General Motors Corp B Financial Policies Case Study Solution


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General Motors Corp B Financial Policies Case Study Solution

Background and Facts

General Motors Corp B Financial Policies an office supplies store for tiny as well as medium sized businesses has recently been associated with preparing for a merging with its competitor Residence Deport, which has actually affected effectiveness levels in departmentswith the elderly manager associated with lawful issues put forth by the government Profession Payment. With the Marketing Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the duty in the future. With obstacles in the form of a possible cultural change as well as reduced staff member spirits, the organization needs a full reengineering initiative at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective social modification at the advertising and marketing department of General Motors Corp B Financial Policies is boosting uncertainty in the working environment resulting in various difficulties for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting strategic choices given that Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Trade Commission's treatment at the same time. Offered the truth that the store has a worldwide visibility with branches in UK, UNITED STATES, Canada and Germany, political consider each of these countries might be able to influence performance or strategic objectives. Federal Profession Payment's antitrust match versus the merging used up useful time of the organization's senior administration recommending that 'political' factors can have significant effects for a worldwide business.

Economic Factors: Financial factors such as the development of small businesses in the worldwide situation suggest that General Motors Corp B Financial Policies is prospering in a setting where there is possible growth of companies. Truth that store clients are mainly looking for workplace supplies for residence workplaces suggests that the market has an increasing trend of entrepreneurs as well as house based organisations.

Social factors: Social trends in the economic climate show that consumers are trying to find ease as well as eye-catching rates. Marketing research demonstrates how the consumer for General Motors Corp B Financial Policies lacks awareness regarding locating services which can supply a mix of comfort and also low costs.

Technical factors: Technology plays an important function in General Motors Corp B Financial Policies's organisation approach specifically as the organization is piloting Innovation centers which would certainly use technology sales and also assistance in the form of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues and Symptoms.

Numerous underlying Organizational Actions issues can be seen in General Motors Corp B Financial Policies's case as highlighted in this area.

Concerns about social modification: There is concern concerning a social adjustment that would take place as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising And Marketing with the majority of the personnel already revealing discontent over this prospective relocation. This predicted change has actually created tension in the office which has actually been paired with the past tension of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Demanding Job Atmosphere for Newcomers: There is scarcity of personnel that can match the demanding atmosphere of a fast-paced company. Not just does this result in problem in discovering the right people, it puts stress and anxiety on brand-new hires as can not stand up to the pace as well as stress that the organization anticipates them to birth.

Double Coverage Lines: Beginners find this business society difficult and challenging to cope with particularly as dotted line relationships are suggested to be weaker generally as well as unbiased setup as well as efficiency evaluation is still done by the solid line manager. This indicates that newbies could shed clearness about their corresponding duties and goals especially as dotted line reporting does not keep them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles even though it had actually been guessed that the latter would certainly take Krasnow's setting came as a strike to her morale. Lewis might have been qualified as well as proper for the job however the truth that Kransnow's separation would make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Work Instability: Fear and also instability can be recognized as two major issues that Lewis would be handling especially as the merger has now be cancelled and also 2 senior executives of the advertising department would certainly be leaving. The whole obligation of the department would be dropping on Lewis's shoulders who would not just supervise of brining about a social adjustment however would additionally need to prove herself in her new role.

Incompatible Administration Design of Leader: Lewis's administration design and also its incompatibility with the marketing department's function can also be seen as an OB challenge especially as she has actually been made use of to taking care of problems in the operations department where personnel are taught to focus on procedures as well as obtain them. The marketing department on the various other hand can be viewed as a team of people that are used to being supported by Krasnow who focused a lot more on output than procedures.

Interdepartmental Disputes: Interdepartmental disputes between 3 divisions, advertising, merchandizing and procedures respectively over the appropriation of the advertising and marketing mix can be determined as an additional OB worry. Although the advertising department does not share the very same vision as the various other 2 departments pertaining to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing as well as procedures departments do not concur over the marketing mix allocation amongst each other either.

Fragmentation in Advertising Department: Fragmentation in between the advertising and marketing divisions can be recognized as another OB issue which might need more interest. The reality that the marketing and advertising sections in the advertising and marketing division are separated is stopping both departments from getting from each other's experience and also competence. Integration of advertising and marketing with retailing and also procedures would come to be harder if the advertising department itself is disintegrated which can be another prospective OB issue.

General Motors Corp B Financial Policies Analysis

Different theories have actually been utilized to explain the circumstances to obtain more clarity concerning the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that juniors are passive and also lazy, have little aspiration and also stand up to change. The scenario at General Motors Corp B Financial Policies is not completely complying with Theory X, it can be seen that new hires are locating this setting rather stressful which might at some point lead to a greater disposition of the administration towards Theory X. Even while assessing Lewis's management style, theory X might have been appropriate in the operations division to some extent but the Marketing division would call for dependence on Concept Y in order to get the creativity and creativity from the teams.

Tuckman's Synergy Concept: As much as Lewis's issue about bringing harmony in between the advertising and also marketing department is concerned, this would at first lead to contrast as reviewed by Bruce Tuckman in his 'Synergy Theory'. By incorporating the advertising and advertising division's job, there may be the exact same first disconnect which might lead to the 2nd phase of 'storming' where the teams test one another.

When individuals are offered with change, they get in phase one and also so there might be feelings like unhappiness, unpredictability, disappointment, rage, fear, denial and disorientation.The scenario at the marketing division of General Motors Corp B Financial Policies is comparable so Lewis can get comfortable with the concept 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 sense of instructions. It can be seen how Krasnow has currently made this shift simpler by making Lewis obtain included in the division a year prior to his actual separation.
Vrio Analysis
Maslow's Need power structure: The OB problem pertaining to instability at the workplace has been caused firstly by the modification in management and also secondly by the reality that the merger will certainly no longer be launched. Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has goes over the significance of 'safety needs as being a lower level demand of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to really feel safe and secure as well as safe' goes to the second level of needs. Before a staff member can be made to create emotionally, he needs to have his 'Physical 'as well as 'Safety and security' needs fulfilled. This suggests that unless the workers are made to feel safe about their existing work status in General Motors Corp B Financial Policies they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for General Motors Corp B Financial Policies Case Study

Effects of Analysis.

The OB analysis has actually checked out numerous theories to understand just how to deal with the existing scenario available. The complying with three choices have been recommended to help Lewis take care of the business difficulties in the marketing division. Each of these choices has been recommended for relieving the transition needed to bring the advertising and marketing department according to the needs of the market and also for making the cultural change that would adhere to when the current leader leaves.

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

Analysis of Alternatives.

Integration of Advertising And Marketing & Advertising And Marketing Functions: The internal advertising agency of General Motors Corp B Financial Policies is already strength for the organization in regards to conserving up on overheads connected to advertising and marketing as well as promo. Since no brand-new recruitment has actually been done after Bridget Cole's separation with the reporting line being straight designated to Krasnow for the advertising feature, this is a beneficial chance for integrating the advertising and marketing functions. Judith Shapiro who has earlier been talked to by Lewis during the earlier merging days has knowledge in business-to-business advertising along with company and retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to deal with both advertising and marketing features.

The advantage of this strategy is that it will certainly integrate both features while minimizing the demand for hiring an additional resource for marketing. Along with this, Lewis would certainly be heading the advertising and marketing department and also regardless her substitute would certainly be needed for the present function that she is doing. The negative aspect of this choice is that external hiring may cause resentment from interior personnel who might be eying the placement of EVP after Lewis takes over Krasnow's placement.

Separating Adverting as well as Manufacturing: Provided the competitive pressures and premium quality work needed from the ad agency, it is suggested that Lewis ought to allow the manufacturing unit to be a separate feature from the marketing device. Because many ad agency had these 2 features as separate devices, it makes more feeling to adhere to the norm. Along with this, both functions might have the ability to concentrate on their core turns on extra effectively. The drawback of this technique would be that additional prices would certainly have to be birthed for establishing up separate production features. A production head might have to be worked with which can raise expenses for the company.

Integration of Marketing with Procedures: Because Lewis is already taking treatment of the advertising and operations divisions simultaneously; it makes feeling to integrate the two functions since she has been efficiently taking care of both ends. The reality that Lewis has to adapt her management design for the advertising division recommends that these 2 departments would be culturally diverse.


An examination of the three choices suggests that assimilation of marketing and also operations would not be a feasible step due to the huge distinctions in between the two divisions despite the fact that presently Lewis is handling both. While splitting up of the manufacturing feature might have been a desirable action for the advertising and marketing division, the reality that it would imply positioning a third function under Lewis's wing implies this should be prevented also. The integration of the advertising and marketing department is the best option in terms of obtaining the ideal arise from the division. An action plan for this alternative is discussed listed below.

Activity Strategy.
Lewis will take control of the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing features 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 stay component of advertising and marketing under marketing feature.

Lewis will certainly divide herself from operations.

An autonomous leadership style with employee empowerment will certainly be utilized in advertising and marketing department.

Open door plan and also emphasis on cross department interaction will certainly be aimed at getting rid of dissonance.

Contingency strategy.

If the combination does not work out as planned, a contingency plan would certainly comply with which would divide the production feature from the advertising and marketing function to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the production feature will absolutely be divided by positioning it under an SVP manufacturing.