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The Galaxy Dividend Income Growth Funds Option Investment Strategies Case Study Solution

CASE SOLUTION

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Background and Facts

The Galaxy Dividend Income Growth Funds Option Investment Strategies a workplace materials merchant for little and average sized companies has recently been associated with planning for a merger with its rival Home Deport, which has actually affected performance levels in departmentswith the senior manager involved in legal complications presented by the federal Profession Commission. With the Marketing Head advancing the news of his departure from the business in one year, Jeannie Lewis, the present head of operations has actually been asked to take the function in the future. With obstacles in the kind of a potential social adjustment and reduced employee morale, the organization is in need of a total reengineering effort at the advertising department.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the marketing division of The Galaxy Dividend Income Growth Funds Option Investment Strategies is increasing unpredictability in the workplace causing different difficulties for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting strategic decisions given that Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Trade Compensation's intervention while doing so. Offered the reality that the shop has a global existence with branches in UK, USA, Canada and Germany, political factors in each of these countries may have the ability to influence performance or calculated objectives. Federal Profession Payment's antitrust suit versus the merger used up valuable time of the company's senior administration recommending that 'political' factors can have severe ramifications for a worldwide business.

Economic Factors: Financial factors such as the emergence of small companies in the international scenario recommend that The Galaxy Dividend Income Growth Funds Option Investment Strategies is thriving in an environment where there is prospective development of organisations. In addition to this, fact that store clients are mostly trying to find workplace products for office suggests that the marketplace has an increasing trend of entrepreneurs and home services.

Social factors: Social fads in the economic climate reveal that customers are looking for convenience in addition to eye-catching costs. Marketing research shows how the consumer for The Galaxy Dividend Income Growth Funds Option Investment Strategies does not have awareness regarding locating solutions which can provide a combination of comfort and affordable.

Technological factors: Technology plays a vital role in The Galaxy Dividend Income Growth Funds Option Investment Strategies's service method especially as the organization is piloting Technology facilities which would certainly supply technology sales and also support in the type of memory upgrades, peripheral installments. (Summary of PEST in appendix 2).

OB Issues and also Effects.

Numerous underlying Business Habits issues can be seen in The Galaxy Dividend Income Growth Funds Option Investment Strategies's case as highlighted in this area.

Concerns concerning social modification: There is concern about a social adjustment that would certainly happen as soon as Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising with a lot of the personnel already revealing discontent over this prospective action. This predicted adjustment has developed stress and anxiety in the workplace which has been combined with the previous tension of preparing the company for a prospective merging with Home Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is scarcity of workers that can match the demanding environment of a hectic organization. Not only does this bring about difficulty in finding the ideal people, it places stress on new hires as can not stand up to the speed and also pressure that the company anticipates them to birth.

Double Coverage Lines: Beginners discover this business culture difficult as well as difficult to manage especially as dotted line relationships are meant to be weak as a whole as well as unbiased setup as well as efficiency examination is still done by the strong line supervisor. This suggests that newbies could lose clearness concerning their corresponding roles as well as objectives especially as populated line coverage does not keep them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles even though it had been guessed that the latter would certainly take Krasnow's placement came as an impact to her morale. Lewis may have been qualified as well as appropriate for the task however the truth that Kransnow's separation would make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Worry & Task Insecurity: Concern as well as instability can be recognized as 2 major issues that Lewis would be dealing with especially as the merging has actually now be terminated as well as 2 senior execs of the marketing department would certainly be leaving. The whole obligation of the division would certainly be falling on Lewis's shoulders that would certainly not simply be in charge of brining concerning a cultural modification but would certainly likewise need to confirm herself in her new duty.

Incompatible Management Style of Leader: Lewis's management style and also its incompatibility with the advertising department's duty can likewise be seen as an OB challenge especially as she has actually been utilized to managing problems in the operations division where personnel are taught to focus on procedures and obtain them. The advertising and marketing department on the various other hand can be viewed as a group of people who are made use of to being nurtured by Krasnow that focused extra on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental differences between 3 departments, marketing, merchandizing and also operations respectively over the appropriation of the advertising mix can be recognized as an additional OB problem. The marketing department does not share the exact same vision as the various other 2 divisions relating to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing as well as operations departments do not concur over the advertising mix allocation among one another either.

Disintegration in Advertising Department: Fragmentation between the advertising and marketing departments can be identified as an additional OB issue which could need more interest. The reality that the marketing and advertising areas in the advertising and marketing department are disconnected is protecting against both divisions from obtaining from each various other's experience and also proficiency. Assimilation of marketing with retailing as well as operations would certainly come to be harder if the marketing department itself is broken down which can be one more possible OB issue.

The Galaxy Dividend Income Growth Funds Option Investment Strategies Analysis

Various theories have been utilized to discuss the scenarios to obtain more clarity concerning the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that staffs are passive and careless, have little aspiration and also withstand change. The situation at The Galaxy Dividend Income Growth Funds Option Investment Strategies is not entirely following Concept X, it can be seen that brand-new hires are locating this atmosphere instead difficult which may at some point lead to a better inclination of the administration towards Concept X. Also while analyzing Lewis's management design, concept X may have been suitable in the procedures division to some extent yet the Advertising division would certainly require dependence on Concept Y in order to obtain the creative thinking as well as originality from the groups.

Tuckman's Team effort Concept: As for Lewis's problem concerning bringing consistency in between the advertising and marketing division is worried, this would originally bring about clash as talked about by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). As per Tuckman's theory shown in appendix 3, throughout the initial phase of group advancement, individuals might not bond, as they are active finding their location in the group. By incorporating the advertising and marketing department's job, there might coincide preliminary separate which can lead to the 2nd stage of 'storming' where the teams challenge one another. It is just during the third phase or 'norming' when they would come with each other to share concepts prior to the team can bring about harmony in the 4th stage 'performing'.

When individuals are offered with change, they get in phase one and so there might be feelings like despair, unpredictability, frustration, rage, fear, rejection as well as disorientation.The situation at the marketing department of The Galaxy Dividend Income Growth Funds Option Investment Strategies is comparable so Lewis can get comfy with the idea that it is not remarkable habits. It is throughout this phase that Lewis will certainly have to offer assistance to the division so that they can discover a feeling of instructions. It can be seen exactly how Krasnow has actually currently made this change simpler by making Lewis obtain entailed in the division a year prior to his actual departure.
Vrio Analysis
Maslow's Need pecking order: The OB issue pertaining to instability at the work environment has actually been set off firstly by the change in management as well as second of all by the reality that the merger will certainly no more be started. Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has reviews the relevance of 'protection requires as being a reduced degree need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel protected as well as safe' goes to the 2nd level of needs. Prior to an employee can be made to develop mentally, he requires to have his 'Physical 'and also 'Security' needs met. This shows that unless the workers are made to really feel safe concerning their existing work standing in The Galaxy Dividend Income Growth Funds Option Investment Strategies they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for The Galaxy Dividend Income Growth Funds Option Investment Strategies Case Study



Implication of Analysis.

The OB analysis has considered different concepts to understand how to deal with the existing scenario at hand. The following three choices have been suggested to assist Lewis deal with the organizational challenges in the marketing department. Each of these choices has been suggested for easing the shift required to bring the marketing division according to the demands of the marketplace as well as for making the social adjustment that would certainly follow once the existing leader leaves.

Combination of advertising and marketing features. Dividing Adverting and also Production features. Combination of Advertising And Marketing with Workflow.

Assessment of Alternatives.

Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merger days has know-how in business-to-business advertising along with agency and also retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to take care of both advertising and also marketing features.

The benefit of this strategy is that it will certainly incorporate the two features while reducing the need for working with an extra source for advertising. Lewis would certainly be heading the advertising department as well as in any kind of case her replacement would certainly be needed for the current role that she is carrying out. The drawback of this choice is that exterior hiring may bring about bitterness from interior personnel that might be looking at the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and also Production: Provided the competitive stress and also excellent quality work called for from the ad agency, it is recommended that Lewis must enable the production unit to be a separate feature from the advertising and marketing unit. Considering that many advertising agencies had these two functions as different systems, it makes more feeling to comply with the standard. In addition to this, both functions might have the ability to concentrate on their core turns on a lot more effectively. The negative aspect of this strategy would certainly be that extra expenses would certainly have to be borne for establishing up different production functions. Along with this, a manufacturing head may need to be employed which could raise expenses for the company.

Assimilation of Advertising with Workflows: Since Lewis is already taking treatment of the advertising and also operations departments simultaneously; it makes sense to incorporate the two functions considering that she has actually been successfully taking treatment of both ends. The fact that Lewis has to adjust her monitoring style for the advertising division recommends that these two departments would be culturally diverse.

Suggestion.



An assessment of the three options shows that assimilation of advertising and also operations would not be a feasible move as a result of the substantial differences between the two departments although that currently Lewis is managing both. While separation of the manufacturing function may have been a desirable step for the advertising division, the fact that it would imply placing a 3rd function under Lewis's wing means this ought to be prevented. The combination of the advertising division is the most effective alternative in terms of obtaining the optimum arise from the department. An action plan for this option is reviewed listed below.

Activity Strategy.
Recommendation
Lewis will certainly take over the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

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

Lewis will divide herself from operations.

A democratic management design with employee empowerment will certainly be utilized in advertising and marketing division.

Open door policy and emphasis on cross departmental interaction will certainly be focused on getting rid of dissonance.

Backup strategy.

If the combination does not exercise as planned, a backup strategy would follow which would divide the manufacturing function from the advertising and marketing function to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising department without an SVP. In that case the production function will most definitely be separated by putting it under an SVP production.