Shawmut National Corps Merger With Bank Of Boston Corp A Case Study Analysis


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Background and Facts

Shawmut National Corps Merger With Bank Of Boston Corp A an office products retailer for little and also medium sized organisations has actually recently been involved in planning for a merger with its rival House Deport, which has impacted efficiency levels in departmentswith the elderly supervisor involved in legal issues presented by the government Profession Compensation. With the Marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the role in the near future. With difficulties in the kind of a potential social adjustment as well as reduced employee spirits, the company needs a complete reengineering initiative at the advertising department.

Trouble Statement
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing department of Shawmut National Corps Merger With Bank Of Boston Corp A is boosting uncertainty in the working environment causing numerous obstacles 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 role in impacting strategic choices considering that Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Trade Commission's intervention while doing so. Offered the fact that the shop has an international visibility with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries might have the ability to impact performance or strategic goals. Federal Trade Compensation's antitrust suit versus the merging used up beneficial time of the organization's elderly monitoring recommending that 'political' factors can have serious ramifications for a global organisation.

Economic Factors: Economic factors such as the emergence of small companies in the international scenario suggest that Shawmut National Corps Merger With Bank Of Boston Corp A is flourishing in an environment where there is potential development of services. Reality that shop customers are mainly looking for workplace supplies for house workplaces recommends that the market has an increasing fad of business owners and also residence based businesses.

Social factors: Social patterns in the economic situation reveal that customers are seeking benefit in addition to eye-catching prices. Market research demonstrates how the client for Shawmut National Corps Merger With Bank Of Boston Corp A does not have awareness about finding solutions which can offer a mix of comfort as well as low costs.

Technical factors: Technology plays an important role in Shawmut National Corps Merger With Bank Of Boston Corp A's service method particularly as the organization is piloting Modern technology facilities which would use technology sales and support in the type of memory upgrades, peripheral installments. (Summary of INSECT in appendix 2).

OB Issues and Symptoms.

A number of underlying Business Habits problems can be seen in Shawmut National Corps Merger With Bank Of Boston Corp A's case as highlighted in this section.

Worries about cultural modification: There is apprehension regarding a cultural change that would certainly occur when Todd Krasnow leaves from his setting as the Exec Vice President of Advertising with the majority of the personnel currently showing discontent over this potential step. This predicted change has actually produced stress in the workplace which has actually been coupled with the previous tension of preparing the firm for a potential merging with Residence Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is scarcity of personnel that can match the demanding environment of a fast-paced company. Not just does this result in difficulty in finding the right individuals, it places stress and anxiety on brand-new hires as can not withstand the speed and also stress that the company expects them to bear.

Twin Reporting Lines: Novices find this organizational culture cumbersome and also challenging to manage especially as populated line connections are suggested to be weaker as a whole and objective setup and efficiency examination is still done by the strong line manager. This suggests that newcomers can shed clearness regarding their particular duties as well as goals particularly as populated line coverage does not maintain them in direct interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles despite the fact that it had been hypothesized that the latter would certainly take Krasnow's position came as a blow to her morale. Lewis might have been capable and also ideal for the job however the truth that Kransnow's separation would make Coles a direct record to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Work Instability: Fear and also insecurity can be recognized as two major concerns that Lewis would be dealing with particularly as the merger has actually now be cancelled and also 2 elderly execs of the marketing division would certainly be leaving. The entire duty of the division would certainly be dropping on Lewis's shoulders who would not simply supervise of brining about a cultural change however would likewise have to confirm herself in her new function.

Incompatible Management Design of Leader: Lewis's management design and its incompatibility with the advertising division's role can additionally be seen as an OB challenge particularly as she has been made use of to dealing with concerns in the procedures department where workers are shown to concentrate on processes and also obtain them. The advertising department on the various other hand can be viewed as a team of individuals who are made use of to being supported by Krasnow who concentrated more on result than processes.

Interdepartmental Disputes: Interdepartmental differences between 3 divisions, advertising and marketing, merchandizing and procedures specifically over the allotment of the marketing mix can be identified as one more OB problem. The marketing department does not share the very same vision as the other 2 departments regarding the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing as well as operations departments do not agree over the advertising and marketing mix appropriation amongst one another either.

Fragmentation in Advertising And Marketing Division: Disintegration in between the marketing and advertising divisions can be identified as another OB issue which can need additional attention. The fact that the marketing and advertising areas in the advertising division are detached is avoiding both departments from gaining from each various other's experience as well as experience. Combination of advertising and marketing with merchandising as well as operations would certainly become harder if the marketing division itself is disintegrated which can be another potential OB problem.

Shawmut National Corps Merger With Bank Of Boston Corp A Analysis

Various theories have actually been used to explain the circumstances to get more quality about the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most managers think that subordinates are easy and also careless, have little passion and also resist change. The situation at Shawmut National Corps Merger With Bank Of Boston Corp A is not completely adhering to Concept X, it can be seen that new hires are finding this atmosphere rather demanding which may ultimately lead to a greater disposition of the management towards Theory X. Even while analyzing Lewis's administration style, theory X might have been ideal in the operations department to some extent yet the Advertising and marketing division would certainly need dependence on Theory Y in order to obtain the creativity as well as originality from the groups.

Tuckman's Teamwork Theory: As much as Lewis's worry regarding bringing consistency between the marketing as well as marketing department is worried, this would originally lead to conflict as gone over by Bruce Tuckman in his 'Teamwork Theory'. By integrating the marketing and also advertising and marketing department's job, there may be the exact same preliminary disconnect which might lead to the 2nd stage of 'storming' where the teams challenge one another.

When people are provided with adjustment, they enter phase one and so there may be feelings like unhappiness, uncertainty, aggravation, temper, worry, rejection and also disorientation.The scenario at the advertising and marketing department of Shawmut National Corps Merger With Bank Of Boston Corp A is comparable so Lewis can obtain comfy with the concept that it is not amazing actions. It is during this phase that Lewis will certainly have to provide advice to the division so that they can discover a sense of direction. It can be seen exactly how Krasnow has already made this transition much easier by making Lewis get included in the department a year before his actual separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has goes over the relevance of 'security requires as being a lower level requirement of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel protected as well as out of risk' is at the second degree of requirements. Before a worker can be made to establish mentally, he requires to have his 'Physiological 'and 'Safety and security' needs fulfilled.

SWOT Analysis for Shawmut National Corps Merger With Bank Of Boston Corp A Case Study

Effects of Analysis.

The OB analysis has actually checked out various concepts to understand just how to cope with the existing situation at hand. The complying with 3 choices have been suggested to aid Lewis deal with the organizational challenges in the advertising department. Each of these choices has been recommended for reducing the transition needed to bring the advertising department according to the demands of the marketplace and also for making the social adjustment that would certainly comply with as soon as the present leader leaves.

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

Examination of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merging days has expertise in business-to-business marketing along with firm and also retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to take care of both marketing as well as advertising and marketing functions.

The advantage of this technique is that it will incorporate both functions while reducing the demand for hiring an additional source for marketing. In addition to this, Lewis would be heading the advertising and marketing division and also in any case her replacement would certainly be needed for the present function that she is doing. The disadvantage of this alternative is that external hiring might cause bitterness from inner employees who might be considering the setting of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and also Manufacturing: Provided the competitive stress as well as high quality work required from the advertising agency, it is advised that Lewis ought to enable the production system to be a separate feature from the advertising device. Since many advertising and marketing agencies had these 2 functions as separate units, it makes more feeling to comply with the norm.

Integration of Advertising And Marketing with Workflows: Given that Lewis is already looking after the marketing and operations divisions at the same time; it makes good sense to incorporate the two functions since she has actually been effectively dealing with both ends. The fact that both departments already have significant differences over allowance of resources recommends that this integration might be able to bring about consistency especially as Lewis would be heading both ends.However there are various negative aspects of this relocation particularly as it would place way too much burden over Lewis's shoulders. The reality that Lewis needs to adjust her monitoring style for the marketing department suggests that these 2 departments would be culturally varied. In addition to this, Lewis might not be able to apply one kind of leadership style to both divisions which can result in ineffectiveness in either among both features.


An evaluation of the 3 alternatives indicates that integration of marketing as well as procedures would not be a feasible step due to the huge differences in between the 2 departments in spite of the truth that currently Lewis is dealing with both. While separation of the production function might have been a favorable move for the advertising and marketing department, the reality that it would certainly imply placing a third function under Lewis's wing means this need to be avoided.

Action Strategy.
Lewis will take control of the duty of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

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

Lewis will divide herself from operations.

An autonomous leadership design with employee empowerment will be used in marketing department.

Open up door plan and also emphasis on cross departmental communication will be targeted at eliminating discord.

Backup plan.

If the combination does not work out as planned, a contingency strategy would follow which would certainly separate the manufacturing function from the advertising and marketing feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising department without an SVP. Because case the production function will absolutely be divided by positioning it under an SVP production.