Merrill Lynch In 2003 Sunny Skies Ahead Case Study Help


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Merrill Lynch In 2003 Sunny Skies Ahead Case Study Help

Background and Facts

Merrill Lynch In 2003 Sunny Skies Ahead a workplace products seller for little as well as medium sized businesses has actually recently been involved in preparing for a merging with its rival House Deport, which has influenced effectiveness degrees in departmentswith the elderly supervisor associated with legal problems put forth by the federal 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 future. With obstacles in the kind of a possible cultural modification and low worker morale, the company needs a complete reengineering initiative at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The possible social adjustment at the advertising and marketing department of Merrill Lynch In 2003 Sunny Skies Ahead is enhancing unpredictability in the workplace bring about various obstacles 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 function in impacting strategic decisions considering that Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Profession Payment's treatment while doing so. Given the fact that the store has a worldwide visibility with branches in UK, USA, Canada and Germany, political factors in each of these countries may be able to influence performance or critical objectives. Federal Profession Compensation's antitrust fit against the merger took up useful time of the organization's senior management suggesting that 'political' factors can have serious ramifications for a worldwide company.

Economic Factors: Financial factors such as the development of local business in the global circumstance suggest that Merrill Lynch In 2003 Sunny Skies Ahead is thriving in an atmosphere where there is possible growth of services. In addition to this, reality that store customers are mainly looking for workplace supplies for office recommends that the market has a rising pattern of business owners as well as online services.

Social factors: Social trends in the economic climate reveal that consumers are seeking comfort along with appealing rates. Marketing research shows how the consumer for Merrill Lynch In 2003 Sunny Skies Ahead does not have awareness regarding finding remedies which can use a mix of comfort and also low costs.

Technological factors: Innovation plays an essential duty in Merrill Lynch In 2003 Sunny Skies Ahead's business technique specifically as the company is piloting Modern technology facilities which would supply technology sales as well as support in the kind of memory upgrades, outer installments. (Summary of BUG in appendix 2).

OB Issues as well as Symptoms.

Several underlying Organizational Habits issues can be seen in Merrill Lynch In 2003 Sunny Skies Ahead's case as highlighted in this section.

Concerns concerning cultural change: There is apprehension about a social modification that would take place when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with a lot of the employee already revealing discontent over this potential action. This expected modification has produced stress in the office which has been combined with the previous stress of preparing the company for a prospective merging with House Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is shortage of workers that can match the difficult atmosphere of a fast-paced company. Not only does this result in problem in finding the ideal people, it puts stress on new hires as can not hold up against the rate and stress that the organization expects them to bear.

Double Reporting Lines: Newbies find this organizational culture cumbersome as well as hard to handle particularly as dotted line relationships are indicated to be weaker generally as well as unbiased setup as well as efficiency evaluation is still done by the solid line manager. This means that newbies might lose clearness concerning their particular duties and also objectives especially as dotted line reporting does not keep them in straight interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had been speculated that the last would certainly take Krasnow's position came as a strike to her spirits. Lewis may have been capable as well as proper for the job however the truth that Kransnow's separation would certainly make Coles a straight report to Lewis may have been the reason for Coles' resignation from services.

Concern & Task Instability: Anxiety as well as insecurity can be identified as 2 significant problems that Lewis would certainly be taking care of especially as the merging has now be cancelled as well as 2 elderly executives of the marketing division would certainly be leaving. The entire duty of the department would be dropping on Lewis's shoulders who would certainly not simply supervise of brining about a cultural change however would certainly likewise have to confirm herself in her new role.

Inappropriate Administration Design of Leader: Lewis's administration design and its incompatibility with the advertising division's function can additionally be seen as an OB challenge specifically as she has actually been used to dealing with problems in the procedures department where workers are educated to concentrate on processes and obtain them. The marketing division on the other hand can be viewed as a team of people that are utilized to being nurtured by Krasnow that focused a lot more on output than processes.

Interdepartmental Disagreements: Interdepartmental disagreements in between three divisions, advertising, merchandizing and also procedures respectively over the appropriation of the advertising and marketing mix can be identified as one more OB issue. The marketing division does not share the same vision as the various other two divisions concerning the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and operations divisions do not concur over the advertising mix allocation amongst one an additional either.

Fragmentation in Advertising And Marketing Department: Disintegration in between the advertising and marketing divisions can be identified as one more OB issue which might require further focus. The truth that the advertising and marketing sections in the advertising and marketing department are detached is protecting against both divisions from obtaining from each various other's experience and also proficiency. Combination of marketing with merchandising as well as procedures would certainly end up being more difficult if the advertising department itself is disintegrated which can be an additional potential OB problem.

Merrill Lynch In 2003 Sunny Skies Ahead Analysis

Various theories have been used to clarify the circumstances to obtain more quality about the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors believe that juniors are easy as well as careless, have little ambition and also resist modification. The situation at Merrill Lynch In 2003 Sunny Skies Ahead is not entirely complying with Concept X, it can be seen that new hires are discovering this setting instead demanding which might ultimately lead to a greater inclination of the monitoring towards Theory X. Also while evaluating Lewis's administration style, theory X might have been suitable in the operations department to some level but the Advertising and marketing department would call for reliance on Concept Y in order to obtain the creative thinking and originality from the groups.

Tuckman's Synergy Concept: As far as Lewis's problem concerning bringing consistency in between the marketing as well as advertising and marketing division is worried, this would at first lead to contrast as discussed by Bruce Tuckman in his 'Synergy Theory'. By incorporating the advertising and marketing and also advertising and marketing division's job, there may be the very same first separate which can lead to the second phase of 'storming' where the teams challenge one another.

When individuals are provided with adjustment, they enter stage one as well as so there may be emotions like unhappiness, uncertainty, stress, rage, worry, denial and disorientation.The circumstance at the marketing department of Merrill Lynch In 2003 Sunny Skies Ahead is comparable so Lewis can obtain comfy with the idea that it is not remarkable actions. It is during this stage that Lewis will certainly have to provide advice to the department so that they can find a sense of direction. It can be seen exactly how Krasnow has actually currently made this change easier by making Lewis obtain entailed in the division a year before his actual separation.
Vrio Analysis
Maslow's Demand pecking order: The OB concern related to insecurity at the workplace has actually been set off firstly by the change in monitoring as well as second of all by the fact that the merger will no longer be initiated. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has reviews the relevance of 'protection needs as being a reduced degree demand 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 untouched' is at the 2nd degree of demands. Before a worker can be made to develop emotionally, he requires to have his 'Physical 'as well as 'Safety and security' needs satisfied. This suggests that unless the personnel are made to really feel safe about their existing work condition in Merrill Lynch In 2003 Sunny Skies Ahead they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Merrill Lynch In 2003 Sunny Skies Ahead Case Study

Effects of Analysis.

The OB analysis has looked at numerous concepts to comprehend just how to deal with the existing circumstance at hand. The adhering to 3 alternatives have actually been proposed to help Lewis deal with the business obstacles in the marketing department. Each of these choices has actually been recommended for easing the transition required to bring the advertising division in accordance with the demands of the market and also for making the cultural change that would certainly comply with once the existing leader leaves.

Assimilation of marketing and advertising features. Separating Adverting as well as Manufacturing features. Assimilation of Advertising And Marketing with Workflow.

Analysis of Alternatives.

Assimilation of Advertising And Marketing & Marketing Functions: The in-house marketing agency of Merrill Lynch In 2003 Sunny Skies Ahead is already toughness for the company in terms of saving up on expenses related to advertising and marketing and also promotion. Since no brand-new recruitment has actually been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the marketing feature, this is a favorable possibility for integrating the advertising and marketing functions. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merging days has proficiency in business-to-business marketing along with agency and also retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to handle both advertising and marketing functions.

The advantage of this approach is that it will certainly incorporate the two features while lowering the need for working with an additional resource for advertising. Along with this, Lewis would certainly be heading the marketing division and all the same her replacement would certainly be required for the current role that she is performing. The disadvantage of this choice is that outside hiring might produce resentment from internal personnel that might be considering the position of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and also Production: Offered the affordable pressures as well as top quality work needed from the advertising agency, it is suggested that Lewis ought to allow the manufacturing unit to be a different function from the advertising system. Because most advertising agencies had these 2 functions as separate systems, it makes even more feeling to comply with the norm. Along with this, both functions may be able to focus on their core triggers more effectively. The negative aspect of this strategy would certainly be that additional prices would certainly have to be borne for establishing up separate manufacturing features. A production head may have to be worked with which could boost overheads for the company.

Integration of Advertising And Marketing with Procedures: Given that Lewis is currently taking treatment of the marketing as well as operations divisions all at once; it makes sense to incorporate the 2 features given that she has been successfully taking treatment of both ends. The truth that Lewis has to adapt her management style for the advertising and marketing department recommends that these two divisions would certainly be culturally diverse.


An analysis of the three options indicates that assimilation of marketing as well as operations would not be a practical step due to the huge differences between the two departments regardless of the truth that presently Lewis is taking care of both. While separation of the production function may have been a desirable step for the advertising and marketing division, the fact that it would imply placing a third function under Lewis's wing means this need to be stayed clear of.

Activity Strategy.
Lewis will take over the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Manufacturing function will certainly stay component of marketing under marketing feature.

Lewis will certainly separate herself from procedures.

An autonomous management style with staff member empowerment will be utilized in advertising department.

Open door plan and emphasis on cross department interaction will certainly be focused on eliminating dissonance.

Contingency plan.

If the integration does not exercise as prepared, a backup strategy would adhere to which would certainly separate the manufacturing feature from the advertising feature to reduce 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. In that case the manufacturing function will most definitely be separated by positioning it under an SVP manufacturing.