Ping Ans Overseas Expansion Financial Uncertainties And Risk Management Case Study Solution


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Background and Facts

Ping Ans Overseas Expansion Financial Uncertainties And Risk Management an office supplies store for tiny as well as medium sized businesses has actually recently been involved in preparing for a merger with its rival Residence Deport, which has affected performance degrees in departmentswith the senior manager associated with lawful issues presented by the federal Trade Commission. With the Advertising Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the duty in the near future. With challenges in the kind of a prospective social change as well as low employee spirits, the organization requires a complete reengineering initiative at the advertising department.

Trouble Declaration
Porter's 5 Forces Analysis
The prospective social modification at the marketing department of Ping Ans Overseas Expansion Financial Uncertainties And Risk Management is increasing unpredictability in the workplace resulting in different 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 major duty in impacting strategic decisions given that Stapes Inc. had to desert its plans of merging with Workplace Deport after the Federal Trade Commission's treatment at the same time. Provided the truth that the shop has a worldwide presence with branches in UK, USA, Canada and also Germany, political factors in each of these countries might have the ability to affect performance or critical goals. Federal Profession Commission's antitrust suit against the merging occupied valuable time of the company's elderly management suggesting that 'political' factors can have serious effects for a global organisation.

Economic Factors: Financial factors such as the development of local business in the global situation recommend that Ping Ans Overseas Expansion Financial Uncertainties And Risk Management is thriving in an environment where there is potential development of companies. In addition to this, truth that shop customers are mostly searching for workplace supplies for office suggests that the marketplace has an increasing pattern of entrepreneurs and also online organisations.

Social factors: Social fads in the economic situation reveal that consumers are seeking ease in addition to attractive prices. Marketing research demonstrates how the customer for Ping Ans Overseas Expansion Financial Uncertainties And Risk Management lacks awareness regarding discovering services which can provide a combination of convenience and affordable.

Technological factors: Innovation plays a vital duty in Ping Ans Overseas Expansion Financial Uncertainties And Risk Management's business approach particularly as the company is piloting Technology facilities which would certainly offer modern technology sales and also support in the form of memory upgrades, outer installations. (Recap of BUG in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Organizational Actions issues can be seen in Ping Ans Overseas Expansion Financial Uncertainties And Risk Management's case as highlighted in this section.

Uneasiness about cultural modification: There is uneasiness about a cultural change that would happen when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising with a lot of the staff members already revealing unhappiness over this potential relocation. This anticipated adjustment has produced stress and anxiety in the office which has actually been paired with the past stress of preparing the company for a prospective merging with Residence Deport.
Pest Analysis
Difficult Work Setting for Newcomers: There is scarcity of workers that can match the difficult environment of a busy company. Not only does this lead to problem in finding the best individuals, it puts anxiety on new hires as can not stand up to the speed and also pressure that the organization anticipates them to bear.

Dual Reporting Lines: Novices locate this business society cumbersome and also difficult to handle specifically as dotted line relationships are implied to be weak in general and also unbiased setting and also performance assessment is still done by the strong line supervisor. This suggests that newcomers could lose quality regarding their particular duties and also objectives specifically as populated line coverage does not keep them in direct communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles even though it had been guessed that the latter would take Krasnow's position came as an impact to her morale. Lewis might have been capable and ideal for the job but the truth that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the reason for Coles' resignation from solutions.

Anxiety & Work Instability: Worry as well as insecurity can be determined as 2 significant concerns that Lewis would certainly be dealing with especially as the merging has actually currently be cancelled and also 2 senior execs of the marketing division would be leaving. The entire duty of the division would certainly be dropping on Lewis's shoulders who would not just be in charge of brining about a cultural adjustment but would certainly additionally need to verify herself in her new duty.

Inappropriate Management Design of Leader: Lewis's administration design as well as its incompatibility with the advertising and marketing division's function can additionally be seen as an OB obstacle especially as she has actually been utilized to taking care of problems in the procedures department where workers are taught to focus on procedures as well as obtain them right. The advertising division on the various other hand can be viewed as a team of individuals that are utilized to being supported by Krasnow who focused extra on output than processes.

Interdepartmental Disputes: Interdepartmental differences between 3 divisions, marketing, merchandizing and also procedures specifically over the allotment of the advertising and marketing mix can be determined as one more OB worry. Although the advertising department does not share the exact same vision as the various other two divisions pertaining to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and operations divisions do not agree over the marketing mix allotment among each other either.

Fragmentation in Marketing Division: Disintegration between the marketing and advertising divisions can be determined as an additional OB concern which might need additional focus. The truth that the advertising and marketing areas in the advertising department are detached is avoiding both divisions from obtaining from each various other's experience as well as expertise. Assimilation of advertising and marketing with retailing and operations would end up being harder if the advertising division itself is disintegrated which can be one more potential OB issue.

Ping Ans Overseas Expansion Financial Uncertainties And Risk Management Analysis

Numerous theories have actually been utilized to clarify the situations to obtain more clearness concerning the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers believe that juniors are easy as well as lazy, have little ambition and withstand modification. The difficult version of this theory stressed coercion, tight controls, threats and punishments. With time it creates reduced performance, subtle sabotage and also rivalry (Deal, 2003). The scenario at Ping Ans Overseas Expansion Financial Uncertainties And Risk Management is not completely complying with Concept X, it can be seen that brand-new hires are discovering this setting rather stressful which may eventually lead to a greater inclination of the administration in the direction of Theory X. As per McGregor's supported sight, which he called Theory Y, the vital task of the management is to set up organizational conditions to ensure that people can achieve their very own objectives best by guiding their efforts in the direction of business incentives. If people locate no complete satisfaction in their work, the monitoring would certainly have little selection however to rely on theory X as well as exterior control (Deal, 2003). Also while assessing Lewis's monitoring design, concept X might have been suitable in the operations division somewhat but the Advertising and marketing division would certainly call for reliance on Concept Y to get the creative thinking and creativity from the teams.

Tuckman's Teamwork Theory: As much as Lewis's concern concerning bringing consistency in between the marketing and also marketing department is worried, this would at first lead to contrast as discussed by Bruce Tuckman in his 'Teamwork Theory'. By incorporating the advertising and marketing as well as advertising and marketing department's work, there may be the exact same preliminary separate which can lead to the 2nd phase of 'storming' where the groups test one an additional.

Bridges' Transition Version: According To William Bridge's concept (appendix 4), people are rather uneasy with modification, which is noticeable by the situation at Ping Ans Overseas Expansion Financial Uncertainties And Risk Management The scenario can be viewed as a normal program of life if is researched as per Bridge's theory where he describes that people go through 3 stages of transition when they experience change. 'Closing, losing as well as Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people exist with adjustment, they go into phase one therefore there might be emotions like sadness, unpredictability, disappointment, anger, concern, denial and also disorientation.The situation at the advertising and marketing department of Ping Ans Overseas Expansion Financial Uncertainties And Risk Management is similar so Lewis can get comfortable with the suggestion that it is not phenomenal actions. In the second stage, there may be a demand to link the void between the brand-new as well as old culture so Lewis may need to face this ordeal as soon as Krasnow leaves. There may be low morale and also reduced efficiency at this phase which should not be taken as a setback. It is during this phase that Lewis will need to offer guidance to the department to make sure that they can discover a sense of direction. It can be seen how Krasnow has actually already made this shift much easier by making Lewis obtain involved in the division a year before his real departure. Based on Bridges' Design, phase 3 will certainly bring about openness to knowing, High energy and also commitment as people will accept the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has goes over the significance of 'safety needs as being a lower level demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel protected and also out of danger' is at the 2nd level of demands. Prior to an employee can be made to establish psychologically, he needs to have his 'Physiological 'as well as 'Security' needs fulfilled.

SWOT Analysis for Ping Ans Overseas Expansion Financial Uncertainties And Risk Management Case Study

Effects of Analysis.

The OB analysis has actually looked at numerous concepts to understand just how to cope with the current scenario at hand. The complying with 3 alternatives have been suggested to aid Lewis deal with the business obstacles in the advertising and marketing division. Each of these alternatives has actually been recommended for relieving the shift required to bring the advertising and marketing division in accordance with the demands of the market as well as for making the social modification that would certainly adhere to as soon as the existing leader leaves.

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

Analysis of Alternatives.

Integration of Marketing & Marketing Functions: The internal advertising company of Ping Ans Overseas Expansion Financial Uncertainties And Risk Management is currently strength for the company in regards to saving up on expenses connected to advertising and also promotion. Considering that no brand-new employment has actually been done after Bridget Cole's separation with the coverage line being straight assigned to Krasnow for the advertising feature, this is a positive possibility for incorporating the advertising and marketing functions. Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merging days has know-how in business-to-business advertising along with firm and retail advertising experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to take care of both marketing and advertising features.

The benefit of this strategy is that it will integrate both features while decreasing the need for employing an extra resource for marketing. Along with this, Lewis would certainly be heading the advertising and marketing department as well as all the same her substitute would certainly be required for the current function that she is performing. The negative aspect of this option is that outside hiring may cause resentment from internal personnel that might be eying the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and also Production: Provided the affordable pressures as well as high quality job called for from the advertising and marketing firm, it is recommended that Lewis needs to enable the manufacturing unit to be a separate function from the marketing system. Because the majority of advertising firms had these 2 functions as separate units, it makes even more feeling to adhere to the norm.

Assimilation of Advertising And Marketing with Workflows: Because Lewis is currently looking after the advertising and marketing as well as procedures departments all at once; it makes sense to incorporate the two features considering that she has been efficiently looking after both ends. The fact that the two divisions already have significant differences over allocation of resources recommends that this integration might be able to cause consistency especially as Lewis would be heading both ends.However there are numerous drawbacks of this move especially as it would certainly put way too much problem over Lewis's shoulders. The reality that Lewis needs to adapt her management style for the advertising and marketing division suggests that these two divisions would certainly be culturally varied. Along with this, Lewis may not be able to apply one kind of leadership design to both divisions which might result in inadequacy in either among both functions.


An evaluation of the 3 alternatives shows that integration of advertising and also procedures would certainly not be a practical relocation due to the large distinctions in between the two departments in spite of the reality that currently Lewis is handling both. While separation of the production function might have been a favorable move for the advertising department, the fact that it would indicate putting a third feature under Lewis's wing indicates this need to be stayed clear of.

Action Plan.
Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

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

Lewis will certainly separate herself from procedures.

An autonomous leadership design with staff member empowerment will certainly be used in advertising and marketing division.

Open door policy and also emphasis on cross departmental interaction will certainly be focused on removing disharmony.

Backup plan.

If the integration does not work out as prepared, a contingency plan would follow which would separate the manufacturing function from the marketing feature to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing division without an SVP. Because case the production function will absolutely be divided by placing it under an SVP production.