Stanford University Implementing Fasb Statements 116 And 117 Case Study Help


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Stanford University Implementing Fasb Statements 116 And 117 Case Study Solution

Background and Facts

Stanford University Implementing Fasb Statements 116 And 117 an office materials merchant for tiny and medium sized services has actually lately been involved in planning for a merger with its rival Home Deport, which has actually impacted performance levels in departmentswith the elderly manager involved in legal difficulties presented by the federal Trade Compensation. With the Advertising Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the function in the near future. With challenges in the type of a potential social change and low employee spirits, the company needs a total reengineering initiative at the advertising division.

Problem Declaration
Porter's 5 Forces Analysis
The prospective social adjustment at the advertising and marketing department of Stanford University Implementing Fasb Statements 116 And 117 is enhancing unpredictability in the working environment bring about numerous 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 major role in impacting tactical decisions given that Stapes Inc. needed to desert its strategies of combining with Office Deport after the Federal Profession Payment's treatment while doing so. Provided the truth that the shop has an international visibility with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries may be able to influence performance or strategic goals. Federal Trade Commission's antitrust match versus the merging used up important time of the organization's elderly administration suggesting that 'political' factors can have serious implications for an international business.

Economic Factors: Financial factors such as the development of small companies in the global scenario suggest that Stanford University Implementing Fasb Statements 116 And 117 is prospering in an atmosphere where there is possible development of companies. Truth that shop consumers are mostly looking for office products for house offices suggests that the market has a climbing pattern of business owners and also home based services.

Social factors: Social patterns in the economic climate show that clients are seeking ease along with appealing costs. Marketing research demonstrates how the customer for Stanford University Implementing Fasb Statements 116 And 117 does not have awareness concerning discovering options which can use a mix of ease and also inexpensive.

Technological factors: Technology plays an important role in Stanford University Implementing Fasb Statements 116 And 117's business approach specifically as the company is piloting Technology centers which would certainly provide innovation sales and assistance in the type of memory upgrades, outer installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Manifestations.

Numerous underlying Organizational Behavior issues can be seen in Stanford University Implementing Fasb Statements 116 And 117's case as highlighted in this section.

Concerns concerning cultural change: There is worry concerning a cultural modification that would certainly happen once Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising with the majority of the team member already showing discontent over this possible action. This expected change has actually produced anxiety in the workplace which has been paired with the previous stress of preparing the firm for a prospective merger with Residence Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is shortage of workers that can match the stressful atmosphere of a busy company. Not only does this cause trouble in discovering the best people, it places stress and anxiety on brand-new hires as can not hold up against the speed and stress that the organization anticipates them to bear.

Dual Reporting Lines: Newbies locate this organizational society troublesome and also tough to cope with especially as populated line relationships are implied to be weak generally and objective setup and efficiency examination is still done by the solid line manager. This means that newcomers can lose quality regarding their respective duties and also purposes specifically as dotted line coverage does not maintain them in straight interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had actually been hypothesized that the latter would take Krasnow's placement came as a blow to her morale. Lewis may have been qualified and also ideal for the job but the fact that Kransnow's departure would make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Concern & Work Insecurity: Worry and insecurity can be recognized as 2 significant problems that Lewis would certainly be taking care of especially as the merger has now be terminated and also two senior execs of the advertising department would certainly be leaving. The entire responsibility of the division would certainly be dropping on Lewis's shoulders that would not simply supervise of brining regarding a social change but would certainly likewise have to prove herself in her brand-new role.

Inappropriate Management Style of Leader: Lewis's management design as well as its incompatibility with the advertising department's role can likewise be viewed as an OB obstacle especially as she has actually been used to handling concerns in the procedures department where employees are shown to concentrate on procedures and also obtain them right. The advertising and marketing division on the various other hand can be seen as a team of individuals that are utilized to being supported by Krasnow that focused more on result than procedures.

Interdepartmental Disputes: Interdepartmental differences in between three departments, advertising and marketing, merchandizing and procedures specifically over the allotment of the marketing mix can be recognized as another OB issue. The marketing division does not share the same vision as the other 2 divisions relating to the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and also procedures departments do not concur over the advertising and marketing mix appropriation among one another either.

Disintegration in Marketing Department: Fragmentation in between the marketing and advertising departments can be determined as one more OB concern which can need further attention. The reality that the marketing and advertising areas in the advertising and marketing department are detached is stopping both departments from acquiring from each other's experience and expertise. Combination of marketing with retailing and operations would certainly end up being harder if the marketing department itself is broken down which can be an additional possible OB concern.

Stanford University Implementing Fasb Statements 116 And 117 Analysis

Various theories have been utilized to describe the situations to get more clarity about the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers believe that juniors are easy and also careless, have little aspiration and also stand up to change. The circumstance at Stanford University Implementing Fasb Statements 116 And 117 is not entirely adhering to Theory X, it can be seen that brand-new hires are finding this setting instead demanding which might ultimately lead to a better disposition of the management in the direction of Concept X. Even while analyzing Lewis's management style, theory X may have been suitable in the procedures department to some degree yet the Advertising and marketing department would require reliance on Theory Y in order to get the creative thinking and originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's worry regarding bringing consistency between the marketing and advertising division is worried, this would at first cause clash as reviewed by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). According to Tuckman's theory displayed in appendix 3, during the initial phase of team development, people might not bond, as they are busy finding their area in the group. By incorporating the marketing and advertising division's work, there may be the same preliminary disconnect which could result in the second stage of 'storming' where the groups challenge one another. However, it is just throughout the 3rd stage or 'norming' when they would collaborate to share ideas prior to the team can produce harmony in the fourth phase 'executing'.

When individuals are offered with modification, they go into stage one and so there might be feelings like unhappiness, uncertainty, frustration, anger, worry, denial and disorientation.The situation at the advertising and marketing department of Stanford University Implementing Fasb Statements 116 And 117 is comparable so Lewis can obtain comfortable with the idea that it is not amazing actions. It is throughout this stage that Lewis will certainly have to offer advice to the division so that they can find a sense of direction. It can be seen just how Krasnow has currently made this change less complicated by making Lewis get involved in the division a year before his real departure.
Vrio Analysis
Maslow's Need power structure: The OB problem related to insecurity at the workplace has been triggered to start with by the adjustment in management and also second of all by the truth that the merger will no longer be launched. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has discusses the relevance of 'safety requires as being a lower degree need of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to feel safe and also unharmed' goes to the second degree of needs. Prior to a staff member can be made to establish mentally, he needs to have his 'Physiological 'as well as 'Security' needs satisfied. This suggests that unless the employees are made to really feel safe and secure concerning their current work standing in Stanford University Implementing Fasb Statements 116 And 117 they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Stanford University Implementing Fasb Statements 116 And 117 Case Study

Ramification of Analysis.

The OB analysis has considered various theories to comprehend how to cope with the current circumstance at hand. The adhering to three choices have been suggested to help Lewis take care of the business obstacles in the advertising department. Each of these alternatives has actually been proposed for reducing the shift needed to bring the advertising department according to the requirements of the market and also for making the cultural change that would adhere to once the present leader leaves.

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

Assessment of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merger days has knowledge in business-to-business advertising and marketing along with firm as well as retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both marketing and also advertising functions.

The benefit of this method is that it will incorporate the two features while lowering the need for employing an additional source for marketing. In addition to this, Lewis would be heading the advertising department and also in any case her replacement would be required for the current role that she is carrying out. The drawback of this alternative is that exterior hiring might produce bitterness from interior employees who may be considering the placement of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Manufacturing: Provided the affordable pressures and also excellent quality job needed from the ad agency, it is advised that Lewis needs to permit the production device to be a separate function from the advertising unit. Given that the majority of advertising agencies had these two features as different devices, it makes even more feeling to comply with the norm. In addition to this, both features may have the ability to concentrate on their core triggers a lot more effectively. However, the downside of this strategy would be that added expenses would certainly need to be birthed for establishing different production features. Along with this, a production head may have to be worked with which can raise overheads for the company.

Integration of Advertising with Workflows: Considering that Lewis is currently taking care of the marketing and operations departments simultaneously; it makes feeling to incorporate the two features considering that she has been efficiently taking care of both ends. The fact that Lewis has to adjust her management design for the advertising and marketing department suggests that these two departments would certainly be culturally varied.


An evaluation of the 3 options indicates that combination of advertising and marketing as well as operations would certainly not be a practical move due to the substantial distinctions in between the 2 divisions regardless of the fact that presently Lewis is handling both. While separation of the production function might have been a desirable relocation for the advertising division, the fact that it would certainly imply placing a 3rd feature under Lewis's wing indicates this need to be prevented.

Activity Strategy.
Lewis will take control of the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

Production function will continue to be component of marketing under advertising function.

Lewis will certainly divide herself from operations.

A democratic leadership design with staff member empowerment will be utilized in advertising and marketing division.

Open up door plan and focus on cross department communication will be targeted at eliminating disharmony.

Backup plan.

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