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

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

Background and Facts

Golden Leash Pay For Directors At The Dow Chemical Company a workplace products store for tiny and also medium sized businesses has lately been associated with planning for a merger with its rival House Deport, which has influenced performance degrees in departmentswith the senior manager involved in legal issues put forth by the federal Profession Commission. With the Advertising Head advancing the information of his separation from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the future. With obstacles in the form of a potential social adjustment as well as low worker morale, the company needs a full reengineering effort at the advertising division.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural adjustment at the marketing division of Golden Leash Pay For Directors At The Dow Chemical Company is raising uncertainty in the workplace resulting in various difficulties for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting tactical decisions considering that Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Profession Compensation's intervention at the same time. Provided the truth that the store has a global visibility with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these countries might be able to influence efficiency or critical goals. Federal Trade Payment's antitrust suit versus the merger took up important time of the organization's senior monitoring recommending that 'political' factors can have major ramifications for a worldwide company.

Economic Factors: Economic factors such as the appearance of local business in the worldwide scenario suggest that Golden Leash Pay For Directors At The Dow Chemical Company is thriving in an atmosphere where there is prospective development of organisations. Fact that store consumers are primarily looking for workplace materials for house workplaces recommends that the market has a climbing trend of business owners as well as residence based companies.

Social factors: Social fads in the economy reveal that clients are looking for convenience along with eye-catching rates. Market research demonstrates how the consumer for Golden Leash Pay For Directors At The Dow Chemical Company lacks understanding concerning discovering remedies which can offer a mix of convenience as well as inexpensive.

Technological factors: Modern technology plays an essential function in Golden Leash Pay For Directors At The Dow Chemical Company's company technique especially as the company is piloting Technology centers which would certainly supply technology sales as well as assistance in the type of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues and Symptoms.

Numerous underlying Organizational Actions concerns can be seen in Golden Leash Pay For Directors At The Dow Chemical Company's case as highlighted in this section.

Concerns regarding cultural modification: There is worry about a social modification that would certainly occur once Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising with the majority of the employee already showing unhappiness over this prospective relocation. This predicted adjustment has actually developed stress and anxiety in the workplace which has actually been combined with the previous anxiety of preparing the firm for a possible merging with Home Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is scarcity of workers that can match the difficult environment of a hectic organization. Not just does this result in trouble in discovering the right individuals, it puts stress on brand-new hires as can not withstand the speed and pressure that the organization anticipates them to bear.

Twin Coverage Lines: Newcomers find this organizational culture cumbersome and also challenging to cope with specifically as dotted line relationships are suggested to be weaker generally as well as unbiased setting and also efficiency analysis is still done by the solid line manager. This means that newcomers can lose clarity concerning their particular roles and also purposes specifically as populated line coverage does not maintain them in direct communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles despite the fact that it had actually been guessed that the last would certainly take Krasnow's setting came as a strike to her spirits. Lewis might have been qualified as well as proper for the task but the truth that Kransnow's separation would make Coles a straight record to Lewis may have been the reason for Coles' resignation from solutions.

Fear & Task Insecurity: Anxiety and also insecurity can be recognized as 2 significant issues that Lewis would certainly be managing especially as the merger has actually currently be terminated and also 2 senior executives of the advertising department would certainly be leaving. The whole responsibility of the department would be dropping on Lewis's shoulders that would not simply be in charge of brining concerning a social modification yet would also have to show herself in her new duty.

Inappropriate Management Design of Leader: Lewis's administration style as well as its incompatibility with the advertising and marketing department's duty can likewise be viewed as an OB challenge especially as she has actually been utilized to managing problems in the procedures division where workers are instructed to concentrate on processes and also obtain them right. The advertising and marketing division on the other hand can be seen as a team of individuals that are used to being nurtured by Krasnow that focused much more on output than procedures.

Interdepartmental Differences: Interdepartmental disagreements in between three divisions, advertising, merchandizing as well as operations respectively over the allocation of the advertising mix can be recognized as another OB issue. Although the advertising and marketing division does not share the same vision as the various other 2 departments relating to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and procedures divisions do not concur over the advertising and marketing mix appropriation amongst each other either.

Fragmentation in Advertising And Marketing Division: Fragmentation between the marketing and advertising departments can be identified as another OB problem which might require more interest. The truth that the marketing and advertising areas in the advertising division are separated is stopping both departments from getting from each other's experience and also expertise. Combination of advertising and marketing with retailing and also operations would become harder if the advertising department itself is degenerated which can be one more possible OB problem.

Golden Leash Pay For Directors At The Dow Chemical Company Analysis

Numerous theories have actually been used to explain the conditions to get more clarity regarding the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that juniors are passive as well as careless, have little ambition and withstand modification. The situation at Golden Leash Pay For Directors At The Dow Chemical Company is not totally following Theory X, it can be seen that brand-new hires are finding this environment instead difficult which may eventually lead to a higher inclination of the monitoring in the direction of Concept X. Even while assessing Lewis's monitoring style, concept X may have been suitable in the operations department to some extent yet the Marketing division would certainly need dependence on Theory Y in order to get the creativity and also originality from the teams.

Tuckman's Team effort Concept: As much as Lewis's issue concerning bringing consistency in between the marketing as well as advertising division is concerned, this would at first lead to clash as discussed by Bruce Tuckman in his 'Team effort Concept'. By combining the advertising and marketing and also marketing department's work, there may be the very same first separate which can lead to the second stage of 'storming' where the teams challenge one an additional.

When people are presented with modification, they go into stage one and also so there might be feelings like sadness, uncertainty, stress, anger, anxiety, rejection and also disorientation.The circumstance at the advertising and marketing department of Golden Leash Pay For Directors At The Dow Chemical Company is similar so Lewis can get comfortable with the idea that it is not phenomenal actions. It is throughout this phase that Lewis will have to offer guidance to the department so that they can find a sense of instructions. It can be seen how Krasnow has currently made this change easier by making Lewis obtain involved in the division a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has discusses the significance of 'safety needs as being a lower level requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel safe and out of threat' is at the second level of demands. Before an employee can be made to create mentally, he requires to have his 'Physiological 'and also 'Safety' needs fulfilled.

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



Implication of Analysis.

The OB analysis has actually considered numerous theories to understand exactly how to cope with the current circumstance available. The following three choices have been suggested to aid Lewis handle the organizational difficulties in the advertising and marketing department. Each of these alternatives has actually been suggested for reducing the shift needed to bring the advertising and marketing division according to the requirements of the marketplace as well as for making the cultural change that would follow when the current leader leaves.

Integration of marketing and advertising functions. Separating Adverting as well as Manufacturing features. Assimilation of Advertising And Marketing with Operations.

Examination of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merging days has know-how in business-to-business advertising along with firm and also retail advertising experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to manage both advertising and also advertising features.

The advantage of this approach is that it will incorporate both features while reducing the need for hiring an extra resource for marketing. Along with this, Lewis would be heading the advertising division and also regardless her substitute would be needed for the current duty that she is doing. The drawback of this option is that exterior hiring might cause bitterness from internal employees that may be considering the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Manufacturing: Offered the competitive pressures and top quality job called for from the ad agency, it is recommended that Lewis ought to allow the production unit to be a separate feature from the advertising device. Since most advertising agencies had these 2 features as separate devices, it makes even more sense to comply with the standard. Both functions might be able to focus on their core triggers more efficiently. However, the downside of this strategy would be that additional prices would certainly have to be borne for setting up separate manufacturing features. Along with this, a production head might have to be hired which might boost expenses for the organization.

Combination of Advertising with Workflows: Since Lewis is already dealing with the marketing as well as procedures departments at the same time; it makes sense to incorporate the two features considering that she has actually been efficiently dealing with both ends. The truth that the two divisions currently have major differences over appropriation of sources suggests that this combination may be able to produce consistency specifically as Lewis would be heading both ends.However there are different downsides of this step specifically as it would certainly place too much burden over Lewis's shoulders. The reality that Lewis needs to adapt her administration style for the advertising and marketing department suggests that these two divisions would be culturally diverse. Lewis might not be able to apply one kind of management design to both departments which could result in ineffectiveness in either one of the 2 features.

Recommendation.



An evaluation of the 3 choices indicates that integration of marketing and procedures would certainly not be a practical move due to the huge differences in between the two divisions regardless of the reality that currently Lewis is managing both. While splitting up of the production feature might have been a positive action for the advertising department, the reality that it would indicate placing a 3rd function under Lewis's wing means this ought to be stayed clear of.

Action Plan.
Recommendation
Lewis will take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be combined.

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

Manufacturing function will remain part of advertising under advertising function.

Lewis will certainly divide herself from operations.

An autonomous management style with worker empowerment will be utilized in advertising and marketing department.

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

Backup strategy.

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