Futures On The Mexican Peso Case Study Solution


Home >> Harvard >> Futures On The Mexican Peso >>

Futures On The Mexican Peso Case Study Help

Background and Facts

Futures On The Mexican Peso an office products store for little and medium sized organisations has just recently been involved in planning for a merging with its competitor Residence Deport, which has influenced performance levels in departmentswith the senior supervisor involved in legal difficulties put forth by the government Profession Compensation. With the Advertising Head advancing the news of his separation from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the role in the future. With obstacles in the form of a potential social modification and low staff member spirits, the company is in need of a full reengineering effort at the marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the advertising and marketing division of Futures On The Mexican Peso is boosting uncertainty in the working environment bring about various challenges for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting strategic choices considering that Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Profession Payment's intervention at the same time. Provided the reality that the shop has a worldwide presence with branches in UK, USA, Canada and also Germany, political consider each of these nations might have the ability to impact performance or critical goals. Federal Trade Payment's antitrust fit versus the merger took up valuable time of the company's senior management suggesting that 'political' factors can have major ramifications for an international organisation.

Economic Factors: Financial factors such as the appearance of local business in the worldwide scenario suggest that Futures On The Mexican Peso is growing in an environment where there is prospective growth of companies. Along with this, truth that shop consumers are mostly seeking office supplies for office recommends that the market has a rising trend of entrepreneurs and online organisations.

Social factors: Social trends in the economy show that customers are seeking ease along with attractive costs. Marketing research shows how the consumer for Futures On The Mexican Peso lacks awareness concerning discovering options which can offer a mix of convenience as well as low costs.

Technical factors: Modern technology plays a crucial function in Futures On The Mexican Peso's business method particularly as the company is piloting Modern technology centers which would certainly provide technology sales and support in the kind of memory upgrades, outer setups. (Summary of BUG in appendix 2).

OB Issues and Effects.

Numerous underlying Business Habits issues can be seen in Futures On The Mexican Peso's case as highlighted in this area.

Uneasiness concerning social adjustment: There is concern concerning a cultural modification that would certainly occur as soon as Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with most of the employee currently showing discontent over this prospective action. This predicted adjustment has produced stress in the workplace which has been combined with the past stress and anxiety of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is shortage of personnel that can match the difficult setting of a fast-paced organization. Not only does this lead to difficulty in locating the right individuals, it puts stress and anxiety on new hires as can not stand up to the speed and stress that the organization anticipates them to birth.

Twin Reporting Lines: Newbies discover this business culture cumbersome and tough to manage especially as populated line partnerships are suggested to be weaker as a whole as well as objective setting as well as efficiency examination is still done by the solid line supervisor. This indicates that newcomers could lose clarity about their respective roles and objectives particularly as populated line coverage does not maintain them in straight interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had actually been guessed that the latter would certainly take Krasnow's placement came as a strike to her morale. Lewis might have been qualified and suitable for the task but the truth that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from solutions.

Concern & Task Instability: Fear and instability can be determined as 2 major worries that Lewis would be managing specifically as the merging has now be cancelled as well as 2 elderly executives of the marketing department would certainly be leaving. The entire duty of the department would certainly be dropping on Lewis's shoulders that would not simply be in charge of brining concerning a social adjustment but would likewise need to verify herself in her new function.

Incompatible Monitoring Design of Leader: Lewis's monitoring style as well as its conflict with the marketing division's role can additionally be seen as an OB challenge particularly as she has actually been utilized to managing concerns in the procedures department where personnel are educated to concentrate on procedures and also get them. The advertising and marketing department on the various other hand can be seen as a team of individuals who are utilized to being nurtured by Krasnow who focused much more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental arguments between 3 divisions, advertising and marketing, merchandizing and also procedures respectively over the allocation of the advertising mix can be recognized as another OB problem. Although the advertising department does not share the exact same vision as the various other 2 divisions regarding the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and operations divisions do not agree over the advertising and marketing mix appropriation among each other either.

Disintegration in Advertising Division: Disintegration in between the marketing and advertising departments can be identified as an additional OB concern which might require additional focus. The reality that the advertising and marketing areas in the marketing division are detached is stopping both divisions from gaining from each other's experience as well as know-how. Combination of advertising with retailing and operations would end up being more difficult if the marketing division itself is disintegrated which can be another prospective OB concern.

Futures On The Mexican Peso Analysis

Different concepts have been used to explain the conditions to get further clarity concerning the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors believe that juniors are passive and lazy, have little aspiration and withstand adjustment. The scenario at Futures On The Mexican Peso is not completely adhering to Theory X, it can be seen that new hires are discovering this setting instead stressful which might at some point lead to a higher inclination of the management in the direction of Concept X. Also while assessing Lewis's administration style, theory X might have been appropriate in the operations department to some extent however the Advertising and marketing division would require reliance on Concept Y in order to get the creative thinking and also creativity from the groups.

Tuckman's Synergy Concept: As much as Lewis's concern about bringing consistency between the advertising and marketing as well as marketing department is worried, this would at first lead to conflict as discussed by Bruce Tuckman in his 'Team effort Concept'. By combining the advertising and advertising and marketing division's work, there might be the same first detach which can lead to the 2nd phase of 'storming' where the teams test one an additional.

When people are provided with adjustment, they enter stage one as well as so there may be emotions like sadness, uncertainty, stress, anger, fear, rejection and disorientation.The situation at the advertising and marketing division of Futures On The Mexican Peso is comparable so Lewis can get comfy with the idea that it is not extraordinary habits. It is during this phase that Lewis will certainly have to give assistance to the division so that they can discover a feeling of direction. It can be seen how Krasnow has actually currently made this shift simpler by making Lewis get included in the division a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has discusses the importance of 'safety needs as being a reduced degree demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel safe and out of threat' is at the second degree of requirements. Prior to a staff member can be made to establish mentally, he needs to have his 'Physical 'and also 'Safety' requires met.

SWOT Analysis for Futures On The Mexican Peso Case Study

Effects of Analysis.

The OB analysis has actually looked at different theories to comprehend just how to cope with the existing circumstance available. The adhering to 3 alternatives have actually been recommended to help Lewis handle the business difficulties in the advertising division. Each of these choices has actually been suggested for reducing the transition required to bring the marketing department according to the demands of the market and for making the social change that would certainly adhere to once the existing leader leaves.

Integration of marketing and advertising features. Separating Adverting and also Production functions. Combination of Advertising with Operations.

Examination of Alternatives.

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

The advantage of this technique is that it will certainly integrate both features while minimizing the demand for employing an additional resource for advertising. Lewis would be heading the advertising division and also in any kind of case her replacement would certainly be required for the existing duty that she is doing. The drawback of this choice is that exterior hiring might cause animosity from interior workers who may be looking at the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and also Production: Offered the competitive stress and excellent quality job needed from the ad agency, it is suggested that Lewis should allow the production system to be a different function from the advertising device. Because a lot of advertising agencies had these two features as different systems, it makes even more sense to comply with the standard. Both functions may be able to concentrate on their core triggers more successfully. Nevertheless, the negative aspect of this strategy would be that additional expenses would have to be borne for establishing different production functions. Along with this, a production head may need to be worked with which can boost expenses for the organization.

Combination of Advertising with Workflows: Considering that Lewis is already looking after the advertising and procedures departments concurrently; it makes sense to integrate both features because she has been successfully taking care of both ends. The truth that both divisions currently have significant differences over allowance of resources suggests that this integration may have the ability to cause consistency especially as Lewis would be heading both ends.However there are various downsides of this move specifically as it would certainly place excessive burden over Lewis's shoulders. The fact that Lewis has to adapt her monitoring design for the advertising and marketing department recommends that these 2 divisions would certainly be culturally diverse. Lewis may not be able to apply one type of management style to both departments which could result in inefficiency in either one of the two functions.


An assessment of the 3 options indicates that assimilation of advertising as well as operations would certainly not be a practical step due to the substantial differences in between the two divisions despite the fact that currently Lewis is taking care of both. While separation of the production feature may have been a beneficial relocation for the advertising and marketing department, the fact that it would certainly imply putting a third feature under Lewis's wing means this must be avoided also. The assimilation of the marketing department is the very best alternative in terms of getting the optimum results from the department. An activity plan for this choice is gone over listed below.

Activity Plan.
Lewis will certainly take over the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

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

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

Lewis will certainly separate herself from operations.

An autonomous leadership design with worker empowerment will be made use of in marketing department.

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

Contingency strategy.

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