Menu

Johansens The New Scorecard System Corporate Finance Manager Handout 3 Case Study Help

CASE SOLUTION

Home >> Harvard >> Johansens The New Scorecard System Corporate Finance Manager Handout 3 >>

Johansens The New Scorecard System Corporate Finance Manager Handout 3 Case Study Solution

Background and Facts

Johansens The New Scorecard System Corporate Finance Manager Handout 3 an office materials merchant for small as well as medium sized businesses has actually recently been involved in preparing for a merger with its rival Home Deport, which has influenced efficiency levels in departmentswith the elderly manager involved in legal difficulties put forth by the government Trade Compensation. With the Advertising Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the duty in the near future. With obstacles in the type of a prospective cultural change and also reduced staff member morale, the company requires a total reengineering effort at the advertising division.

Issue Statement
Porter's 5 Forces Analysis
The potential cultural change at the advertising department of Johansens The New Scorecard System Corporate Finance Manager Handout 3 is increasing unpredictability in the workplace bring about numerous difficulties for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing strategic decisions because Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Profession Payment's treatment while doing so. Given the truth that the store has a worldwide presence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations might be able to affect efficiency or strategic goals. Federal Trade Payment's antitrust fit versus the merger used up beneficial time of the organization's senior management recommending that 'political' factors can have severe effects for a global business.

Economic Factors: Economic factors such as the emergence of local business in the worldwide scenario suggest that Johansens The New Scorecard System Corporate Finance Manager Handout 3 is thriving in a setting where there is prospective development of businesses. Truth that store customers are mainly looking for workplace products for residence workplaces suggests that the market has a climbing fad of business owners and home based services.

Social factors: Social trends in the economic situation reveal that clients are searching for benefit as well as appealing prices. Marketing research shows how the client for Johansens The New Scorecard System Corporate Finance Manager Handout 3 lacks awareness about finding services which can use a combination of convenience and inexpensive.

Technical factors: Modern technology plays a crucial function in Johansens The New Scorecard System Corporate Finance Manager Handout 3's service technique specifically as the organization is piloting Modern technology centers which would certainly offer technology sales and also support in the form of memory upgrades, peripheral installments. (Summary of PEST in appendix 2).

OB Issues as well as Symptoms.

Numerous underlying Organizational Actions problems can be seen in Johansens The New Scorecard System Corporate Finance Manager Handout 3's case as highlighted in this section.

Worries concerning cultural modification: There is apprehension concerning a social adjustment that would certainly happen when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising with the majority of the staff members currently showing discontent over this possible move. This predicted adjustment has actually created tension in the workplace which has actually been combined with the past stress of preparing the company for a potential merger with Home Deport.
Pest Analysis
Stressful Job Atmosphere for Newcomers: There is scarcity of personnel that can match the difficult atmosphere of a hectic organization. Not only does this bring about trouble in discovering the appropriate people, it places tension on brand-new hires as can not stand up to the speed and pressure that the company expects them to birth.

Twin Coverage Lines: Newcomers find this business society difficult and hard to deal with especially as dotted line partnerships are meant to be weak as a whole and also unbiased setup as well as efficiency evaluation is still done by the strong line supervisor. This suggests that novices can lose quality concerning their respective duties as well as goals specifically as dotted line coverage does not maintain them in straight communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles despite the fact that it had been guessed that the latter would take Krasnow's position came as a strike to her spirits. Lewis may have been capable and also appropriate for the job however the truth that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Work Insecurity: Anxiety as well as instability can be recognized as two major issues that Lewis would certainly be dealing with specifically as the merger has actually currently be terminated as well as 2 senior executives of the marketing department would be leaving. The entire duty of the division would certainly be falling on Lewis's shoulders who would certainly not just supervise of brining about a social adjustment but would additionally need to confirm herself in her brand-new role.

Inappropriate Monitoring Style of Leader: Lewis's monitoring design as well as its conflict with the advertising division's role can additionally be seen as an OB difficulty especially as she has been made use of to handling issues in the operations division where employees are instructed to concentrate on processes and obtain them. The advertising division on the other hand can be viewed as a group of people who are made use of to being nurtured by Krasnow who focused a lot more on output than processes.

Interdepartmental Arguments: Interdepartmental differences in between three departments, marketing, merchandizing as well as operations specifically over the allotment of the advertising mix can be identified as one more OB concern. The marketing division does not share the very same vision as the various other two divisions concerning the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and also operations departments do not concur over the advertising and marketing mix allotment amongst one another either.

Disintegration in Marketing Department: Fragmentation in between the advertising and marketing divisions can be recognized as another OB problem which could require additional attention. The reality that the marketing and advertising areas in the marketing division are disconnected is preventing both departments from obtaining from each other's experience and also proficiency. Assimilation of marketing with retailing and also procedures would become harder if the advertising and marketing division itself is broken down which can be one more potential OB worry.

Johansens The New Scorecard System Corporate Finance Manager Handout 3 Analysis

Different theories have been used to describe the circumstances to obtain further clearness regarding the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers believe that subordinates are easy and careless, have little passion as well as resist modification. The scenario at Johansens The New Scorecard System Corporate Finance Manager Handout 3 is not completely adhering to Theory X, it can be seen that brand-new hires are finding this environment instead demanding which may ultimately lead to a higher disposition of the administration towards Theory X. Also while assessing Lewis's management style, concept X may have been ideal in the operations department to some extent yet the Marketing division would require reliance on Theory Y in order to obtain the creative thinking and originality from the groups.

Tuckman's Synergy Concept: As much as Lewis's worry regarding bringing harmony between the advertising and advertising division is worried, this would originally lead to contrast as discussed by Bruce Tuckman in his 'Team effort Theory'. By incorporating the advertising and marketing and advertising and marketing department's work, there may be the very same first disconnect which could lead to the 2nd stage of 'storming' where the teams challenge one an additional.

Bridges' Change Version: According To William Bridge's theory (appendix 4), individuals are quite uncomfortable with change, which is evident by the situation at Johansens The New Scorecard System Corporate Finance Manager Handout 3 The circumstance can be seen as a typical training course of life if is researched according to Bridge's theory where he discusses that individuals undergo 3 phases of change when they experience change. 'Closing, shedding and Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people exist with adjustment, they get in stage one therefore there may be feelings like sadness, uncertainty, stress, anger, worry, rejection and disorientation.The circumstance at the advertising and marketing department of Johansens The New Scorecard System Corporate Finance Manager Handout 3 is similar so Lewis can get comfy with the idea that it is not amazing actions. In the second phase, there may be a need to link the space in between the brand-new and old society so Lewis may need to encounter this ordeal when Krasnow leaves. There might be reduced spirits as well as reduced efficiency at this stage which need to not be taken as an obstacle. It is during this stage that Lewis will certainly need to give guidance to the division to ensure that they can find a sense of direction. It can be seen how Krasnow has actually currently made this shift less complicated by making Lewis obtain associated with the division a year before his real departure. According to Bridges' Version, phase 3 will produce visibility to discovering, High energy as well as commitment as individuals will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has discusses the relevance of 'security needs as being a reduced level requirement of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel secure as well as out of risk' is at the second degree of needs. Prior to an employee can be made to create psychologically, he needs to have his 'Physiological 'and 'Safety' needs satisfied.

SWOT Analysis for Johansens The New Scorecard System Corporate Finance Manager Handout 3 Case Study



Implication of Analysis.

The OB analysis has actually looked at various theories to comprehend just how to manage the current situation at hand. The adhering to 3 choices have actually been suggested to help Lewis handle the organizational difficulties in the advertising and marketing department. Each of these alternatives has been suggested for alleviating the shift needed to bring the marketing department according to the requirements of the market and also for making the cultural adjustment that would certainly comply with as soon as the existing leader leaves.

Combination of marketing and advertising features. Dividing Adverting and Manufacturing features. Assimilation of Advertising And Marketing with Workflow.

Analysis of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merging days has knowledge in business-to-business marketing along with firm as well as retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to handle both advertising and marketing and also marketing functions.

The benefit of this technique is that it will incorporate both features while lowering the need for hiring an extra resource for marketing. Along with this, Lewis would be heading the advertising department as well as regardless her substitute would certainly be required for the existing function that she is doing. The disadvantage of this option is that external hiring might produce resentment from inner workers who might be eying the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Manufacturing: Given the affordable stress and premium quality job required from the advertising agency, it is recommended that Lewis ought to allow the production unit to be a separate function from the advertising and marketing unit. Considering that the majority of advertising agencies had these two functions as separate devices, it makes more sense to adhere to the standard. Both functions may be able to focus on their core triggers a lot more successfully. The negative aspect of this technique would certainly be that additional expenses would have to be borne for setting up different manufacturing features. A manufacturing head might have to be worked with which can increase expenses for the company.

Assimilation of Marketing with Procedures: Given that Lewis is already taking care of the advertising as well as procedures departments simultaneously; it makes sense to incorporate the 2 functions considering that she has been effectively taking treatment of both ends. The reality that Lewis has to adapt her management design for the marketing department suggests that these two departments would certainly be culturally diverse.

Suggestion.



An examination of the three options indicates that integration of marketing and also procedures would not be a possible step as a result of the huge differences between both divisions despite the fact that currently Lewis is taking care of both. While splitting up of the manufacturing function might have been a favorable action for the advertising and marketing division, the truth that it would certainly imply putting a 3rd feature under Lewis's wing means this should be prevented too. The assimilation of the advertising and marketing department is the best choice in regards to getting the optimum arise from the department. An activity plan for this option is discussed below.

Activity Strategy.
Recommendation
Lewis will certainly take over the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

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

Lewis will certainly separate herself from procedures.

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

Open door policy as well as focus on cross departmental interaction will be focused on removing dissonance.

Contingency strategy.

If the assimilation does not work out as intended, a contingency strategy would certainly follow which would certainly separate the manufacturing feature from the advertising function to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising and marketing division without an SVP. Because case the manufacturing function will absolutely be divided by positioning it under an SVP production.