Microsoft Financial History Case Study Help


Home >> Harvard >> Microsoft Financial History >>

Microsoft Financial History Case Study Analysis

Background and Facts

Microsoft Financial History a workplace materials retailer for tiny and also moderate sized services has just recently been involved in preparing for a merging with its rival Home Deport, which has influenced efficiency levels in departmentswith the elderly manager associated with lawful problems put forth by the government Profession Commission. With the Advertising and marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the near future. With challenges in the form of a prospective social adjustment and also low worker morale, the company wants a total reengineering effort at the marketing department.

Problem Statement
Porter's 5 Forces Analysis
The potential social change at the advertising department of Microsoft Financial History is raising unpredictability in the workplace bring about numerous difficulties for the Jeannie Lewis that 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 considering that Stapes Inc. had to desert its plans of combining with Office Deport after the Federal Profession Compensation's treatment at the same time. Given the reality that the shop has a global existence 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 strategic goals. Federal Profession Payment's antitrust suit versus the merger occupied important time of the organization's senior monitoring recommending that 'political' factors can have significant implications for a worldwide service.

Economic Factors: Economic factors such as the development of local business in the global scenario recommend that Microsoft Financial History is prospering in a setting where there is potential growth of companies. Fact that shop consumers are primarily looking for workplace materials for home offices suggests that the market has an increasing fad of entrepreneurs and house based organisations.

Social factors: Social trends in the economy reveal that consumers are searching for ease as well as attractive rates. Market research shows how the consumer for Microsoft Financial History does not have awareness concerning locating options which can use a mix of benefit as well as inexpensive.

Technological factors: Modern technology plays an important function in Microsoft Financial History's service technique specifically as the company is piloting Modern technology facilities which would use technology sales and support in the kind of memory upgrades, outer setups. (Recap of INSECT in appendix 2).

OB Issues and also Symptoms.

A number of underlying Business Habits issues can be seen in Microsoft Financial History's case as highlighted in this area.

Apprehensions concerning cultural change: There is uneasiness regarding a cultural modification that would certainly happen once Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising with the majority of the employee currently revealing unhappiness over this possible relocation. This expected adjustment has actually produced anxiety in the office which has actually been paired with the past tension of preparing the company for a potential merger with Home Deport.
Pest Analysis
Difficult Work Setting for Newcomers: There is shortage of personnel that can match the difficult setting of a hectic organization. Not only does this bring about difficulty in finding the right individuals, it places anxiety on brand-new hires as can not hold up against the speed and also pressure that the company expects them to birth.

Double Coverage Lines: Newcomers find this organizational culture troublesome and difficult to handle particularly as dotted line connections are suggested to be weaker in general and objective setting and also performance assessment is still done by the strong line supervisor. This indicates that novices can lose quality concerning their respective functions and goals especially as populated line coverage does not keep them in straight communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles despite the fact that it had actually been guessed that the last would take Krasnow's position came as a strike to her spirits. Lewis may have been capable as well as suitable for the job yet the truth that Kransnow's separation would make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Concern & Work Instability: Concern as well as instability can be determined as two major problems that Lewis would be managing especially as the merger has actually currently be cancelled and also 2 elderly execs of the advertising and marketing division would be leaving. The whole responsibility of the division would certainly be falling on Lewis's shoulders that would certainly not just supervise of brining concerning a cultural change but would certainly additionally need to prove herself in her brand-new duty.

Inappropriate Administration Style of Leader: Lewis's administration design and its conflict with the advertising division's function can likewise be seen as an OB difficulty specifically as she has actually been made use of to taking care of problems in the procedures department where workers are educated to concentrate on procedures as well as obtain them. The advertising and marketing department on the other hand can be viewed as a team of people that are made use of to being nurtured by Krasnow who concentrated more on output than processes.

Interdepartmental Disagreements: Interdepartmental disagreements in between three departments, advertising and marketing, merchandizing as well as operations specifically over the allowance of the marketing mix can be identified as one more OB issue. The advertising department does not share the exact same vision as the other 2 divisions pertaining to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and operations divisions do not agree over the marketing mix allowance amongst one an additional either.

Fragmentation in Advertising Department: Fragmentation in between the marketing and advertising departments can be determined as one more OB problem which could need additional attention. The fact that the advertising and marketing areas in the marketing division are separated is protecting against both departments from obtaining from each other's experience and know-how. Assimilation of marketing with retailing as well as operations would come to be more difficult if the marketing department itself is disintegrated which can be an additional potential OB problem.

Microsoft Financial History Analysis

Various theories have actually been made use of to clarify the scenarios to get further clearness concerning the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that juniors are passive and careless, have little ambition and also stand up to change. The tough version of this concept stressed threat, tight controls, dangers and also penalties. In time it creates reduced performance, refined sabotage and also competition (Deal, 2003). The situation at Microsoft Financial History is not completely adhering to Theory X, it can be seen that new hires are finding this environment rather difficult which may eventually lead to a higher inclination of the management towards Concept X. According to McGregor's promoted view, which he called Concept Y, the vital job of the administration is to arrange business problems so that people can accomplish their own objectives best by directing their initiatives towards organizational incentives. If individuals locate no contentment in their job, the management would certainly have little option however to depend on concept X as well as external control (Deal, 2003). Even while assessing Lewis's administration style, theory X may have been suitable in the operations division somewhat however the Advertising and marketing division would certainly require dependence on Theory Y in order to get the creativity as well as creativity from the teams.

Tuckman's Team effort Concept: As much as Lewis's worry about bringing harmony between the advertising and marketing and marketing department is worried, this would at first lead to clash as discussed by Bruce Tuckman in his 'Teamwork Theory'. By integrating the advertising and marketing and advertising department's job, there might be the same first detach which could lead to the 2nd phase of 'storming' where the teams challenge one an additional.

Bridges' Shift Version: As per William Bridge's theory (appendix 4), people are quite uneasy with change, which is evident by the scenario at Microsoft Financial History The situation can be viewed as a regular training course of life if is examined based on Bridge's theory where he explains that people experience 3 phases of transition when they experience adjustment. 'Closing, shedding and Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people are presented with modification, they go into stage one and so there may be emotions like sadness, uncertainty, stress, rage, fear, rejection as well as disorientation.The circumstance at the advertising division of Microsoft Financial History is comparable so Lewis can obtain comfy with the concept that it is not amazing habits. In the 2nd stage, there may be a requirement to connect the void in between the brand-new as well as old society so Lewis may have to face this challenge when Krasnow leaves. There might be low morale as well as low performance at this phase which should not be taken as an obstacle. It is throughout this phase that Lewis will have to offer assistance to the division to ensure that they can discover a sense of direction. It can be seen how Krasnow has already made this change easier by making Lewis get associated with the department a year prior to his real separation. As per Bridges' Version, stage 3 will produce openness to discovering, High energy and also commitment as individuals will certainly welcome the change (Bridges, 2004).
Vrio Analysis
Maslow's Requirement power structure: The OB issue pertaining to insecurity at the workplace has been set off firstly by the change in management as well as second of all by the truth that the merger will certainly no longer be initiated. Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has discusses the value of 'protection requires as being a lower degree need of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the need to feel protected as well as untouched' goes to the second degree of demands. Before a staff member can be made to create psychologically, he requires to have his 'Physiological 'as well as 'Safety' requires met. This indicates that unless the workers are made to feel safe and secure regarding their existing employment condition in Microsoft Financial History they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Microsoft Financial History Case Study

Ramification of Analysis.

The OB analysis has considered numerous theories to recognize just how to handle the current circumstance handy. The following 3 alternatives have been suggested to aid Lewis manage the organizational obstacles in the advertising and marketing department. Each of these alternatives has been proposed for reducing the transition needed to bring the advertising and marketing division in accordance with the needs of the marketplace as well as for making the cultural change that would certainly adhere to as soon as the current leader leaves.

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

Assessment of Alternatives.

Judith Shapiro who has earlier been interviewed by Lewis during the earlier merging days has proficiency in business-to-business marketing along with firm as well as retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to deal with both advertising and also advertising and marketing features.

The advantage of this strategy is that it will certainly integrate the two features while lowering the need for working with an added source for advertising and marketing. Lewis would certainly be heading the advertising and marketing division and also in any case her replacement would be required for the current role that she is performing. The negative aspect of this option is that exterior hiring may produce animosity from inner workers that may be eying the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and also Production: Offered the competitive pressures as well as excellent quality work required from the advertising agency, it is advised that Lewis must permit the production unit to be a different function from the advertising and marketing device. Given that most advertising agencies had these two functions as separate systems, it makes more feeling to comply with the norm. Along with this, both features may have the ability to focus on their core activates a lot more successfully. Nonetheless, the drawback of this method would be that extra costs would certainly have to be birthed for establishing separate production functions. In addition to this, a manufacturing head might have to be hired which can raise overheads for the organization.

Integration of Marketing with Workflows: Since Lewis is currently taking treatment of the advertising and marketing and also procedures divisions concurrently; it makes feeling to incorporate the two functions because she has been successfully taking care of both ends. The reality that Lewis has to adapt her management design for the marketing division suggests that these two departments would certainly be culturally diverse.


An evaluation of the 3 options shows that combination of marketing as well as operations would not be a possible move as a result of the huge differences in between both divisions despite the fact that currently Lewis is dealing with both. While splitting up of the production function may have been a positive move for the marketing division, the reality that it would certainly suggest positioning a third feature under Lewis's wing means this need to be stayed clear of. The assimilation of the advertising and marketing department is the most effective option in terms of obtaining the ideal arise from the division. An activity plan for this alternative is discussed below.

Activity Plan.
Lewis will take over the function 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 advertising and marketing.

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

Lewis will separate herself from operations.

A democratic management design with staff member empowerment will certainly be utilized in advertising and marketing division.

Open door policy and focus on cross department communication will be aimed at getting rid of dissonance.

Contingency strategy.

If the integration does not exercise as planned, a contingency strategy would certainly follow which would separate the production feature from the marketing function to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising division without an SVP. Because case the manufacturing feature will definitely be separated by positioning it under an SVP manufacturing.