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Goldman Sachs And Its Reputation Case Study Analysis

CASE STUDY

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Goldman Sachs And Its Reputation Case Study Analysis

Background and Facts

Goldman Sachs And Its Reputation an office materials seller for tiny and also moderate sized organisations has actually recently been involved in planning for a merger with its competitor House Deport, which has impacted efficiency degrees in departmentswith the senior manager associated with legal complications put forth by the federal Profession Compensation. With the Advertising Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the near future. With challenges in the kind of a prospective cultural change and also reduced employee morale, the organization needs a total reengineering initiative at the advertising and marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing division of Goldman Sachs And Its Reputation is increasing uncertainty in the workplace bring about different obstacles for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting critical choices because Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Trade Compensation's treatment in the process. Offered the truth that the store has a global existence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries might have the ability to impact efficiency or strategic objectives. Federal Trade Compensation's antitrust match against the merger used up beneficial time of the organization's senior monitoring suggesting that 'political' factors can have serious ramifications for a global service.

Economic Factors: Financial factors such as the appearance of small companies in the worldwide scenario suggest that Goldman Sachs And Its Reputation is flourishing in a setting where there is prospective development of organisations. Truth that store clients are mainly looking for office supplies for house offices recommends that the market has a climbing trend of entrepreneurs and home based organisations.

Social factors: Social patterns in the economic situation reveal that consumers are searching for benefit in addition to appealing prices. Marketing research shows how the customer for Goldman Sachs And Its Reputation lacks awareness regarding locating services which can use a mix of ease and low costs.

Technological factors: Innovation plays an important duty in Goldman Sachs And Its Reputation's company method especially as the company is piloting Technology centers which would certainly use technology sales and also support in the type of memory upgrades, peripheral installations. (Summary of BUG in appendix 2).

OB Issues and Manifestations.

Several underlying Business Habits issues can be seen in Goldman Sachs And Its Reputation's case as highlighted in this section.

Worries about cultural adjustment: There is concern regarding a social modification that would happen 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 team member already revealing discontent over this potential move. This anticipated adjustment has produced stress in the office which has been coupled with the past tension of preparing the firm for a prospective merging with House Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is scarcity of personnel that can match the stressful setting of a busy company. Not just does this cause problem in locating the ideal individuals, it puts stress and anxiety on brand-new hires as can not hold up against the rate and stress that the organization anticipates them to bear.

Twin Reporting Lines: Newbies discover this business society difficult as well as hard to handle particularly as populated line relationships are meant to be weak in general as well as unbiased setting and also performance evaluation is still done by the strong line manager. This indicates that beginners could shed quality concerning their respective duties as well as purposes specifically as populated line coverage does not maintain them in direct interaction with the strong line managers.

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 placement came as a strike to her spirits. Lewis may have been qualified and also ideal for the work but the fact that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Anxiety & Task Insecurity: Worry as well as insecurity can be identified as two major issues that Lewis would be handling particularly as the merging has actually now be cancelled as well as 2 senior executives of the advertising and marketing division would be leaving. The whole duty of the division would certainly be dropping on Lewis's shoulders that would not simply be in charge of brining about a social change yet would likewise have to show herself in her brand-new role.

Inappropriate Administration Design of Leader: Lewis's monitoring design and also its incompatibility with the advertising division's duty can also be seen as an OB difficulty particularly as she has been made use of to handling problems in the procedures department where personnel are instructed to focus on processes and get them. The advertising department on the various other hand can be seen as a group of people who are made use of to being nurtured by Krasnow that concentrated extra on result than procedures.

Interdepartmental Disputes: Interdepartmental disagreements in between 3 departments, advertising, merchandizing and procedures respectively over the allotment of the advertising and marketing mix can be identified as one more OB issue. The advertising department does not share the same vision as the other 2 departments concerning the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as procedures departments do not agree over the advertising mix appropriation amongst one an additional either.

Fragmentation in Advertising Department: Fragmentation between the marketing and advertising divisions can be identified as another OB problem which might require further attention. The truth that the advertising and marketing areas in the advertising department are separated is protecting against both divisions from acquiring from each other's experience as well as expertise. Integration of marketing with retailing and also procedures would end up being more difficult if the advertising division itself is broken down which can be an additional prospective OB concern.

Goldman Sachs And Its Reputation Analysis

Numerous theories have actually been utilized to clarify 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 believe that juniors are easy and lazy, have little aspiration and stand up to change. The circumstance at Goldman Sachs And Its Reputation is not entirely complying with Theory X, it can be seen that new hires are locating this setting rather stressful which might ultimately lead to a higher inclination of the administration in the direction of Concept X. Also while analyzing Lewis's management design, concept X might have been appropriate in the operations division to some extent but the Marketing division would certainly need dependence on Theory Y in order to get the creativity and also originality from the groups.

Tuckman's Teamwork Concept: As for Lewis's concern about bringing harmony in between the advertising and marketing department is worried, this would at first result in conflict as gone over by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's theory displayed in appendix 3, throughout the first stage of group advancement, individuals might not bond, as they are active locating their location in the group. By combining the marketing and advertising division's work, there might be the same preliminary detach which could cause the 2nd phase of 'storming' where the teams test each other. It is only during the 3rd phase or 'norming' when they would come together to share ideas before the group can bring around harmony in the 4th stage 'carrying out'.

Bridges' Change Design: Based On William Bridge's theory (appendix 4), individuals are fairly uneasy with modification, which is evident by the scenario at Goldman Sachs And Its Reputation The circumstance can be seen as a normal course of life if is studied as per Bridge's theory where he describes that people go through three stages of shift when they experience adjustment. 'End, losing and also Releasing', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they go into phase one therefore there may be emotions like despair, uncertainty, aggravation, anger, concern, rejection and disorientation.The circumstance at the advertising department of Goldman Sachs And Its Reputation is similar so Lewis can obtain comfortable with the concept that it is not phenomenal actions. In the second phase, there might be a demand to bridge the void between the brand-new as well as old culture so Lewis may need to encounter this ordeal once Krasnow leaves. There may be low spirits as well as reduced efficiency at this phase which need to not be taken as a setback. It is during this phase that Lewis will need to give guidance to the division so that they can find a sense of direction. It can be seen how Krasnow has currently made this change less complicated by making Lewis get involved in the department a year prior to his real separation. According to Bridges' Version, stage three will certainly cause visibility to discovering, High energy and dedication as individuals will accept the change (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB issue related to instability at the workplace has actually been triggered to start with by the adjustment in management as well as second of all by the fact that the merger will certainly no longer be initiated. Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has talks about the value of 'safety and security requires as being a lower level demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel secure as well as out of danger' goes to the 2nd level of demands. Prior to a staff member can be made to develop mentally, he requires to have his 'Physiological 'and 'Safety' needs satisfied. This indicates that unless the workers are made to really feel secure regarding their current work standing in Goldman Sachs And Its Reputation they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Goldman Sachs And Its Reputation Case Study



Ramification of Analysis.

The OB analysis has checked out numerous theories to comprehend just how to cope with the current scenario at hand. The following three options have actually been recommended to aid Lewis take care of the organizational obstacles in the advertising and marketing division. Each of these options has actually been proposed for alleviating the change needed to bring the marketing department in line with the needs of the market as well as for making the social change that would certainly follow once the present leader leaves.

Combination of advertising and marketing functions. Dividing Adverting as well as Manufacturing functions. Combination of Advertising And Marketing with Procedures.

Examination of Alternatives.

Combination of Advertising And Marketing & Advertising Functions: The in-house marketing company of Goldman Sachs And Its Reputation is currently strength for the company in regards to saving up on overheads connected to advertising and also promotion. Considering that no brand-new employment has been done after Bridget Cole's departure with the coverage line being directly designated to Krasnow for the marketing function, this is a beneficial opportunity for incorporating the marketing and advertising functions. Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merger days has experience in business-to-business advertising and marketing in addition to company as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to take care of both advertising and marketing features.

The advantage of this strategy is that it will certainly integrate the two features while reducing the demand for employing an added resource for advertising. In addition to this, Lewis would certainly be heading the marketing department and also all the same her replacement would be required for the present role that she is carrying out. The drawback of this alternative is that external hiring might produce animosity from internal employees who may be looking at the placement of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting as well as Production: Provided the affordable stress and high quality work needed from the advertising agency, it is recommended that Lewis needs to enable the production device to be a different feature from the marketing system. Because many ad agency had these two features as different systems, it makes more sense to adhere to the norm. In addition to this, both functions may have the ability to concentrate on their core turns on a lot more effectively. The disadvantage of this technique would certainly be that extra costs would certainly have to be borne for establishing up different manufacturing features. Along with this, a production head might need to be worked with which can boost overheads for the company.

Combination of Advertising with Operations: Considering that Lewis is already looking after the advertising and marketing and also operations departments at the same time; it makes sense to incorporate both features because she has actually been effectively caring for both ends. The fact that the two departments already have significant differences over appropriation of resources recommends that this assimilation might have the ability to cause harmony especially as Lewis would certainly be heading both ends.However there are numerous drawbacks of this step specifically as it would place too much burden over Lewis's shoulders. The fact that Lewis needs to adapt her administration design for the marketing department recommends that these two departments would be culturally varied. Lewis might not be able to use one type of management design to both divisions which might result in inadequacy in either one of the two functions.

Suggestion.



An evaluation of the 3 alternatives indicates that integration of advertising and marketing and also procedures would certainly not be a viable relocation because of the vast distinctions in between both divisions despite the fact that currently Lewis is managing both. While splitting up of the manufacturing function might have been a beneficial action for the marketing department, the reality that it would indicate positioning a third feature under Lewis's wing means this ought to be stayed clear of. The assimilation of the advertising division is the most effective choice in terms of getting the ideal arise from the department. An activity plan for this choice is discussed listed below.

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

Marketing and advertising features would be merged.

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

Production function will certainly continue to be component of advertising and marketing under marketing feature.

Lewis will certainly divide herself from operations.

A democratic management design with employee empowerment will certainly be utilized in marketing department.

Open door plan and also emphasis on cross department communication will be targeted at removing disharmony.

Contingency strategy.

If the assimilation does not exercise as intended, a contingency strategy would certainly comply with which would certainly separate the manufacturing function from the advertising function to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the advertising department without an SVP. In that case the production feature will definitely be divided by putting it under an SVP manufacturing.