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Olympic Financial Ltd Case Study Solution

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Olympic Financial Ltd Case Study Help

Background and Facts

Olympic Financial Ltd an office products seller for small and also moderate sized businesses has recently been involved in planning for a merger with its competitor Home Deport, which has influenced performance levels in departmentswith the elderly manager associated with legal complications presented by the federal Profession Commission. With the Advertising and marketing Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the duty in the future. With difficulties in the kind of a prospective social modification and also low staff member morale, the company needs a full reengineering initiative at the advertising division.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural change at the advertising division of Olympic Financial Ltd is enhancing unpredictability in the working environment causing different challenges for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting tactical choices considering that Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Profession Payment's treatment in the process. Provided the truth that the shop has a global visibility with branches in UK, USA, Canada as well as Germany, political factors in each of these countries might be able to impact efficiency or tactical goals. Federal Profession Compensation's antitrust suit against the merger occupied useful time of the organization's senior management suggesting that 'political' factors can have significant ramifications for a worldwide service.

Economic Factors: Financial factors such as the introduction of small companies in the international circumstance recommend that Olympic Financial Ltd is growing in an atmosphere where there is prospective development of businesses. Along with this, reality that store consumers are mostly searching for office supplies for home offices recommends that the market has an increasing pattern of business owners as well as online services.

Social factors: Social fads in the economic situation reveal that clients are searching for benefit in addition to appealing rates. Market research demonstrates how the consumer for Olympic Financial Ltd does not have understanding concerning locating remedies which can provide a mix of comfort and also inexpensive.

Technological factors: Innovation plays an important role in Olympic Financial Ltd's organisation strategy specifically as the company is piloting Modern technology centers which would offer modern technology sales as well as support in the type of memory upgrades, peripheral setups. (Recap of PARASITE in appendix 2).

OB Issues and Effects.

Several underlying Organizational Habits concerns can be seen in Olympic Financial Ltd's case as highlighted in this area.

Concerns about social modification: There is worry regarding a social adjustment that would occur once Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with a lot of the staff members currently revealing discontent over this prospective move. This predicted change has actually created stress and anxiety in the office which has been combined with the previous tension of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Demanding Job Environment for Newcomers: There is shortage of workers that can match the difficult atmosphere of a busy company. Not only does this cause trouble in locating the right individuals, it puts tension on new hires as can not hold up against the pace as well as pressure that the company expects them to bear.

Dual Reporting Lines: Newbies locate this organizational society cumbersome and also challenging to cope with specifically as populated line relationships are meant to be weak generally and objective setting and efficiency evaluation is still done by the solid line supervisor. This implies that novices could lose quality about their particular duties and also purposes specifically as populated line coverage does not maintain them in direct interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles even though it had been speculated that the latter would certainly take Krasnow's setting came as a blow to her morale. Lewis might have been qualified and also ideal for the job yet the fact that Kransnow's separation would certainly make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Concern & Work Instability: Fear and also insecurity can be identified as 2 significant worries that Lewis would be taking care of especially as the merging has actually currently be terminated and also 2 senior executives of the advertising and marketing division would certainly be leaving. The whole responsibility of the division would certainly be falling on Lewis's shoulders that would certainly not just be in charge of brining about a social modification but would certainly also need to confirm herself in her new function.

Inappropriate Monitoring Design of Leader: Lewis's management style and its incompatibility with the advertising department's role can additionally be seen as an OB challenge particularly as she has actually been made use of to taking care of concerns in the operations division where personnel are shown to concentrate on procedures and also get them. The advertising and marketing division on the other hand can be viewed as a group of individuals who are used to being supported by Krasnow who concentrated more on result than processes.

Interdepartmental Differences: Interdepartmental disputes in between 3 departments, marketing, merchandizing as well as procedures specifically over the allotment of the advertising and marketing mix can be determined as another OB issue. Although the advertising division does not share the very same vision as the various other 2 departments concerning the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and also procedures departments do not agree over the marketing mix allowance amongst each other either.

Fragmentation in Advertising Department: Fragmentation in between the advertising and marketing divisions can be identified as another OB problem which can need more focus. The reality that the marketing and advertising areas in the advertising division are separated is preventing both divisions from getting from each other's experience and also expertise. Integration of marketing with retailing and procedures would come to be harder if the marketing department itself is degenerated which can be another potential OB problem.

Olympic Financial Ltd Analysis

Various concepts have been used to clarify the situations to obtain more quality concerning the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors believe that staffs are passive as well as lazy, have little passion and also resist adjustment. The difficult variation of this concept highlighted coercion, limited controls, dangers as well as penalties. In time it generates reduced productivity, refined sabotage as well as competition (Deal, 2003). The circumstance at Olympic Financial Ltd is not entirely following Concept X, it can be seen that brand-new hires are discovering this atmosphere rather difficult which might ultimately lead to a higher disposition of the monitoring towards Theory X. Based on McGregor's advocated view, which he called Concept Y, the essential job of the monitoring is to organize business problems so that people can attain their own objectives best by guiding their initiatives in the direction of business benefits. If people locate no satisfaction in their work, the monitoring would have little option yet to rely upon theory X as well as outside control (Deal, 2003). Even while examining Lewis's monitoring design, concept X may have been suitable in the operations department to some extent but the Marketing division would certainly call for dependence on Concept Y so as to get the creative thinking and creativity from the groups.

Tuckman's Synergy Theory: As for Lewis's worry regarding bringing consistency between the advertising and marketing division is concerned, this would at first cause clash as reviewed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, throughout the preliminary stage of team development, people might not bond, as they are busy discovering their area in the team. By integrating the marketing and advertising division's work, there might coincide first detach which can cause the 2nd stage of 'storming' where the teams challenge one another. Nevertheless, it is just during the 3rd phase or 'norming' when they would come together to share suggestions prior to the team can cause harmony in the 4th phase 'doing'.

Bridges' Shift Version: As per William Bridge's concept (appendix 4), individuals are fairly uneasy with modification, which is obvious by the circumstance at Olympic Financial Ltd The scenario can be viewed as a normal training course of life if is studied based on Bridge's concept where he discusses that people undergo 3 phases of change when they experience change. 'End, shedding and also Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When individuals are presented with adjustment, they get in stage one and so there may be emotions like sadness, unpredictability, frustration, rage, fear, denial and disorientation.The circumstance at the advertising and marketing department of Olympic Financial Ltd is comparable so Lewis can get comfortable with the concept that it is not extraordinary behavior. In the 2nd stage, there may be a demand to connect the gap between the new and old culture so Lewis may have to face this challenge once Krasnow leaves. There might be low morale and also reduced efficiency at this stage which need to not be taken as an obstacle. It is during this stage that Lewis will need to give support to the department so that they can discover an orientation. It can be seen exactly how Krasnow has actually already made this change easier by making Lewis obtain associated with the division a year before his real departure. As per Bridges' Design, phase 3 will cause visibility to knowing, High power as well as commitment as individuals will welcome the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has discusses the value of 'protection requires as being a lower degree demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel protected as well as out of threat' is at the 2nd degree of needs. Before a staff member can be made to develop psychologically, he requires to have his 'Physiological 'and 'Safety and security' needs met.

SWOT Analysis for Olympic Financial Ltd Case Study



Implication of Analysis.

The OB analysis has actually checked out various theories to understand exactly how to handle the present situation handy. The following 3 options have actually been recommended to assist Lewis handle the organizational obstacles in the advertising department. Each of these choices has been suggested for easing the change required to bring the advertising department in accordance with the requirements of the market and also for making the cultural change that would certainly comply with once the current leader leaves.

Combination of advertising and marketing features. Separating Adverting and also Manufacturing features. Assimilation of Advertising And Marketing with Operations.

Examination of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merging days has expertise in business-to-business advertising along with agency as well as retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both advertising and marketing features.

The benefit of this strategy is that it will certainly incorporate both functions while minimizing the demand for hiring an extra resource for advertising. Lewis would certainly be heading the marketing department and in any case her substitute would be required for the present function that she is executing. The disadvantage of this option is that external hiring might produce animosity from inner employees who might be eying the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting as well as Manufacturing: Given the competitive pressures and also high quality job needed from the advertising firm, it is advised that Lewis should permit the production system to be a different function from the advertising unit. Given that many marketing agencies had these 2 functions as different units, it makes more feeling to comply with the norm.

Assimilation of Marketing with Procedures: Because Lewis is already taking treatment of the advertising and marketing as well as procedures departments all at once; it makes sense to incorporate the 2 features since she has been successfully taking treatment of both ends. The reality that Lewis has to adapt her administration design for the advertising division recommends that these two departments would be culturally diverse.

Recommendation.



An analysis of the three options shows that assimilation of advertising and marketing and operations would not be a feasible move due to the large distinctions in between the two departments regardless of the truth that presently Lewis is managing both. While splitting up of the manufacturing function may have been a positive relocation for the advertising division, the truth that it would certainly indicate placing a third feature under Lewis's wing implies this should be prevented.

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

Advertising and Marketing features would be merged.

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

Manufacturing function will certainly remain component of advertising under advertising and marketing feature.

Lewis will divide herself from procedures.

A democratic management design with worker empowerment will certainly be used in marketing department.

Open up door policy and focus on cross department communication will certainly be aimed at removing disharmony.

Contingency strategy.

If the combination does not work out as planned, a contingency plan would certainly adhere to which would separate the production function from the marketing feature to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the marketing division without an SVP. Because case the manufacturing function will certainly be divided by putting it under an SVP manufacturing.