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


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

Background and Facts

Shawmut National Corps Merger With Bank Of Boston Corp B a workplace supplies store for small and moderate sized companies has just recently been involved in preparing for a merging with its competitor House Deport, which has actually affected performance degrees in departmentswith the elderly manager involved in lawful difficulties presented by the government Trade Payment. With the Marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the present head of operations has been asked to take the role in the future. With obstacles in the type of a prospective social modification as well as low staff member morale, the company requires a complete reengineering initiative at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The potential social modification at the advertising department of Shawmut National Corps Merger With Bank Of Boston Corp B is boosting unpredictability in the workplace leading to numerous difficulties for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing calculated decisions given that Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Profession Commission's treatment in the process. Given the reality that the store has an international presence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these nations may have the ability to affect performance or critical goals. Federal Profession Compensation's antitrust match versus the merging used up important time of the company's elderly management recommending that 'political' factors can have severe implications for a worldwide organisation.

Economic Factors: Financial factors such as the development of local business in the international circumstance suggest that Shawmut National Corps Merger With Bank Of Boston Corp B is flourishing in an atmosphere where there is possible growth of services. In addition to this, fact that store clients are mainly trying to find office supplies for office recommends that the market has a climbing trend of business owners and also home organisations.

Social factors: Social patterns in the economic situation show that consumers are looking for benefit as well as appealing rates. Marketing research demonstrates how the client for Shawmut National Corps Merger With Bank Of Boston Corp B lacks awareness about finding solutions which can provide a mix of convenience and also inexpensive.

Technical factors: Modern technology plays an essential function in Shawmut National Corps Merger With Bank Of Boston Corp B's organisation approach specifically as the company is piloting Technology centers which would certainly supply innovation sales and also support in the kind of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and also Manifestations.

Several underlying Organizational Habits concerns can be seen in Shawmut National Corps Merger With Bank Of Boston Corp B's case as highlighted in this area.

Concerns about cultural change: There is apprehension regarding a cultural adjustment that would certainly happen when Todd Krasnow leaves from his setting as the Exec Vice President of Advertising And Marketing with most of the personnel already revealing discontent over this possible action. This expected modification has actually produced anxiety in the work environment which has been coupled with the previous stress and anxiety of preparing the firm for a prospective merger with House Deport.
Pest Analysis
Difficult Task Setting for Newcomers: There is lack of workers that can match the demanding atmosphere of a busy organization. Not just does this result in problem in locating the appropriate people, it puts anxiety on brand-new hires as can not stand up to the speed and stress that the organization expects them to bear.

Dual Coverage Lines: Novices find this organizational society troublesome and challenging to cope with particularly as populated line relationships are indicated to be weak in general and unbiased setting and also efficiency assessment is still done by the solid line supervisor. This suggests that newbies could lose clearness about their particular roles and also objectives specifically as populated line reporting does not maintain them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles even though it had been speculated that the latter would certainly take Krasnow's setting came as an impact to her spirits. Lewis may have been capable and proper for the job but the truth that Kransnow's departure would make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Anxiety & Work Instability: Worry and also insecurity can be determined as 2 significant concerns that Lewis would be dealing with specifically as the merger has currently be terminated as well as 2 elderly executives of the advertising and marketing department would certainly be leaving. The whole obligation of the division would be dropping on Lewis's shoulders who would not just supervise of brining about a social change yet would certainly also need to prove herself in her brand-new duty.

Inappropriate Administration Design of Leader: Lewis's administration style as well as its conflict with the advertising department's duty can additionally be seen as an OB challenge especially as she has been utilized to taking care of problems in the procedures department where workers are shown to concentrate on processes as well as get them. The advertising and marketing division on the other hand can be viewed as a team of individuals that are used to being supported by Krasnow who concentrated a lot more on result than processes.

Interdepartmental Disputes: Interdepartmental differences between 3 divisions, advertising, merchandizing and also procedures specifically over the allowance of the marketing mix can be identified as one more OB issue. The advertising department does not share the very same vision as the various other two divisions concerning the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and procedures divisions do not agree over the advertising and marketing mix allotment amongst one an additional either.

Disintegration in Advertising Division: Fragmentation between the marketing and advertising departments can be recognized as an additional OB issue which might require more focus. The reality that the advertising and marketing sections in the advertising and marketing department are disconnected is preventing both departments from obtaining from each other's experience and also knowledge. Combination of advertising with merchandising and also procedures would certainly become harder if the advertising and marketing department itself is degenerated which can be another possible OB concern.

Shawmut National Corps Merger With Bank Of Boston Corp B Analysis

Different concepts have been made use of to discuss the scenarios to obtain further quality 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 and lazy, have little ambition and resist modification. The situation at Shawmut National Corps Merger With Bank Of Boston Corp B is not totally following Concept X, it can be seen that new hires are discovering this setting rather difficult which may at some point lead to a better disposition of the management in the direction of Theory X. Also while analyzing Lewis's management style, concept X may have been suitable in the operations division to some degree but the Marketing department would require reliance on Concept Y in order to obtain the creativity and also originality from the groups.

Tuckman's Team effort Theory: As much as Lewis's worry about bringing consistency in between the marketing and advertising division is concerned, this would at first lead to contrast as gone over by Bruce Tuckman in his 'Teamwork Concept'. By integrating the advertising and marketing as well as marketing division's job, there may be the exact same first separate which might lead to the second phase of 'storming' where the groups challenge one another.

Bridges' Shift Version: According To William Bridge's concept (appendix 4), individuals are rather uncomfortable with adjustment, which is obvious by the circumstance at Shawmut National Corps Merger With Bank Of Boston Corp B The circumstance can be viewed as a regular training course of life if is examined according to Bridge's theory where he clarifies that people undergo three stages of transition when they experience change. 'Ending, losing and Releasing', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When individuals are presented with modification, they go into stage one and so there might be feelings like unhappiness, unpredictability, stress, anger, anxiety, denial and disorientation.The circumstance at the advertising division of Shawmut National Corps Merger With Bank Of Boston Corp B is similar so Lewis can get comfortable with the idea that it is not remarkable habits. In the 2nd stage, there might be a requirement to bridge the void in between the new and also old society so Lewis might have to encounter this challenge as soon as Krasnow leaves. There may be reduced morale and also reduced efficiency at this stage which ought to not be taken as a setback. It is during this stage that Lewis will have to give support to the department to ensure that they can discover a sense of direction. It can be seen just how Krasnow has currently made this change much easier by making Lewis obtain involved in the division a year before his actual departure. As per Bridges' Model, phase 3 will certainly produce visibility to knowing, High power and also commitment as people will embrace the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has talks about the significance of 'safety and security requires as being a reduced level requirement of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel safe and secure and also out of threat' is at the 2nd level of requirements. Before a staff member can be made to establish mentally, he requires to have his 'Physiological 'and 'Security' requires fulfilled.

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

Effects of Analysis.

The OB analysis has actually looked at various concepts to understand exactly how to deal with the present situation at hand. The complying with three choices have been proposed to help Lewis deal with the business difficulties in the advertising department. Each of these alternatives has actually been proposed for reducing the shift required to bring the advertising department in accordance with the demands of the marketplace as well as for making the cultural change that would adhere to once the existing leader leaves.

Combination of marketing and advertising functions. Separating Adverting as well as Manufacturing features. Integration of Advertising with Workflow.

Evaluation of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merging days has proficiency in business-to-business advertising along with company as well as retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to handle both marketing as well as advertising functions.

The advantage of this approach is that it will incorporate the two features while lowering the need for hiring an additional source for advertising. Lewis would certainly be heading the advertising and marketing department and in any kind of case her substitute would be required for the present role that she is performing. The drawback of this option is that external hiring may produce bitterness from internal workers who might be eying the placement of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting as well as Production: Provided the affordable stress as well as high top quality job required from the advertising agency, it is suggested that Lewis needs to enable the manufacturing system to be a separate function from the advertising and marketing system. Since many advertising and marketing firms had these 2 features as separate devices, it makes even more sense to comply with the norm.

Integration of Marketing with Workflows: Considering that Lewis is already dealing with the advertising as well as procedures departments concurrently; it makes sense to integrate both features considering that she has actually been successfully looking after both ends. The reality that both divisions already have significant distinctions over allotment of sources recommends that this integration might have the ability to produce consistency particularly as Lewis would be heading both ends.However there are different drawbacks of this action specifically as it would certainly place too much concern over Lewis's shoulders. The reality that Lewis has to adjust her management style for the marketing department recommends that these 2 divisions would certainly be culturally varied. In addition to this, Lewis may not be able to apply one sort of leadership style to both divisions which could cause inadequacy in either among the two features.


An evaluation of the three choices indicates that integration of advertising and marketing as well as procedures would not be a practical relocation due to the large differences in between the two departments in spite of the truth that currently Lewis is taking care of both. While separation of the manufacturing feature may have been a desirable move for the advertising department, the truth that it would certainly imply putting a 3rd feature under Lewis's wing implies this should be stayed clear of.

Activity Plan.
Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

Production feature will certainly remain component of marketing under marketing feature.

Lewis will certainly separate herself from procedures.

An autonomous leadership design with staff member empowerment will certainly be utilized in marketing division.

Open door policy and also emphasis on cross departmental interaction will be focused on removing discord.

Backup plan.

If the assimilation does not exercise as prepared, a contingency strategy would follow which would certainly divide the manufacturing feature from the marketing function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the advertising and marketing department without an SVP. Because case the production feature will certainly be divided by putting it under an SVP manufacturing.