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Nanpo Holdings Ltd Initial Public Offering Case Study Help

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Nanpo Holdings Ltd Initial Public Offering Case Study Analysis

Background and Facts

Nanpo Holdings Ltd Initial Public Offering a workplace materials seller for small and moderate sized organisations has recently been involved in preparing for a merger with its competitor Residence Deport, which has actually influenced efficiency degrees in departmentswith the senior manager associated with legal issues presented by the government Trade Compensation. With the Advertising and marketing Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the current head of operations has been asked to take the duty in the future. With obstacles in the kind of a possible social change and low staff member spirits, the company wants a total reengineering effort at the marketing department.

Issue Statement
Porter's 5 Forces Analysis
The potential social adjustment at the marketing department of Nanpo Holdings Ltd Initial Public Offering is increasing unpredictability in the workplace resulting in various challenges for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing strategic choices because Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Compensation's treatment at the same time. Provided the reality that the store has a global visibility with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries might have the ability to influence efficiency or calculated goals. Federal Profession Payment's antitrust suit against the merging took up important time of the company's elderly monitoring recommending that 'political' factors can have major effects for a global service.

Economic Factors: Economic factors such as the appearance of small companies in the international circumstance recommend that Nanpo Holdings Ltd Initial Public Offering is thriving in a setting where there is possible development of services. In addition to this, truth that shop customers are primarily looking for office supplies for home offices suggests that the marketplace has a rising pattern of entrepreneurs and home based companies.

Social factors: Social patterns in the economic situation show that consumers are seeking ease along with eye-catching costs. Market research demonstrates how the client for Nanpo Holdings Ltd Initial Public Offering does not have understanding regarding locating solutions which can provide a combination of comfort as well as inexpensive.

Technological factors: Innovation plays a crucial duty in Nanpo Holdings Ltd Initial Public Offering's organisation approach specifically as the company is piloting Innovation facilities which would supply modern technology sales as well as assistance in the type of memory upgrades, outer setups. (Summary of PARASITE in appendix 2).

OB Issues as well as Effects.

A number of underlying Organizational Actions concerns can be seen in Nanpo Holdings Ltd Initial Public Offering's case as highlighted in this section.

Apprehensions regarding cultural adjustment: There is apprehension regarding a social change that would happen once Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with most of the team member already showing discontent over this prospective relocation. This anticipated modification has actually created tension in the work environment which has actually been coupled with the previous stress of preparing the firm for a prospective merger with Residence Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is shortage of employees that can match the demanding atmosphere of a fast-paced organization. Not only does this bring about trouble in discovering the ideal people, it places anxiety on brand-new hires as can not withstand the pace as well as pressure that the organization anticipates them to birth.

Twin Reporting Lines: Newbies discover this business culture cumbersome and also challenging to cope with particularly as populated line connections are suggested to be weak as a whole and also objective setting as well as efficiency assessment is still done by the strong line supervisor. This suggests that newbies can lose quality regarding their corresponding duties and purposes specifically as populated line coverage does not keep them in direct interaction with the solid line managers.

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 hypothesized that the last would take Krasnow's placement came as an impact to her morale. Lewis might have been capable and also appropriate for the job but the reality that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Job Insecurity: Concern as well as instability can be identified as 2 major worries that Lewis would certainly be dealing with especially as the merging has actually currently be terminated and two elderly executives of the marketing division would be leaving. The whole responsibility of the division would be falling on Lewis's shoulders who would certainly not simply be in charge of brining regarding a cultural modification yet would also have to verify herself in her new function.

Inappropriate Monitoring Design of Leader: Lewis's administration style and its incompatibility with the marketing department's role can additionally be viewed as an OB difficulty specifically as she has been made use of to handling concerns in the operations division where personnel are shown to focus on procedures and get them right. The marketing division on the other hand can be seen as a group of people who are made use of to being nurtured by Krasnow who concentrated more on result than procedures.

Interdepartmental Disagreements: Interdepartmental differences in between 3 divisions, advertising and marketing, merchandizing as well as operations specifically over the allowance of the advertising mix can be determined as an additional OB worry. Although the marketing division does not share the exact same vision as the other 2 divisions concerning the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and operations divisions do not concur over the advertising mix allocation among each other either.

Fragmentation in Advertising And Marketing Division: Disintegration between the marketing and advertising departments can be recognized as one more OB concern which might need more focus. The truth that the marketing and advertising sections in the advertising and marketing division are detached is protecting against both departments from obtaining from each other's experience and also knowledge. Assimilation of marketing with retailing and also operations would certainly end up being more difficult if the advertising division itself is degenerated which can be one more prospective OB problem.

Nanpo Holdings Ltd Initial Public Offering Analysis

Numerous theories have been made use of to discuss the circumstances to get further clarity about the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers think that staffs are passive and also lazy, have little aspiration and stand up to change. The scenario at Nanpo Holdings Ltd Initial Public Offering is not completely adhering to Concept X, it can be seen that brand-new hires are finding this setting rather demanding which may ultimately lead to a better inclination of the monitoring in the direction of Theory X. Even while assessing Lewis's monitoring style, theory X may have been appropriate in the procedures division to some degree yet the Advertising and marketing division would certainly require dependence on Theory Y in order to get the imagination and originality from the teams.

Tuckman's Team effort Concept: As far as Lewis's worry concerning bringing consistency between the advertising and marketing department is worried, this would originally cause contrast as discussed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's theory shown in appendix 3, during the preliminary stage of group development, people may not bond, as they are busy locating their place in the group. By combining the advertising and marketing department's job, there might be the same first disconnect which could result in the 2nd stage of 'storming' where the groups challenge each other. Nevertheless, it is just during the 3rd phase or 'norming' when they would certainly collaborate to share suggestions prior to the group can cause harmony in the 4th phase 'executing'.

Bridges' Change Design: According To William Bridge's concept (appendix 4), people are rather awkward with adjustment, which is obvious by the circumstance at Nanpo Holdings Ltd Initial Public Offering The scenario can be seen as a regular training course of life if is examined according to Bridge's concept where he explains that individuals experience 3 stages of transition when they experience adjustment. 'End, losing as well as Releasing', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When individuals exist with adjustment, they get in phase one and so there may be feelings like sadness, unpredictability, aggravation, rage, concern, rejection as well as disorientation.The situation at the advertising department of Nanpo Holdings Ltd Initial Public Offering is similar so Lewis can get comfortable with the concept that it is not extraordinary behavior. In the 2nd phase, there may be a requirement to link the gap between the new and also old culture so Lewis may have to encounter this ordeal as soon as Krasnow leaves. There may be reduced spirits and reduced performance at this phase which need to not be taken as an obstacle. It is during this stage that Lewis will need to offer guidance to the division so that they can find a sense of direction. It can be seen how Krasnow has actually currently made this change easier by making Lewis get involved in the division a year before his actual departure. According to Bridges' Model, phase 3 will produce visibility to learning, High energy and commitment as people will certainly accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Demand power structure: The OB issue related to instability at the office has been set off firstly by the modification in management and also second of all by the reality that the merger will certainly no more be launched. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has goes over the importance of 'safety and security requires as being a reduced level demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel secure as well as safe' is at the 2nd degree of demands. Before an employee can be made to develop mentally, he requires to have his 'Physiological 'as well as 'Security' requires met. This indicates that unless the personnel are made to feel safe concerning their current work status in Nanpo Holdings Ltd Initial Public Offering they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Nanpo Holdings Ltd Initial Public Offering Case Study



Ramification of Analysis.

The OB analysis has considered different theories to comprehend just how to deal with the current scenario available. The complying with 3 choices have actually been recommended to help Lewis manage the business difficulties in the advertising division. Each of these choices has been suggested for relieving the change required to bring the marketing department in line with the requirements of the marketplace and for making the cultural change that would certainly follow as soon as the current leader leaves.

Integration of marketing and advertising functions. Separating Adverting as well as Manufacturing functions. Assimilation of Marketing with Procedures.

Evaluation of Alternatives.

Combination of Marketing & Advertising And Marketing Functions: The internal advertising and marketing agency of Nanpo Holdings Ltd Initial Public Offering is currently strength for the company in regards to conserving up on expenses related to advertising and marketing as well as promotion. Since no new employment has actually been done after Bridget Cole's separation with the reporting line being directly designated to Krasnow for the advertising and marketing feature, this is a favorable opportunity for incorporating the marketing and advertising features. Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merging days has experience in business-to-business marketing together with company and retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to handle both advertising and marketing features.

The advantage of this strategy is that it will incorporate both functions while reducing the requirement for working with an extra resource for marketing. Lewis would be heading the marketing department and also in any type of case her replacement would be required for the current function that she is doing. The disadvantage of this option is that outside hiring may produce bitterness from internal workers who might be eying the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Production: Given the competitive stress as well as high top quality job called for from the advertising and marketing agency, it is recommended that Lewis ought to permit the production unit to be a different function from the advertising and marketing system. Given that many marketing agencies had these 2 features as different systems, it makes even more sense to adhere to the standard.

Assimilation of Marketing with Procedures: Given that Lewis is already taking care of the advertising and procedures divisions all at once; it makes feeling to incorporate the 2 functions given that she has actually been effectively taking treatment of both ends. The truth that Lewis has to adjust her monitoring style for the advertising department recommends that these 2 departments would be culturally diverse.

Referral.



An analysis of the 3 options suggests that combination of advertising and procedures would certainly not be a practical move because of the substantial distinctions in between both divisions despite the fact that presently Lewis is managing both. While separation of the production function may have been a desirable action for the marketing division, the truth that it would mean placing a 3rd function under Lewis's wing means this must be avoided too. The integration of the advertising division is the most effective alternative in terms of getting the optimum results from the division. An activity plan for this choice is talked about listed below.

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

Marketing and advertising features would certainly be merged.

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

Manufacturing function will continue to be component of advertising under marketing feature.

Lewis will certainly divide herself from operations.

An autonomous leadership design with worker empowerment will certainly be made use of in advertising department.

Open up door policy and focus on cross department communication will certainly be targeted at eliminating discord.

Contingency plan.

If the integration does not exercise as intended, a backup strategy would adhere to which would divide the production function from the advertising and marketing function to lower the tons 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 most definitely be divided by putting it under an SVP production.