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Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Case Study Analysis

Background and Facts

Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision a workplace products seller for tiny and also medium sized organisations has lately been involved in planning for a merging with its rival Residence Deport, which has affected performance degrees in departmentswith the senior manager associated with legal complications put forth by the federal Trade Compensation. With the Marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the future. With difficulties in the kind of a possible social adjustment and also low staff member spirits, the company needs a total reengineering initiative at the marketing department.

Issue Statement
Porter's 5 Forces Analysis
The potential social adjustment at the marketing department of Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision is enhancing uncertainty in the working environment causing numerous difficulties for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing tactical choices given that Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Trade Payment's treatment in the process. Given the reality that the store has a global presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations may have the ability to impact efficiency or calculated goals. Federal Profession Compensation's antitrust match against the merging used up useful time of the company's senior monitoring suggesting that 'political' factors can have significant ramifications for an international service.

Economic Factors: Financial factors such as the introduction of small companies in the global scenario recommend that Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision is thriving in an environment where there is potential development of services. Fact that shop clients are mostly looking for office products for residence offices suggests that the market has a climbing pattern of entrepreneurs as well as residence based services.

Social factors: Social trends in the economic situation show that consumers are looking for benefit along with eye-catching costs. Market research shows how the consumer for Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision lacks recognition regarding finding options which can use a combination of ease as well as affordable.

Technical factors: Technology plays a crucial role in Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision's organisation technique particularly as the organization is piloting Technology facilities which would certainly supply innovation sales and support in the form of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues and Effects.

A number of underlying Organizational Behavior issues can be seen in Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision's case as highlighted in this section.

Worries concerning social adjustment: There is uneasiness regarding a social change that would take place when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with most of the staff members currently showing unhappiness over this possible relocation. This expected adjustment has actually developed anxiety in the office which has actually been paired with the past stress of preparing the company for a potential merging with Home Deport.
Pest Analysis
Demanding Work Atmosphere for Newcomers: There is scarcity of employees that can match the stressful setting of a busy organization. Not just does this bring about trouble in discovering the right people, it puts tension on new hires as can not stand up to the speed and pressure that the organization anticipates them to birth.

Double Reporting Lines: Newcomers discover this organizational culture difficult as well as challenging to handle specifically as populated line connections are meant to be weaker in general and also unbiased setting and efficiency examination is still done by the solid line manager. This indicates that beginners can shed clearness concerning their corresponding duties and also goals particularly as populated line coverage does not maintain them in straight interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had been hypothesized that the latter would certainly take Krasnow's placement came as an impact to her morale. Lewis might have been qualified as well as ideal for the job yet the reality that Kransnow's separation would make Coles a straight report to Lewis may have been the reason for Coles' resignation from services.

Fear & Work Instability: Fear and instability can be recognized as two major worries that Lewis would be handling especially as the merger has currently be terminated as well as two elderly executives of the advertising and marketing division would certainly be leaving. The whole responsibility of the department would certainly be dropping on Lewis's shoulders who would certainly not just be in charge of brining regarding a social change yet would certainly likewise need to show herself in her new role.

Inappropriate Monitoring Style of Leader: Lewis's management style and its conflict with the marketing division's duty can also be viewed as an OB obstacle particularly as she has actually been utilized to managing problems in the operations division where employees are educated to focus on procedures and obtain them right. The marketing department on the other hand can be viewed as a team of people who are utilized to being nurtured by Krasnow who focused much more on output than processes.

Interdepartmental Disputes: Interdepartmental disputes between 3 departments, advertising, merchandizing and operations specifically over the allotment of the advertising and marketing mix can be recognized as another OB problem. The advertising and marketing department does not share the exact same vision as the various other 2 divisions relating to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing as well as procedures departments do not agree over the advertising and marketing mix allocation amongst one an additional either.

Fragmentation in Marketing Division: Fragmentation between the marketing and advertising departments can be identified as an additional OB problem which might require more interest. The reality that the marketing and advertising sections in the advertising and marketing division are detached is avoiding both departments from acquiring from each various other's experience and also expertise. Integration of advertising with merchandising as well as operations would certainly come to be harder if the marketing department itself is degenerated which can be another possible OB concern.

Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Analysis

Different concepts have been used to describe the scenarios to obtain further clarity about the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that staffs are passive as well as lazy, have little ambition and also stand up to change. The hard variation of this theory emphasized threat, tight controls, threats and penalties. Gradually it produces low productivity, subtle sabotage as well as competition (Offer, 2003). Although the scenario at Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision is not entirely adhering to Concept X, it can be seen that brand-new hires are finding this environment instead difficult which might ultimately cause a better disposition of the monitoring towards Theory X. Based on McGregor's supported view, which he called Concept Y, the crucial task of the administration is to prepare business conditions so that people can achieve their own objectives best by guiding their efforts towards business benefits. If people discover no fulfillment in their job, the monitoring would have little selection yet to rely upon theory X as well as outside control (Deal, 2003). Even while analyzing Lewis's administration style, theory X may have been suitable in the procedures department to some extent but the Marketing department would need dependence on Concept Y so as to get the imagination and also originality from the teams.

Tuckman's Team effort Theory: As much as Lewis's concern regarding bringing consistency between the advertising as well as advertising and marketing division is worried, this would initially lead to conflict as talked about by Bruce Tuckman in his 'Team effort Theory'. By integrating the marketing and marketing division's job, there may be the same preliminary detach which might lead to the 2nd phase of 'storming' where the teams test one another.

Bridges' Transition Version: Based On William Bridge's concept (appendix 4), individuals are quite uncomfortable with modification, which is obvious by the scenario at Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision The situation can be seen as a regular program of life if is researched as per Bridge's theory where he discusses that people undergo three phases of shift when they experience adjustment. 'Closing, shedding and also Letting go', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When people are presented with modification, they go into phase one therefore there may be feelings like unhappiness, unpredictability, aggravation, rage, fear, rejection and also disorientation.The scenario at the marketing division of Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision is comparable so Lewis can get comfy with the suggestion that it is not extraordinary habits. In the second stage, there may be a demand to link the gap in between the new and also old society so Lewis might need to face this experience as soon as Krasnow leaves. There might be low morale and also low efficiency at this phase which need to not be taken as an obstacle. It is during this phase that Lewis will have to provide support to the department so that they can locate an orientation. It can be seen how Krasnow has actually currently made this transition less complicated by making Lewis get involved in the department a year prior to his real separation. Based on Bridges' Version, stage three will certainly cause visibility to learning, High power and dedication as people will certainly embrace the change (Bridges, 2004).
Vrio Analysis
Maslow's Requirement power structure: The OB problem related to instability at the office has been set off firstly by the change in administration and also secondly by the truth that the merging will certainly no longer be started. Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has goes over the significance of 'protection requires as being a reduced degree demand of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel protected and out of danger' goes to the 2nd degree of demands. Prior to a worker can be made to develop psychologically, he needs to have his 'Physiological 'and also 'Safety and security' requires met. This suggests that unless the workers are made to really feel secure about their current employment condition in Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Hong Kong Dragon Airlines Limited B Lease Vs Buy Decision Case Study



Effects of Analysis.

The OB analysis has taken a look at different concepts to comprehend just how to deal with the existing circumstance available. The complying with 3 choices have been suggested to help Lewis manage the business challenges in the marketing division. Each of these choices has actually been recommended for reducing the change required to bring the marketing department according to the needs of the market and also for making the social modification that would certainly follow when the current leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and Manufacturing features. Integration of Advertising with Operations.

Assessment of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merger days has experience in business-to-business marketing along with firm and retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to handle both advertising and marketing and also marketing functions.

The advantage of this approach is that it will certainly integrate the two functions while decreasing the requirement for hiring an added resource for advertising. Along with this, Lewis would certainly be heading the advertising division as well as regardless her substitute would be needed for the existing function that she is performing. The drawback of this option is that outside hiring might cause bitterness from internal personnel who might be looking at the position of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and Production: Offered the affordable pressures and premium quality work called for from the advertising agency, it is advised that Lewis must permit the production system to be a different function from the advertising system. Because most ad agency had these 2 features as separate systems, it makes even more sense to comply with the norm. Both features may be able to focus on their core triggers a lot more successfully. The negative aspect of this technique would certainly be that extra expenses would certainly have to be borne for establishing up different manufacturing functions. A manufacturing head might have to be hired which can raise overheads for the company.

Integration of Marketing with Operations: Considering that Lewis is currently taking care of the marketing as well as operations departments all at once; it makes good sense to integrate both features given that she has actually been effectively looking after both ends. The reality that the two departments currently have major differences over allotment of sources recommends that this combination may be able to cause consistency specifically as Lewis would be heading both ends.However there are various disadvantages of this move particularly as it would put excessive worry over Lewis's shoulders. The truth that Lewis needs to adjust her monitoring style for the marketing department recommends that these two divisions would certainly be culturally diverse. Lewis may not be able to apply one kind of management style to both divisions which could result in ineffectiveness in either one of the two functions.

Recommendation.



An examination of the three alternatives shows that integration of advertising and marketing and operations would not be a practical step due to the huge distinctions in between the 2 departments despite the reality that currently Lewis is managing both. While splitting up of the production feature might have been a beneficial relocation for the marketing division, the truth that it would mean putting a 3rd feature under Lewis's wing implies this should be stayed clear of.

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

Marketing and advertising features would certainly be merged.

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

Production feature will certainly remain component of advertising under marketing function.

Lewis will certainly separate herself from operations.

A democratic leadership style with employee empowerment will be used in advertising department.

Open up door plan and also focus on cross departmental interaction will certainly be aimed at eliminating discord.

Backup plan.

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