Note On Commodity Futures Case Study Solution


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Note On Commodity Futures Case Study Help

Background and Facts

Note On Commodity Futures an office products seller for tiny and also medium sized services has actually recently been involved in preparing for a merging with its rival House Deport, which has influenced performance degrees in departmentswith the senior supervisor involved in legal difficulties put forth by the government Profession Compensation. With the Advertising and marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the duty in the future. With difficulties in the form of a prospective social adjustment and reduced worker morale, the company is in need of a total reengineering initiative at the advertising and marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The prospective social change at the advertising and marketing department of Note On Commodity Futures is enhancing unpredictability in the workplace resulting in numerous obstacles for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting tactical decisions since Stapes Inc. needed to desert its strategies of combining with Office Deport after the Federal Trade Commission's intervention at the same time. Offered the truth that the store has a worldwide presence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations might have the ability to impact performance or tactical objectives. Federal Profession Compensation's antitrust suit versus the merger took up beneficial time of the organization's senior administration suggesting that 'political' factors can have significant effects for a global organisation.

Economic Factors: Financial factors such as the emergence of small businesses in the international situation suggest that Note On Commodity Futures is flourishing in an atmosphere where there is potential growth of organisations. Fact that store consumers are mostly looking for office supplies for residence workplaces suggests that the market has a climbing pattern of entrepreneurs and also residence based companies.

Social factors: Social patterns in the economic situation reveal that customers are looking for ease along with eye-catching prices. Market research shows how the customer for Note On Commodity Futures does not have awareness regarding discovering services which can use a mix of benefit and also affordable.

Technological factors: Modern technology plays an essential role in Note On Commodity Futures's service method specifically as the company is piloting Modern technology facilities which would certainly use technology sales as well as support in the kind of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues and Effects.

Several underlying Business Habits issues can be seen in Note On Commodity Futures's case as highlighted in this area.

Uneasiness about cultural modification: There is uneasiness about a social change that would certainly happen once Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising with the majority of the personnel already revealing discontent over this possible step. This predicted adjustment has produced stress in the workplace which has actually been combined with the past stress and anxiety of preparing the company for a possible merger with Home Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is lack of personnel that can match the stressful setting of a hectic organization. Not just does this bring about difficulty in locating the appropriate individuals, it places stress and anxiety on new hires as can not withstand the rate and also stress that the organization anticipates them to bear.

Double Reporting Lines: Novices locate this business culture cumbersome and also tough to deal with specifically as populated line connections are indicated to be weak in general and objective setup and performance analysis is still done by the strong line supervisor. This means that beginners might lose clearness concerning their corresponding roles and purposes especially as populated line coverage does not maintain them in straight communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had actually been hypothesized that the last would certainly take Krasnow's placement came as an impact to her spirits. Lewis might have been qualified and appropriate for the job however the fact that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.

Concern & Task Instability: Concern and insecurity can be determined as 2 significant problems that Lewis would certainly be managing particularly as the merger has actually currently be terminated as well as two senior executives of the advertising and marketing department would certainly be leaving. The entire responsibility of the division would be falling on Lewis's shoulders that would not just supervise of brining concerning a cultural adjustment however would certainly additionally need to confirm herself in her new function.

Inappropriate Monitoring Style of Leader: Lewis's management style and also its conflict with the advertising and marketing department's duty can also be seen as an OB difficulty particularly as she has been used to handling concerns in the operations division where workers are taught to focus on procedures and also obtain them. The marketing department on the other hand can be seen as a team of people who are used to being supported by Krasnow that focused more on output than processes.

Interdepartmental Disagreements: Interdepartmental disputes between 3 departments, marketing, merchandizing as well as operations specifically over the allotment of the marketing mix can be identified as an additional OB issue. Although the advertising and marketing department does not share the very same vision as the other 2 divisions concerning the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and also procedures divisions do not agree over the advertising and marketing mix allocation amongst each other either.

Fragmentation in Advertising Department: Disintegration in between the advertising and marketing divisions can be determined as an additional OB concern which can require additional attention. The reality that the marketing and advertising areas in the advertising and marketing division are disconnected is protecting against both departments from gaining from each various other's experience as well as proficiency. Integration of advertising and marketing with merchandising and procedures would certainly come to be more difficult if the advertising and marketing division itself is broken down which can be an additional potential OB concern.

Note On Commodity Futures Analysis

Various theories have been used to explain the circumstances to get additional clarity about the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that staffs are easy and also careless, have little passion as well as resist adjustment. The situation at Note On Commodity Futures is not completely adhering to Concept X, it can be seen that new hires are discovering this environment rather stressful which might eventually lead to a better disposition of the monitoring towards Concept X. Even while assessing Lewis's monitoring style, concept X may have been suitable in the operations division to some extent however the Advertising department would certainly need dependence on Theory Y in order to get the creative thinking and also originality from the groups.

Tuckman's Teamwork Concept: As far as Lewis's worry concerning bringing harmony between the advertising and advertising division is concerned, this would initially lead to contrast as gone over by Bruce Tuckman in his 'Team effort Theory'. By integrating the marketing as well as advertising department's work, there may be the very same initial detach which could lead to the 2nd phase of 'storming' where the teams test one another.

Bridges' Transition Version: According To William Bridge's concept (appendix 4), people are rather unpleasant with modification, which is apparent by the circumstance at Note On Commodity Futures The situation can be viewed as a typical program of life if is examined as per Bridge's theory where he discusses that people experience 3 stages of transition when they experience modification. 'Closing, shedding and also Letting go', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they get in stage one and so there may be emotions like unhappiness, uncertainty, irritation, anger, fear, rejection as well as disorientation.The situation at the marketing division of Note On Commodity Futures is comparable so Lewis can get comfortable with the concept that it is not phenomenal habits. In the 2nd stage, there may be a requirement to bridge the space between the new as well as old society so Lewis may have to face this ordeal when Krasnow leaves. There may be reduced spirits and also low efficiency at this stage which must not be taken as an obstacle. It is during this stage that Lewis will have to provide guidance to the department to make sure that they can find an orientation. It can be seen how Krasnow has actually already made this transition less complicated by making Lewis obtain involved in the department a year prior to his real separation. Based on Bridges' Version, stage 3 will certainly cause openness to learning, High energy and commitment as individuals will accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB problem related to instability at the workplace has been triggered firstly by the adjustment in administration as well as secondly by the truth that the merging will certainly no longer be initiated. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has talks about the significance of 'safety needs as being a reduced degree need of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to really feel secure and safe' goes to the second degree of needs. Prior to a staff member can be made to establish emotionally, he requires to have his 'Physiological 'and 'Safety and security' requires met. This indicates that unless the workers are made to really feel safe about their present work status in Note On Commodity Futures they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Note On Commodity Futures Case Study

Ramification of Analysis.

The OB analysis has actually looked at numerous concepts to recognize exactly how to handle the current situation available. The following three choices have been proposed to aid Lewis take care of the organizational obstacles in the advertising and marketing division. Each of these alternatives has actually been suggested for easing the transition required to bring the advertising department in accordance with the demands of the marketplace as well as for making the social adjustment that would follow once the current leader leaves.

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

Evaluation of Alternatives.

Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merger days has know-how in business-to-business advertising and marketing along with firm and also retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both marketing as well as advertising functions.

The advantage of this technique is that it will incorporate both features while lowering the requirement for employing an added resource for marketing. In addition to this, Lewis would be heading the advertising and marketing department and all the same her substitute would be needed for the present function that she is carrying out. The downside of this alternative is that exterior hiring might produce bitterness from inner personnel who may be looking at the placement of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and also Manufacturing: Given the affordable pressures and also high quality work needed from the advertising agency, it is recommended that Lewis should allow the manufacturing system to be a different function from the marketing system. Since a lot of ad agency had these two features as different systems, it makes even more feeling to follow the norm. Both functions may be able to focus on their core triggers much more successfully. The disadvantage of this method would be that additional prices would have to be borne for establishing up separate manufacturing functions. Along with this, a manufacturing head may need to be worked with which can boost overheads for the company.

Integration of Marketing with Workflows: Because Lewis is currently taking care of the advertising as well as procedures divisions at the same time; it makes sense to incorporate both functions because she has actually been efficiently dealing with both ends. The truth that both departments currently have significant distinctions over allocation of resources recommends that this integration might be able to produce consistency specifically as Lewis would be heading both ends.However there are numerous disadvantages of this relocation particularly as it would certainly put excessive burden over Lewis's shoulders. The reality that Lewis has to adjust her administration style for the marketing division recommends that these two divisions would be culturally diverse. Lewis may not be able to apply one type of management style to both departments which might result in ineffectiveness in either one of the 2 functions.


An evaluation of the three alternatives shows that assimilation of marketing as well as procedures would certainly not be a viable move as a result of the substantial differences in between the two departments despite the fact that currently Lewis is managing both. While separation of the production function may have been a favorable move for the advertising department, the reality that it would imply putting a 3rd feature under Lewis's wing implies this ought to be stayed clear of. The assimilation of the advertising and marketing department is the most effective option in terms of getting the optimum results from the division. An action plan for this choice is gone over listed below.

Activity Plan.
Lewis will certainly take over the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

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

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

Lewis will divide herself from procedures.

An autonomous management design with worker empowerment will certainly be used in advertising department.

Open up door policy and focus on cross departmental communication will certainly be focused on eliminating dissonance.

Backup strategy.

If the assimilation does not exercise as prepared, a backup strategy would certainly comply with which would certainly divide the production function from the advertising function to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising division without an SVP. Because case the production function will absolutely be divided by positioning it under an SVP manufacturing.