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First National Bank Of Westhaven A Case Study Help

CASE ANALYSIS

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First National Bank Of Westhaven A Case Study Help

Background and Facts

First National Bank Of Westhaven A an office supplies merchant for little and average sized organisations has actually just recently been involved in preparing for a merger with its competitor Residence Deport, which has actually affected performance degrees in departmentswith the elderly manager involved in legal problems put forth by the government Profession Payment. With the Marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the role in the future. With obstacles in the type of a prospective cultural modification and low worker morale, the company is in need of a full reengineering initiative at the advertising and marketing department.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural modification at the advertising and marketing department of First National Bank Of Westhaven A is boosting unpredictability in the workplace resulting in numerous obstacles for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing strategic decisions because Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Trade Commission's intervention in the process. Given the fact that the shop has a worldwide existence with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries might have the ability to influence performance or strategic goals. Federal Trade Commission's antitrust fit against the merging used up useful time of the organization's senior administration suggesting that 'political' factors can have serious ramifications for a worldwide service.

Economic Factors: Economic factors such as the emergence of small businesses in the worldwide situation recommend that First National Bank Of Westhaven A is growing in an environment where there is prospective development of organisations. In addition to this, reality that store customers are primarily looking for office supplies for office suggests that the marketplace has a climbing fad of entrepreneurs as well as home businesses.

Social factors: Social trends in the economic situation show that customers are trying to find convenience as well as attractive prices. Marketing research demonstrates how the customer for First National Bank Of Westhaven A lacks awareness concerning finding services which can supply a combination of convenience and inexpensive.

Technological factors: Modern technology plays an important duty in First National Bank Of Westhaven A's organisation technique specifically as the organization is piloting Technology centers which would supply modern technology sales and support in the form of memory upgrades, outer installments. (Recap of BUG in appendix 2).

OB Issues and also Symptoms.

Several underlying Business Habits concerns can be seen in First National Bank Of Westhaven A's case as highlighted in this section.

Concerns about cultural change: There is uneasiness regarding a cultural adjustment that would certainly take place once Todd Krasnow leaves from his placement as the Exec Vice President of Advertising with most of the employee already showing unhappiness over this possible action. This expected change has developed stress in the office which has been paired with the past tension of preparing the firm for a potential merger with Residence Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is scarcity of personnel that can match the demanding atmosphere of a fast-paced organization. Not just does this result in difficulty in locating the best individuals, it places tension on brand-new hires as can not stand up to the speed and pressure that the company expects them to bear.

Dual Reporting Lines: Newcomers locate this business culture troublesome and also challenging to deal with specifically as populated line connections are indicated to be weak as a whole as well as unbiased setting and efficiency examination is still done by the strong line manager. This indicates that beginners could shed quality concerning their respective duties and also purposes particularly as populated line reporting does not keep them in straight interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles although it had been speculated that the latter would certainly take Krasnow's position came as an impact to her spirits. Lewis may have been capable and suitable for the job however the fact that Kransnow's separation would make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Anxiety & Work Insecurity: Concern as well as insecurity can be determined as two major concerns that Lewis would be dealing with particularly as the merger has actually currently be terminated and 2 senior executives of the advertising division would be leaving. The entire duty of the department would be dropping on Lewis's shoulders who would not just supervise of brining about a social modification but would certainly also need to verify herself in her brand-new function.

Incompatible Administration Style of Leader: Lewis's management design and its conflict with the advertising and marketing division's duty can also be viewed as an OB challenge specifically as she has actually been used to dealing with issues in the procedures department where workers are educated to concentrate on procedures and get them right. The advertising division on the various other hand can be viewed as a group of individuals that are used to being nurtured by Krasnow that concentrated much more on output than procedures.

Interdepartmental Arguments: Interdepartmental arguments in between 3 departments, advertising and marketing, merchandizing and operations respectively over the allotment of the advertising mix can be determined as another OB problem. The marketing division does not share the exact same vision as the other two divisions relating to the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and also operations departments do not agree over the advertising and marketing mix allocation among one an additional either.

Disintegration in Advertising And Marketing Division: Fragmentation between the marketing and advertising departments can be recognized as an additional OB concern which might need further attention. The fact that the advertising and marketing sections in the marketing division are detached is preventing both divisions from getting from each other's experience and also competence. Combination of advertising with merchandising and operations would certainly end up being more difficult if the marketing division itself is broken down which can be one more prospective OB problem.

First National Bank Of Westhaven A Analysis

Different concepts have been utilized to clarify the scenarios to get further clearness regarding the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of managers think that subordinates are easy and lazy, have little ambition and resist change. The difficult version of this concept emphasized browbeating, tight controls, threats and punishments. In time it generates reduced efficiency, subtle sabotage and also competition (Bargain, 2003). Although the scenario at First National Bank Of Westhaven A is not entirely complying with Concept X, it can be seen that brand-new hires are discovering this atmosphere instead demanding which might ultimately bring about a greater inclination of the administration in the direction of Theory X. Based on McGregor's promoted view, which he called Concept Y, the essential job of the management is to prepare organizational conditions to ensure that people can accomplish their very own objectives best by routing their efforts towards business incentives. If people find no contentment in their job, the monitoring would certainly have little choice yet to count on theory X and exterior control (Deal, 2003). Also while analyzing Lewis's administration style, concept X might have appropriated in the procedures department to some extent but the Advertising and marketing division would need reliance on Concept Y so as to get the imagination and creativity from the groups.

Tuckman's Synergy Concept: Regarding Lewis's concern about bringing consistency in between the advertising and marketing division is concerned, this would initially cause conflict as gone over by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's theory received appendix 3, throughout the preliminary phase of team development, individuals might not bond, as they are hectic finding their location in the team. By combining the advertising and marketing department's job, there might be the same preliminary separate which can result in the second stage of 'storming' where the groups challenge one another. However, it is only during the 3rd phase or 'norming' when they would collaborate to share ideas before the group can produce harmony in the fourth stage 'carrying out'.

Bridges' Transition Design: According To William Bridge's concept (appendix 4), individuals are quite awkward with adjustment, which is evident by the circumstance at First National Bank Of Westhaven A The circumstance can be viewed as a normal course of life if is studied based on Bridge's theory where he discusses that individuals experience three phases of change when they experience change. 'Ending, losing and also Letting go', The Neutral Area and also 'The New Starting' (Bridges, 2004). When individuals exist with modification, they go into phase one therefore there may be feelings like sadness, uncertainty, aggravation, anger, fear, denial and also disorientation.The situation at the advertising department of First National Bank Of Westhaven A is comparable so Lewis can obtain comfortable with the concept that it is not phenomenal actions. In the second stage, there might be a requirement to link the space between the brand-new and also old society so Lewis may have to face this experience once Krasnow leaves. There might be low spirits as well as reduced productivity at this phase which must not be taken as a problem. It is during this phase that Lewis will certainly need to give support to the department so that they can discover a sense of direction. It can be seen how Krasnow has actually currently made this shift less complicated by making Lewis get associated with the division a year prior to his real separation. Based on Bridges' Model, phase 3 will certainly bring about visibility to learning, High power and also commitment as individuals will embrace the change (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB concern related to insecurity at the workplace has been set off firstly by the modification in management and secondly by the reality that the merging will certainly no more be launched. Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has discusses the relevance of 'protection requires as being a lower level demand of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to feel safe and secure as well as untouched' is at the second level of needs. Prior to a worker can be made to establish psychologically, he requires to have his 'Physiological 'as well as 'Security' requires satisfied. This shows that unless the workers are made to feel secure concerning their existing employment condition in First National Bank Of Westhaven A they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for First National Bank Of Westhaven A Case Study



Implication of Analysis.

The OB analysis has checked out numerous concepts to understand exactly how to cope with the existing scenario at hand. The adhering to 3 choices have been proposed to help Lewis take care of the organizational difficulties in the advertising and marketing division. Each of these alternatives has been suggested for easing the shift required to bring the advertising and marketing department in line with the needs of the marketplace and also for making the social adjustment that would comply with once the existing leader leaves.

Assimilation of marketing and advertising features. Separating Adverting and also Production functions. Integration of Advertising with Workflow.

Examination of Alternatives.

Combination of Marketing & Advertising Functions: The in-house marketing firm of First National Bank Of Westhaven A is already toughness for the organization in terms of conserving up on expenses related to advertising and promo. Because no new recruitment has actually been done after Bridget Cole's departure with the reporting line being straight appointed to Krasnow for the marketing function, this is a favorable chance for incorporating the marketing and advertising features. Judith Shapiro that has earlier been talked to by Lewis during the earlier merger days has competence in business-to-business marketing together with firm and retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to handle both advertising and marketing functions.

The advantage of this strategy is that it will integrate the two features while reducing the need for hiring an extra source for advertising and marketing. Along with this, Lewis would certainly be heading the marketing department as well as in any case her substitute would be required for the existing role that she is carrying out. The drawback of this choice is that outside hiring may bring about animosity from internal personnel who might be looking at the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting as well as Production: Provided the competitive pressures and high quality work required from the advertising and marketing company, it is suggested that Lewis must enable the production unit to be a separate function from the advertising and marketing system. Since many advertising companies had these two features as different devices, it makes even more feeling to follow the standard.

Integration of Advertising And Marketing with Workflows: Considering that Lewis is currently caring for the advertising as well as procedures departments concurrently; it makes good sense to integrate both features considering that she has actually been successfully taking care of both ends. The fact that both divisions already have significant distinctions over allowance of resources suggests that this combination may be able to cause harmony particularly as Lewis would certainly be heading both ends.However there are different drawbacks of this action especially as it would place too much concern over Lewis's shoulders. The fact that Lewis needs to adapt her management design for the advertising division recommends that these 2 divisions would be culturally varied. Lewis might not be able to apply one type of management design to both divisions which can result in inefficiency in either one of the two features.

Suggestion.



An assessment of the three options shows that assimilation of advertising and marketing and procedures would not be a viable step due to the huge differences in between both divisions despite the fact that presently Lewis is managing both. While separation of the manufacturing function might have been a desirable step for the advertising and marketing department, the reality that it would certainly mean putting a third function under Lewis's wing suggests this need to be avoided. The assimilation of the advertising and marketing division is the most effective option in regards to obtaining the optimum arise from the division. An activity plan for this option is talked about listed below.

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

Advertising and Marketing features would be combined.

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

Manufacturing function will remain component of advertising under advertising and marketing function.

Lewis will certainly separate herself from procedures.

An autonomous management style with employee empowerment will certainly be used in advertising department.

Open door policy and also emphasis on cross department communication will be aimed at eliminating dissonance.

Backup strategy.

If the assimilation does not exercise as intended, a backup plan would adhere to which would divide the production function from the marketing feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the marketing division without an SVP. In that case the manufacturing function will definitely be divided by placing it under an SVP production.