Menu

Trading Strategies With Options Case Study Help

CASE HELP

Home >> Harvard >> Trading Strategies With Options >>

Trading Strategies With Options Case Study Analysis

Background and Facts

Trading Strategies With Options an office materials merchant for little and moderate sized businesses has recently been involved in preparing for a merging with its competitor Residence Deport, which has influenced performance levels in departmentswith the elderly manager involved in legal problems put forth by the government Trade Compensation. With the Marketing Head advancing the news of his separation from the business in one year, Jeannie Lewis, the present head of operations has been asked to take the function in the future. With obstacles in the kind of a possible cultural change and low staff member spirits, the organization requires a complete reengineering initiative at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible cultural change at the advertising and marketing division of Trading Strategies With Options is boosting uncertainty in the working environment bring about various difficulties for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting critical decisions considering that Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Trade Payment's intervention in the process. Given the truth that the shop has a global visibility with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these nations may be able to influence performance or calculated goals. Federal Trade Compensation's antitrust suit against the merging occupied important time of the organization's senior management suggesting that 'political' factors can have significant implications for a global service.

Economic Factors: Economic factors such as the development of small companies in the global circumstance suggest that Trading Strategies With Options is thriving in a setting where there is potential development of businesses. Fact that shop clients are mostly looking for workplace supplies for house offices suggests that the market has a rising pattern of entrepreneurs and also house based companies.

Social factors: Social patterns in the economy show that customers are trying to find convenience along with appealing rates. Market research demonstrates how the customer for Trading Strategies With Options does not have understanding regarding locating solutions which can provide a mix of comfort as well as low costs.

Technological factors: Innovation plays a crucial role in Trading Strategies With Options's service method specifically as the organization is piloting Innovation centers which would certainly supply innovation sales and assistance in the type of memory upgrades, peripheral installments. (Recap of INSECT in appendix 2).

OB Issues and Effects.

Several underlying Organizational Habits concerns can be seen in Trading Strategies With Options's case as highlighted in this section.

Concerns concerning cultural modification: There is concern regarding a social change that would certainly occur once Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with most of the staff members currently showing discontent over this prospective step. This anticipated modification has produced anxiety in the work environment which has been combined with the past anxiety of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is scarcity of workers that can match the demanding atmosphere of a hectic company. Not only does this result in problem in finding the right individuals, it places stress and anxiety on brand-new hires as can not endure the pace and stress that the organization expects them to bear.

Double Coverage Lines: Novices find this business culture cumbersome as well as hard to manage specifically as populated line relationships are indicated to be weak generally and unbiased setup and performance evaluation is still done by the strong line manager. This means that newcomers can lose quality regarding their particular duties and also purposes especially as dotted line coverage does not keep them in direct interaction with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles despite the fact that it had actually been guessed that the last would take Krasnow's position came as a blow to her morale. Lewis might have been capable as well as suitable for the task however the reality that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from services.

Worry & Work Instability: Fear and instability can be determined as 2 significant worries that Lewis would certainly be handling especially as the merging has now be terminated and also 2 senior execs of the advertising and marketing department would certainly be leaving. The entire obligation of the department would certainly be falling on Lewis's shoulders who would not just be in charge of brining about a social adjustment yet would also need to verify herself in her new role.

Incompatible Management Style of Leader: Lewis's administration design and also its conflict with the marketing division's duty can additionally be viewed as an OB difficulty specifically as she has actually been used to dealing with problems in the procedures department where workers are taught to concentrate on processes and get them right. The marketing department on the various other hand can be viewed as a group of individuals that are made use of to being supported by Krasnow that focused a lot more on output than procedures.

Interdepartmental Disagreements: Interdepartmental arguments in between three departments, advertising and marketing, merchandizing and also procedures respectively over the allocation of the advertising mix can be determined as one more OB concern. The marketing department does not share the same vision as the various other two divisions pertaining to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and also procedures divisions do not agree over the advertising mix allocation amongst one another either.

Disintegration in Marketing Division: Fragmentation in between the advertising and marketing departments can be determined as another OB issue which might require further focus. The reality that the marketing and advertising sections in the marketing division are disconnected is protecting against both departments from acquiring from each other's experience and also proficiency. Integration of advertising and marketing with retailing as well as operations would end up being harder if the advertising division itself is disintegrated which can be an additional possible OB issue.

Trading Strategies With Options Analysis

Numerous concepts have been used to explain the circumstances to get more clarity regarding the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, most supervisors believe that subordinates are passive and lazy, have little aspiration and also withstand change. The hard variation of this theory stressed coercion, limited controls, threats as well as penalties. Gradually it creates low performance, subtle sabotage as well as competition (Offer, 2003). The circumstance at Trading Strategies With Options is not totally following Concept X, it can be seen that brand-new hires are finding this setting instead difficult which might at some point lead to a higher inclination of the management in the direction of Theory X. Based on McGregor's promoted view, which he called Theory Y, the crucial task of the monitoring is to prepare organizational problems so that individuals can attain their own objectives best by routing their efforts in the direction of business incentives. If people locate no complete satisfaction in their job, the management would have little choice however to rely on concept X and also outside control (Offer, 2003). Even while assessing Lewis's management style, concept X might have been suitable in the procedures department somewhat however the Marketing division would call for reliance on Theory Y in order to get the imagination and also creativity from the teams.

Tuckman's Team effort Concept: Regarding Lewis's issue concerning bringing consistency in between the advertising and marketing division is worried, this would initially bring about conflict as gone over by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, during the initial stage of team growth, people may not bond, as they are active locating their place in the group. By integrating the advertising and marketing department's work, there may coincide first disconnect which could lead to the second phase of 'storming' where the teams test one another. Nonetheless, it is only throughout the 3rd stage or 'norming' when they would certainly collaborate to share suggestions prior to the group can produce synergy in the 4th phase 'executing'.

When people are offered with adjustment, they get in stage one as well as so there may be emotions like sadness, unpredictability, frustration, temper, fear, denial and disorientation.The situation at the advertising department of Trading Strategies With Options is similar so Lewis can get comfortable with the idea that it is not remarkable habits. It is throughout this phase that Lewis will certainly have to offer advice to the department so that they can discover a feeling of direction. It can be seen exactly how Krasnow has actually already made this shift much easier by making Lewis get entailed in the department a year prior to his real separation.
Vrio Analysis
Maslow's Need hierarchy: The OB issue related to insecurity at the workplace has been caused firstly by the modification in administration as well as secondly by the fact that the merger will certainly no longer be initiated. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has goes over the significance of 'safety and security needs as being a lower degree need of a human for triggering inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the requirement to really feel protected as well as untouched' is at the 2nd degree of requirements. Before a worker can be made to develop psychologically, he needs to have his 'Physical 'and 'Safety and security' needs satisfied. This shows that unless the workers are made to really feel safe concerning their present employment status in Trading Strategies With Options they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Trading Strategies With Options Case Study



Ramification of Analysis.

The OB analysis has considered different concepts to understand just how to cope with the existing situation available. The complying with three alternatives have been proposed to aid Lewis take care of the business difficulties in the marketing department. Each of these alternatives has been suggested for alleviating the change required to bring the advertising and marketing division in line with the needs of the marketplace and also for making the social modification that would follow once the current leader leaves.

Integration of marketing and advertising functions. Dividing Adverting as well as Manufacturing functions. Assimilation of Marketing with Procedures.

Analysis of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis during the earlier merger days has competence in business-to-business advertising and marketing along with firm as well as retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both advertising and marketing and also marketing functions.

The advantage of this strategy is that it will integrate the two features while decreasing the demand for employing an extra source for advertising and marketing. In addition to this, Lewis would be heading the marketing division as well as in any case her substitute would certainly be needed for the existing duty that she is doing. The negative aspect of this alternative is that exterior hiring might cause resentment from inner workers who may be looking at the setting of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Manufacturing: Provided the competitive stress as well as premium quality job called for from the ad agency, it is suggested that Lewis needs to enable the production device to be a separate feature from the advertising system. Since many advertising agencies had these two functions as different systems, it makes even more feeling to adhere to the norm. In addition to this, both features may be able to focus on their core triggers much more efficiently. The downside of this method would be that extra prices would have to be birthed for establishing up different production features. Along with this, a production head may need to be worked with which can enhance overheads for the organization.

Integration of Marketing with Workflows: Since Lewis is currently dealing with the marketing as well as operations departments all at once; it makes good sense to incorporate the two features because she has been effectively taking care of both ends. The reality that the two departments currently have significant differences over allotment of sources suggests that this combination may have the ability to cause harmony particularly as Lewis would be heading both ends.However there are numerous drawbacks of this relocation especially as it would certainly put too much burden over Lewis's shoulders. The truth that Lewis needs to adjust her monitoring design for the marketing division recommends that these 2 departments would be culturally diverse. Along with this, Lewis may not be able to use one type of leadership style to both departments which could lead to ineffectiveness in either among both features.

Suggestion.



An examination of the three options shows that integration of advertising and marketing and also operations would not be a feasible action due to the large distinctions in between the two departments although that currently Lewis is dealing with both. While separation of the production feature might have been a positive relocation for the marketing division, the truth that it would suggest placing a 3rd function under Lewis's wing suggests this must be prevented. The integration of the marketing department is the very best option in regards to obtaining the optimum arise from the division. An activity plan for this option is discussed listed below.

Action Plan.
Recommendation
Lewis will take control of the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

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

Manufacturing function will certainly continue to be part of marketing under advertising function.

Lewis will separate herself from operations.

A democratic leadership style with worker empowerment will certainly be utilized in advertising and marketing department.

Open door policy as well as emphasis on cross department interaction will certainly be targeted at removing dissonance.

Contingency strategy.

If the assimilation does not exercise as intended, a backup strategy would certainly comply with which would certainly divide the manufacturing feature from the marketing feature to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the production feature will most definitely be separated by putting it under an SVP production.