Financial Reporting Problems At Molex Inc C Case Study Solution


Home >> Harvard >> Financial Reporting Problems At Molex Inc C >>

Financial Reporting Problems At Molex Inc C Case Study Help

Background and Facts

Financial Reporting Problems At Molex Inc C an office products merchant for tiny as well as average sized companies has actually lately been involved in planning for a merger with its rival Home Deport, which has affected performance degrees in departmentswith the senior manager associated with legal problems presented by the government Trade Payment. With the Marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the future. With difficulties in the type of a possible social adjustment and also low staff member spirits, the company needs a full reengineering initiative at the advertising and marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The potential social adjustment at the advertising and marketing division of Financial Reporting Problems At Molex Inc C is increasing unpredictability in the workplace causing various obstacles for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing strategic decisions considering that Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Trade Compensation's treatment while doing so. Provided the truth that the store has an international visibility with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries may be able to impact performance or calculated objectives. Federal Profession Compensation's antitrust fit versus the merging used up beneficial time of the company's elderly administration suggesting that 'political' factors can have serious effects for a global company.

Economic Factors: Economic factors such as the emergence of small companies in the global circumstance suggest that Financial Reporting Problems At Molex Inc C is flourishing in an environment where there is prospective growth of companies. In addition to this, reality that store customers are primarily looking for office materials for home offices recommends that the marketplace has an increasing fad of business owners as well as online businesses.

Social factors: Social patterns in the economy reveal that consumers are seeking convenience as well as appealing prices. Market research demonstrates how the consumer for Financial Reporting Problems At Molex Inc C lacks recognition about finding options which can supply a combination of ease and inexpensive.

Technological factors: Technology plays a vital duty in Financial Reporting Problems At Molex Inc C's business approach particularly as the organization is piloting Modern technology centers which would certainly provide modern technology sales and assistance in the kind of memory upgrades, peripheral installations. (Recap of PARASITE in appendix 2).

OB Issues and Effects.

Several underlying Organizational Behavior issues can be seen in Financial Reporting Problems At Molex Inc C's case as highlighted in this area.

Worries concerning cultural modification: There is uneasiness concerning a social modification that would occur once Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with most of the employee currently revealing unhappiness over this possible move. This anticipated change has produced tension in the work environment which has actually been combined with the previous stress and anxiety of preparing the firm for a potential merging with Residence Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is lack of personnel that can match the stressful atmosphere of a busy organization. Not just does this result in trouble in discovering the ideal individuals, it puts stress on new hires as can not hold up against the rate and also stress that the organization anticipates them to bear.

Twin Reporting Lines: Newcomers locate this business society cumbersome as well as challenging to handle especially as populated line connections are indicated to be weak in general and unbiased setting and also efficiency assessment is still done by the strong line supervisor. This implies that beginners might shed quality regarding their corresponding roles as well as goals particularly as dotted line reporting does not maintain them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles despite the fact that it had actually been guessed that the latter would certainly take Krasnow's position came as a strike to her morale. Lewis might have been qualified and ideal for the work but the reality that Kransnow's departure would make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Work Instability: Fear as well as insecurity can be identified as 2 significant worries that Lewis would be dealing with specifically as the merging has now be terminated and also 2 elderly executives of the advertising and marketing department would be leaving. The whole obligation of the division would be falling on Lewis's shoulders who would certainly not simply be in charge of brining about a social adjustment however would likewise need to prove herself in her new function.

Incompatible Management Design of Leader: Lewis's management design and its conflict with the advertising and marketing department's function can additionally be viewed as an OB challenge especially as she has been utilized to handling issues in the procedures division where personnel are instructed to focus on processes and obtain them right. The marketing department on the other hand can be viewed as a group of individuals that are utilized to being nurtured by Krasnow who focused more on outcome than processes.

Interdepartmental Arguments: Interdepartmental disputes between 3 divisions, marketing, merchandizing and procedures respectively over the appropriation of the advertising mix can be identified as an additional OB issue. Although the advertising division does not share the same vision as the other two departments pertaining to the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and operations divisions do not concur over the advertising mix allotment amongst each other either.

Disintegration in Advertising And Marketing Division: Disintegration between the advertising and marketing departments can be recognized as one more OB concern which might require additional attention. The reality that the advertising and marketing sections in the marketing department are separated is protecting against both departments from acquiring from each other's experience as well as expertise. Assimilation of marketing with retailing and also operations would end up being more difficult if the marketing division itself is degenerated which can be another potential OB issue.

Financial Reporting Problems At Molex Inc C Analysis

Numerous theories have actually been made use of to explain the conditions to obtain additional quality regarding the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many supervisors think that staffs are easy as well as lazy, have little ambition and stand up to adjustment. The tough version of this concept stressed coercion, tight controls, hazards and penalties. In time it generates low performance, subtle sabotage and also competition (Offer, 2003). The scenario at Financial Reporting Problems At Molex Inc C is not entirely following Theory X, it can be seen that brand-new hires are finding this atmosphere rather stressful which might at some point lead to a greater disposition of the monitoring towards Theory X. Based on McGregor's supported view, which he called Concept Y, the crucial job of the monitoring is to organize organizational problems to make sure that individuals can achieve their own goals best by guiding their efforts towards business benefits. If people locate no fulfillment in their work, the administration would have little selection however to rely upon concept X as well as exterior control (Offer, 2003). Even while examining Lewis's management style, theory X may have been suitable in the operations division to some extent however the Marketing department would certainly require reliance on Theory Y to get the creative thinking as well as originality from the teams.

Tuckman's Teamwork Concept: Regarding Lewis's issue about bringing consistency in between the marketing and advertising division is worried, this would at first bring about conflict as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, during the first stage of team advancement, individuals might not bond, as they are busy discovering their area in the group. By integrating the marketing and advertising division's work, there might be the same first detach which could cause the second stage of 'storming' where the teams challenge each other. It is only throughout the 3rd phase or 'norming' when they would come together to share concepts prior to the team can bring about harmony in the fourth phase 'carrying out'.

Bridges' Shift Version: As per William Bridge's theory (appendix 4), individuals are quite awkward with change, which is obvious by the situation at Financial Reporting Problems At Molex Inc C The situation can be seen as a typical course of life if is researched according to Bridge's theory where he describes that individuals undergo 3 phases of change when they experience adjustment. 'Closing, losing as well as Letting go', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When people exist with modification, they get in stage one and so there may be feelings like sadness, uncertainty, frustration, temper, anxiety, rejection as well as disorientation.The situation at the advertising department of Financial Reporting Problems At Molex Inc C is similar so Lewis can obtain comfy with the idea that it is not phenomenal actions. In the second stage, there may be a need to link the void between the new and old culture so Lewis may need to face this ordeal when Krasnow leaves. There might be low morale as well as reduced productivity at this stage which need to not be taken as an obstacle. It is throughout this phase that Lewis will need to offer support to the division so that they can discover an orientation. It can be seen how Krasnow has already made this shift much easier by making Lewis obtain involved in the department a year before his actual departure. As per Bridges' Model, stage 3 will certainly cause openness to knowing, High power and also dedication as people will accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Demand hierarchy: The OB issue pertaining to insecurity at the workplace has been set off firstly by the adjustment in management and also secondly by the reality that the merger will no more be started. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has reviews the relevance of 'safety and security requires as being a lower level need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel safe and secure as well as safe' is at the second degree of requirements. Prior to a staff member can be made to develop emotionally, he needs to have his 'Physical 'as well as 'Safety and security' requires fulfilled. This indicates that unless the workers are made to really feel protected about their existing employment standing in Financial Reporting Problems At Molex Inc C they might not reach 'Self-Fulfillment'. (King, 2009).

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

Implication of Analysis.

The OB analysis has actually taken a look at numerous theories to comprehend how to manage the present circumstance available. The following three options have been suggested to help Lewis take care of the business challenges in the advertising and marketing department. Each of these options has been suggested for relieving the transition required to bring the advertising department in line with the needs of the market as well as for making the social adjustment that would follow when the existing leader leaves.

Integration of advertising and marketing functions. Separating Adverting as well as Production features. Integration of Marketing with Operations.

Analysis of Alternatives.

Integration of Advertising & Marketing Functions: The internal marketing agency of Financial Reporting Problems At Molex Inc C is currently stamina for the organization in regards to saving up on overheads related to advertising and marketing and promotion. Because no brand-new employment has been done after Bridget Cole's separation with the reporting line being directly appointed to Krasnow for the advertising and marketing feature, this is a beneficial possibility for integrating the advertising and marketing functions. Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merger days has experience in business-to-business advertising and marketing along with firm and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to take care of both marketing and advertising features.

The advantage of this approach is that it will incorporate the two functions while decreasing the demand for hiring an additional source for advertising. Lewis would certainly be heading the marketing division and also in any case her substitute would certainly be needed for the existing function that she is carrying out. The drawback of this alternative is that exterior hiring might produce bitterness from interior employees that might be considering the placement of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and also Production: Offered the affordable stress and top quality work needed from the ad agency, it is advised that Lewis should enable the production unit to be a separate feature from the advertising unit. Since the majority of ad agency had these two features as separate units, it makes even more feeling to follow the norm. Along with this, both functions may have the ability to focus on their core activates a lot more successfully. However, the downside of this strategy would be that additional costs would certainly need to be borne for setting up different manufacturing features. A production head might have to be hired which might increase overheads for the company.

Assimilation of Advertising And Marketing with Workflows: Since Lewis is already taking care of the marketing and procedures departments concurrently; it makes feeling to integrate the 2 functions because she has been successfully taking treatment of both ends. The fact that Lewis has to adapt her administration design for the advertising and marketing division suggests that these 2 departments would certainly be culturally varied.


An analysis of the three alternatives suggests that combination of marketing and also operations would not be a feasible action because of the substantial differences in between both divisions although that presently Lewis is managing both. While separation of the production feature may have been a desirable move for the advertising department, the fact that it would imply placing a 3rd function under Lewis's wing means this must be prevented also. The assimilation of the advertising and marketing department is the very best alternative in terms of getting the ideal results from the department. An activity prepare for this option is talked about below.

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

Advertising and Marketing functions would certainly be combined.

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

Production feature will certainly remain part of marketing under marketing function.

Lewis will separate herself from operations.

An autonomous leadership style with worker empowerment will be utilized in advertising division.

Open up door plan and focus on cross department interaction will certainly be targeted at eliminating dissonance.

Contingency strategy.

If the integration does not exercise as intended, a backup plan would certainly comply with which would divide the manufacturing function from the advertising feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the marketing division without an SVP. In that case the production function will certainly be separated by placing it under an SVP manufacturing.