Background and Facts
Lehman Brothers And The Securitization Of American Express Charge Card Receivables an office supplies store for little and also moderate sized services has actually just recently been involved in planning for a merging with its rival Residence Deport, which has actually influenced effectiveness levels in departmentswith the elderly manager associated with lawful problems put forth by the federal Trade Compensation. With the Advertising Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the function in the near future. With difficulties in the kind of a prospective cultural modification as well as low employee spirits, the organization wants a full reengineering initiative at the advertising division.Issue Declaration
The potential social modification at the advertising and marketing department of Lehman Brothers And The Securitization Of American Express Charge Card Receivables is raising unpredictability in the workplace leading to numerous difficulties for the Jeannie Lewis who would be changing the head of the division in one year. nalysis
PEST analysis
Political Factors: Political factors play a significant role in affecting strategic decisions since Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Profession Commission's intervention while doing so. Offered the reality that the store has a worldwide presence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these countries might have the ability to influence performance or tactical goals. Federal Trade Compensation's antitrust fit against the merging used up useful time of the company's elderly management suggesting that 'political' factors can have significant implications for a global organisation.
Economic Factors: Financial factors such as the appearance of local business in the worldwide circumstance recommend that Lehman Brothers And The Securitization Of American Express Charge Card Receivables is prospering in an atmosphere where there is possible development of businesses. Along with this, fact that shop customers are mainly seeking workplace supplies for office recommends that the market has a climbing trend of business owners and also online organisations.
Social factors: Social trends in the economy show that customers are searching for comfort as well as attractive rates. Market research demonstrates how the customer for Lehman Brothers And The Securitization Of American Express Charge Card Receivables does not have awareness concerning discovering solutions which can use a mix of comfort as well as low costs.
Technical factors: Technology plays an essential function in Lehman Brothers And The Securitization Of American Express Charge Card Receivables's business approach particularly as the company is piloting Technology facilities which would certainly use modern technology sales and also assistance in the kind of memory upgrades, peripheral installments. (Recap of INSECT in appendix 2).
OB Issues as well as Symptoms.
Numerous underlying Organizational Behavior issues can be seen in Lehman Brothers And The Securitization Of American Express Charge Card Receivables's case as highlighted in this section.
Concerns regarding social change: There is apprehension concerning a cultural change that would certainly take place when Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with most of the employee already showing unhappiness over this prospective relocation. This predicted adjustment has actually developed stress and anxiety in the office which has actually been combined with the past tension of preparing the firm for a potential merger with Residence Deport.
Difficult Job Setting for Newcomers: There is scarcity of personnel that can match the difficult environment of a fast-paced organization. Not just does this result in problem in finding the appropriate people, it puts tension on new hires as can not stand up to the rate and also pressure that the company anticipates them to bear.
Twin Coverage Lines: Newbies locate this organizational society troublesome as well as challenging to cope with particularly as populated line partnerships are implied to be weak generally and also unbiased setting and performance evaluation is still done by the solid line supervisor. This means that newbies can shed clearness about their particular duties and also goals especially as dotted line coverage does not maintain them in straight interaction with the strong line supervisors.
Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had been guessed that the latter would take Krasnow's position came as an impact to her morale. Lewis might have been qualified as well as ideal for the job yet the fact that Kransnow's separation would make Coles a straight report to Lewis may have been the reason for Coles' resignation from solutions.
Concern & Job Insecurity: Concern and instability can be recognized as two major concerns that Lewis would be dealing with especially as the merger has currently be cancelled and 2 elderly execs of the advertising division would be leaving. The whole duty of the division would be dropping on Lewis's shoulders that would certainly not just supervise of brining regarding a cultural modification but would certainly likewise need to show herself in her new duty.
Incompatible Management Style of Leader: Lewis's administration style and its conflict with the advertising division's role can also be seen as an OB challenge specifically as she has actually been made use of to managing issues in the operations department where workers are shown to concentrate on processes and also get them. The advertising division on the various other hand can be seen as a group of individuals who are made use of to being supported by Krasnow who concentrated much more on result than procedures.
Interdepartmental Differences: Interdepartmental differences between three departments, marketing, merchandizing as well as operations specifically over the allotment of the marketing mix can be recognized as one more OB problem. The advertising and marketing division does not share the same vision as the other 2 departments concerning the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and also operations divisions do not concur over the advertising and marketing mix allowance amongst one another either.
Disintegration in Advertising And Marketing Department: Fragmentation between the advertising and marketing departments can be identified as one more OB concern which could require further attention. The truth that the marketing and advertising sections in the marketing division are detached is protecting against both departments from obtaining from each various other's experience and also knowledge. Combination of marketing with retailing as well as operations would become more difficult if the advertising and marketing department itself is degenerated which can be one more possible OB problem.
Lehman Brothers And The Securitization Of American Express Charge Card Receivables Analysis
Different concepts have been made use of to describe the circumstances to obtain additional clearness regarding the scenario available.
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of managers think that subordinates are easy and careless, have little aspiration as well as withstand modification. The situation at Lehman Brothers And The Securitization Of American Express Charge Card Receivables is not totally complying with Concept X, it can be seen that brand-new hires are discovering this setting rather demanding which may ultimately lead to a better disposition of the monitoring towards Theory X. Even while assessing Lewis's administration style, concept X might have been appropriate in the operations department to some extent but the Advertising department would require dependence on Theory Y in order to get the creative thinking as well as creativity from the groups.
Tuckman's Team effort Concept: Regarding Lewis's issue about bringing harmony in between the marketing and advertising department is worried, this would at first result in contrast as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, during the initial stage of team development, individuals might not bond, as they are hectic locating their place in the team. By incorporating the marketing and advertising department's work, there may coincide initial separate which could result in the 2nd phase of 'storming' where the groups test one another. It is only during the third stage or 'norming' when they would come with each other to share suggestions before the team can bring about synergy in the fourth phase 'doing'.
When people are provided with modification, they go into phase one and also so there might be feelings like sadness, uncertainty, aggravation, anger, fear, rejection and also disorientation.The situation at the marketing department of Lehman Brothers And The Securitization Of American Express Charge Card Receivables is comparable so Lewis can get comfy with the idea that it is not phenomenal behavior. It is throughout this phase that Lewis will certainly have to offer support to the division so that they can find a feeling of direction. It can be seen exactly how Krasnow has currently made this shift simpler by making Lewis obtain involved in the department a year before his real separation.
Maslow's Requirement pecking order: The OB problem pertaining to insecurity at the work environment has been activated firstly by the adjustment in monitoring and also second of all by the truth that the merger will certainly no longer be initiated. Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has reviews the relevance of 'safety needs as being a reduced level demand of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the requirement to feel safe and secure as well as untouched' goes to the 2nd degree of requirements. Before a worker can be made to establish psychologically, he requires to have his 'Physical 'and 'Safety and security' needs met. This indicates that unless the employees are made to feel safe concerning their existing work status in Lehman Brothers And The Securitization Of American Express Charge Card Receivables they might not reach 'Self-Fulfillment'. (King, 2009).
SWOT Analysis for Lehman Brothers And The Securitization Of American Express Charge Card Receivables Case Study
Implication of Analysis.
The OB analysis has looked at different concepts to understand how to cope with the existing circumstance at hand. The adhering to three choices have been proposed to help Lewis manage the organizational difficulties in the advertising and marketing department. Each of these choices has been suggested for relieving the shift needed to bring the advertising and marketing department according to the needs of the market and also for making the social modification that would comply with when the present leader leaves.
Combination of advertising and marketing functions. Dividing Adverting and Manufacturing features. Integration of Advertising with Procedures.
Evaluation of Alternatives.
Assimilation of Advertising And Marketing & Advertising Functions: The in-house marketing agency of Lehman Brothers And The Securitization Of American Express Charge Card Receivables is currently strength for the organization in terms of conserving up on expenses related to advertising as well as promo. Since no brand-new recruitment has been done after Bridget Cole's departure with the reporting line being straight assigned to Krasnow for the advertising and marketing function, this is a beneficial chance for incorporating the marketing and advertising features. Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merging days has expertise in business-to-business advertising and marketing together with firm and also retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both advertising and marketing functions.
The advantage of this technique is that it will certainly integrate the two features while minimizing the need for working with an added source for marketing. Lewis would be heading the marketing division and also in any kind of case her substitute would certainly be needed for the existing function that she is performing. The drawback of this alternative is that exterior hiring may cause bitterness from internal personnel that might be considering the position of EVP after Lewis takes control of Krasnow's placement.
Dividing Adverting and Production: Offered the competitive stress as well as high quality job required from the marketing company, it is advised that Lewis ought to permit the production unit to be a different feature from the marketing device. Since the majority of marketing agencies had these two functions as separate devices, it makes more sense to follow the norm.
Assimilation of Advertising with Procedures: Given that Lewis is already taking treatment of the marketing as well as operations divisions concurrently; it makes sense to incorporate the 2 features considering that she has been successfully taking treatment of both ends. The truth that Lewis has to adapt her management style for the advertising division recommends that these two divisions would be culturally varied.
Recommendation.
An assessment of the three alternatives suggests that combination of marketing as well as procedures would certainly not be a possible step because of the substantial distinctions between the two divisions although that currently Lewis is taking care of both. While splitting up of the production feature may have been a positive action for the advertising department, the reality that it would imply putting a third feature under Lewis's wing implies this need to be stayed clear of. The combination of the advertising division is the very best alternative in terms of obtaining the optimal results from the division. An activity prepare for this option is talked about listed below.
Action Plan.
Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.
Marketing and advertising features would be combined.
Judith Shapiro will be employed to take Lewis's location as SVP of advertising and marketing.
Manufacturing feature will certainly continue to be component of advertising and marketing under marketing function.
Lewis will certainly divide herself from operations.
A democratic management style with staff member empowerment will certainly be made use of in advertising and marketing department.
Open up door policy as well as emphasis on cross department interaction will certainly be aimed at eliminating discord.
Backup strategy.
If the integration does not work out as planned, a contingency plan would follow which would divide the production function from the advertising function 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 and marketing department without an SVP. In that case the manufacturing function will absolutely be separated by putting it under an SVP manufacturing.