Golden Leash Pay For Directors At The Dow Chemical Company Case Study Solution


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Golden Leash Pay For Directors At The Dow Chemical Company Case Study Help

Background and Facts

Golden Leash Pay For Directors At The Dow Chemical Company an office products seller for tiny and medium sized companies has actually just recently been involved in preparing for a merging with its competitor Home Deport, which has impacted efficiency levels in departmentswith the senior supervisor associated with lawful issues put forth by the federal Trade Payment. With the Marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the role in the near future. With obstacles in the kind of a possible social adjustment and also low staff member morale, the company requires a complete reengineering effort at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising department of Golden Leash Pay For Directors At The Dow Chemical Company is increasing uncertainty in the working environment bring about various challenges for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing calculated choices since Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Compensation's intervention in the process. Provided the truth that the store has an international existence with branches in UK, U.S.A., Canada and Germany, political consider each of these nations may have the ability to impact performance or critical goals. Federal Profession Payment's antitrust fit versus the merging took up useful time of the company's senior management recommending that 'political' factors can have severe implications for a global service.

Economic Factors: Financial factors such as the emergence of small companies in the global circumstance recommend that Golden Leash Pay For Directors At The Dow Chemical Company is flourishing in an atmosphere where there is possible development of companies. In addition to this, truth that shop customers are mainly seeking workplace supplies for office suggests that the marketplace has a climbing pattern of business owners as well as home based companies.

Social factors: Social trends in the economic situation reveal that clients are searching for convenience as well as attractive prices. Market research shows how the client for Golden Leash Pay For Directors At The Dow Chemical Company does not have recognition about discovering remedies which can offer a mix of convenience as well as affordable.

Technical factors: Technology plays a vital role in Golden Leash Pay For Directors At The Dow Chemical Company's organisation technique especially as the company is piloting Modern technology facilities which would use innovation sales as well as assistance in the form of memory upgrades, peripheral installments. (Recap of INSECT in appendix 2).

OB Issues and also Manifestations.

Numerous underlying Business Habits problems can be seen in Golden Leash Pay For Directors At The Dow Chemical Company's case as highlighted in this area.

Uneasiness regarding cultural modification: There is apprehension concerning a cultural adjustment that would occur when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with a lot of the employee currently showing unhappiness over this potential relocation. This predicted change has actually developed tension in the workplace which has actually been coupled with the previous anxiety of preparing the company for a prospective merger with Home Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is shortage of workers that can match the stressful setting of a busy organization. Not only does this lead to trouble in finding the appropriate individuals, it puts stress on brand-new hires as can not endure the speed as well as pressure that the organization expects them to birth.

Twin Coverage Lines: Novices locate this business society difficult and hard to deal with specifically as dotted line connections are indicated to be weak in general as well as unbiased setup and efficiency examination is still done by the strong line manager. This indicates that beginners can lose quality regarding their corresponding duties as well as goals especially as populated line reporting does not maintain them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had actually been hypothesized that the latter would take Krasnow's position came as an impact to her spirits. Lewis may have been qualified and suitable for the task however the truth that Kransnow's departure would make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Task Instability: Concern as well as instability can be identified as two significant worries that Lewis would be managing specifically as the merging has now be cancelled as well as two senior executives of the advertising division would be leaving. The entire duty of the department would certainly be falling on Lewis's shoulders that would not simply supervise of brining concerning a cultural adjustment however would also need to prove herself in her brand-new duty.

Inappropriate Monitoring Style of Leader: Lewis's management design as well as its conflict with the advertising and marketing division's duty can likewise be seen as an OB obstacle specifically as she has actually been made use of to taking care of issues in the procedures department where employees are educated to concentrate on procedures as well as get them right. The marketing department on the various other hand can be viewed as a team of people who are used to being nurtured by Krasnow who focused more on result than procedures.

Interdepartmental Differences: Interdepartmental disagreements between 3 departments, advertising, merchandizing as well as procedures specifically over the allocation of the advertising mix can be recognized as an additional OB issue. The advertising and marketing division does not share the exact same vision as the other 2 divisions concerning the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and operations departments do not concur over the marketing mix appropriation amongst one another either.

Fragmentation in Marketing Division: Fragmentation in between the advertising and marketing departments can be determined as an additional OB issue which could need further interest. The fact that the marketing and advertising areas in the marketing division are separated is protecting against both divisions from obtaining from each various other's experience and also proficiency. Combination of marketing with retailing and also operations would certainly end up being harder if the advertising and marketing division itself is disintegrated which can be an additional prospective OB issue.

Golden Leash Pay For Directors At The Dow Chemical Company Analysis

Various theories have actually been used to describe the scenarios to get further clarity concerning the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that subordinates are passive and also lazy, have little ambition as well as resist modification. The tough version of this concept highlighted coercion, limited controls, hazards as well as punishments. With time it generates low performance, refined sabotage and competition (Offer, 2003). The situation at Golden Leash Pay For Directors At The Dow Chemical Company is not entirely following Theory X, it can be seen that brand-new hires are finding this atmosphere instead demanding which might ultimately lead to a better disposition of the monitoring towards Theory X. Based on McGregor's promoted view, which he called Concept Y, the necessary task of the monitoring is to organize business problems so that people can attain their very own objectives best by routing their efforts in the direction of organizational incentives. If individuals find no complete satisfaction in their job, the monitoring would certainly have little option yet to rely upon concept X and also exterior control (Offer, 2003). Even while assessing Lewis's management style, concept X might have appropriated in the procedures division somewhat but the Advertising and marketing division would need reliance on Theory Y to get the creativity and also creativity from the groups.

Tuckman's Synergy Concept: As for Lewis's concern about bringing consistency in between the advertising and marketing department is worried, this would originally lead to clash as gone over by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). As per Tuckman's concept received appendix 3, throughout the first phase of team advancement, people might not bond, as they are busy locating their area in the group. By integrating the advertising and marketing department's job, there might coincide preliminary separate which could cause the second stage of 'storming' where the teams challenge each other. It is just during the 3rd phase or 'norming' when they would certainly come with each other to share suggestions before the team can bring around synergy in the fourth phase 'performing'.

When individuals are offered with adjustment, they enter stage one and also so there might be feelings like unhappiness, unpredictability, aggravation, anger, fear, denial as well as disorientation.The circumstance at the advertising division of Golden Leash Pay For Directors At The Dow Chemical Company is similar so Lewis can get comfortable with the suggestion that it is not phenomenal actions. It is during this phase that Lewis will certainly have to give advice to the division so that they can find a sense of instructions. It can be seen just how Krasnow has actually currently made this shift much easier by making Lewis get involved in the department a year before his real departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has reviews the significance of 'protection requires as being a lower degree need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel safe as well as out of threat' is at the 2nd degree of needs. Before a staff member can be made to establish psychologically, he requires to have his 'Physiological 'and 'Safety' requires met.

SWOT Analysis for Golden Leash Pay For Directors At The Dow Chemical Company Case Study

Effects of Analysis.

The OB analysis has actually considered different theories to understand just how to manage the present scenario handy. The following 3 choices have been proposed to assist Lewis deal with the business challenges in the advertising division. Each of these alternatives has actually been recommended for alleviating the change needed to bring the advertising department according to the demands of the marketplace and also for making the cultural modification that would certainly follow once the present leader leaves.

Combination of marketing and advertising functions. Separating Adverting and also Manufacturing features. Integration of Advertising with Procedures.

Evaluation of Alternatives.

Combination of Marketing & Advertising Functions: The in-house advertising firm of Golden Leash Pay For Directors At The Dow Chemical Company is currently toughness for the company in terms of conserving up on expenses connected to marketing and promo. Given that no new employment has actually been done after Bridget Cole's separation with the coverage line being straight designated to Krasnow for the advertising feature, this is a beneficial opportunity for incorporating the marketing and advertising functions. Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merger days has know-how in business-to-business marketing together with firm and also retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing functions.

The advantage of this approach is that it will certainly incorporate both features while minimizing the demand for employing an additional source for advertising and marketing. In addition to this, Lewis would certainly be heading the marketing department as well as in any case her replacement would certainly be needed for the present role that she is performing. The negative aspect of this choice is that exterior hiring might cause animosity from inner personnel that may be looking at the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and also Production: Offered the affordable pressures as well as high quality work called for from the advertising and marketing firm, it is suggested that Lewis must allow the manufacturing device to be a separate function from the advertising system. Because the majority of advertising agencies had these two features as different devices, it makes more feeling to follow the norm.

Combination of Advertising with Procedures: Given that Lewis is already caring for the advertising and marketing as well as operations departments simultaneously; it makes good sense to integrate both features since she has been effectively dealing with both ends. The truth that both divisions already have significant distinctions over allotment of resources recommends that this combination may have the ability to produce consistency especially as Lewis would be heading both ends.However there are numerous disadvantages of this action particularly as it would place too much problem over Lewis's shoulders. The reality that Lewis has to adjust her management design for the advertising division suggests that these 2 departments would be culturally varied. Along with this, Lewis may not be able to use one type of management design to both divisions which can cause inefficiency in either among both functions.


An analysis of the 3 alternatives suggests that integration of marketing and operations would not be a viable action due to the large distinctions between the 2 divisions despite the truth that currently Lewis is taking care of both. While splitting up of the production feature may have been a beneficial relocation for the marketing department, the fact that it would imply placing a third feature under Lewis's wing indicates this must be prevented.

Activity Strategy.
Lewis will certainly take control of the function of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Production function will certainly stay component of marketing under advertising feature.

Lewis will divide herself from procedures.

An autonomous leadership design with staff member empowerment will be used in advertising department.

Open up door plan and also focus on cross department communication will be targeted at eliminating discord.

Backup strategy.

If the assimilation does not work out as intended, a contingency plan would certainly 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 obtain worked with, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the production function will absolutely be divided by positioning it under an SVP manufacturing.