Menu

Formosa Plastics Group Business Continuity Forever Case Study Analysis

CASE ANALYSIS

Home >> Harvard >> Formosa Plastics Group Business Continuity Forever >>

Formosa Plastics Group Business Continuity Forever Case Study Analysis

Background and Facts

Formosa Plastics Group Business Continuity Forever an office supplies store for tiny as well as medium sized organisations has lately been involved in planning for a merger with its competitor Residence Deport, which has actually influenced performance levels in departmentswith the elderly manager associated with lawful issues presented by the federal Profession Compensation. With the Advertising Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the near future. With challenges in the type of a prospective cultural modification and reduced staff member spirits, the company requires a total reengineering effort at the marketing department.

Problem Statement
Porter's 5 Forces Analysis
The possible social change at the advertising department of Formosa Plastics Group Business Continuity Forever is increasing uncertainty in the working environment bring about different difficulties for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting critical choices considering that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Commission's intervention while doing so. Given the truth that the store has an international visibility with branches in UK, U.S.A., Canada and also Germany, political consider each of these nations might be able to influence efficiency or strategic objectives. Federal Trade Compensation's antitrust match against the merger used up important time of the company's elderly management suggesting that 'political' factors can have major ramifications for a global organisation.

Economic Factors: Economic factors such as the appearance of small companies in the international circumstance recommend that Formosa Plastics Group Business Continuity Forever is prospering in a setting where there is prospective growth of businesses. Reality that store clients are mostly looking for workplace supplies for residence offices suggests that the market has a rising fad of entrepreneurs and residence based services.

Social factors: Social patterns in the economic climate reveal that consumers are searching for ease in addition to attractive costs. Marketing research demonstrates how the client for Formosa Plastics Group Business Continuity Forever does not have awareness concerning finding solutions which can offer a combination of ease as well as affordable.

Technological factors: Innovation plays a crucial function in Formosa Plastics Group Business Continuity Forever's service method especially as the organization is piloting Technology centers which would certainly provide modern technology sales as well as assistance in the kind of memory upgrades, peripheral installations. (Summary of INSECT in appendix 2).

OB Issues as well as Effects.

A number of underlying Business Behavior issues can be seen in Formosa Plastics Group Business Continuity Forever's case as highlighted in this area.

Uneasiness about cultural change: There is concern regarding a social adjustment that would certainly take place when Todd Krasnow leaves from his position as the Exec Vice President of Marketing with most of the employee currently revealing discontent over this possible action. This anticipated modification has developed stress in the work environment which has been combined with the past tension of preparing the firm for a prospective merger with House Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is scarcity of personnel that can match the stressful setting of a hectic organization. Not just does this bring about difficulty in finding the ideal individuals, it puts stress and anxiety on brand-new hires as can not endure the rate and also stress that the organization expects them to bear.

Double Coverage Lines: Beginners find this organizational culture difficult and also challenging to manage specifically as populated line partnerships are indicated to be weak in general and also objective setting and also efficiency examination is still done by the strong line manager. This suggests that newbies might lose clearness about their corresponding functions and also goals specifically as populated line reporting does not keep them in straight interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had been speculated that the last would certainly take Krasnow's position came as a blow to her morale. Lewis might have been qualified and also appropriate for the work but the fact that Kransnow's separation would certainly make Coles a straight report to Lewis may have been the reason for Coles' resignation from solutions.

Fear & Job Instability: Concern and insecurity can be recognized as two major concerns that Lewis would certainly be taking care of especially as the merging has actually now be terminated and also 2 senior executives of the advertising and marketing department would certainly be leaving. The whole obligation of the department would certainly be dropping on Lewis's shoulders that would not just be in charge of brining regarding a cultural adjustment however would certainly likewise have to prove herself in her new role.

Inappropriate Administration Style of Leader: Lewis's management style and also its conflict with the advertising and marketing division's function can also be seen as an OB obstacle especially as she has been utilized to handling problems in the operations division where personnel are taught to concentrate on processes as well as get them. The advertising and marketing department on the various other hand can be viewed as a group of individuals that are utilized to being nurtured by Krasnow who concentrated much more on result than processes.

Interdepartmental Disputes: Interdepartmental arguments in between 3 departments, advertising and marketing, merchandizing as well as operations respectively over the allocation of the marketing mix can be determined as an additional OB worry. Although the advertising and marketing division does not share the very same vision as the other two divisions relating to the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and operations divisions do not concur over the advertising mix appropriation among each other either.

Fragmentation in Marketing Department: Disintegration between the marketing and advertising divisions can be recognized as one more OB issue which can need further attention. The fact that the marketing and advertising sections in the marketing division are detached is avoiding both divisions from gaining from each various other's experience as well as experience. Assimilation of advertising and marketing with merchandising and also operations would come to be harder if the advertising and marketing division itself is disintegrated which can be another potential OB worry.

Formosa Plastics Group Business Continuity Forever Analysis

Different concepts have been utilized to describe the situations to obtain additional clarity about the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers think that staffs are easy and lazy, have little ambition and withstand modification. The hard variation of this concept stressed browbeating, tight controls, risks and also penalties. Over time it generates low efficiency, subtle sabotage and also competition (Bargain, 2003). The scenario at Formosa Plastics Group Business Continuity Forever is not completely complying with Concept 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 in the direction of Concept X. According to McGregor's promoted sight, which he called Concept Y, the important task of the monitoring is to prepare business conditions so that individuals can accomplish their own objectives best by guiding their initiatives in the direction of business benefits. If people locate no complete satisfaction in their work, the monitoring would certainly have little selection yet to rely on theory X and also outside control (Offer, 2003). Also while evaluating Lewis's management design, concept X might have appropriated in the procedures division to some extent yet the Advertising department would certainly require dependence on Theory Y so as to get the imagination as well as creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's worry concerning bringing consistency in between the marketing and advertising and marketing department is concerned, this would initially lead to clash as discussed by Bruce Tuckman in his 'Teamwork Concept'. By incorporating the advertising as well as marketing division's work, there may be the exact same initial disconnect which might lead to the second phase of 'storming' where the teams challenge one another.

When individuals are offered with change, they enter stage one and also so there may be emotions like unhappiness, uncertainty, disappointment, temper, anxiety, rejection as well as disorientation.The circumstance at the marketing division of Formosa Plastics Group Business Continuity Forever is similar so Lewis can get comfy with the concept that it is not remarkable behavior. It is during this stage that Lewis will have to provide assistance to the division so that they can find a feeling of instructions. It can be seen just how Krasnow has actually currently made this transition less complicated by making Lewis obtain involved in the department a year prior to his real departure.
Vrio Analysis
Maslow's Requirement power structure: The OB concern pertaining to insecurity at the office has been set off firstly by the modification in administration as well as secondly by the reality that the merging will certainly no longer be initiated. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has goes over the value of 'security needs as being a reduced degree demand of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to feel protected as well as safe' goes to the second level of demands. Prior to a staff member can be made to establish mentally, he requires to have his 'Physical 'and 'Safety' requires satisfied. This shows that unless the employees are made to really feel safe about their existing work status in Formosa Plastics Group Business Continuity Forever they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Formosa Plastics Group Business Continuity Forever Case Study



Implication of Analysis.

The OB analysis has checked out numerous concepts to understand how to manage the existing circumstance handy. The complying with 3 choices have actually been suggested to help Lewis deal with the business challenges in the advertising and marketing division. Each of these options has actually been suggested for alleviating the shift needed to bring the advertising department according to the requirements of the market and for making the social adjustment that would certainly adhere to as soon as the present leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and also Manufacturing features. Integration of Marketing with Operations.

Analysis of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis during the earlier merger days has proficiency in business-to-business advertising and marketing along with firm as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to handle both advertising and marketing and advertising and marketing features.

The advantage of this approach is that it will incorporate both features while lowering the requirement for working with an added resource for advertising. Lewis would certainly be heading the advertising and marketing division and in any type of case her substitute would certainly be required for the current duty that she is carrying out. The downside of this choice is that outside hiring may produce animosity from interior workers who might be eying the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Manufacturing: Offered the competitive stress as well as high quality work needed from the ad agency, it is advised that Lewis must enable the production system to be a separate feature from the marketing system. Considering that many ad agency had these 2 functions as different devices, it makes more feeling to adhere to the norm. In addition to this, both functions may be able to concentrate on their core triggers more effectively. Nonetheless, the negative aspect of this technique would be that additional prices would certainly have to be borne for setting up separate production functions. Along with this, a production head might have to be worked with which could boost expenses for the company.

Assimilation of Advertising And Marketing with Operations: Given that Lewis is currently taking care of the marketing and also procedures departments simultaneously; it makes feeling to integrate the 2 features considering that she has actually been effectively taking care of both ends. The reality that Lewis has to adapt her management style for the advertising division suggests that these 2 departments would certainly be culturally varied.

Suggestion.



An assessment of the three choices shows that combination of advertising as well as operations would certainly not be a practical move due to the substantial distinctions between both departments although that presently Lewis is handling both. While separation of the production function might have been a favorable action for the advertising division, the fact that it would mean placing a 3rd function under Lewis's wing indicates this must be avoided as well. The integration of the advertising and marketing department is the most effective option in regards to getting the ideal results from the department. An action plan for this alternative is gone over listed below.

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

Advertising and Marketing features would be combined.

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

Production feature will remain part of advertising and marketing under advertising function.

Lewis will certainly separate herself from procedures.

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

Open door plan as well as focus on cross departmental interaction will certainly be targeted at removing discord.

Contingency strategy.

If the integration does not exercise as intended, a contingency strategy would certainly adhere to which would certainly separate the manufacturing feature from the advertising feature to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising division without an SVP. Because case the manufacturing function will definitely be divided by putting it under an SVP production.