Background and Facts
Taxing Situations Two Cases On Income Taxes And Financial Reporting an office materials retailer for small and also medium sized businesses has actually recently been involved in planning for a merging with its competitor Home Deport, which has affected performance degrees in departmentswith the elderly supervisor involved in legal complications presented by the government Trade Payment. With the Advertising Head putting forward the news of his separation from the firm 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 kind of a possible social adjustment and reduced employee morale, the organization needs a total reengineering initiative at the advertising and marketing division.Problem Statement
The prospective cultural modification at the advertising department of Taxing Situations Two Cases On Income Taxes And Financial Reporting is enhancing unpredictability in the working environment bring about numerous challenges for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis
PEST analysis
Political Factors: Political factors play a significant duty in affecting strategic choices given that Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Trade Compensation's intervention while doing so. Provided the truth that the store has an international presence with branches in UK, USA, Canada and Germany, political factors in each of these nations might be able to influence performance or tactical goals. Federal Profession Payment's antitrust fit against the merger used up valuable time of the company's elderly management recommending that 'political' factors can have significant implications for an international business.
Economic Factors: Financial factors such as the appearance of small companies in the worldwide situation suggest that Taxing Situations Two Cases On Income Taxes And Financial Reporting is growing in an atmosphere where there is potential development of businesses. Fact that store clients are mainly looking for workplace supplies for residence offices suggests that the market has a rising fad of entrepreneurs as well as home based services.
Social factors: Social fads in the economic climate reveal that customers are searching for convenience as well as attractive prices. Marketing research demonstrates how the consumer for Taxing Situations Two Cases On Income Taxes And Financial Reporting does not have awareness regarding locating services which can provide a combination of convenience and also affordable.
Technological factors: Innovation plays an essential role in Taxing Situations Two Cases On Income Taxes And Financial Reporting's organisation technique especially as the company is piloting Modern technology facilities which would provide technology sales and support in the kind of memory upgrades, peripheral setups. (Recap of PEST in appendix 2).
OB Issues and also Effects.
Several underlying Organizational Actions problems can be seen in Taxing Situations Two Cases On Income Taxes And Financial Reporting's case as highlighted in this area.
Uneasiness regarding social modification: There is uneasiness about a cultural change that would certainly occur as soon as Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with the majority of the employee already revealing unhappiness over this possible relocation. This predicted change has actually created anxiety in the work environment which has actually been coupled with the previous tension of preparing the company for a prospective merging with Residence Deport.
Demanding Job Setting for Newcomers: There is lack of personnel that can match the difficult setting of a fast-paced company. Not only does this result in difficulty in finding the appropriate people, it puts anxiety on brand-new hires as can not withstand the pace and stress that the company anticipates them to birth.
Double Reporting Lines: Novices find this organizational culture cumbersome as well as challenging to deal with specifically as dotted line connections are meant to be weaker generally as well as objective setting and also performance analysis is still done by the solid line manager. This means that novices might shed clearness regarding their corresponding functions and also goals particularly as dotted line coverage does not keep them in straight communication with the strong line supervisors.
Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles although it had actually been hypothesized that the latter would take Krasnow's placement came as a blow to her morale. Lewis might have been capable and appropriate for the job however the reality that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from services.
Anxiety & Work Insecurity: Fear as well as insecurity can be identified as 2 major worries that Lewis would certainly be taking care of particularly as the merging has actually now be terminated and also 2 elderly executives of the marketing division would be leaving. The entire responsibility of the department would be falling on Lewis's shoulders who would not just supervise of brining about a cultural change yet would additionally have to prove herself in her brand-new function.
Incompatible Management Design of Leader: Lewis's management style as well as its incompatibility with the advertising and marketing division's role can additionally be seen as an OB difficulty particularly as she has been utilized to dealing with problems in the procedures division where employees are taught to focus on processes and obtain them right. The advertising department on the other hand can be seen as a group of people that are used to being nurtured by Krasnow that focused much more on result than processes.
Interdepartmental Differences: Interdepartmental disagreements between three divisions, advertising and marketing, merchandizing and also procedures respectively over the allowance of the advertising and marketing mix can be recognized as another OB issue. The marketing division does not share the same vision as the other 2 divisions concerning the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and also procedures departments do not agree over the advertising mix allocation amongst one another either.
Disintegration in Marketing Department: Fragmentation between the marketing and advertising departments can be identified as another OB problem which can require further attention. The truth that the marketing and advertising areas in the advertising department are detached is protecting against both divisions from gaining from each various other's experience and knowledge. Integration of advertising and marketing with merchandising and also procedures would become harder if the advertising division itself is disintegrated which can be an additional prospective OB problem.
Taxing Situations Two Cases On Income Taxes And Financial Reporting Analysis
Numerous theories have actually been used to discuss the scenarios to get additional clarity regarding the scenario at hand.
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most managers think that subordinates are passive as well as careless, have little passion as well as resist modification. The circumstance at Taxing Situations Two Cases On Income Taxes And Financial Reporting is not entirely following Theory X, it can be seen that brand-new hires are discovering this atmosphere instead stressful which might eventually lead to a greater disposition of the management towards Theory X. Also while evaluating Lewis's administration design, theory X might have been appropriate in the procedures department to some level however the Marketing division would call for reliance on Theory Y in order to get the creative thinking and also originality from the teams.
Tuckman's Team effort Concept: Regarding Lewis's concern concerning bringing consistency between the marketing and advertising division is concerned, this would initially cause contrast as gone over by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's theory shown in appendix 3, throughout the first stage of group advancement, individuals might not bond, as they are active finding their place in the group. By integrating the advertising and marketing division's work, there may be the same initial disconnect which could cause the 2nd phase of 'storming' where the groups challenge each other. It is only throughout the third phase or 'norming' when they would certainly come together to share ideas prior to the group can bring about harmony in the 4th stage 'performing'.
Bridges' Transition Model: As per William Bridge's concept (appendix 4), individuals are quite unpleasant with adjustment, which is apparent by the situation at Taxing Situations Two Cases On Income Taxes And Financial Reporting The scenario can be viewed as a normal training course of life if is researched as per Bridge's concept where he explains that people go through three phases of transition when they experience modification. 'End, losing as well as Letting go', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When individuals are presented with adjustment, they enter stage one therefore there may be emotions like sadness, unpredictability, disappointment, temper, worry, denial and disorientation.The scenario at the advertising and marketing division of Taxing Situations Two Cases On Income Taxes And Financial Reporting is similar so Lewis can obtain comfortable with the concept that it is not remarkable habits. In the 2nd phase, there might be a need to connect the gap between the new and old culture so Lewis may need to face this ordeal once Krasnow leaves. There might be reduced spirits as well as low performance at this stage which should not be taken as a problem. It is throughout this phase that Lewis will need to provide advice to the division to ensure that they can locate an orientation. It can be seen just how Krasnow has actually currently made this shift simpler by making Lewis obtain associated with the department a year before his real separation. According to Bridges' Design, phase 3 will certainly produce openness to knowing, High power as well as commitment as people will accept the adjustment (Bridges, 2004).
Maslow's Demand hierarchy: The OB issue related to instability at the work environment has actually been caused firstly by the change in administration and second of all by the reality that the merging will certainly no longer be initiated. Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has goes over the significance of 'security needs as being a reduced degree need of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to really feel safe as well as untouched' is at the 2nd degree of needs. Before a staff member can be made to develop psychologically, he requires to have his 'Physiological 'and also 'Security' requires met. This shows that unless the employees are made to really feel safe concerning their present work condition in Taxing Situations Two Cases On Income Taxes And Financial Reporting they may not reach 'Self-Fulfillment'. (King, 2009).
SWOT Analysis for Taxing Situations Two Cases On Income Taxes And Financial Reporting Case Study
Ramification of Analysis.
The OB analysis has taken a look at various theories to recognize how to deal with the existing circumstance at hand. The following 3 choices have actually been proposed to aid Lewis handle the business obstacles in the marketing division. Each of these choices has actually been proposed for easing the shift required to bring the marketing division according to the needs of the market and for making the social change that would adhere to when the existing leader leaves.
Combination of marketing and advertising features. Separating Adverting and Production features. Combination of Advertising with Operations.
Evaluation of Alternatives.
Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merging days has experience in business-to-business advertising and marketing along with agency and retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to deal with both marketing as well as advertising features.
The advantage of this strategy is that it will incorporate the two functions while minimizing the demand for hiring an additional source for marketing. Along with this, Lewis would be heading the advertising department as well as all the same her replacement would certainly be required for the current function that she is executing. The downside of this option is that exterior hiring may produce bitterness from internal workers who might be considering the position of EVP after Lewis takes over Krasnow's setting.
Separating Adverting and also Production: Provided the affordable stress as well as excellent quality work required from the ad agency, it is suggested that Lewis should allow the production unit to be a separate function from the marketing system. Given that the majority of advertising agencies had these two functions as separate systems, it makes more sense to comply with the standard. Both functions might be able to concentrate on their core turns on a lot more effectively. The drawback of this strategy would certainly be that extra prices would have to be birthed for establishing up different manufacturing functions. In addition to this, a production head might need to be hired which can increase overheads for the company.
Combination of Advertising And Marketing with Workflows: Because Lewis is currently taking care of the marketing and also operations divisions at the same time; it makes good sense to integrate the two features considering that she has actually been effectively looking after both ends. The fact that both departments currently have major distinctions over allocation of resources suggests that this assimilation may be able to cause harmony particularly as Lewis would be heading both ends.However there are numerous negative aspects of this relocation especially as it would place too much concern over Lewis's shoulders. The truth that Lewis has to adjust her monitoring style for the advertising department recommends that these two departments would certainly be culturally diverse. Along with this, Lewis may not be able to apply one type of management design to both departments which might cause inefficiency in either one of both features.
Suggestion.
An examination of the three alternatives shows that assimilation of advertising and marketing and operations would not be a viable step due to the large distinctions in between the two departments despite the fact that presently Lewis is taking care of both. While splitting up of the manufacturing function might have been a positive move for the advertising division, the fact that it would certainly indicate putting a 3rd feature under Lewis's wing means this must be prevented.
Activity Plan.
Lewis will take over the function of EVP Advertising after Krasnow leaves.
Marketing and advertising features would certainly be combined.
Judith Shapiro will certainly be worked with to take Lewis's area as SVP of marketing and advertising.
Production feature will stay part of marketing under marketing function.
Lewis will divide herself from procedures.
An autonomous management style with employee empowerment will be utilized in marketing department.
Open up door plan and also emphasis on cross department interaction will certainly be targeted at eliminating disharmony.
Contingency strategy.
If the integration does not work out as planned, a contingency strategy would certainly adhere to which would certainly divide the manufacturing function from the marketing function to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the advertising and marketing division without an SVP. Because case the manufacturing function will definitely be separated by putting it under an SVP manufacturing.