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Merrill Lynch Holdrs Case Study Analysis

CASE ANALYSIS

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Merrill Lynch Holdrs Case Study Solution

Background and Facts

Merrill Lynch Holdrs a workplace materials retailer for little and average sized businesses has actually just recently been involved in preparing for a merging with its rival House Deport, which has impacted efficiency degrees in departmentswith the elderly manager associated with legal issues put forth by the federal Profession Payment. With the Marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the duty in the near future. With difficulties in the kind of a potential social adjustment as well as low worker spirits, the company is in need of a full reengineering initiative at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the advertising and marketing department of Merrill Lynch Holdrs is boosting uncertainty in the workplace bring about various difficulties for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting calculated choices because Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Payment's treatment at the same time. Given the truth that the store has an international visibility with branches in UK, USA, Canada and Germany, political factors in each of these countries may be able to impact efficiency or strategic objectives. Federal Trade Commission's antitrust match against the merging occupied important time of the company's senior administration recommending that 'political' factors can have severe ramifications for a global service.

Economic Factors: Economic factors such as the development of local business in the worldwide circumstance suggest that Merrill Lynch Holdrs is flourishing in a setting where there is possible development of companies. In addition to this, reality that shop consumers are mainly looking for office supplies for office recommends that the market has a climbing fad of business owners as well as home based services.

Social factors: Social patterns in the economic situation show that clients are seeking ease along with attractive prices. Market research shows how the customer for Merrill Lynch Holdrs does not have understanding concerning discovering solutions which can use a combination of comfort and low costs.

Technological factors: Technology plays an important role in Merrill Lynch Holdrs's business technique especially as the organization is piloting Modern technology centers which would certainly offer technology sales and support in the kind of memory upgrades, outer setups. (Recap of PARASITE in appendix 2).

OB Issues and Symptoms.

A number of underlying Organizational Actions concerns can be seen in Merrill Lynch Holdrs's case as highlighted in this area.

Uneasiness about cultural change: There is apprehension regarding a social modification that would occur once Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Marketing with most of the team member already showing discontent over this potential move. This predicted change has produced stress and anxiety in the work environment which has been paired with the past tension of preparing the firm for a potential merging with House Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is scarcity of workers that can match the difficult atmosphere of a busy company. Not only does this result in difficulty in discovering the right individuals, it puts tension on new hires as can not stand up to the rate and also stress that the company expects them to birth.

Double Reporting Lines: Novices locate this organizational society troublesome and also hard to cope with specifically as dotted line partnerships are implied to be weak in general and also unbiased setup and efficiency examination is still done by the strong line supervisor. This implies that newcomers might shed clarity concerning their respective functions as well as goals particularly as dotted line coverage does not keep them in direct communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles despite the fact that it had actually been hypothesized that the latter would certainly take Krasnow's placement came as a strike to her morale. Lewis might have been capable and also ideal for the job but the fact that Kransnow's separation would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Fear & Job Insecurity: Anxiety and also insecurity can be identified as two major problems that Lewis would be dealing with especially as the merging has now be cancelled and also 2 senior execs of the marketing division would be leaving. The whole responsibility of the division would be dropping on Lewis's shoulders who would not simply be in charge of brining concerning a social modification however would additionally have to confirm herself in her new duty.

Inappropriate Administration Design of Leader: Lewis's management design and also its conflict with the marketing department's role can likewise be seen as an OB difficulty specifically as she has actually been used to handling issues in the procedures division where employees are shown to focus on procedures and get them. The advertising and marketing division on the other hand can be seen as a team of individuals who are used to being supported by Krasnow who focused more on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements in between three divisions, advertising and marketing, merchandizing as well as procedures specifically over the allowance of the advertising and marketing mix can be recognized as one more OB problem. The marketing department does not share the exact same vision as the various other two divisions relating to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and operations divisions do not concur over the advertising and marketing mix appropriation amongst one another either.

Fragmentation in Advertising And Marketing Department: Fragmentation in between the marketing and advertising divisions can be identified as an additional OB concern which might need more attention. The truth that the advertising and marketing sections in the advertising department are separated is stopping both divisions from getting from each various other's experience as well as expertise. Integration of advertising with merchandising and also procedures would certainly end up being harder if the advertising department itself is broken down which can be an additional potential OB worry.

Merrill Lynch Holdrs Analysis

Various concepts have actually been used to discuss the scenarios to get more quality regarding the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors believe that subordinates are easy and careless, have little passion as well as withstand modification. The situation at Merrill Lynch Holdrs is not entirely following Concept X, it can be seen that new hires are discovering this environment rather stressful which might ultimately lead to a higher inclination of the administration towards Theory X. Even while assessing Lewis's monitoring design, concept X may have been suitable in the operations division to some degree however the Marketing department would call for dependence on Concept Y in order to get the creativity and also creativity from the groups.

Tuckman's Synergy Theory: As for Lewis's issue regarding bringing consistency between the marketing and advertising division is concerned, this would initially result in clash as reviewed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, throughout the first phase of group growth, individuals might not bond, as they are active finding their area in the team. By incorporating the advertising and marketing department's job, there might coincide preliminary separate which can bring about the 2nd stage of 'storming' where the teams test one another. Nevertheless, it is only during the 3rd stage or 'norming' when they would collaborate to share concepts before the group can produce harmony in the fourth stage 'executing'.

When individuals are presented with change, they enter phase one as well as so there may be feelings like unhappiness, uncertainty, aggravation, anger, anxiety, rejection and also disorientation.The scenario at the advertising and marketing division of Merrill Lynch Holdrs is similar so Lewis can get comfy with the suggestion that it is not remarkable actions. It is throughout this stage that Lewis will have to give support to the department so that they can find a feeling of direction. It can be seen just how Krasnow has actually currently made this transition easier by making Lewis get included in the division a year prior to his real departure.
Vrio Analysis
Maslow's Requirement pecking order: The OB problem pertaining to insecurity at the workplace has actually been triggered first of all by the modification in management and also second of all by the fact that the merging will certainly no longer be launched. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has talks about the value of 'safety and security needs as being a lower degree requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel safe and also untouched' is at the 2nd level of demands. Prior to a staff member can be made to create mentally, he requires to have his 'Physiological 'and 'Safety' requires satisfied. This shows that unless the employees are made to really feel safe and secure regarding their existing work status in Merrill Lynch Holdrs they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Merrill Lynch Holdrs Case Study



Effects of Analysis.

The OB analysis has actually considered various concepts to understand exactly how to deal with the current circumstance available. The following 3 alternatives have actually been recommended to help Lewis take care of the organizational difficulties in the marketing department. Each of these choices has been suggested for easing the change required to bring the marketing department in accordance with the requirements of the market as well as for making the social modification that would adhere to as soon as the present leader leaves.

Combination of marketing and advertising functions. Separating Adverting and Manufacturing features. Combination of Advertising with Operations.

Analysis of Alternatives.

Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merger days has experience in business-to-business advertising and marketing along with agency and retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to handle both advertising and marketing features.

The benefit of this method is that it will certainly incorporate the two features while lowering the demand for hiring an additional resource for advertising and marketing. Along with this, Lewis would be heading the advertising department as well as in any case her substitute would be needed for the present duty that she is executing. The negative aspect of this option is that exterior hiring might produce bitterness from inner workers that might be considering the setting of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and also Manufacturing: Given the competitive pressures and also excellent quality work needed from the advertising agency, it is recommended that Lewis needs to allow the manufacturing device to be a separate feature from the advertising system. Because the majority of advertising agencies had these 2 features as different units, it makes even more sense to comply with the standard. Both features might be able to focus on their core activates much more effectively. The disadvantage of this approach would be that extra costs would certainly have to be borne for setting up different manufacturing features. Along with this, a manufacturing head might need to be worked with which can boost expenses for the company.

Assimilation of Marketing with Workflows: Given that Lewis is currently taking care of the advertising and marketing and operations departments at the same time; it makes sense to incorporate the two functions considering that she has been efficiently taking care of both ends. The truth that Lewis has to adjust her administration design for the marketing division suggests that these 2 divisions would be culturally varied.

Suggestion.



An assessment of the three alternatives suggests that combination of advertising as well as procedures would not be a viable relocation due to the large differences in between the two divisions although that currently Lewis is handling both. While splitting up of the manufacturing feature might have been a positive action for the advertising and marketing division, the fact that it would certainly imply positioning a 3rd feature under Lewis's wing implies this need to be prevented also. The assimilation of the advertising and marketing department is the most effective choice in terms of getting the optimum results from the department. An action prepare for this alternative is gone over below.

Action Plan.
Recommendation
Lewis will take over the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Production function will certainly remain part of advertising under advertising and marketing function.

Lewis will certainly divide herself from operations.

An autonomous leadership style with staff member empowerment will certainly be used in advertising division.

Open door plan as well as emphasis on cross department interaction will be aimed at eliminating dissonance.

Contingency strategy.

If the integration does not exercise as planned, a backup plan would certainly comply with which would certainly separate the production function from the marketing feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising and marketing division without an SVP. In that case the production feature will absolutely be divided by positioning it under an SVP production.