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Municipal Bond Structuring Case Study Solution

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Municipal Bond Structuring Case Study Solution

Background and Facts

Municipal Bond Structuring a workplace materials merchant for small and medium sized businesses has recently been associated with preparing for a merging with its competitor Home Deport, which has affected performance levels in departmentswith the elderly supervisor involved in lawful issues put forth by the federal Trade Compensation. With the Advertising and marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the current head of operations has been asked to take the role in the near future. With challenges in the kind of a possible cultural modification as well as low employee spirits, the company requires a total reengineering effort at the advertising and marketing department.

Problem Statement
Porter's 5 Forces Analysis
The potential cultural change at the marketing division of Municipal Bond Structuring is increasing uncertainty in the working environment resulting in different obstacles for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting calculated decisions considering that Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Profession Commission's intervention in the process. Provided the reality that the store has a worldwide visibility with branches in UK, UNITED STATES, Canada and Germany, political consider each of these nations might have the ability to affect efficiency or calculated objectives. Federal Profession Payment's antitrust fit against the merger occupied important time of the organization's elderly monitoring suggesting that 'political' factors can have major effects for a worldwide company.

Economic Factors: Financial factors such as the introduction of small companies in the international scenario recommend that Municipal Bond Structuring is flourishing in an atmosphere where there is prospective development of organisations. In addition to this, truth that shop customers are mainly trying to find office materials for office suggests that the market has a climbing fad of entrepreneurs and online companies.

Social factors: Social fads in the economic situation reveal that consumers are seeking comfort in addition to appealing prices. Market research demonstrates how the customer for Municipal Bond Structuring does not have awareness regarding discovering services which can supply a mix of comfort and also affordable.

Technological factors: Technology plays an important function in Municipal Bond Structuring's company technique especially as the company is piloting Technology facilities which would certainly provide technology sales as well as support in the form of memory upgrades, peripheral installations. (Recap of BUG in appendix 2).

OB Issues and also Manifestations.

Several underlying Organizational Behavior concerns can be seen in Municipal Bond Structuring's case as highlighted in this section.

Uneasiness concerning cultural modification: There is concern regarding a social modification that would certainly occur once Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with most of the personnel already revealing unhappiness over this prospective move. This predicted modification has actually produced anxiety in the office which has actually been combined with the past stress of preparing the firm for a potential merger with Residence Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is scarcity of employees that can match the difficult atmosphere of a busy organization. Not only does this lead to trouble in finding the best people, it places anxiety on brand-new hires as can not endure the speed and also pressure that the company anticipates them to bear.

Dual Reporting Lines: Novices locate this business culture troublesome and tough to cope with especially as dotted line relationships are suggested to be weaker generally and also objective setting and also efficiency analysis is still done by the solid line manager. This means that beginners could lose clearness regarding their corresponding duties as well as purposes specifically as populated line coverage does not keep them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been hypothesized that the last would take Krasnow's placement came as a blow to her morale. Lewis may have been capable and also appropriate for the work however the reality that Kransnow's separation would make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Work Insecurity: Fear and instability can be determined as 2 significant problems that Lewis would be taking care of especially as the merging has now be terminated as well as 2 senior executives of the marketing division would certainly be leaving. The whole responsibility of the department would be falling on Lewis's shoulders who would certainly not just be in charge of brining regarding a cultural adjustment but would certainly also need to verify herself in her brand-new duty.

Inappropriate Management Style of Leader: Lewis's monitoring style as well as its incompatibility with the marketing department's role can also be seen as an OB obstacle specifically as she has been used to managing issues in the procedures division where workers are instructed to concentrate on processes and also get them. The advertising department on the other hand can be viewed as a group of people that are utilized to being nurtured by Krasnow that focused more on result than procedures.

Interdepartmental Disagreements: Interdepartmental arguments in between 3 departments, advertising, merchandizing and also operations specifically over the allowance of the advertising mix can be identified as one more OB problem. The marketing department does not share the very same vision as the other 2 departments regarding the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and procedures divisions do not agree over the advertising and marketing mix allocation among one another either.

Fragmentation in Advertising Department: Fragmentation in between the marketing and advertising departments can be recognized as an additional OB problem which can require more interest. The reality that the advertising and marketing areas in the advertising and marketing division are disconnected is preventing both divisions from gaining from each other's experience as well as proficiency. Combination of advertising and marketing with retailing and also procedures would certainly end up being more difficult if the marketing division itself is broken down which can be one more potential OB issue.

Municipal Bond Structuring Analysis

Numerous concepts have actually been made use of to discuss the circumstances to get more quality about the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers think that juniors are passive and lazy, have little ambition as well as stand up to adjustment. The circumstance at Municipal Bond Structuring is not totally following Theory X, it can be seen that brand-new hires are locating this environment instead demanding which may ultimately lead to a higher disposition of the administration towards Theory X. Also while analyzing Lewis's management design, concept X might have been suitable in the operations division to some extent yet the Advertising department would call for dependence on Theory Y in order to obtain the imagination as well as originality from the groups.

Tuckman's Synergy Concept: As far as Lewis's concern concerning bringing consistency between the marketing and advertising and marketing division is worried, this would at first lead to clash as gone over by Bruce Tuckman in his 'Teamwork Concept'. By integrating the advertising and marketing as well as advertising and marketing department's job, there might be the very same preliminary detach which can lead to the 2nd phase of 'storming' where the groups challenge one an additional.

When people are provided with change, they enter phase one as well as so there might be feelings like unhappiness, uncertainty, frustration, temper, anxiety, rejection and also disorientation.The situation at the advertising division of Municipal Bond Structuring is comparable so Lewis can obtain comfy with the concept that it is not extraordinary behavior. It is throughout this stage that Lewis will have to provide guidance to the division so that they can discover a sense of direction. It can be seen exactly how Krasnow has actually already made this shift less complicated by making Lewis obtain entailed in the department a year before his actual separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has goes over the importance of 'security requires as being a lower level need of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel secure and out of risk' is at the 2nd degree of demands. Before an employee can be made to establish psychologically, he needs to have his 'Physical 'and also 'Safety' needs fulfilled.

SWOT Analysis for Municipal Bond Structuring Case Study



Effects of Analysis.

The OB analysis has looked at different concepts to recognize exactly how to manage the present situation handy. The adhering to 3 options have been suggested to assist Lewis take care of the organizational difficulties in the advertising division. Each of these choices has been proposed for easing the shift required to bring the advertising division according to the requirements of the market and also for making the social change that would certainly comply with when the present leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and Manufacturing functions. Combination of Advertising with Workflow.

Analysis of Alternatives.

Judith Shapiro who has earlier been interviewed by Lewis during the earlier merger days has knowledge in business-to-business advertising and marketing along with agency and also retail advertising experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to handle both marketing and also advertising features.

The advantage of this method is that it will certainly incorporate the two functions while decreasing the demand for working with an extra resource for advertising. In addition to this, Lewis would certainly be heading the advertising department and also regardless her replacement would be needed for the existing role that she is executing. The negative aspect of this choice is that outside hiring might bring about resentment from internal employees who might be looking at the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Manufacturing: Offered the competitive pressures as well as high quality work required from the ad agency, it is recommended that Lewis ought to allow the production unit to be a different function from the advertising unit. Because the majority of ad agency had these 2 functions as separate units, it makes even more sense to comply with the standard. In addition to this, both functions may have the ability to focus on their core activates much more effectively. Nonetheless, the negative aspect of this approach would be that additional expenses would certainly need to be birthed for establishing different production functions. A manufacturing head may have to be worked with which could increase expenses for the organization.

Assimilation of Advertising with Operations: Considering that Lewis is already taking treatment of the marketing and also operations divisions concurrently; it makes sense to integrate the two functions since she has actually been effectively taking treatment of both ends. The fact that Lewis has to adapt her monitoring style for the advertising department suggests that these two divisions would be culturally diverse.

Recommendation.



An examination of the three options indicates that combination of advertising as well as operations would not be a feasible action due to the huge distinctions between the 2 divisions regardless of the fact that currently Lewis is handling both. While splitting up of the manufacturing function may have been a beneficial relocation for the advertising and marketing division, the reality that it would mean putting a third function under Lewis's wing implies this must be prevented.

Activity Strategy.
Recommendation
Lewis will certainly take over the function of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

Production feature will stay part of advertising under marketing function.

Lewis will certainly separate herself from operations.

A democratic management design with employee empowerment will be used in advertising division.

Open door policy and focus on cross departmental interaction will certainly be focused on removing disharmony.

Contingency strategy.

If the assimilation does not exercise as intended, a backup strategy would adhere to which would certainly divide the production function from the advertising and marketing function to reduce the load 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 absolutely be divided by positioning it under an SVP production.