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Standard Chartered Bank Valuation And Capital Structure Case Study Help

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Standard Chartered Bank Valuation And Capital Structure Case Study Solution

Background and Facts

Standard Chartered Bank Valuation And Capital Structure an office products retailer for little as well as average sized services has actually just recently been associated with planning for a merging with its competitor Home Deport, which has impacted efficiency levels in departmentswith the elderly supervisor associated with lawful problems presented by the federal Profession Commission. With the Advertising and marketing Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the future. With obstacles in the form of a possible social adjustment as well as low worker spirits, the organization wants a complete reengineering effort at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural change at the advertising department of Standard Chartered Bank Valuation And Capital Structure is increasing unpredictability in the working environment leading to different challenges for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting tactical decisions considering that Stapes Inc. needed to abandon its strategies of combining with Workplace Deport after the Federal Profession Commission's treatment while doing so. Provided the fact that the store has a worldwide visibility with branches in UK, USA, Canada and Germany, political consider each of these countries might be able to impact efficiency or critical objectives. Federal Profession Compensation's antitrust suit versus the merger occupied valuable time of the organization's elderly management suggesting that 'political' factors can have serious implications for a global business.

Economic Factors: Financial factors such as the development of small companies in the global situation recommend that Standard Chartered Bank Valuation And Capital Structure is growing in an atmosphere where there is prospective growth of services. Truth that store consumers are mostly looking for workplace supplies for home offices recommends that the market has an increasing pattern of entrepreneurs and home based services.

Social factors: Social patterns in the economy reveal that consumers are searching for benefit in addition to eye-catching rates. Market research demonstrates how the consumer for Standard Chartered Bank Valuation And Capital Structure lacks recognition regarding discovering services which can offer a mix of benefit and also inexpensive.

Technological factors: Modern technology plays a vital duty in Standard Chartered Bank Valuation And Capital Structure's company technique specifically as the company is piloting Technology facilities which would use technology sales and also support in the kind of memory upgrades, outer installments. (Recap of BUG in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Business Actions problems can be seen in Standard Chartered Bank Valuation And Capital Structure's case as highlighted in this section.

Apprehensions about social modification: There is worry about a cultural modification that would occur when Todd Krasnow leaves from his position as the Executive Vice President of Advertising with the majority of the employee currently revealing discontent over this possible relocation. This predicted change has actually produced stress and anxiety in the workplace which has been coupled with the past stress and anxiety of preparing the company for a possible merging with Residence Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is lack of employees that can match the demanding environment of a busy company. Not just does this lead to difficulty in finding the best people, it places stress and anxiety on new hires as can not hold up against the pace and pressure that the company anticipates them to birth.

Dual Coverage Lines: Newbies locate this business society difficult and also challenging to handle specifically as populated line connections are meant to be weak generally as well as unbiased setting and also efficiency assessment is still done by the solid line manager. This indicates that beginners could shed quality concerning their respective functions as well as objectives specifically 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 successor rather than Bridget Coles although it had been hypothesized that the last would take Krasnow's position came as a strike to her spirits. Lewis may have been qualified and also ideal for the work however the truth that Kransnow's separation would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Concern & Job Instability: Anxiety and instability can be recognized as two major problems that Lewis would certainly be taking care of particularly as the merger has actually now be cancelled as well as 2 elderly execs of the marketing division would be leaving. The entire obligation of the division would certainly be dropping on Lewis's shoulders that would not just be in charge of brining about a social modification yet would additionally need to show herself in her new function.

Incompatible Monitoring Design of Leader: Lewis's monitoring style and also its incompatibility with the marketing division's function can additionally be seen as an OB difficulty particularly as she has been made use of to managing issues in the operations division where employees are shown to concentrate on procedures as well as obtain them. The advertising department on the other hand can be seen as a group of people who are used to being nurtured by Krasnow who concentrated much more on result than procedures.

Interdepartmental Disputes: Interdepartmental disputes in between three divisions, advertising, merchandizing and also operations specifically over the allotment of the advertising and marketing mix can be recognized as another OB worry. Although the advertising and marketing department does not share the exact same vision as the other 2 departments pertaining to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and procedures departments do not concur over the advertising mix allocation amongst one another either.

Fragmentation in Advertising And Marketing Division: Disintegration in between the advertising and marketing departments can be determined as another OB problem which might require additional interest. The reality that the advertising and marketing areas in the advertising division are separated is avoiding both departments from gaining from each other's experience as well as expertise. Assimilation of advertising and marketing with merchandising as well as procedures would end up being harder if the marketing department itself is degenerated which can be one more possible OB issue.

Standard Chartered Bank Valuation And Capital Structure Analysis

Various concepts have been utilized to clarify the conditions to get more clearness about the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors think that juniors are passive as well as careless, have little ambition as well as stand up to adjustment. The circumstance at Standard Chartered Bank Valuation And Capital Structure is not completely complying with Theory X, it can be seen that brand-new hires are finding this setting instead difficult which may ultimately lead to a better disposition of the administration towards Concept X. Also while examining Lewis's monitoring design, theory X might have been appropriate in the operations department to some degree but the Marketing division would require dependence on Concept Y in order to get the creativity as well as creativity from the groups.

Tuckman's Team effort Concept: Regarding Lewis's issue about bringing consistency between the advertising and marketing department is concerned, this would at first bring about clash as gone over by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's concept received appendix 3, throughout the preliminary stage of group development, people may not bond, as they are hectic discovering their place in the team. By combining the advertising and marketing department's job, there may coincide first detach which can lead to the second phase of 'storming' where the groups test each other. It is only throughout the third phase or 'norming' when they would come with each other to share ideas prior to the team can bring around harmony in the fourth phase 'doing'.

When individuals are presented with change, they get in stage one as well as so there might be emotions like despair, uncertainty, aggravation, anger, fear, denial and disorientation.The situation at the marketing department of Standard Chartered Bank Valuation And Capital Structure is comparable so Lewis can get comfortable with the concept that it is not extraordinary behavior. It is throughout this phase that Lewis will have to give guidance to the division so that they can discover a feeling of direction. It can be seen how Krasnow has already made this change much easier by making Lewis obtain included in the department a year prior to his real separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has goes over the significance of 'security needs as being a reduced level need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel secure as well as out of danger' is at the 2nd degree of requirements. Before an employee can be made to create emotionally, he requires to have his 'Physiological 'and 'Safety and security' requires satisfied.

SWOT Analysis for Standard Chartered Bank Valuation And Capital Structure Case Study



Implication of Analysis.

The OB analysis has checked out various theories to comprehend just how to cope with the existing scenario handy. The complying with 3 options have actually been proposed to help Lewis deal with the business difficulties in the advertising and marketing department. Each of these alternatives has actually been suggested for reducing the shift required to bring the advertising division according to the needs of the market and also for making the cultural change that would certainly follow as soon as the existing leader leaves.

Combination of marketing and advertising features. Dividing Adverting and also Manufacturing functions. Assimilation of Marketing with Workflow.

Examination of Alternatives.

Combination of Marketing & Advertising And Marketing Functions: The in-house advertising and marketing company of Standard Chartered Bank Valuation And Capital Structure is currently stamina for the company in terms of conserving up on expenses related to advertising as well as promotion. Since no brand-new recruitment has actually been done after Bridget Cole's separation with the coverage line being directly appointed to Krasnow for the advertising function, this is a beneficial possibility for incorporating the marketing and advertising functions. Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merging days has proficiency in business-to-business advertising and marketing in addition to agency and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to handle both marketing and advertising functions.

The benefit of this strategy is that it will incorporate the two functions while minimizing the need for working with an extra source for advertising and marketing. Along with this, Lewis would certainly be heading the marketing department as well as all the same her substitute would certainly be required for the current duty that she is carrying out. The disadvantage of this choice is that outside hiring might bring about resentment from internal employees that may be looking at the placement of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and also Manufacturing: Offered the affordable stress and also high quality work called for from the ad agency, it is suggested that Lewis ought to enable the production device to be a separate function from the marketing system. Considering that the majority of advertising agencies had these two functions as separate units, it makes even more sense to follow the norm. Both features might be able to concentrate on their core activates more efficiently. The downside of this method would certainly be that added expenses would have to be borne for establishing up different manufacturing features. In addition to this, a production head may need to be employed which can enhance overheads for the organization.

Assimilation of Marketing with Operations: Considering that Lewis is currently taking treatment of the advertising and operations departments all at once; it makes sense to integrate the two features considering that she has been successfully taking care of both ends. The reality that Lewis has to adjust her monitoring design for the marketing department recommends that these 2 divisions would certainly be culturally varied.

Recommendation.



An assessment of the 3 alternatives indicates that combination of marketing as well as operations would not be a feasible step due to the large differences in between both departments despite the fact that presently Lewis is dealing with both. While splitting up of the manufacturing feature might have been a positive relocation for the marketing division, the truth that it would certainly mean putting a 3rd function under Lewis's wing suggests this need to be prevented. The assimilation of the advertising division is the very best choice in regards to obtaining the ideal results from the department. An activity prepare for this choice is discussed below.

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

Marketing and advertising functions would certainly be merged.

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

Manufacturing function will stay component of marketing under advertising and marketing function.

Lewis will separate herself from procedures.

A democratic leadership style with staff member empowerment will be made use of in advertising and marketing division.

Open up door plan and also focus on cross department interaction will certainly be aimed at eliminating discord.

Contingency plan.

If the integration does not exercise as planned, a backup strategy would certainly comply with which would separate the manufacturing function from the advertising feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing department without an SVP. Because case the production function will definitely be divided by placing it under an SVP manufacturing.