Sally Jameson Valuing Stock Options In A Compensation Package Abridged Case Study Analysis


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Sally Jameson Valuing Stock Options In A Compensation Package Abridged Case Study Solution

Background and Facts

Sally Jameson Valuing Stock Options In A Compensation Package Abridged a workplace supplies store for small and average sized organisations has recently been associated with planning for a merger with its rival Residence Deport, which has actually affected performance levels in departmentswith the senior manager associated with lawful complications presented by the government Trade Commission. With the Marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the role in the future. With obstacles in the form of a prospective social adjustment and low employee spirits, the organization wants a full reengineering initiative at the marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the advertising department of Sally Jameson Valuing Stock Options In A Compensation Package Abridged is increasing uncertainty in the working environment causing different obstacles for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting tactical choices given that Stapes Inc. needed to abandon its strategies of combining with Workplace Deport after the Federal Trade Commission's intervention at the same time. Given the reality that the store has an international visibility with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries might be able to impact efficiency or critical goals. Federal Profession Compensation's antitrust match versus the merger took up beneficial time of the company's senior management recommending that 'political' factors can have serious implications for a global company.

Economic Factors: Financial factors such as the appearance of local business in the international circumstance recommend that Sally Jameson Valuing Stock Options In A Compensation Package Abridged is prospering in an atmosphere where there is prospective growth of services. Reality that shop consumers are mainly looking for office supplies for house offices suggests that the market has a rising fad of business owners and also house based businesses.

Social factors: Social fads in the economic climate show that consumers are seeking convenience as well as attractive rates. Marketing research shows how the client for Sally Jameson Valuing Stock Options In A Compensation Package Abridged does not have understanding concerning locating remedies which can use a combination of ease and also low costs.

Technical factors: Modern technology plays an important function in Sally Jameson Valuing Stock Options In A Compensation Package Abridged's service strategy specifically as the organization is piloting Innovation centers which would certainly offer technology sales and support in the kind of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and also Manifestations.

A number of underlying Organizational Behavior problems can be seen in Sally Jameson Valuing Stock Options In A Compensation Package Abridged's case as highlighted in this area.

Worries regarding social adjustment: There is worry about a social change that would happen once Todd Krasnow leaves from his placement as the Executive Vice President of Advertising with most of the staff members currently showing discontent over this potential action. This predicted change has actually developed stress in the work environment which has been coupled with the previous tension of preparing the company for a possible merger with House Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is shortage of workers that can match the difficult setting of a hectic organization. Not just does this lead to difficulty in finding the right people, it places anxiety on brand-new hires as can not endure the speed and also pressure that the company anticipates them to birth.

Twin Reporting Lines: Beginners find this organizational culture cumbersome and hard to cope with particularly as populated line partnerships are implied to be weak generally as well as objective setting and efficiency examination is still done by the strong line supervisor. This implies that beginners might lose clearness concerning their respective functions and also goals specifically as dotted line reporting does not maintain them in straight communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles despite the fact that it had actually been guessed that the last would certainly take Krasnow's setting came as an impact to her morale. Lewis might have been qualified as well as proper for the job but the reality that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Task Instability: Fear as well as instability can be recognized as 2 significant problems that Lewis would be handling specifically as the merger has now be cancelled as well as two senior execs of the marketing department would certainly be leaving. The entire responsibility of the division would certainly be dropping on Lewis's shoulders that would certainly not simply supervise of brining regarding a cultural modification yet would certainly likewise need to show herself in her brand-new duty.

Incompatible Management Design of Leader: Lewis's administration design and its incompatibility with the advertising department's function can also be seen as an OB difficulty particularly as she has actually been made use of to dealing with problems in the procedures division where personnel are educated to concentrate on procedures and obtain them right. The marketing division on the various other hand can be viewed as a group of people that are made use of to being supported by Krasnow who concentrated a lot more on outcome than processes.

Interdepartmental Differences: Interdepartmental disputes in between 3 divisions, advertising, merchandizing and also procedures respectively over the allotment of the advertising mix can be determined as another OB concern. Although the advertising and marketing department does not share the very same vision as the various other 2 divisions regarding the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and also procedures departments do not concur over the advertising and marketing mix allocation among one another either.

Fragmentation in Advertising And Marketing Department: Disintegration in between the marketing and advertising departments can be identified as one more OB concern which could require more interest. The reality that the marketing and advertising areas in the advertising and marketing division are detached is avoiding both divisions from acquiring from each various other's experience and also proficiency. Assimilation of advertising with retailing as well as operations would certainly become harder if the advertising division itself is degenerated which can be another prospective OB concern.

Sally Jameson Valuing Stock Options In A Compensation Package Abridged Analysis

Various theories have actually been used to discuss the situations to obtain further quality concerning the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers think that subordinates are passive and lazy, have little ambition as well as withstand adjustment. The scenario at Sally Jameson Valuing Stock Options In A Compensation Package Abridged is not entirely adhering to Concept X, it can be seen that new hires are discovering this atmosphere rather stressful which may ultimately lead to a greater inclination of the management towards Concept X. Even while evaluating Lewis's administration design, theory X may have been ideal in the procedures division to some degree but the Marketing department would certainly call for reliance on Theory Y in order to obtain the creative thinking and also creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's worry about bringing consistency between the marketing as well as advertising department is worried, this would originally lead to conflict as discussed by Bruce Tuckman in his 'Teamwork Theory'. By combining the marketing and advertising division's work, there might be the same initial disconnect which could lead to the 2nd phase of 'storming' where the teams test one an additional.

When people are presented with modification, they go into stage one and so there might be feelings like despair, uncertainty, irritation, temper, anxiety, rejection as well as disorientation.The situation at the advertising division of Sally Jameson Valuing Stock Options In A Compensation Package Abridged is comparable so Lewis can get comfy with the suggestion that it is not remarkable behavior. It is throughout this stage that Lewis will have to provide support to the department so that they can find a sense of direction. It can be seen exactly how Krasnow has already made this shift simpler by making Lewis obtain involved in the department a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has reviews the importance of 'security needs as being a reduced degree need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel protected as well as out of threat' is at the second degree of requirements. Before a staff member can be made to develop mentally, he requires to have his 'Physiological 'and also 'Safety and security' requires met.

SWOT Analysis for Sally Jameson Valuing Stock Options In A Compensation Package Abridged Case Study

Implication of Analysis.

The OB analysis has taken a look at different concepts to comprehend how to cope with the present circumstance available. The complying with three alternatives have actually been suggested to aid Lewis handle the organizational obstacles in the advertising and marketing department. Each of these choices has actually been recommended for alleviating the change required to bring the marketing division in accordance with the requirements of the marketplace as well as for making the cultural modification that would comply with as soon as the existing leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting and Manufacturing features. Assimilation of Marketing with Operations.

Analysis of Alternatives.

Assimilation of Marketing & Advertising Functions: The in-house advertising and marketing company of Sally Jameson Valuing Stock Options In A Compensation Package Abridged is currently strength for the company in regards to conserving up on expenses connected to advertising as well as promo. Because 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 favorable opportunity for integrating the advertising and marketing features. Judith Shapiro that has earlier been interviewed by Lewis during the earlier merging days has know-how in business-to-business advertising together with firm and also retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to deal with both marketing and advertising functions.

The advantage of this method is that it will certainly integrate both features while decreasing the need for working with an added source for advertising and marketing. In addition to this, Lewis would certainly be heading the advertising department and also all the same her substitute would be required for the present duty that she is performing. The disadvantage of this alternative is that exterior hiring might bring about bitterness from inner employees that might be looking at the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting as well as Production: Given the competitive stress as well as high top quality job needed from the advertising and marketing firm, it is suggested that Lewis should allow the manufacturing unit to be a different feature from the advertising device. Because a lot of advertising and marketing companies had these two functions as separate units, it makes more sense to adhere to the standard.

Combination of Marketing with Workflows: Considering that Lewis is already taking treatment of the advertising and operations divisions simultaneously; it makes feeling to incorporate the two features since she has been successfully taking treatment of both ends. The truth that Lewis has to adapt her administration design for the marketing division suggests that these 2 divisions would certainly be culturally varied.


An examination of the 3 choices shows that combination of advertising and also operations would not be a practical action because of the vast differences in between the two departments despite the fact that currently Lewis is taking care of both. While splitting up of the manufacturing feature may have been a beneficial step for the marketing department, the truth that it would certainly imply positioning a 3rd feature under Lewis's wing means this should be prevented. The combination of the advertising and marketing department is the very best choice in regards to getting the optimum results from the division. An activity plan for this option is gone over listed below.

Action Plan.
Lewis will certainly take over the function of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Manufacturing feature will stay component of advertising under marketing feature.

Lewis will certainly separate herself from operations.

An autonomous management style with employee empowerment will be used in marketing division.

Open up door plan and also focus on cross department interaction will be targeted at getting rid of discord.

Contingency plan.

If the combination does not exercise as planned, a contingency plan would certainly follow which would separate the production function from the marketing function to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising department without an SVP. Because case the production function will definitely be separated by placing it under an SVP manufacturing.