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Mike Mayo Takes On Citigroup A Case Study Solution

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Background and Facts

Mike Mayo Takes On Citigroup A an office materials merchant for small as well as medium sized companies has recently been associated with preparing for a merger with its rival Residence Deport, which has actually influenced effectiveness degrees in departmentswith the elderly manager associated with lawful complications put forth by the government Trade Commission. With the Advertising Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the present head of operations has actually been asked to take the role in the future. With challenges in the form of a possible cultural modification and also low staff member morale, the company is in need of a complete reengineering effort at the marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The potential cultural change at the marketing department of Mike Mayo Takes On Citigroup A is boosting unpredictability in the working environment bring about different obstacles for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in influencing tactical decisions since Stapes Inc. had to desert its plans of combining with Office Deport after the Federal Trade Payment's treatment in the process. Provided the reality that the store has an international presence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations may be able to influence efficiency or critical goals. Federal Trade Payment's antitrust match versus the merger occupied important time of the company's elderly administration suggesting that 'political' factors can have significant implications for an international business.

Economic Factors: Economic factors such as the appearance of local business in the worldwide scenario recommend that Mike Mayo Takes On Citigroup A is thriving in a setting where there is possible growth of companies. Fact that shop consumers are primarily looking for workplace products for residence workplaces recommends that the market has an increasing pattern of business owners and residence based organisations.

Social factors: Social fads in the economic situation reveal that clients are looking for ease along with attractive prices. Market research shows how the client for Mike Mayo Takes On Citigroup A does not have awareness concerning discovering solutions which can offer a mix of benefit and also inexpensive.

Technological factors: Technology plays a vital function in Mike Mayo Takes On Citigroup A's service method particularly as the company is piloting Technology facilities which would provide technology sales and also assistance in the kind of memory upgrades, peripheral setups. (Recap of INSECT in appendix 2).

OB Issues and also Effects.

Several underlying Organizational Actions issues can be seen in Mike Mayo Takes On Citigroup A's case as highlighted in this area.

Worries regarding cultural adjustment: There is uneasiness regarding a cultural modification that would take place once Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising with most of the team member already showing discontent over this potential move. This predicted modification has developed anxiety in the workplace which has been combined with the previous tension of preparing the company for a possible merging with House Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is shortage of employees that can match the stressful atmosphere of a busy company. Not just does this cause trouble in finding the right individuals, it places tension on brand-new hires as can not endure the pace and stress that the company anticipates them to birth.

Double Reporting Lines: Beginners discover this business society cumbersome as well as hard to cope with particularly as dotted line relationships are suggested to be weak as a whole and also objective setting and performance examination is still done by the strong line manager. This suggests that novices might shed clarity concerning their respective functions and also objectives particularly as dotted line reporting does not keep them in direct interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had been speculated that the last would take Krasnow's setting came as an impact to her spirits. Lewis may have been qualified as well as appropriate for the task yet the truth that Kransnow's separation would make Coles a straight report to Lewis may have been the factor for Coles' resignation from services.

Concern & Work Insecurity: Concern and also instability can be recognized as 2 significant worries that Lewis would be dealing with especially as the merger has now be terminated and 2 elderly executives of the advertising division would be leaving. The entire obligation of the department would be dropping on Lewis's shoulders who would not just supervise of brining concerning a social adjustment but would certainly likewise have to show herself in her new duty.

Inappropriate Management Style of Leader: Lewis's management style and also its incompatibility with the advertising and marketing department's function can additionally be seen as an OB difficulty specifically as she has been used to taking care of concerns in the operations division where personnel are shown to concentrate on procedures and get them. The marketing department on the other hand can be viewed as a group of people who are utilized to being supported by Krasnow that concentrated extra on outcome than procedures.

Interdepartmental Differences: Interdepartmental disagreements between three divisions, advertising and marketing, merchandizing and procedures specifically over the allocation of the advertising and marketing mix can be identified as one more OB problem. The marketing division does not share the same vision as the other two divisions pertaining to the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and also operations divisions do not concur over the advertising mix appropriation among one an additional either.

Disintegration in Advertising And Marketing Division: Disintegration in between the marketing and advertising departments can be determined as an additional OB problem which can require further interest. The truth that the advertising and marketing sections in the advertising department are disconnected is protecting against both departments from getting from each various other's experience and knowledge. Integration of advertising and marketing with merchandising and operations would come to be more difficult if the marketing department itself is disintegrated which can be an additional possible OB issue.

Mike Mayo Takes On Citigroup A Analysis

Various concepts have been utilized to describe the circumstances to obtain further quality concerning the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers believe that staffs are easy and lazy, have little aspiration and stand up to adjustment. The hard variation of this concept highlighted browbeating, tight controls, dangers as well as punishments. Over time it generates low performance, refined sabotage and also rivalry (Bargain, 2003). The situation at Mike Mayo Takes On Citigroup A is not entirely following Theory X, it can be seen that brand-new hires are locating this setting rather difficult which may at some point lead to a better inclination of the management in the direction of Theory X. As per McGregor's supported sight, which he called Theory Y, the important task of the management is to prepare organizational problems so that individuals can achieve their very own objectives best by directing their efforts in the direction of business benefits. If people discover no contentment in their job, the monitoring would certainly have little choice but to count on concept X and exterior control (Deal, 2003). Also while evaluating Lewis's administration design, theory X may have appropriated in the operations division to some extent but the Advertising department would certainly call for dependence on Concept Y so as to get the creativity and originality from the teams.

Tuckman's Team effort Theory: Regarding Lewis's issue regarding bringing harmony in between the advertising and marketing division is concerned, this would originally cause conflict as reviewed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, during the first phase of team development, individuals might not bond, as they are hectic locating their place in the team. By incorporating the advertising and marketing division's work, there may be the same preliminary detach which could cause the second stage of 'storming' where the groups challenge one another. It is just during the third phase or 'norming' when they would certainly come with each other to share suggestions prior to the group can bring around synergy in the 4th phase 'doing'.

When people are offered with modification, they enter stage one as well as so there may be feelings like sadness, uncertainty, frustration, anger, concern, rejection and also disorientation.The circumstance at the marketing division of Mike Mayo Takes On Citigroup A is comparable so Lewis can get comfortable with the idea that it is not extraordinary behavior. It is during this stage that Lewis will certainly have to offer guidance to the department so that they can locate a feeling of instructions. It can be seen exactly how Krasnow has actually currently made this transition much easier by making Lewis obtain included in the division a year prior to his actual departure.
Vrio Analysis
Maslow's Need pecking order: The OB issue related to insecurity at the office has actually been activated to start with by the change in management as well as secondly by the truth that the merger will certainly no longer be started. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has talks about the value of 'safety and security requires 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 demand to feel secure and also untouched' is at the second level of needs. Before a worker can be made to develop mentally, he requires to have his 'Physiological 'and also 'Safety and security' requires met. This indicates that unless the personnel are made to feel secure about their existing work condition in Mike Mayo Takes On Citigroup A they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Mike Mayo Takes On Citigroup A Case Study



Effects of Analysis.

The OB analysis has looked at different concepts to understand how to cope with the present situation at hand. The adhering to 3 alternatives have actually been recommended to help Lewis manage the organizational difficulties in the advertising department. Each of these choices has been recommended for easing the shift required to bring the advertising and marketing department in line with the requirements of the market as well as for making the cultural adjustment that would adhere to as soon as the current leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and also Production features. Integration of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Combination of Advertising & Advertising And Marketing Functions: The in-house marketing agency of Mike Mayo Takes On Citigroup A is currently toughness for the company in terms of conserving up on overheads connected to marketing and promotion. Given that no brand-new recruitment has been done after Bridget Cole's departure with the reporting line being directly designated to Krasnow for the advertising and marketing function, this is a positive possibility for incorporating the advertising and marketing features. Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merger days has proficiency in business-to-business marketing in addition to company and retail advertising and marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to deal with both marketing and advertising features.

The advantage of this method is that it will certainly incorporate the two functions while minimizing the need for employing an extra resource for advertising and marketing. In addition to this, Lewis would be heading the advertising and marketing division as well as regardless her replacement would be needed for the existing duty that she is doing. The disadvantage of this option is that external hiring might bring about resentment from internal personnel that might be looking at the setting of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Production: Given the competitive stress and also high quality work required from the advertising and marketing agency, it is recommended that Lewis should enable the manufacturing unit to be a separate feature from the advertising and marketing device. Since most advertising firms had these 2 features as different devices, it makes even more sense to comply with the norm.

Integration of Marketing with Procedures: Because Lewis is currently dealing with the advertising and procedures divisions all at once; it makes sense to incorporate the two features since she has actually been efficiently dealing with both ends. The reality that both divisions currently have major distinctions over appropriation of resources suggests that this combination might be able to produce harmony particularly as Lewis would be heading both ends.However there are various negative aspects of this action particularly as it would place way too much burden over Lewis's shoulders. The fact that Lewis needs to adapt her monitoring design for the advertising department recommends that these 2 departments would be culturally varied. Lewis might not be able to use one kind of leadership style to both departments which might result in inefficiency in either one of the two features.

Suggestion.



An analysis of the 3 alternatives shows that assimilation of marketing as well as operations would certainly not be a feasible relocation due to the vast differences in between the two departments in spite of the reality that presently Lewis is managing both. While splitting up of the manufacturing function may have been a desirable action for the marketing department, the truth that it would certainly mean positioning a third feature under Lewis's wing implies this need to be prevented.

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

Advertising and Marketing functions would be combined.

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

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

Lewis will certainly separate herself from procedures.

An autonomous management design with worker empowerment will be used in marketing department.

Open up door policy and emphasis on cross department communication will certainly be aimed at getting rid of discord.

Backup strategy.

If the assimilation does not exercise as prepared, a contingency plan would certainly comply with which would divide the production feature from the advertising function to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising division without an SVP. In that case the production function will definitely be divided by putting it under an SVP production.