Stanford University Implementing Fasb Statements 116 And 117 Case Study Solution


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Stanford University Implementing Fasb Statements 116 And 117 Case Study Analysis

Background and Facts

Stanford University Implementing Fasb Statements 116 And 117 a workplace materials seller for tiny and also moderate sized businesses has actually recently been associated with preparing for a merger with its competitor Home Deport, which has actually impacted efficiency degrees in departmentswith the senior supervisor associated with legal problems put forth by the government Trade Commission. With the Marketing Head advancing the news of his separation from the company in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the near future. With difficulties in the type of a prospective cultural modification and low staff member spirits, the organization wants a total reengineering effort at the marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The potential social adjustment at the advertising division of Stanford University Implementing Fasb Statements 116 And 117 is increasing uncertainty in the workplace leading to numerous difficulties for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing calculated decisions considering that Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Profession Compensation's treatment in the process. Given the fact that the shop has a worldwide presence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these nations may have the ability to influence performance or critical goals. Federal Profession Compensation's antitrust match versus the merger used up beneficial time of the company's elderly monitoring recommending that 'political' factors can have serious implications for an international company.

Economic Factors: Economic factors such as the emergence of local business in the global situation suggest that Stanford University Implementing Fasb Statements 116 And 117 is growing in an atmosphere where there is potential growth of companies. Truth that shop consumers are primarily looking for office products for house offices suggests that the market has an increasing trend of entrepreneurs and also house based businesses.

Social factors: Social trends in the economy show that clients are trying to find comfort along with appealing rates. Marketing research shows how the client for Stanford University Implementing Fasb Statements 116 And 117 lacks understanding about locating solutions which can provide a mix of benefit as well as low costs.

Technological factors: Innovation plays an important duty in Stanford University Implementing Fasb Statements 116 And 117's business approach specifically as the company is piloting Technology facilities which would provide innovation sales and assistance in the kind of memory upgrades, outer installations. (Recap of INSECT in appendix 2).

OB Issues and also Manifestations.

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

Concerns about social modification: There is apprehension about a social change that would certainly occur once Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising And Marketing with a lot of the team member already showing discontent over this possible move. This expected adjustment has actually created tension in the work environment which has actually been paired with the past tension of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is scarcity of workers that can match the demanding setting of a busy company. Not just does this bring about difficulty in locating the appropriate people, it places tension on new hires as can not hold up against the rate as well as stress that the organization expects them to birth.

Double Coverage Lines: Newcomers find this business society troublesome and tough to cope with specifically as populated line relationships are implied to be weaker in general and objective setup and also efficiency analysis is still done by the strong line manager. This implies that newbies can lose quality regarding their particular roles and also goals specifically as dotted line reporting does not keep them in straight interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had been speculated that the last would take Krasnow's position came as an impact to her spirits. Lewis may have been capable and suitable for the task yet the fact that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Anxiety & Job Insecurity: Anxiety as well as instability can be identified as two significant problems that Lewis would certainly be handling especially as the merger has now be terminated and 2 senior execs of the advertising and marketing division would be leaving. The entire obligation of the division would certainly be dropping on Lewis's shoulders who would not simply supervise of brining regarding a cultural adjustment however would certainly likewise need to confirm herself in her new function.

Inappropriate Monitoring Style of Leader: Lewis's monitoring design and also its conflict with the advertising division's duty can also be seen as an OB difficulty particularly as she has actually been used to dealing with issues in the procedures division where employees are shown to concentrate on processes as well as get them right. The advertising department on the other hand can be viewed as a team of individuals that are used to being supported by Krasnow who concentrated much more on output than processes.

Interdepartmental Disagreements: Interdepartmental arguments in between 3 divisions, advertising, merchandizing and also procedures specifically over the allocation of the advertising and marketing mix can be determined as one more OB issue. The advertising and marketing division does not share the same vision as the various other 2 divisions concerning the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing as well as procedures divisions do not concur over the marketing mix allocation amongst one an additional either.

Fragmentation in Advertising Department: Fragmentation in between the marketing and advertising divisions can be identified as another OB problem which could need further interest. The truth that the marketing and advertising sections in the advertising division are detached is avoiding both departments from acquiring from each various other's experience and also proficiency. Combination of advertising with retailing and operations would become harder if the marketing department itself is broken down which can be one more possible OB issue.

Stanford University Implementing Fasb Statements 116 And 117 Analysis

Different theories have been made use of to describe the circumstances to get additional clarity concerning the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors think that juniors are passive and also careless, have little passion and stand up to change. The difficult variation of this concept highlighted browbeating, limited controls, dangers and penalties. With time it generates low productivity, refined sabotage and competition (Deal, 2003). The situation at Stanford University Implementing Fasb Statements 116 And 117 is not entirely following Theory X, it can be seen that new hires are discovering this environment rather stressful which may ultimately lead to a better inclination of the monitoring towards Theory X. As per McGregor's promoted view, which he called Concept Y, the crucial job of the monitoring is to organize organizational conditions so that people can attain their very own goals best by directing their efforts towards organizational rewards. If individuals find no satisfaction in their work, the management would have little selection however to depend on concept X and exterior control (Offer, 2003). Even while assessing Lewis's monitoring design, concept X might have appropriated in the operations division to some extent however the Marketing department would certainly call for reliance on Theory Y so as to get the creativity and originality from the teams.

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

When people are provided with modification, they get in phase one and also so there may be emotions like despair, unpredictability, frustration, rage, anxiety, rejection and disorientation.The circumstance at the advertising and marketing department of Stanford University Implementing Fasb Statements 116 And 117 is comparable so Lewis can obtain comfy with the concept that it is not remarkable habits. It is throughout this stage that Lewis will have to provide assistance to the department so that they can discover a feeling of direction. It can be seen how Krasnow has actually already made this transition simpler by making Lewis obtain entailed in the division a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has goes over the relevance of 'security needs as being a lower level requirement of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel safe and secure and out of danger' is at the 2nd degree of requirements. Before an employee can be made to create mentally, he requires to have his 'Physiological 'and also 'Safety' requires fulfilled.

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

Ramification of Analysis.

The OB analysis has considered various concepts to comprehend how to handle the present scenario at hand. The following 3 alternatives have been suggested to help Lewis manage the business difficulties in the marketing division. Each of these choices has been recommended for relieving the change needed to bring the advertising department in accordance with the requirements of the marketplace and for making the cultural modification that would certainly adhere to as soon as the current leader leaves.

Combination of advertising and marketing features. Dividing Adverting as well as Production features. Combination of Marketing with Procedures.

Analysis of Alternatives.

Assimilation of Advertising And Marketing & Marketing Functions: The internal advertising company of Stanford University Implementing Fasb Statements 116 And 117 is already strength for the company in terms of saving up on expenses related to advertising and marketing as well as promotion. Because no brand-new employment has actually been done after Bridget Cole's departure with the reporting line being directly appointed to Krasnow for the advertising and marketing function, this is a favorable chance for incorporating the advertising and marketing functions. Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merging days has competence in business-to-business marketing in addition to agency and also retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to deal with both marketing and advertising functions.

The advantage of this approach is that it will incorporate the two functions while decreasing the requirement for hiring an extra source for advertising and marketing. In addition to this, Lewis would certainly be heading the advertising department and also in any case her replacement would certainly be needed for the current function that she is doing. The disadvantage of this choice is that outside hiring might bring about bitterness from interior employees who might be considering the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Production: Given the affordable pressures as well as high quality work needed from the ad agency, it is suggested that Lewis needs to enable the manufacturing unit to be a different feature from the advertising system. Considering that a lot of advertising agencies had these 2 features as different systems, it makes even more sense to follow the norm. Along with this, both features might be able to concentrate on their core turns on a lot more effectively. The disadvantage of this technique would be that added costs would have to be borne for setting up different manufacturing functions. In addition to this, a manufacturing head may need to be hired which can increase overheads for the company.

Combination of Advertising with Procedures: Considering that Lewis is currently caring for the marketing and also procedures divisions at the same time; it makes sense to integrate both functions given that she has been effectively dealing with both ends. The fact that both divisions currently have significant distinctions over allocation of sources suggests that this assimilation may be able to bring about harmony particularly as Lewis would certainly be heading both ends.However there are different downsides of this action especially as it would put too much concern over Lewis's shoulders. The fact that Lewis has to adapt her management style for the advertising division recommends that these two divisions would be culturally varied. In addition to this, Lewis may not be able to use one type of management design to both divisions which might lead to inefficiency in either one of both functions.


An assessment of the three choices indicates that integration of marketing and also operations would not be a possible relocation due to the substantial distinctions between the 2 divisions regardless of the reality that currently Lewis is handling both. While splitting up of the production feature may have been a beneficial step for the advertising and marketing department, the truth that it would certainly imply putting a 3rd function under Lewis's wing means this must be avoided.

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

Advertising and Marketing features would be combined.

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

Manufacturing feature will certainly continue to be part of marketing under marketing feature.

Lewis will separate herself from procedures.

A democratic leadership style with employee empowerment will certainly be made use of in advertising and marketing department.

Open door policy as well as focus on cross departmental communication will certainly be targeted at eliminating discord.

Contingency strategy.

If the integration does not exercise as planned, a backup plan would follow which would certainly divide the production feature from the advertising and marketing function to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the marketing division without an SVP. Because case the manufacturing function will definitely be divided by placing it under an SVP manufacturing.