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Tele Tichon Ltd Corporate Debt Restructuring Case Study Analysis

Background and Facts

Tele Tichon Ltd Corporate Debt Restructuring a workplace products merchant for little and average sized companies has recently been involved in preparing for a merging with its competitor Residence Deport, which has actually impacted performance degrees in departmentswith the senior manager involved in lawful issues put forth by the government Trade Compensation. With the Advertising and marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the near future. With challenges in the type of a possible social adjustment as well as reduced staff member spirits, the company is in need of a complete reengineering effort at the advertising division.

Problem Statement
Porter's 5 Forces Analysis
The potential cultural modification at the advertising and marketing division of Tele Tichon Ltd Corporate Debt Restructuring is increasing uncertainty in the working environment leading to different challenges for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing critical decisions because Stapes Inc. needed to abandon its plans of combining with Workplace Deport after the Federal Trade Compensation's treatment in the process. Offered the truth that the shop has an international presence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these countries might have the ability to impact performance or critical goals. Federal Profession Compensation's antitrust suit against the merging used up beneficial time of the company's senior management suggesting that 'political' factors can have major implications for an international organisation.

Economic Factors: Economic factors such as the emergence of small businesses in the international scenario suggest that Tele Tichon Ltd Corporate Debt Restructuring is prospering in a setting where there is potential growth of companies. Fact that shop customers are mainly looking for office materials for residence workplaces recommends that the market has an increasing fad of business owners and also residence based organisations.

Social factors: Social trends in the economy reveal that customers are looking for ease in addition to eye-catching costs. Market research demonstrates how the client for Tele Tichon Ltd Corporate Debt Restructuring does not have understanding concerning finding services which can supply a mix of comfort as well as low costs.

Technical factors: Innovation plays a crucial duty in Tele Tichon Ltd Corporate Debt Restructuring's service technique especially as the company is piloting Innovation facilities which would certainly supply innovation sales and also assistance in the form of memory upgrades, outer installations. (Summary of PEST in appendix 2).

OB Issues as well as Effects.

A number of underlying Organizational Habits problems can be seen in Tele Tichon Ltd Corporate Debt Restructuring's case as highlighted in this section.

Worries about social adjustment: There is worry about a cultural change that would certainly happen as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Marketing with the majority of the staff members already showing discontent over this prospective step. This expected modification has developed stress and anxiety in the workplace which has actually been combined with the past stress of preparing the firm for a possible merging with Residence Deport.
Pest Analysis
Stressful Task Environment for Newcomers: There is scarcity of employees that can match the difficult setting of a hectic organization. Not just does this cause trouble in finding the best people, it places tension on brand-new hires as can not stand up to the rate as well as pressure that the company expects them to bear.

Double Reporting Lines: Newbies discover this organizational culture troublesome as well as hard to cope with particularly as populated line connections are indicated to be weaker in general and also unbiased setup and also efficiency analysis is still done by the strong line supervisor. This implies that newbies could lose quality concerning their corresponding roles and also objectives particularly as dotted line reporting does not keep them in direct interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had been guessed that the last would take Krasnow's setting came as a strike to her spirits. Lewis might have been capable and proper for the task yet the reality that Kransnow's separation would make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Anxiety & Job Insecurity: Concern and also instability can be identified as two major concerns that Lewis would certainly be taking care of particularly as the merging has currently be terminated and also two senior executives of the advertising department would certainly be leaving. The whole responsibility of the department would be falling on Lewis's shoulders who would not just supervise of brining regarding a social change yet would additionally need to prove herself in her new duty.

Inappropriate Management Design of Leader: Lewis's management design and also its conflict with the marketing division's duty can additionally be seen as an OB challenge particularly as she has actually been made use of to handling problems in the procedures department where employees are educated to focus on procedures and get them right. The marketing department on the various other hand can be viewed as a team of people who are made use of to being nurtured by Krasnow that concentrated more on output than processes.

Interdepartmental Disagreements: Interdepartmental arguments in between 3 divisions, advertising, merchandizing as well as procedures specifically over the appropriation of the advertising and marketing mix can be determined as another OB concern. The advertising department does not share the exact same vision as the other 2 departments concerning the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing as well as operations departments do not agree over the advertising and marketing mix allotment among one another either.

Disintegration in Advertising Department: Fragmentation between the advertising and marketing departments can be identified as another OB problem which can need additional interest. The truth that the advertising and marketing areas in the marketing division are detached is avoiding both divisions from obtaining from each various other's experience and also experience. Assimilation of marketing with retailing and also operations would become more difficult if the advertising department itself is broken down which can be one more potential OB problem.

Tele Tichon Ltd Corporate Debt Restructuring Analysis

Different theories have been used to explain the scenarios to get further quality regarding the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors think that subordinates are passive and lazy, have little aspiration and withstand adjustment. The scenario at Tele Tichon Ltd Corporate Debt Restructuring is not totally complying with Theory X, it can be seen that brand-new hires are locating this environment rather stressful which may ultimately lead to a higher disposition of the administration in the direction of Concept X. Even while evaluating Lewis's administration style, concept X might have been suitable in the procedures division to some level but the Advertising division would need reliance on Theory Y in order to get the creativity as well as originality from the teams.

Tuckman's Team effort Concept: As far as Lewis's issue regarding bringing consistency between the advertising and marketing and advertising and marketing division is concerned, this would at first lead to conflict as talked about by Bruce Tuckman in his 'Synergy Theory'. By combining the marketing as well as advertising department's work, there may be the exact same first detach which can lead to the 2nd phase of 'storming' where the teams challenge one another.

When individuals are provided with change, they go into stage one and so there might be emotions like despair, uncertainty, stress, temper, concern, denial and disorientation.The scenario at the marketing division of Tele Tichon Ltd Corporate Debt Restructuring is comparable so Lewis can obtain comfortable with the concept that it is not remarkable behavior. It is during this stage that Lewis will have to offer support to the department so that they can find a sense of instructions. It can be seen how Krasnow has actually currently made this transition simpler by making Lewis get included in the division a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has discusses the relevance of 'safety needs as being a reduced degree need of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel safe and out of risk' is at the second level of demands. Before a staff member can be made to create mentally, he needs to have his 'Physical 'as well as 'Security' requires fulfilled.

SWOT Analysis for Tele Tichon Ltd Corporate Debt Restructuring Case Study

Implication of Analysis.

The OB analysis has actually taken a look at various concepts to comprehend just how to handle the existing situation handy. The complying with 3 alternatives have actually been recommended to help Lewis take care of the business obstacles in the advertising division. Each of these choices has actually been suggested for relieving the shift required to bring the advertising division in accordance with the needs of the marketplace and also for making the social change that would certainly adhere to when the present leader leaves.

Integration of advertising and marketing features. Dividing Adverting and also Production functions. Integration of Advertising with Operations.

Examination of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merger days has experience in business-to-business advertising and marketing along with firm and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to handle both marketing as well as advertising and marketing features.

The benefit of this method is that it will incorporate both features while decreasing the demand for hiring an extra resource for advertising and marketing. Along with this, Lewis would certainly be heading the marketing division as well as in any case her substitute would be needed for the present duty that she is executing. The drawback of this choice is that external hiring may bring about resentment from inner workers who may be looking at the placement of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and also Production: Given the competitive pressures and also excellent quality job required from the ad agency, it is suggested that Lewis should enable the production device to be a different feature from the advertising device. Given that the majority of ad agency had these two functions as separate units, it makes more feeling to follow the norm. Both functions may be able to concentrate on their core turns on a lot more successfully. The drawback of this approach would be that extra prices would certainly have to be borne for establishing up different production functions. Along with this, a manufacturing head might need to be worked with which might raise expenses for the organization.

Integration of Advertising And Marketing with Workflows: Since Lewis is already taking treatment of the marketing and also operations departments concurrently; it makes feeling to integrate the 2 functions given that she has been efficiently taking treatment of both ends. The fact that Lewis has to adapt her monitoring style for the advertising and marketing division recommends that these two divisions would be culturally diverse.


An examination of the 3 alternatives shows that combination of advertising and marketing and also procedures would certainly not be a viable relocation as a result of the vast distinctions in between the two departments although that presently Lewis is dealing with both. While separation of the manufacturing feature may have been a beneficial relocation for the marketing division, the fact that it would certainly indicate putting a 3rd function under Lewis's wing implies this must be stayed clear of as well. The integration of the advertising division is the best alternative in terms of getting the optimal arise from the division. An action plan for this option is gone over below.

Action Plan.
Lewis will take control of the role of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Manufacturing feature will certainly stay component of advertising under marketing function.

Lewis will certainly separate herself from procedures.

An autonomous leadership design with staff member empowerment will be used in advertising and marketing department.

Open door plan and focus on cross department communication will be targeted at getting rid of discord.

Contingency strategy.

If the combination does not work out as intended, a contingency strategy would certainly follow which would certainly divide the manufacturing function from the advertising and marketing function to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising department without an SVP. Because case the production function will absolutely be separated by placing it under an SVP manufacturing.