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Salomon And The Treasury Securities Auction 1992 Update Case Study Help

CASE ANALYSIS

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Salomon And The Treasury Securities Auction 1992 Update Case Study Solution

Background and Facts

Salomon And The Treasury Securities Auction 1992 Update a workplace products seller for little and also average sized businesses has recently been associated with preparing for a merging with its competitor House Deport, which has actually influenced efficiency degrees in departmentswith the senior manager associated with lawful issues put forth by the federal Trade Commission. With the Marketing Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the duty in the future. With challenges in the kind of a prospective cultural adjustment as well as low worker morale, the organization needs a full reengineering effort at the advertising and marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The potential cultural modification at the advertising department of Salomon And The Treasury Securities Auction 1992 Update is boosting unpredictability in the workplace causing various obstacles for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting strategic decisions because Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Trade Commission's intervention in the process. Provided the fact that the shop has a worldwide existence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these countries might be able to influence efficiency or tactical goals. Federal Profession Payment's antitrust match versus the merging occupied valuable time of the company's elderly management recommending that 'political' factors can have significant ramifications for an international company.

Economic Factors: Financial factors such as the appearance of small businesses in the global circumstance recommend that Salomon And The Treasury Securities Auction 1992 Update is flourishing in an environment where there is prospective development of companies. Truth that store clients are mainly looking for workplace materials for home offices suggests that the market has an increasing pattern of business owners as well as residence based companies.

Social factors: Social fads in the economy reveal that consumers are seeking convenience in addition to attractive rates. Marketing research demonstrates how the customer for Salomon And The Treasury Securities Auction 1992 Update does not have understanding concerning discovering solutions which can supply a combination of ease and also low costs.

Technological factors: Innovation plays a vital function in Salomon And The Treasury Securities Auction 1992 Update's business strategy specifically as the company is piloting Innovation centers which would offer technology sales and assistance in the kind of memory upgrades, outer installments. (Summary of INSECT in appendix 2).

OB Issues and Effects.

A number of underlying Business Habits problems can be seen in Salomon And The Treasury Securities Auction 1992 Update's case as highlighted in this section.

Concerns about social adjustment: There is worry concerning a social modification that would take place when Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with most of the employee already revealing unhappiness over this prospective action. This expected modification has actually created tension in the office which has been combined with the previous tension of preparing the company for a prospective merging with Home Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is lack of employees that can match the demanding atmosphere of a busy organization. Not only does this cause trouble in locating the best people, it places anxiety on brand-new hires as can not stand up to the rate and also pressure that the company expects them to bear.

Dual Coverage Lines: Novices locate this organizational culture cumbersome and also challenging to cope with particularly as dotted line partnerships are meant to be weaker as a whole and objective setting as well as efficiency examination is still done by the strong line supervisor. This implies that newbies might lose clearness about their respective duties and goals specifically as dotted line reporting does not keep them in straight communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles although it had been speculated that the latter would certainly take Krasnow's position came as a blow to her morale. Lewis might have been qualified and also appropriate for the task yet the fact that Kransnow's departure would make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Task Instability: Anxiety and insecurity can be determined as two major problems that Lewis would certainly be dealing with particularly as the merger has actually now be terminated and also two senior executives of the advertising and marketing division would be leaving. The whole obligation of the department would be falling on Lewis's shoulders that would certainly not simply be in charge of brining regarding a cultural modification yet would also have to confirm herself in her new function.

Incompatible Monitoring Design of Leader: Lewis's management design and its incompatibility with the marketing division's function can additionally be seen as an OB obstacle especially as she has been made use of to managing problems in the procedures department where employees are taught to concentrate on procedures as well as get them right. The advertising department on the other hand can be viewed as a team of people who are utilized to being nurtured by Krasnow who concentrated much more on output than processes.

Interdepartmental Differences: Interdepartmental arguments between three departments, advertising, merchandizing and procedures respectively over the appropriation of the advertising mix can be recognized as another OB problem. The marketing department does not share the very same vision as the various other 2 departments regarding the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing as well as operations divisions do not concur over the advertising mix appropriation among one another either.

Fragmentation in Advertising And Marketing Division: Fragmentation in between the advertising and marketing divisions can be identified as one more OB problem which might require further attention. The truth that the marketing and advertising sections in the advertising and marketing division are detached is preventing both departments from getting from each other's experience as well as know-how. Assimilation of marketing with retailing and also operations would certainly end up being more difficult if the marketing department itself is degenerated which can be one more potential OB concern.

Salomon And The Treasury Securities Auction 1992 Update Analysis

Different concepts have actually been used to clarify the situations to get more clearness about the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers believe that staffs are easy and lazy, have little ambition and stand up to change. The tough variation of this theory highlighted browbeating, tight controls, risks and punishments. In time it generates low productivity, subtle sabotage and also competition (Bargain, 2003). The situation at Salomon And The Treasury Securities Auction 1992 Update is not completely adhering to Theory X, it can be seen that new hires are discovering this setting rather demanding which might eventually lead to a greater inclination of the administration in the direction of Concept X. According to McGregor's advocated sight, which he called Theory Y, the essential job of the monitoring is to arrange business conditions to ensure that people can attain their own objectives best by routing their initiatives towards organizational incentives. If individuals find no complete satisfaction in their job, the monitoring would have little option however to rely upon theory X as well as external control (Offer, 2003). Also while evaluating Lewis's monitoring style, concept X may have been suitable in the operations division somewhat but the Advertising division would certainly require dependence on Concept Y to get the creativity and also creativity from the teams.

Tuckman's Synergy Concept: Regarding Lewis's problem regarding bringing harmony in between the advertising and marketing department is concerned, this would at first bring about contrast as gone over by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's theory shown in appendix 3, during the first phase of team development, individuals might not bond, as they are active locating their place in the group. By combining the advertising and marketing department's work, there might coincide initial detach which could lead to the 2nd phase of 'storming' where the groups test one another. Nonetheless, it is just throughout the 3rd phase or 'norming' when they would certainly collaborate to share suggestions prior to the team can bring about synergy in the fourth stage 'performing'.

Bridges' Change Design: According To William Bridge's theory (appendix 4), individuals are fairly awkward with adjustment, which is evident by the scenario at Salomon And The Treasury Securities Auction 1992 Update The situation can be seen as a typical training course of life if is researched according to Bridge's concept where he explains that individuals experience three phases of transition when they experience change. 'End, shedding and Letting go', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When individuals are presented with modification, they enter stage one therefore there might be emotions like despair, unpredictability, stress, temper, concern, denial and disorientation.The circumstance at the marketing division of Salomon And The Treasury Securities Auction 1992 Update is similar so Lewis can get comfortable with the concept that it is not extraordinary habits. In the 2nd phase, there might be a requirement to bridge the gap in between the brand-new as well as old society so Lewis may have to face this experience once Krasnow leaves. There may be reduced morale as well as low performance at this stage which should not be taken as a setback. It is throughout this phase that Lewis will need to give advice to the division so that they can find a sense of direction. It can be seen just how Krasnow has already made this transition much easier by making Lewis obtain associated with the division a year prior to his actual departure. As per Bridges' Version, stage three will bring about openness to discovering, High power as well as commitment as people will accept the modification (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB concern related to insecurity at the workplace has actually been activated first of all by the change in administration and also secondly by the truth that the merging will certainly no longer be initiated. Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has reviews the relevance of 'protection needs as being a lower level demand of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to feel secure and unharmed' is at the 2nd level of needs. Prior to a worker can be made to develop emotionally, he requires to have his 'Physiological 'as well as 'Safety' needs met. This suggests that unless the workers are made to really feel protected regarding their existing employment standing in Salomon And The Treasury Securities Auction 1992 Update they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Salomon And The Treasury Securities Auction 1992 Update Case Study



Implication of Analysis.

The OB analysis has checked out different theories to comprehend how to deal with the present situation available. The adhering to 3 choices have actually been suggested to aid Lewis take care of the organizational challenges in the marketing department. Each of these choices has been proposed for reducing the change needed to bring the advertising and marketing department in accordance with the needs of the marketplace as well as for making the cultural change that would certainly adhere to when the current leader leaves.

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

Evaluation of Alternatives.

Combination of Advertising & Advertising Functions: The internal marketing firm of Salomon And The Treasury Securities Auction 1992 Update is currently stamina for the organization in terms of conserving up on expenses connected to advertising as well as promo. Since no brand-new recruitment has been done after Bridget Cole's departure with the coverage line being straight appointed to Krasnow for the advertising and marketing feature, this is a positive opportunity for integrating the marketing and advertising features. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merger days has know-how in business-to-business advertising together with firm as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both marketing and advertising features.

The advantage of this approach is that it will certainly integrate the two features while reducing the demand for hiring an added resource for advertising. In addition to this, Lewis would certainly be heading the marketing department and also all the same her substitute would certainly be needed for the current duty that she is performing. The disadvantage of this alternative is that exterior hiring may produce animosity from internal workers who may be considering the placement of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting as well as Production: Provided the affordable stress and also high quality work needed from the marketing agency, it is advised that Lewis must allow the production unit to be a different feature from the advertising system. Given that most advertising and marketing agencies had these 2 features as separate systems, it makes even more sense to comply with the norm.

Assimilation of Advertising And Marketing with Procedures: Given that Lewis is currently looking after the advertising and marketing and also operations divisions at the same time; it makes good sense to incorporate both features because she has been successfully caring for both ends. The fact that the two divisions currently have significant differences over allowance of resources recommends that this assimilation might be able to cause consistency specifically as Lewis would certainly be heading both ends.However there are numerous downsides of this action specifically as it would certainly place way too much burden over Lewis's shoulders. The reality that Lewis needs to adapt her management design for the marketing department recommends that these two divisions would be culturally diverse. Along with this, Lewis might not have the ability to use one sort of leadership design to both divisions which might cause ineffectiveness in either among both features.

Referral.



An examination of the three alternatives suggests that integration of advertising and marketing and procedures would certainly not be a feasible relocation due to the vast differences between the 2 divisions despite the fact that presently Lewis is managing both. While splitting up of the manufacturing feature might have been a beneficial relocation for the advertising division, the reality that it would indicate putting a third function under Lewis's wing implies this ought to be avoided.

Activity Strategy.
Recommendation
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 be hired to take Lewis's area as SVP of advertising and marketing.

Manufacturing feature will continue to be component of advertising and marketing under marketing function.

Lewis will separate herself from procedures.

An autonomous leadership style with employee empowerment will certainly be used in advertising division.

Open door policy and also emphasis on cross department interaction will certainly be focused on getting rid of discord.

Backup strategy.

If the integration does not exercise as planned, a contingency strategy would certainly adhere to which would certainly separate the manufacturing feature from the marketing feature to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will be heading the advertising department without an SVP. Because case the manufacturing feature will absolutely be separated by placing it under an SVP production.