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Malaysia Capital And Control Case Study Analysis

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Malaysia Capital And Control Case Study Analysis

Background and Facts

Malaysia Capital And Control a workplace supplies store for little as well as medium sized services has actually just recently been associated with planning for a merger with its rival Home Deport, which has actually influenced effectiveness degrees in departmentswith the elderly manager associated with lawful complications presented by the federal Profession Compensation. With the Marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the role in the near future. With obstacles in the type of a potential cultural adjustment and also reduced staff member morale, the organization requires a complete reengineering initiative at the advertising division.

Problem Statement
Porter's 5 Forces Analysis
The possible social modification at the marketing department of Malaysia Capital And Control is increasing uncertainty in the workplace resulting in various obstacles 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 major duty in impacting calculated decisions since Stapes Inc. had to desert its plans of combining with Office Deport after the Federal Profession Commission's treatment at the same time. Given the truth that the store has a worldwide visibility with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries may be able to affect performance or calculated goals. Federal Profession Compensation's antitrust match against the merging occupied beneficial time of the company's senior administration suggesting that 'political' factors can have severe implications for a global business.

Economic Factors: Economic factors such as the introduction of small businesses in the international situation suggest that Malaysia Capital And Control is flourishing in an atmosphere where there is possible growth of companies. Reality that shop clients are primarily looking for workplace supplies for residence offices suggests that the market has an increasing pattern of business owners and also home based organisations.

Social factors: Social fads in the economy reveal that clients are trying to find ease in addition to attractive costs. Marketing research demonstrates how the client for Malaysia Capital And Control does not have recognition concerning discovering options which can offer a mix of convenience and low costs.

Technological factors: Technology plays an important duty in Malaysia Capital And Control's company strategy specifically as the company is piloting Technology centers which would certainly supply technology sales as well as assistance in the form of memory upgrades, outer installments. (Recap of PEST in appendix 2).

OB Issues as well as Symptoms.

Several underlying Business Behavior concerns can be seen in Malaysia Capital And Control's case as highlighted in this area.

Concerns concerning cultural adjustment: There is apprehension concerning a cultural change that would happen as soon as Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with the majority of the team member already showing discontent over this potential action. This predicted adjustment has created stress and anxiety in the workplace which has actually been paired with the past tension of preparing the company for a potential merging with Residence Deport.
Pest Analysis
Stressful Task Environment for Newcomers: There is lack of employees that can match the difficult atmosphere of a busy organization. Not only does this bring about trouble in discovering the ideal individuals, it puts stress and anxiety on brand-new hires as can not endure the pace as well as pressure that the organization anticipates them to birth.

Dual Coverage Lines: Newbies locate this business culture difficult as well as tough to handle especially as dotted line partnerships are implied to be weak generally and also objective setting as well as performance analysis is still done by the strong line manager. This suggests that newbies can lose clarity about their respective functions and also purposes particularly as populated line coverage does not maintain them in direct interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had actually been guessed that the latter would take Krasnow's position came as an impact to her morale. Lewis might have been capable as well as ideal for the work however the reality that Kransnow's separation would make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Worry & Task Insecurity: Fear and instability can be determined as two significant concerns that Lewis would be managing specifically as the merger has actually now be terminated as well as 2 senior execs of the advertising and marketing department would be leaving. The entire duty of the department would be falling on Lewis's shoulders who would not simply be in charge of brining about a cultural change yet would certainly also have to prove herself in her new role.

Inappropriate Administration Style of Leader: Lewis's monitoring design as well as its conflict with the marketing department's role can additionally be seen as an OB challenge specifically as she has been utilized to managing problems in the operations division where employees are shown to focus on processes as well as obtain them. The advertising and marketing division on the other hand can be seen as a group of people that are utilized to being nurtured by Krasnow who focused more on output than procedures.

Interdepartmental Disagreements: Interdepartmental disputes between 3 divisions, marketing, merchandizing and procedures specifically over the appropriation of the advertising and marketing mix can be recognized as an additional OB issue. Although the advertising division does not share the same vision as the various other 2 departments relating to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and operations divisions do not agree over the advertising mix allowance among one another either.

Disintegration in Advertising And Marketing Division: Fragmentation in between the marketing and advertising departments can be determined as another OB problem which might require additional focus. The truth that the marketing and advertising sections in the marketing department are disconnected is avoiding both departments from gaining from each various other's experience as well as expertise. Combination of marketing with retailing as well as procedures would certainly end up being harder if the advertising division itself is degenerated which can be another possible OB concern.

Malaysia Capital And Control Analysis

Different theories have actually been made use of to discuss the circumstances to obtain additional clarity regarding the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors believe that juniors are passive as well as lazy, have little aspiration and also withstand adjustment. The circumstance at Malaysia Capital And Control is not completely complying with Theory X, it can be seen that brand-new hires are discovering this atmosphere instead stressful which might at some point lead to a higher inclination of the monitoring towards Concept X. Even while analyzing Lewis's management design, concept X may have been appropriate in the procedures department to some level but the Advertising department would certainly require reliance on Theory Y in order to obtain the imagination and originality from the teams.

Tuckman's Teamwork Theory: As for Lewis's problem concerning bringing harmony in between the advertising and marketing department is worried, this would originally cause clash as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, throughout the first phase of team development, individuals might not bond, as they are busy finding their place in the team. By incorporating the advertising and marketing division's job, there may be the same preliminary detach which could result in the second phase of 'storming' where the teams test one another. It is only throughout the 3rd phase or 'norming' when they would come together to share concepts before the team can bring about harmony in the fourth phase 'executing'.

Bridges' Shift Design: Based On William Bridge's concept (appendix 4), individuals are rather awkward with adjustment, which is evident by the situation at Malaysia Capital And Control The circumstance can be seen as a normal program of life if is researched according to Bridge's theory where he clarifies that individuals experience 3 stages of change when they experience modification. 'End, shedding and also Letting go', The Neutral Area and 'The New Beginning' (Bridges, 2004). When individuals are presented with modification, they go into phase one and so there may be feelings like unhappiness, unpredictability, disappointment, temper, fear, denial as well as disorientation.The situation at the advertising division of Malaysia Capital And Control is comparable so Lewis can obtain comfortable with the idea that it is not phenomenal behavior. In the second phase, there might be a need to link the void between the brand-new and old culture so Lewis may need to face this challenge as soon as Krasnow leaves. There may be low morale and low performance at this phase which should not be taken as a trouble. It is throughout this stage that Lewis will have to provide assistance to the division to ensure that they can find a sense of direction. It can be seen just how Krasnow has already made this change simpler by making Lewis get associated with the department a year before his actual separation. As per Bridges' Model, stage three will certainly bring about openness to knowing, High power and also commitment as people will welcome the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has discusses the relevance of 'security requires as being a reduced degree demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel secure and also out of threat' is at the 2nd level of demands. Before a worker can be made to develop emotionally, he requires to have his 'Physical 'and 'Security' requires met.

SWOT Analysis for Malaysia Capital And Control Case Study



Effects of Analysis.

The OB analysis has looked at various theories to recognize just how to handle the present situation handy. The complying with three choices have actually been proposed to aid Lewis deal with the organizational obstacles in the advertising and marketing department. Each of these choices has been proposed for alleviating the transition needed to bring the advertising division according to the demands of the market and also for making the social adjustment that would certainly adhere to once the present leader leaves.

Combination of advertising and marketing functions. Separating Adverting and also Production features. Integration of Marketing with Workflow.

Examination of Alternatives.

Assimilation of Marketing & Advertising And Marketing Functions: The internal advertising company of Malaysia Capital And Control is currently strength for the organization in terms of saving up on expenses related to marketing and also promotion. Considering that no new recruitment has been done after Bridget Cole's departure with the reporting line being straight designated to Krasnow for the advertising and marketing function, this is a beneficial chance for integrating the advertising and marketing functions. Judith Shapiro who has earlier been talked to by Lewis during the earlier merging days has experience in business-to-business advertising and marketing along with agency as well as retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to handle both marketing and advertising features.

The advantage of this technique is that it will integrate the two functions while decreasing the requirement for working with an additional resource for marketing. Lewis would be heading the advertising and marketing division as well as in any case her substitute would certainly be needed for the current function that she is carrying out. The disadvantage of this option is that exterior hiring may produce animosity from internal workers who might be eying the position of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and also Production: Given the affordable pressures and also high quality work called for from the advertising agency, it is advised that Lewis needs to enable the manufacturing unit to be a separate feature from the advertising and marketing device. Because the majority of advertising agencies had these two features as different systems, it makes more feeling to comply with the norm.

Assimilation of Marketing with Procedures: Since Lewis is currently taking treatment of the advertising and marketing as well as procedures divisions concurrently; it makes sense to integrate the 2 functions since she has been successfully taking care of both ends. The reality that Lewis has to adjust her monitoring design for the marketing division recommends that these 2 divisions would be culturally varied.

Suggestion.



An examination of the 3 choices indicates that integration of marketing as well as procedures would certainly not be a viable move due to the substantial differences in between the two departments in spite of the truth that presently Lewis is handling both. While splitting up of the manufacturing feature might have been a positive move for the advertising department, the truth that it would certainly suggest putting a 3rd feature under Lewis's wing indicates this ought to be stayed clear of.

Action Strategy.
Recommendation
Lewis will take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would be merged.

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

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

Lewis will certainly separate herself from procedures.

A democratic management style with staff member empowerment will certainly be utilized in marketing department.

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

Backup strategy.

If the integration does not work out as intended, a contingency strategy would follow which would certainly divide the manufacturing function from the advertising and marketing feature to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing division without an SVP. In that case the production feature will definitely be separated by positioning it under an SVP production.