Goldman Sachs Group Inc Sustaining The Franchise Case Study Solution


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Background and Facts

Goldman Sachs Group Inc Sustaining The Franchise an office materials merchant for small and medium sized organisations has actually just recently been involved in planning for a merging with its rival House Deport, which has influenced efficiency levels in departmentswith the elderly manager involved in lawful difficulties presented by the government Trade Commission. With the Advertising and marketing Head putting forward the news of his departure from the firm in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the near future. With difficulties in the kind of a potential cultural adjustment as well as reduced employee spirits, the organization wants a full reengineering effort at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural change at the advertising department of Goldman Sachs Group Inc Sustaining The Franchise is boosting unpredictability in the working environment resulting in numerous obstacles for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting tactical choices given that Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Trade Compensation's treatment while doing so. Offered the truth that the store has an international visibility with branches in UK, USA, Canada and also Germany, political factors in each of these countries may have the ability to affect efficiency or critical objectives. Federal Profession Commission's antitrust match versus the merger took up valuable time of the company's senior administration recommending that 'political' factors can have serious effects for a worldwide organisation.

Economic Factors: Financial factors such as the emergence of small companies in the worldwide situation suggest that Goldman Sachs Group Inc Sustaining The Franchise is prospering in an environment where there is prospective growth of companies. Truth that shop consumers are mostly looking for office products for house workplaces suggests that the market has a rising pattern of entrepreneurs as well as home based companies.

Social factors: Social patterns in the economic situation reveal that consumers are searching for benefit along with attractive prices. Marketing research shows how the consumer for Goldman Sachs Group Inc Sustaining The Franchise does not have understanding regarding locating solutions which can use a combination of comfort as well as affordable.

Technical factors: Modern technology plays a vital role in Goldman Sachs Group Inc Sustaining The Franchise's company method specifically as the organization is piloting Innovation facilities which would certainly provide technology sales and also assistance in the form of memory upgrades, peripheral setups. (Recap of BUG in appendix 2).

OB Issues and also Effects.

A number of underlying Organizational Habits problems can be seen in Goldman Sachs Group Inc Sustaining The Franchise's case as highlighted in this section.

Concerns regarding cultural change: There is concern concerning a social adjustment that would take place when Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with the majority of the personnel currently showing unhappiness over this potential step. This expected change has actually produced tension in the office which has been combined with the previous stress of preparing the firm for a prospective merging with House Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is scarcity of workers that can match the stressful environment of a busy company. Not just does this result in trouble in discovering the best individuals, it places tension on brand-new hires as can not withstand the rate as well as pressure that the company expects them to bear.

Twin Reporting Lines: Novices locate this organizational society troublesome and also difficult to deal with specifically as populated line connections are implied to be weak as a whole and also objective setting and efficiency examination is still done by the solid line manager. This implies that beginners might shed clearness regarding their particular duties and objectives specifically as populated line reporting does not maintain them in straight interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles although it had actually been guessed that the latter would take Krasnow's setting came as a blow to her morale. Lewis might have been qualified and also suitable for the work but the fact that Kransnow's separation would make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Worry & Task Insecurity: Worry and insecurity can be recognized as 2 major issues that Lewis would certainly be managing especially as the merging has now be terminated as well as 2 senior execs of the advertising department would certainly be leaving. The entire duty of the department would be dropping on Lewis's shoulders that would certainly not simply supervise of brining regarding a social change however would certainly likewise have to prove herself in her new role.

Incompatible Monitoring Style of Leader: Lewis's management design as well as its incompatibility with the marketing division's duty can also be viewed as an OB obstacle especially as she has been made use of to taking care of issues in the operations division where workers are educated to focus on processes and also obtain them right. The marketing division on the other hand can be viewed as a team of people who are made use of to being nurtured by Krasnow who concentrated more on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements in between three divisions, advertising and marketing, merchandizing as well as procedures respectively over the allotment of the advertising mix can be determined as one more OB issue. The advertising and marketing department does not share the very same vision as the various other two departments relating to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and operations departments do not concur over the advertising mix allotment among one an additional either.

Disintegration in Advertising And Marketing Division: Disintegration in between the advertising and marketing divisions can be determined as an additional OB issue which can require further attention. The reality that the marketing and advertising sections in the advertising department are disconnected is stopping both divisions from obtaining from each other's experience and competence. Integration of advertising with retailing and also procedures would come to be harder if the advertising department itself is degenerated which can be an additional prospective OB concern.

Goldman Sachs Group Inc Sustaining The Franchise Analysis

Numerous theories have been utilized to explain the conditions to obtain additional clarity about the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers think that subordinates are easy and also careless, have little ambition and also stand up to change. The difficult version of this concept emphasized threat, tight controls, risks and penalties. Gradually it creates low productivity, refined sabotage and competition (Offer, 2003). Although the situation at Goldman Sachs Group Inc Sustaining The Franchise is not completely complying with Theory X, it can be seen that brand-new hires are locating this setting rather demanding which may at some point result in a greater inclination of the management in the direction of Theory X. As per McGregor's promoted sight, which he called Concept Y, the essential task of the management is to arrange organizational problems to make sure that individuals can attain their very own goals best by directing their efforts towards organizational rewards. If individuals locate no complete satisfaction in their job, the monitoring would have little selection but to depend on theory X as well as outside control (Offer, 2003). Even while analyzing Lewis's management style, concept X might have been suitable in the operations department to some extent however the Marketing department would certainly need dependence on Concept Y so as to get the imagination as well as creativity from the groups.

Tuckman's Team effort Concept: As much as Lewis's worry about bringing harmony in between the advertising and also advertising and marketing department is concerned, this would originally lead to conflict as reviewed by Bruce Tuckman in his 'Synergy Theory'. By combining the marketing and also advertising division's work, there may be the very same first detach which might lead to the second phase of 'storming' where the groups test one an additional.

When people are offered with modification, they get in phase one and so there may be feelings like unhappiness, uncertainty, disappointment, rage, worry, denial and disorientation.The scenario at the advertising division of Goldman Sachs Group Inc Sustaining The Franchise is similar so Lewis can get comfy with the concept that it is not amazing habits. It is throughout this phase that Lewis will certainly have to offer assistance to the division so that they can locate a sense of direction. It can be seen how Krasnow has actually currently made this transition simpler by making Lewis obtain involved in the department a year prior to his actual departure.
Vrio Analysis
Maslow's Need hierarchy: The OB concern pertaining to instability at the office has been set off to start with by the modification in administration and second of all by the reality that the merging will certainly no more be started. Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has discusses the relevance of 'safety needs as being a lower degree requirement of a human for causing inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the demand to feel protected and also unharmed' is at the 2nd level of demands. Before a staff member can be made to develop mentally, he requires to have his 'Physiological 'as well as 'Safety and security' requires met. This suggests that unless the workers are made to really feel safe and secure regarding their existing work condition in Goldman Sachs Group Inc Sustaining The Franchise they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Goldman Sachs Group Inc Sustaining The Franchise Case Study

Effects of Analysis.

The OB analysis has actually taken a look at different concepts to comprehend exactly how to manage the current circumstance at hand. The adhering to three alternatives have been recommended to help Lewis manage the organizational obstacles in the marketing division. Each of these choices has been suggested for reducing the transition needed to bring the advertising division according to the needs of the marketplace and for making the social adjustment that would follow once the existing leader leaves.

Combination of advertising and marketing functions. Separating Adverting as well as Manufacturing features. Integration of Advertising with Workflow.

Examination of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merging days has proficiency in business-to-business marketing along with agency as well as retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both marketing and also advertising features.

The benefit of this technique is that it will integrate the two features while reducing the requirement for employing an extra source for advertising and marketing. In addition to this, Lewis would certainly be heading the advertising division and also in any case her substitute would certainly be needed for the current role that she is executing. The downside of this option is that external hiring might bring about animosity from inner workers who may be looking at the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and Production: Given the competitive stress and also top quality job called for from the advertising agency, it is advised that Lewis ought to allow the production system to be a separate feature from the advertising and marketing unit. Considering that most ad agency had these 2 functions as separate systems, it makes more feeling to adhere to the norm. Both features may be able to concentrate on their core turns on much more efficiently. The downside of this approach would certainly be that extra costs would certainly have to be borne for establishing up different manufacturing features. A production head might have to be employed which could enhance overheads for the organization.

Combination of Advertising And Marketing with Procedures: Considering that Lewis is already taking treatment of the advertising as well as operations divisions at the same time; it makes sense to incorporate the 2 functions because she has been efficiently taking treatment of both ends. The reality that Lewis has to adjust her management style for the advertising and marketing division suggests that these two departments would be culturally diverse.


An analysis of the 3 options shows that integration of advertising and operations would certainly not be a feasible move because of the large distinctions in between the two divisions although that presently Lewis is dealing with both. While splitting up of the production feature may have been a beneficial move for the marketing department, the truth that it would suggest placing a 3rd function under Lewis's wing means this should be avoided also. The integration of the advertising division is the very best option in regards to getting the optimum results from the department. An activity plan for this option is reviewed listed below.

Activity Strategy.
Lewis will certainly take over the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

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

Lewis will divide herself from operations.

An autonomous leadership design with staff member empowerment will certainly be made use of in advertising department.

Open up door plan as well as emphasis on cross department interaction will certainly be targeted at getting rid of disharmony.

Contingency plan.

If the combination does not exercise as planned, a backup strategy would adhere to which would certainly separate the production feature from the advertising and marketing function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising division without an SVP. In that case the production feature will certainly be divided by putting it under an SVP manufacturing.