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First Investments Inc Analysis Of Financial Statements Case Study Solution

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Background and Facts

First Investments Inc Analysis Of Financial Statements an office supplies store for small and medium sized organisations has actually recently been associated with preparing for a merger with its rival House Deport, which has affected effectiveness levels in departmentswith the senior supervisor involved in legal complications put forth by the federal Trade Compensation. With the Advertising Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the future. With obstacles in the type of a potential cultural modification and also reduced staff member morale, the organization wants a complete reengineering effort at the marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The possible cultural adjustment at the marketing department of First Investments Inc Analysis Of Financial Statements is raising uncertainty in the working environment leading to numerous obstacles 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 major duty in impacting tactical choices considering that Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Trade Commission's intervention in the process. Offered the fact that the store has a worldwide visibility with branches in UK, USA, Canada and also Germany, political consider each of these nations might have the ability to influence performance or strategic objectives. Federal Profession Commission's antitrust match against the merger occupied valuable time of the organization's senior administration recommending that 'political' factors can have major implications for an international business.

Economic Factors: Financial factors such as the introduction of local business in the international scenario recommend that First Investments Inc Analysis Of Financial Statements is growing in an environment where there is prospective development of services. Fact that shop customers are mainly looking for office materials for home offices recommends that the market has a rising pattern of business owners and also house based organisations.

Social factors: Social patterns in the economic climate show that customers are looking for ease in addition to attractive prices. Marketing research demonstrates how the consumer for First Investments Inc Analysis Of Financial Statements lacks understanding concerning locating options which can offer a combination of benefit and also inexpensive.

Technical factors: Innovation plays an important function in First Investments Inc Analysis Of Financial Statements's service method particularly as the company is piloting Innovation facilities which would provide modern technology sales and also support in the form of memory upgrades, peripheral installments. (Recap of PARASITE in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Organizational Actions problems can be seen in First Investments Inc Analysis Of Financial Statements's case as highlighted in this section.

Apprehensions concerning cultural change: There is worry about a social change that would take place when Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with most of the team member already showing unhappiness over this potential relocation. This expected change has actually developed stress and anxiety in the work environment which has been paired with the previous stress of preparing the company for a prospective merger with Home Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is shortage of personnel that can match the stressful setting of a fast-paced company. Not just does this result in trouble in locating the ideal people, it puts anxiety on brand-new hires as can not endure the pace and stress that the company anticipates them to bear.

Double Reporting Lines: Novices find this organizational society cumbersome and also difficult to manage particularly as populated line connections are suggested to be weaker as a whole and objective setup and performance evaluation is still done by the strong line supervisor. This means that novices might shed clarity regarding their corresponding functions and also objectives particularly as populated line reporting does not maintain them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles despite the fact that it had actually been speculated that the last would take Krasnow's position came as a strike to her spirits. Lewis may have been capable and appropriate for the job however the fact that Kransnow's separation would make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Fear & Job Instability: Worry as well as insecurity can be identified as 2 major worries that Lewis would be managing particularly as the merging has now be terminated as well as two senior execs of the marketing division would be leaving. The whole duty of the division would certainly be dropping on Lewis's shoulders who would certainly not just be in charge of brining about a social modification but would also need to confirm herself in her brand-new duty.

Inappropriate Monitoring Design of Leader: Lewis's administration design and its incompatibility with the advertising and marketing division's function can additionally be viewed as an OB challenge particularly as she has been utilized to managing issues in the operations department where employees are instructed to focus on processes and get them right. The advertising department on the other hand can be viewed as a team of individuals who are utilized to being nurtured by Krasnow who concentrated a lot more on output than procedures.

Interdepartmental Disagreements: Interdepartmental disputes between three divisions, advertising, merchandizing as well as procedures specifically over the allocation of the marketing mix can be recognized as another OB concern. The advertising department does not share the exact same vision as the various other two departments concerning the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and also procedures divisions do not concur over the marketing mix allotment among one an additional either.

Fragmentation in Marketing Division: Fragmentation in between the marketing and advertising departments can be identified as one more OB issue which could require further attention. The fact that the marketing and advertising areas in the advertising and marketing division are disconnected is stopping both divisions from obtaining from each various other's experience and knowledge. Combination of marketing with retailing and operations would certainly become harder if the marketing division itself is degenerated which can be an additional prospective OB issue.

First Investments Inc Analysis Of Financial Statements Analysis

Numerous concepts have actually been made use of to clarify the situations to get additional quality concerning the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers believe that staffs are easy as well as lazy, have little aspiration and also withstand change. The difficult version of this concept highlighted coercion, tight controls, risks as well as punishments. In time it produces reduced efficiency, subtle sabotage and rivalry (Offer, 2003). The situation at First Investments Inc Analysis Of Financial Statements is not entirely following Theory X, it can be seen that brand-new hires are locating this atmosphere rather demanding which may at some point lead to a better disposition of the monitoring towards Concept X. As per McGregor's advocated view, which he called Theory Y, the important task of the administration is to prepare business problems to ensure that people can attain their own objectives best by guiding their initiatives towards business incentives. If people locate no fulfillment in their work, the management would certainly have little option however to depend on concept X as well as outside control (Deal, 2003). Also while assessing Lewis's monitoring style, theory X might have been suitable in the operations division somewhat but the Advertising department would call for dependence on Concept Y to get the creative thinking and originality from the groups.

Tuckman's Team effort Concept: As far as Lewis's concern about bringing harmony in between the marketing as well as advertising department is concerned, this would originally lead to conflict as discussed by Bruce Tuckman in his 'Teamwork Concept'. By integrating the advertising and advertising and marketing department's job, there might be the very same first separate which might lead to the 2nd phase of 'storming' where the teams test one another.

Bridges' Transition Model: According To William Bridge's concept (appendix 4), people are rather unpleasant with change, which is noticeable by the situation at First Investments Inc Analysis Of Financial Statements The circumstance can be seen as a typical training course of life if is examined according to Bridge's concept where he discusses that individuals undergo 3 stages of shift when they experience modification. 'Closing, losing and also Releasing', The Neutral Zone and 'The New Starting' (Bridges, 2004). When people are presented with change, they go into stage one therefore there might be feelings like despair, unpredictability, frustration, rage, concern, denial and disorientation.The situation at the marketing division of First Investments Inc Analysis Of Financial Statements is similar so Lewis can get comfy with the suggestion that it is not remarkable habits. In the second stage, there may be a need to link the space between the brand-new and also old culture so Lewis may have to encounter this experience once Krasnow leaves. There might be reduced morale as well as reduced performance at this phase which should not be taken as a trouble. It is throughout this stage that Lewis will need to give advice to the department to ensure that they can find a sense of direction. It can be seen just how Krasnow has actually currently made this shift less complicated by making Lewis obtain associated with the division a year prior to his real departure. As per Bridges' Design, stage three will certainly produce openness to discovering, High energy and also dedication as individuals will welcome the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB issue related to insecurity at the work environment has actually been set off firstly by the modification in administration as well as secondly by the reality that the merger will no longer be initiated. Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has talks about the significance of 'protection requires as being a reduced degree need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel safe and secure as well as out of danger' is at the second level of demands. Prior to an employee can be made to establish psychologically, he needs to have his 'Physiological 'and 'Safety' needs fulfilled. This suggests that unless the workers are made to really feel protected concerning their existing employment condition in First Investments Inc Analysis Of Financial Statements they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for First Investments Inc Analysis Of Financial Statements Case Study



Ramification of Analysis.

The OB analysis has actually taken a look at different concepts to comprehend how to handle the existing circumstance available. The following three options have been recommended to aid Lewis deal with the business challenges in the advertising department. Each of these alternatives has actually been proposed for easing the transition required to bring the advertising division according to the requirements of the marketplace and also for making the cultural change that would certainly adhere to when the present leader leaves.

Integration of advertising and marketing features. Dividing Adverting and Production features. Assimilation of Marketing with Procedures.

Assessment of Alternatives.

Assimilation of Advertising And Marketing & Marketing Functions: The internal advertising and marketing company of First Investments Inc Analysis Of Financial Statements is already strength for the company in terms of conserving up on expenses related to advertising and marketing as well as promotion. Since no brand-new recruitment has actually been done after Bridget Cole's separation with the reporting line being straight assigned to Krasnow for the advertising feature, this is a positive opportunity for incorporating the marketing and advertising features. Judith Shapiro who has earlier been spoken with by Lewis during the earlier merging days has expertise in business-to-business advertising in addition to company and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing features.

The advantage of this method is that it will certainly integrate both features while minimizing the need for hiring an extra source for marketing. Along with this, Lewis would certainly be heading the marketing division as well as regardless her substitute would be needed for the existing role that she is carrying out. The downside of this choice is that exterior hiring might produce resentment from inner employees who might be looking at the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Production: Given the affordable stress and also high quality work required from the advertising agency, it is advised that Lewis must enable the manufacturing unit to be a different function from the marketing device. Given that the majority of advertising firms had these two functions as separate units, it makes even more feeling to comply with the norm.

Combination of Marketing with Operations: Since Lewis is already taking care of the advertising and also operations divisions at the same time; it makes sense to integrate the two functions because she has actually been successfully taking treatment of both ends. The truth that Lewis has to adjust her administration style for the marketing division suggests that these 2 divisions would certainly be culturally diverse.

Recommendation.



An examination of the 3 choices shows that combination of advertising and procedures would not be a feasible action as a result of the huge distinctions between both departments despite the fact that presently Lewis is handling both. While separation of the manufacturing function may have been a favorable relocation for the advertising and marketing department, the truth that it would certainly suggest positioning a third function under Lewis's wing means this need to be prevented. The combination of the advertising and marketing division is the very best option in regards to obtaining the optimal results from the department. An activity prepare for this choice is gone over below.

Action Plan.
Recommendation
Lewis will certainly take over the function of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Manufacturing function will certainly continue to be part of marketing under advertising function.

Lewis will divide herself from procedures.

A democratic management style with staff member empowerment will be made use of in advertising and marketing department.

Open door policy as well as emphasis on cross departmental interaction will be focused on eliminating discord.

Backup plan.

If the assimilation does not work out as planned, a backup strategy would follow which would divide the production feature from the advertising and marketing feature to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the manufacturing feature will absolutely be separated by positioning it under an SVP manufacturing.