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Hong Kong Dragon Airlines Limited A Determining The Cost Of Capital Case Study Analysis

CASE ANALYSIS

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Hong Kong Dragon Airlines Limited A Determining The Cost Of Capital Case Study Solution

Background and Facts

Hong Kong Dragon Airlines Limited A Determining The Cost Of Capital a workplace materials retailer for little as well as moderate sized businesses has lately been involved in planning for a merging with its rival Residence Deport, which has affected effectiveness levels in departmentswith the elderly manager associated with lawful complications put forth by the government Trade Payment. With the Marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the future. With obstacles in the kind of a possible cultural modification and also reduced worker morale, the company wants a total reengineering initiative at the advertising and marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The potential cultural change at the advertising and marketing division of Hong Kong Dragon Airlines Limited A Determining The Cost Of Capital is enhancing uncertainty in the working environment causing different obstacles for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting tactical decisions because Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Trade Compensation's treatment while doing so. Offered the reality that the store has an international presence with branches in UK, USA, Canada and Germany, political factors in each of these nations may be able to impact efficiency or calculated objectives. Federal Profession Payment's antitrust fit against the merger used up useful time of the organization's elderly monitoring suggesting that 'political' factors can have significant effects for an international company.

Economic Factors: Economic factors such as the appearance of local business in the worldwide situation suggest that Hong Kong Dragon Airlines Limited A Determining The Cost Of Capital is thriving in a setting where there is prospective growth of services. Fact that store consumers are mainly looking for workplace products for home workplaces recommends that the market has an increasing trend of entrepreneurs and house based businesses.

Social factors: Social patterns in the economic situation reveal that clients are seeking benefit as well as attractive rates. Marketing research demonstrates how the consumer for Hong Kong Dragon Airlines Limited A Determining The Cost Of Capital lacks recognition concerning finding services which can use a mix of convenience as well as inexpensive.

Technological factors: Modern technology plays a crucial role in Hong Kong Dragon Airlines Limited A Determining The Cost Of Capital's company approach especially as the company is piloting Innovation facilities which would certainly offer modern technology sales and also support in the type of memory upgrades, outer installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Symptoms.

Several underlying Business Actions concerns can be seen in Hong Kong Dragon Airlines Limited A Determining The Cost Of Capital's case as highlighted in this section.

Concerns about cultural adjustment: There is worry concerning a social adjustment that would certainly occur as soon as Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Marketing with the majority of the staff members currently revealing unhappiness over this potential step. This anticipated modification has developed stress and anxiety in the workplace which has been paired with the past stress and anxiety of preparing the company for a possible merger with House Deport.
Pest Analysis
Demanding Job Atmosphere for Newcomers: There is scarcity of personnel that can match the difficult setting of a busy company. Not only does this result in problem in locating the appropriate individuals, it places stress and anxiety on new hires as can not endure the pace and also pressure that the company expects them to birth.

Double Reporting Lines: Novices find this business society difficult and challenging to handle especially as dotted line relationships are implied to be weaker as a whole as well as objective setting and also performance evaluation is still done by the strong line supervisor. This means that beginners can shed clarity regarding their respective duties and also goals specifically as dotted line reporting does not keep them in straight interaction with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had actually been hypothesized that the last would take Krasnow's setting came as a blow to her morale. Lewis might have been qualified as well as suitable for the work but the truth that Kransnow's separation would make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Work Instability: Fear as well as insecurity can be recognized as two major worries that Lewis would certainly be taking care of especially as the merger has now be terminated and also two elderly executives of the advertising and marketing department would certainly be leaving. The entire obligation of the division would certainly be dropping on Lewis's shoulders that would not just supervise of brining regarding a cultural adjustment yet would certainly also have to verify herself in her brand-new role.

Inappropriate Monitoring Style of Leader: Lewis's administration style as well as its incompatibility with the advertising and marketing department's role can additionally be viewed as an OB difficulty especially as she has actually been made use of to handling problems in the operations division where personnel are taught to focus on processes and obtain them right. The advertising and marketing division on the other hand can be viewed as a group of individuals that are utilized to being supported by Krasnow who focused a lot more on result than processes.

Interdepartmental Differences: Interdepartmental differences in between 3 departments, advertising, merchandizing and also procedures respectively over the allocation of the advertising mix can be identified as an additional OB concern. The marketing division does not share the very same vision as the various other 2 divisions concerning the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and operations divisions do not concur over the advertising mix appropriation among one an additional either.

Fragmentation in Marketing Division: Disintegration between the marketing and advertising divisions can be recognized as another OB issue which could need additional attention. The fact that the advertising and marketing areas in the advertising and marketing division are detached is stopping both departments from acquiring from each other's experience and also competence. Assimilation of advertising with merchandising and procedures would end up being harder if the advertising department itself is disintegrated which can be another potential OB problem.

Hong Kong Dragon Airlines Limited A Determining The Cost Of Capital Analysis

Different concepts have been made use of to explain the circumstances to get further clarity about the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers think that staffs are passive and also lazy, have little aspiration and also withstand change. The difficult version of this concept highlighted threat, tight controls, threats and penalties. In time it produces reduced efficiency, refined sabotage as well as competition (Offer, 2003). The situation at Hong Kong Dragon Airlines Limited A Determining The Cost Of Capital is not entirely adhering to Theory X, it can be seen that brand-new hires are finding this atmosphere instead demanding which may eventually lead to a better inclination of the management towards Theory X. As per McGregor's advocated view, which he called Concept Y, the necessary task of the administration is to arrange organizational conditions so that people can accomplish their very own goals best by routing their efforts in the direction of organizational rewards. If individuals discover no fulfillment in their work, the management would certainly have little option yet to rely on concept X and exterior control (Offer, 2003). Also while analyzing Lewis's administration design, concept X might have appropriated in the operations department somewhat yet the Advertising department would certainly require dependence on Theory Y in order to get the creative thinking as well as originality from the teams.

Tuckman's Teamwork Concept: As far as Lewis's concern about bringing harmony between the advertising and advertising division is worried, this would originally lead to contrast as talked about by Bruce Tuckman in his 'Synergy Concept'. By combining the marketing and also advertising and marketing department's work, there may be the very same first separate which can lead to the second phase of 'storming' where the groups test one another.

When individuals are provided with change, they enter stage one as well as so there may be feelings like despair, unpredictability, disappointment, rage, fear, denial as well as disorientation.The scenario at the marketing department of Hong Kong Dragon Airlines Limited A Determining The Cost Of Capital is similar so Lewis can get comfortable with the suggestion that it is not remarkable behavior. It is throughout this stage that Lewis will certainly have to provide assistance to the division so that they can locate a sense of direction. It can be seen just how Krasnow has actually already made this change simpler by making Lewis get involved in the department a year prior to his real departure.
Vrio Analysis
Maslow's Need hierarchy: The OB problem related to instability at the office has been set off firstly by the change in monitoring and also secondly by the truth that the merger will certainly no longer be initiated. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has goes over the value of 'safety requires as being a lower degree need of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel secure and unharmed' is at the 2nd degree of demands. Before a staff member can be made to create psychologically, he needs to have his 'Physical 'as well as 'Security' requires fulfilled. This suggests that unless the personnel are made to feel secure about their current employment status in Hong Kong Dragon Airlines Limited A Determining The Cost Of Capital they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Hong Kong Dragon Airlines Limited A Determining The Cost Of Capital Case Study



Ramification of Analysis.

The OB analysis has looked at different concepts to understand how to manage the current scenario handy. The following 3 options have been proposed to assist Lewis handle the organizational difficulties in the advertising and marketing department. Each of these options has been suggested for easing the transition needed to bring the advertising and marketing department in accordance with the demands of the marketplace and also for making the social change that would adhere to once the current leader leaves.

Combination of advertising and marketing features. Separating Adverting and also Production functions. Integration of Advertising with Workflow.

Assessment of Alternatives.

Integration of Advertising And Marketing & Marketing Functions: The internal advertising and marketing agency of Hong Kong Dragon Airlines Limited A Determining The Cost Of Capital is currently stamina for the company in regards to conserving up on expenses associated with advertising and promotion. Considering that no new employment has actually been done after Bridget Cole's departure with the coverage line being straight assigned to Krasnow for the advertising feature, this is a positive opportunity for integrating the marketing and advertising features. Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merging days has proficiency in business-to-business marketing together with company and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to deal with both marketing and advertising features.

The benefit of this technique is that it will certainly incorporate the two features while minimizing the need for employing an added source for advertising and marketing. In addition to this, Lewis would certainly be heading the marketing department as well as regardless her substitute would be needed for the existing duty that she is executing. The drawback of this alternative is that external hiring might cause bitterness from inner employees that may be eying the placement of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and also Manufacturing: Offered the affordable pressures and also high quality work needed from the marketing agency, it is advised that Lewis needs to permit the manufacturing unit to be a different feature from the marketing unit. Since the majority of advertising and marketing agencies had these two functions as separate systems, it makes more sense to adhere to the standard.

Combination of Advertising And Marketing with Procedures: Given that Lewis is already taking care of the marketing and operations divisions simultaneously; it makes feeling to integrate the 2 features because she has been successfully taking treatment of both ends. The reality that Lewis has to adjust her monitoring style for the advertising department suggests that these 2 divisions would certainly be culturally diverse.

Suggestion.



An analysis of the 3 choices suggests that assimilation of advertising and marketing and procedures would not be a feasible action due to the substantial 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 favorable move for the marketing department, the reality that it would certainly indicate putting a 3rd feature under Lewis's wing indicates this ought to be prevented too. The assimilation of the advertising and marketing division is the very best option in terms of getting the ideal results from the department. An action plan for this choice is reviewed listed below.

Action Strategy.
Recommendation
Lewis will certainly take control of the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Manufacturing feature will continue to be part of marketing under marketing function.

Lewis will separate herself from operations.

A democratic management design with worker empowerment will certainly be made use of in advertising and marketing department.

Open door plan and also emphasis on cross departmental interaction will be aimed at getting rid of dissonance.

Backup plan.

If the assimilation does not work out as intended, a contingency plan would adhere to which would divide the manufacturing feature from the marketing feature to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the marketing division without an SVP. In that case the manufacturing feature will definitely be separated by positioning it under an SVP manufacturing.