Note On Bankruptcy In The United States Case Study Analysis


Home >> Harvard >> Note On Bankruptcy In The United States >>

Note On Bankruptcy In The United States Case Study Analysis

Background and Facts

Note On Bankruptcy In The United States an office products merchant for little as well as medium sized companies has just recently been involved in planning for a merger with its rival Residence Deport, which has influenced efficiency degrees in departmentswith the elderly manager involved in lawful problems put forth by the government Profession Commission. With the Advertising Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the future. With difficulties in the form of a prospective cultural adjustment as well as reduced employee morale, the company wants a total reengineering initiative at the advertising division.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural change at the advertising department of Note On Bankruptcy In The United States is raising uncertainty in the working environment causing various obstacles 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 combining with Office Deport after the Federal Trade Compensation's intervention while doing so. Provided the reality that the shop has an international visibility with branches in UK, U.S.A., Canada and Germany, political factors in each of these nations may be able to impact efficiency or calculated objectives. Federal Trade Compensation's antitrust fit versus the merging took up useful time of the company's elderly management recommending that 'political' factors can have significant implications for an international service.

Economic Factors: Financial factors such as the emergence of small companies in the international situation recommend that Note On Bankruptcy In The United States is thriving in an atmosphere where there is prospective development of organisations. Reality that shop customers are mostly looking for workplace materials for home workplaces suggests that the market has a rising fad of entrepreneurs and also house based companies.

Social factors: Social patterns in the economy show that customers are looking for benefit as well as attractive prices. Market research shows how the consumer for Note On Bankruptcy In The United States lacks recognition regarding locating solutions which can provide a combination of comfort and low costs.

Technological factors: Technology plays an essential function in Note On Bankruptcy In The United States's company technique especially as the organization is piloting Innovation centers which would supply technology sales as well as assistance in the form of memory upgrades, outer installations. (Summary of INSECT in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Organizational Behavior problems can be seen in Note On Bankruptcy In The United States's case as highlighted in this section.

Concerns regarding social modification: There is concern about a cultural modification that would certainly take place as soon as Todd Krasnow leaves from his position as the Exec Vice President of Marketing with most of the staff members already showing unhappiness over this prospective step. This predicted modification has produced anxiety in the office which has been combined with the past anxiety of preparing the firm for a prospective merger with Home Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is lack of workers that can match the difficult setting of a hectic company. Not only does this cause problem in finding the best people, it places stress and anxiety on brand-new hires as can not withstand the speed as well as pressure that the company expects them to bear.

Dual Reporting Lines: Beginners discover this business society troublesome and also challenging to manage particularly as populated line connections are implied to be weaker generally as well as unbiased setting and performance evaluation is still done by the strong line supervisor. This suggests that newcomers might shed quality about their corresponding roles as well as purposes particularly as populated line reporting does not keep them in straight interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles despite the fact that it had been speculated that the latter would certainly take Krasnow's placement came as a blow to her morale. Lewis may have been capable and also appropriate for the job yet the truth that Kransnow's separation would make Coles a direct record to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Task Instability: Anxiety as well as insecurity can be recognized as 2 significant issues that Lewis would certainly be dealing with especially as the merger has now be cancelled as well as 2 senior execs of the advertising and marketing department would certainly be leaving. The whole duty of the division would be falling on Lewis's shoulders that would certainly not simply supervise of brining about a cultural modification but would certainly additionally have to prove herself in her brand-new function.

Inappropriate Monitoring Style of Leader: Lewis's monitoring design and its incompatibility with the advertising and marketing division's role can also be seen as an OB difficulty particularly as she has actually been used to dealing with problems in the operations department where employees are shown to concentrate on procedures as well as get them right. The advertising and marketing division on the various other hand can be seen as a group of people that are made use of to being nurtured by Krasnow that focused more on result than procedures.

Interdepartmental Disagreements: Interdepartmental disputes between three divisions, advertising and marketing, merchandizing and also procedures respectively over the allocation of the marketing mix can be determined as an additional OB worry. The advertising and marketing department does not share the same vision as the other 2 divisions relating to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and also procedures divisions do not agree over the marketing mix appropriation amongst one another either.

Disintegration in Advertising Division: Disintegration between the advertising and marketing divisions can be determined as an additional OB issue which can require more focus. The reality that the advertising and marketing areas in the advertising department are disconnected is preventing both departments from obtaining from each various other's experience and also knowledge. Integration of marketing with retailing as well as operations would come to be more difficult if the advertising division itself is broken down which can be an additional prospective OB concern.

Note On Bankruptcy In The United States Analysis

Various theories have been utilized to discuss the circumstances to obtain more quality about the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors think that staffs are easy as well as lazy, have little aspiration and withstand modification. The scenario at Note On Bankruptcy In The United States is not completely following Concept X, it can be seen that new hires are discovering this environment rather demanding which may ultimately lead to a higher inclination of the management in the direction of Theory X. Also while assessing Lewis's administration style, concept X may have been ideal in the operations department to some degree but the Advertising and marketing department would require reliance on Concept Y in order to get the creativity as well as creativity from the teams.

Tuckman's Teamwork Concept: As far as Lewis's concern regarding bringing consistency in between the advertising and advertising department is concerned, this would at first lead to contrast as discussed by Bruce Tuckman in his 'Synergy Concept'. By integrating the marketing as well as advertising division's work, there may be the very same initial disconnect which might lead to the second phase of 'storming' where the groups challenge one an additional.

When individuals are presented with modification, they get in stage one as well as so there might be feelings like unhappiness, uncertainty, aggravation, rage, anxiety, denial as well as disorientation.The situation at the advertising and marketing department of Note On Bankruptcy In The United States is similar so Lewis can obtain comfortable with the suggestion that it is not remarkable actions. It is throughout this stage that Lewis will certainly have to give advice to the division so that they can find a feeling of instructions. It can be seen just how Krasnow has currently made this shift much easier by making Lewis obtain entailed in the division a year before his real separation.
Vrio Analysis
Maslow's Need hierarchy: The OB problem pertaining to instability at the office has been set off to start with by the adjustment in management as well as secondly by the truth that the merging will certainly no more be initiated. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has talks about the significance of 'security requires as being a reduced level requirement of a human for causing inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the requirement to feel secure and unharmed' is at the 2nd level of needs. Before an employee can be made to establish emotionally, he needs to have his 'Physical 'and 'Security' needs met. This shows that unless the personnel are made to feel secure concerning their present work condition in Note On Bankruptcy In The United States they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Note On Bankruptcy In The United States Case Study

Ramification of Analysis.

The OB analysis has actually looked at various concepts to recognize exactly how to handle the current situation at hand. The complying with three choices have actually been recommended to assist Lewis take care of the organizational difficulties in the marketing division. Each of these choices has actually been recommended for alleviating the shift needed to bring the advertising and marketing division according to the demands of the market as well as for making the social modification that would comply with when the present leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and Manufacturing features. Integration of Marketing with Operations.

Examination of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis during the earlier merging days has proficiency in business-to-business advertising and marketing along with company and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to deal with both advertising as well as marketing functions.

The benefit of this method is that it will incorporate both functions while minimizing the requirement for hiring an additional resource for marketing. Lewis would be heading the advertising and marketing department and in any kind of case her replacement would be required for the existing role that she is performing. The disadvantage of this alternative is that outside hiring might bring about bitterness from internal employees that might be looking at the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and also Production: Offered the competitive pressures as well as high quality job needed from the advertising company, it is suggested that Lewis ought to allow the manufacturing system to be a separate function from the marketing device. Because a lot of advertising agencies had these 2 features as different units, it makes even more feeling to adhere to the standard.

Combination of Advertising with Procedures: Since Lewis is currently looking after the marketing as well as procedures departments at the same time; it makes sense to integrate the two functions given that she has actually been successfully looking after both ends. The fact that the two departments currently have significant distinctions over allowance of sources recommends that this combination might be able to cause harmony specifically as Lewis would be heading both ends.However there are different disadvantages of this move particularly as it would put way too much burden over Lewis's shoulders. The fact that Lewis needs to adjust her management design for the advertising department recommends that these 2 departments would be culturally varied. Lewis may not be able to apply one kind of leadership design to both departments which might result in inefficiency in either one of the 2 features.


An analysis of the 3 alternatives indicates that assimilation of marketing as well as procedures would certainly not be a viable relocation due to the vast distinctions in between the two departments despite the truth that currently Lewis is managing both. While splitting up of the manufacturing feature might have been a favorable step for the advertising and marketing division, the reality that it would imply placing a 3rd feature under Lewis's wing indicates this should be avoided.

Activity Strategy.
Lewis will certainly take control of the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

Manufacturing feature will remain part of marketing under marketing feature.

Lewis will certainly divide herself from operations.

A democratic leadership style with employee empowerment will be made use of in marketing department.

Open up door policy as well as emphasis on cross department interaction will be focused on getting rid of dissonance.

Contingency strategy.

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