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Osg Corporation Risk Hedging Against Transaction Exposures Case Study Solution

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Osg Corporation Risk Hedging Against Transaction Exposures Case Study Analysis

Background and Facts

Osg Corporation Risk Hedging Against Transaction Exposures a workplace supplies merchant for small as well as moderate sized businesses has just recently been involved in planning for a merger with its rival House Deport, which has actually impacted performance levels in departmentswith the elderly manager involved in lawful complications put forth by the federal Profession Commission. With the Advertising and marketing Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the near future. With difficulties in the form of a prospective cultural change and reduced worker morale, the organization needs a complete reengineering effort at the marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural change at the marketing division of Osg Corporation Risk Hedging Against Transaction Exposures is increasing uncertainty in the working environment resulting in various challenges for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting tactical decisions considering that Stapes Inc. needed to abandon its plans of combining with Workplace Deport after the Federal Profession Commission's treatment in the process. Provided the fact that the store has an international visibility with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries may be able to impact efficiency or strategic goals. Federal Profession Payment's antitrust fit against the merging occupied valuable time of the organization's senior administration recommending that 'political' factors can have significant ramifications for a worldwide business.

Economic Factors: Economic factors such as the emergence of small businesses in the worldwide situation recommend that Osg Corporation Risk Hedging Against Transaction Exposures is flourishing in a setting where there is prospective development of organisations. Truth that store clients are mostly looking for office supplies for residence workplaces recommends that the market has a climbing fad of business owners as well as home based organisations.

Social factors: Social patterns in the economy show that clients are trying to find benefit as well as attractive costs. Market research demonstrates how the customer for Osg Corporation Risk Hedging Against Transaction Exposures does not have understanding concerning discovering options which can provide a mix of comfort and inexpensive.

Technological factors: Technology plays a crucial function in Osg Corporation Risk Hedging Against Transaction Exposures's company method particularly as the organization is piloting Technology facilities which would offer modern technology sales as well as support in the form of memory upgrades, peripheral installments. (Recap of INSECT in appendix 2).

OB Issues and Effects.

Numerous underlying Organizational Habits problems can be seen in Osg Corporation Risk Hedging Against Transaction Exposures's case as highlighted in this section.

Concerns about cultural change: There is uneasiness concerning a social modification that would certainly take place when Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising And Marketing with most of the employee already showing unhappiness over this possible relocation. This anticipated modification has actually created anxiety in the workplace which has actually been coupled with the past stress and anxiety of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is shortage of employees that can match the demanding atmosphere of a fast-paced organization. Not just does this cause problem in finding the right individuals, it places stress on brand-new hires as can not stand up to the rate as well as stress that the organization anticipates them to bear.

Double Coverage Lines: Newcomers locate this organizational culture troublesome and also tough to deal with especially as dotted line connections are meant to be weaker in general and objective setting as well as efficiency examination is still done by the strong line supervisor. This suggests that newbies might shed clearness regarding their particular functions and goals specifically as populated line reporting does not maintain them in direct interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been hypothesized that the last would take Krasnow's position came as a strike to her spirits. Lewis might have been capable and also ideal for the task yet the reality that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Worry & Work Instability: Fear and instability can be determined as two significant worries that Lewis would certainly be managing specifically as the merger has currently be terminated as well as 2 elderly executives of the advertising and marketing department would be leaving. The whole obligation of the division would certainly be falling on Lewis's shoulders who would not just supervise of brining about a cultural change yet would certainly likewise have to show herself in her new function.

Incompatible Management Design of Leader: Lewis's monitoring style as well as its conflict with the advertising division's role can additionally be viewed as an OB obstacle especially as she has actually been utilized to handling issues in the procedures division where personnel are educated to concentrate on processes as well as get them right. The advertising division on the other hand can be seen as a team of people that are utilized to being supported by Krasnow who concentrated more on result than procedures.

Interdepartmental Differences: Interdepartmental arguments between 3 divisions, advertising and marketing, merchandizing as well as procedures specifically over the allowance of the advertising and marketing mix can be identified as an additional OB worry. Although the advertising division does not share the same vision as the various other two divisions regarding the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and also operations departments do not agree over the advertising and marketing mix allowance amongst each other either.

Disintegration in Marketing Division: Fragmentation in between the marketing and advertising divisions can be recognized as one more OB issue which can require additional focus. The reality that the advertising and marketing areas in the advertising and marketing department are disconnected is preventing both departments from getting from each other's experience as well as expertise. Integration of marketing with retailing as well as procedures would end up being harder if the marketing division itself is broken down which can be an additional potential OB worry.

Osg Corporation Risk Hedging Against Transaction Exposures Analysis

Numerous concepts have been made use of to describe the conditions to obtain more clarity concerning the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers believe that subordinates are easy and careless, have little passion as well as withstand adjustment. The scenario at Osg Corporation Risk Hedging Against Transaction Exposures is not completely following Theory X, it can be seen that brand-new hires are locating this atmosphere instead difficult which may eventually lead to a higher disposition of the monitoring towards Concept X. Even while evaluating Lewis's management design, theory X may have been appropriate in the procedures department to some extent yet the Advertising division would require dependence on Concept Y in order to get the creativity and also originality from the teams.

Tuckman's Synergy Concept: As far as Lewis's issue concerning bringing consistency between the marketing and advertising department is worried, this would originally lead to contrast as discussed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). According to Tuckman's theory displayed in appendix 3, throughout the first phase of group development, individuals may not bond, as they are hectic locating their area in the team. By integrating the marketing and advertising division's work, there may be the same initial separate which can result in the second phase of 'storming' where the groups challenge each other. However, it is only during the third phase or 'norming' when they would certainly collaborate to share concepts prior to the team can cause harmony in the 4th phase 'executing'.

Bridges' Shift Model: Based On William Bridge's concept (appendix 4), individuals are fairly uncomfortable with adjustment, which is evident by the situation at Osg Corporation Risk Hedging Against Transaction Exposures The circumstance can be seen as a normal course of life if is studied as per Bridge's concept where he discusses that individuals go through 3 phases of change when they experience change. 'Closing, losing and also Releasing', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When individuals exist with adjustment, they get in stage one and so there might be feelings like sadness, uncertainty, aggravation, rage, anxiety, denial and also disorientation.The scenario at the advertising and marketing division of Osg Corporation Risk Hedging Against Transaction Exposures is similar so Lewis can get comfortable with the suggestion that it is not extraordinary actions. In the 2nd stage, there might be a requirement to bridge the void between the new as well as old society so Lewis may have to encounter this ordeal once Krasnow leaves. There might be reduced morale and reduced performance at this phase which must not be taken as an obstacle. It is throughout this phase that Lewis will certainly have to offer assistance to the department so that they can find an orientation. It can be seen exactly how Krasnow has already made this transition easier by making Lewis get involved in the division a year prior to his actual separation. According to Bridges' Model, stage 3 will bring about visibility to learning, High power and also dedication as individuals will welcome the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Requirement pecking order: The OB problem pertaining to insecurity at the work environment has been caused firstly by the modification in monitoring and second of all by the truth that the merging will certainly no longer be launched. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has goes over the relevance of 'security needs as being a reduced level need of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to really feel protected and unharmed' is at the second degree of requirements. Prior to an employee can be made to create psychologically, he requires to have his 'Physiological 'and also 'Security' requires satisfied. This suggests that unless the personnel are made to really feel protected about their existing work condition in Osg Corporation Risk Hedging Against Transaction Exposures they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Osg Corporation Risk Hedging Against Transaction Exposures Case Study



Implication of Analysis.

The OB analysis has actually taken a look at various concepts to recognize how to manage the existing scenario at hand. The complying with three choices have actually been suggested to aid Lewis deal with the organizational obstacles in the advertising and marketing division. Each of these alternatives has actually been suggested for relieving the shift needed to bring the marketing division in accordance with the needs of the market and also for making the social adjustment that would follow once the existing leader leaves.

Assimilation of advertising and marketing functions. Dividing Adverting and Production features. Assimilation of Advertising with Procedures.

Evaluation of Alternatives.

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

The advantage of this approach is that it will certainly integrate the two functions while lowering the requirement for employing an extra source for advertising. Lewis would certainly be heading the advertising and marketing department and also in any type of case her replacement would be needed for the existing role that she is executing. The downside of this option is that outside hiring may bring about resentment from inner personnel that might be looking at the placement of EVP after Lewis takes over Krasnow's position.

Separating Adverting and also Manufacturing: Provided the competitive stress and excellent quality job needed from the ad agency, it is recommended that Lewis needs to allow the production device to be a different function from the advertising system. Considering that most advertising agencies had these 2 features as separate units, it makes more feeling to adhere to the norm. Along with this, both functions may be able to focus on their core turns on much more efficiently. The negative aspect of this strategy would be that additional prices would have to be borne for setting up separate manufacturing features. A production head might have to be worked with which could raise overheads for the organization.

Combination of Advertising And Marketing with Workflows: Considering that Lewis is already taking treatment of the marketing as well as operations divisions concurrently; it makes sense to integrate the 2 functions because she has actually been successfully taking treatment of both ends. The fact that Lewis has to adapt her monitoring design for the advertising and marketing department suggests that these two departments would certainly be culturally varied.

Recommendation.



An analysis of the 3 alternatives shows that combination of marketing as well as procedures would certainly not be a possible relocation due to the huge differences between the 2 departments in spite of the fact that currently Lewis is dealing with both. While splitting up of the manufacturing function may have been a positive action for the marketing division, the reality that it would certainly indicate positioning a 3rd feature under Lewis's wing indicates this ought to be avoided.

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

Marketing and advertising functions would certainly be merged.

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

Manufacturing feature will continue to be component of marketing under marketing function.

Lewis will divide herself from operations.

A democratic leadership design with staff member empowerment will certainly be made use of in advertising and marketing division.

Open door policy and also focus on cross departmental interaction will be focused on removing dissonance.

Backup strategy.

If the integration does not work out as planned, a contingency strategy would adhere to which would separate the manufacturing function from the advertising and marketing function 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 department without an SVP. Because case the manufacturing feature will definitely be separated by placing it under an SVP production.