Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd Case Study Analysis


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Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd Case Study Solution

Background and Facts

Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd an office products merchant for tiny as well as medium sized businesses has actually just recently been involved in planning for a merger with its competitor Residence Deport, which has impacted effectiveness levels in departmentswith the senior supervisor associated with legal complications put forth by the government Trade Compensation. With the Advertising Head advancing the information of his departure from the business in one year, Jeannie Lewis, the current head of operations has been asked to take the role in the future. With difficulties in the type of a potential cultural change and also reduced staff member morale, the organization wants a complete reengineering initiative at the advertising division.

Trouble Statement
Porter's 5 Forces Analysis
The possible social change at the marketing division of Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd is raising uncertainty in the workplace resulting in various challenges for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting tactical decisions considering that Stapes Inc. needed to desert its strategies of combining with Office Deport after the Federal Trade Payment's treatment in the process. Given the truth that the store has an international visibility with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations might have the ability to influence performance or critical goals. Federal Profession Payment's antitrust suit versus the merging occupied valuable time of the organization's senior administration suggesting that 'political' factors can have serious ramifications for a global organisation.

Economic Factors: Financial factors such as the introduction of small companies in the international situation recommend that Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd is prospering in a setting where there is prospective growth of organisations. Reality that shop customers are primarily looking for office products for home workplaces suggests that the market has a climbing trend of business owners and house based organisations.

Social factors: Social fads in the economic climate show that clients are seeking comfort along with appealing costs. Marketing research demonstrates how the consumer for Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd lacks understanding about discovering remedies which can provide a mix of comfort and also inexpensive.

Technical factors: Technology plays a crucial role in Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd's organisation strategy especially as the organization is piloting Innovation facilities which would use innovation sales and support in the type of memory upgrades, peripheral installations. (Recap of PARASITE in appendix 2).

OB Issues and also Effects.

Several underlying Organizational Habits issues can be seen in Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd's case as highlighted in this area.

Apprehensions about social change: There is uneasiness regarding a social change that would occur when Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with most of the personnel already showing unhappiness over this possible move. This predicted change has actually produced stress in the workplace which has actually been paired with the past stress and anxiety of preparing the firm for a prospective merging with House Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is shortage of workers that can match the demanding atmosphere of a hectic organization. Not only does this bring about trouble in discovering the best individuals, it puts stress on brand-new hires as can not stand up to the pace as well as pressure that the organization anticipates them to birth.

Double Reporting Lines: Beginners find this organizational culture troublesome as well as difficult to manage specifically as populated line connections are indicated to be weaker generally and also unbiased setting and efficiency evaluation is still done by the solid line supervisor. This means that novices can shed clearness concerning their corresponding duties and also goals specifically as populated line reporting does not keep them in straight communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been hypothesized that the latter would certainly take Krasnow's position came as a blow to her morale. Lewis may have been capable and also appropriate for the task but the reality that Kransnow's departure would make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Anxiety & Work Instability: Worry as well as instability can be determined as 2 significant problems that Lewis would certainly be taking care of specifically as the merging has now be terminated and also 2 senior executives of the advertising department would certainly be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders who would certainly not simply be in charge of brining regarding a cultural modification however would also need to verify herself in her brand-new role.

Incompatible Monitoring Design of Leader: Lewis's monitoring design as well as its conflict with the marketing department's function 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 department where personnel are taught to focus on processes and obtain them. The advertising division on the other hand can be viewed as a team of people that are used to being nurtured by Krasnow that concentrated a lot more on result than processes.

Interdepartmental Disputes: Interdepartmental arguments in between three divisions, advertising, merchandizing and also operations specifically over the appropriation of the advertising mix can be recognized as another OB problem. Although the advertising division does not share the same vision as the other 2 departments regarding the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing as well as operations departments do not concur over the advertising and marketing mix allowance amongst one another either.

Disintegration in Advertising And Marketing Division: Disintegration in between the advertising and marketing divisions can be identified as another OB concern which can require more focus. The fact that the marketing and advertising areas in the advertising division are separated is protecting against both divisions from acquiring from each other's experience as well as competence. Combination of marketing with retailing as well as procedures would end up being harder if the advertising department itself is disintegrated which can be another potential OB worry.

Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd Analysis

Various theories have actually been utilized to describe the conditions to get additional quality about the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that staffs are passive as well as lazy, have little passion as well as resist change. The circumstance at Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd is not totally following Theory X, it can be seen that new hires are finding this environment instead stressful which may eventually lead to a better disposition of the management in the direction of Concept X. Also while examining Lewis's management design, concept X may have been appropriate in the operations division to some level however the Advertising and marketing department would certainly need reliance on Concept Y in order to get the creativity and also originality from the groups.

Tuckman's Teamwork Theory: As far as Lewis's worry about bringing consistency between the marketing as well as advertising and marketing division is concerned, this would at first lead to clash as gone over by Bruce Tuckman in his 'Synergy Theory'. By combining the marketing as well as advertising and marketing department's work, there may be the very same first disconnect which can lead to the second stage of 'storming' where the groups challenge one an additional.

When individuals are provided with change, they go into stage one and also so there may be feelings like despair, uncertainty, irritation, anger, fear, rejection as well as disorientation.The scenario at the advertising and marketing department of Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd is similar so Lewis can obtain comfortable with the suggestion that it is not remarkable actions. It is throughout this phase that Lewis will certainly have to offer advice to the division so that they can discover a feeling of instructions. It can be seen exactly how Krasnow has actually currently made this transition less complicated by making Lewis get entailed in the department a year before his real separation.
Vrio Analysis
Maslow's Need power structure: The OB issue pertaining to insecurity at the office has actually been triggered first of all by the change in administration and secondly by the reality that the merging will certainly no more be initiated. Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has goes over the significance of 'safety requires as being a reduced degree need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel safe and out of danger' is at the second level of requirements. Prior to an employee can be made to establish emotionally, he needs to have his 'Physiological 'and 'Safety and security' needs met. This shows that unless the workers are made to feel protected about their present employment status in Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd Case Study

Ramification of Analysis.

The OB analysis has checked out numerous theories to recognize just how to cope with the current scenario at hand. The following three options have been suggested to help Lewis deal with the organizational difficulties in the marketing department. Each of these options has actually been suggested for alleviating the transition required to bring the marketing department in accordance with the needs of the market and also for making the social modification that would certainly comply with once the current leader leaves.

Integration of marketing and advertising functions. Separating Adverting and also Manufacturing functions. Integration of Advertising with Procedures.

Analysis of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merging days has expertise in business-to-business advertising along with firm and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both advertising and marketing and also advertising functions.

The advantage of this approach is that it will certainly incorporate both functions while decreasing the requirement for working with an extra source for advertising and marketing. Along with this, Lewis would certainly be heading the advertising and marketing department and regardless her replacement would be required for the present duty that she is performing. The negative aspect of this option is that exterior hiring might bring about animosity from inner workers that may be eying the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and also Manufacturing: Provided the affordable pressures and excellent quality work needed from the ad agency, it is advised that Lewis must enable the production system to be a different function from the advertising and marketing unit. Because most ad agency had these 2 functions as separate units, it makes even more sense to comply with the norm. Both features might be able to concentrate on their core turns on a lot more effectively. Nevertheless, the negative aspect of this approach would certainly be that additional expenses would have to be birthed for establishing different production features. A manufacturing head might have to be employed which can increase expenses for the organization.

Assimilation of Advertising with Procedures: Given that Lewis is currently looking after the advertising and marketing and also operations divisions all at once; it makes sense to incorporate the two features considering that she has actually been effectively caring for both ends. The reality that the two departments currently have significant differences over appropriation of sources recommends that this combination may be able to produce consistency specifically as Lewis would be heading both ends.However there are numerous negative aspects of this action especially as it would certainly place way too much concern over Lewis's shoulders. The fact that Lewis needs to adjust her monitoring design for the marketing division recommends that these two departments would be culturally varied. Lewis may not be able to use one kind of leadership style to both departments which might result in inadequacy in either one of the 2 features.


An examination of the 3 alternatives indicates that integration of advertising and marketing and also operations would certainly not be a viable step due to the large distinctions in between the 2 divisions regardless of the truth that currently Lewis is managing both. While splitting up of the manufacturing feature may have been a desirable move for the advertising department, the fact that it would certainly suggest positioning a third function under Lewis's wing indicates this ought to be avoided.

Action Strategy.
Lewis will certainly take control of the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

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

Lewis will separate herself from operations.

A democratic management style with employee empowerment will certainly be made use of in advertising department.

Open up door plan and emphasis on cross department communication will be aimed at removing disharmony.

Contingency plan.

If the assimilation does not work out as planned, a backup strategy would adhere to which would certainly divide the production feature from the marketing feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising and marketing division without an SVP. Because case the production feature will absolutely be separated by placing it under an SVP production.