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

CASE 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 materials store for little and also average sized companies has actually just recently been associated with preparing for a merger with its competitor Home Deport, which has impacted efficiency degrees in departmentswith the senior supervisor associated with legal problems presented by the federal Trade 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 operations has been asked to take the function in the future. With obstacles in the kind of a prospective social adjustment and also low staff member spirits, the organization needs a full reengineering effort at the marketing division.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural change at the advertising department of Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd is enhancing unpredictability in the working environment resulting in different obstacles for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing critical decisions since Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Profession Payment's intervention while doing so. Offered the truth that the store has a global existence with branches in UK, USA, Canada as well as Germany, political consider each of these countries may be able to impact efficiency or calculated objectives. Federal Trade Payment's antitrust match against the merging took up important time of the company's elderly management suggesting that 'political' factors can have major implications for an international organisation.

Economic Factors: Economic factors such as the appearance of small companies in the worldwide scenario suggest that Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd is growing in an environment where there is potential development of companies. In addition to this, truth that shop consumers are mostly seeking workplace materials for home offices suggests that the marketplace has an increasing pattern of entrepreneurs and home based businesses.

Social factors: Social patterns in the economic climate show that clients are searching for ease as well as appealing costs. Marketing research demonstrates how the client for Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd does not have understanding concerning locating solutions which can use a mix of convenience and also inexpensive.

Technological factors: Technology plays a crucial function in Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd's service approach particularly as the company is piloting Modern technology centers which would certainly provide modern technology sales as well as assistance in the type of memory upgrades, peripheral installations. (Recap of INSECT in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Business Behavior problems can be seen in Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd's case as highlighted in this section.

Uneasiness concerning social adjustment: There is worry regarding a social change that would occur when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with a lot of the staff members currently showing unhappiness over this possible move. This anticipated change has produced tension in the workplace which has actually been paired with the past tension of preparing the firm for a prospective merging with Home Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is lack of personnel that can match the stressful setting of a hectic company. Not only does this bring about trouble in discovering the best people, it places stress and anxiety on brand-new hires as can not endure the pace as well as pressure that the company anticipates them to bear.

Dual Reporting Lines: Novices find this organizational society difficult as well as difficult to handle particularly as dotted line connections are indicated to be weak generally and also unbiased setting as well as performance evaluation is still done by the strong line supervisor. This implies that beginners can lose quality regarding their corresponding functions and purposes especially as populated line coverage does not keep them in straight communication with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles although it had been guessed that the last would certainly take Krasnow's placement came as a strike to her morale. Lewis might have been capable as well as proper for the job yet the fact that Kransnow's departure would make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Anxiety & Task Instability: Anxiety and insecurity can be recognized as two significant problems that Lewis would certainly be handling specifically as the merging has actually now be terminated and also 2 senior executives of the marketing division would certainly be leaving. The whole responsibility of the department would be dropping on Lewis's shoulders who would certainly not simply be in charge of brining regarding a social adjustment yet would additionally have to confirm herself in her new role.

Inappropriate Administration Design of Leader: Lewis's management design as well as its incompatibility with the advertising and marketing department's function can additionally be seen as an OB obstacle specifically as she has actually been made use of to handling concerns in the procedures department where personnel are shown to focus on processes and get them right. The advertising and marketing department on the other hand can be viewed as a group of individuals who are utilized to being supported by Krasnow that concentrated a lot more on output than processes.

Interdepartmental Differences: Interdepartmental arguments in between 3 divisions, marketing, merchandizing and procedures respectively over the allowance of the marketing mix can be identified as one more OB concern. The advertising department does not share the very same vision as the other 2 divisions pertaining to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing as well as operations divisions do not agree over the advertising and marketing mix allowance among one another either.

Disintegration in Marketing Department: Fragmentation in between the marketing and advertising divisions can be recognized as another OB issue which might require further focus. The reality that the advertising and marketing areas in the marketing department are disconnected is avoiding both divisions from acquiring from each other's experience as well as knowledge. Integration of advertising with merchandising and procedures would come to be more difficult if the marketing division itself is disintegrated which can be one more prospective OB concern.

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

Various theories have actually been made use of to clarify the circumstances to obtain further clarity concerning the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that juniors are passive and also lazy, have little ambition as well as resist change. The circumstance at Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd is not totally following Concept X, it can be seen that new hires are finding this atmosphere instead demanding which may eventually lead to a higher disposition of the management towards Concept X. Even while evaluating Lewis's management style, theory X may have been suitable in the procedures department to some extent however the Advertising and marketing division would call for reliance on Concept Y in order to get the creativity and also originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's problem about bringing harmony in between the advertising and marketing department is worried, this would originally result in conflict as discussed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). According to Tuckman's theory received appendix 3, throughout the first phase of team development, people might not bond, as they are active finding their area in the group. By combining the advertising and marketing division's work, there might be the same preliminary detach which can result in the 2nd phase of 'storming' where the groups test one another. It is only during the 3rd phase or 'norming' when they would come together to share suggestions prior to the team can bring about synergy in the fourth stage 'performing'.

Bridges' Transition Design: Based On William Bridge's theory (appendix 4), people are fairly unpleasant with adjustment, which is evident by the circumstance at Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd The scenario can be viewed as a regular course of life if is researched as per Bridge's theory where he clarifies that individuals go through 3 phases of transition when they experience modification. 'Ending, losing as well as Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people exist with modification, they get in phase one and so there might be feelings like despair, unpredictability, frustration, temper, concern, denial as well as disorientation.The scenario at the marketing division of Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd is comparable so Lewis can get comfy with the concept that it is not phenomenal habits. In the 2nd phase, there might be a requirement to connect the void in between the new and also old culture so Lewis may have to face this ordeal once Krasnow leaves. There might be low spirits as well as low efficiency at this phase which must not be taken as a setback. It is throughout this stage that Lewis will certainly need to provide assistance to the division so that they can find an orientation. It can be seen just how Krasnow has already made this shift easier by making Lewis get involved in the department a year before his real departure. As per Bridges' Design, phase 3 will certainly produce openness to understanding, High energy and also commitment as people will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Demand power structure: The OB issue pertaining to insecurity at the workplace has actually been set off first of all by the change in administration as well as second of all by the reality that the merging will no more be initiated. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has discusses the importance of 'safety requires as being a reduced degree requirement of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to really feel secure and also untouched' is at the second level of demands. Prior to a staff member can be made to develop emotionally, he requires to have his 'Physical 'as well as 'Safety and security' needs fulfilled. This indicates that unless the personnel are made to feel safe concerning their current work condition in Pacific Century Cyberworks Ltd The Bid For Cable And Wireless Hkt Ltd they might 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 actually considered various theories to recognize how to deal with the existing circumstance handy. The complying with 3 alternatives have actually been recommended to assist Lewis take care of the organizational challenges in the marketing department. Each of these choices has been suggested for relieving the change required to bring the advertising and marketing department in line with the needs of the market as well as for making the cultural adjustment that would certainly comply with once the current leader leaves.

Combination of advertising and marketing functions. Dividing Adverting as well as Production features. Assimilation of Advertising with Operations.

Evaluation of Alternatives.

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

The benefit of this approach is that it will certainly integrate both functions while reducing the requirement for employing an additional resource for advertising. In addition to this, Lewis would be heading the advertising division and also regardless her replacement would certainly be required for the existing duty that she is performing. The disadvantage of this alternative is that external hiring might bring about animosity from interior employees who might be eying the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Manufacturing: Provided the competitive pressures and also high quality job needed from the advertising and marketing agency, it is recommended that Lewis ought to permit the production system to be a separate function from the advertising and marketing system. Since most marketing firms had these 2 functions as different units, it makes more sense to comply with the standard.

Integration of Advertising with Operations: Since Lewis is already taking care of the advertising and operations departments at the same time; it makes good sense to integrate the two functions since she has been efficiently dealing with both ends. The reality that the two departments already have major distinctions over allowance of sources suggests that this combination may have the ability to cause consistency especially as Lewis would be heading both ends.However there are different negative aspects of this move especially as it would certainly place excessive problem over Lewis's shoulders. The truth that Lewis has to adapt her administration style for the advertising division suggests that these 2 divisions would certainly be culturally diverse. In addition to this, Lewis may not be able to apply one type of leadership style to both divisions which can cause ineffectiveness in either one of both functions.

Recommendation.



An analysis of the three choices shows that combination of advertising and marketing as well as operations would not be a feasible action due to the large differences between the 2 divisions regardless of the truth that presently Lewis is taking care of both. While separation of the manufacturing function may have been a positive step for the advertising and marketing department, the truth that it would mean positioning a 3rd feature under Lewis's wing means this must be avoided.

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

Marketing and advertising functions would be merged.

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

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

Lewis will separate herself from operations.

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

Open door policy and also focus on cross department interaction will certainly be aimed at getting rid of dissonance.

Contingency strategy.

If the integration does not work out as intended, a backup strategy would certainly comply with which would separate the production feature from the marketing function to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the production feature will certainly be divided by positioning it under an SVP manufacturing.