Gulf Bank Re Building A Bank Case Study Analysis


Home >> Harvard >> Gulf Bank Re Building A Bank >>

Gulf Bank Re Building A Bank Case Study Solution

Background and Facts

Gulf Bank Re Building A Bank an office products seller for little and also moderate sized companies has lately been involved in planning for a merger with its rival Residence Deport, which has actually influenced efficiency degrees in departmentswith the senior manager associated with lawful difficulties presented by the government Profession Compensation. With the Marketing Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the function in the future. With challenges in the type of a prospective social adjustment as well as reduced worker spirits, the company wants a complete reengineering effort at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The prospective social change at the advertising and marketing department of Gulf Bank Re Building A Bank is increasing unpredictability in the working environment causing different 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 role in affecting tactical decisions since Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Profession Compensation's intervention at the same time. Given the fact that the shop has a global existence with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these nations might have the ability to influence performance or calculated objectives. Federal Trade Payment's antitrust match versus the merging used up beneficial time of the organization's elderly monitoring suggesting that 'political' factors can have major implications for a global organisation.

Economic Factors: Financial factors such as the emergence of small companies in the global circumstance recommend that Gulf Bank Re Building A Bank is growing in an environment where there is prospective development of companies. Truth that store clients are primarily looking for office materials for residence workplaces suggests that the market has a climbing fad of business owners and also residence based companies.

Social factors: Social fads in the economy show that customers are seeking convenience in addition to appealing rates. Marketing research shows how the consumer for Gulf Bank Re Building A Bank does not have awareness concerning locating options which can provide a mix of ease and inexpensive.

Technical factors: Innovation plays an important role in Gulf Bank Re Building A Bank's service technique especially as the organization is piloting Modern technology facilities which would offer innovation sales as well as support in the form of memory upgrades, outer setups. (Recap of PEST in appendix 2).

OB Issues as well as Manifestations.

Several underlying Organizational Actions issues can be seen in Gulf Bank Re Building A Bank's case as highlighted in this area.

Worries regarding social adjustment: There is concern about a cultural adjustment that would take place when Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Marketing with the majority of the staff members already revealing discontent over this possible move. This anticipated modification has produced stress and anxiety in the office which has actually been combined with the previous anxiety of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is shortage of personnel that can match the difficult atmosphere of a hectic organization. Not only does this cause difficulty in finding the appropriate people, it places anxiety on brand-new hires as can not stand up to the speed and also stress that the organization anticipates them to birth.

Dual Coverage Lines: Newbies locate this organizational society troublesome and also challenging to cope with especially as populated line connections are implied to be weak as a whole and objective setup and also performance examination is still done by the strong line supervisor. This means that newbies can shed clarity regarding their respective roles and objectives especially as populated line coverage does not maintain them in straight communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles despite the fact that it had been guessed that the last would certainly take Krasnow's placement came as a blow to her morale. Lewis may have been capable as well as ideal for the work however the reality that Kransnow's separation would make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.

Concern & Work Insecurity: Concern as well as insecurity can be recognized as two major issues that Lewis would be taking care of especially as the merger has now be terminated as well as two senior execs of the advertising and marketing division would be leaving. The entire duty of the division would certainly be dropping on Lewis's shoulders who would certainly not simply be in charge of brining regarding a social adjustment yet would additionally have to prove herself in her brand-new function.

Incompatible Management Design of Leader: Lewis's administration design and also its conflict with the advertising and marketing department's duty can additionally be viewed as an OB obstacle particularly as she has been used to handling problems in the procedures division where employees are shown to focus on procedures and also obtain them right. The advertising and marketing department on the other hand can be viewed as a group of people who are utilized to being nurtured by Krasnow who focused extra on result than procedures.

Interdepartmental Differences: Interdepartmental disagreements between three departments, marketing, merchandizing and operations specifically over the appropriation of the marketing mix can be determined as another OB issue. Although the advertising division does not share the very same vision as the other 2 departments regarding the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and also procedures divisions do not agree over the advertising mix allotment amongst one another either.

Disintegration in Marketing Division: Fragmentation between the advertising and marketing departments can be recognized as another OB problem which might need further focus. The fact that the marketing and advertising sections in the advertising division are detached is stopping both divisions from acquiring from each various other's experience and also proficiency. Assimilation of advertising with merchandising and operations would come to be harder if the advertising department itself is broken down which can be an additional prospective OB concern.

Gulf Bank Re Building A Bank Analysis

Different theories have actually been made use of to discuss the scenarios to obtain more quality concerning the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that juniors are easy and also lazy, have little aspiration and stand up to change. The difficult variation of this concept emphasized coercion, tight controls, hazards and also penalties. In time it generates low productivity, refined sabotage as well as rivalry (Offer, 2003). Although the circumstance at Gulf Bank Re Building A Bank is not totally complying with Theory X, it can be seen that new hires are finding this setting instead stressful which might eventually cause a greater disposition of the monitoring in the direction of Theory X. According to McGregor's supported view, which he called Concept Y, the crucial job of the administration is to prepare organizational problems to ensure that individuals can achieve their own goals best by directing their efforts towards business benefits. If people find no fulfillment in their work, the administration would certainly have little selection but to depend on theory X and outside control (Bargain, 2003). Also while evaluating Lewis's monitoring design, concept X might have been suitable in the procedures department to some extent but the Marketing division would certainly require dependence on Concept Y to get the creativity and originality from the teams.

Tuckman's Teamwork Concept: As far as Lewis's concern about bringing consistency between the marketing as well as marketing division is concerned, this would originally lead to conflict as talked about by Bruce Tuckman in his 'Teamwork Concept'. By integrating the advertising as well as marketing department's job, there might be the very same first separate which could lead to the second phase of 'storming' where the teams test one an additional.

When people are provided with change, they enter phase one and also so there might be emotions like sadness, uncertainty, disappointment, rage, worry, denial and also disorientation.The situation at the advertising and marketing department of Gulf Bank Re Building A Bank is comparable so Lewis can obtain comfortable with the idea that it is not extraordinary habits. It is during this phase that Lewis will have to give support to the division so that they can find a feeling of instructions. It can be seen exactly how Krasnow has currently made this transition simpler by making Lewis get included in the division a year prior to his real separation.
Vrio Analysis
Maslow's Requirement pecking order: The OB problem related to insecurity at the workplace has been activated first of all by the change in monitoring and second of all by the fact that the merger will no longer be started. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has reviews the value of 'security needs as being a reduced degree demand of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to feel protected as well as out of danger' is at the 2nd level of demands. Prior to a staff member can be made to establish psychologically, he needs to have his 'Physical 'and 'Safety and security' requires fulfilled. This indicates that unless the employees are made to really feel protected about their present work condition in Gulf Bank Re Building A Bank they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Gulf Bank Re Building A Bank Case Study

Ramification of Analysis.

The OB analysis has checked out different theories to understand just how to manage the current circumstance at hand. The following three alternatives have actually been suggested to aid Lewis handle the business challenges in the advertising department. Each of these options has actually been proposed for reducing the shift needed to bring the advertising department in line with the needs of the marketplace and also for making the cultural adjustment that would certainly adhere to when the current leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting as well as Manufacturing functions. Assimilation of Marketing with Operations.

Evaluation of Alternatives.

Integration of Advertising And Marketing & Advertising And Marketing Functions: The internal advertising and marketing company of Gulf Bank Re Building A Bank is currently strength for the organization in terms of conserving up on overheads associated with advertising as well as promotion. Considering that no new recruitment has been done after Bridget Cole's separation with the reporting line being directly appointed to Krasnow for the advertising and marketing feature, this is a favorable chance for incorporating the advertising and marketing functions. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merger days has competence in business-to-business advertising together with company and retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both advertising and marketing features.

The advantage of this technique is that it will certainly incorporate both functions while decreasing the requirement for working with an additional source for advertising and marketing. Along with this, Lewis would be heading the marketing division and regardless her substitute would certainly be needed for the existing function that she is carrying out. The downside of this alternative is that external hiring may bring about resentment from interior employees that may be considering the position of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Production: Offered the affordable stress as well as high quality job called for from the advertising and marketing firm, it is recommended that Lewis should allow the manufacturing system to be a separate function from the advertising and marketing unit. Since many marketing companies had these two features as separate systems, it makes more feeling to follow the norm.

Combination of Advertising with Operations: Considering that Lewis is already taking care of the marketing as well as operations departments concurrently; it makes sense to incorporate the 2 features since she has actually been effectively taking care of both ends. The reality that Lewis has to adapt her management design for the marketing division suggests that these 2 divisions would be culturally diverse.


An assessment of the 3 choices indicates that integration of advertising and procedures would certainly not be a viable action as a result of the huge differences in between the two divisions despite the fact that presently Lewis is taking care of both. While splitting up of the manufacturing function might have been a favorable step for the marketing division, the reality that it would certainly imply positioning a third function under Lewis's wing means this must be prevented. The assimilation of the advertising division is the most effective choice in regards to getting the optimal results from the division. An activity prepare for this alternative is reviewed listed below.

Activity Plan.
Lewis will take control of the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

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

Lewis will separate herself from operations.

An autonomous leadership design with employee empowerment will be made use of in advertising and marketing department.

Open door policy and focus on cross department communication will be focused on removing disharmony.

Backup plan.

If the combination does not exercise as intended, a backup plan would certainly follow which would certainly divide the production function from the advertising and marketing function to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the manufacturing feature will definitely be divided by placing it under an SVP manufacturing.