Statements Of Cash Flows Three International Examples Case Study Solution


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Statements Of Cash Flows Three International Examples Case Study Analysis

Background and Facts

Statements Of Cash Flows Three International Examples a workplace materials store for little as well as moderate sized companies has lately been involved in planning for a merging with its competitor Home Deport, which has actually impacted effectiveness levels in departmentswith the elderly manager associated with legal problems put forth by the federal Trade Compensation. With the Advertising and marketing Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has been asked to take the duty in the near future. With challenges in the kind of a possible social modification as well as reduced employee morale, the organization wants a total reengineering effort at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The potential cultural change at the advertising and marketing division of Statements Of Cash Flows Three International Examples is increasing unpredictability in the workplace leading to different obstacles for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting calculated decisions considering that Stapes Inc. had to abandon its strategies of combining with Workplace Deport after the Federal Profession Compensation's treatment at the same time. Provided the fact that the shop has a worldwide existence with branches in UK, USA, Canada as well as Germany, political consider each of these countries may have the ability to impact performance or tactical objectives. Federal Trade Commission's antitrust fit against the merger occupied beneficial time of the company's senior administration suggesting that 'political' factors can have major implications for an international service.

Economic Factors: Financial factors such as the appearance of local business in the international circumstance suggest that Statements Of Cash Flows Three International Examples is prospering in an atmosphere where there is potential development of services. Truth that shop clients are primarily looking for office materials for residence workplaces suggests that the market has a climbing pattern of business owners and also home based businesses.

Social factors: Social trends in the economy show that customers are searching for comfort as well as appealing costs. Marketing research shows how the consumer for Statements Of Cash Flows Three International Examples does not have awareness regarding locating services which can offer a mix of comfort as well as low costs.

Technical factors: Modern technology plays a crucial role in Statements Of Cash Flows Three International Examples's company method particularly as the organization is piloting Technology centers which would certainly supply technology sales as well as assistance in the form of memory upgrades, outer setups. (Recap of PARASITE in appendix 2).

OB Issues and Effects.

A number of underlying Organizational Behavior concerns can be seen in Statements Of Cash Flows Three International Examples's case as highlighted in this area.

Worries regarding social adjustment: There is uneasiness about a social change that would certainly happen as soon as Todd Krasnow leaves from his placement as the Executive Vice President of Advertising with a lot of the employee currently revealing unhappiness over this potential step. This predicted change has developed stress in the workplace which has actually been paired with the previous stress of preparing the company for a prospective merger with House Deport.
Pest Analysis
Stressful Work Environment for Newcomers: There is scarcity of personnel that can match the difficult environment of a hectic organization. Not just does this bring about trouble in locating the best individuals, it places stress on new hires as can not hold up against the rate and also pressure that the company expects them to bear.

Twin Coverage Lines: Newbies locate this business society troublesome and also tough to cope with particularly as populated line partnerships are indicated to be weaker in general and also objective setup as well as efficiency assessment is still done by the solid line supervisor. This implies that beginners could shed quality regarding their corresponding functions as well as objectives specifically as populated line coverage does not keep them in direct interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles even though it had been guessed that the last would certainly take Krasnow's placement came as a blow to her spirits. Lewis might have been capable as well as proper for the work yet the truth that Kransnow's departure would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Work Insecurity: Anxiety and also instability can be identified as 2 significant concerns that Lewis would be handling specifically as the merger has currently be cancelled as well as 2 senior execs of the advertising and marketing division would certainly be leaving. The entire responsibility of the department would certainly be dropping on Lewis's shoulders that would certainly not just be in charge of brining about a cultural adjustment however would also have to verify herself in her brand-new role.

Incompatible Administration Design of Leader: Lewis's management style and also its conflict with the advertising and marketing division's function can likewise be viewed as an OB obstacle particularly as she has actually been made use of to managing concerns in the procedures division where personnel are taught to concentrate on procedures as well as obtain them right. The advertising department on the other hand can be viewed as a team of people who are utilized to being supported by Krasnow who concentrated more on output than procedures.

Interdepartmental Arguments: Interdepartmental differences between three departments, marketing, merchandizing and also operations respectively over the appropriation of the advertising and marketing mix can be identified as another OB worry. Although the marketing department does not share the same vision as the various other 2 departments concerning the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and operations departments do not concur over the marketing mix allotment among one another either.

Disintegration in Marketing Department: Disintegration between the advertising and marketing divisions can be recognized as another OB concern which can require additional attention. The reality that the advertising and marketing sections in the marketing department are disconnected is avoiding both departments from getting from each other's experience as well as expertise. Integration of marketing with merchandising and operations would come to be more difficult if the advertising division itself is disintegrated which can be one more prospective OB concern.

Statements Of Cash Flows Three International Examples Analysis

Different concepts have actually been used to discuss the conditions to obtain additional clarity concerning the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that subordinates are easy and careless, have little aspiration and also withstand modification. The tough variation of this concept highlighted threat, tight controls, threats and punishments. In time it produces low efficiency, refined sabotage and also rivalry (Bargain, 2003). The circumstance at Statements Of Cash Flows Three International Examples is not completely complying with Concept X, it can be seen that brand-new hires are finding this environment rather difficult which may at some point lead to a greater inclination of the administration towards Concept X. Based on McGregor's supported sight, which he called Theory Y, the necessary task of the administration is to arrange business problems so that individuals can attain their own objectives best by directing their efforts in the direction of business benefits. If people find no complete satisfaction in their work, the monitoring would have little choice yet to rely on theory X and outside control (Offer, 2003). Even while analyzing Lewis's administration style, theory X might have appropriated in the operations department somewhat yet the Advertising department would require dependence on Concept Y in order to get the creative thinking and originality from the teams.

Tuckman's Synergy Concept: As much as Lewis's problem about bringing consistency in between the marketing as well as advertising and marketing division is concerned, this would at first lead to conflict as gone over by Bruce Tuckman in his 'Teamwork Concept'. By integrating the advertising as well as marketing department's job, there may be the exact same first separate which can lead to the 2nd stage of 'storming' where the teams test one an additional.

Bridges' Transition Version: Based On William Bridge's concept (appendix 4), people are quite unpleasant with adjustment, which is obvious by the situation at Statements Of Cash Flows Three International Examples The circumstance can be viewed as a typical course of life if is examined based on Bridge's theory where he describes that individuals go through three stages of transition when they experience adjustment. 'Closing, shedding and Releasing', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people exist with change, they go into phase one and so there might be feelings like unhappiness, uncertainty, disappointment, temper, worry, rejection and disorientation.The situation at the marketing department of Statements Of Cash Flows Three International Examples is similar so Lewis can obtain comfortable with the suggestion that it is not phenomenal habits. In the second phase, there may be a need to bridge the gap between the brand-new and also old society so Lewis may have to encounter this challenge as soon as Krasnow leaves. There may be low spirits and reduced performance at this stage which should not be taken as a problem. It is during this stage that Lewis will need to give support to the department so that they can locate an orientation. It can be seen exactly how Krasnow has actually currently made this transition much easier by making Lewis get involved in the department a year before his actual departure. Based on Bridges' Version, stage 3 will certainly bring about openness to learning, High power and also commitment as individuals will accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Need hierarchy: The OB concern pertaining to instability at the work environment has been activated firstly by the change in monitoring and second of all by the reality that the merging will no longer be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has goes over the relevance of 'safety and security requires as being a lower level demand of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the requirement to really feel secure and unharmed' is at the 2nd level of demands. Prior to an employee can be made to establish emotionally, he requires to have his 'Physical 'as well as 'Security' needs satisfied. This indicates that unless the employees are made to feel safe and secure concerning their current employment standing in Statements Of Cash Flows Three International Examples they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Statements Of Cash Flows Three International Examples Case Study

Implication of Analysis.

The OB analysis has considered different theories to recognize exactly how to manage the existing circumstance handy. The complying with 3 alternatives have been recommended to assist Lewis handle the business challenges in the advertising division. Each of these options has been suggested for reducing the shift needed to bring the advertising department in line with the requirements of the marketplace and for making the cultural change that would certainly comply with as soon as the present leader leaves.

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

Assessment of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis during the earlier merger days has expertise in business-to-business marketing along with company and retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to take care of both marketing and also advertising and marketing features.

The benefit of this technique is that it will integrate the two features while reducing the demand for employing an additional source for marketing. Lewis would be heading the advertising and marketing division and in any case her substitute would be needed for the current duty that she is performing. The downside of this option is that external hiring may cause bitterness from interior employees that may be considering the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and also Manufacturing: Given the affordable pressures and high quality job required from the marketing company, it is advised that Lewis should allow the manufacturing system to be a different function from the marketing device. Since a lot of advertising and marketing agencies had these 2 features as separate devices, it makes even more feeling to follow the norm.

Combination of Marketing with Workflows: Given that Lewis is already dealing with the advertising as well as operations departments all at once; it makes good sense to integrate both functions considering that she has actually been efficiently dealing with both ends. The truth that the two divisions already have significant differences over allowance of resources suggests that this assimilation may be able to produce harmony particularly as Lewis would be heading both ends.However there are different negative aspects of this action specifically as it would certainly put way too much concern over Lewis's shoulders. The fact that Lewis has to adapt her administration design for the marketing division recommends that these 2 divisions would be culturally diverse. Lewis might not be able to use one kind of leadership design to both divisions which could result in inadequacy in either one of the two features.


An assessment of the 3 options suggests that integration of marketing and procedures would certainly not be a viable move due to the large differences in between both divisions despite the fact that presently Lewis is taking care of both. While splitting up of the manufacturing function may have been a positive step for the marketing department, the fact that it would indicate placing a 3rd feature under Lewis's wing implies this need to be avoided. The combination of the advertising and marketing division is the most effective choice in terms of getting the ideal arise from the department. An action plan for this option is discussed below.

Activity Plan.
Lewis will certainly take control of the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising features would be combined.

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

Manufacturing function will remain part of marketing under advertising feature.

Lewis will separate herself from procedures.

A democratic leadership design with staff member empowerment will certainly be used in advertising division.

Open up door policy and also focus on cross departmental interaction will certainly be targeted at getting rid of dissonance.

Contingency strategy.

If the integration does not exercise as planned, a backup strategy would certainly adhere to which would certainly separate the production feature from the marketing feature to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the marketing division without an SVP. In that case the manufacturing feature will definitely be separated by positioning it under an SVP production.