Restructuring Bulongs Project Debt Case Study Solution


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Restructuring Bulongs Project Debt Case Study Analysis

Background and Facts

Restructuring Bulongs Project Debt an office products merchant for little and also medium sized services has actually lately been associated with planning for a merger with its rival Home Deport, which has influenced effectiveness degrees in departmentswith the elderly manager associated with lawful issues put forth by the federal Trade Commission. With the Advertising Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the future. With obstacles in the type of a potential social adjustment as well as low worker morale, the organization wants a total reengineering effort at the marketing division.

Trouble Declaration

The potential cultural modification at the advertising department of Restructuring Bulongs Project Debt is boosting uncertainty in the workplace bring about different challenges for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting critical choices since Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Trade Payment's intervention in the process. Provided the truth that the shop has an international existence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these nations might have the ability to impact performance or critical objectives. Federal Profession Payment's antitrust fit against the merger took up valuable time of the company's senior management suggesting that 'political' factors can have significant implications for an international service.

Economic Factors: Economic factors such as the development of local business in the global situation recommend that Restructuring Bulongs Project Debt is thriving in a setting where there is possible growth of businesses. In addition to this, reality that shop consumers are primarily trying to find workplace supplies for office recommends that the marketplace has a climbing trend of entrepreneurs and online services.

Social factors: Social patterns in the economic climate reveal that clients are looking for convenience in addition to attractive prices. Market research demonstrates how the customer for Restructuring Bulongs Project Debt lacks recognition concerning finding options which can supply a combination of comfort and also low costs.

Technical factors: Technology plays an important duty in Restructuring Bulongs Project Debt's organisation approach particularly as the organization is piloting Technology facilities which would certainly provide technology sales as well as support in the type of memory upgrades, peripheral installations. (Recap of PEST in appendix 2).

OB Issues as well as Symptoms.

Several underlying Organizational Habits problems can be seen in Restructuring Bulongs Project Debt's case as highlighted in this section.

Concerns concerning cultural adjustment: There is concern regarding a cultural modification that would take place when Todd Krasnow leaves from his placement as the Executive Vice President of Marketing with most of the staff members currently showing unhappiness over this prospective action. This expected change has developed stress in the office which has been coupled with the previous stress and anxiety of preparing the firm for a possible merging with House Deport.

Stressful Work Environment for Newcomers: There is lack of employees that can match the difficult setting of a fast-paced company. Not just does this cause trouble in discovering the ideal individuals, it places tension on new hires as can not withstand the rate and also pressure that the organization expects them to bear.

Twin Coverage Lines: Newcomers find this business culture troublesome and challenging to handle especially as populated line partnerships are meant to be weaker as a whole and also unbiased setting as well as performance assessment is still done by the strong line manager. This means that newbies could lose clarity concerning their particular functions and goals specifically as dotted line reporting does not keep them in direct communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles despite the fact that it had been hypothesized that the last would certainly take Krasnow's placement came as an impact to her morale. Lewis might have been capable and also proper for the job but the fact that Kransnow's departure would make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.

Concern & Job Insecurity: Fear as well as insecurity can be identified as two major concerns that Lewis would be managing particularly as the merger has currently be terminated and two elderly execs of the advertising division would be leaving. The entire duty of the department would certainly be dropping on Lewis's shoulders that would certainly not just be in charge of brining concerning a social change yet would certainly also have to show herself in her new role.

Incompatible Administration Design of Leader: Lewis's management style and its conflict with the advertising division's function can additionally be seen as an OB challenge particularly as she has been used to dealing with issues in the procedures department where workers are shown to focus on processes and obtain them. The advertising and marketing department on the various other hand can be viewed as a group of individuals who are made use of to being nurtured by Krasnow who focused a lot more on outcome than processes.

Interdepartmental Arguments: Interdepartmental arguments in between three departments, advertising, merchandizing and operations specifically over the allocation of the advertising and marketing mix can be identified as one more OB worry. Although the advertising and marketing division does not share the exact same vision as the various other two departments pertaining to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and also procedures divisions do not agree over the advertising and marketing mix allotment amongst each other either.

Fragmentation in Advertising And Marketing Division: Disintegration in between the advertising and marketing divisions can be identified as another OB issue which might require more attention. The truth that the advertising and marketing sections in the marketing department are separated is avoiding both divisions from obtaining from each various other's experience and expertise. Combination of marketing with merchandising and also procedures would certainly come to be harder if the advertising division itself is broken down which can be an additional possible OB concern.

Restructuring Bulongs Project Debt Analysis

Various theories have been utilized to explain the scenarios to get further clarity concerning the circumstance handy.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that subordinates are easy as well as lazy, have little passion and resist modification. The situation at Restructuring Bulongs Project Debt is not completely adhering to Concept X, it can be seen that brand-new hires are discovering this environment rather demanding which might eventually lead to a higher disposition of the administration towards Theory X. Even while assessing Lewis's administration design, concept X may have been appropriate in the procedures division to some level yet the Advertising department would certainly call for reliance on Theory Y in order to get the creative thinking and creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's problem about bringing harmony in between the advertising as well as advertising department is worried, this would at first lead to conflict as gone over by Bruce Tuckman in his 'Synergy Concept'. By combining the advertising and marketing and advertising and marketing department's job, there may be the exact same preliminary detach which might lead to the 2nd stage of 'storming' where the groups challenge one another.

When individuals are presented with modification, they go into stage one and also so there may be emotions like despair, unpredictability, aggravation, temper, worry, denial and also disorientation.The circumstance at the marketing department of Restructuring Bulongs Project Debt is comparable so Lewis can obtain comfortable with the idea that it is not remarkable actions. It is during this stage that Lewis will have to give assistance to the division so that they can locate a feeling of instructions. It can be seen how Krasnow has already made this transition easier by making Lewis get included in the division a year prior to his actual departure.

Maslow's Need hierarchy: The OB issue related to insecurity at the office has actually been activated firstly by the adjustment in management as well as second of all by the fact that the merger will no more be launched. Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has talks about the relevance of 'safety and security needs as being a lower degree demand of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to really feel secure as well as safe' goes to the 2nd level of demands. Prior to an employee can be made to create psychologically, he needs to have his 'Physical 'and also 'Security' needs met. This suggests that unless the employees are made to really feel secure concerning their present work condition in Restructuring Bulongs Project Debt they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Restructuring Bulongs Project Debt Case Study

Implication of Analysis.

The OB analysis has actually looked at different theories to understand just how to cope with the present circumstance at hand. The adhering to 3 options have actually been suggested to assist Lewis deal with the organizational challenges in the advertising and marketing department. Each of these alternatives has been suggested for easing the shift required to bring the advertising division according to the needs of the market as well as for making the cultural adjustment that would certainly adhere to once the current leader leaves.

Combination of advertising and marketing features. Separating Adverting and Manufacturing features. Combination of Advertising with Workflow.

Examination of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merger days has expertise in business-to-business advertising along with agency as well as retail advertising experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to handle both advertising and marketing and also advertising features.

The advantage of this approach is that it will certainly integrate both features while reducing the demand for hiring an added source for advertising. Lewis would be heading the advertising department as well as in any kind of case her substitute would certainly be needed for the existing role that she is carrying out. The disadvantage of this alternative is that outside hiring may cause animosity from inner workers that might be looking at the placement of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and also Manufacturing: Provided the competitive stress and high top quality job needed from the advertising and marketing firm, it is advised that Lewis ought to enable the production device to be a separate feature from the advertising and marketing unit. Since most advertising and marketing companies had these 2 features as separate devices, it makes even more sense to follow the norm.

Assimilation of Advertising with Procedures: Because Lewis is currently taking treatment of the marketing as well as procedures divisions concurrently; it makes feeling to incorporate the two features since she has actually been effectively taking care of both ends. The fact that Lewis has to adapt her administration style for the marketing department recommends that these two departments would certainly be culturally diverse.


An evaluation of the three choices suggests that assimilation of marketing and also operations would certainly not be a viable step due to the substantial distinctions in between the two departments regardless of the truth that currently Lewis is handling both. While separation of the manufacturing function may have been a desirable step for the advertising division, the fact that it would certainly suggest placing a third function under Lewis's wing means this must be avoided.

Activity Strategy.

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

Advertising and Marketing features would certainly be combined.

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

Production function will stay part of marketing under advertising and marketing feature.

Lewis will divide herself from operations.

An autonomous management design with employee empowerment will certainly be utilized in advertising and marketing division.

Open up door plan and emphasis on cross department communication will certainly be aimed at eliminating dissonance.

Contingency plan.

If the combination does not exercise as intended, a backup strategy would certainly follow which would divide the manufacturing function from the advertising feature to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising and marketing division without an SVP. Because case the production function will certainly be separated by placing it under an SVP manufacturing.