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Hayman Capital Management Case Study Analysis

Background and Facts

Hayman Capital Management a workplace materials store for tiny and moderate sized businesses has lately been involved in preparing for a merger with its competitor House Deport, which has influenced performance levels in departmentswith the senior supervisor involved in legal difficulties presented by the federal Trade Payment. With the Advertising and marketing Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the near future. With difficulties in the form of a potential social modification as well as reduced employee spirits, the organization is in need of a total reengineering effort at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The potential social change at the advertising and marketing division of Hayman Capital Management is increasing unpredictability in the workplace leading to numerous obstacles for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting strategic choices considering that Stapes Inc. had to abandon its plans of merging with Office Deport after the Federal Trade Compensation's treatment in the process. Offered the reality that the store has an international presence with branches in UK, USA, Canada as well as Germany, political consider each of these countries may be able to affect performance or critical objectives. Federal Profession Compensation's antitrust suit against the merger occupied valuable time of the organization's elderly administration recommending that 'political' factors can have serious ramifications for a global service.

Economic Factors: Economic factors such as the introduction of small businesses in the worldwide scenario recommend that Hayman Capital Management is flourishing in a setting where there is potential development of services. Truth that shop clients are mainly looking for office products for residence offices recommends that the market has a climbing fad of entrepreneurs and residence based organisations.

Social factors: Social trends in the economic climate reveal that customers are searching for comfort along with eye-catching costs. Marketing research shows how the client for Hayman Capital Management does not have recognition about finding options which can supply a mix of convenience as well as inexpensive.

Technical factors: Modern technology plays a vital function in Hayman Capital Management's organisation technique particularly as the company is piloting Innovation facilities which would provide technology sales and also support in the type of memory upgrades, outer installations. (Recap of PARASITE in appendix 2).

OB Issues and Symptoms.

Numerous underlying Organizational Actions issues can be seen in Hayman Capital Management's case as highlighted in this section.

Worries concerning social modification: There is concern concerning a cultural change that would certainly happen once Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with a lot of the employee currently revealing unhappiness over this possible step. This anticipated adjustment has actually produced stress in the office which has actually been coupled with the previous anxiety of preparing the firm for a prospective merger with Home Deport.
Pest Analysis
Demanding Job Atmosphere for Newcomers: There is scarcity of personnel that can match the stressful environment of a fast-paced company. Not just does this result in trouble in locating the ideal individuals, it places anxiety on new hires as can not endure the rate as well as stress that the organization anticipates them to bear.

Dual Reporting Lines: Novices discover this organizational society cumbersome and hard to handle specifically as dotted line relationships are indicated to be weaker in general and also objective setting and efficiency evaluation is still done by the solid line supervisor. This suggests that novices might lose clearness about their corresponding roles and goals specifically as dotted line coverage does not maintain them in straight communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles even though it had been hypothesized that the latter would certainly take Krasnow's position came as a blow to her spirits. Lewis might have been qualified and also ideal for the task however the truth that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Job Instability: Anxiety and also instability can be identified as two major concerns that Lewis would certainly be managing especially as the merger has actually now be cancelled and also 2 elderly executives of the marketing division would be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders that would not simply supervise of brining concerning a social modification but would certainly also have to show herself in her brand-new duty.

Incompatible Management Style of Leader: Lewis's management design as well as its incompatibility with the advertising division's duty can also be seen as an OB obstacle particularly as she has been used to dealing with problems in the operations department where personnel are shown to focus on procedures as well as get them. The advertising division on the various other hand can be viewed as a team of individuals that are used to being nurtured by Krasnow that focused extra on output than procedures.

Interdepartmental Differences: Interdepartmental arguments between 3 divisions, advertising, merchandizing as well as operations respectively over the appropriation of the advertising mix can be recognized as an additional OB concern. The advertising department does not share the exact same vision as the other 2 divisions pertaining to the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and procedures departments do not agree over the advertising mix allocation among one another either.

Fragmentation in Marketing Division: Fragmentation between the marketing and advertising departments can be identified as an additional OB concern which could need further attention. The fact that the marketing and advertising areas in the advertising and marketing department are separated is protecting against both divisions from acquiring from each various other's experience and also know-how. Integration of advertising with retailing and also procedures would certainly end up being harder if the marketing division itself is disintegrated which can be another potential OB problem.

Hayman Capital Management Analysis

Various concepts have been used to clarify the conditions to obtain further clearness regarding the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers believe that subordinates are easy and also lazy, have little ambition and also resist adjustment. The difficult variation of this concept emphasized threat, tight controls, dangers and also penalties. Gradually it produces reduced efficiency, refined sabotage and also rivalry (Deal, 2003). Although the situation at Hayman Capital Management is not completely complying with Theory X, it can be seen that new hires are discovering this setting instead demanding which might at some point cause a higher disposition of the administration in the direction of Concept X. As per McGregor's advocated view, which he called Theory Y, the essential job of the monitoring is to set up organizational conditions to make sure that individuals can achieve their own objectives best by routing their efforts in the direction of organizational rewards. If people discover no fulfillment in their job, the management would certainly have little choice but to rely upon concept X and also external control (Bargain, 2003). Even while analyzing Lewis's monitoring design, theory X might have been suitable in the operations division somewhat yet the Marketing division would certainly need dependence on Concept Y so as to get the creativity as well as creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's concern about bringing consistency in between the advertising and marketing division is worried, this would initially bring about clash as reviewed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, throughout the first phase of team development, individuals might not bond, as they are hectic locating their area in the group. By incorporating the marketing and advertising division's work, there may coincide preliminary disconnect which could result in the second stage of 'storming' where the teams test one another. It is just during the 3rd phase or 'norming' when they would certainly come together to share ideas prior to the group can bring about synergy in the 4th stage 'executing'.

When people are offered with change, they go into stage one and also so there may be emotions like sadness, uncertainty, irritation, rage, fear, rejection and also disorientation.The scenario at the marketing division of Hayman Capital Management is similar so Lewis can get comfy with the concept that it is not remarkable actions. It is throughout this phase that Lewis will have to offer assistance to the division so that they can discover a feeling of instructions. It can be seen how Krasnow has already made this change less complicated by making Lewis obtain involved in the division a year prior to his actual separation.
Vrio Analysis
Maslow's Requirement power structure: The OB issue pertaining to instability at the workplace has actually been set off first of all by the change in administration and secondly by the truth that the merging will certainly no longer be initiated. Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has discusses the relevance of 'security needs as being a lower degree requirement of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel safe and also unharmed' is at the 2nd degree of needs. Prior to a staff member can be made to create emotionally, he needs to have his 'Physical 'and also 'Security' requires met. This suggests that unless the employees are made to feel safe regarding their existing employment status in Hayman Capital Management they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Hayman Capital Management Case Study

Ramification of Analysis.

The OB analysis has actually looked at different concepts to recognize how to cope with the current situation available. The adhering to 3 options have actually been recommended to assist Lewis deal with the organizational obstacles in the advertising and marketing department. Each of these alternatives has been proposed for reducing the transition needed to bring the advertising and marketing division in line with the requirements of the market as well as for making the social adjustment that would certainly comply with as soon as the current leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting and Manufacturing features. Combination of Advertising And Marketing with Operations.

Analysis of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis during the earlier merging days has know-how in business-to-business advertising and marketing along with agency as well as retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to handle both advertising and marketing and also advertising and marketing functions.

The advantage of this strategy is that it will certainly incorporate both features while decreasing the requirement for hiring an added resource for marketing. Along with this, Lewis would certainly be heading the advertising department and also in any case her substitute would be needed for the present function that she is carrying out. The drawback of this option is that outside hiring may cause animosity from inner workers that may be looking at the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting as well as Manufacturing: Offered the competitive stress and high quality work called for from the marketing company, it is advised that Lewis should enable the manufacturing unit to be a different feature from the marketing unit. Given that a lot of advertising agencies had these 2 functions as different systems, it makes more feeling to adhere to the norm.

Assimilation of Advertising with Procedures: Because Lewis is currently taking treatment of the advertising and marketing and operations departments all at once; it makes feeling to integrate the 2 features given that she has been successfully taking treatment of both ends. The reality that Lewis has to adjust her administration design for the advertising and marketing division suggests that these two departments would certainly be culturally varied.


An evaluation of the 3 options suggests that combination of advertising as well as procedures would not be a feasible step due to the huge differences between both divisions although that currently Lewis is managing both. While splitting up of the production feature might have been a desirable action for the marketing department, the fact that it would certainly indicate positioning a third feature under Lewis's wing means this must be stayed clear of too. The combination of the marketing division is the best choice in regards to obtaining the optimal results from the division. An activity plan for this choice is reviewed below.

Action Strategy.
Lewis will take over the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

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

Lewis will certainly separate herself from operations.

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

Open door policy and also focus on cross departmental communication will be aimed at getting rid of disharmony.

Contingency plan.

If the combination does not work out as intended, a backup plan would certainly comply with which would divide the manufacturing function from the marketing function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising division without an SVP. Because case the manufacturing feature will absolutely be divided by putting it under an SVP manufacturing.