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Scotiamcleod Equity Trading The Quantex Decision Case Study Analysis

Background and Facts

Scotiamcleod Equity Trading The Quantex Decision an office supplies seller for little and also average sized organisations has actually lately been involved in planning for a merger with its competitor Residence Deport, which has actually influenced efficiency degrees in departmentswith the senior manager associated with lawful problems presented by the federal Trade Commission. With the Advertising Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the present head of procedures has been asked to take the function in the future. With challenges in the type of a potential cultural change as well as low employee morale, the organization needs a total reengineering initiative at the marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising and marketing division of Scotiamcleod Equity Trading The Quantex Decision is boosting unpredictability in the working environment bring about various difficulties 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 significant function in impacting strategic choices because Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Trade Compensation's treatment at the same time. Offered the truth that the shop has an international visibility with branches in UK, USA, Canada as well as Germany, political consider each of these nations may be able to impact efficiency or strategic objectives. Federal Profession Compensation's antitrust suit against the merging took up beneficial time of the organization's senior administration recommending that 'political' factors can have severe ramifications for a worldwide service.

Economic Factors: Economic factors such as the emergence of small companies in the global circumstance suggest that Scotiamcleod Equity Trading The Quantex Decision is flourishing in an environment where there is potential development of businesses. Along with this, truth that store clients are primarily seeking workplace products for home offices recommends that the market has a climbing trend of entrepreneurs and home organisations.

Social factors: Social trends in the economic climate show that customers are seeking benefit in addition to eye-catching rates. Market research shows how the client for Scotiamcleod Equity Trading The Quantex Decision lacks awareness regarding finding solutions which can provide a combination of ease and also low costs.

Technical factors: Technology plays a crucial role in Scotiamcleod Equity Trading The Quantex Decision's organisation technique specifically as the organization is piloting Technology centers which would certainly offer modern technology sales as well as assistance in the kind of memory upgrades, outer installments. (Summary of PEST in appendix 2).

OB Issues and Symptoms.

A number of underlying Business Habits issues can be seen in Scotiamcleod Equity Trading The Quantex Decision's case as highlighted in this area.

Apprehensions regarding social change: There is concern concerning a cultural change that would take place once Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with the majority of the employee currently showing unhappiness over this possible relocation. This anticipated modification has created anxiety in the workplace which has actually been coupled with the past tension of preparing the firm for a potential merging with House Deport.
Pest Analysis
Difficult Task Setting for Newcomers: There is shortage of personnel that can match the difficult environment of a busy company. Not only does this bring about difficulty in discovering the right people, it puts stress on brand-new hires as can not hold up against the pace as well as stress that the organization anticipates them to bear.

Twin Coverage Lines: Novices locate this business society cumbersome and challenging to deal with specifically as populated line connections are indicated to be weak generally as well as unbiased setting and performance assessment is still done by the solid line manager. This means that beginners can shed clarity about their particular roles and also goals especially as populated line reporting does not maintain them in direct communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had been speculated that the last would certainly take Krasnow's placement came as a strike to her morale. Lewis may have been qualified and also proper for the job however the fact that Kransnow's separation would make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Task Instability: Concern and also insecurity can be recognized as 2 significant problems that Lewis would certainly be dealing with especially as the merging has actually currently be cancelled as well as 2 elderly execs of the marketing division would certainly be leaving. The whole responsibility of the division would be dropping on Lewis's shoulders who would certainly not simply supervise of brining regarding a cultural adjustment yet would likewise need to prove herself in her new function.

Inappropriate Monitoring Design of Leader: Lewis's monitoring style as well as its conflict with the marketing division's function can likewise be viewed as an OB obstacle particularly as she has actually been made use of to dealing with concerns in the procedures division where employees are educated to focus on procedures and get them right. The advertising and marketing division on the various other hand can be viewed as a team of people who are used to being nurtured by Krasnow that concentrated a lot more on output than procedures.

Interdepartmental Disagreements: Interdepartmental arguments in between three departments, advertising and marketing, merchandizing and procedures respectively over the allowance of the advertising mix can be identified as one more OB worry. The marketing division does not share the exact same vision as the other 2 divisions relating to the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing as well as operations divisions do not agree over the marketing mix allocation among one an additional either.

Fragmentation in Advertising And Marketing Department: Fragmentation between the marketing and advertising divisions can be recognized as an additional OB issue which could need further attention. The fact that the marketing and advertising areas in the advertising department are disconnected is avoiding both divisions from gaining from each other's experience and competence. Combination of advertising with retailing and also operations would certainly come to be harder if the marketing division itself is disintegrated which can be an additional possible OB worry.

Scotiamcleod Equity Trading The Quantex Decision Analysis

Various concepts have actually been used to discuss the circumstances to obtain more clearness concerning the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors believe that staffs are easy and lazy, have little passion and withstand adjustment. The situation at Scotiamcleod Equity Trading The Quantex Decision is not entirely adhering to Concept X, it can be seen that new hires are discovering this atmosphere instead demanding which might ultimately lead to a higher inclination of the administration towards Concept X. Also while examining Lewis's management design, concept X may have been appropriate in the operations division to some degree but the Advertising and marketing department would require reliance on Concept Y in order to obtain the creativity and also originality from the teams.

Tuckman's Teamwork Theory: As for Lewis's problem concerning bringing consistency in between the marketing and advertising division is worried, this would at first cause contrast as talked about by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, during the preliminary stage of team advancement, people might not bond, as they are hectic locating their place in the group. By incorporating the advertising and marketing department's job, there might coincide preliminary detach which can lead to the second phase of 'storming' where the teams test each other. It is only throughout the third phase or 'norming' when they would certainly come together to share concepts before the group can bring around synergy in the fourth phase 'carrying out'.

When individuals are offered with change, they enter phase one and so there may be emotions like sadness, uncertainty, aggravation, anger, anxiety, denial and disorientation.The situation at the marketing division of Scotiamcleod Equity Trading The Quantex Decision is similar so Lewis can get comfy with the idea that it is not remarkable habits. It is during this stage that Lewis will certainly have to provide support to the division so that they can discover a feeling of instructions. It can be seen how Krasnow has already made this change less complicated by making Lewis obtain included in the department a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has discusses the relevance of 'safety and security needs as being a reduced degree requirement of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe as well as out of risk' is at the 2nd degree of demands. Prior to a worker can be made to develop psychologically, he needs to have his 'Physical 'and 'Safety and security' requires met.

SWOT Analysis for Scotiamcleod Equity Trading The Quantex Decision Case Study

Implication of Analysis.

The OB analysis has actually considered different concepts to comprehend just how to deal with the present scenario available. The complying with three options have actually been recommended to assist Lewis handle the organizational obstacles in the advertising and marketing department. Each of these choices has actually been recommended for easing the change required to bring the marketing division in line with the requirements of the marketplace and for making the cultural modification that would adhere to when the existing leader leaves.

Integration of advertising and marketing features. Separating Adverting as well as Manufacturing features. Integration of Marketing with Workflow.

Analysis of Alternatives.

Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merger days has expertise in business-to-business advertising along with company and also retail advertising experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to deal with both marketing and also advertising and marketing functions.

The advantage of this technique is that it will certainly integrate both features while decreasing the need for working with an additional resource for advertising. Along with this, Lewis would be heading the marketing division and also regardless her substitute would be required for the present function that she is performing. The downside of this choice is that exterior hiring might bring about resentment from interior workers who might be looking at the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting and also Manufacturing: Given the competitive pressures and also high quality work required from the ad agency, it is suggested that Lewis must enable the manufacturing device to be a separate function from the marketing unit. Given that a lot of advertising agencies had these two functions as separate systems, it makes even more sense to adhere to the norm. Along with this, both features may be able to focus on their core activates more successfully. The drawback of this technique would certainly be that extra expenses would have to be borne for setting up separate manufacturing features. In addition to this, a production head might have to be worked with which can increase overheads for the company.

Combination of Advertising with Procedures: Because Lewis is currently taking treatment of the marketing as well as procedures departments all at once; it makes feeling to incorporate the 2 features since she has actually been efficiently taking treatment of both ends. The truth that Lewis has to adapt her monitoring design for the marketing department suggests that these 2 divisions would be culturally varied.


An examination of the 3 options indicates that integration of marketing and operations would not be a feasible action due to the large distinctions between the 2 departments despite the reality that presently Lewis is taking care of both. While splitting up of the production feature might have been a beneficial relocation for the marketing division, the truth that it would mean placing a third function under Lewis's wing suggests this must be stayed clear of.

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

Marketing and advertising features would certainly be merged.

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

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

Lewis will separate herself from operations.

A democratic leadership style with staff member empowerment will certainly be made use of in advertising department.

Open door plan and also emphasis on cross departmental communication will be aimed at removing discord.

Contingency plan.

If the integration does not exercise as planned, a backup plan would follow which would certainly separate the production feature from the advertising and marketing feature to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising division without an SVP. Because case the production feature will definitely be separated by putting it under an SVP manufacturing.