Nextel Partners Put Option Case Study Help


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Nextel Partners Put Option Case Study Help

Background and Facts

Nextel Partners Put Option a workplace materials retailer for little and also medium sized companies has actually recently been associated with planning for a merger with its competitor House Deport, which has affected performance levels in departmentswith the elderly manager associated with lawful complications presented by the federal Profession Commission. With the Advertising and marketing Head advancing the information of his departure from the business in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the function in the future. With obstacles in the type of a potential cultural adjustment and also reduced worker spirits, the company is in need of a full reengineering initiative at the advertising department.

Problem Statement
Porter's 5 Forces Analysis
The prospective social modification at the advertising department of Nextel Partners Put Option is raising uncertainty in the workplace causing various difficulties for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting critical choices given that Stapes Inc. needed to desert its strategies of combining with Workplace Deport after the Federal Profession Compensation's intervention in the process. Given the reality that the store has a worldwide presence with branches in UK, U.S.A., Canada and Germany, political consider each of these nations may have the ability to impact efficiency or tactical goals. Federal Trade Payment's antitrust suit against the merger used up valuable time of the company's senior administration suggesting that 'political' factors can have severe implications for a worldwide organisation.

Economic Factors: Financial factors such as the emergence of small companies in the international circumstance suggest that Nextel Partners Put Option is prospering in an environment where there is prospective development of services. In addition to this, fact that store customers are mainly seeking workplace supplies for office suggests that the market has a rising pattern of business owners as well as home based companies.

Social factors: Social trends in the economic climate reveal that consumers are seeking ease as well as appealing costs. Market research demonstrates how the customer for Nextel Partners Put Option lacks awareness about finding remedies which can supply a mix of ease and also affordable.

Technological factors: Modern technology plays a vital role in Nextel Partners Put Option's business strategy specifically as the organization is piloting Technology facilities which would provide innovation sales as well as assistance in the type of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues as well as Effects.

Several underlying Business Behavior concerns can be seen in Nextel Partners Put Option's case as highlighted in this section.

Apprehensions about cultural modification: There is apprehension about a cultural adjustment that would certainly occur when Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising And Marketing with most of the personnel currently showing unhappiness over this potential move. This expected modification has developed anxiety in the office which has actually been combined with the previous tension of preparing the firm for a potential merging with Residence Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is scarcity of employees that can match the stressful setting of a hectic organization. Not only does this lead to problem in discovering the appropriate people, it places stress on new hires as can not endure the pace and stress that the organization expects them to bear.

Dual Reporting Lines: Novices find this business culture cumbersome and also tough to deal with specifically as dotted line partnerships are indicated to be weak in general and also unbiased setup as well as efficiency analysis is still done by the solid line manager. This suggests that newbies can shed clearness about their particular duties as well as purposes particularly as populated line coverage does not keep them in straight interaction with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had been hypothesized that the latter would certainly take Krasnow's position came as a strike to her spirits. Lewis may have been qualified and ideal for the work however the reality that Kransnow's separation would certainly make Coles a straight record to Lewis might have been the reason for Coles' resignation from services.

Concern & Job Insecurity: Anxiety and insecurity can be identified as 2 significant problems that Lewis would be dealing with specifically as the merging has now be cancelled as well as two senior execs of the marketing department would be leaving. The entire responsibility of the division would be falling on Lewis's shoulders that would certainly not just be in charge of brining regarding a social adjustment yet would additionally need to show herself in her new role.

Inappropriate Management Style of Leader: Lewis's management design as well as its conflict with the marketing department's role can likewise be seen as an OB challenge specifically as she has actually been used to handling problems in the operations department where workers are shown to focus on processes and also obtain them. The marketing division on the other hand can be seen as a group of individuals that are utilized to being nurtured by Krasnow who concentrated much more on output than processes.

Interdepartmental Disputes: Interdepartmental disagreements in between 3 divisions, advertising and marketing, merchandizing and operations specifically over the allowance of the advertising and marketing mix can be determined as another OB issue. The advertising and marketing department does not share the very same vision as the various other two divisions pertaining to the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and procedures departments do not agree over the advertising mix allocation among one another either.

Disintegration in Advertising Department: Fragmentation in between the advertising and marketing divisions can be identified as another OB problem which might require more interest. The truth that the marketing and advertising areas in the advertising division are separated is protecting against both divisions from acquiring from each various other's experience and also experience. Assimilation of advertising and marketing with merchandising as well as operations would end up being more difficult if the advertising and marketing department itself is degenerated which can be an additional prospective OB concern.

Nextel Partners Put Option Analysis

Numerous theories have been made use of to explain the conditions to get additional clarity regarding the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of managers think that subordinates are passive as well as careless, have little passion and resist change. The hard variation of this theory highlighted browbeating, tight controls, hazards as well as punishments. Gradually it produces reduced productivity, subtle sabotage and also rivalry (Bargain, 2003). The situation at Nextel Partners Put Option is not entirely following Theory X, it can be seen that new hires are finding this environment instead stressful which might eventually lead to a higher inclination of the management in the direction of Concept X. Based on McGregor's supported view, which he called Concept Y, the vital task of the administration is to arrange organizational problems so that individuals can attain their very own objectives best by directing their initiatives in the direction of organizational rewards. If individuals locate no satisfaction in their work, the monitoring would certainly have little selection yet to depend on theory X as well as outside control (Offer, 2003). Also while assessing Lewis's administration style, concept X might have been suitable in the operations department to some extent but the Advertising department would need dependence on Theory Y in order to get the creative thinking and creativity from the teams.

Tuckman's Synergy Theory: As far as Lewis's issue concerning bringing consistency in between the advertising and marketing department is concerned, this would initially result in clash as discussed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, throughout the preliminary phase of team advancement, individuals may not bond, as they are busy locating their location in the group. By integrating the marketing and advertising department's job, there might coincide preliminary separate which can result in the 2nd stage of 'storming' where the groups test each other. It is only during the third stage or 'norming' when they would come together to share suggestions prior to the team can bring around synergy in the fourth stage 'executing'.

When individuals are presented with change, they enter stage one as well as so there might be emotions like despair, uncertainty, aggravation, anger, worry, denial and disorientation.The situation at the advertising and marketing department of Nextel Partners Put Option is similar so Lewis can obtain comfortable with the suggestion that it is not extraordinary habits. It is during this stage that Lewis will have to offer guidance to the department so that they can locate a feeling of direction. It can be seen exactly how Krasnow has already made this shift easier by making Lewis get involved in the department a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has reviews the relevance of 'protection requires as being a lower degree need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel safe and secure and out of risk' is at the second level of requirements. Before a staff member can be made to create psychologically, he needs to have his 'Physical 'and also 'Safety and security' requires met.

SWOT Analysis for Nextel Partners Put Option Case Study

Ramification of Analysis.

The OB analysis has actually checked out numerous theories to understand just how to handle the existing situation at hand. The complying with 3 choices have actually been recommended to help Lewis handle the organizational challenges in the advertising department. Each of these options has actually been proposed for relieving the transition required to bring the marketing department in line with the requirements of the market as well as for making the social change that would follow once the existing leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and also Manufacturing features. Combination of Marketing with Procedures.

Examination of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis during the earlier merger days has proficiency in business-to-business advertising along with agency as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both advertising and marketing and advertising functions.

The advantage of this strategy is that it will integrate the two features while decreasing the need for working with an extra source for marketing. Lewis would be heading the marketing department and in any type of case her replacement would certainly be required for the present role that she is performing. The negative aspect of this option is that exterior hiring may produce resentment from interior personnel that might be eying the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and also Manufacturing: Offered the competitive pressures and also top quality work required from the ad agency, it is recommended that Lewis should enable the manufacturing device to be a different function from the advertising unit. Because a lot of advertising agencies had these two features as different units, it makes more feeling to follow the norm. Both features might be able to concentrate on their core activates a lot more effectively. The downside of this method would be that added prices would have to be borne for establishing up separate production functions. A production head may have to be hired which might increase overheads for the organization.

Assimilation of Advertising And Marketing with Operations: Since Lewis is already taking care of the advertising as well as procedures departments at the same time; it makes sense to integrate both functions since she has actually been effectively caring for both ends. The reality that both departments already have significant differences over allowance of sources suggests that this assimilation may be able to cause consistency specifically as Lewis would be heading both ends.However there are different downsides of this step particularly as it would place way too much problem over Lewis's shoulders. The truth that Lewis needs to adapt her monitoring design for the marketing department suggests that these 2 divisions would certainly be culturally diverse. Lewis may not be able to apply one type of leadership design to both departments which can result in ineffectiveness in either one of the two features.


An assessment of the three choices indicates that combination of marketing and procedures would certainly not be a possible move because of the substantial differences between the two divisions despite the fact that presently Lewis is taking care of both. While splitting up of the manufacturing function may have been a favorable move for the advertising division, the truth that it would certainly suggest positioning a 3rd function under Lewis's wing indicates this ought to be prevented as well. The integration of the marketing division is the most effective choice in terms of getting the ideal arise from the division. An activity prepare for this choice is discussed below.

Activity Plan.
Lewis will take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

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

Lewis will divide herself from procedures.

A democratic management design with staff member empowerment will certainly be made use of in advertising division.

Open door policy and also focus on cross departmental communication will certainly be targeted at eliminating dissonance.

Backup plan.

If the assimilation does not exercise as prepared, a contingency plan would certainly comply with which would separate the manufacturing function from the marketing feature to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the marketing department without an SVP. Because case the production feature will certainly be separated by putting it under an SVP manufacturing.