To Grexit Or Not Politics And Greeces Sovereign Debt Crisis Case Study Analysis


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Background and Facts

To Grexit Or Not Politics And Greeces Sovereign Debt Crisis an office products merchant for little and also medium sized services has actually just recently been associated with preparing for a merger with its rival Residence Deport, which has actually impacted effectiveness degrees in departmentswith the senior supervisor involved in lawful complications put forth by the federal Profession Compensation. With the Advertising and marketing Head advancing the news of his departure from the company in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the future. With obstacles in the type of a prospective cultural adjustment and low employee morale, the company wants a full reengineering effort at the marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The possible social change at the advertising division of To Grexit Or Not Politics And Greeces Sovereign Debt Crisis is boosting unpredictability in the workplace causing numerous challenges for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing calculated decisions given that Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Profession Payment's intervention in the process. Provided the truth that the shop has a global visibility with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries might be able to affect efficiency or tactical objectives. Federal Trade Payment's antitrust match versus the merging took up beneficial time of the company's elderly administration suggesting that 'political' factors can have major effects for a global service.

Economic Factors: Economic factors such as the introduction of small companies in the worldwide circumstance suggest that To Grexit Or Not Politics And Greeces Sovereign Debt Crisis is growing in an environment where there is potential growth of businesses. Along with this, reality that store customers are mostly trying to find office products for home offices recommends that the market has an increasing trend of business owners and also home based organisations.

Social factors: Social fads in the economic situation reveal that customers are seeking benefit in addition to attractive costs. Market research demonstrates how the client for To Grexit Or Not Politics And Greeces Sovereign Debt Crisis does not have awareness concerning finding services which can use a combination of ease and also low costs.

Technical factors: Innovation plays a vital role in To Grexit Or Not Politics And Greeces Sovereign Debt Crisis's service approach especially as the organization is piloting Technology centers which would certainly offer modern technology sales as well as assistance in the type of memory upgrades, outer setups. (Summary of INSECT in appendix 2).

OB Issues and Manifestations.

Numerous underlying Business Habits concerns can be seen in To Grexit Or Not Politics And Greeces Sovereign Debt Crisis's case as highlighted in this section.

Uneasiness about cultural adjustment: There is worry concerning a social change that would certainly occur once Todd Krasnow leaves from his placement as the Executive Vice President of Advertising with the majority of the employee already showing unhappiness over this possible action. This predicted change has produced stress in the office which has actually been coupled with the past stress and anxiety of preparing the firm for a potential merger with House Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is lack of personnel that can match the difficult environment of a fast-paced company. Not only does this cause difficulty in locating the right people, it puts tension on brand-new hires as can not withstand the speed and also stress that the organization anticipates them to bear.

Dual Coverage Lines: Novices locate this business culture difficult and difficult to manage especially as dotted line partnerships are indicated to be weak generally and also unbiased setup and also efficiency analysis is still done by the solid line manager. This suggests that beginners could lose clearness about their corresponding duties and goals specifically as populated line coverage does not maintain them in straight interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles even though it had actually been speculated that the last would certainly take Krasnow's placement came as an impact to her morale. Lewis might have been capable and ideal for the work yet the truth that Kransnow's separation would make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Anxiety & Work Insecurity: Concern and insecurity can be determined as 2 significant problems that Lewis would be dealing with particularly as the merging has actually currently be terminated as well as two senior execs of the marketing division would be leaving. The whole obligation of the department would certainly be falling on Lewis's shoulders who would certainly not simply be in charge of brining about a social change yet would additionally need to prove herself in her new role.

Incompatible Administration Design of Leader: Lewis's monitoring design and also its incompatibility with the advertising division's role can also be viewed as an OB challenge particularly as she has actually been made use of to dealing with issues in the procedures department where personnel are taught to concentrate on procedures as well as get them right. The advertising department on the other hand can be seen as a team of people who are used to being nurtured by Krasnow who concentrated more on output than processes.

Interdepartmental Arguments: Interdepartmental arguments between three divisions, advertising, merchandizing and also operations respectively over the allotment of the advertising and marketing mix can be recognized as one more OB worry. Although the advertising division does not share the very same vision as the other 2 departments relating to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and also operations divisions do not concur over the advertising and marketing mix appropriation amongst one another either.

Fragmentation in Advertising And Marketing Department: Fragmentation between the marketing and advertising departments can be identified as another OB issue which can require further focus. The truth that the marketing and advertising sections in the advertising division are separated is preventing both divisions from acquiring from each various other's experience as well as knowledge. Integration of marketing with merchandising as well as operations would certainly become more difficult if the advertising and marketing division itself is broken down which can be one more possible OB issue.

To Grexit Or Not Politics And Greeces Sovereign Debt Crisis Analysis

Numerous concepts have actually been made use of to clarify the scenarios to obtain further clarity about the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers think that subordinates are easy and careless, have little aspiration and also withstand modification. The scenario at To Grexit Or Not Politics And Greeces Sovereign Debt Crisis is not totally following Theory X, it can be seen that new hires are locating this setting instead stressful which may eventually lead to a greater disposition of the administration in the direction of Theory X. Also while analyzing Lewis's administration design, concept X might have been suitable in the operations division to some level but the Marketing division would certainly call for dependence on Theory Y in order to obtain the creative thinking and also originality from the teams.

Tuckman's Team effort Theory: As far as Lewis's problem concerning bringing harmony between the advertising and marketing division is concerned, this would originally result in conflict as reviewed by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, during the first phase of group advancement, individuals may not bond, as they are busy discovering their location in the team. By integrating the marketing and advertising division's work, there may be the same initial detach which might lead to the second phase of 'storming' where the groups test each other. However, it is only during the 3rd stage or 'norming' when they would certainly collaborate to share ideas before the group can cause harmony in the fourth stage 'carrying out'.

Bridges' Change Design: As per William Bridge's theory (appendix 4), people are rather unpleasant with modification, which is obvious by the situation at To Grexit Or Not Politics And Greeces Sovereign Debt Crisis The circumstance can be viewed as a normal training course of life if is studied as per Bridge's concept where he describes that people undergo three stages of transition when they experience modification. 'End, losing as well as Releasing', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When individuals are presented with adjustment, they get in phase one and so there may be emotions like unhappiness, unpredictability, frustration, temper, fear, rejection and also disorientation.The situation at the advertising and marketing division of To Grexit Or Not Politics And Greeces Sovereign Debt Crisis is comparable so Lewis can get comfortable with the concept that it is not extraordinary habits. In the 2nd phase, there may be a requirement to connect the gap in between the new and old society so Lewis may have to encounter this challenge as soon as Krasnow leaves. There might be reduced spirits and low efficiency at this stage which must not be taken as an obstacle. It is throughout this stage that Lewis will need to give advice to the division to ensure that they can find an orientation. It can be seen just how Krasnow has actually currently made this transition easier by making Lewis obtain associated with the department a year prior to his real departure. As per Bridges' Model, phase 3 will cause openness to discovering, High power and dedication as individuals will certainly welcome the change (Bridges, 2004).
Vrio Analysis
Maslow's Requirement power structure: The OB concern pertaining to insecurity at the work environment has actually been caused to start with by the adjustment in management and secondly by the fact that the merger will certainly no longer be started. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has reviews the importance of 'safety and security needs as being a reduced degree demand of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the need to feel secure as well as unharmed' is at the 2nd level of requirements. Before an employee can be made to create emotionally, he needs to have his 'Physiological 'as well as 'Security' needs met. This indicates that unless the workers are made to feel protected regarding their current work status in To Grexit Or Not Politics And Greeces Sovereign Debt Crisis they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for To Grexit Or Not Politics And Greeces Sovereign Debt Crisis Case Study

Effects of Analysis.

The OB analysis has actually looked at various concepts to comprehend just how to deal with the existing circumstance handy. The following 3 alternatives have been recommended to aid Lewis deal with the organizational difficulties in the marketing division. Each of these alternatives has been suggested for alleviating the shift needed to bring the advertising division in accordance with the needs of the market as well as for making the cultural adjustment that would certainly adhere to as soon as the present leader leaves.

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

Examination of Alternatives.

Integration of Marketing & Advertising And Marketing Functions: The internal advertising firm of To Grexit Or Not Politics And Greeces Sovereign Debt Crisis is already toughness for the company in regards to conserving up on overheads connected to marketing and promotion. Since no new employment has been done after Bridget Cole's separation with the coverage line being straight designated to Krasnow for the advertising and marketing feature, this is a beneficial chance for integrating the marketing and advertising features. Judith Shapiro who has earlier been interviewed by Lewis during the earlier merger days has experience in business-to-business advertising along with company as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both advertising and marketing functions.

The advantage of this approach is that it will certainly integrate both features while reducing the requirement for working with an added source for marketing. Lewis would be heading the advertising and marketing division and in any case her substitute would certainly be needed for the present function that she is executing. The disadvantage of this alternative is that exterior hiring might cause animosity from internal employees who might be looking at the setting of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting as well as Production: Offered the affordable stress as well as high top quality job needed from the advertising and marketing agency, it is suggested that Lewis ought to permit the manufacturing device to be a different function from the advertising device. Considering that a lot of advertising firms had these two features as separate units, it makes more sense to comply with the standard.

Assimilation of Advertising with Operations: Given that Lewis is already looking after the advertising and marketing and procedures departments at the same time; it makes sense to integrate the two features considering that she has been efficiently looking after both ends. The reality that both departments currently have significant differences over appropriation of resources recommends that this assimilation might be able to produce consistency specifically as Lewis would certainly be heading both ends.However there are numerous disadvantages of this action especially as it would place too much worry over Lewis's shoulders. The reality that Lewis needs to adjust her administration style for the advertising and marketing division recommends that these two departments would be culturally diverse. Lewis may not be able to apply one type of leadership design to both departments which might result in inefficiency in either one of the two functions.


An evaluation of the three alternatives indicates that combination of advertising and also operations would not be a possible relocation due to the large differences between the 2 divisions despite the reality that presently Lewis is managing both. While splitting up of the production function might have been a desirable step for the advertising and marketing department, the reality that it would suggest placing a third function under Lewis's wing means this must be prevented.

Activity Plan.
Lewis will take over the function of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

Manufacturing feature will certainly stay part of advertising under advertising and marketing feature.

Lewis will certainly separate herself from operations.

An autonomous leadership design with worker empowerment will be used in marketing division.

Open up door policy and also focus on cross department interaction will certainly be targeted at eliminating discord.

Contingency plan.

If the combination does not exercise as planned, a contingency plan would comply with which would divide the manufacturing function from the advertising function to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising division without an SVP. In that case the production feature will most definitely be divided by placing it under an SVP production.