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Janet Yellen And The Bernanke Fed Case Study Analysis

CASE SOLUTION

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Janet Yellen And The Bernanke Fed Case Study Solution

Background and Facts

Janet Yellen And The Bernanke Fed an office products retailer for little and moderate sized businesses has recently been associated with preparing for a merger with its competitor Residence Deport, which has actually impacted performance levels in departmentswith the elderly supervisor associated with legal complications put forth by the government Trade Compensation. With the Marketing Head advancing the information of his departure from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the near future. With obstacles in the type of a prospective cultural change and also low employee spirits, the company is in need of a complete reengineering effort at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising and marketing division of Janet Yellen And The Bernanke Fed is increasing unpredictability in the working environment causing numerous obstacles 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 significant duty in influencing calculated choices since Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Profession Compensation's intervention at the same time. Given the reality that the shop has an international visibility with branches in UK, U.S.A., Canada and Germany, political consider each of these countries may have the ability to affect efficiency or tactical goals. Federal Profession Compensation's antitrust match against the merger took up important time of the company's senior administration recommending that 'political' factors can have serious implications for a worldwide service.

Economic Factors: Financial factors such as the appearance of small companies in the international circumstance suggest that Janet Yellen And The Bernanke Fed is thriving in an atmosphere where there is possible growth of businesses. Fact that shop clients are mainly looking for office supplies for residence workplaces suggests that the market has an increasing fad of business owners and residence based companies.

Social factors: Social trends in the economic situation show that clients are trying to find convenience as well as appealing rates. Marketing research demonstrates how the customer for Janet Yellen And The Bernanke Fed does not have understanding about locating solutions which can provide a combination of benefit and also low costs.

Technological factors: Technology plays an essential role in Janet Yellen And The Bernanke Fed's business strategy particularly as the company is piloting Innovation facilities which would certainly use modern technology sales and assistance in the form of memory upgrades, peripheral setups. (Summary of PEST in appendix 2).

OB Issues as well as Effects.

Numerous underlying Business Behavior concerns can be seen in Janet Yellen And The Bernanke Fed's case as highlighted in this area.

Worries concerning social change: There is concern regarding a social change that would happen once Todd Krasnow leaves from his placement as the Exec Vice President of Advertising with the majority of the personnel currently showing unhappiness over this possible move. This predicted modification has actually developed stress in the workplace which has been paired with the previous stress of preparing the company for a prospective merger with Home Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is shortage of employees that can match the demanding environment of a hectic company. Not just does this lead to difficulty in locating the ideal individuals, it places tension on new hires as can not stand up to the rate as well as pressure that the organization expects them to birth.

Double Coverage Lines: Newcomers locate this business society cumbersome and also tough to manage particularly as populated line connections are suggested to be weak as a whole and objective setting and also performance evaluation is still done by the solid line supervisor. This suggests that newcomers could shed quality concerning their particular roles and objectives particularly as populated line reporting does not keep them in direct interaction with the strong line managers.

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 latter would take Krasnow's position came as an impact to her morale. Lewis may have been qualified as well as suitable for the task however the fact that Kransnow's departure would make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.

Worry & Job Insecurity: Anxiety and also instability can be identified as 2 major issues that Lewis would be handling especially as the merging has currently be cancelled as well as 2 senior executives of the advertising and marketing division would be leaving. The entire obligation of the division would be falling on Lewis's shoulders who would not simply be in charge of brining about a social adjustment however would additionally have to verify herself in her brand-new duty.

Inappropriate Administration Design of Leader: Lewis's management style and its conflict with the advertising division's role can also be seen as an OB obstacle especially as she has actually been made use of to managing concerns in the procedures division where personnel are shown to concentrate on processes and get them right. The advertising and marketing division on the various other hand can be viewed as a team of people that are utilized to being supported by Krasnow that focused extra on output than procedures.

Interdepartmental Differences: Interdepartmental differences between three divisions, advertising and marketing, merchandizing and also procedures respectively over the allowance of the advertising mix can be recognized as another OB concern. The advertising division does not share the exact same vision as the other two divisions concerning the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and also operations divisions do not concur over the advertising mix allocation among one another either.

Fragmentation in Marketing Division: Disintegration between the marketing and advertising divisions can be identified as an additional OB problem which can need further attention. The fact that the advertising and marketing areas in the advertising and marketing department are disconnected is avoiding both departments from obtaining from each other's experience and also proficiency. Integration of advertising and marketing with merchandising and operations would certainly end up being more difficult if the advertising department itself is broken down which can be one more potential OB problem.

Janet Yellen And The Bernanke Fed Analysis

Various theories have actually been made use of to explain the situations to obtain further clarity concerning the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers believe that staffs are easy and also lazy, have little ambition as well as resist change. The situation at Janet Yellen And The Bernanke Fed is not completely following Concept X, it can be seen that new hires are discovering this setting rather stressful which might eventually lead to a greater inclination of the monitoring in the direction of Concept X. Also while assessing Lewis's management style, concept X may have been suitable in the operations division to some extent but the Advertising department would require reliance on Theory Y in order to get the creative thinking and originality from the groups.

Tuckman's Team effort Theory: As for Lewis's problem concerning bringing harmony in between the marketing and advertising department is concerned, this would at first cause contrast as gone over by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, throughout the first phase of group growth, people may not bond, as they are active discovering their location in the group. By combining the advertising and marketing department's work, there may be the same preliminary separate which might cause the 2nd stage of 'storming' where the groups test each other. It is only during the third stage or 'norming' when they would certainly come with each other to share suggestions before the team can bring about synergy in the 4th phase 'executing'.

When people are provided with change, they get in phase one and also so there may be emotions like unhappiness, unpredictability, irritation, rage, concern, denial and disorientation.The scenario at the advertising and marketing division of Janet Yellen And The Bernanke Fed is comparable so Lewis can obtain comfortable with the suggestion that it is not extraordinary actions. It is during this phase that Lewis will have to offer assistance to the division so that they can discover a sense of instructions. It can be seen exactly how Krasnow has currently made this shift less complicated by making Lewis get included in the division a year prior to his real departure.
Vrio Analysis
Maslow's Need power structure: The OB concern related to insecurity at the workplace has been set off to start with by the change in management as well as secondly by the fact that the merging will no more be launched. Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has talks about the value of 'safety requires as being a reduced level demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel secure and untouched' goes to the second degree of needs. Prior to an employee can be made to develop psychologically, he requires to have his 'Physical 'and also 'Safety and security' requires met. This shows that unless the personnel are made to feel safe and secure regarding their present employment status in Janet Yellen And The Bernanke Fed they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Janet Yellen And The Bernanke Fed Case Study



Implication of Analysis.

The OB analysis has looked at various concepts to understand exactly how to handle the current circumstance handy. The complying with 3 alternatives have actually been proposed to assist Lewis manage the business obstacles in the advertising and marketing department. Each of these alternatives has actually been proposed for relieving the transition required to bring the advertising and marketing division in line with the requirements of the marketplace and also for making the social modification that would certainly adhere to when the current leader leaves.

Assimilation of advertising and marketing functions. Dividing Adverting and also Production functions. Combination of Marketing with Workflow.

Examination of Alternatives.

Combination of Advertising And Marketing & Advertising And Marketing Functions: The in-house marketing firm of Janet Yellen And The Bernanke Fed is currently strength for the organization in terms of conserving up on expenses connected to advertising as well as promo. Since no new recruitment has actually been done after Bridget Cole's separation with the coverage line being directly assigned to Krasnow for the marketing function, this is a desirable opportunity for incorporating the advertising and marketing features. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merger days has expertise in business-to-business advertising together with firm and retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both marketing and advertising features.

The advantage of this approach is that it will certainly incorporate both functions while minimizing the need for hiring an extra source for advertising. Lewis would be heading the advertising division and in any case her substitute would certainly be needed for the existing duty that she is performing. The negative aspect of this alternative is that exterior hiring may cause resentment from interior personnel that may be looking at the placement of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and also Production: Provided the competitive pressures and also high quality job required from the advertising and marketing agency, it is recommended that Lewis must allow the production unit to be a separate feature from the advertising and marketing device. Since most marketing firms had these two features as different systems, it makes even more feeling to follow the norm.

Assimilation of Advertising And Marketing with Workflows: Given that Lewis is currently dealing with the marketing and also procedures divisions all at once; it makes good sense to incorporate both functions since she has been efficiently looking after both ends. The fact that the two divisions already have significant distinctions over allowance of resources suggests that this assimilation might have the ability to cause harmony particularly as Lewis would be heading both ends.However there are numerous disadvantages of this action particularly as it would certainly put way too much worry over Lewis's shoulders. The fact that Lewis needs to adapt her administration style for the advertising and marketing department suggests that these 2 divisions would certainly be culturally varied. Lewis might not be able to use one type of management style to both divisions which might result in ineffectiveness in either one of the two features.

Referral.



An examination of the three alternatives shows that combination of advertising and marketing and operations would certainly not be a practical action as a result of the huge differences in between both departments although that presently Lewis is dealing with both. While separation of the manufacturing function might have been a desirable move for the advertising division, the truth that it would imply positioning a third feature under Lewis's wing suggests this should be avoided. The combination of the marketing division is the very best option in terms of getting the optimal arise from the division. An action plan for this alternative is talked about below.

Action Plan.
Recommendation
Lewis will certainly take over the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Manufacturing feature will continue to be component of advertising and marketing under advertising and marketing feature.

Lewis will certainly divide herself from operations.

A democratic management design with staff member empowerment will certainly be used in advertising and marketing department.

Open up door policy as well as focus on cross departmental communication will be aimed at eliminating dissonance.

Backup plan.

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