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Scotiamcleod Equity Trading The Quantex Decision Case Study Analysis

Background and Facts

Scotiamcleod Equity Trading The Quantex Decision a workplace products retailer for little and moderate sized companies has actually recently been associated with planning for a merging with its rival Home Deport, which has impacted performance levels in departmentswith the elderly manager involved in lawful issues presented by the federal Profession Payment. With the Advertising Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the near future. With challenges in the type of a prospective social change and reduced staff member morale, the organization requires a complete reengineering effort at the marketing division.

Problem Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising and marketing department of Scotiamcleod Equity Trading The Quantex Decision is raising uncertainty in the workplace bring about various obstacles for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting critical choices given that Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Trade Payment's intervention in the process. Offered the fact that the shop has a worldwide existence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these countries might have the ability to affect efficiency or tactical objectives. Federal Trade Commission's antitrust fit against the merging took up useful time of the organization's elderly management suggesting that 'political' factors can have major ramifications for a global organisation.

Economic Factors: Financial factors such as the emergence of small businesses in the global circumstance recommend that Scotiamcleod Equity Trading The Quantex Decision is growing in a setting where there is possible growth of services. Fact that shop customers are primarily looking for workplace products for residence workplaces recommends that the market has an increasing fad of entrepreneurs and residence based services.

Social factors: Social patterns in the economic climate reveal that customers are trying to find benefit in addition to attractive prices. Marketing research demonstrates how the consumer for Scotiamcleod Equity Trading The Quantex Decision lacks understanding regarding finding services which can offer a mix of comfort as well as inexpensive.

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

OB Issues as well as Effects.

Numerous underlying Organizational Actions concerns can be seen in Scotiamcleod Equity Trading The Quantex Decision's case as highlighted in this area.

Apprehensions about cultural change: There is uneasiness regarding a social adjustment that would happen as soon as Todd Krasnow leaves from his setting as the Executive Vice President of Advertising And Marketing with the majority of the staff members already showing discontent over this possible step. This anticipated modification has actually created anxiety in the workplace which has actually been paired with the previous stress of preparing the company for a potential merger with Residence Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is shortage of personnel that can match the stressful atmosphere of a fast-paced organization. Not only does this lead to trouble in discovering the ideal individuals, it places anxiety on brand-new hires as can not hold up against the rate as well as pressure that the company expects them to bear.

Dual Reporting Lines: Newbies discover this organizational culture difficult as well as difficult to cope with specifically as dotted line connections are suggested to be weak in general as well as unbiased setup and also efficiency assessment is still done by the strong line supervisor. This implies that beginners can lose clearness about their corresponding roles as well as purposes specifically as populated line reporting does not keep them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles despite the fact that it had actually been guessed that the last would certainly take Krasnow's setting came as a strike to her spirits. Lewis might have been qualified as well as suitable for the work however the reality that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from services.

Concern & Task Instability: Worry as well as insecurity can be identified as two major problems that Lewis would be managing particularly as the merger has currently be cancelled and two senior execs of the advertising division would certainly be leaving. The entire obligation of the department would be falling on Lewis's shoulders who would not just be in charge of brining regarding a cultural modification yet would also have to confirm herself in her brand-new duty.

Inappropriate Management Design of Leader: Lewis's monitoring style as well as its conflict with the advertising department's duty can additionally be viewed as an OB difficulty especially as she has been used to dealing with concerns in the procedures department where personnel are educated to concentrate on processes and also get them right. The advertising and marketing department on the other hand can be seen as a team of individuals that are utilized to being supported by Krasnow who focused more on result than procedures.

Interdepartmental Arguments: Interdepartmental disagreements between three departments, advertising, merchandizing as well as procedures respectively over the allowance of the advertising mix can be determined as one more OB concern. The marketing department does not share the very same vision as the various other two departments regarding the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing as well as operations divisions do not agree over the advertising mix allotment among one another either.

Disintegration in Marketing Division: Disintegration in between the advertising and marketing departments can be recognized as one more OB problem which might need more attention. The truth that the advertising and marketing sections in the advertising and marketing department are detached is avoiding both departments from acquiring from each various other's experience and knowledge. Integration of marketing with retailing and also procedures would certainly end up being harder if the advertising and marketing department itself is degenerated which can be one more possible OB issue.

Scotiamcleod Equity Trading The Quantex Decision Analysis

Numerous theories have actually been made use of to describe the scenarios to obtain more quality concerning the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most managers believe that subordinates are passive as well as careless, have little ambition and also withstand modification. The circumstance at Scotiamcleod Equity Trading The Quantex Decision is not totally following Theory X, it can be seen that brand-new hires are finding this environment instead difficult which might at some point lead to a greater disposition of the administration in the direction of Theory X. Even while analyzing Lewis's administration style, theory X may have been appropriate in the operations division to some extent yet the Advertising and marketing division would certainly need reliance on Concept Y in order to get the creative thinking and also creativity from the teams.

Tuckman's Team effort Theory: As much as Lewis's issue about bringing harmony between the marketing as well as marketing department is concerned, this would at first lead to clash as talked about by Bruce Tuckman in his 'Synergy Concept'. By incorporating the marketing and advertising department's job, there might be the exact same initial separate which might lead to the 2nd stage of 'storming' where the groups challenge one another.

Bridges' Change Design: As per William Bridge's concept (appendix 4), people are rather uneasy with adjustment, which is obvious by the scenario at Scotiamcleod Equity Trading The Quantex Decision The situation can be seen as a typical program of life if is examined according to Bridge's theory where he explains that people undergo 3 phases of shift when they experience modification. 'Closing, losing and also Letting go', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they go into stage one and so there may be feelings like sadness, uncertainty, aggravation, anger, anxiety, denial and disorientation.The scenario at the advertising department of Scotiamcleod Equity Trading The Quantex Decision is similar so Lewis can obtain comfortable with the concept that it is not extraordinary actions. In the 2nd phase, there might be a requirement to bridge the space between the brand-new and old culture so Lewis might have to face this experience as soon as Krasnow leaves. There might be low morale as well as reduced performance at this phase which should not be taken as a trouble. It is during this phase that Lewis will need to provide guidance to the department to make sure that they can locate a sense of direction. It can be seen how Krasnow has actually currently made this transition easier by making Lewis obtain associated with the division a year before his real departure. Based on Bridges' Model, stage three will certainly produce visibility to understanding, High power as well as dedication as individuals will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB concern pertaining to insecurity at the workplace has actually been set off first of all by the modification in monitoring as well as secondly by the reality that the merger will no more be initiated. Abraham Maslow in his Concept of 'Needs Power structure' (appendix 5) has talks about the relevance of 'protection requires as being a reduced level requirement of a human for triggering inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to feel safe and secure and unharmed' goes to the second level of requirements. Before an employee can be made to develop psychologically, he needs to have his 'Physical 'as well as 'Safety and security' needs satisfied. This suggests that unless the employees are made to really feel secure concerning their existing employment condition in Scotiamcleod Equity Trading The Quantex Decision they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Scotiamcleod Equity Trading The Quantex Decision Case Study

Implication of Analysis.

The OB analysis has checked out numerous concepts to recognize exactly how to deal with the present circumstance handy. The following three alternatives have actually been suggested to aid Lewis deal with the business difficulties in the advertising and marketing division. Each of these choices has actually been proposed for reducing the shift needed to bring the advertising division in accordance with the demands of the market and also for making the social modification that would certainly adhere to when the present leader leaves.

Integration of marketing and advertising functions. Dividing Adverting as well as Manufacturing functions. Assimilation of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Integration of Advertising And Marketing & Advertising And Marketing Functions: The in-house marketing company of Scotiamcleod Equity Trading The Quantex Decision is currently strength for the company in terms of saving up on overheads connected to advertising and also promotion. Since no brand-new employment has been done after Bridget Cole's departure with the coverage line being straight designated to Krasnow for the advertising and marketing feature, this is a positive possibility for integrating the marketing and advertising features. Judith Shapiro that has earlier been talked to by Lewis during the earlier merging days has know-how in business-to-business advertising along with firm as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing functions.

The benefit of this method is that it will integrate both features while reducing the requirement for working with an additional source for advertising. Lewis would be heading the advertising and marketing division as well as in any type of case her substitute would certainly be needed for the existing function that she is doing. The drawback of this alternative is that external hiring may produce animosity from interior personnel that may be eying the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Production: Offered the affordable stress and high quality work called for from the advertising and marketing agency, it is recommended that Lewis needs to allow the manufacturing system to be a different function from the advertising unit. Because many advertising firms had these 2 functions as separate units, it makes more feeling to comply with the norm.

Integration of Marketing with Operations: Because Lewis is currently looking after the advertising and marketing and also operations divisions at the same time; it makes sense to integrate the two features because she has actually been efficiently caring for both ends. The reality that both departments currently have major differences over allotment of sources suggests that this integration may be able to bring about harmony particularly as Lewis would certainly be heading both ends.However there are various drawbacks of this action particularly as it would certainly put way too much burden over Lewis's shoulders. The truth that Lewis needs to adjust her monitoring design for the advertising division suggests that these two divisions would certainly be culturally varied. Along with this, Lewis may not be able to use one sort of management design to both departments which could cause inefficiency in either one of the two features.


An assessment of the three alternatives suggests that assimilation of advertising as well as operations would certainly not be a practical move due to the substantial distinctions between the 2 departments regardless of the fact that presently Lewis is taking care of both. While splitting up of the manufacturing feature might have been a desirable step for the marketing department, the reality that it would imply putting a 3rd function under Lewis's wing implies this must be stayed clear of.

Action Plan.
Lewis will take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Production function will continue to be part of advertising under advertising feature.

Lewis will separate herself from procedures.

A democratic leadership design with worker empowerment will be utilized in advertising department.

Open up door policy as well as emphasis on cross department communication will be focused on getting rid of dissonance.

Backup plan.

If the integration does not work out as planned, a contingency strategy would certainly adhere to which would separate the manufacturing feature from the advertising feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising division without an SVP. Because case the manufacturing feature will absolutely be divided by placing it under an SVP production.