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


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

Background and Facts

Johansens The New Scorecard System Corporate Finance Manager Handout 3 a workplace supplies retailer for little and also medium sized organisations has just recently been associated with preparing for a merging with its competitor Home Deport, which has actually influenced performance degrees in departmentswith the senior manager associated with lawful problems put forth by the federal Profession Payment. With the Advertising and marketing Head advancing the information of his separation from the business in one year, Jeannie Lewis, the present head of procedures has been asked to take the function in the future. With challenges in the type of a possible social change and also reduced employee spirits, the company is in need of a total reengineering initiative at the advertising division.

Trouble Statement
Porter's 5 Forces Analysis
The prospective social adjustment at the marketing division of Johansens The New Scorecard System Corporate Finance Manager Handout 3 is boosting uncertainty in the workplace resulting in various challenges for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in influencing strategic decisions given that Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Trade Payment's intervention in the process. Given the reality that the store has a global existence with branches in UK, U.S.A., Canada and Germany, political consider each of these countries might have the ability to impact performance or critical objectives. Federal Profession Commission's antitrust suit versus the merger occupied valuable time of the company's elderly management recommending that 'political' factors can have significant ramifications for a worldwide company.

Economic Factors: Financial factors such as the development of small companies in the global situation suggest that Johansens The New Scorecard System Corporate Finance Manager Handout 3 is flourishing in a setting where there is prospective growth of organisations. Reality that store customers are mainly looking for office products for home offices suggests that the market has a climbing trend of business owners as well as house based organisations.

Social factors: Social patterns in the economic climate show that consumers are seeking benefit as well as eye-catching costs. Market research demonstrates how the customer for Johansens The New Scorecard System Corporate Finance Manager Handout 3 does not have awareness regarding locating options which can supply a mix of convenience and inexpensive.

Technical factors: Technology plays an important role in Johansens The New Scorecard System Corporate Finance Manager Handout 3's organisation approach particularly as the company is piloting Technology facilities which would provide modern technology sales as well as assistance in the type of memory upgrades, peripheral installations. (Summary of PEST in appendix 2).

OB Issues and also Symptoms.

A number of underlying Organizational Behavior concerns can be seen in Johansens The New Scorecard System Corporate Finance Manager Handout 3's case as highlighted in this area.

Apprehensions concerning cultural adjustment: There is uneasiness regarding a cultural change that would certainly occur when Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising And Marketing with the majority of the team member currently revealing unhappiness over this prospective step. This predicted adjustment has created stress in the workplace which has been combined with the past anxiety of preparing the company for a prospective merger with House Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is shortage of personnel that can match the difficult environment of a hectic organization. Not only does this result in difficulty in locating the appropriate individuals, it places stress and anxiety on new hires as can not hold up against the speed and stress that the company expects them to bear.

Double Reporting Lines: Newcomers locate this organizational society troublesome and challenging to cope with particularly as populated line partnerships are indicated to be weak in general as well as objective setup as well as performance examination is still done by the strong line supervisor. This means that novices might lose clarity about their corresponding duties and also objectives specifically as dotted line reporting does not maintain them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles despite the fact that it had been hypothesized that the last would take Krasnow's position came as an impact to her morale. Lewis may have been capable as well as ideal for the task however the reality that Kransnow's separation would make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Job Instability: Fear and instability can be recognized as 2 major issues that Lewis would certainly be taking care of especially as the merging has actually now be cancelled and also two senior executives of the advertising and marketing division would certainly be leaving. The whole obligation of the department would be dropping on Lewis's shoulders who would certainly not just be in charge of brining concerning a social change yet would also need to confirm herself in her brand-new duty.

Inappropriate Monitoring Style of Leader: Lewis's management style and its incompatibility with the advertising division's function can also be seen as an OB challenge specifically as she has actually been made use of to dealing with concerns in the procedures division where employees are instructed to concentrate on processes as well as get them. The advertising department on the other hand can be viewed as a group of individuals that are used to being supported by Krasnow who concentrated much more on result than processes.

Interdepartmental Differences: Interdepartmental disagreements between 3 departments, advertising and marketing, merchandizing as well as operations specifically over the allocation of the advertising mix can be recognized as one more OB issue. The marketing division does not share the same vision as the various other two departments pertaining to the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and procedures divisions do not agree over the marketing mix appropriation amongst one an additional either.

Fragmentation in Marketing Department: Fragmentation between the marketing and advertising departments can be identified as another OB concern which might need further focus. The truth that the marketing and advertising areas in the advertising and marketing department are detached is stopping both departments from gaining from each various other's experience as well as experience. Combination of marketing with merchandising as well as procedures would come to be harder if the marketing division itself is degenerated which can be another prospective OB issue.

Johansens The New Scorecard System Corporate Finance Manager Handout 3 Analysis

Different theories have actually been utilized to describe the scenarios to get additional quality regarding the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many supervisors think that juniors are easy and careless, have little aspiration and also resist adjustment. The situation at Johansens The New Scorecard System Corporate Finance Manager Handout 3 is not completely complying with Theory X, it can be seen that brand-new hires are discovering this environment rather difficult which might ultimately lead to a greater disposition of the management towards Theory X. Even while evaluating Lewis's management design, concept X may have been appropriate in the procedures department to some degree yet the Marketing department would certainly call for dependence on Theory Y in order to get the creative thinking and also originality from the teams.

Tuckman's Synergy Concept: As much as Lewis's issue concerning bringing harmony in between the advertising and marketing and advertising and marketing division is worried, this would initially lead to clash as reviewed by Bruce Tuckman in his 'Teamwork Concept'. By combining the marketing and advertising and marketing division's work, there might be the exact same first disconnect which might lead to the second phase of 'storming' where the teams challenge one another.

Bridges' Transition Version: According To William Bridge's theory (appendix 4), people are quite unpleasant with change, which is obvious by the situation at Johansens The New Scorecard System Corporate Finance Manager Handout 3 The scenario can be seen as a normal course of life if is examined according to Bridge's concept where he discusses that people undergo 3 phases of change when they experience modification. 'Ending, shedding and also Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people exist with modification, they go into stage one therefore there might be emotions like unhappiness, unpredictability, stress, temper, concern, denial and also disorientation.The circumstance at the 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 might be a need to link the gap between the brand-new as well as old society so Lewis might need to face this ordeal as soon as Krasnow leaves. There might be reduced morale and also low productivity at this stage which need to not be taken as a setback. It is during this phase that Lewis will certainly need to give advice to the division to make sure that they can find a sense of direction. It can be seen exactly how Krasnow has actually already made this shift much easier by making Lewis get involved in the department a year prior to his actual separation. Based on Bridges' Design, stage three will certainly produce visibility to discovering, High energy and also commitment as people will embrace the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Requirement power structure: The OB concern related to insecurity at the work environment has been activated first of all by the modification in management and also secondly by the truth that the merger will certainly no longer be started. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has talks about the significance of 'safety and security requires as being a lower level requirement of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to feel safe and secure as well as unharmed' is at the 2nd degree of demands. Prior to a staff member can be made to establish psychologically, he requires to have his 'Physiological 'and 'Safety and security' requires satisfied. This shows that unless the workers are made to feel secure regarding their present work standing in Johansens The New Scorecard System Corporate Finance Manager Handout 3 they might not reach 'Self-Fulfillment'. (King, 2009).

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

Effects of Analysis.

The OB analysis has actually looked at numerous theories to understand just how to manage the present situation available. The complying with three choices have actually been recommended to aid Lewis take care of the organizational obstacles in the marketing department. Each of these choices has actually been recommended for easing the transition needed to bring the marketing division in line with the requirements of the marketplace as well as for making the social change that would certainly adhere to once the present leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and Manufacturing features. Integration of Advertising with Workflow.

Evaluation of Alternatives.

Assimilation of Advertising & Advertising Functions: The internal marketing agency of Johansens The New Scorecard System Corporate Finance Manager Handout 3 is already toughness for the company in terms of saving up on overheads connected to marketing and also promo. Considering that no new recruitment has been done after Bridget Cole's separation with the coverage line being directly designated to Krasnow for the marketing function, this is a positive possibility for incorporating the advertising and marketing features. Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merger days has competence in business-to-business advertising and marketing along with firm as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to manage both advertising and marketing functions.

The benefit of this strategy is that it will integrate both features while lowering the need for employing an extra source for advertising. Lewis would be heading the advertising division as well as in any kind of case her replacement would certainly be needed for the present duty that she is performing. The negative aspect of this alternative is that external hiring may produce animosity from internal workers who might be eying the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Manufacturing: Given the competitive pressures as well as premium quality work called for from the ad agency, it is suggested that Lewis needs to permit the production device to be a different function from the advertising and marketing unit. Because a lot of advertising agencies had these two features as different devices, it makes even more sense to comply with the standard. Both functions may be able to focus on their core turns on much more successfully. However, the negative aspect of this approach would certainly be that added prices would have to be birthed for setting up separate manufacturing functions. A manufacturing head may have to be hired which could boost expenses for the organization.

Assimilation of Advertising And Marketing with Operations: Given that Lewis is already taking care of the advertising and operations divisions simultaneously; it makes sense to incorporate both functions since she has been effectively taking care of both ends. The fact that both departments already have major distinctions over allocation of sources suggests that this assimilation might be able to cause harmony particularly as Lewis would be heading both ends.However there are different negative aspects of this relocation especially as it would certainly put excessive burden over Lewis's shoulders. The reality that Lewis needs to adjust her management style for the marketing division recommends that these two divisions would certainly be culturally diverse. Lewis may not be able to apply one type of leadership design to both divisions which could result in inadequacy in either one of the two functions.


An assessment of the three choices shows that assimilation of marketing and also operations would not be a practical relocation due to the large distinctions in between the two departments in spite of the truth that currently Lewis is dealing with both. While separation of the manufacturing feature may have been a desirable move for the advertising and marketing department, the fact that it would indicate positioning a third feature under Lewis's wing suggests this must be stayed clear of.

Activity Plan.
Lewis will certainly take over the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

Production function will stay part of marketing under marketing feature.

Lewis will separate herself from procedures.

An autonomous leadership style with staff member empowerment will be utilized in marketing department.

Open up door policy as well as emphasis on cross departmental interaction will be aimed at getting rid of discord.

Contingency plan.

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