The Ombudsman Examining Portfolio Risk In Troubled Times B Case Study Solution


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Background and Facts

The Ombudsman Examining Portfolio Risk In Troubled Times B an office products seller for small and moderate sized businesses has just recently been involved in planning for a merging with its rival Home Deport, which has actually impacted effectiveness levels in departmentswith the senior manager involved in legal complications presented by the federal Profession Payment. With the Advertising Head advancing the information of his departure from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the duty in the near future. With difficulties in the type of a prospective social adjustment as well as reduced worker spirits, the organization is in need of a complete reengineering initiative at the marketing division.

Issue Statement
Porter's 5 Forces Analysis
The potential cultural modification at the advertising and marketing department of The Ombudsman Examining Portfolio Risk In Troubled Times B is enhancing uncertainty in the working environment leading to numerous obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting strategic choices since Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Trade Payment's treatment while doing so. Provided the fact that the shop has a worldwide presence with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries might have the ability to influence efficiency or calculated goals. Federal Profession Payment's antitrust match versus the merger took up valuable time of the company's senior administration recommending that 'political' factors can have significant effects for a global business.

Economic Factors: Economic factors such as the appearance of small businesses in the global scenario recommend that The Ombudsman Examining Portfolio Risk In Troubled Times B is growing in an environment where there is potential development of businesses. Truth that store consumers are primarily looking for workplace products for house offices suggests that the market has an increasing fad of entrepreneurs and also home based organisations.

Social factors: Social patterns in the economy reveal that customers are searching for benefit along with eye-catching costs. Market research shows how the consumer for The Ombudsman Examining Portfolio Risk In Troubled Times B lacks awareness regarding discovering remedies which can use a mix of ease as well as low costs.

Technological factors: Innovation plays an essential duty in The Ombudsman Examining Portfolio Risk In Troubled Times B's organisation method specifically as the organization is piloting Innovation facilities which would use modern technology sales and also assistance in the kind of memory upgrades, outer installations. (Recap of BUG in appendix 2).

OB Issues and Manifestations.

Numerous underlying Organizational Actions issues can be seen in The Ombudsman Examining Portfolio Risk In Troubled Times B's case as highlighted in this area.

Worries regarding cultural adjustment: There is uneasiness about a social change that would happen when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising with the majority of the staff members already revealing unhappiness over this prospective relocation. This anticipated change has developed anxiety in the work environment which has actually been combined with the past anxiety of preparing the firm for a potential merging with Residence Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is scarcity of employees that can match the stressful environment of a hectic organization. Not only does this lead to difficulty in discovering the appropriate people, it places tension on brand-new hires as can not stand up to the pace as well as pressure that the organization anticipates them to bear.

Dual Coverage Lines: Novices discover this business society cumbersome and also hard to manage particularly as dotted line connections are implied to be weaker generally as well as unbiased setup as well as performance examination is still done by the solid line manager. This indicates that novices might shed clearness regarding their particular duties as well as goals especially as populated line reporting does not keep them in straight communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been hypothesized that the latter would take Krasnow's setting came as a strike to her spirits. Lewis might have been qualified as well as proper for the job but the truth that Kransnow's departure would make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Concern & Task Insecurity: Anxiety and instability can be identified as 2 significant issues that Lewis would be managing specifically as the merging has actually now be terminated as well as 2 senior executives of the marketing department would be leaving. The entire responsibility of the division would be falling on Lewis's shoulders that would not just supervise of brining about a cultural modification yet would certainly also have to confirm herself in her new duty.

Inappropriate Administration Style of Leader: Lewis's administration design and also its incompatibility with the advertising and marketing department's role can additionally be seen as an OB difficulty especially as she has been utilized to dealing with concerns in the operations department where employees are taught to concentrate on processes and also obtain them. The advertising and marketing department on the various other hand can be seen as a team of people that are made use of to being supported by Krasnow who concentrated extra on outcome than processes.

Interdepartmental Disagreements: Interdepartmental disputes in between 3 departments, marketing, merchandizing and also operations specifically over the appropriation of the advertising mix can be identified as an additional OB issue. The advertising department does not share the very same vision as the various other two departments pertaining to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and also operations departments do not concur over the advertising mix allowance amongst one an additional either.

Disintegration in Marketing Department: Fragmentation in between the advertising and marketing divisions can be recognized as an additional OB issue which could require further interest. The reality that the advertising and marketing sections in the advertising department are disconnected is avoiding both departments from obtaining from each other's experience as well as proficiency. Assimilation of advertising with merchandising as well as procedures would certainly come to be harder if the advertising and marketing division itself is broken down which can be another possible OB concern.

The Ombudsman Examining Portfolio Risk In Troubled Times B Analysis

Different theories have been made use of to explain the scenarios to obtain further clearness concerning the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers think that subordinates are passive and also lazy, have little passion and also withstand modification. The difficult variation of this concept emphasized browbeating, limited controls, hazards and also penalties. In time it generates reduced productivity, refined sabotage and rivalry (Offer, 2003). The scenario at The Ombudsman Examining Portfolio Risk In Troubled Times B is not entirely following Theory X, it can be seen that new hires are finding this environment instead stressful which may ultimately lead to a greater disposition of the monitoring towards Theory X. Based on McGregor's supported view, which he called Theory Y, the vital task of the monitoring is to arrange business conditions to ensure that people can accomplish their very own goals best by directing their initiatives in the direction of organizational rewards. If individuals find no satisfaction in their job, the management would have little choice yet to rely on theory X and also outside control (Bargain, 2003). Even while analyzing Lewis's administration style, concept X might have appropriated in the procedures division somewhat however the Advertising department would require dependence on Theory Y to get the creative thinking as well as originality from the teams.

Tuckman's Teamwork Theory: As for Lewis's problem about bringing consistency between the marketing and advertising division is concerned, this would originally lead to conflict as talked about by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's theory displayed in appendix 3, throughout the preliminary phase of group growth, individuals might not bond, as they are active discovering their area in the team. By integrating the marketing and advertising department's job, there may coincide initial separate which might result in the 2nd stage of 'storming' where the teams test each other. Nonetheless, it is only during the third phase or 'norming' when they would integrate to share ideas before the group can cause harmony in the fourth stage 'executing'.

When people are provided with modification, they get in stage one as well as so there may be emotions like despair, unpredictability, irritation, rage, fear, denial and also disorientation.The situation at the advertising and marketing department of The Ombudsman Examining Portfolio Risk In Troubled Times B is comparable so Lewis can get comfy with the suggestion that it is not extraordinary habits. It is during this stage that Lewis will certainly have to give support to the department so that they can locate a feeling of instructions. It can be seen just how Krasnow has actually already made this change simpler by making Lewis get involved in the department a year before his actual separation.
Vrio Analysis
Maslow's Need power structure: The OB issue related to instability at the office has been activated first of all by the change in monitoring and secondly by the reality that the merger will no longer be initiated. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has talks about the importance of 'security requires as being a reduced degree requirement of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the requirement to really feel safe as well as safe' goes to the 2nd degree of demands. Prior to an employee can be made to create psychologically, he requires to have his 'Physiological 'and also 'Safety and security' needs met. This indicates that unless the personnel are made to really feel safe and secure regarding their present work standing in The Ombudsman Examining Portfolio Risk In Troubled Times B they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for The Ombudsman Examining Portfolio Risk In Troubled Times B Case Study

Implication of Analysis.

The OB analysis has actually looked at numerous theories to recognize just how to cope with the existing scenario available. The complying with 3 choices have actually been suggested to help Lewis handle the business difficulties in the advertising and marketing division. Each of these choices has actually been suggested for easing the change needed to bring the advertising and marketing division according to the requirements of the market and for making the cultural change that would certainly adhere to when the present leader leaves.

Combination of advertising and marketing features. Dividing Adverting and Manufacturing functions. Assimilation of Advertising And Marketing with Procedures.

Analysis of Alternatives.

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

The benefit of this technique is that it will incorporate both features while minimizing the requirement for employing an additional resource for marketing. Lewis would certainly be heading the advertising division and in any type of case her replacement would be required for the present duty that she is carrying out. The drawback of this option is that external hiring might bring about animosity from interior workers that may be looking at the placement of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Production: Offered the affordable stress and also high quality work needed from the marketing firm, it is advised that Lewis should enable the manufacturing unit to be a different feature from the advertising and marketing device. Given that the majority of advertising companies had these two functions as separate units, it makes more sense to adhere to the norm.

Assimilation of Advertising with Workflows: Given that Lewis is currently caring for the advertising as well as procedures departments concurrently; it makes sense to integrate both functions given that she has actually been efficiently looking after both ends. The reality that both divisions already have significant differences over allotment of resources recommends that this combination may be able to cause harmony particularly as Lewis would be heading both ends.However there are different negative aspects of this relocation specifically as it would certainly place excessive burden over Lewis's shoulders. The fact that Lewis needs to adapt her monitoring style for the advertising department recommends that these two divisions would certainly be culturally varied. In addition to this, Lewis may not have the ability to apply one type of management design to both departments which could lead to inefficiency in either one of both functions.


An assessment of the three options suggests that integration of marketing and also operations would not be a practical relocation due to the huge distinctions in between the two divisions despite the fact that presently Lewis is managing both. While splitting up of the production feature may have been a positive action for the marketing division, the truth that it would imply positioning a third feature under Lewis's wing means this ought to be avoided. The combination of the marketing division is the very best option in terms of obtaining the optimum arise from the department. An action prepare for this alternative is talked about listed below.

Activity Plan.
Lewis will certainly take control of the function of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would be merged.

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

Manufacturing function will remain component of advertising under marketing feature.

Lewis will divide herself from procedures.

A democratic management style with staff member empowerment will certainly be used in marketing division.

Open up door policy and emphasis on cross department communication will certainly be focused on removing disharmony.

Backup plan.

If the integration does not exercise as intended, a contingency strategy would adhere to which would divide the production feature from the advertising function to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the production feature will certainly be separated by positioning it under an SVP manufacturing.