Menu

Nicholson File Co Takeover B Case Study Help

CASE STUDY

Home >> Harvard >> Nicholson File Co Takeover B >>

Nicholson File Co Takeover B Case Study Analysis

Background and Facts

Nicholson File Co Takeover B an office products merchant for tiny as well as medium sized organisations has just recently been involved in preparing for a merger with its competitor House Deport, which has actually affected effectiveness degrees in departmentswith the senior supervisor involved in legal difficulties put forth by the government Trade Compensation. With the Advertising and marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the role in the future. With obstacles in the form of a potential social change and also reduced staff member morale, the organization needs a full reengineering initiative at the advertising department.

Problem Declaration
Porter's 5 Forces Analysis
The possible social modification at the marketing division of Nicholson File Co Takeover B is enhancing uncertainty in the workplace bring about various difficulties 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 major duty in impacting tactical decisions since Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Trade Payment's intervention while doing so. Offered the fact that the shop has an international visibility with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations might be able to affect performance or critical objectives. Federal Trade Commission's antitrust fit against the merging occupied beneficial time of the company's senior monitoring recommending that 'political' factors can have major ramifications for an international organisation.

Economic Factors: Financial factors such as the introduction of local business in the international situation recommend that Nicholson File Co Takeover B is growing in an environment where there is potential growth of businesses. In addition to this, reality that shop consumers are mainly searching for workplace supplies for office recommends that the market has a rising fad of entrepreneurs as well as online companies.

Social factors: Social patterns in the economic climate show that clients are looking for convenience as well as attractive prices. Marketing research demonstrates how the customer for Nicholson File Co Takeover B does not have understanding concerning discovering services which can offer a combination of comfort and affordable.

Technological factors: Modern technology plays a crucial duty in Nicholson File Co Takeover B's organisation method specifically as the organization is piloting Modern technology facilities which would certainly use innovation sales and support in the form of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues and also Effects.

A number of underlying Organizational Actions issues can be seen in Nicholson File Co Takeover B's case as highlighted in this section.

Worries regarding social modification: There is uneasiness concerning a cultural modification that would take place as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising with a lot of the employee currently showing discontent over this potential move. This anticipated modification has actually created stress in the work environment which has been coupled with the previous tension of preparing the company for a potential merger with House Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is scarcity of employees that can match the stressful environment of a fast-paced organization. Not only does this bring about problem in discovering the appropriate individuals, it puts tension on brand-new hires as can not hold up against the pace and stress that the organization anticipates them to bear.

Dual Reporting Lines: Novices find this business society difficult as well as difficult to deal with specifically as dotted line relationships are indicated to be weaker in general and unbiased setting as well as efficiency evaluation is still done by the strong line manager. This indicates that novices can shed clearness concerning their particular duties as well as goals especially as dotted line reporting does not maintain them in direct interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been guessed that the last would certainly take Krasnow's position came as an impact to her spirits. Lewis may have been capable and also appropriate for the task but the reality that Kransnow's separation would make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Work Insecurity: Concern and also instability can be determined as two major concerns that Lewis would be managing especially as the merging has currently be terminated and also 2 senior execs of the marketing division would be leaving. The entire responsibility of the division would be falling on Lewis's shoulders that would certainly not simply be in charge of brining regarding a social change but would certainly likewise have to prove herself in her new function.

Incompatible Administration Style of Leader: Lewis's monitoring design as well as its incompatibility with the marketing division's function can likewise be seen as an OB obstacle particularly as she has actually been used to managing concerns in the operations division where employees are instructed to focus on processes and get them. The advertising division on the various other hand can be viewed as a team of individuals who are made use of to being supported by Krasnow that concentrated a lot more on result than procedures.

Interdepartmental Differences: Interdepartmental disagreements between three departments, advertising and marketing, merchandizing as well as procedures respectively over the allowance of the marketing mix can be identified as an additional OB concern. The marketing division does not share the exact same vision as the various other two departments pertaining to the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing as well as operations departments do not concur over the advertising and marketing mix allowance among one an additional either.

Disintegration in Advertising And Marketing Division: Fragmentation between the marketing and advertising departments can be determined as another OB concern which can require further focus. The fact that the advertising and marketing sections in the marketing department are separated is stopping both departments from acquiring from each other's experience and know-how. Assimilation of marketing with retailing and also procedures would certainly become more difficult if the advertising and marketing department itself is degenerated which can be an additional prospective OB issue.

Nicholson File Co Takeover B Analysis

Different theories have been used to clarify the conditions to get more clarity concerning the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors think that subordinates are passive and also careless, have little ambition as well as resist adjustment. The circumstance at Nicholson File Co Takeover B is not entirely following Concept X, it can be seen that brand-new hires are finding this atmosphere rather stressful which might ultimately lead to a higher inclination of the monitoring in the direction of Concept X. Even while analyzing Lewis's administration style, concept X may have been ideal in the operations division to some extent yet the Marketing division would require reliance on Concept Y in order to get the creativity as well as originality from the groups.

Tuckman's Synergy Theory: As for Lewis's issue about bringing harmony between the marketing and advertising division is concerned, this would initially cause clash as talked about by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's concept received appendix 3, throughout the first phase of group development, individuals might not bond, as they are hectic locating their location in the group. By combining the advertising and marketing division's job, there might be the same first separate which might cause the second stage of 'storming' where the teams challenge each other. It is just throughout the third phase or 'norming' when they would certainly come together to share suggestions before the team can bring about synergy in the fourth phase 'executing'.

When individuals are provided with adjustment, they get in phase one and also so there might be emotions like sadness, unpredictability, stress, temper, worry, denial as well as disorientation.The circumstance at the advertising department of Nicholson File Co Takeover B is comparable so Lewis can obtain comfortable with the suggestion that it is not extraordinary behavior. It is throughout this stage that Lewis will certainly have to provide guidance to the department so that they can locate a sense of direction. It can be seen just how Krasnow has already made this change much easier by making Lewis get involved in the department a year before his real departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has reviews the relevance of 'protection needs as being a lower degree requirement of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel secure as well as out of threat' is at the second degree of needs. Prior to a staff member can be made to create psychologically, he requires to have his 'Physiological 'and also 'Security' needs met.

SWOT Analysis for Nicholson File Co Takeover B Case Study



Ramification of Analysis.

The OB analysis has actually looked at various concepts to comprehend how to deal with the present circumstance at hand. The complying with three alternatives have been recommended to assist Lewis manage the organizational obstacles in the advertising department. Each of these alternatives has been suggested for reducing the shift required to bring the advertising department in accordance with the requirements of the marketplace and also for making the social change that would comply with once the present leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting as well as Manufacturing functions. Integration of Advertising with Workflow.

Evaluation of Alternatives.

Integration of Marketing & Advertising And Marketing Functions: The internal advertising and marketing agency of Nicholson File Co Takeover B is already strength for the company in regards to saving up on expenses associated with marketing and promotion. Considering that no brand-new employment has actually been done after Bridget Cole's departure with the coverage line being straight assigned to Krasnow for the marketing feature, this is a desirable chance for incorporating the marketing and advertising features. Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merger days has knowledge in business-to-business marketing together with firm and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both advertising and marketing features.

The benefit of this strategy is that it will certainly integrate the two features while reducing the need for working with an extra resource for advertising. Lewis would certainly be heading the advertising and marketing division and in any type of case her replacement would be required for the existing duty that she is performing. The disadvantage of this alternative is that outside hiring may bring about resentment from internal personnel that may be considering the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Production: Offered the affordable stress and high quality work called for from the advertising company, it is suggested that Lewis should allow the manufacturing unit to be a different function from the advertising device. Given that most marketing companies had these 2 functions as separate systems, it makes more sense to follow the standard.

Assimilation of Marketing with Operations: Given that Lewis is already taking care of the advertising and marketing and also operations departments at the same time; it makes sense to incorporate both functions because she has been efficiently taking care of both ends. The fact that the two divisions currently have major distinctions over appropriation of resources recommends that this integration might be able to cause harmony especially as Lewis would certainly be heading both ends.However there are different downsides of this move especially as it would certainly place too much problem over Lewis's shoulders. The truth that Lewis has to adjust her monitoring design for the advertising and marketing department recommends that these two departments would be culturally diverse. Lewis might not be able to apply one type of leadership design to both departments which might result in ineffectiveness in either one of the 2 features.

Suggestion.



An examination of the 3 alternatives suggests that combination of advertising and procedures would not be a practical move due to the substantial distinctions between the two divisions despite the reality that presently Lewis is handling both. While separation of the production function may have been a desirable relocation for the advertising and marketing division, the truth that it would certainly indicate putting a 3rd function under Lewis's wing suggests this need to be prevented.

Action Plan.
Recommendation
Lewis will take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

Production function will certainly remain component of marketing under advertising feature.

Lewis will divide herself from procedures.

An autonomous management style with staff member empowerment will be made use of in advertising department.

Open door plan and focus on cross department communication will be aimed at eliminating disharmony.

Contingency plan.

If the assimilation does not exercise as planned, a backup plan would certainly follow which would certainly separate the manufacturing function from the advertising function to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising division without an SVP. In that case the production feature will definitely be separated by placing it under an SVP manufacturing.