reporting Problems At Molex Inc B The circumstance can be viewed as a typical training course of life if is researched as per Bridge's theory where he describes that individuals go through 3 stages of change when they experience adjustment. 'Ending, losing and also Releasing', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When individuals exist with change, they enter stage one therefore there might be feelings like unhappiness, unpredictability, irritation, anger, fear, denial and also disorientation.The situation at the marketing department of Financial Reporting Problems At Molex Inc B is similar so Lewis can get comfy with the suggestion that it is not amazing habits. In the 2nd stage, there may be a need to link the void between the new and also old society so Lewis may need to encounter this challenge as soon as Krasnow leaves. There may be reduced morale and low efficiency at this phase which should not be taken as a setback. It is throughout this stage that Lewis will certainly have to provide assistance to the division so that they can discover a sense of direction. It can be seen just how Krasnow has currently made this transition less complicated by making Lewis obtain involved in the department a year prior to his actual separation. According to Bridges' Design, phase 3 will produce openness to knowing, High power as well as commitment as individuals will certainly welcome the change (Bridges, 2004).
Vrio Analysis
Maslow's Demand hierarchy: The OB issue related to instability at the office has been caused firstly by the change in administration and second of all by the truth that the merger will no longer be launched. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has talks about the value of 'safety and security requires as being a reduced level need of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and secure as well as safe' is at the 2nd level of demands. Prior to a staff member can be made to develop emotionally, he requires to have his 'Physical 'and 'Security' requires fulfilled. This indicates that unless the workers are made to feel secure regarding their present work condition in Financial Reporting Problems At Molex Inc B they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Financial Reporting Problems At Molex Inc B Case Study

Effects of Analysis.

The OB analysis has actually considered different theories to comprehend how to cope with the current circumstance at hand. The following 3 options have actually been suggested to aid Lewis manage the organizational challenges in the marketing department. Each of these options has been proposed for relieving the transition required to bring the advertising division in line with the needs of the market as well as for making the social adjustment that would comply with once the current leader leaves.

Combination of advertising and marketing features. Dividing Adverting as well as Manufacturing functions. Combination of Advertising And Marketing with Operations.

Analysis of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merger days has know-how in business-to-business advertising along with agency as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both marketing as well as marketing functions.

The advantage of this method is that it will certainly incorporate the two functions while minimizing the need for employing an additional resource for advertising and marketing. Lewis would be heading the advertising and marketing department and also in any kind of case her substitute would certainly be needed for the present role that she is carrying out. The downside of this option is that exterior hiring might produce animosity from inner personnel that might be considering the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting as well as Manufacturing: Given the competitive stress and excellent quality job required from the advertising agency, it is suggested that Lewis should allow the production system to be a different function from the advertising device. Given that a lot of ad agency had these two functions as separate units, it makes more sense to comply with the standard. Both features may be able to concentrate on their core triggers more efficiently. However, the negative aspect of this strategy would certainly be that added expenses would have to be borne for setting up different production features. Along with this, a production head may need to be worked with which might raise overheads for the company.

Assimilation of Advertising And Marketing with Operations: Considering that Lewis is currently taking treatment of the marketing and also operations divisions concurrently; it makes sense to integrate the two functions since she has actually been efficiently taking treatment of both ends. The fact that Lewis has to adjust her monitoring design for the advertising division suggests that these 2 divisions would certainly be culturally diverse.


An evaluation of the 3 alternatives suggests that assimilation of advertising as well as procedures would certainly not be a practical move as a result of the substantial distinctions in between both divisions despite the fact that currently Lewis is taking care of both. While splitting up of the manufacturing function might have been a positive relocation for the advertising department, the reality that it would certainly imply putting a 3rd function under Lewis's wing suggests this ought to be stayed clear of. The integration of the advertising and marketing department is the very best choice in terms of getting the optimum arise from the division. An action plan for this choice is reviewed listed below.

Activity Plan.
Lewis will take over the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Manufacturing feature will continue to be component of advertising under advertising feature.

Lewis will certainly divide herself from operations.

A democratic leadership style with employee empowerment will certainly be utilized in marketing division.

Open door plan as well as emphasis on cross department communication will be targeted at removing discord.

Contingency strategy.

If the combination does not work out as prepared, a contingency strategy would certainly follow which would certainly separate the production feature from the marketing feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising department without an SVP. In that case the production function will definitely be divided by positioning it under an SVP manufacturing.