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 a workplace supplies seller for tiny and moderate sized organisations has actually just recently been associated with preparing for a merging with its competitor House Deport, which has affected efficiency levels in departmentswith the elderly manager associated with legal difficulties presented by the government Trade Commission. With the Marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the present head of procedures has been asked to take the role in the future. With difficulties in the type of a possible cultural adjustment as well as low employee spirits, the organization needs a total reengineering effort at the advertising and marketing department.

Problem Statement

The prospective cultural change at the marketing department of Stanford University Implementing Fasb Statements 116 And 117 is increasing unpredictability in the workplace resulting in different challenges for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting calculated decisions because Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Profession Payment's treatment in the process. Given the reality that the store has an international presence with branches in UK, U.S.A., Canada and Germany, political consider each of these countries may be able to affect performance or critical objectives. Federal Profession Commission's antitrust fit against the merger occupied valuable time of the organization's senior monitoring recommending that 'political' factors can have serious ramifications for a global business.

Economic Factors: Economic factors such as the introduction of small businesses in the worldwide situation recommend that Stanford University Implementing Fasb Statements 116 And 117 is prospering in an atmosphere where there is potential growth of organisations. Along with this, truth that store customers are primarily searching for workplace supplies for home offices recommends that the market has a climbing fad of entrepreneurs and also online services.

Social factors: Social patterns in the economic climate show that consumers are trying to find comfort in addition to attractive costs. Marketing research demonstrates how the customer for Stanford University Implementing Fasb Statements 116 And 117 lacks understanding regarding locating options which can supply a combination of comfort and also inexpensive.

Technical factors: Technology plays an essential duty in Stanford University Implementing Fasb Statements 116 And 117's business method especially as the organization is piloting Modern technology centers which would offer innovation sales and assistance in the kind of memory upgrades, outer installations. (Summary of PEST in appendix 2).

OB Issues and also Effects.

Numerous underlying Organizational Actions concerns can be seen in Stanford University Implementing Fasb Statements 116 And 117's case as highlighted in this area.

Concerns concerning cultural change: There is uneasiness regarding a social modification that would take place once Todd Krasnow leaves from his setting as the Executive Vice President of Advertising And Marketing with most of the personnel currently showing discontent over this prospective action. This expected adjustment has produced tension in the office which has been paired with the past stress and anxiety of preparing the company for a prospective merging with Home Deport.

Stressful Job Setting for Newcomers: There is scarcity of workers that can match the demanding setting of a fast-paced organization. Not just does this cause difficulty in finding the right people, it puts tension on brand-new hires as can not stand up to the speed and stress that the organization anticipates them to bear.

Dual Coverage Lines: Newcomers locate this organizational society cumbersome as well as hard to handle particularly as populated line connections are suggested to be weak as a whole and also objective setting and performance examination is still done by the solid line manager. This suggests that novices might lose clearness concerning their respective roles and also purposes especially as populated line reporting does not keep them in direct communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision 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 placement came as an impact to her spirits. Lewis may have been capable as well as appropriate for the work yet the reality that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.

Fear & Task Instability: Anxiety and also instability can be determined as 2 significant problems that Lewis would be taking care of especially as the merger has now be terminated and also 2 senior execs of the advertising department would be leaving. The whole duty of the department would certainly be dropping on Lewis's shoulders who would not just supervise of brining concerning a cultural change however would certainly additionally have to confirm herself in her brand-new function.

Inappropriate Monitoring Design of Leader: Lewis's administration design as well as its incompatibility with the advertising and marketing division's role can likewise be seen as an OB difficulty especially as she has been utilized to managing concerns in the operations department where workers are shown to concentrate on procedures and obtain them. The advertising division on the other hand can be viewed as a team of people that are utilized to being nurtured by Krasnow that focused more on result than processes.

Interdepartmental Disagreements: Interdepartmental arguments between 3 divisions, marketing, merchandizing and procedures respectively over the allotment of the advertising mix can be identified as an additional OB concern. Although the advertising department does not share the very same vision as the various other two divisions pertaining to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and also operations departments do not concur over the marketing mix appropriation amongst one another either.

Fragmentation in Advertising And Marketing Department: Disintegration between the marketing and advertising departments can be recognized as an additional OB issue which might require further attention. The fact that the marketing and advertising areas in the advertising and marketing division are detached is avoiding both divisions from obtaining from each various other's experience and experience. Combination of advertising and marketing with merchandising as well as procedures would end up being more difficult if the marketing division itself is degenerated which can be another potential OB concern.

Stanford University Implementing Fasb Statements 116 And 117 Analysis

Various theories have been made use of to discuss the situations to get additional quality regarding the circumstance available.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that juniors are easy and lazy, have little aspiration and also stand up to adjustment. The difficult variation of this concept emphasized browbeating, limited controls, threats as well as punishments. With time it creates low efficiency, refined sabotage and also rivalry (Deal, 2003). The scenario at Stanford University Implementing Fasb Statements 116 And 117 is not completely adhering to Concept X, it can be seen that new hires are locating this environment instead difficult which might at some point lead to a higher disposition of the administration in the direction of Theory X. As per McGregor's advocated sight, which he called Theory Y, the essential task of the monitoring is to arrange business problems so that people can achieve their very own objectives best by routing their initiatives in the direction of business incentives. If individuals discover no contentment in their work, the monitoring would have little choice yet to rely upon concept X as well as external control (Deal, 2003). Even while analyzing Lewis's monitoring design, concept X might have been suitable in the operations department somewhat yet the Advertising and marketing department would certainly call for dependence on Theory Y to get the imagination as well as originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's issue regarding bringing harmony between the advertising and marketing as well as advertising and marketing division is concerned, this would initially lead to contrast as discussed by Bruce Tuckman in his 'Teamwork Theory'. By integrating the marketing as well as advertising and marketing department's job, there might be the very same first detach which could lead to the second phase of 'storming' where the groups test one another.

Bridges' Change Version: As per William Bridge's concept (appendix 4), people are rather awkward with adjustment, which is evident by the circumstance at Stanford University Implementing Fasb Statements 116 And 117 The scenario can be seen as a normal training course of life if is examined based on Bridge's theory where he clarifies that individuals experience three phases of shift when they experience change. 'End, shedding and Letting go', The Neutral Area and also 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they get in stage one and so there may be feelings like despair, uncertainty, disappointment, rage, worry, rejection as well as disorientation.The situation at the advertising department of Stanford University Implementing Fasb Statements 116 And 117 is similar so Lewis can obtain comfy with the suggestion that it is not remarkable actions. In the 2nd stage, there might be a need to link the gap between the new and also old society so Lewis may have to face this experience once Krasnow leaves. There might be low spirits and low productivity at this phase which ought to not be taken as a setback. It is throughout this phase that Lewis will certainly have to offer guidance to the department to ensure that they can find a sense of direction. It can be seen just how Krasnow has actually currently made this change easier by making Lewis get involved in the division a year before his real separation. According to Bridges' Model, phase three will certainly cause visibility to discovering, High energy as well as dedication as individuals will certainly accept the adjustment (Bridges, 2004).

Maslow's Demand power structure: The OB concern related to insecurity at the office has actually been triggered first of all by the modification in administration and second of all by the truth that the merger will no more be started. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has talks about the value of 'protection requires as being a reduced level demand of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to really feel safe and unharmed' goes to the 2nd degree of requirements. Before a staff member can be made to develop mentally, he requires to have his 'Physical 'as well as 'Safety' needs met. This shows that unless the workers are made to feel safe regarding their existing work status in Stanford University Implementing Fasb Statements 116 And 117 they might not reach 'Self-Fulfillment'. (King, 2009).

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

Effects of Analysis.

The OB analysis has checked out numerous theories to recognize how to deal with the existing circumstance at hand. The adhering to 3 choices have actually been recommended to assist Lewis take care of the organizational difficulties in the advertising department. Each of these choices has been proposed for easing the change needed to bring the advertising division in line with the demands of the market as well as for making the cultural adjustment that would certainly adhere to when the current leader leaves.

Assimilation of advertising and marketing functions. Separating Adverting and also Production features. Integration of Advertising And Marketing with Operations.

Evaluation of Alternatives.

Integration of Advertising And Marketing & Advertising And Marketing Functions: The internal marketing firm of Stanford University Implementing Fasb Statements 116 And 117 is currently stamina for the company in terms of conserving up on overheads related to advertising and marketing and promo. Considering that no new employment has actually been done after Bridget Cole's departure with the coverage line being directly designated to Krasnow for the advertising and marketing function, this is a desirable possibility for incorporating the marketing and advertising features. Judith Shapiro who has earlier been spoken with by Lewis during the earlier merger days has competence in business-to-business marketing together with agency as well as retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to handle both advertising and marketing functions.

The advantage of this technique is that it will integrate the two functions while decreasing the need for employing an extra resource for advertising and marketing. In addition to this, Lewis would certainly be heading the advertising and marketing division and in any case her substitute would certainly be needed for the existing duty that she is executing. The disadvantage of this option is that outside hiring might bring about bitterness from interior personnel who may be looking at the position of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Manufacturing: Given the affordable stress and high top quality job required from the advertising agency, it is recommended that Lewis ought to permit the manufacturing unit to be a different function from the marketing system. Considering that most marketing companies had these 2 functions as separate devices, it makes even more feeling to adhere to the norm.

Combination of Advertising with Operations: Because Lewis is already dealing with the advertising and also procedures divisions concurrently; it makes sense to incorporate the two functions since she has actually been efficiently taking care of both ends. The truth that both divisions currently have significant distinctions over appropriation of sources suggests that this combination may have the ability to bring about harmony particularly as Lewis would be heading both ends.However there are various downsides of this step specifically as it would certainly place way too much problem over Lewis's shoulders. The fact that Lewis has to adapt her management design for the advertising and marketing department recommends that these two departments would certainly be culturally diverse. In addition to this, Lewis may not have the ability to apply one kind of leadership style to both departments which could cause inefficiency in either among the two functions.


An evaluation of the 3 choices suggests that integration of advertising as well as procedures would not be a possible move due to the vast distinctions between the two divisions despite the truth that presently Lewis is taking care of both. While separation of the production feature might have been a positive relocation for the advertising and marketing division, the reality that it would certainly mean putting a third feature under Lewis's wing suggests this ought to be prevented.

Activity Plan.

Lewis will certainly take control of the function of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Production function will remain component of advertising and marketing under advertising and marketing feature.

Lewis will certainly divide herself from procedures.

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

Open door plan and emphasis on cross department communication will certainly be targeted at getting rid of dissonance.

Backup plan.

If the integration does not work out as intended, a contingency strategy would adhere to which would certainly separate the manufacturing function from the advertising and marketing function to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the marketing division without an SVP. In that case the production function will certainly be separated by putting it under an SVP production.