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The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation B Integration Planning Case Study Help

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The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation B Integration Planning Case Study Help

Background and Facts

The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation B Integration Planning an office materials retailer for small and also medium sized services has actually recently been involved in planning for a merger with its competitor Residence Deport, which has actually impacted effectiveness degrees in departmentswith the elderly supervisor associated with lawful complications put forth by the federal Trade Compensation. With the Advertising and marketing Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the duty in the near future. With challenges in the form of a prospective cultural modification and reduced staff member morale, the organization wants a full reengineering effort at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the marketing division of The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation B Integration Planning is increasing unpredictability in the working environment causing numerous difficulties for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting calculated choices considering that Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Profession Payment's intervention in the process. Offered the fact that the shop has an international existence with branches in UK, USA, Canada and Germany, political consider each of these countries may have the ability to impact efficiency or strategic objectives. Federal Trade Compensation's antitrust fit versus the merger used up valuable time of the organization's senior administration suggesting that 'political' factors can have major effects for a global company.

Economic Factors: Economic factors such as the introduction of small companies in the global circumstance recommend that The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation B Integration Planning is flourishing in a setting where there is possible development of services. Along with this, truth that shop customers are mainly looking for office products for home offices recommends that the market has an increasing trend of entrepreneurs and also home based companies.

Social factors: Social fads in the economic climate reveal that customers are seeking convenience as well as eye-catching rates. Market research demonstrates how the customer for The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation B Integration Planning lacks recognition concerning locating services which can use a mix of benefit as well as affordable.

Technological factors: Innovation plays a crucial function in The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation B Integration Planning's service technique particularly as the company is piloting Modern technology centers which would offer technology sales and assistance in the kind of memory upgrades, outer installations. (Recap of INSECT in appendix 2).

OB Issues and Manifestations.

Several underlying Business Behavior problems can be seen in The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation B Integration Planning's case as highlighted in this section.

Apprehensions about social adjustment: There is worry concerning a social adjustment that would certainly occur once Todd Krasnow leaves from his position as the Executive Vice President of Advertising And Marketing with the majority of the employee already showing discontent over this possible step. This predicted modification has produced stress in the office which has been paired with the past stress of preparing the company for a possible merger with Home Deport.
Pest Analysis
Demanding Work Atmosphere for Newcomers: There is scarcity of personnel that can match the difficult setting of a fast-paced organization. Not just does this lead to problem in discovering the right people, it puts stress on brand-new hires as can not withstand the speed as well as pressure that the company anticipates them to birth.

Double Coverage Lines: Newbies find this business society difficult and challenging to manage especially as populated line relationships are indicated to be weak as a whole and also unbiased setup and performance examination is still done by the solid line supervisor. This suggests that beginners could shed quality concerning their corresponding functions as well as purposes especially as populated line reporting does not keep them in straight interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles even though it had actually been speculated that the latter would certainly take Krasnow's setting came as a blow to her spirits. Lewis may have been qualified and also appropriate for the task however the reality that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Anxiety & Task Instability: Worry and insecurity can be identified as 2 significant problems that Lewis would be handling particularly as the merging has currently be terminated and also 2 senior execs of the advertising and marketing division would certainly be leaving. The whole obligation of the division would certainly be falling on Lewis's shoulders who would certainly not just supervise of brining about a cultural change however would also have to confirm herself in her new duty.

Inappropriate Monitoring Design of Leader: Lewis's monitoring style and its conflict with the marketing division's role can additionally be seen as an OB challenge particularly as she has been utilized to dealing with concerns in the procedures department where workers are taught to focus on procedures and obtain them right. The advertising department on the various other hand can be viewed as a group of people that are used to being supported by Krasnow who focused extra on result than processes.

Interdepartmental Arguments: Interdepartmental disputes in between 3 departments, advertising and marketing, merchandizing and also operations respectively over the allowance of the advertising mix can be determined as one more OB issue. The marketing department does not share the same vision as the other two departments pertaining to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and procedures departments do not agree over the marketing mix allowance amongst one another either.

Fragmentation in Advertising Division: Disintegration between the advertising and marketing divisions can be identified as another OB issue which can require additional focus. The truth that the advertising and marketing sections in the advertising department are separated is preventing both departments from acquiring from each various other's experience and expertise. Combination of advertising with merchandising and also operations would become more difficult if the advertising division itself is broken down which can be one more prospective OB issue.

The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation B Integration Planning Analysis

Various theories have been utilized to clarify the scenarios to get further clarity about the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors think that staffs are passive as well as lazy, have little ambition and also resist adjustment. The scenario at The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation B Integration Planning is not totally following Concept X, it can be seen that new hires are locating this environment rather stressful which may eventually lead to a higher inclination of the management towards Theory X. Even while evaluating Lewis's administration design, concept X may have been suitable in the operations division to some extent however the Advertising division would certainly require dependence on Theory Y in order to get the creativity and creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's worry concerning bringing harmony in between the advertising and marketing and also advertising department is worried, this would originally lead to conflict as gone over by Bruce Tuckman in his 'Team effort Concept'. By incorporating the advertising and marketing as well as advertising and marketing division's job, there may be the exact same first disconnect which could lead to the 2nd phase of 'storming' where the groups challenge one an additional.

Bridges' Transition Model: Based On William Bridge's theory (appendix 4), people are fairly uneasy with modification, which is apparent by the situation at The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation B Integration Planning The scenario can be viewed as a typical program of life if is studied according to Bridge's theory where he explains that people go through 3 stages of shift when they experience modification. 'End, shedding and also Letting go', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When people exist with adjustment, they enter phase one therefore there may be emotions like unhappiness, uncertainty, stress, rage, worry, rejection as well as disorientation.The scenario at the advertising and marketing division of The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation B Integration Planning is similar so Lewis can get comfy with the idea that it is not amazing actions. In the second phase, there may be a requirement to link the void in between the brand-new as well as old society so Lewis might need to face this experience as soon as Krasnow leaves. There may be reduced spirits as well as low efficiency at this phase which should not be taken as a problem. It is during this phase that Lewis will certainly need to provide support to the department to ensure that they can discover a sense of direction. It can be seen exactly how Krasnow has actually currently made this change less complicated by making Lewis obtain associated with the division a year prior to his real departure. Based on Bridges' Version, phase 3 will certainly bring about visibility to understanding, High power and also commitment as individuals will welcome the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has discusses the value of 'safety requires as being a reduced degree demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel safe and secure and out of risk' is at the 2nd degree of demands. Before an employee can be made to establish emotionally, he requires to have his 'Physiological 'as well as 'Security' needs fulfilled.

SWOT Analysis for The Merger Of Union Bank Of Switzerland And Swiss Bank Corporation B Integration Planning Case Study



Ramification of Analysis.

The OB analysis has checked out numerous concepts to recognize just how to cope with the current situation handy. The complying with three choices have been recommended to assist Lewis manage the organizational obstacles in the advertising division. Each of these options has been proposed for easing the transition needed to bring the advertising and marketing department according to the needs of the marketplace as well as for making the social adjustment that would follow when the current leader leaves.

Integration of marketing and advertising functions. Separating Adverting and Production functions. Combination of Advertising And Marketing with Workflow.

Analysis of Alternatives.

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

The benefit of this approach is that it will integrate the two features while reducing the need for working with an additional source for advertising and marketing. Lewis would certainly be heading the advertising and marketing department as well as in any type of case her replacement would be needed for the existing duty that she is performing. The downside of this choice is that exterior hiring might bring about resentment from inner employees that might be eying the setting of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and Manufacturing: Given the competitive pressures and also high top quality work called for from the marketing agency, it is suggested that Lewis must allow the manufacturing unit to be a different feature from the advertising system. Considering that many advertising firms had these two features as different devices, it makes even more sense to comply with the norm.

Assimilation of Marketing with Procedures: Because Lewis is already caring for the advertising and marketing and also procedures divisions all at once; it makes sense to integrate the two features since she has actually been successfully looking after both ends. The truth that the two departments currently have major distinctions over allocation of sources suggests that this assimilation may have the ability to cause consistency especially as Lewis would be heading both ends.However there are various disadvantages of this action particularly as it would certainly place too much concern over Lewis's shoulders. The fact that Lewis needs to adjust her monitoring design for the advertising and marketing division suggests that these two divisions would be culturally varied. Along with this, Lewis may not be able to use one kind of management design to both departments which might cause ineffectiveness in either one of both features.

Recommendation.



An assessment of the 3 options indicates that assimilation of advertising and procedures would not be a feasible relocation due to the huge differences in between the two divisions despite the fact that presently Lewis is taking care of both. While separation of the production feature may have been a favorable action for the advertising and marketing division, the reality that it would certainly mean placing a 3rd function under Lewis's wing suggests this must be prevented also. The assimilation of the advertising division is the very best choice in regards to getting the optimum arise from the department. An action plan for this alternative is talked about below.

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

Marketing and advertising features would certainly be merged.

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

Production function will stay part of marketing under marketing feature.

Lewis will separate herself from operations.

An autonomous management style with worker empowerment will certainly be used in advertising and marketing division.

Open door plan as well as emphasis on cross department communication will certainly be focused on removing disharmony.

Backup plan.

If the assimilation does not exercise as prepared, a contingency plan would adhere to which would certainly divide the manufacturing function from the marketing function to lower the lots 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 production feature will definitely be separated by positioning it under an SVP production.