Handelsbanken May 2002 Case Study Help


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Handelsbanken May 2002 Case Study Help

Background and Facts

Handelsbanken May 2002 an office materials store for little and also average sized businesses has actually lately been involved in planning for a merging with its rival Home Deport, which has actually impacted effectiveness levels in departmentswith the elderly manager involved in lawful issues presented by the federal Profession Compensation. With the Advertising and 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 function in the future. With obstacles in the form of a possible cultural adjustment and also low staff member spirits, the company requires a full reengineering effort at the marketing department.

Problem Statement
Porter's 5 Forces Analysis
The potential social change at the marketing division of Handelsbanken May 2002 is raising uncertainty in the workplace resulting in different challenges for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing strategic decisions given that Stapes Inc. had to desert its strategies of combining with Workplace Deport after the Federal Profession Payment's intervention while doing so. Given the reality that the store has an international existence with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these countries may be able to influence performance or strategic goals. Federal Trade Compensation's antitrust fit versus the merging used up useful time of the company's elderly monitoring suggesting that 'political' factors can have serious ramifications for an international organisation.

Economic Factors: Financial factors such as the introduction of small businesses in the global scenario recommend that Handelsbanken May 2002 is thriving in a setting where there is possible growth of organisations. Fact that shop clients are mostly looking for office supplies for residence workplaces suggests that the market has a climbing pattern of business owners and home based organisations.

Social factors: Social fads in the economy reveal that consumers are seeking ease along with attractive rates. Market research shows how the client for Handelsbanken May 2002 does not have awareness concerning locating remedies which can offer a mix of convenience and also inexpensive.

Technical factors: Innovation plays a crucial function in Handelsbanken May 2002's service strategy particularly as the organization is piloting Modern technology centers which would offer modern technology sales and also support in the kind of memory upgrades, peripheral setups. (Recap of BUG in appendix 2).

OB Issues and also Symptoms.

Several underlying Business Actions issues can be seen in Handelsbanken May 2002's case as highlighted in this section.

Apprehensions about cultural modification: There is concern about a social adjustment that would happen as soon as Todd Krasnow leaves from his setting as the Executive Vice President of Advertising And Marketing with the majority of the employee currently showing unhappiness over this potential relocation. This expected adjustment has actually produced anxiety in the work environment which has actually been paired with the past tension of preparing the company for a potential merger with House Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is scarcity of workers that can match the stressful atmosphere of a busy company. Not just does this bring about trouble in discovering the best people, it puts stress and anxiety on brand-new hires as can not endure the speed as well as stress that the company expects them to birth.

Dual Coverage Lines: Newbies find this organizational culture troublesome and challenging to handle especially as populated line relationships are suggested to be weaker as a whole and objective setup and performance examination is still done by the strong line supervisor. This suggests that newbies could lose clearness regarding their particular roles and also purposes specifically as dotted line reporting does not keep them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles despite the fact that it had been hypothesized that the latter would take Krasnow's setting came as a blow to her spirits. Lewis might have been capable and also proper for the job yet the fact that Kransnow's departure would make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Fear & Job Insecurity: Anxiety and also insecurity can be recognized as two significant worries that Lewis would be managing especially as the merger has actually now be cancelled and also 2 senior executives of the marketing department would certainly be leaving. The entire obligation of the division would be falling on Lewis's shoulders that would not just supervise of brining concerning a social modification but would certainly additionally have to verify herself in her new function.

Inappropriate Management Design of Leader: Lewis's administration design as well as its incompatibility with the advertising and marketing division's function can additionally be seen as an OB challenge specifically as she has actually been utilized to taking care of concerns in the operations department where employees are instructed to focus on processes and get them. The marketing department on the other hand can be seen as a team of individuals who are used to being supported by Krasnow who focused a lot more on output than processes.

Interdepartmental Differences: Interdepartmental disputes in between 3 divisions, advertising, merchandizing and also procedures respectively over the allowance of the advertising and marketing mix can be determined as one more OB issue. The advertising and marketing department does not share the exact same vision as the other 2 departments pertaining to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as procedures departments do not agree over the marketing mix allocation amongst one another either.

Fragmentation in Advertising And Marketing Division: Disintegration between the marketing and advertising divisions can be recognized as another OB concern which can require more focus. The truth 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 competence. Combination of marketing with retailing as well as procedures would become more difficult if the marketing division itself is disintegrated which can be another potential OB problem.

Handelsbanken May 2002 Analysis

Different concepts have been utilized to clarify the conditions to obtain more clearness about the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers believe that juniors are passive and also lazy, have little passion and stand up to adjustment. The scenario at Handelsbanken May 2002 is not entirely complying with Concept X, it can be seen that brand-new hires are discovering this setting rather stressful which may eventually lead to a higher disposition of the management towards Theory X. Even while analyzing Lewis's management style, theory X may have been appropriate in the procedures department to some degree yet the Advertising and marketing department would certainly need dependence on Theory Y in order to obtain the imagination as well as originality from the groups.

Tuckman's Teamwork Concept: Regarding Lewis's issue about bringing consistency between the advertising and marketing department is concerned, this would originally result in conflict as talked about by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, throughout the initial phase of group growth, individuals might not bond, as they are busy finding their place in the group. By integrating the marketing and advertising division's work, there may coincide first disconnect which can cause the 2nd stage of 'storming' where the groups test each other. Nevertheless, it is only during the 3rd stage or 'norming' when they would collaborate to share ideas before the group can produce harmony in the fourth stage 'doing'.

When people are presented with change, they get in phase one and also so there may be feelings like despair, unpredictability, aggravation, temper, fear, rejection as well as disorientation.The circumstance at the advertising department of Handelsbanken May 2002 is comparable so Lewis can obtain comfortable with the suggestion that it is not remarkable behavior. It is during this phase that Lewis will have to offer assistance to the department so that they can find a feeling of direction. It can be seen exactly how Krasnow has actually already made this shift much easier by making Lewis obtain involved in the department a year before his actual departure.
Vrio Analysis
Maslow's Need pecking order: The OB problem pertaining to insecurity at the office has been triggered first of all by the modification in administration as well as second of all by the reality that the merging will certainly no more be initiated. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has discusses the relevance of 'safety needs as being a reduced degree demand of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel safe and secure and untouched' is at the 2nd degree of demands. Before an employee can be made to establish emotionally, he requires to have his 'Physical 'and also 'Security' needs met. This suggests that unless the personnel are made to really feel safe about their existing work status in Handelsbanken May 2002 they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Handelsbanken May 2002 Case Study

Ramification of Analysis.

The OB analysis has actually considered different concepts to comprehend exactly how to cope with the present situation at hand. The complying with 3 choices have actually been proposed to help Lewis deal with the organizational difficulties in the marketing department. Each of these alternatives has been suggested for alleviating the change needed to bring the advertising and marketing department according to the demands of the marketplace and also for making the cultural modification that would comply with when the current leader leaves.

Integration of advertising and marketing features. Separating Adverting and also Production features. Integration of Advertising with Operations.

Examination of Alternatives.

Combination of Advertising And Marketing & Marketing Functions: The internal advertising firm of Handelsbanken May 2002 is currently strength for the company in regards to saving up on overheads related to advertising and also promotion. Since no brand-new recruitment has been done after Bridget Cole's separation with the reporting line being directly appointed to Krasnow for the advertising function, this is a positive chance for integrating the advertising and marketing features. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merging days has knowledge in business-to-business marketing in addition to firm as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both marketing and advertising functions.

The benefit of this approach is that it will incorporate the two functions while minimizing the demand for hiring an added source for marketing. Along with this, Lewis would certainly be heading the advertising and marketing division and also all the same her replacement would certainly be needed for the existing function that she is performing. The downside of this choice is that external hiring might produce animosity from interior workers that might be considering the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Manufacturing: Offered the competitive pressures and top quality job called for from the advertising agency, it is recommended that Lewis needs to permit the manufacturing system to be a separate function from the advertising and marketing unit. Considering that a lot of advertising agencies had these two features as separate devices, it makes more sense to comply with the standard. Both features might be able to focus on their core activates much more effectively. The downside of this method would be that extra costs would have to be borne for establishing up different manufacturing features. In addition to this, a manufacturing head might need to be employed which could raise overheads for the organization.

Integration of Advertising with Workflows: Given that Lewis is currently taking care of the marketing as well as operations departments at the same time; it makes good sense to integrate both features since she has actually been effectively caring for both ends. The truth that the two departments already have significant distinctions over allotment of resources suggests that this combination may be able to produce harmony particularly as Lewis would certainly be heading both ends.However there are numerous disadvantages of this step particularly as it would put excessive problem over Lewis's shoulders. The fact that Lewis has to adjust her administration style for the advertising department suggests that these 2 departments would certainly be culturally varied. Along with this, Lewis may not be able to use one sort of leadership style to both divisions which could cause inefficiency in either one of both features.


An examination of the 3 choices shows that combination of advertising and also operations would certainly not be a possible action due to the vast differences between the two divisions in spite of the reality that currently Lewis is taking care of both. While splitting up of the production feature may have been a positive relocation for the marketing department, the reality that it would mean positioning a third function under Lewis's wing suggests this should be prevented.

Activity Strategy.
Lewis will take control of the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

Production feature will certainly stay part of advertising under advertising function.

Lewis will separate herself from procedures.

A democratic leadership style with worker empowerment will certainly be made use of in marketing department.

Open door plan as well as emphasis on cross departmental communication will certainly be aimed at removing disharmony.

Backup strategy.

If the integration does not exercise as prepared, a backup strategy would certainly adhere to which would certainly divide the production function from the advertising function to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the marketing department without an SVP. In that case the manufacturing feature will absolutely be separated by putting it under an SVP manufacturing.