Mgm Mirages Bid For Mandalay Resort Group B Communicating During The Merger Process Case Study Help


Home >> Harvard >> Mgm Mirages Bid For Mandalay Resort Group B Communicating During The Merger Process >>

Mgm Mirages Bid For Mandalay Resort Group B Communicating During The Merger Process Case Study Help

Background and Facts

Mgm Mirages Bid For Mandalay Resort Group B Communicating During The Merger Process a workplace materials merchant for small as well as medium sized companies has just recently been associated with planning for a merger with its competitor Residence Deport, which has actually influenced performance degrees in departmentswith the senior supervisor involved in legal problems presented by the federal Profession Commission. With the Marketing Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the duty in the near future. With difficulties in the kind of a prospective cultural modification as well as reduced staff member spirits, the company needs a full reengineering initiative at the marketing department.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural change at the advertising and marketing division of Mgm Mirages Bid For Mandalay Resort Group B Communicating During The Merger Process is boosting uncertainty in the workplace resulting in various challenges for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing tactical decisions considering that Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Profession Compensation's intervention while doing so. Offered the reality that the store has an international visibility with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these countries might have the ability to affect efficiency or calculated objectives. Federal Profession Payment's antitrust match versus the merging took up important time of the organization's elderly administration recommending that 'political' factors can have serious effects for a worldwide business.

Economic Factors: Financial factors such as the introduction of small businesses in the worldwide situation suggest that Mgm Mirages Bid For Mandalay Resort Group B Communicating During The Merger Process is thriving in an environment where there is prospective growth of businesses. Fact that shop customers are primarily looking for office supplies for home workplaces suggests that the market has an increasing pattern of business owners and also house based companies.

Social factors: Social patterns in the economic situation show that consumers are seeking ease as well as attractive prices. Market research demonstrates how the customer for Mgm Mirages Bid For Mandalay Resort Group B Communicating During The Merger Process does not have awareness about locating services which can offer a mix of convenience and low costs.

Technical factors: Technology plays a crucial function in Mgm Mirages Bid For Mandalay Resort Group B Communicating During The Merger Process's service approach especially as the organization is piloting Technology facilities which would use innovation sales as well as support in the type of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Business Habits concerns can be seen in Mgm Mirages Bid For Mandalay Resort Group B Communicating During The Merger Process's case as highlighted in this area.

Worries about social adjustment: There is apprehension regarding a social change that would certainly occur as soon as Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with a lot of the employee currently showing discontent over this potential action. This anticipated change has created tension in the office which has actually been combined with the past stress of preparing the firm for a potential merging with Home Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is scarcity of workers that can match the stressful environment of a fast-paced organization. Not only does this bring about trouble in discovering the best people, it puts tension on brand-new hires as can not withstand the pace and pressure that the company anticipates them to bear.

Dual Reporting Lines: Newbies discover this business culture troublesome and difficult to handle especially as populated line partnerships are suggested to be weak generally as well as unbiased setup and efficiency evaluation is still done by the strong line supervisor. This indicates that newbies might lose clarity concerning their corresponding roles and objectives especially as dotted line coverage does not keep them in straight interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had 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 appropriate for the task but the fact that Kransnow's departure would make Coles a direct report to Lewis may have been the reason for Coles' resignation from solutions.

Anxiety & Job Insecurity: Worry and also instability can be determined as 2 significant worries that Lewis would be dealing with particularly as the merging has actually currently be terminated as well as two senior execs of the advertising and marketing department would be leaving. The entire duty of the department would certainly be dropping on Lewis's shoulders that would not simply supervise of brining regarding a cultural change yet would certainly likewise need to confirm herself in her new role.

Inappropriate Administration Style of Leader: Lewis's monitoring style and its incompatibility with the advertising and marketing department's role can likewise be seen as an OB difficulty particularly as she has actually been used to managing concerns in the procedures department where employees are instructed to focus on procedures and get them. The advertising and marketing division on the other hand can be seen as a team of people that are utilized to being nurtured by Krasnow who concentrated much more on output than procedures.

Interdepartmental Arguments: Interdepartmental differences in between 3 divisions, advertising, merchandizing and also operations respectively over the allotment of the advertising mix can be recognized as one more OB issue. Although the marketing department does not share the very same vision as the various other two departments regarding the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and also operations divisions do not concur over the marketing mix appropriation amongst one another either.

Disintegration in Advertising Division: Disintegration between the marketing and advertising departments can be recognized as an additional OB problem which could require additional focus. The truth that the advertising and marketing areas in the advertising division are separated is stopping both departments from gaining from each various other's experience and competence. Assimilation of advertising and marketing with retailing and procedures would certainly become more difficult if the marketing department itself is broken down which can be another possible OB issue.

Mgm Mirages Bid For Mandalay Resort Group B Communicating During The Merger Process Analysis

Various theories have been made use of to clarify the situations to obtain more quality about the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that staffs are easy as well as careless, have little aspiration as well as withstand adjustment. The tough version of this concept highlighted threat, tight controls, hazards and penalties. Gradually it creates reduced performance, refined sabotage and also competition (Bargain, 2003). The circumstance at Mgm Mirages Bid For Mandalay Resort Group B Communicating During The Merger Process 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 better disposition of the administration in the direction of Theory X. According to McGregor's advocated sight, which he called Theory Y, the necessary task of the administration is to arrange business problems to make sure that people can attain their own goals best by routing their initiatives towards organizational rewards. If individuals find no contentment in their work, the monitoring would have little choice but to rely on theory X as well as exterior control (Deal, 2003). Also while examining Lewis's monitoring design, theory X might have appropriated in the procedures division to some extent however the Advertising department would require dependence on Concept Y so as to get the creative thinking and also creativity from the groups.

Tuckman's Team effort Concept: As for Lewis's concern about bringing consistency in between the advertising and marketing division is concerned, this would at first bring about conflict as talked about by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, throughout the preliminary stage of group growth, individuals may not bond, as they are hectic locating their location in the team. By combining the marketing and advertising division's work, there might be the same first disconnect which could lead to the 2nd phase of 'storming' where the groups test one another. Nevertheless, it is just throughout the third phase or 'norming' when they would certainly collaborate to share concepts prior to the group can cause harmony in the 4th stage 'performing'.

Bridges' Shift Version: According To William Bridge's theory (appendix 4), individuals are rather uncomfortable with adjustment, which is obvious by the circumstance at Mgm Mirages Bid For Mandalay Resort Group B Communicating During The Merger Process The situation can be viewed as a normal course of life if is researched based on Bridge's theory where he describes that individuals experience three phases of change when they experience modification. 'End, losing and Releasing', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When individuals are presented with modification, they go into phase one therefore there might be feelings like despair, unpredictability, disappointment, temper, worry, rejection and disorientation.The circumstance at the advertising department of Mgm Mirages Bid For Mandalay Resort Group B Communicating During The Merger Process is similar so Lewis can obtain comfortable with the idea that it is not phenomenal habits. In the 2nd phase, there may be a requirement to bridge the void in between the brand-new and old culture so Lewis might need to face this challenge once Krasnow leaves. There might be reduced morale as well as low productivity at this stage which ought to not be taken as a setback. It is throughout this stage that Lewis will certainly need to offer advice to the department so that they can discover an orientation. It can be seen exactly how Krasnow has already made this change much easier by making Lewis obtain associated with the division a year before his actual departure. According to Bridges' Version, phase 3 will cause openness to understanding, High power and also dedication as individuals will certainly accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has reviews the value of 'security needs as being a reduced degree requirement of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel safe and also out of threat' is at the second level of requirements. Prior to a staff member can be made to develop psychologically, he requires to have his 'Physical 'and 'Safety' needs met.

SWOT Analysis for Mgm Mirages Bid For Mandalay Resort Group B Communicating During The Merger Process Case Study

Ramification of Analysis.

The OB analysis has actually considered different concepts to recognize how to handle the present situation handy. The following three choices have actually been recommended to help Lewis take care of the organizational difficulties in the marketing division. Each of these alternatives has been recommended for relieving the change required to bring the advertising department in accordance with the demands of the market and also for making the cultural adjustment that would certainly adhere to when the current leader leaves.

Integration of marketing and advertising features. Dividing Adverting and also Production features. Assimilation of Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merger days has competence in business-to-business advertising along with firm and retail advertising and marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing and also advertising features.

The benefit of this method is that it will certainly integrate both features while lowering the need for employing an added source for marketing. In addition to this, Lewis would certainly be heading the marketing department and in any case her substitute would certainly be needed for the current duty that she is doing. The downside of this alternative is that external hiring may bring about resentment from internal workers who might be looking at the placement of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and Production: Provided the affordable pressures and top quality job needed from the ad agency, it is recommended that Lewis must permit the production unit to be a different feature from the advertising system. Considering that a lot of ad agency had these 2 features as separate devices, it makes more sense to adhere to the standard. Along with this, both features might be able to concentrate on their core turns on a lot more effectively. The downside of this approach would certainly be that added prices would certainly have to be birthed for setting up different production functions. A production head may have to be worked with which could raise expenses for the organization.

Assimilation of Advertising with Operations: Since Lewis is already taking care of the marketing and procedures divisions simultaneously; it makes sense to incorporate the two functions since she has actually been effectively taking care of both ends. The reality that Lewis has to adapt her administration design for the advertising division recommends that these two divisions would certainly be culturally varied.


An evaluation of the 3 alternatives indicates that assimilation of advertising and also procedures would not be a feasible step due to the huge distinctions in between the two divisions regardless of the truth that presently Lewis is taking care of both. While separation of the manufacturing feature may have been a desirable action for the marketing department, the fact that it would certainly suggest placing a third function under Lewis's wing suggests this need to be stayed clear of.

Action Plan.
Lewis will take over the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

Production function will certainly stay component of advertising and marketing under marketing function.

Lewis will separate herself from operations.

A democratic leadership style with employee empowerment will be used in advertising and marketing department.

Open door policy as well as focus on cross department interaction will certainly be focused on getting rid of dissonance.

Contingency strategy.

If the assimilation does not work out as intended, a contingency plan would adhere to which would divide the manufacturing function from the marketing function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising department without an SVP. In that case the production function will certainly be divided by placing it under an SVP manufacturing.