Infineon Technologies Time To Cash In Your Chips Case Study Solution


Home >> Harvard >> Infineon Technologies Time To Cash In Your Chips >>

Infineon Technologies Time To Cash In Your Chips Case Study Help

Background and Facts

Infineon Technologies Time To Cash In Your Chips an office products store for small and average sized services has actually lately been associated with planning for a merging with its competitor Home Deport, which has actually influenced efficiency levels in departmentswith the senior supervisor associated with legal problems presented by the government Profession Commission. With the Advertising Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the current head of operations has been asked to take the function in the near future. With difficulties in the kind of a potential cultural adjustment as well as low worker spirits, the company requires a full reengineering initiative at the marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising department of Infineon Technologies Time To Cash In Your Chips is enhancing unpredictability in the working environment resulting in different difficulties 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 influencing tactical choices considering that Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Profession Payment's treatment at the same time. Given the reality that the shop has an international existence with branches in UK, USA, Canada and also Germany, political factors in each of these nations might be able to influence performance or calculated objectives. Federal Trade Compensation's antitrust match against the merging occupied important time of the company's senior management recommending that 'political' factors can have severe effects for a worldwide service.

Economic Factors: Financial factors such as the appearance of local business in the global situation recommend that Infineon Technologies Time To Cash In Your Chips is growing in an atmosphere where there is possible development of businesses. In addition to this, fact that shop customers are primarily trying to find office supplies for home offices recommends that the marketplace has an increasing fad of business owners and home businesses.

Social factors: Social fads in the economic situation show that clients are searching for ease in addition to eye-catching costs. Marketing research shows how the consumer for Infineon Technologies Time To Cash In Your Chips lacks awareness regarding discovering services which can supply a mix of convenience and low costs.

Technological factors: Innovation plays a vital role in Infineon Technologies Time To Cash In Your Chips's company method especially as the company is piloting Technology centers which would offer modern technology sales as well as assistance in the kind of memory upgrades, peripheral installations. (Recap of BUG in appendix 2).

OB Issues and Effects.

Several underlying Organizational Habits issues can be seen in Infineon Technologies Time To Cash In Your Chips's case as highlighted in this section.

Concerns about social modification: There is worry regarding a social change that would certainly occur as soon as Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with most of the employee already showing unhappiness over this potential relocation. This expected adjustment has created stress and anxiety in the workplace which has actually been coupled with the past stress and anxiety of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is lack of personnel that can match the difficult atmosphere of a busy company. Not just does this result in trouble in finding the appropriate people, it places stress on new hires as can not hold up against the speed and pressure that the organization expects them to birth.

Dual Reporting Lines: Newbies discover this business culture troublesome as well as difficult to cope with particularly as dotted line connections are meant to be weaker as a whole as well as unbiased setting as well as efficiency examination is still done by the strong line manager. This means that novices might shed clearness concerning their respective functions and purposes particularly as dotted line coverage does not keep them in direct communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles even though it had actually been speculated that the last would take Krasnow's placement came as an impact to her spirits. Lewis may have been capable and also proper for the job yet the fact that Kransnow's separation would make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Job Instability: Anxiety and insecurity can be determined as 2 major issues that Lewis would certainly be taking care of especially as the merging has actually currently be cancelled as well as two senior executives of the advertising department would be leaving. The entire duty of the department would certainly be falling on Lewis's shoulders who would certainly not just be in charge of brining about a cultural adjustment however would likewise have to verify herself in her new function.

Incompatible Management Design of Leader: Lewis's management design and its conflict with the advertising and marketing division's function can also be seen as an OB difficulty especially as she has been used to taking care of concerns in the operations department where workers are taught to concentrate on procedures and also get them. The advertising and marketing division on the various other hand can be seen as a group of people who are utilized to being supported by Krasnow that focused more on output than procedures.

Interdepartmental Disagreements: Interdepartmental disputes in between three divisions, advertising and marketing, merchandizing and operations respectively over the allotment of the advertising mix can be determined as an additional OB concern. The advertising and marketing division does not share the same vision as the various other 2 departments pertaining to the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and operations divisions do not concur over the advertising mix appropriation among one another either.

Fragmentation in Advertising Division: Fragmentation in between the advertising and marketing departments can be determined as one more OB concern which can need further interest. The reality that the marketing and advertising areas in the advertising and marketing division are disconnected is avoiding both divisions from obtaining from each various other's experience and know-how. Integration of marketing with retailing and procedures would become more difficult if the advertising division itself is disintegrated which can be one more prospective OB problem.

Infineon Technologies Time To Cash In Your Chips Analysis

Numerous concepts have been used to describe the conditions to obtain more clarity about the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that staffs are easy and also careless, have little ambition and withstand modification. The hard version of this theory highlighted coercion, tight controls, risks and punishments. With time it generates reduced productivity, subtle sabotage and also competition (Deal, 2003). Although the circumstance at Infineon Technologies Time To Cash In Your Chips is not entirely complying with Theory X, it can be seen that brand-new hires are locating this setting rather stressful which may eventually cause a higher disposition of the management in the direction of Concept X. As per McGregor's advocated view, which he called Concept Y, the important task of the monitoring is to arrange business conditions to ensure that individuals can achieve their own goals best by directing their efforts towards business incentives. If individuals find no fulfillment in their work, the administration would certainly have little selection yet to depend on theory X and exterior control (Bargain, 2003). Also while examining Lewis's management design, theory X might have appropriated in the procedures department somewhat however the Marketing department would certainly require dependence on Concept Y to get the creativity and also creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's concern concerning bringing consistency between the advertising and marketing department is worried, this would at first lead to conflict as reviewed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, throughout the initial phase of team development, individuals might not bond, as they are active finding their location in the group. By incorporating the advertising and marketing department's work, there may be the same initial disconnect which might result in the 2nd stage of 'storming' where the teams challenge each other. It is just throughout the 3rd phase or 'norming' when they would certainly come with each other to share ideas before the group can bring around synergy in the 4th phase 'doing'.

Bridges' Shift Version: According To William Bridge's theory (appendix 4), people are quite uncomfortable with adjustment, which is apparent by the scenario at Infineon Technologies Time To Cash In Your Chips The situation can be viewed as a normal course of life if is examined based on Bridge's theory where he discusses that people undergo three phases of shift when they experience change. 'Closing, losing as well as Letting go', The Neutral Area and also 'The New Starting' (Bridges, 2004). When individuals exist with change, they enter phase one and so there might be emotions like sadness, unpredictability, aggravation, rage, anxiety, rejection as well as disorientation.The scenario at the advertising division of Infineon Technologies Time To Cash In Your Chips is comparable so Lewis can obtain comfy with the concept that it is not extraordinary behavior. In the second stage, there might be a need to link the space between the brand-new as well as old culture so Lewis might need to face this ordeal as soon as Krasnow leaves. There might be low morale as well as low performance at this phase which need to not be taken as a setback. It is throughout this stage that Lewis will certainly need to provide guidance to the department to ensure that they can find a sense of direction. It can be seen just how Krasnow has already made this transition easier by making Lewis obtain involved in the department a year prior to his actual departure. Based on Bridges' Design, stage three will certainly cause openness to learning, High energy and commitment as people will embrace the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB concern related to insecurity at the workplace has been activated to start with by the modification in management and secondly by the truth that the merger will no longer be initiated. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has reviews the significance of 'protection needs as being a lower level need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel secure and untouched' goes to the second degree of demands. Prior to an employee can be made to establish psychologically, he needs to have his 'Physiological 'and 'Safety and security' needs fulfilled. This indicates that unless the personnel are made to feel safe and secure concerning their present employment status in Infineon Technologies Time To Cash In Your Chips they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Infineon Technologies Time To Cash In Your Chips Case Study

Effects of Analysis.

The OB analysis has actually looked at different concepts to understand how to deal with the current scenario handy. The complying with 3 choices have been recommended to aid Lewis deal with the organizational obstacles in the marketing division. Each of these options has actually been proposed for easing the change needed to bring the advertising and marketing department in line with the requirements of the marketplace and for making the cultural change that would comply with once the present leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting and Manufacturing functions. Combination of Marketing with Operations.

Assessment of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merging days has know-how in business-to-business advertising and marketing along with company and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both marketing as well as advertising functions.

The advantage of this method is that it will integrate the two functions while decreasing the requirement for working with an additional source for advertising and marketing. Lewis would certainly be heading the advertising and marketing division as well as in any type of case her substitute would certainly be needed for the current role that she is executing. The drawback of this choice is that external hiring may produce resentment from interior employees who might be eying the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Production: Offered the affordable stress as well as high top quality job called for from the advertising and marketing company, it is suggested that Lewis should allow the production system to be a separate function from the advertising and marketing system. Given that a lot of advertising agencies had these two functions as different systems, it makes more sense to adhere to the standard.

Integration of Advertising with Workflows: Since Lewis is currently caring for the advertising as well as procedures divisions all at once; it makes good sense to incorporate both functions since she has actually been effectively looking after both ends. The truth that both departments currently have major differences over appropriation of resources recommends that this combination may be able to produce harmony specifically as Lewis would certainly be heading both ends.However there are different negative aspects of this step particularly as it would certainly place excessive concern over Lewis's shoulders. The truth that Lewis has to adapt her monitoring style for the advertising and marketing department recommends that these 2 divisions would certainly be culturally diverse. In addition to this, Lewis might not be able to apply one type of management design to both departments which might cause inefficiency in either one of the two features.


An assessment of the three options indicates that assimilation of advertising and marketing as well as operations would not be a viable relocation due to the vast differences in between the two departments in spite of the fact that presently Lewis is dealing with both. While separation of the manufacturing function might have been a beneficial relocation for the advertising division, the reality that it would certainly imply putting a 3rd feature under Lewis's wing indicates this should be prevented.

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

Marketing and advertising functions would certainly be merged.

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

Manufacturing function will remain part of marketing under marketing feature.

Lewis will separate herself from operations.

An autonomous management style with employee empowerment will be used in advertising division.

Open door plan as well as focus on cross department communication will certainly be aimed at removing discord.

Contingency plan.

If the assimilation does not work out as intended, a backup strategy would certainly comply with which would separate the manufacturing feature from the advertising and marketing function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the marketing department without an SVP. In that case the production function will absolutely be divided by putting it under an SVP production.