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Salomon And The Treasury Securities Auction Case Study Analysis

Background and Facts

Salomon And The Treasury Securities Auction an office supplies merchant for tiny as well as medium sized companies has actually recently been involved in planning for a merger with its rival House Deport, which has influenced performance levels in departmentswith the senior manager involved in legal complications presented by the federal Profession Compensation. With the Advertising Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the near future. With difficulties in the type of a possible social adjustment and reduced worker spirits, the company requires a complete reengineering initiative at the marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising and marketing division of Salomon And The Treasury Securities Auction is enhancing unpredictability in the workplace causing various obstacles for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing strategic decisions considering that Stapes Inc. had to desert its plans of combining with Office Deport after the Federal Trade Commission's treatment in the process. Offered the truth that the store has an international existence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these countries might have the ability to influence efficiency or tactical goals. Federal Trade Payment's antitrust match versus the merger used up useful time of the company's senior management suggesting that 'political' factors can have serious implications for a global company.

Economic Factors: Financial factors such as the development of local business in the worldwide situation suggest that Salomon And The Treasury Securities Auction is flourishing in a setting where there is possible development of companies. Reality that shop customers are primarily looking for workplace products for residence workplaces recommends that the market has a climbing fad of entrepreneurs as well as home based businesses.

Social factors: Social trends in the economic situation show that clients are trying to find ease along with eye-catching rates. Marketing research demonstrates how the client for Salomon And The Treasury Securities Auction does not have recognition concerning discovering solutions which can offer a mix of benefit and also inexpensive.

Technical factors: Innovation plays an important function in Salomon And The Treasury Securities Auction's service method specifically as the company is piloting Technology facilities which would offer technology sales and also assistance in the kind of memory upgrades, peripheral installations. (Recap of PEST in appendix 2).

OB Issues and also Symptoms.

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

Uneasiness about social change: There is concern about a social adjustment that would take place as soon as Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with most of the employee currently showing unhappiness over this possible action. This anticipated adjustment has actually produced stress in the work environment which has been coupled with the past tension of preparing the company for a possible merger with House Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is scarcity of workers that can match the difficult setting of a busy organization. Not only does this result in difficulty in discovering the appropriate individuals, it puts tension on new hires as can not hold up against the speed and also pressure that the company anticipates them to birth.

Twin Coverage Lines: Newbies locate this organizational society troublesome and also hard to cope with especially as dotted line connections are meant to be weaker as a whole and unbiased setting as well as efficiency examination is still done by the strong line supervisor. This suggests that novices could shed quality regarding their corresponding roles as well as purposes especially as dotted line coverage does not keep them in straight communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had actually been guessed that the latter would certainly take Krasnow's setting came as a blow to her morale. Lewis might have been capable and suitable for the task yet the reality that Kransnow's separation would certainly make Coles a straight record to Lewis may have been the reason for Coles' resignation from services.

Fear & Work Instability: Concern and also insecurity can be identified as 2 significant problems that Lewis would be managing especially as the merging has actually currently be terminated as well as 2 elderly execs of the marketing division would certainly be leaving. The whole duty of the department would be dropping on Lewis's shoulders that would certainly not just supervise of brining about a social adjustment but would additionally have to show herself in her new duty.

Incompatible Monitoring Style of Leader: Lewis's administration style and its conflict with the advertising division's role can additionally be seen as an OB difficulty especially as she has actually been used to dealing with concerns in the operations division where workers are educated to focus on processes as well as obtain them right. The advertising and marketing department on the various other hand can be viewed as a team of individuals who are utilized to being supported by Krasnow who focused a lot more on output than procedures.

Interdepartmental Arguments: Interdepartmental differences in between 3 departments, advertising and marketing, merchandizing as well as procedures specifically over the appropriation of the marketing mix can be recognized as another OB issue. Although the marketing department does not share the exact same vision as the various other 2 departments concerning the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and also operations departments do not concur over the advertising and marketing mix allotment amongst one another either.

Fragmentation in Marketing Division: Fragmentation between the advertising and marketing divisions can be recognized as one more OB issue which could require additional focus. The truth that the marketing and advertising sections in the advertising and marketing division are separated is stopping both divisions from obtaining from each various other's experience and also experience. Assimilation of advertising and marketing with retailing and procedures would certainly end up being more difficult if the advertising department itself is degenerated which can be one more potential OB worry.

Salomon And The Treasury Securities Auction Analysis

Various concepts have been utilized to clarify the scenarios to obtain further clarity concerning the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that juniors are passive as well as careless, have little aspiration as well as stand up to change. The difficult variation of this theory highlighted browbeating, tight controls, hazards and also punishments. With time it generates low performance, refined sabotage and competition (Deal, 2003). Although the situation at Salomon And The Treasury Securities Auction is not totally complying with Theory X, it can be seen that new hires are finding this atmosphere rather stressful which may eventually bring about a higher disposition of the management towards Theory X. According to McGregor's promoted view, which he called Theory Y, the necessary job of the monitoring is to set up organizational conditions to ensure that individuals can attain their own objectives best by routing their efforts in the direction of business incentives. If individuals find no satisfaction in their job, the monitoring would certainly have little choice but to count on concept X and outside control (Deal, 2003). Even while analyzing Lewis's monitoring design, theory X might have been suitable in the operations department somewhat but the Marketing department would certainly require dependence on Theory Y so as to get the creativity and also creativity from the groups.

Tuckman's Teamwork Concept: Regarding Lewis's problem concerning bringing consistency in between the marketing and advertising division is concerned, this would at first lead to contrast as discussed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, during the preliminary stage of team growth, individuals may not bond, as they are busy locating their place in the group. By incorporating the marketing and advertising department's job, there might be the same preliminary disconnect which might bring about the 2nd stage of 'storming' where the groups test one another. It is just throughout the third stage or 'norming' when they would come with each other to share suggestions prior to the group can bring around synergy in the 4th stage 'executing'.

When people are presented with modification, they get in stage one and so there might be feelings like unhappiness, unpredictability, disappointment, rage, worry, rejection and also disorientation.The scenario at the advertising division of Salomon And The Treasury Securities Auction is similar so Lewis can obtain comfortable with the suggestion that it is not amazing behavior. It is during this stage that Lewis will have to offer support to the division so that they can find a sense of direction. It can be seen just how Krasnow has actually currently made this shift easier by making Lewis get involved in the division a year before his actual separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has goes over the relevance of 'protection requires as being a reduced level requirement of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel protected and out of danger' is at the 2nd level of demands. Before an employee can be made to develop emotionally, he requires to have his 'Physical 'and also 'Security' needs satisfied.

SWOT Analysis for Salomon And The Treasury Securities Auction Case Study

Ramification of Analysis.

The OB analysis has considered different theories to understand how to manage the existing situation at hand. The adhering to three choices have been suggested to aid Lewis take care of the organizational obstacles in the marketing department. Each of these choices has been recommended for easing the change needed to bring the advertising and marketing department according to the requirements of the market as well as for making the social adjustment that would follow once the present leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting as well as Manufacturing features. Integration of Advertising with Operations.

Assessment of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merging days has know-how in business-to-business marketing along with company and also retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to handle both marketing and also marketing features.

The advantage of this technique is that it will certainly incorporate both functions while decreasing the requirement for working with an additional source for advertising. Lewis would be heading the advertising department and in any kind of case her replacement would be required for the current duty that she is executing. The disadvantage of this alternative is that outside hiring may produce animosity from interior workers that may be eying the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Manufacturing: Offered the affordable pressures as well as high quality work required from the ad agency, it is suggested that Lewis must permit the production device to be a different feature from the marketing system. Because the majority of ad agency had these two features as different systems, it makes more feeling to adhere to the standard. Both functions may be able to concentrate on their core turns on more effectively. The disadvantage of this technique would be that added costs would certainly have to be borne for setting up separate manufacturing functions. A manufacturing head might have to be worked with which can raise expenses for the organization.

Integration of Advertising with Procedures: Since Lewis is already dealing with the marketing and also procedures departments simultaneously; it makes sense to incorporate the two functions considering that she has been successfully looking after both ends. The reality that both divisions currently have major differences over allotment of resources suggests that this integration might be able to produce consistency especially as Lewis would certainly be heading both ends.However there are numerous downsides of this action especially as it would certainly put excessive problem over Lewis's shoulders. The truth that Lewis has to adapt her management design for the marketing department suggests that these 2 departments would certainly be culturally diverse. Along with this, Lewis may not have the ability to apply one kind of leadership style to both departments which could cause inadequacy in either one of the two functions.


An examination of the 3 choices suggests that integration of marketing and also procedures would not be a possible move due to the large distinctions in between the 2 departments regardless of the fact that currently Lewis is taking care of both. While splitting up of the manufacturing feature might have been a favorable step for the advertising division, the fact that it would certainly indicate putting a 3rd feature under Lewis's wing suggests this should be avoided.

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

Advertising and Marketing functions would certainly be combined.

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

Manufacturing feature will remain component of advertising and marketing under advertising function.

Lewis will certainly divide herself from procedures.

A democratic management design with employee empowerment will certainly be utilized in marketing department.

Open door plan as well as focus on cross department communication will be focused on eliminating disharmony.

Contingency plan.

If the combination does not work out as intended, a backup strategy would follow which would certainly separate the production feature from the advertising feature to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising division without an SVP. In that case the production function will absolutely be divided by placing it under an SVP production.