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Sun Life Financial Entering China Case Study Analysis

Background and Facts

Sun Life Financial Entering China a workplace materials store for little and medium sized businesses has actually lately been involved in preparing for a merging with its rival Home Deport, which has actually impacted performance levels in departmentswith the elderly supervisor involved in legal problems presented by the federal Profession Payment. With the Advertising and marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the existing head of procedures has been asked to take the function in the near future. With difficulties in the kind of a prospective social change and low employee morale, the company requires a complete reengineering effort at the advertising and marketing department.

Issue Statement
Porter's 5 Forces Analysis
The potential cultural change at the advertising and marketing department of Sun Life Financial Entering China is enhancing uncertainty in the workplace bring about different obstacles for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting critical decisions because Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Profession Payment's intervention at the same time. Provided the truth that the shop has an international existence with branches in UK, U.S.A., Canada and also Germany, political consider each of these nations may have the ability to influence efficiency or tactical objectives. Federal Profession Compensation's antitrust suit versus the merger used up useful time of the company's senior monitoring recommending that 'political' factors can have severe effects for an international company.

Economic Factors: Economic factors such as the development of small businesses in the worldwide scenario suggest that Sun Life Financial Entering China is thriving in an atmosphere where there is potential growth of businesses. In addition to this, truth that store customers are primarily trying to find workplace supplies for office suggests that the marketplace has a rising fad of entrepreneurs as well as home organisations.

Social factors: Social patterns in the economic situation reveal that customers are searching for comfort as well as eye-catching rates. Market research demonstrates how the consumer for Sun Life Financial Entering China lacks recognition about discovering services which can offer a combination of benefit and also affordable.

Technological factors: Modern technology plays an essential role in Sun Life Financial Entering China's organisation technique specifically as the organization is piloting Modern technology facilities which would supply modern technology sales and support in the kind of memory upgrades, outer installations. (Summary of PEST in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Business Behavior problems can be seen in Sun Life Financial Entering China's case as highlighted in this section.

Apprehensions about social adjustment: There is uneasiness regarding a social modification that would certainly take place once Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with most of the personnel currently showing unhappiness over this prospective relocation. This predicted change has developed stress in the workplace which has actually been combined with the past anxiety of preparing the firm for a possible merging with Residence Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is scarcity of personnel that can match the stressful setting of a hectic company. Not only does this result in trouble in discovering the ideal individuals, it puts stress and anxiety on brand-new hires as can not stand up to the rate as well as pressure that the organization expects them to bear.

Double Coverage Lines: Novices locate this organizational society troublesome as well as hard to deal with especially as populated line partnerships are implied to be weak as a whole and objective setup and efficiency evaluation is still done by the solid line manager. This implies that beginners could lose quality regarding their corresponding functions and also goals specifically as dotted line coverage does not maintain them in direct communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had been guessed that the latter would certainly take Krasnow's position came as a strike to her morale. Lewis may have been capable and proper for the work yet the fact that Kransnow's separation would make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Anxiety & Job Insecurity: Anxiety as well as insecurity can be identified as 2 significant worries that Lewis would be taking care of specifically as the merging has actually currently be terminated and also two senior execs of the advertising division would be leaving. The entire obligation of the department would certainly be falling on Lewis's shoulders who would certainly not simply supervise of brining about a social adjustment yet would certainly likewise need to show herself in her new role.

Inappropriate Monitoring Design of Leader: Lewis's management style and its incompatibility with the marketing division's duty can additionally be viewed as an OB obstacle specifically as she has actually been utilized to taking care of issues in the procedures division where personnel are instructed to concentrate on processes and obtain them right. The advertising division on the various other hand can be viewed as a group of individuals that are made use of to being supported by Krasnow who focused more on output than procedures.

Interdepartmental Disagreements: Interdepartmental differences in between 3 divisions, advertising and marketing, merchandizing and operations specifically over the allowance of the marketing mix can be recognized as one more OB worry. The marketing department does not share the very same vision as the various other two departments relating to the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and also procedures divisions do not concur over the advertising mix allocation amongst one an additional either.

Fragmentation in Advertising Department: Fragmentation between the marketing and advertising divisions can be identified as an additional OB issue which might need additional interest. The truth that the advertising and marketing areas in the marketing department are disconnected is protecting against both departments from getting from each other's experience and experience. Assimilation of advertising with merchandising as well as operations would certainly become more difficult if the advertising and marketing department itself is disintegrated which can be one more possible OB problem.

Sun Life Financial Entering China Analysis

Various theories have actually been made use of to clarify the conditions to get additional clearness about the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers think that juniors are passive and careless, have little passion as well as withstand adjustment. The tough variation of this theory stressed threat, tight controls, threats and also penalties. With time it generates reduced performance, subtle sabotage and also rivalry (Offer, 2003). The scenario at Sun Life Financial Entering China is not completely complying with Theory X, it can be seen that brand-new hires are finding this environment rather difficult which may at some point lead to a greater disposition of the management towards Concept X. As per McGregor's advocated sight, which he called Concept Y, the crucial task of the monitoring is to arrange business problems to make sure that individuals can accomplish their very own goals best by directing their efforts in the direction of organizational benefits. If individuals find no complete satisfaction in their job, the monitoring would have little selection however to rely on theory X and also outside control (Bargain, 2003). Even while examining Lewis's administration style, concept X might have been suitable in the operations department to some extent yet the Advertising and marketing department would need dependence on Concept Y so as to get the creativity as well as creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's problem regarding bringing harmony in between the marketing and advertising division is concerned, this would initially lead to conflict as reviewed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's concept displayed in appendix 3, during the first phase of team growth, individuals might not bond, as they are hectic discovering their area in the team. By incorporating the marketing and advertising division's job, there may coincide preliminary separate which can cause the second phase of 'storming' where the teams challenge one another. It is only during the 3rd stage or 'norming' when they would certainly come together to share ideas prior to the team can bring about harmony in the 4th stage 'doing'.

When people are provided with adjustment, they get in phase one as well as so there may be emotions like sadness, uncertainty, frustration, anger, worry, rejection as well as disorientation.The circumstance at the marketing division of Sun Life Financial Entering China is similar so Lewis can get comfortable with the idea that it is not amazing behavior. It is throughout this stage that Lewis will certainly have to provide support to the department so that they can locate a sense of direction. It can be seen how Krasnow has actually currently made this change easier by making Lewis obtain included in the division a year prior to his real departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has talks about the significance of 'protection requires as being a lower degree need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to really feel safe and also out of danger' is at the 2nd level of requirements. Before an employee can be made to develop emotionally, he needs to have his 'Physiological 'and also 'Safety' needs fulfilled.

SWOT Analysis for Sun Life Financial Entering China Case Study



Implication of Analysis.

The OB analysis has actually looked at different theories to comprehend just how to cope with the present scenario handy. The complying with three options have been recommended to help Lewis handle the business obstacles in the advertising division. Each of these options has actually been suggested for alleviating the transition needed to bring the advertising and marketing department in accordance with the needs of the marketplace and also for making the cultural modification that would certainly follow once the current leader leaves.

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

Evaluation of Alternatives.

Integration of Marketing & Marketing Functions: The in-house advertising firm of Sun Life Financial Entering China is currently toughness for the organization in regards to saving up on overheads associated with advertising and marketing and promo. Since no brand-new employment has actually been done after Bridget Cole's departure with the coverage line being directly assigned to Krasnow for the advertising and marketing function, this is a desirable possibility for incorporating the advertising and marketing functions. Judith Shapiro that has earlier been interviewed by Lewis during the earlier merging days has knowledge in business-to-business marketing along with company as well as retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both advertising and marketing functions.

The advantage of this approach is that it will integrate the two functions while reducing the demand for working with an added source for advertising and marketing. Lewis would be heading the advertising division and also in any case her replacement would be required for the current duty that she is carrying out. The negative aspect of this alternative is that exterior hiring may cause resentment from internal employees that may be considering the placement of EVP after Lewis takes over Krasnow's position.

Separating Adverting as well as Production: Given the competitive pressures and also excellent quality work needed from the ad agency, it is advised that Lewis must enable the production system to be a different feature from the advertising and marketing device. Given that a lot of advertising agencies had these 2 functions as separate systems, it makes more sense to adhere to the norm. In addition to this, both features might have the ability to concentrate on their core activates extra successfully. The disadvantage of this technique would be that extra costs would certainly have to be birthed for establishing up separate manufacturing functions. A production head might have to be employed which might increase expenses for the company.

Combination of Advertising And Marketing with Operations: Since Lewis is currently dealing with the advertising as well as operations divisions simultaneously; it makes sense to incorporate the two features considering that she has actually been successfully caring for both ends. The reality that the two divisions already have major differences over allowance of sources suggests that this assimilation may have the ability to bring about harmony specifically as Lewis would be heading both ends.However there are numerous drawbacks of this action particularly as it would put too much worry over Lewis's shoulders. The fact that Lewis has to adapt her monitoring style for the advertising and marketing division suggests that these two departments would certainly be culturally diverse. Lewis might not be able to use one kind of leadership style to both departments which can result in inadequacy in either one of the two functions.

Suggestion.



An analysis of the 3 choices shows that integration of marketing and operations would certainly not be a possible relocation due to the vast differences in between the two departments regardless of the reality that currently Lewis is handling both. While splitting up of the production function might have been a favorable move for the advertising division, the truth that it would certainly indicate placing a 3rd feature under Lewis's wing implies this should be stayed clear of.

Action Strategy.
Recommendation
Lewis will certainly take over the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Manufacturing feature will certainly continue to be component of advertising under advertising and marketing feature.

Lewis will divide herself from procedures.

An autonomous management style with staff member empowerment will be made use of in marketing division.

Open up door policy and also focus on cross departmental communication will be focused on eliminating discord.

Contingency plan.

If the assimilation does not exercise as intended, a contingency plan would comply with which would divide the production function from the marketing function to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will be heading the advertising department without an SVP. Because case the manufacturing function will definitely be divided by putting it under an SVP production.