Structuring Corporate Financial Policy Diagnosis Of Problems And Evaluation Of Strategies Case Study Solution


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Background and Facts

Structuring Corporate Financial Policy Diagnosis Of Problems And Evaluation Of Strategies a workplace supplies store for tiny and medium sized businesses has just recently been involved in planning for a merging with its competitor Home Deport, which has influenced efficiency levels in departmentswith the elderly manager involved in lawful difficulties put forth by the government Profession Compensation. With the Advertising and marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the function in the near future. With obstacles in the form of a possible social modification as well as low worker spirits, the company requires a full reengineering effort at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising and marketing department of Structuring Corporate Financial Policy Diagnosis Of Problems And Evaluation Of Strategies is enhancing unpredictability in the working environment bring about numerous difficulties for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in influencing critical choices because Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Profession Compensation's intervention at the same time. Provided the reality that the store has a global visibility with branches in UK, UNITED STATES, Canada and Germany, political consider each of these nations might be able to influence performance or critical objectives. Federal Profession Compensation's antitrust suit against the merger occupied valuable time of the organization's elderly administration suggesting that 'political' factors can have major effects for a worldwide service.

Economic Factors: Financial factors such as the development of local business in the global situation recommend that Structuring Corporate Financial Policy Diagnosis Of Problems And Evaluation Of Strategies is prospering in a setting where there is potential development of organisations. Truth that store customers are primarily looking for office products for home workplaces suggests that the market has an increasing trend of entrepreneurs and residence based companies.

Social factors: Social fads in the economy show that customers are seeking convenience as well as attractive costs. Market research shows how the client for Structuring Corporate Financial Policy Diagnosis Of Problems And Evaluation Of Strategies lacks recognition about discovering remedies which can supply a mix of ease and also low costs.

Technological factors: Modern technology plays an essential duty in Structuring Corporate Financial Policy Diagnosis Of Problems And Evaluation Of Strategies's organisation strategy especially as the organization is piloting Innovation centers which would provide modern technology sales and also assistance in the type of memory upgrades, peripheral installations. (Recap of INSECT in appendix 2).

OB Issues and also Manifestations.

Several underlying Business Actions issues can be seen in Structuring Corporate Financial Policy Diagnosis Of Problems And Evaluation Of Strategies's case as highlighted in this section.

Concerns about cultural adjustment: There is uneasiness concerning a cultural modification that would occur as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with the majority of the team member currently showing discontent over this prospective move. This predicted modification has created tension in the workplace which has been paired with the past tension of preparing the firm for a potential merger with Residence Deport.
Pest Analysis
Difficult Work Setting for Newcomers: There is scarcity of employees that can match the demanding environment of a fast-paced organization. Not only does this bring about trouble in discovering the best people, it puts stress on new hires as can not stand up to the pace and stress that the company anticipates them to birth.

Double Reporting Lines: Novices locate this organizational culture cumbersome and also difficult to cope with specifically as dotted line relationships are indicated to be weak in general and also objective setup as well as performance analysis is still done by the strong line manager. This suggests that novices might lose quality about their respective roles as well as objectives specifically as dotted line coverage does not keep them in direct interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles despite the fact that it had been speculated that the last would certainly take Krasnow's setting came as an impact to her morale. Lewis may have been capable and also suitable for the work yet the fact that Kransnow's separation would make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Work Instability: Concern and instability can be recognized as two major issues that Lewis would be taking care of particularly as the merging has currently be terminated and 2 senior executives of the advertising and marketing department would certainly be leaving. The whole duty of the department would certainly be falling on Lewis's shoulders that would not simply be in charge of brining concerning a social modification yet would certainly also need to show herself in her new role.

Incompatible Monitoring Design of Leader: Lewis's administration design and its incompatibility with the advertising department's function can also be seen as an OB challenge particularly as she has been utilized to handling problems in the procedures division where personnel are instructed to concentrate on procedures and also obtain them. The marketing division on the various other hand can be seen as a group of individuals that are made use of to being nurtured by Krasnow who focused a lot more on output than procedures.

Interdepartmental Differences: Interdepartmental differences in between 3 departments, advertising, merchandizing and also operations specifically over the appropriation of the advertising mix can be determined as another OB problem. The advertising and marketing department does not share the exact same vision as the other two divisions regarding the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing as well as procedures divisions do not agree over the advertising and marketing mix allotment among one an additional either.

Disintegration in Marketing Department: Fragmentation between the advertising and marketing divisions can be identified as one more OB concern which might need more interest. The reality that the advertising and marketing sections in the marketing department are disconnected is avoiding both divisions from getting from each other's experience as well as proficiency. Combination of advertising and marketing with retailing and also operations would certainly become harder if the marketing department itself is broken down which can be one more prospective OB problem.

Structuring Corporate Financial Policy Diagnosis Of Problems And Evaluation Of Strategies Analysis

Numerous theories have been made use of to clarify the circumstances to obtain further quality about the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that juniors are easy and also lazy, have little passion and also withstand modification. The situation at Structuring Corporate Financial Policy Diagnosis Of Problems And Evaluation Of Strategies is not completely complying with Theory X, it can be seen that new hires are discovering this environment instead difficult which may ultimately lead to a better inclination of the management towards Concept X. Even while evaluating Lewis's administration design, theory X might have been suitable in the procedures division to some level but the Marketing department would call for dependence on Theory Y in order to obtain the creative thinking and also originality from the teams.

Tuckman's Synergy Theory: Regarding Lewis's concern regarding bringing harmony in between the marketing and advertising department is concerned, this would initially lead to conflict as gone over by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, during the first stage of team development, individuals may not bond, as they are busy discovering their area in the group. By integrating the marketing and advertising division's job, there might coincide first detach which could bring about the second stage of 'storming' where the teams challenge one another. It is just throughout the third stage or 'norming' when they would come with each other to share suggestions prior to the team can bring about harmony in the 4th phase 'doing'.

When individuals are provided with modification, they go into stage one and so there might be feelings like sadness, uncertainty, stress, temper, worry, denial as well as disorientation.The situation at the advertising and marketing department of Structuring Corporate Financial Policy Diagnosis Of Problems And Evaluation Of Strategies is comparable so Lewis can get comfy with the concept that it is not extraordinary behavior. It is during this stage that Lewis will certainly have to provide support to the department so that they can discover a sense of direction. It can be seen how Krasnow has currently made this change much easier by making Lewis obtain entailed in the division a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has talks about the importance of 'safety and security needs as being a reduced degree demand of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel safe and out of threat' is at the second degree of demands. Before a staff member can be made to create emotionally, he requires to have his 'Physical 'as well as 'Safety and security' needs satisfied.

SWOT Analysis for Structuring Corporate Financial Policy Diagnosis Of Problems And Evaluation Of Strategies Case Study

Ramification of Analysis.

The OB analysis has considered different concepts to comprehend exactly how to cope with the existing situation at hand. The following 3 alternatives have been suggested to assist Lewis handle the business challenges in the advertising and marketing division. Each of these alternatives has actually been recommended for alleviating the shift required to bring the advertising department in accordance with the needs of the market as well as for making the social change that would certainly comply with once the present leader leaves.

Combination of marketing and advertising functions. Separating Adverting and Manufacturing features. Assimilation of Marketing with Procedures.

Analysis of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merging days has expertise in business-to-business advertising along with company and also retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to manage both marketing as well as marketing features.

The advantage of this approach is that it will certainly incorporate both features while lowering the demand for employing an additional source for marketing. Lewis would certainly be heading the marketing division and also in any kind of case her replacement would be required for the existing role that she is executing. The drawback of this choice is that outside hiring might produce animosity from interior personnel that might be considering the setting of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Manufacturing: Offered the competitive stress and also high quality work required from the advertising agency, it is recommended that Lewis must enable the production device to be a separate feature from the advertising and marketing device. Considering that a lot of advertising and marketing agencies had these 2 features as different units, it makes even more feeling to comply with the standard.

Integration of Marketing with Workflows: Considering that Lewis is already taking care of the advertising as well as procedures departments all at once; it makes sense to incorporate the 2 functions considering that she has been successfully taking treatment of both ends. The reality that Lewis has to adjust her monitoring design for the marketing department suggests that these 2 departments would be culturally diverse.


An examination of the 3 options indicates that assimilation of advertising and marketing and procedures would not be a practical relocation as a result of the vast differences between the two divisions despite the fact that currently Lewis is handling both. While separation of the production function might have been a desirable step for the marketing department, the reality that it would certainly mean putting a 3rd function under Lewis's wing suggests this should be prevented as well. The combination of the advertising and marketing department is the best choice in terms of getting the optimal arise from the department. An activity plan for this alternative is reviewed below.

Activity Strategy.
Lewis will take over the role of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

Manufacturing function will certainly remain component of advertising and marketing under advertising and marketing feature.

Lewis will divide herself from operations.

An autonomous management style with employee empowerment will certainly be utilized in advertising division.

Open door policy and also emphasis on cross department interaction will certainly be targeted at getting rid of discord.

Contingency strategy.

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