The Role Of The Chief Financial Officer Case Study Solution


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The Role Of The Chief Financial Officer Case Study Analysis

Background and Facts

The Role Of The Chief Financial Officer an office products retailer for tiny and average sized businesses has just recently been associated with preparing for a merger with its rival Residence Deport, which has actually influenced effectiveness levels in departmentswith the senior supervisor involved in legal issues put forth by the government Profession Commission. With the Advertising Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the present head of procedures has been asked to take the function in the future. With difficulties in the type of a potential social adjustment and also low staff member spirits, the company wants a full reengineering initiative at the marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective social adjustment at the marketing department of The Role Of The Chief Financial Officer is increasing uncertainty in the workplace causing various difficulties for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing strategic choices considering that Stapes Inc. needed to abandon its strategies of combining with Workplace Deport after the Federal Trade Commission's intervention while doing so. Given the truth that the store has a worldwide visibility with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these countries may be able to impact efficiency or strategic goals. Federal Profession Commission's antitrust fit versus the merger used up useful time of the organization's senior management recommending that 'political' factors can have significant effects for a global service.

Economic Factors: Financial factors such as the emergence of small companies in the worldwide scenario recommend that The Role Of The Chief Financial Officer is flourishing in an atmosphere where there is potential development of organisations. Truth that shop clients are primarily looking for workplace products for home offices suggests that the market has a rising fad of entrepreneurs and home based businesses.

Social factors: Social patterns in the economic situation show that customers are searching for comfort as well as appealing rates. Marketing research shows how the consumer for The Role Of The Chief Financial Officer lacks awareness regarding discovering options which can offer a mix of benefit and also low costs.

Technical factors: Technology plays an essential role in The Role Of The Chief Financial Officer's company approach specifically as the company is piloting Technology facilities which would certainly provide innovation sales as well as assistance in the type of memory upgrades, outer installations. (Recap of BUG in appendix 2).

OB Issues as well as Symptoms.

Numerous underlying Business Behavior issues can be seen in The Role Of The Chief Financial Officer's case as highlighted in this area.

Concerns about cultural modification: There is apprehension concerning a cultural modification that would certainly occur when Todd Krasnow leaves from his setting as the Exec Vice President of Advertising with a lot of the personnel already revealing unhappiness over this prospective action. This expected change has developed tension in the work environment which has actually been combined with the previous tension of preparing the company for a possible merging with Residence Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is lack of personnel that can match the difficult setting of a hectic company. Not just does this result in problem in discovering the appropriate individuals, it places tension on new hires as can not withstand the speed as well as pressure that the organization anticipates them to birth.

Dual Coverage Lines: Newcomers locate this organizational culture difficult and also challenging to cope with specifically as populated line connections are suggested to be weaker generally and unbiased setup and also performance evaluation is still done by the strong line supervisor. This implies that beginners could shed clarity regarding their particular roles and goals especially as dotted line reporting does not maintain them in straight interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had actually been hypothesized that the latter would certainly take Krasnow's setting came as an impact to her spirits. Lewis might have been qualified and suitable for the task yet the reality that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Work Insecurity: Anxiety and also insecurity can be identified as two major concerns that Lewis would certainly be taking care of particularly as the merging has actually currently be cancelled and two senior execs of the advertising and marketing department would be leaving. The entire duty of the department would certainly be falling on Lewis's shoulders who would certainly not simply be in charge of brining regarding a social modification but would also have to verify herself in her new function.

Inappropriate Management Style of Leader: Lewis's administration design as well as its conflict with the marketing division's duty can additionally be seen as an OB challenge particularly as she has been made use of to dealing with concerns in the procedures department where personnel are taught to concentrate on processes and obtain them. The marketing division on the other hand can be viewed as a team of people who are used to being nurtured by Krasnow that concentrated much more on result than processes.

Interdepartmental Disagreements: Interdepartmental disagreements between three departments, advertising, merchandizing and also procedures respectively over the allocation of the marketing mix can be recognized as another OB problem. The advertising and marketing division does not share the very same vision as the various other two departments regarding the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and operations divisions do not concur over the marketing mix allowance among one an additional either.

Disintegration in Marketing Division: Disintegration between the advertising and marketing departments can be determined as another OB concern which could need further interest. The fact that the marketing and advertising sections in the advertising department are separated is stopping both divisions from gaining from each various other's experience as well as expertise. Integration of advertising and marketing with retailing as well as operations would certainly become more difficult if the advertising department itself is degenerated which can be an additional possible OB problem.

The Role Of The Chief Financial Officer Analysis

Various concepts have actually been made use of to describe the conditions to get more clarity about the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of supervisors believe that staffs are easy as well as lazy, have little aspiration and also resist adjustment. The scenario at The Role Of The Chief Financial Officer is not entirely following Concept X, it can be seen that brand-new hires are finding this setting instead demanding which might ultimately lead to a better disposition of the monitoring towards Theory X. Also while analyzing Lewis's monitoring style, theory X might have been suitable in the operations division to some degree but the Marketing department would call for reliance on Concept Y in order to get the creativity and also originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's problem concerning bringing consistency between the advertising and marketing department is concerned, this would initially lead to contrast as talked about by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, during the initial stage of group advancement, people may not bond, as they are hectic locating their area in the group. By integrating the advertising and marketing division's job, there may be the same initial disconnect which could bring about the 2nd stage of 'storming' where the groups challenge each other. It is just throughout the third phase or 'norming' when they would certainly come with each other to share suggestions before the group can bring about harmony in the fourth stage 'carrying out'.

When people are presented with change, they go into phase one and also so there might be feelings like despair, unpredictability, disappointment, rage, concern, rejection as well as disorientation.The scenario at the advertising division of The Role Of The Chief Financial Officer is similar so Lewis can get comfy with the idea that it is not extraordinary habits. It is during this stage that Lewis will certainly have to provide guidance to the department so that they can find a sense of direction. It can be seen just how Krasnow has already made this change much easier by making Lewis obtain entailed in the division a year prior to his actual departure.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Power structure' (appendix 5) has discusses the significance of 'protection needs as being a reduced degree requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel safe and secure and also out of risk' is at the 2nd degree of requirements. Before an employee can be made to establish mentally, he needs to have his 'Physiological 'and 'Safety' requires fulfilled.

SWOT Analysis for The Role Of The Chief Financial Officer Case Study

Implication of Analysis.

The OB analysis has considered various theories to recognize exactly how to handle the existing scenario at hand. The following 3 choices have actually been suggested to aid Lewis handle the organizational challenges in the advertising and marketing department. Each of these choices has been recommended for alleviating the transition needed to bring the marketing department according to the demands of the marketplace as well as for making the cultural adjustment that would certainly adhere to as soon as the current leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and Production functions. Assimilation of Advertising And Marketing with Procedures.

Analysis of Alternatives.

Integration of Advertising And Marketing & Marketing Functions: The in-house advertising company of The Role Of The Chief Financial Officer is currently toughness for the company in regards to saving up on expenses related to advertising and marketing and promotion. Considering that no brand-new recruitment has been done after Bridget Cole's separation with the coverage line being straight assigned to Krasnow for the advertising and marketing function, this is a favorable possibility for incorporating the marketing and advertising functions. Judith Shapiro who has actually earlier been interviewed by Lewis throughout the earlier merger days has experience in business-to-business advertising along with agency and retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to manage both marketing and advertising features.

The advantage of this technique is that it will integrate both functions while reducing the demand for working with an extra source for advertising. Along with this, Lewis would be heading the advertising and marketing department as well as in any case her replacement would be required for the existing duty that she is doing. The downside of this choice is that external hiring may produce animosity from internal employees who may be eying the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Manufacturing: Given the affordable pressures as well as excellent quality job called for from the advertising agency, it is suggested that Lewis should permit the manufacturing unit to be a different function from the advertising unit. Given that the majority of advertising agencies had these 2 features as different devices, it makes even more feeling to follow the standard. Both functions might be able to focus on their core triggers a lot more efficiently. The downside of this method would certainly be that additional costs would certainly have to be borne for setting up separate manufacturing features. A production head may have to be employed which can enhance expenses for the organization.

Integration of Advertising And Marketing with Operations: Given that Lewis is currently looking after the advertising and marketing and procedures departments simultaneously; it makes sense to integrate the two functions given that she has actually been successfully taking care of both ends. The reality that the two departments currently have significant distinctions over appropriation of sources recommends that this assimilation may have the ability to bring about consistency particularly as Lewis would certainly be heading both ends.However there are different negative aspects of this move particularly as it would certainly place too much burden over Lewis's shoulders. The fact that Lewis has to adapt her management style for the advertising division recommends that these 2 departments would be culturally diverse. Lewis might not be able to use one type of management design to both departments which can result in inadequacy in either one of the 2 functions.


An examination of the three alternatives indicates that integration of advertising and also operations would certainly not be a practical relocation due to the substantial differences in between the two divisions in spite of the reality that currently Lewis is managing both. While separation of the production function might have been a desirable step for the advertising division, the fact that it would imply placing a third feature under Lewis's wing implies this must be avoided.

Action Plan.
Lewis will certainly take over the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

Production feature will certainly stay component of marketing under advertising and marketing function.

Lewis will separate herself from operations.

A democratic leadership design with staff member empowerment will certainly be utilized in marketing department.

Open up door policy and focus on cross department interaction will certainly be aimed at eliminating dissonance.

Backup plan.

If the combination does not work out as intended, a backup plan would certainly comply with which would divide the manufacturing function from the marketing function to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising division without an SVP. In that case the production function will absolutely be separated by putting it under an SVP production.