Menu

Om Scott And Sons Co Leveraged Buyout Case Study Help

CASE STUDY

Home >> Harvard >> Om Scott And Sons Co Leveraged Buyout >>

Om Scott And Sons Co Leveraged Buyout Case Study Solution

Background and Facts

Om Scott And Sons Co Leveraged Buyout an office supplies seller for small and moderate sized organisations has just recently been associated with planning for a merging with its rival House Deport, which has actually influenced performance degrees in departmentswith the elderly supervisor involved in lawful difficulties put forth by the government Trade Compensation. With the Marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the duty in the near future. With difficulties in the kind of a potential cultural change as well as reduced worker morale, the organization is in need of a complete reengineering effort at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible social change at the advertising division of Om Scott And Sons Co Leveraged Buyout is increasing unpredictability in the workplace leading to various challenges 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 impacting strategic choices since Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Profession Compensation's treatment while doing so. Offered the truth that the store has an international visibility 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 Commission's antitrust match against the merging took up important time of the company's senior management recommending that 'political' factors can have significant ramifications for a worldwide organisation.

Economic Factors: Financial factors such as the appearance of local business in the international circumstance suggest that Om Scott And Sons Co Leveraged Buyout is growing in a setting where there is possible development of services. Truth that shop consumers are mainly looking for workplace materials for house workplaces recommends that the market has a rising fad of entrepreneurs and home based businesses.

Social factors: Social fads in the economic situation reveal that consumers are trying to find benefit as well as attractive costs. Marketing research shows how the consumer for Om Scott And Sons Co Leveraged Buyout does not have awareness regarding discovering solutions which can provide a combination of benefit as well as affordable.

Technical factors: Modern technology plays an important duty in Om Scott And Sons Co Leveraged Buyout's business technique especially as the organization is piloting Modern technology centers which would certainly offer modern technology sales and also assistance in the type of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and Effects.

Numerous underlying Business Habits issues can be seen in Om Scott And Sons Co Leveraged Buyout's case as highlighted in this area.

Concerns regarding social change: There is worry about a social adjustment that would certainly happen as soon as Todd Krasnow leaves from his setting as the Exec Vice President of Advertising with a lot of the personnel currently showing unhappiness over this potential move. This expected change has produced stress in the workplace which has been coupled with the past tension of preparing the company for a potential merger with Residence Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is shortage of personnel that can match the demanding atmosphere of a busy company. Not just does this result in trouble in locating the ideal individuals, it puts tension on new hires as can not endure the rate as well as stress that the organization anticipates them to birth.

Twin Reporting Lines: Novices locate this organizational society cumbersome as well as hard to manage especially as populated line connections are implied to be weak generally as well as objective setting and efficiency analysis is still done by the strong line supervisor. This implies that beginners could lose clarity regarding their particular functions and purposes specifically as populated line coverage does not keep them in straight communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been hypothesized that the last would certainly take Krasnow's placement came as a strike to her morale. Lewis may have been capable as well as ideal for the job but the truth that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Fear & Job Instability: Worry as well as instability can be identified as two significant problems that Lewis would certainly be handling specifically as the merger has actually now be terminated and two senior execs of the advertising division would be leaving. The whole duty of the department would be dropping on Lewis's shoulders who would certainly not simply be in charge of brining concerning a cultural adjustment yet would certainly likewise need to prove herself in her new role.

Inappropriate Management Design of Leader: Lewis's management design as well as its incompatibility with the advertising division's duty can also be seen as an OB obstacle especially as she has actually been utilized to managing issues in the operations division where personnel are shown to focus on procedures as well as get them. The advertising division on the other hand can be viewed as a team of individuals that are utilized to being supported by Krasnow that focused a lot more on output than processes.

Interdepartmental Arguments: Interdepartmental disputes between three departments, advertising and marketing, merchandizing as well as procedures respectively over the allotment of the marketing mix can be determined as an additional OB issue. Although the marketing division does not share the exact same vision as the other two departments relating to the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and operations divisions do not concur over the advertising and marketing mix allocation among one another either.

Fragmentation in Advertising And Marketing Department: Disintegration in between the marketing and advertising divisions can be recognized as an additional OB issue which might need additional interest. The fact that the advertising and marketing sections in the marketing division are separated is preventing both divisions from acquiring from each other's experience and also proficiency. Integration of advertising and marketing with merchandising and also operations would certainly come to be harder if the advertising and marketing department itself is broken down which can be another possible OB worry.

Om Scott And Sons Co Leveraged Buyout Analysis

Various concepts have been made use of to describe the situations to obtain additional clarity concerning the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors believe that juniors are easy as well as lazy, have little passion and also withstand modification. The circumstance at Om Scott And Sons Co Leveraged Buyout is not entirely adhering to Theory X, it can be seen that new hires are discovering this atmosphere instead difficult which may eventually lead to a better inclination of the management in the direction of Concept X. Also while assessing Lewis's monitoring design, theory X may have been appropriate in the operations division to some degree yet the Marketing division would certainly need dependence on Theory Y in order to get the creative thinking and originality from the groups.

Tuckman's Teamwork Theory: As much as Lewis's concern concerning bringing harmony in between the advertising and advertising and marketing department is worried, this would originally lead to conflict as discussed by Bruce Tuckman in his 'Teamwork Theory'. By incorporating the marketing as well as marketing division's work, there may be the very same initial disconnect which might lead to the second stage of 'storming' where the teams challenge one another.

When people are provided with change, they get in phase one as well as so there might be emotions like sadness, unpredictability, aggravation, anger, worry, rejection and disorientation.The situation at the marketing division of Om Scott And Sons Co Leveraged Buyout is comparable so Lewis can get comfy with the suggestion that it is not extraordinary behavior. It is during this phase that Lewis will have to offer advice to the division so that they can locate a feeling of direction. It can be seen just how Krasnow has actually currently made this shift much easier by making Lewis get entailed in the division a year before his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has reviews the value of 'safety needs 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 feel secure as well as out of threat' is at the second level of demands. Prior to a worker can be made to create emotionally, he requires to have his 'Physiological 'as well as 'Security' needs fulfilled.

SWOT Analysis for Om Scott And Sons Co Leveraged Buyout Case Study



Effects of Analysis.

The OB analysis has actually checked out various concepts to comprehend just how to manage the existing circumstance available. The complying with three alternatives have been proposed to help Lewis deal with the organizational challenges in the advertising and marketing department. Each of these choices has actually been proposed for easing the shift needed to bring the advertising department in accordance with the needs of the market and also for making the cultural modification that would certainly follow when the current leader leaves.

Integration of advertising and marketing features. Dividing Adverting and Manufacturing features. Integration of Advertising with Procedures.

Examination of Alternatives.

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

The benefit of this strategy is that it will integrate both functions while lowering the requirement for working with an extra source for advertising. Lewis would certainly be heading the advertising division as well as in any case her substitute would certainly be required for the current role that she is carrying out. The downside of this option is that external hiring might produce animosity from interior employees that might be looking at the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and Manufacturing: Given the affordable stress as well as premium quality work called for from the ad agency, it is recommended that Lewis needs to permit the production system to be a separate feature from the advertising and marketing unit. Because most ad agency had these 2 functions as separate systems, it makes even more sense to comply with the norm. Both functions might be able to concentrate on their core activates extra successfully. However, the downside of this approach would certainly be that additional prices would have to be birthed for establishing separate production functions. A manufacturing head may have to be hired which might boost overheads for the organization.

Assimilation of Advertising with Operations: Since Lewis is already taking care of the advertising and marketing and also procedures divisions all at once; it makes sense to incorporate both features considering that she has been successfully taking care of both ends. The truth that the two departments already have major differences over allocation of sources recommends that this combination may be able to produce harmony especially as Lewis would certainly be heading both ends.However there are different drawbacks of this move specifically as it would put too much problem over Lewis's shoulders. The fact that Lewis needs to adjust her monitoring design for the advertising and marketing department suggests that these 2 divisions would be culturally diverse. In addition to this, Lewis might not be able to use one sort of management design to both divisions which can lead to ineffectiveness in either one of the two features.

Referral.



An assessment of the 3 alternatives shows that assimilation of marketing as well as operations would certainly not be a viable relocation due to the substantial distinctions in between the two divisions regardless of the fact that presently Lewis is managing both. While splitting up of the production function might have been a positive move for the marketing division, the fact that it would indicate placing a 3rd feature under Lewis's wing indicates this must be prevented.

Activity Strategy.
Recommendation
Lewis will take control of the function of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would be combined.

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

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

Lewis will certainly divide herself from procedures.

A democratic management design with worker empowerment will certainly be made use of in advertising department.

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

Contingency plan.

If the assimilation does not work out as prepared, a backup strategy would certainly follow which would divide the production function from the advertising and marketing feature to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the manufacturing feature will most definitely be separated by placing it under an SVP manufacturing.