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Sathavahana Strategies For Financial Turnaround Case Study Analysis

CASE STUDY

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Sathavahana Strategies For Financial Turnaround Case Study Solution

Background and Facts

Sathavahana Strategies For Financial Turnaround a workplace materials seller for little as well as average sized services has just recently been involved in planning for a merging with its rival Residence Deport, which has actually affected effectiveness degrees in departmentswith the senior supervisor associated with legal problems presented by the government Trade Commission. With the Advertising and marketing Head putting forward the information of his separation from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the role in the future. With difficulties in the type of a possible social modification and also reduced worker morale, the company requires a complete reengineering effort at the advertising and marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising division of Sathavahana Strategies For Financial Turnaround is raising unpredictability in the working environment leading to various challenges for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting calculated choices considering that Stapes Inc. had to abandon its strategies of combining with Workplace Deport after the Federal Trade Compensation's intervention in the process. Provided the truth that the shop has a worldwide visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries may have the ability to affect efficiency or calculated goals. Federal Trade Payment's antitrust fit against the merging used up beneficial time of the organization's senior management recommending that 'political' factors can have severe ramifications for a global business.

Economic Factors: Economic factors such as the development of small businesses in the global scenario suggest that Sathavahana Strategies For Financial Turnaround is flourishing in an atmosphere where there is possible development of businesses. Reality that shop clients are primarily looking for workplace materials for residence offices suggests that the market has a climbing pattern of business owners and house based organisations.

Social factors: Social trends in the economy reveal that customers are searching for benefit along with eye-catching rates. Market research shows how the customer for Sathavahana Strategies For Financial Turnaround does not have recognition concerning locating options which can supply a mix of ease and also low costs.

Technical factors: Innovation plays an essential function in Sathavahana Strategies For Financial Turnaround's company technique especially as the company is piloting Modern technology facilities which would offer innovation sales and assistance in the form of memory upgrades, outer installments. (Summary of INSECT in appendix 2).

OB Issues and also Manifestations.

Numerous underlying Organizational Behavior concerns can be seen in Sathavahana Strategies For Financial Turnaround's case as highlighted in this section.

Concerns about social adjustment: There is uneasiness about a cultural change that would take place as soon as Todd Krasnow leaves from his setting as the Exec Vice President of Advertising And Marketing with a lot of the employee already showing unhappiness over this possible relocation. This predicted modification has actually produced stress and anxiety in the work environment which has been paired with the past tension of preparing the firm for a possible merging with Home Deport.
Pest Analysis
Difficult Work Setting for Newcomers: There is scarcity of workers that can match the stressful setting of a busy company. Not only does this lead to difficulty in locating the appropriate people, it puts anxiety on brand-new hires as can not hold up against the speed and stress that the organization expects them to birth.

Dual Reporting Lines: Newcomers discover this organizational society difficult and also challenging to handle specifically as populated line connections are suggested to be weak in general and also objective setting as well as performance evaluation is still done by the strong line manager. This means that newbies might shed quality regarding their corresponding functions and also purposes especially as populated line coverage does not keep them in direct communication with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles despite the fact that it had actually been hypothesized that the latter would certainly take Krasnow's placement came as a blow to her spirits. Lewis may have been qualified and ideal for the job however the fact that Kransnow's separation would make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Worry & Work Instability: Worry as well as insecurity can be identified as 2 significant concerns that Lewis would certainly be dealing with particularly as the merging has actually currently be cancelled and also two senior execs of the marketing department would certainly be leaving. The whole duty of the department would certainly be falling on Lewis's shoulders who would certainly not just supervise of brining regarding a cultural adjustment but would also have to show herself in her brand-new function.

Incompatible Administration Style of Leader: Lewis's administration style and also its incompatibility with the marketing division's duty can additionally be seen as an OB difficulty particularly as she has been used to taking care of issues in the operations division where personnel are taught to concentrate on processes and also obtain them. The marketing department on the other hand can be seen as a group of people who are utilized to being supported by Krasnow who focused much more on outcome than processes.

Interdepartmental Differences: Interdepartmental disagreements in between 3 divisions, marketing, merchandizing and procedures respectively over the allowance of the advertising mix can be recognized as one more OB issue. Although the advertising division does not share the same vision as the various other 2 divisions concerning the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and procedures departments do not concur over the marketing mix allocation among each other either.

Disintegration in Advertising Division: Fragmentation in between the advertising and marketing departments can be determined as another OB issue which might require more attention. The truth that the marketing and advertising areas in the marketing department are disconnected is avoiding both divisions from gaining from each other's experience and also expertise. Assimilation of marketing with retailing as well as operations would certainly become more difficult if the marketing department itself is broken down which can be another potential OB concern.

Sathavahana Strategies For Financial Turnaround Analysis

Different concepts have actually been made use of to describe the scenarios to obtain further clarity regarding the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that juniors are easy as well as lazy, have little ambition and stand up to adjustment. The difficult variation of this concept highlighted threat, limited controls, dangers and also punishments. Gradually it creates low productivity, refined sabotage and rivalry (Deal, 2003). Although the circumstance at Sathavahana Strategies For Financial Turnaround is not entirely adhering to Theory X, it can be seen that brand-new hires are finding this atmosphere rather stressful which may at some point bring about a better disposition of the monitoring in the direction of Theory X. Based on McGregor's supported sight, which he called Concept Y, the important task of the management is to arrange organizational problems to make sure that individuals can accomplish their own goals best by routing their initiatives towards organizational rewards. If individuals discover no satisfaction in their work, the management would have little choice yet to rely upon concept X and outside control (Offer, 2003). Also while assessing Lewis's management design, theory X might have appropriated in the operations division to some extent but the Advertising department would require dependence on Concept Y so as to get the creativity as well as creativity from the groups.

Tuckman's Team effort Theory: As much as Lewis's worry about bringing consistency in between the advertising and also marketing division is worried, this would initially lead to clash as reviewed by Bruce Tuckman in his 'Team effort Concept'. By integrating the advertising and marketing and also marketing division's job, there may be the same preliminary disconnect which can lead to the second stage of 'storming' where the teams challenge one another.

Bridges' Transition Model: Based On William Bridge's theory (appendix 4), people are quite uncomfortable with modification, which is noticeable by the circumstance at Sathavahana Strategies For Financial Turnaround The scenario can be seen as a typical course of life if is studied based on Bridge's concept where he clarifies that individuals undergo three phases of transition when they experience modification. 'End, shedding and also Releasing', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people exist with modification, they go into stage one therefore there might be emotions like unhappiness, uncertainty, disappointment, temper, worry, denial and disorientation.The scenario at the marketing division of Sathavahana Strategies For Financial Turnaround is similar so Lewis can get comfy with the suggestion that it is not remarkable actions. In the 2nd phase, there might be a demand to connect the void in between the brand-new as well as old culture so Lewis may have to face this experience when Krasnow leaves. There might be low morale as well as reduced efficiency at this stage which must not be taken as a setback. It is during this stage that Lewis will certainly have to provide assistance to the department to make sure that they can locate an orientation. It can be seen exactly how Krasnow has actually currently made this transition less complicated by making Lewis get associated with the division a year prior to his actual separation. Based on Bridges' Version, stage three will certainly cause openness to understanding, High power and dedication as individuals will welcome the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has discusses the significance of 'safety requires as being a lower degree need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel safe and secure and also out of danger' is at the 2nd degree of needs. Before a staff member can be made to establish emotionally, he requires to have his 'Physical 'and 'Security' needs met.

SWOT Analysis for Sathavahana Strategies For Financial Turnaround Case Study



Effects of Analysis.

The OB analysis has taken a look at various concepts to recognize exactly how to handle the present circumstance available. The complying with 3 options have actually been suggested to help Lewis manage the organizational obstacles in the advertising division. Each of these choices has actually been proposed for relieving the change needed to bring the marketing department in accordance with the requirements of the marketplace as well as for making the cultural change that would comply with when the present leader leaves.

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

Assessment of Alternatives.

Integration of Marketing & Advertising And Marketing Functions: The in-house marketing firm of Sathavahana Strategies For Financial Turnaround is currently toughness for the organization in terms of conserving up on overheads associated with marketing and promotion. Because no new employment has actually been done after Bridget Cole's separation with the reporting line being straight assigned to Krasnow for the advertising feature, this is a desirable possibility for integrating the advertising and marketing features. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merger days has know-how in business-to-business advertising in addition to company and also retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to deal with both marketing and advertising features.

The benefit of this method is that it will incorporate the two features while minimizing the need for hiring an additional resource for advertising. Lewis would certainly be heading the advertising department and in any kind of case her replacement would be required for the current role that she is carrying out. The drawback of this option is that exterior hiring might bring about animosity from inner employees who may be considering the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Production: Provided the competitive stress and high quality job needed from the ad agency, it is recommended that Lewis should allow the production unit to be a different function from the advertising system. Because many advertising agencies had these 2 functions as separate units, it makes more sense to follow the standard. Both features may be able to concentrate on their core triggers much more successfully. The downside of this approach would certainly be that additional costs would certainly have to be birthed for setting up different production functions. A production head may have to be employed which might boost expenses for the company.

Combination of Marketing with Workflows: Considering that Lewis is currently dealing with the advertising as well as procedures divisions all at once; it makes sense to incorporate the two functions since she has been successfully caring for both ends. The truth that the two divisions already have major differences over allotment of resources suggests that this assimilation may have the ability to produce consistency specifically as Lewis would be heading both ends.However there are different drawbacks of this action particularly as it would certainly place too much concern over Lewis's shoulders. The truth that Lewis needs to adapt her management style for the marketing division recommends that these 2 divisions would be culturally varied. In addition to this, Lewis may not have the ability to use one kind of leadership design to both divisions which could result in inadequacy in either among the two functions.

Recommendation.



An analysis of the three options shows that integration of advertising and marketing and also procedures would not be a possible relocation due to the large differences in between the 2 departments regardless of the reality that currently Lewis is taking care of both. While splitting up of the manufacturing function may have been a favorable step for the advertising and marketing department, the fact that it would certainly imply positioning a third feature under Lewis's wing implies this should be stayed clear of.

Action Plan.
Recommendation
Lewis will certainly take control of the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be merged.

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

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

Lewis will certainly divide herself from operations.

An autonomous leadership design with worker empowerment will certainly be made use of in advertising and marketing department.

Open up door plan as well as focus on cross department interaction will certainly be aimed at removing disharmony.

Backup strategy.

If the combination does not work out as prepared, a backup strategy would comply with which would separate the production feature from the advertising and marketing feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising and marketing division without an SVP. Because case the manufacturing function will certainly be separated by putting it under an SVP manufacturing.