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Molycorp Morgan Brothers Reverse Convertible Notes C Case Study Analysis

Background and Facts

Molycorp Morgan Brothers Reverse Convertible Notes C an office supplies seller for little and average sized businesses has lately been involved in preparing for a merging with its rival House Deport, which has actually impacted effectiveness levels in departmentswith the elderly supervisor involved in legal complications presented by the federal Profession Payment. With the Advertising Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the future. With difficulties in the form of a possible cultural change and reduced employee spirits, the organization wants a complete reengineering initiative at the advertising and marketing department.

Problem Statement

The possible cultural change at the advertising department of Molycorp Morgan Brothers Reverse Convertible Notes C is boosting uncertainty in the working environment leading to numerous obstacles 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 significant function in impacting strategic decisions considering that Stapes Inc. needed to desert its strategies of combining with Office Deport after the Federal Trade Payment's intervention at the same time. Offered the truth that the shop has a global existence with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations may have the ability to affect performance or critical objectives. Federal Profession Commission's antitrust match versus the merging occupied beneficial time of the company's senior administration recommending that 'political' factors can have major implications for a worldwide organisation.

Economic Factors: Economic factors such as the appearance of local business in the worldwide situation recommend that Molycorp Morgan Brothers Reverse Convertible Notes C is thriving in a setting where there is potential development of services. Along with this, reality that store customers are mostly searching for workplace supplies for office recommends that the market has an increasing pattern of business owners as well as online services.

Social factors: Social trends in the economy show that consumers are searching for benefit as well as eye-catching costs. Marketing research demonstrates how the customer for Molycorp Morgan Brothers Reverse Convertible Notes C lacks awareness regarding discovering remedies which can use a mix of comfort and also inexpensive.

Technological factors: Modern technology plays a vital duty in Molycorp Morgan Brothers Reverse Convertible Notes C's organisation approach particularly as the company is piloting Technology centers which would offer innovation sales as well as support in the form of memory upgrades, peripheral installments. (Summary of BUG in appendix 2).

OB Issues and also Manifestations.

Several underlying Business Actions issues can be seen in Molycorp Morgan Brothers Reverse Convertible Notes C's case as highlighted in this section.

Apprehensions concerning cultural modification: There is uneasiness concerning a social change that would certainly happen once Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Marketing with the majority of the staff members currently revealing unhappiness over this potential relocation. This anticipated adjustment has created anxiety in the work environment which has actually been coupled with the previous tension of preparing the firm for a possible merger with Residence Deport.

Difficult Work Setting for Newcomers: There is lack of personnel that can match the stressful atmosphere of a busy organization. Not just does this lead to difficulty in finding the appropriate people, it places stress and anxiety on brand-new hires as can not withstand the rate as well as stress that the organization expects them to bear.

Dual Reporting Lines: Newbies locate this organizational society troublesome as well as tough to manage particularly as dotted line partnerships are indicated to be weak generally and also unbiased setup and also performance analysis is still done by the strong line manager. This implies that newcomers could lose quality about their corresponding functions and also goals especially as dotted line coverage does not maintain them in straight communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been guessed that the latter would certainly take Krasnow's position came as a strike to her morale. Lewis might have been qualified and proper for the task yet the fact that Kransnow's departure would make Coles a straight report to Lewis may have been the reason for Coles' resignation from solutions.

Fear & Task Insecurity: Concern as well as instability can be identified as two major worries that Lewis would be dealing with especially as the merging has currently be cancelled and also two senior executives of the advertising and marketing division would certainly be leaving. The entire duty of the department would be dropping on Lewis's shoulders that would not just be in charge of brining about a social adjustment yet would certainly additionally need to prove herself in her new function.

Inappropriate Monitoring Design of Leader: Lewis's administration style and its incompatibility with the advertising and marketing division's duty can additionally be viewed as an OB obstacle especially as she has actually been made use of to managing problems in the operations division where personnel are instructed to concentrate on procedures as well as obtain them right. The advertising and marketing department on the other hand can be viewed as a team of individuals that are used to being nurtured by Krasnow that concentrated a lot more on result than processes.

Interdepartmental Differences: Interdepartmental disputes between 3 departments, advertising, merchandizing as well as operations respectively over the allotment of the advertising and marketing mix can be identified as an additional OB concern. Although the advertising department does not share the exact same vision as the various other two divisions relating to the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and also procedures departments do not agree over the advertising and marketing mix allowance among each other either.

Disintegration in Marketing Department: Fragmentation in between the advertising and marketing divisions can be recognized as one more OB concern which might require more focus. The reality that the marketing and advertising areas in the marketing division are separated is avoiding both divisions from obtaining from each other's experience and knowledge. Integration of advertising with retailing and operations would certainly come to be harder if the advertising and marketing division itself is broken down which can be another possible OB concern.

Molycorp Morgan Brothers Reverse Convertible Notes C Analysis

Numerous concepts have actually been used to explain the conditions to get additional clarity regarding the situation available.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors believe that juniors are easy and lazy, have little ambition as well as withstand change. The scenario at Molycorp Morgan Brothers Reverse Convertible Notes C is not completely following Theory X, it can be seen that brand-new hires are discovering this atmosphere instead stressful which may eventually lead to a higher inclination of the management towards Concept X. Also while assessing Lewis's administration design, concept X may have been appropriate in the procedures department to some degree yet the Advertising division would certainly require reliance on Concept Y in order to obtain the creative thinking and also creativity from the teams.

Tuckman's Synergy Concept: Regarding Lewis's worry about bringing harmony between the advertising and marketing division is concerned, this would at first result in conflict as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, throughout the initial stage of team development, people might not bond, as they are active finding their area in the team. By integrating the marketing and advertising department's job, there may coincide preliminary separate which might lead to the 2nd stage of 'storming' where the teams test one another. It is only during the 3rd stage or 'norming' when they would come with each other to share suggestions prior to the team can bring around synergy in the fourth phase 'executing'.

Bridges' Shift Model: As per William Bridge's concept (appendix 4), individuals are fairly uneasy with change, which is obvious by the circumstance at Molycorp Morgan Brothers Reverse Convertible Notes C The scenario can be viewed as a typical training course of life if is studied based on Bridge's concept where he describes that individuals experience 3 stages of change when they experience change. 'Ending, shedding as well as Releasing', The Neutral Area and 'The New Starting' (Bridges, 2004). When individuals are presented with adjustment, they go into phase one and so there might be feelings like sadness, uncertainty, frustration, rage, worry, rejection and disorientation.The circumstance at the marketing department of Molycorp Morgan Brothers Reverse Convertible Notes C is similar so Lewis can get comfortable with the suggestion that it is not amazing actions. In the 2nd stage, there might be a demand to bridge the gap in between the brand-new and old culture so Lewis may have to face this experience once Krasnow leaves. There may be low morale as well as low productivity at this phase which should not be taken as a setback. It is during this stage that Lewis will certainly need to give support to the department to make sure that they can find an orientation. It can be seen just how Krasnow has currently made this transition easier by making Lewis get associated with the department a year before his real separation. According to Bridges' Version, phase three will certainly produce openness to discovering, High power and dedication as people will certainly welcome the modification (Bridges, 2004).

Maslow's Requirement hierarchy: The OB problem pertaining to insecurity at the work environment has been activated firstly by the adjustment in administration and also secondly by the reality that the merger will no longer be launched. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has goes over the value of 'security requires as being a lower degree need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel secure and also untouched' is at the second level of requirements. Before a staff member can be made to develop emotionally, he requires to have his 'Physical 'and 'Safety' requires satisfied. This indicates that unless the employees are made to feel secure regarding their present employment standing in Molycorp Morgan Brothers Reverse Convertible Notes C they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Molycorp Morgan Brothers Reverse Convertible Notes C Case Study

Implication of Analysis.

The OB analysis has actually taken a look at different theories to recognize just how to manage the current situation handy. The adhering to 3 alternatives have actually been suggested to aid Lewis manage the business challenges in the advertising and marketing division. Each of these options has actually been suggested for easing the transition needed to bring the advertising and marketing division in line with the requirements of the marketplace and for making the cultural adjustment that would follow once the existing leader leaves.

Combination of advertising and marketing features. Separating Adverting and Production features. Assimilation of Advertising with Operations.

Assessment of Alternatives.

Combination of Advertising & Advertising And Marketing Functions: The in-house advertising company of Molycorp Morgan Brothers Reverse Convertible Notes C is already toughness for the company in terms of saving up on expenses related to advertising and also promotion. Considering that no new recruitment has been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the advertising feature, this is a positive chance for integrating the advertising and marketing functions. Judith Shapiro that has earlier been talked to by Lewis during the earlier merging days has proficiency in business-to-business advertising along with company as well as retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both marketing and advertising features.

The advantage of this method is that it will certainly integrate the two features while reducing the requirement for hiring an added resource for advertising and marketing. Along with this, Lewis would certainly be heading the advertising and marketing division as well as in any case her replacement would certainly be needed for the current role that she is performing. The drawback of this alternative is that outside hiring may cause bitterness from internal workers that may be considering the placement of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and Production: Offered the affordable pressures as well as high quality job called for from the advertising agency, it is suggested that Lewis needs to enable the manufacturing system to be a separate function from the advertising unit. Considering that a lot of advertising agencies had these two functions as different systems, it makes even more sense to adhere to the standard. Both features may be able to concentrate on their core activates much more efficiently. However, the disadvantage of this technique would certainly be that extra costs would certainly need to be borne for establishing different manufacturing features. In addition to this, a manufacturing head may need to be employed which could boost overheads for the company.

Assimilation of Advertising And Marketing with Operations: Given that Lewis is currently taking care of the marketing and procedures departments concurrently; it makes sense to incorporate the two features given that she has been successfully looking after both ends. The reality that the two departments currently have significant distinctions over allocation of sources recommends that this integration might be able to cause harmony specifically as Lewis would certainly be heading both ends.However there are different drawbacks of this action specifically as it would certainly put too much burden over Lewis's shoulders. The truth that Lewis has to adapt her administration design for the marketing division recommends that these 2 departments would certainly be culturally diverse. Lewis may not be able to use one type of management design to both divisions which could result in inefficiency in either one of the 2 features.


An assessment of the 3 options shows that assimilation of advertising and operations would certainly not be a viable move due to the substantial distinctions between the two departments despite the reality that presently Lewis is handling both. While splitting up of the production feature might have been a beneficial move for the marketing department, the truth that it would certainly indicate placing a 3rd function under Lewis's wing means this ought to be avoided.

Activity Plan.

Lewis will take over the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Manufacturing function will certainly stay part of marketing under marketing function.

Lewis will certainly divide herself from procedures.

An autonomous management style with employee empowerment will be made use of in advertising and marketing department.

Open door plan and emphasis on cross department interaction will be aimed at eliminating dissonance.

Backup plan.

If the combination does not work out as prepared, a contingency plan would follow which would separate the production function from the advertising and marketing feature to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the production feature will absolutely be separated by placing it under an SVP manufacturing.