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Travelers Mortgage Securities Cmo Case Study Analysis

Background and Facts

Travelers Mortgage Securities Cmo an office products retailer for little as well as moderate sized organisations has recently been associated with planning for a merging with its competitor Residence Deport, which has actually influenced effectiveness levels in departmentswith the senior manager associated with legal problems put forth by the government Profession Payment. With the Advertising and marketing Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the future. With challenges in the form of a prospective social modification and also reduced employee spirits, the company needs a complete reengineering initiative at the marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising and marketing division of Travelers Mortgage Securities Cmo is increasing uncertainty in the workplace bring about various obstacles for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting strategic choices given that Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Trade 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 countries might be able to influence performance or tactical goals. Federal Profession Commission's antitrust match versus the merging used up important time of the organization's elderly monitoring suggesting that 'political' factors can have severe effects for a worldwide organisation.

Economic Factors: Economic factors such as the emergence of small businesses in the global situation recommend that Travelers Mortgage Securities Cmo is prospering in an atmosphere where there is potential development of services. Truth that store consumers are primarily looking for office supplies for home offices suggests that the market has a rising fad of entrepreneurs and residence based companies.

Social factors: Social patterns in the economic climate reveal that consumers are trying to find comfort in addition to appealing costs. Marketing research shows how the consumer for Travelers Mortgage Securities Cmo lacks awareness regarding discovering services which can use a mix of benefit and also affordable.

Technical factors: Technology plays a vital role in Travelers Mortgage Securities Cmo's company approach especially as the organization is piloting Modern technology facilities which would certainly provide innovation sales and assistance in the kind of memory upgrades, outer installments. (Summary of PARASITE in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Organizational Habits issues can be seen in Travelers Mortgage Securities Cmo's case as highlighted in this area.

Apprehensions regarding social change: There is apprehension about a social adjustment that would certainly take place when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with the majority of the employee currently revealing discontent over this potential step. This anticipated adjustment has produced stress and anxiety in the work environment which has been coupled with the previous stress of preparing the company for a possible merging with Home Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is lack of workers that can match the stressful atmosphere of a busy company. Not just does this result in difficulty in locating the right individuals, it places tension on new hires as can not hold up against the rate and also pressure that the organization expects them to birth.

Double Reporting Lines: Beginners locate this organizational culture troublesome as well as tough to cope with specifically as populated line partnerships are indicated to be weaker in general as well as objective setting and also performance evaluation is still done by the strong line manager. This suggests that newcomers could shed clarity concerning their respective duties as well as goals specifically as dotted line coverage does not keep them in direct interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles despite the fact that it had been hypothesized that the last would certainly take Krasnow's setting came as a blow to her morale. Lewis may have been capable and appropriate for the job however the reality that Kransnow's separation would make Coles a straight report to Lewis may have been the factor for Coles' resignation from services.

Fear & Job Insecurity: Fear and also instability can be determined as 2 significant problems that Lewis would be handling especially as the merging has actually now be cancelled and also two elderly execs of the advertising and marketing department would certainly be leaving. The whole obligation of the division would certainly be falling on Lewis's shoulders that would certainly not just be in charge of brining concerning a cultural adjustment yet would likewise need to verify herself in her new function.

Incompatible Management Design of Leader: Lewis's monitoring design as well as its conflict with the marketing division's function can additionally be seen as an OB obstacle specifically as she has been used to dealing with issues in the operations division where employees are shown to focus on procedures and get them. The marketing department on the other hand can be viewed as a team of people that are utilized to being nurtured by Krasnow that concentrated extra on result than processes.

Interdepartmental Arguments: Interdepartmental differences between three departments, marketing, merchandizing and also procedures respectively over the appropriation of the advertising mix can be identified as one more OB worry. Although the advertising and marketing division does not share the exact same vision as the various other two departments regarding the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing as well as procedures departments do not concur over the marketing mix allotment amongst each other either.

Disintegration in Advertising And Marketing Department: Disintegration between the advertising and marketing departments can be determined as one more OB concern which could need additional focus. The fact that the marketing and advertising areas in the marketing division are detached is protecting against both divisions from getting from each various other's experience and also proficiency. Combination of advertising and marketing with merchandising and procedures would become more difficult if the advertising and marketing division itself is broken down which can be another potential OB problem.

Travelers Mortgage Securities Cmo Analysis

Various theories have actually been utilized to explain the circumstances to obtain further clearness concerning the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that juniors are easy and lazy, have little passion and stand up to modification. The circumstance at Travelers Mortgage Securities Cmo is not completely complying with Concept X, it can be seen that brand-new hires are discovering this environment instead demanding which may ultimately lead to a higher inclination of the management in the direction of Theory X. Even while evaluating Lewis's management style, theory X might have been appropriate in the procedures division to some level however the Marketing division would need reliance on Concept Y in order to obtain the creative thinking and originality from the groups.

Tuckman's Teamwork Theory: As far as Lewis's problem about bringing harmony in between the advertising and marketing department is concerned, this would initially result in contrast as discussed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). Based on Tuckman's theory shown in appendix 3, during the first phase of group advancement, individuals may not bond, as they are active locating their area in the team. By combining the marketing and advertising department's work, there may coincide preliminary disconnect which might result in the 2nd stage of 'storming' where the teams challenge one another. However, it is just during the 3rd stage or 'norming' when they would certainly integrate to share ideas prior to the group can produce synergy in the fourth stage 'carrying out'.

Bridges' Change Version: Based On William Bridge's concept (appendix 4), people are quite uncomfortable with change, which is apparent by the circumstance at Travelers Mortgage Securities Cmo The scenario can be seen as a typical program of life if is researched based on Bridge's concept where he explains that individuals undergo 3 stages of transition when they experience change. 'Ending, shedding and Letting go', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When people exist with modification, they get in phase one and so there may be feelings like sadness, uncertainty, aggravation, anger, concern, rejection and also disorientation.The situation at the marketing division of Travelers Mortgage Securities Cmo is comparable so Lewis can get comfortable with the idea that it is not amazing actions. In the 2nd phase, there may be a demand to link the gap in between the brand-new and old culture so Lewis might have to face this ordeal as soon as Krasnow leaves. There might be reduced morale and reduced performance at this stage which ought to not be taken as an obstacle. It is during this phase that Lewis will need to give assistance to the department to make sure that they can find a sense of direction. It can be seen just how Krasnow has actually already made this transition much easier by making Lewis obtain associated with the department a year before his actual departure. Based on Bridges' Version, stage 3 will certainly cause visibility to knowing, High power as well as dedication as people will certainly embrace the change (Bridges, 2004).
Vrio Analysis
Maslow's Need hierarchy: The OB issue related to insecurity at the work environment has been activated firstly by the change in administration and also second of all by the reality that the merging will no longer be started. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has discusses the value of 'protection needs as being a reduced level demand of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to feel protected as well as out of danger' goes to the second degree of demands. Prior to a worker can be made to establish psychologically, he needs to have his 'Physiological 'and 'Safety' needs fulfilled. This shows that unless the employees are made to feel safe and secure regarding their current employment condition in Travelers Mortgage Securities Cmo they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Travelers Mortgage Securities Cmo Case Study



Implication of Analysis.

The OB analysis has looked at numerous theories to recognize exactly how to deal with the current situation available. The following three choices have actually been suggested to aid Lewis deal with the organizational obstacles in the marketing division. Each of these alternatives has actually been proposed for easing the shift required to bring the advertising and marketing department according to the requirements of the market as well as for making the social adjustment that would certainly adhere to as soon as the present leader leaves.

Combination of advertising and marketing functions. Dividing Adverting and also Production features. Assimilation of Advertising And Marketing with Procedures.

Examination of Alternatives.

Assimilation of Marketing & Advertising Functions: The internal marketing company of Travelers Mortgage Securities Cmo is currently strength for the company in regards to saving up on overheads connected to marketing and promotion. Since no new employment has actually 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 desirable chance for incorporating the advertising and marketing functions. Judith Shapiro who has actually earlier been talked to by Lewis throughout the earlier merging days has competence in business-to-business advertising and marketing in addition to firm and also retail marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to deal with both advertising and marketing functions.

The advantage of this approach is that it will integrate both functions while reducing the need for hiring an additional resource for advertising. Lewis would certainly be heading the advertising and marketing department as well as in any case her substitute would certainly be required for the present function that she is executing. The drawback of this choice is that external hiring may bring about bitterness from inner workers who may be eying the placement of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Production: Given the affordable pressures and excellent quality job required from the advertising agency, it is recommended that Lewis should allow the production device to be a separate function from the marketing device. Given that many ad agency had these two features as separate units, it makes more feeling to comply with the norm. Both features might be able to focus on their core turns on extra successfully. The negative aspect of this strategy would certainly be that additional prices would certainly have to be borne for establishing up different manufacturing functions. In addition to this, a manufacturing head may have to be worked with which could enhance overheads for the company.

Integration of Advertising with Operations: Considering that Lewis is already taking care of the advertising and marketing and procedures departments all at once; it makes feeling to incorporate the 2 functions because she has been effectively taking care of both ends. The fact that Lewis has to adjust her management style for the marketing department recommends that these 2 divisions would be culturally varied.

Referral.



An analysis of the 3 options suggests that integration of advertising and marketing and also procedures would certainly not be a practical step due to the vast differences between the two divisions in spite of the reality that presently Lewis is dealing with both. While separation of the production feature might have been a positive relocation for the advertising department, the fact that it would certainly mean positioning a third feature under Lewis's wing means this need to be avoided.

Action Plan.
Recommendation
Lewis will take control of the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

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

Lewis will divide herself from procedures.

A democratic leadership design with staff member empowerment will be made use of in marketing department.

Open up door policy as well as emphasis on cross department communication will certainly be focused on getting rid of dissonance.

Contingency strategy.

If the combination does not work out as intended, a contingency plan would adhere to which would separate the production function from the advertising and marketing feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the production feature will absolutely be divided by placing it under an SVP manufacturing.