Mike Mayo Takes On Citigroup A Case Study Analysis


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Mike Mayo Takes On Citigroup A Case Study Solution

Background and Facts

Mike Mayo Takes On Citigroup A a workplace supplies store for little and moderate sized businesses has actually recently been associated with planning for a merging with its rival House Deport, which has impacted effectiveness levels in departmentswith the senior supervisor associated with lawful issues presented by the government Profession Payment. With the Advertising Head putting forward 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 role in the near future. With difficulties in the type of a possible cultural modification and also reduced staff member spirits, the organization is in need of a complete reengineering initiative at the advertising division.

Problem Statement
Porter's 5 Forces Analysis
The potential cultural change at the advertising division of Mike Mayo Takes On Citigroup A is enhancing uncertainty in the working environment bring about 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 function in influencing strategic decisions considering that Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Profession Compensation's intervention at the same time. Offered the reality that the store has an international existence with branches in UK, U.S.A., Canada and Germany, political factors in each of these nations may be able to influence performance or strategic goals. Federal Profession Compensation's antitrust suit versus the merging took up useful time of the organization's elderly administration recommending that 'political' factors can have significant effects for a worldwide service.

Economic Factors: Economic factors such as the emergence of small companies in the global circumstance recommend that Mike Mayo Takes On Citigroup A is thriving in a setting where there is prospective growth of services. In addition to this, fact that store consumers are mostly searching for office materials for office suggests that the marketplace has a rising fad of entrepreneurs and also home businesses.

Social factors: Social patterns in the economic situation show that consumers are trying to find ease in addition to eye-catching costs. Marketing research demonstrates how the client for Mike Mayo Takes On Citigroup A lacks recognition regarding locating options which can use a mix of benefit and also inexpensive.

Technical factors: Innovation plays a crucial role in Mike Mayo Takes On Citigroup A's business approach especially as the organization is piloting Innovation centers which would use technology sales and support in the type of memory upgrades, outer installations. (Summary of PEST in appendix 2).

OB Issues as well as Effects.

Several underlying Organizational Habits concerns can be seen in Mike Mayo Takes On Citigroup A's case as highlighted in this section.

Uneasiness about social adjustment: There is uneasiness about a cultural modification that would take place as soon as Todd Krasnow leaves from his position as the Exec Vice President of Marketing with the majority of the team member currently showing discontent over this possible move. This expected modification has produced tension in the office which has actually been combined with the previous tension of preparing the company for a potential merger with House Deport.
Pest Analysis
Difficult Work Environment for Newcomers: There is lack of personnel that can match the stressful atmosphere of a busy company. Not only does this result in problem in discovering the right people, it places stress on brand-new hires as can not hold up against the rate and pressure that the company expects them to bear.

Dual Reporting Lines: Novices locate this organizational society difficult and difficult to cope with especially as populated line partnerships are suggested to be weaker in general and also objective setting and also efficiency analysis is still done by the strong line manager. This suggests that beginners might shed clarity concerning their respective functions and goals particularly as populated line reporting does not keep them in direct interaction with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had been guessed that the last would take Krasnow's placement came as an impact to her morale. Lewis might have been capable as well as appropriate for the job yet the truth that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Worry & Job Instability: Worry and instability can be determined as 2 major worries that Lewis would be managing specifically as the merging has currently be terminated and two senior execs of the advertising department would certainly be leaving. The whole responsibility of the department would be dropping on Lewis's shoulders who would not simply supervise of brining concerning a social change but would also have to prove herself in her new duty.

Incompatible Management Design of Leader: Lewis's management style and its incompatibility with the advertising and marketing division's duty can also be seen as an OB obstacle specifically as she has been used to managing problems in the procedures department where personnel are instructed to focus on procedures and also obtain them. The advertising division on the other hand can be seen as a team of people that are used to being supported by Krasnow who focused more on output than procedures.

Interdepartmental Disagreements: Interdepartmental disagreements between 3 divisions, advertising and marketing, merchandizing and also operations specifically over the allowance of the advertising mix can be recognized as one more OB concern. Although the marketing department does not share the same vision as the other two divisions pertaining to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and procedures departments do not concur over the advertising and marketing mix allowance amongst one another either.

Disintegration in Advertising And Marketing Department: Fragmentation between the marketing and advertising departments can be identified as one more OB problem which might require further attention. The reality that the advertising and marketing sections in the advertising division are detached is protecting against both departments from acquiring from each various other's experience and proficiency. Combination of advertising and marketing with merchandising as well as procedures would come to be more difficult if the marketing division itself is disintegrated which can be one more possible OB worry.

Mike Mayo Takes On Citigroup A Analysis

Numerous concepts have actually been made use of to discuss the conditions to obtain additional clarity regarding the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers think that staffs are passive and lazy, have little aspiration and also withstand modification. The scenario at Mike Mayo Takes On Citigroup A is not totally following Theory X, it can be seen that brand-new hires are discovering this atmosphere rather stressful which may ultimately lead to a higher disposition of the monitoring in the direction of Theory X. Also while evaluating Lewis's monitoring design, concept X might have been ideal in the procedures department to some level yet the Marketing division would certainly need reliance on Theory Y in order to get the creativity as well as creativity from the teams.

Tuckman's Synergy Concept: As far as Lewis's issue concerning bringing consistency between the marketing and advertising department is concerned, this would initially bring about clash as gone over by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, during the first phase of group development, individuals may not bond, as they are active finding their area in the team. By incorporating the marketing and advertising department's work, there may coincide initial separate which might result in the 2nd stage of 'storming' where the groups challenge one another. It is just during the third stage or 'norming' when they would come with each other to share concepts before the group can bring about synergy in the 4th phase 'performing'.

Bridges' Shift Model: As per William Bridge's concept (appendix 4), people are fairly awkward with change, which is evident by the scenario at Mike Mayo Takes On Citigroup A The scenario can be viewed as a normal course of life if is studied based on Bridge's concept where he explains that people undergo three phases of change when they experience change. 'Closing, losing and also Releasing', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people are presented with adjustment, they go into phase one therefore there might be emotions like despair, uncertainty, frustration, temper, concern, denial as well as disorientation.The scenario at the advertising division of Mike Mayo Takes On Citigroup A is similar so Lewis can get comfortable with the concept that it is not remarkable behavior. In the 2nd phase, there may be a requirement to connect the space between the brand-new and old society so Lewis may have to face this challenge once Krasnow leaves. There may be reduced morale and reduced efficiency at this phase which need to not be taken as a problem. It is throughout this phase that Lewis will need to provide assistance to the department to make sure that they can find an orientation. It can be seen just how Krasnow has actually already made this transition less complicated by making Lewis obtain associated with the department a year before his real departure. According to Bridges' Model, phase three will bring about openness to learning, High energy and dedication as individuals will certainly accept the change (Bridges, 2004).
Vrio Analysis
Maslow's Need pecking order: The OB problem related to instability at the office has been activated firstly by the adjustment in administration and also secondly by the fact that the merging will no more be initiated. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has talks about the value of 'protection requires as being a lower level requirement of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel safe as well as untouched' is at the 2nd degree of requirements. Before a worker can be made to create mentally, he requires to have his 'Physical 'as well as 'Safety' requires satisfied. This suggests that unless the personnel are made to really feel protected concerning their current work condition in Mike Mayo Takes On Citigroup A they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Mike Mayo Takes On Citigroup A Case Study

Ramification of Analysis.

The OB analysis has considered numerous concepts to understand how to manage the current circumstance at hand. The following three options have actually been suggested to aid Lewis deal with the business difficulties in the advertising and marketing department. Each of these choices has actually been suggested for easing the shift needed to bring the advertising and marketing department in line with the demands of the market and also for making the cultural change that would certainly comply with when the present leader leaves.

Integration of advertising and marketing functions. Separating Adverting and also Manufacturing functions. Integration of Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis during the earlier merger days has competence in business-to-business advertising along with company as well as retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to deal with both marketing and also marketing functions.

The benefit of this technique is that it will certainly integrate both features while minimizing the demand for employing an additional source for marketing. Along with this, Lewis would certainly be heading the marketing division and also in any case her replacement would be needed for the existing role that she is performing. The disadvantage of this choice is that outside hiring might produce bitterness from internal employees who may be eying the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Manufacturing: Given the competitive stress and high top quality job called for from the marketing company, it is advised that Lewis should enable the manufacturing device to be a separate function from the advertising and marketing device. Because many marketing firms had these 2 functions as different devices, it makes even more sense to adhere to the norm.

Combination of Advertising with Workflows: Because Lewis is already taking care of the advertising and also operations departments at the same time; it makes feeling to incorporate the two functions considering that she has actually been efficiently taking treatment of both ends. The truth that Lewis has to adapt her administration style for the advertising and marketing department suggests that these two divisions would certainly be culturally varied.


An evaluation of the three options suggests that integration of advertising and operations would certainly not be a viable step because of the vast differences in between both divisions although that currently Lewis is managing both. While separation of the production feature might have been a favorable step for the advertising and marketing division, the reality that it would certainly indicate putting a 3rd feature under Lewis's wing implies this ought to be stayed clear of. The assimilation of the advertising and marketing division is the best option in terms of getting the ideal results from the department. An activity plan for this choice is gone over listed below.

Activity Strategy.
Lewis will certainly take control of the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

Production feature will certainly remain component of marketing under advertising and marketing function.

Lewis will certainly divide herself from operations.

A democratic leadership style with employee empowerment will certainly be made use of in marketing department.

Open door policy as well as focus on cross departmental communication will certainly be focused on eliminating dissonance.

Contingency plan.

If the assimilation does not work out as planned, a contingency strategy would follow which would certainly separate the production function from the advertising and marketing function to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising department without an SVP. Because case the manufacturing feature will certainly be separated by putting it under an SVP production.