Options Granting Case Study Help


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Options Granting Case Study Help

Background and Facts

Options Granting a workplace materials seller for tiny and also medium sized services has lately been involved in planning for a merging with its rival Home Deport, which has affected efficiency degrees in departmentswith the senior manager involved in lawful difficulties put forth by the government Profession Compensation. With the Marketing Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the future. With obstacles in the form of a prospective cultural modification and low staff member morale, the company wants a complete reengineering initiative at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The possible social change at the marketing department of Options Granting is enhancing uncertainty in the workplace bring about different difficulties for the Jeannie Lewis that 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 strategic decisions because Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Profession Compensation's treatment in the process. Provided the reality that the store has a global visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries may be able to affect efficiency or tactical objectives. Federal Trade Commission's antitrust match versus the merging occupied important time of the company's elderly administration suggesting that 'political' factors can have major effects for a global company.

Economic Factors: Financial factors such as the introduction of local business in the international circumstance suggest that Options Granting is flourishing in an environment where there is possible development of services. In addition to this, reality that store clients are mostly looking for workplace materials for office suggests that the marketplace has an increasing fad of business owners and also online organisations.

Social factors: Social fads in the economic situation show that consumers are looking for convenience as well as eye-catching rates. Market research demonstrates how the consumer for Options Granting lacks understanding regarding discovering services which can use a combination of ease and affordable.

Technological factors: Technology plays a crucial role in Options Granting's business approach particularly as the company is piloting Innovation facilities which would certainly provide innovation sales and also support in the type of memory upgrades, peripheral installments. (Summary of PARASITE in appendix 2).

OB Issues and also Effects.

Numerous underlying Organizational Behavior problems can be seen in Options Granting's case as highlighted in this area.

Apprehensions about cultural change: There is concern about a social modification that would certainly take place when Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with most of the staff members currently revealing unhappiness over this prospective relocation. This predicted adjustment has actually developed stress in the office which has been combined with the previous stress and anxiety of preparing the firm for a prospective merging with Residence Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is lack of workers that can match the demanding atmosphere of a hectic company. Not just does this cause problem in locating the best individuals, it places stress on brand-new hires as can not withstand the speed and also stress that the organization expects them to bear.

Twin Reporting Lines: Newcomers discover this organizational society cumbersome and difficult to handle especially as dotted line relationships are implied to be weaker generally and also objective setting and efficiency analysis is still done by the strong line supervisor. This indicates that newcomers could shed clarity about their corresponding roles and purposes specifically as dotted line coverage does not keep them in direct interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles although it had been hypothesized that the latter would certainly take Krasnow's position came as a blow to her spirits. Lewis may have been capable as well as suitable for the task yet the fact that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Worry & Work Insecurity: Fear as well as instability can be recognized as two major worries that Lewis would be taking care of specifically as the merger has actually currently be terminated as well as 2 elderly executives of the advertising department would be leaving. The whole responsibility of the division would certainly be falling on Lewis's shoulders who would certainly not just be in charge of brining about a social change but would additionally need to show herself in her brand-new function.

Incompatible Management Design of Leader: Lewis's management design as well as its conflict with the advertising and marketing division's duty can likewise be seen as an OB challenge particularly as she has actually been made use of to dealing with concerns in the operations department where workers are taught to focus on procedures and also obtain them. The advertising and marketing division on the various other hand can be viewed as a team of individuals who are utilized to being nurtured by Krasnow that concentrated a lot more on result than processes.

Interdepartmental Disputes: Interdepartmental arguments between three departments, advertising and marketing, merchandizing and procedures respectively over the allocation of the marketing mix can be determined as one more OB problem. The advertising division does not share the exact same vision as the other 2 departments concerning the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and procedures divisions do not agree over the advertising mix appropriation among one another either.

Fragmentation in Advertising And Marketing Department: Disintegration between the marketing and advertising departments can be determined as one more OB concern which can require further focus. The truth that the marketing and advertising areas in the advertising division are detached is stopping both departments from getting from each other's experience as well as knowledge. Combination of marketing with retailing and operations would certainly end up being harder if the advertising and marketing division itself is broken down which can be another prospective OB issue.

Options Granting Analysis

Various theories have actually been made use of to clarify the conditions to obtain further clearness about the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers think that juniors are easy and also careless, have little ambition as well as withstand change. The tough variation of this theory stressed browbeating, tight controls, threats and also penalties. With time it creates low performance, subtle sabotage and also rivalry (Deal, 2003). Although the situation at Options Granting is not totally adhering to Concept X, it can be seen that new hires are finding this atmosphere instead stressful which might at some point lead to a better disposition of the administration towards Concept X. Based on McGregor's advocated view, which he called Concept Y, the important job of the monitoring is to prepare organizational conditions to ensure that people can attain their very own goals best by routing their initiatives towards business benefits. If people find no fulfillment in their work, the administration would have little option but to rely on theory X and external control (Bargain, 2003). Also while assessing Lewis's monitoring design, theory X may have appropriated in the procedures department to some extent however the Advertising and marketing department would need dependence on Concept Y to get the creative thinking and creativity from the teams.

Tuckman's Synergy Theory: As for Lewis's issue about bringing consistency in between the marketing and advertising division is worried, this would initially result in conflict as talked about by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's theory shown in appendix 3, throughout the first phase of team development, individuals may not bond, as they are busy locating their location in the group. By incorporating the advertising and marketing department's job, there might be the same first disconnect which might bring about the second phase of 'storming' where the teams test one another. It is just throughout the third stage or 'norming' when they would certainly come with each other to share suggestions prior to the group can bring about synergy in the fourth stage 'performing'.

When individuals are provided with modification, they get in stage one and so there may be feelings like sadness, uncertainty, aggravation, anger, worry, rejection as well as disorientation.The circumstance at the advertising and marketing division of Options Granting is comparable so Lewis can obtain comfy with the concept that it is not phenomenal behavior. It is throughout this phase that Lewis will certainly have to offer assistance to the department so that they can find a feeling of instructions. It can be seen exactly how Krasnow has currently made this transition easier by making Lewis get entailed in the department a year prior to his real departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has reviews the relevance of 'security requires as being a lower level demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel secure as well as out of danger' is at the 2nd level of needs. Before a worker can be made to create emotionally, he needs to have his 'Physiological 'and 'Security' needs satisfied.

SWOT Analysis for Options Granting Case Study

Implication of Analysis.

The OB analysis has actually looked at numerous concepts to understand how to handle the existing scenario available. The adhering to 3 alternatives have actually been proposed to assist Lewis deal with the business challenges in the marketing division. Each of these options has been proposed for relieving the transition needed to bring the advertising division according to the requirements of the marketplace and for making the cultural modification that would certainly adhere to when the present leader leaves.

Combination of marketing and advertising features. Separating Adverting as well as Production functions. Integration of Marketing with Operations.

Analysis of Alternatives.

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

The benefit of this strategy is that it will incorporate both functions while decreasing the requirement for working with an additional source for advertising. Lewis would be heading the advertising and marketing division and also in any type of case her substitute would certainly be needed for the present role that she is executing. The disadvantage of this alternative is that outside hiring might bring about resentment from inner workers who may be looking at the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Manufacturing: Given the affordable pressures as well as high quality job needed from the advertising company, it is recommended that Lewis must allow the manufacturing unit to be a different feature from the advertising unit. Given that a lot of marketing firms had these 2 functions as separate units, it makes more feeling to adhere to the standard.

Assimilation of Advertising with Procedures: Since Lewis is already taking care of the advertising and also operations divisions simultaneously; it makes sense to integrate the 2 functions given that she has actually been efficiently taking care of both ends. The truth that Lewis has to adjust her administration design for the advertising and marketing division suggests that these two departments would be culturally varied.


An evaluation of the three alternatives suggests that integration of advertising and procedures would not be a feasible move due to the substantial differences in between the two divisions despite the reality that presently Lewis is managing both. While splitting up of the manufacturing function might have been a positive move for the advertising and marketing department, the truth that it would certainly suggest placing a 3rd feature under Lewis's wing indicates this should be stayed clear of.

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

Marketing and advertising features would certainly be combined.

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

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

Lewis will separate herself from operations.

A democratic leadership style with employee empowerment will certainly be made use of in advertising division.

Open door policy and emphasis on cross department interaction will be aimed at eliminating discord.

Contingency strategy.

If the assimilation does not work out as intended, a backup strategy would follow which would certainly separate the production feature from the advertising function to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the manufacturing feature will definitely be divided by placing it under an SVP manufacturing.