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


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

Background and Facts

Sally Jameson Valuing Stock Options In A Compensation Package a workplace products store for tiny and also average sized companies has actually just recently been associated with planning for a merging with its competitor Residence Deport, which has actually affected efficiency degrees in departmentswith the senior supervisor associated with legal difficulties put forth by the federal Profession Compensation. With the Advertising Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the duty in the near future. With difficulties in the kind of a possible social adjustment and low employee spirits, the organization wants a complete reengineering effort at the advertising division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural adjustment at the marketing division of Sally Jameson Valuing Stock Options In A Compensation Package is increasing uncertainty in the workplace causing various obstacles for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting strategic choices because Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Profession Commission's intervention while doing so. Offered the reality that the store has a worldwide existence with branches in UK, U.S.A., Canada and also Germany, political consider each of these nations might have the ability to impact efficiency or tactical objectives. Federal Profession Compensation's antitrust suit against the merging took up useful time of the organization's elderly management recommending that 'political' factors can have major ramifications for an international business.

Economic Factors: Financial factors such as the development of small companies in the global circumstance suggest that Sally Jameson Valuing Stock Options In A Compensation Package is flourishing in a setting where there is possible development of companies. Along with this, truth that store consumers are primarily looking for workplace materials for office recommends that the market has a rising trend of entrepreneurs as well as online businesses.

Social factors: Social trends in the economic situation reveal that clients are seeking ease along with attractive costs. Market research demonstrates how the customer for Sally Jameson Valuing Stock Options In A Compensation Package does not have awareness concerning locating remedies which can use a mix of ease as well as low costs.

Technical factors: Technology plays a crucial role in Sally Jameson Valuing Stock Options In A Compensation Package's company approach specifically as the company is piloting Technology facilities which would offer modern technology sales and also support in the kind of memory upgrades, outer setups. (Summary of PARASITE in appendix 2).

OB Issues as well as Symptoms.

Several underlying Business Actions issues can be seen in Sally Jameson Valuing Stock Options In A Compensation Package's case as highlighted in this area.

Apprehensions regarding social change: There is concern about a social modification that would take place as soon as Todd Krasnow leaves from his position as the Executive Vice President of Advertising with a lot of the team member already showing discontent over this potential action. This expected adjustment has actually developed stress in the office which has actually been combined with the previous anxiety of preparing the company for a possible merger with Home Deport.
Pest Analysis
Demanding Work Atmosphere for Newcomers: There is scarcity of employees that can match the demanding atmosphere of a fast-paced organization. Not just does this cause trouble in finding the right individuals, it places tension on new hires as can not hold up against the speed as well as stress that the company anticipates them to birth.

Dual Coverage Lines: Novices find this organizational society difficult and also difficult to deal with specifically as dotted line relationships are implied to be weaker generally and objective setting as well as performance analysis is still done by the strong line supervisor. This suggests that newcomers can shed quality about their respective roles and objectives particularly as populated line reporting does not maintain them in direct communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles despite the fact that it had been guessed that the last would certainly take Krasnow's setting came as a strike to her morale. Lewis might have been qualified as well as appropriate for the task yet the reality that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Work Insecurity: Worry and instability can be determined as 2 significant problems that Lewis would certainly be dealing with particularly as the merging has currently be cancelled and also 2 elderly executives of the marketing division would certainly be leaving. The entire duty of the division would certainly be dropping on Lewis's shoulders that would not just be in charge of brining regarding a social adjustment yet would additionally have to prove herself in her new function.

Incompatible Management Style of Leader: Lewis's administration style as well as its conflict with the advertising and marketing department's role can also be seen as an OB obstacle specifically as she has actually been used to taking care of problems in the operations division where personnel are instructed to concentrate on procedures and also get them. The advertising division on the other hand can be seen as a group of individuals who are used to being nurtured by Krasnow who concentrated more on output than procedures.

Interdepartmental Disputes: Interdepartmental disputes in between 3 departments, advertising and marketing, merchandizing and also procedures respectively over the allocation of the advertising and marketing mix can be determined as one more OB concern. Although the advertising and marketing division does not share the same vision as the various other 2 divisions relating to the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing as well as procedures departments do not concur over the advertising mix appropriation among one another either.

Disintegration in Advertising And Marketing Department: Disintegration between the marketing and advertising divisions can be recognized as one more OB problem which could require further interest. The truth that the advertising and marketing sections in the advertising and marketing division are detached is protecting against both divisions from acquiring from each other's experience and expertise. Assimilation of marketing with retailing as well as operations would come to be more difficult if the marketing department itself is disintegrated which can be an additional potential OB issue.

Sally Jameson Valuing Stock Options In A Compensation Package Analysis

Numerous theories have been made use of to clarify the circumstances to get more clarity concerning the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors think that subordinates are easy as well as lazy, have little ambition and withstand change. The hard version of this theory stressed coercion, tight controls, risks and penalties. Over time it produces low productivity, refined sabotage and rivalry (Offer, 2003). Although the scenario at Sally Jameson Valuing Stock Options In A Compensation Package is not totally complying with Concept X, it can be seen that new hires are discovering this environment instead demanding which may eventually cause a better inclination of the management in the direction of Theory X. Based on McGregor's supported sight, which he called Concept Y, the important task of the administration is to prepare business problems to ensure that people can achieve their own objectives best by directing their efforts towards organizational rewards. If individuals find no fulfillment in their job, the monitoring would certainly have little selection but to rely upon concept X and also external control (Offer, 2003). Also while examining Lewis's management design, concept X may have been suitable in the operations department somewhat but the Advertising department would need reliance on Concept Y in order to get the creativity and also originality from the groups.

Tuckman's Synergy Theory: As for Lewis's worry regarding bringing consistency between the marketing and advertising division is concerned, this would initially cause conflict as discussed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's theory received appendix 3, throughout the initial phase of team development, individuals may not bond, as they are hectic finding their area in the group. By integrating the marketing and advertising division's work, there may coincide initial separate which might cause the 2nd phase of 'storming' where the teams challenge one another. Nevertheless, it is just during the 3rd phase or 'norming' when they would collaborate to share suggestions before the team can cause harmony in the 4th stage 'performing'.

When people are presented with change, they get in phase one and so there might be emotions like despair, unpredictability, stress, temper, anxiety, denial as well as disorientation.The circumstance at the advertising and marketing division of Sally Jameson Valuing Stock Options In A Compensation Package is comparable so Lewis can get comfy with the idea that it is not extraordinary actions. It is throughout this phase that Lewis will have to give assistance to the department so that they can find a feeling of direction. It can be seen just how Krasnow has already made this transition much easier by making Lewis obtain included in the division a year before his real departure.
Vrio Analysis
Maslow's Requirement power structure: The OB problem related to instability at the work environment has actually been activated firstly by the adjustment in monitoring and second of all by the truth that the merger will no longer be started. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has talks about the value of 'security needs as being a lower degree demand of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the requirement to feel safe and also untouched' goes to the second degree of needs. Prior to a staff member can be made to develop emotionally, he needs to have his 'Physical 'and 'Safety and security' requires fulfilled. This shows that unless the personnel are made to really feel protected regarding their present work status in Sally Jameson Valuing Stock Options In A Compensation Package they might not get to 'Self-Fulfillment'. (King, 2009).

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

Effects of Analysis.

The OB analysis has actually looked at different theories to recognize how to deal with the existing situation at hand. The following three alternatives have been recommended to aid Lewis manage the organizational difficulties in the marketing department. Each of these options has been proposed for alleviating the shift required to bring the advertising department according to the requirements of the market and also for making the cultural modification that would adhere to when the current leader leaves.

Combination of advertising and marketing features. Separating Adverting and also Production functions. Integration of Advertising with Operations.

Assessment of Alternatives.

Integration of Advertising & Marketing Functions: The in-house advertising and marketing firm of Sally Jameson Valuing Stock Options In A Compensation Package is already strength for the organization in regards to conserving up on expenses related to marketing and promo. Considering that no new recruitment has actually been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the advertising and marketing feature, this is a favorable opportunity for integrating the advertising and marketing features. Judith Shapiro who has earlier been interviewed by Lewis during the earlier merging days has proficiency in business-to-business advertising and marketing together with company and also retail marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both marketing and advertising functions.

The benefit of this method is that it will certainly incorporate the two features while minimizing the requirement for hiring an additional resource for marketing. Along with this, Lewis would certainly be heading the advertising department and all the same her replacement would be needed for the current role that she is carrying out. The downside of this choice is that outside hiring may bring about animosity from interior personnel who might be looking at the position of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and Production: Given the affordable pressures and high quality job required from the advertising agency, it is advised that Lewis needs to permit the manufacturing system to be a different feature from the advertising system. Since the majority of ad agency had these two functions as separate devices, it makes more sense to adhere to the norm. Both features may be able to concentrate on their core activates much more efficiently. Nevertheless, the drawback of this approach would certainly be that added costs would certainly need to be birthed for setting up separate production features. Along with this, a manufacturing head may have to be hired which could boost expenses for the company.

Assimilation of Marketing with Procedures: Because Lewis is already looking after the advertising and also operations departments at the same time; it makes sense to incorporate the two features because she has been effectively caring for both ends. The fact that the two departments currently have major differences over allotment of resources recommends that this integration may have the ability to produce consistency specifically as Lewis would be heading both ends.However there are various disadvantages of this move specifically as it would certainly put excessive burden over Lewis's shoulders. The fact that Lewis needs to adjust her management design for the advertising and marketing division suggests that these 2 departments would be culturally varied. Along with this, Lewis might not be able to use one kind of leadership style to both departments which can result in ineffectiveness in either one of the two functions.


An examination of the 3 choices indicates that integration of marketing and also operations would not be a feasible action due to the large differences in between the two departments despite the fact that presently Lewis is taking care of both. While splitting up of the manufacturing function may have been a positive move for the advertising department, the truth that it would suggest positioning a third function under Lewis's wing means this ought to be stayed clear of.

Activity Strategy.
Lewis will certainly take control of the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

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

Lewis will certainly separate herself from procedures.

An autonomous leadership style with employee empowerment will certainly be utilized in marketing department.

Open up door policy and focus on cross departmental interaction will be focused on getting rid of dissonance.

Backup strategy.

If the integration does not work out as prepared, a backup strategy would certainly adhere to which would divide the manufacturing feature from the advertising and marketing feature to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the manufacturing function will certainly be divided by placing it under an SVP production.