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Islamic Banking Lessons For The Financial Sector Case Study Help

CASE SOLUTION

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Islamic Banking Lessons For The Financial Sector Case Study Solution

Background and Facts

Islamic Banking Lessons For The Financial Sector an office materials retailer for little as well as average sized services has actually lately been involved in preparing for a merging with its competitor House Deport, which has actually impacted performance degrees in departmentswith the senior supervisor associated with legal complications put forth by the federal Trade Payment. With the Advertising Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the role in the future. With obstacles in the form of a prospective social change and low employee morale, the company is in need of a full reengineering initiative at the marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising and marketing department of Islamic Banking Lessons For The Financial Sector is enhancing uncertainty in the workplace bring about numerous challenges 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 major function in influencing critical choices given that Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Profession Commission's intervention while doing so. Offered the reality that the shop has a global presence with branches in UK, USA, Canada and also Germany, political factors in each of these nations may have the ability to influence efficiency or calculated objectives. Federal Trade Compensation's antitrust match versus the merging occupied useful time of the organization's senior administration suggesting that 'political' factors can have severe ramifications for a worldwide service.

Economic Factors: Economic factors such as the emergence of local business in the worldwide circumstance recommend that Islamic Banking Lessons For The Financial Sector is thriving in a setting where there is prospective growth of businesses. Reality that store clients are mostly looking for office supplies for home offices recommends that the market has an increasing trend of business owners as well as house based businesses.

Social factors: Social trends in the economic climate reveal that consumers are seeking benefit along with appealing rates. Marketing research shows how the consumer for Islamic Banking Lessons For The Financial Sector lacks understanding concerning discovering services which can use a mix of comfort as well as low costs.

Technical factors: Innovation plays a vital role in Islamic Banking Lessons For The Financial Sector's company technique especially as the company is piloting Modern technology facilities which would certainly use technology sales and also assistance in the form of memory upgrades, outer installments. (Summary of PEST in appendix 2).

OB Issues and Manifestations.

Several underlying Organizational Behavior issues can be seen in Islamic Banking Lessons For The Financial Sector's case as highlighted in this section.

Concerns about cultural adjustment: There is apprehension concerning a social adjustment that would certainly occur as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Marketing with the majority of the staff members already showing unhappiness over this possible action. This anticipated modification has actually created tension in the workplace which has been paired with the previous anxiety of preparing the company for a possible merger with House Deport.
Pest Analysis
Stressful Work Environment for Newcomers: There is shortage of employees that can match the demanding setting of a busy company. Not only does this cause problem in locating the appropriate people, it puts tension on new hires as can not hold up against the pace and also stress that the organization anticipates them to birth.

Dual Reporting Lines: Beginners discover this business society difficult and also challenging to cope with specifically as dotted line relationships are implied to be weak as a whole and also unbiased setup and performance analysis is still done by the solid line supervisor. This indicates that newcomers can shed clearness concerning their particular roles as well as purposes especially as dotted line coverage does not keep them in direct communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles despite the fact that it had actually been speculated that the last would take Krasnow's position came as an impact to her spirits. Lewis might have been qualified as well as proper for the task but the truth that Kransnow's separation would make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Work Instability: Worry as well as instability can be determined as two significant worries that Lewis would certainly be managing particularly as the merger has actually currently be terminated and also 2 senior execs of the advertising department would be leaving. The whole responsibility of the department would be falling on Lewis's shoulders who would certainly not simply be in charge of brining about a cultural adjustment but would certainly likewise have to show herself in her brand-new function.

Incompatible Management Design of Leader: Lewis's monitoring style as well as its conflict with the advertising department's role can also be seen as an OB obstacle especially as she has been used to managing problems in the procedures department where personnel are shown to focus on procedures as well as obtain them. The marketing division on the various other hand can be seen as a group of individuals who are used to being nurtured by Krasnow who concentrated much more on result than procedures.

Interdepartmental Disagreements: Interdepartmental differences between 3 divisions, advertising, merchandizing and operations specifically over the allowance of the advertising and marketing mix can be identified as another OB concern. Although the advertising and marketing division does not share the very same vision as the other two divisions concerning the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and procedures divisions do not concur over the marketing mix appropriation amongst each other either.

Fragmentation in Advertising Division: Disintegration between the marketing and advertising departments can be determined as an additional OB problem which can need more attention. The fact that the advertising and marketing sections in the advertising and marketing department are separated is protecting against both divisions from getting from each various other's experience as well as knowledge. Integration of advertising with retailing and also procedures would certainly become more difficult if the advertising department itself is degenerated which can be an additional potential OB problem.

Islamic Banking Lessons For The Financial Sector Analysis

Different theories have been made use of to describe the conditions to get further clarity about the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors believe that staffs are easy as well as lazy, have little ambition and resist adjustment. The tough variation of this theory emphasized coercion, tight controls, threats and punishments. In time it produces reduced productivity, refined sabotage and rivalry (Offer, 2003). The circumstance at Islamic Banking Lessons For The Financial Sector is not totally following Concept X, it can be seen that brand-new hires are locating this setting rather stressful which might eventually lead to a higher disposition of the administration in the direction of Theory X. As per McGregor's supported view, which he called Concept Y, the necessary task of the management is to arrange organizational problems to ensure that individuals can attain their very own goals best by directing their initiatives in the direction of organizational incentives. If individuals find no complete satisfaction in their job, the management would have little selection but to count on concept X and outside control (Offer, 2003). Also while analyzing Lewis's monitoring design, concept X may have been suitable in the procedures department somewhat however the Advertising division would require reliance on Theory Y to get the creative thinking and also originality from the groups.

Tuckman's Team effort Concept: As far as Lewis's problem concerning bringing harmony between the marketing and advertising and marketing division is concerned, this would at first lead to clash as discussed by Bruce Tuckman in his 'Teamwork Concept'. By integrating the marketing as well as marketing division's work, there might be the exact same initial detach which can lead to the second stage of 'storming' where the groups challenge one an additional.

When people are offered with adjustment, they get in stage one and also so there may be feelings like sadness, unpredictability, stress, anger, fear, denial and also disorientation.The situation at the marketing department of Islamic Banking Lessons For The Financial Sector is similar so Lewis can obtain comfy with the idea that it is not amazing behavior. It is during this phase that Lewis will have to offer support to the division so that they can find a sense of direction. It can be seen exactly how Krasnow has actually currently made this transition much easier by making Lewis obtain entailed in the division a year before his real departure.
Vrio Analysis
Maslow's Demand hierarchy: The OB concern pertaining to instability at the office has actually been triggered to start with by the modification in management and also secondly by the reality that the merger will no more be launched. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has discusses the relevance of 'safety requires as being a lower level demand of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel safe and secure and also safe' is at the 2nd degree of requirements. Before a staff member can be made to create mentally, he needs to have his 'Physical 'as well as 'Safety and security' needs fulfilled. This indicates that unless the workers are made to really feel safe and secure regarding their present work standing in Islamic Banking Lessons For The Financial Sector they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Islamic Banking Lessons For The Financial Sector Case Study



Ramification of Analysis.

The OB analysis has actually considered numerous theories to comprehend just how to manage the current situation at hand. The adhering to 3 alternatives have actually been suggested to aid Lewis manage the organizational obstacles in the advertising department. Each of these alternatives has been recommended for reducing the shift needed to bring the advertising and marketing department according to the needs of the market and for making the social adjustment that would certainly comply with as soon as the present leader leaves.

Combination of advertising and marketing features. Dividing Adverting and Production functions. Combination of Marketing with Procedures.

Evaluation of Alternatives.

Integration of Advertising And Marketing & Marketing Functions: The in-house advertising and marketing agency of Islamic Banking Lessons For The Financial Sector is currently stamina for the company in terms of conserving up on expenses associated with advertising and marketing and also promotion. Considering that no new recruitment has been done after Bridget Cole's separation with the coverage line being directly designated to Krasnow for the advertising function, this is a favorable possibility for incorporating the advertising and marketing functions. Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merging days has experience in business-to-business marketing in addition to firm as well as retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing functions.

The advantage of this strategy is that it will certainly incorporate both functions while reducing the need for hiring an additional source for marketing. Along with this, Lewis would be heading the advertising division as well as regardless her replacement would be needed for the current duty that she is executing. The negative aspect of this choice is that exterior hiring might cause resentment from interior workers who might be looking at the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting as well as Production: Given the affordable pressures as well as high top quality job needed from the advertising and marketing agency, it is advised that Lewis must permit the manufacturing device to be a different function from the marketing unit. Given that the majority of marketing companies had these two features as separate systems, it makes more feeling to follow the standard.

Integration of Advertising with Procedures: Because Lewis is already taking treatment of the advertising and marketing and operations divisions concurrently; it makes feeling to incorporate the two functions considering that she has been effectively taking care of both ends. The reality that Lewis has to adapt her management design for the advertising department suggests that these 2 departments would certainly be culturally varied.

Referral.



An analysis of the 3 alternatives indicates that combination of advertising and marketing and also operations would certainly not be a feasible step due to the huge distinctions in between the 2 divisions despite the fact that currently Lewis is dealing with both. While splitting up of the production feature might have been a desirable action for the advertising and marketing division, the fact that it would certainly suggest placing a third function under Lewis's wing means this must be prevented.

Activity Plan.
Recommendation
Lewis will certainly take control of the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

Production function will remain part of marketing under advertising and marketing function.

Lewis will separate herself from operations.

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

Open door plan and also focus on cross departmental communication will be focused on removing disharmony.

Backup strategy.

If the combination does not work out as planned, a contingency strategy would adhere to which would divide the manufacturing feature from the marketing feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising division without an SVP. In that case the manufacturing function will absolutely be separated by putting it under an SVP production.