The Valuation And Financing Of Lady M Confections Case Study Solution


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The Valuation And Financing Of Lady M Confections Case Study Solution

Background and Facts

The Valuation And Financing Of Lady M Confections a workplace products store for little as well as moderate sized companies has actually lately been involved in planning for a merger with its rival Residence Deport, which has actually influenced performance levels in departmentswith the elderly manager involved in legal difficulties presented by the federal Trade Payment. With the Marketing Head advancing the news of his separation from the firm in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the duty in the future. With challenges in the kind of a prospective cultural adjustment as well as reduced staff member spirits, the organization is in need of a full reengineering initiative at the marketing department.

Issue Statement
Porter's 5 Forces Analysis
The potential social change at the advertising and marketing division of The Valuation And Financing Of Lady M Confections is boosting unpredictability in the workplace causing various difficulties for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting strategic choices given that Stapes Inc. needed to abandon its strategies of combining with Workplace Deport after the Federal Profession Compensation's treatment in the process. Provided the truth that the store has a global visibility with branches in UK, USA, Canada as well as Germany, political consider each of these nations may have the ability to affect efficiency or strategic goals. Federal Profession Compensation's antitrust fit versus the merging took up valuable time of the organization's elderly monitoring recommending that 'political' factors can have severe implications for a global service.

Economic Factors: Financial factors such as the appearance of small businesses in the global circumstance suggest that The Valuation And Financing Of Lady M Confections is growing in an environment where there is possible development of organisations. Along with this, truth that store clients are primarily seeking office products for home offices suggests that the market has a climbing trend of entrepreneurs and also home based businesses.

Social factors: Social fads in the economic climate reveal that clients are trying to find ease as well as attractive costs. Market research shows how the client for The Valuation And Financing Of Lady M Confections lacks recognition concerning locating services which can supply a combination of ease as well as inexpensive.

Technological factors: Innovation plays an essential duty in The Valuation And Financing Of Lady M Confections's company technique specifically as the organization is piloting Modern technology centers which would certainly provide modern technology sales and also support in the type of memory upgrades, peripheral setups. (Recap of PARASITE in appendix 2).

OB Issues and also Effects.

Several underlying Business Behavior concerns can be seen in The Valuation And Financing Of Lady M Confections's case as highlighted in this area.

Uneasiness regarding cultural adjustment: There is worry about a cultural adjustment that would occur once Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Marketing with the majority of the personnel already revealing discontent over this prospective relocation. This anticipated modification has actually developed tension in the work environment which has actually been paired with the previous anxiety of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is lack of workers that can match the demanding setting of a busy organization. Not just does this cause difficulty in locating the right people, it places stress and anxiety on new hires as can not stand up to the speed and also pressure that the organization anticipates them to birth.

Double Reporting Lines: Beginners discover this organizational culture cumbersome and tough to cope with specifically as dotted line relationships are indicated to be weak in general as well as objective setting and efficiency evaluation is still done by the strong line supervisor. This suggests that newcomers could shed quality concerning their particular roles and also purposes specifically as populated line reporting does not keep them in direct communication with the strong 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 last would take Krasnow's position came as a blow to her morale. Lewis may have been capable and ideal for the work yet the reality that Kransnow's departure would make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Task Instability: Fear and also instability can be identified as 2 significant concerns that Lewis would certainly be dealing with especially as the merging has now be cancelled and also 2 senior executives of the advertising department would certainly be leaving. The whole duty of the division would be dropping on Lewis's shoulders that would certainly not simply be in charge of brining concerning a cultural modification but would additionally need to confirm herself in her brand-new function.

Inappropriate Administration Design of Leader: Lewis's administration style as well as its incompatibility with the advertising department's role can likewise be seen as an OB difficulty specifically as she has actually been utilized to dealing with concerns in the operations department where personnel are shown to focus on procedures as well as get them. The advertising department on the various other hand can be seen as a group of people that are utilized to being supported by Krasnow that focused a lot more on output than processes.

Interdepartmental Arguments: Interdepartmental differences between three departments, advertising and marketing, merchandizing and operations specifically over the allocation of the advertising mix can be determined as one more OB problem. The advertising department does not share the exact same vision as the other 2 divisions concerning the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and procedures departments do not agree over the marketing mix allotment amongst one another either.

Disintegration in Marketing Department: Disintegration in between the marketing and advertising departments can be recognized as an additional OB problem which might need further interest. The truth that the advertising and marketing sections in the marketing department are detached is avoiding both departments from acquiring from each various other's experience and know-how. Integration of advertising and marketing with merchandising and operations would become harder if the marketing department itself is degenerated which can be an additional potential OB worry.

The Valuation And Financing Of Lady M Confections Analysis

Numerous theories have been made use of to explain the conditions to get additional quality regarding the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors think that juniors are passive and lazy, have little passion and also resist change. The scenario at The Valuation And Financing Of Lady M Confections is not completely following Concept X, it can be seen that new hires are finding this atmosphere instead stressful which might ultimately lead to a better disposition of the administration towards Concept X. Also while examining Lewis's monitoring style, theory X may have been ideal in the procedures division to some degree yet the Marketing division would call for reliance on Theory Y in order to obtain the creative thinking and originality from the teams.

Tuckman's Synergy Concept: As far as Lewis's problem about bringing consistency between the marketing and advertising department is worried, this would initially cause conflict as talked about by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, throughout the preliminary phase of team growth, people might not bond, as they are busy locating their place in the group. By combining the marketing and advertising division's work, there might coincide first disconnect which can cause the 2nd stage of 'storming' where the teams test each other. Nevertheless, it is just throughout the third stage or 'norming' when they would certainly come together to share ideas prior to the team can produce synergy in the 4th phase 'performing'.

When people are provided with change, they enter stage one as well as so there might be feelings like unhappiness, uncertainty, frustration, anger, worry, denial and disorientation.The situation at the marketing department of The Valuation And Financing Of Lady M Confections is similar so Lewis can get comfy with the idea that it is not remarkable behavior. It is throughout this phase that Lewis will have to give advice to the division so that they can find a feeling of direction. It can be seen how Krasnow has actually currently made this shift simpler by making Lewis get entailed in the division a year prior to his real separation.
Vrio Analysis
Maslow's Demand hierarchy: The OB problem related to insecurity at the work environment has actually been activated first of all by the modification in administration and secondly by the reality that the merging will certainly no more be started. Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has talks about the importance of 'security needs as being a lower degree requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel safe and out of danger' goes to the second level of needs. Prior to a staff member can be made to develop emotionally, he requires to have his 'Physical 'and 'Safety and security' needs met. This indicates that unless the employees are made to really feel secure about their present employment status in The Valuation And Financing Of Lady M Confections they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for The Valuation And Financing Of Lady M Confections Case Study

Ramification of Analysis.

The OB analysis has considered numerous theories to understand exactly how to manage the present situation available. The adhering to three alternatives have been proposed to aid Lewis deal with the business challenges in the marketing division. Each of these choices has been recommended for relieving the change required to bring the marketing department in accordance with the needs of the marketplace and also for making the cultural change that would follow once the existing leader leaves.

Integration of marketing and advertising features. Separating Adverting and also Manufacturing features. Assimilation of Advertising And Marketing with Operations.

Evaluation of Alternatives.

Judith Shapiro who has actually earlier been spoken with by Lewis throughout the earlier merger days has expertise in business-to-business advertising and marketing along with company and also retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to handle both advertising as well as advertising and marketing features.

The benefit of this approach is that it will incorporate the two features while decreasing the demand for employing an extra resource for marketing. In addition to this, Lewis would certainly be heading the advertising and marketing division and also regardless her substitute would be needed for the present function that she is performing. The negative aspect of this choice is that exterior hiring might produce resentment from internal employees that might be considering the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and also Production: Provided the affordable pressures as well as top quality job called for from the advertising agency, it is advised that Lewis must allow the production unit to be a different feature from the marketing system. Because the majority of ad agency had these 2 functions as different systems, it makes even more sense to comply with the norm. Both features might be able to focus on their core turns on a lot more efficiently. The drawback of this approach would certainly be that additional prices would have to be borne for establishing up separate manufacturing features. In addition to this, a production head may need to be employed which could raise expenses for the company.

Integration of Advertising with Operations: Because Lewis is currently taking treatment of the marketing as well as operations divisions simultaneously; it makes feeling to incorporate the 2 features considering that she has been effectively taking treatment of both ends. The fact that Lewis has to adapt her management design for the advertising division suggests that these 2 departments would certainly be culturally varied.


An evaluation of the three choices suggests that combination of advertising and operations would certainly not be a viable action due to the large differences in between the two departments in spite of the truth that currently Lewis is handling both. While splitting up of the production function might have been a favorable step for the marketing division, the fact that it would certainly imply positioning a third feature under Lewis's wing means this should be prevented.

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

Marketing and advertising functions would be merged.

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

Production function will continue to be part of advertising under marketing feature.

Lewis will certainly divide herself from operations.

An autonomous management style with staff member empowerment will certainly be used in marketing department.

Open up door plan and emphasis on cross department interaction will be focused on getting rid of dissonance.

Contingency plan.

If the integration does not exercise as planned, a contingency plan would certainly follow which would certainly separate the production function from the advertising function to lower the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising department without an SVP. In that case the manufacturing function will definitely be divided by placing it under an SVP production.