Background and FactsThe Rise And Fall Of Lehman Brothers an office materials retailer for tiny and also medium sized companies has actually lately been involved in planning for a merging with its rival Residence Deport, which has impacted performance degrees in departmentswith the senior manager involved in legal difficulties put forth by the federal Profession Payment. With the Advertising Head putting forward the news of his separation from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the duty in the near future. With difficulties in the type of a possible social modification and reduced worker morale, the organization wants a total reengineering effort at the advertising and marketing division.
The prospective cultural adjustment at the advertising department of The Rise And Fall Of Lehman Brothers is raising uncertainty in the workplace bring about various difficulties for the Jeannie Lewis who would be changing the head of the department in one year. nalysis
Political Factors: Political factors play a major role in impacting calculated choices since Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Trade Commission's intervention in the process. Given the reality that the store has a global presence with branches in UK, U.S.A., Canada and Germany, political factors in each of these nations might have the ability to affect performance or tactical objectives. Federal Trade Payment's antitrust suit versus the merger occupied beneficial time of the company's senior monitoring suggesting that 'political' factors can have major ramifications for a worldwide organisation.
Economic Factors: Economic factors such as the emergence of small companies in the worldwide situation suggest that The Rise And Fall Of Lehman Brothers is flourishing in an environment where there is possible growth of businesses. Truth that store consumers are mostly looking for office products for house offices suggests that the market has a climbing fad of entrepreneurs as well as residence based companies.
Social factors: Social fads in the economy show that clients are trying to find ease along with appealing prices. Marketing research demonstrates how the client for The Rise And Fall Of Lehman Brothers lacks recognition concerning discovering services which can supply a combination of comfort and inexpensive.
Technical factors: Modern technology plays an essential role in The Rise And Fall Of Lehman Brothers's organisation strategy specifically as the company is piloting Technology centers which would certainly offer innovation sales as well as support in the kind of memory upgrades, peripheral installments. (Summary of INSECT in appendix 2).
OB Issues as well as Manifestations.
Numerous underlying Business Actions issues can be seen in The Rise And Fall Of Lehman Brothers's case as highlighted in this section.
Concerns concerning social adjustment: There is worry concerning a cultural adjustment that would certainly occur as soon as Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with the majority of the personnel already revealing unhappiness over this possible relocation. This anticipated change has developed stress in the work environment which has actually been coupled with the previous stress of preparing the company for a possible merger with Residence Deport.
Stressful Task Environment for Newcomers: There is lack of personnel that can match the difficult setting of a hectic company. Not just does this bring about trouble in finding the right individuals, it places stress on new hires as can not withstand the pace and pressure that the organization anticipates them to bear.
Double Coverage Lines: Beginners locate this business society cumbersome as well as difficult to handle particularly as dotted line partnerships are suggested to be weak generally and unbiased setup as well as efficiency evaluation is still done by the strong line supervisor. This implies that beginners could shed clearness concerning their respective functions as well as purposes especially as populated line reporting does not maintain them in straight interaction with the strong line managers.
Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles despite the fact that it had been speculated that the last would certainly take Krasnow's setting came as a strike to her morale. Lewis may have been qualified as well as proper for the task but the fact that Kransnow's separation would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.
Worry & Work Instability: Worry and also insecurity can be identified as two significant issues that Lewis would certainly be handling particularly as the merging has currently be terminated and also 2 senior execs of the advertising and marketing division would be leaving. The entire duty of the division would certainly be falling on Lewis's shoulders who would not just be in charge of brining about a cultural change however would likewise need to prove herself in her brand-new role.
Incompatible Administration Style of Leader: Lewis's monitoring design as well as its incompatibility with the advertising and marketing division's duty can also be seen as an OB challenge particularly as she has been utilized to managing concerns in the operations department where personnel are taught to concentrate on processes as well as get them. The advertising department on the various other hand can be seen as a team of individuals that are utilized to being nurtured by Krasnow that focused a lot more on result than processes.
Interdepartmental Arguments: Interdepartmental disputes in between three departments, advertising and marketing, merchandizing as well as operations respectively over the allotment of the advertising mix can be determined as one more OB issue. Although the advertising and marketing department does not share the exact same vision as the other two departments regarding the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and operations departments do not concur over the marketing mix allotment amongst each other either.
Disintegration in Marketing Division: Disintegration between the marketing and advertising departments can be determined as an additional OB issue which might need more interest. The truth that the marketing and advertising sections in the marketing department are detached is stopping both departments from gaining from each various other's experience as well as experience. Integration of advertising with merchandising and also procedures would end up being harder if the advertising and marketing department itself is degenerated which can be another possible OB worry.
The Rise And Fall Of Lehman Brothers Analysis
Different concepts have been used to explain the situations to obtain further clarity concerning the scenario handy.
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of managers think that juniors are easy and lazy, have little aspiration and stand up to modification. The scenario at The Rise And Fall Of Lehman Brothers is not entirely following Theory X, it can be seen that brand-new hires are discovering this atmosphere instead difficult which may eventually lead to a higher disposition of the monitoring towards Concept X. Also while examining Lewis's management design, concept X might have been appropriate in the operations department to some extent however the Marketing department would certainly need reliance on Theory Y in order to get the imagination as well as creativity from the teams.
Tuckman's Team effort Theory: As much as Lewis's issue regarding bringing harmony between the advertising as well as advertising and marketing department is worried, this would at first lead to clash as gone over by Bruce Tuckman in his 'Team effort Concept'. By combining the advertising as well as advertising department's job, there may be the same preliminary detach which might lead to the 2nd phase of 'storming' where the groups test one an additional.
Bridges' Transition Version: As per William Bridge's concept (appendix 4), individuals are rather uneasy with change, which is obvious by the circumstance at The Rise And Fall Of Lehman Brothers The scenario can be seen as a normal program of life if is examined according to Bridge's theory where he clarifies that individuals go through three phases of change when they experience adjustment. 'End, losing and also Letting go', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When people are presented with modification, they go into phase one therefore there might be feelings like unhappiness, unpredictability, disappointment, temper, concern, denial and also disorientation.The scenario at the marketing division of The Rise And Fall Of Lehman Brothers is comparable so Lewis can obtain comfortable with the idea that it is not amazing habits. In the second stage, there may be a requirement to bridge the gap in between the brand-new and old society so Lewis might need to face this challenge once Krasnow leaves. There might be reduced morale as well as low productivity at this phase which should not be taken as a setback. It is during this phase that Lewis will have to give assistance to the department so that they can locate a sense of direction. It can be seen exactly how Krasnow has actually already made this change less complicated by making Lewis obtain involved in the department a year prior to his real separation. According to Bridges' Model, stage three will cause visibility to discovering, High energy and commitment as individuals will certainly welcome the adjustment (Bridges, 2004).
Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has talks about the relevance of 'safety requires as being a lower degree requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the requirement to feel protected and also out of threat' is at the 2nd degree of requirements. Before a worker can be made to establish psychologically, he requires to have his 'Physical 'and 'Safety and security' requires met.
SWOT Analysis for The Rise And Fall Of Lehman Brothers Case Study
Ramification of Analysis.
The OB analysis has looked at numerous concepts to understand exactly how to cope with the existing scenario available. The following three choices have actually been recommended to help Lewis handle the business obstacles in the marketing division. Each of these choices has been proposed for reducing the change required to bring the advertising division according to the needs of the market and also for making the cultural modification that would adhere to as soon as the present leader leaves.
Integration of marketing and advertising functions. Dividing Adverting as well as Manufacturing functions. Assimilation of Marketing with Procedures.
Examination of Alternatives.
Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merger days has proficiency in business-to-business advertising and marketing along with firm and also retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to manage both marketing and also marketing functions.
The benefit of this technique is that it will integrate the two features while decreasing the need for working with an additional source for advertising. In addition to this, Lewis would be heading the marketing division and regardless her replacement would certainly be required for the current role that she is carrying out. The downside of this choice is that external hiring may cause bitterness from inner employees that may be eying the position of EVP after Lewis takes control of Krasnow's position.
Dividing Adverting and Production: Offered the competitive stress and high quality job needed from the advertising agency, it is suggested that Lewis should allow the manufacturing unit to be a different feature from the advertising and marketing device. Considering that most ad agency had these two functions as separate devices, it makes even more feeling to follow the norm. In addition to this, both functions may have the ability to focus on their core activates extra successfully. Nonetheless, the disadvantage of this method would certainly be that additional expenses would certainly need to be birthed for setting up separate manufacturing functions. A manufacturing head might have to be worked with which might increase overheads for the organization.
Combination of Marketing with Workflows: Since Lewis is already taking treatment of the advertising as well as procedures divisions at the same time; it makes sense to integrate the 2 functions given that she has actually been efficiently taking treatment of both ends. The truth that Lewis has to adjust her management design for the advertising and marketing division suggests that these 2 departments would be culturally varied.
An evaluation of the three choices indicates that integration of marketing as well as procedures would not be a possible action because of the substantial distinctions between both divisions although that currently Lewis is handling both. While separation of the production feature may have been a positive move for the marketing division, the truth that it would imply placing a 3rd function under Lewis's wing implies this should be prevented. The combination of the advertising and marketing department is the most effective choice in regards to getting the ideal results from the division. An activity prepare for this choice is discussed listed below.
Lewis will take control of the role of EVP Advertising after Krasnow leaves.
Advertising and Marketing functions would certainly be combined.
Judith Shapiro will certainly be worked with to take Lewis's place as SVP of marketing and advertising.
Manufacturing feature will certainly stay component of marketing under advertising and marketing feature.
Lewis will certainly divide herself from operations.
A democratic management style with employee empowerment will be made use of in advertising division.
Open door plan as well as emphasis on cross departmental interaction will certainly be aimed at eliminating disharmony.
If the integration does not exercise as prepared, a backup strategy would certainly comply with which would separate the production function from the advertising feature to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the marketing department without an SVP. Because case the manufacturing feature will most definitely be separated by positioning it under an SVP production.