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Morgan Stanley In China Case Study Help

Background and Facts

Morgan Stanley In China a workplace products seller for small and moderate sized companies has just recently been associated with preparing for a merging with its competitor Residence Deport, which has influenced effectiveness levels in departmentswith the senior manager involved in legal complications presented by the government Trade Payment. With the Advertising and marketing Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the role in the future. With difficulties in the form of a prospective social adjustment and low worker spirits, the company wants a full reengineering initiative at the advertising and marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising and marketing division of Morgan Stanley In China is raising uncertainty in the working environment causing different difficulties for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting tactical choices considering that Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Profession Compensation's intervention in the process. Given 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 influence efficiency or critical goals. Federal Trade Commission's antitrust match against the merger occupied valuable time of the organization's senior administration suggesting that 'political' factors can have significant ramifications for an international service.

Economic Factors: Economic factors such as the introduction of small companies in the international scenario recommend that Morgan Stanley In China is prospering in an atmosphere where there is potential development of companies. Along with this, fact that store consumers are mainly looking for office supplies for office recommends that the marketplace has an increasing fad of business owners as well as online businesses.

Social factors: Social patterns in the economic situation reveal that customers are seeking comfort in addition to appealing rates. Market research shows how the consumer for Morgan Stanley In China lacks understanding regarding finding options which can offer a combination of ease and also affordable.

Technical factors: Innovation plays an important role in Morgan Stanley In China's business strategy especially as the company is piloting Technology centers which would supply innovation sales as well as support in the kind of memory upgrades, outer installments. (Recap of BUG in appendix 2).

OB Issues as well as Symptoms.

Numerous underlying Organizational Actions problems can be seen in Morgan Stanley In China's case as highlighted in this section.

Uneasiness regarding cultural change: There is apprehension regarding a social change that would occur once Todd Krasnow leaves from his setting as the Exec Vice President of Marketing with a lot of the staff members already revealing discontent over this potential action. This anticipated change has developed stress in the workplace which has actually been coupled with the past anxiety of preparing the company for a possible merger with Home Deport.
Pest Analysis
Difficult Task Setting for Newcomers: There is shortage of employees that can match the demanding environment of a hectic organization. Not only does this bring about difficulty in locating the ideal individuals, it puts tension on new hires as can not withstand the pace as well as pressure that the company anticipates them to birth.

Dual Reporting Lines: Beginners locate this business society cumbersome and also tough to cope with particularly as populated line connections are indicated to be weaker as a whole and also objective setup and also efficiency evaluation is still done by the strong line supervisor. This implies that newcomers might shed quality about their respective roles and purposes particularly as dotted line coverage does not keep them in direct communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had actually been speculated that the last would certainly take Krasnow's setting came as an impact to her spirits. Lewis may have been capable and also ideal for the job however the fact that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from services.

Worry & Job Instability: Worry and insecurity can be identified as two major problems that Lewis would be taking care of particularly as the merging has actually currently be terminated as well as two senior execs of the marketing department would certainly be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders that would not simply be in charge of brining regarding a cultural modification but would also have to show herself in her brand-new duty.

Inappropriate Management Style of Leader: Lewis's monitoring style as well as its incompatibility with the marketing division's duty can also be seen as an OB challenge particularly as she has actually been utilized to taking care of problems in the operations department where personnel are taught to concentrate on procedures and also get them. The advertising department on the other hand can be seen as a group of individuals that are utilized to being supported by Krasnow who concentrated more on result than procedures.

Interdepartmental Disputes: Interdepartmental disputes in between 3 departments, advertising, merchandizing and operations respectively over the allocation of the marketing mix can be determined as another OB concern. The advertising division does not share the exact same vision as the other 2 departments relating to the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing as well as operations departments do not concur over the advertising mix appropriation among one an additional either.

Fragmentation in Advertising And Marketing Department: Fragmentation in between the advertising and marketing divisions can be determined as an additional OB concern which could need further attention. The fact that the advertising and marketing sections in the marketing department are separated is preventing both divisions from acquiring from each various other's experience as well as competence. Assimilation of advertising with merchandising as well as procedures would certainly become more difficult if the advertising department itself is disintegrated which can be another prospective OB concern.

Morgan Stanley In China Analysis

Various concepts have been utilized to discuss the scenarios to get additional clearness concerning the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that juniors are easy and also careless, have little passion as well as withstand adjustment. The scenario at Morgan Stanley In China is not completely adhering to Concept X, it can be seen that brand-new hires are locating this setting instead stressful which may eventually lead to a better inclination of the monitoring towards Concept X. Also while evaluating Lewis's monitoring design, theory X might have been ideal in the operations department to some level however the Advertising division would certainly need dependence on Concept Y in order to get the creativity as well as originality from the groups.

Tuckman's Teamwork Theory: As much as Lewis's worry concerning bringing consistency in between the advertising and marketing as well as advertising division is worried, this would originally lead to clash as reviewed by Bruce Tuckman in his 'Team effort Concept'. By combining the advertising as well as advertising department's work, there might be the very same initial separate which might lead to the second phase of 'storming' where the groups test one another.

When people are presented with modification, they go into stage one and also so there may be feelings like sadness, unpredictability, aggravation, rage, anxiety, denial and also disorientation.The scenario at the advertising and marketing division of Morgan Stanley In China is comparable so Lewis can obtain comfortable with the suggestion that it is not remarkable habits. It is during this stage that Lewis will have to give guidance to the department so that they can locate a sense of instructions. It can be seen just how Krasnow has already made this change much easier by making Lewis get included in the department a year prior to his actual separation.
Vrio Analysis
Maslow's Requirement hierarchy: The OB concern pertaining to instability at the workplace has been activated firstly by the adjustment in monitoring and secondly by the truth that the merger will certainly no more be initiated. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has talks about the significance of 'security requires as being a lower degree demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel safe and secure and out of danger' goes to the second degree of requirements. Before an employee can be made to establish emotionally, he needs to have his 'Physiological 'and also 'Security' needs fulfilled. This indicates that unless the workers are made to feel protected regarding their current employment status in Morgan Stanley In China they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Morgan Stanley In China Case Study



Implication of Analysis.

The OB analysis has looked at numerous concepts to understand exactly how to handle the present situation at hand. The following three choices have actually been recommended to help Lewis deal with the business challenges in the marketing division. Each of these options has actually been recommended for relieving the change required to bring the advertising and marketing department in line with the requirements of the marketplace as well as for making the cultural adjustment that would comply with as soon as the present leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting and also Manufacturing functions. Assimilation of Advertising And Marketing with Workflow.

Examination of Alternatives.

Assimilation of Marketing & Advertising And Marketing Functions: The in-house marketing firm of Morgan Stanley In China is already toughness for the company in terms of conserving up on overheads connected to advertising and also promo. Since no brand-new recruitment has been done after Bridget Cole's departure with the reporting line being directly appointed to Krasnow for the advertising and marketing function, this is a favorable chance for incorporating the advertising and marketing features. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merger days has know-how in business-to-business marketing along with firm as well as retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to manage both advertising and marketing functions.

The advantage of this method is that it will incorporate both features while lowering the requirement for hiring an extra resource for marketing. Lewis would certainly be heading the advertising department and also in any case her replacement would certainly be needed for the present duty that she is carrying out. The negative aspect of this alternative is that external hiring may bring about animosity from internal workers who may be eying the position of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and also Manufacturing: Offered the competitive pressures and high top quality job required from the marketing company, it is advised that Lewis needs to enable the manufacturing unit to be a different function from the marketing system. Given that the majority of advertising companies had these 2 features as separate devices, it makes more sense to comply with the norm.

Assimilation of Marketing with Procedures: Considering that Lewis is currently caring for the advertising and marketing as well as operations departments at the same time; it makes sense to integrate the two features because she has actually been effectively dealing with both ends. The reality that the two divisions already have major differences over allotment of resources suggests that this integration may have the ability to cause harmony especially as Lewis would certainly be heading both ends.However there are different downsides of this action especially as it would certainly put excessive problem over Lewis's shoulders. The reality that Lewis has to adjust her management style for the advertising and marketing department recommends that these 2 departments would be culturally diverse. Lewis might not be able to apply one type of leadership style to both divisions which can result in ineffectiveness in either one of the two functions.

Referral.



An examination of the three options suggests that combination of advertising and marketing and procedures would certainly not be a possible move due to the vast differences between the 2 departments in spite of the truth that currently Lewis is managing both. While separation of the production feature might have been a favorable action for the marketing division, the reality that it would indicate putting a third feature under Lewis's wing indicates this need to be prevented.

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

Marketing and advertising functions would be combined.

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

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

Lewis will certainly separate herself from procedures.

A democratic leadership design with employee empowerment will certainly be used in advertising department.

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

Backup plan.

If the combination does not exercise as planned, a backup strategy would certainly follow which would separate the manufacturing feature from the advertising and marketing feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the manufacturing feature will definitely be separated by placing it under an SVP manufacturing.