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Travelers Mortgage Securities Cmo Case Study Solution

CASE ANALYSIS

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Travelers Mortgage Securities Cmo Case Study Solution

Background and Facts

Travelers Mortgage Securities Cmo an office products retailer for little as well as medium sized organisations has lately been associated with planning for a merger with its competitor Home Deport, which has affected effectiveness levels in departmentswith the senior supervisor associated with legal issues put forth by the government Profession Payment. With the Marketing Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the future. With challenges in the form of a potential social modification as well as low staff member morale, the organization wants a complete reengineering effort at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The potential social modification at the advertising division of Travelers Mortgage Securities Cmo is raising uncertainty in the workplace leading to numerous challenges for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting strategic choices given that Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Profession Commission's treatment while doing so. Offered the fact that the store has a global existence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations might have the ability to affect performance or critical goals. Federal Profession Payment's antitrust fit against the merger took up beneficial time of the company's senior administration suggesting that 'political' factors can have major implications for a worldwide business.

Economic Factors: Financial factors such as the introduction of small businesses in the worldwide circumstance suggest that Travelers Mortgage Securities Cmo is flourishing in an atmosphere where there is prospective development of businesses. Fact that shop customers are primarily looking for workplace supplies for home offices recommends that the market has an increasing fad of entrepreneurs and residence based services.

Social factors: Social trends in the economic situation show that clients are seeking benefit along with appealing rates. Marketing research shows how the consumer for Travelers Mortgage Securities Cmo does not have recognition about discovering options which can provide a mix of benefit as well as low costs.

Technical factors: Technology plays a vital role in Travelers Mortgage Securities Cmo's business method specifically as the organization is piloting Technology facilities which would offer modern technology sales as well as support in the type of memory upgrades, outer installments. (Summary of PARASITE in appendix 2).

OB Issues and also Manifestations.

Numerous underlying Organizational Behavior concerns can be seen in Travelers Mortgage Securities Cmo's case as highlighted in this section.

Apprehensions concerning cultural adjustment: There is concern concerning a social adjustment that would certainly occur once Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with a lot of the employee already showing unhappiness over this possible step. This expected modification has produced anxiety in the work environment which has actually been paired with the previous tension of preparing the firm for a possible merging with Home Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is scarcity of employees that can match the difficult environment of a hectic company. Not only does this cause problem in finding the best people, it puts anxiety on new hires as can not stand up to the pace as well as pressure that the company expects them to bear.

Dual Coverage Lines: Beginners locate this business society troublesome as well as difficult to handle especially as populated line partnerships are suggested to be weaker as a whole as well as objective setting as well as efficiency examination is still done by the strong line supervisor. This means that newcomers can lose clarity regarding their corresponding roles and also objectives specifically as populated line reporting does not keep them in direct interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles although it had actually been speculated that the last would certainly take Krasnow's setting came as an impact to her morale. Lewis might have been qualified and also appropriate for the job yet the fact that Kransnow's separation would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Job Insecurity: Worry and also insecurity can be identified as 2 significant worries that Lewis would be taking care of especially as the merging has now be cancelled and 2 senior executives of the advertising division would certainly be leaving. The whole duty of the department would be dropping on Lewis's shoulders who would not just be in charge of brining regarding a social change however would additionally need to show herself in her new function.

Incompatible Monitoring Style of Leader: Lewis's monitoring style as well as its conflict with the advertising department's duty can likewise be seen as an OB obstacle especially as she has actually been used to dealing with issues in the procedures division where workers are instructed to concentrate on processes as well as get them. The advertising and marketing division on the various other hand can be viewed as a group of individuals that are utilized to being supported by Krasnow who concentrated more on result than processes.

Interdepartmental Disputes: Interdepartmental disagreements in between three divisions, advertising and marketing, merchandizing and also operations respectively over the appropriation of the marketing mix can be determined as an additional OB problem. The advertising and marketing division does not share the exact same vision as the other 2 divisions regarding the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and also operations divisions do not concur over the marketing mix allowance amongst one another either.

Disintegration in Advertising And Marketing Division: Fragmentation in between the advertising and marketing divisions can be identified as one more OB issue which might need additional interest. The fact that the marketing and advertising areas in the advertising division are disconnected is avoiding both departments from acquiring from each other's experience and also competence. Assimilation of marketing with retailing and also procedures would end up being harder if the advertising department itself is degenerated which can be another prospective OB worry.

Travelers Mortgage Securities Cmo Analysis

Different theories have actually been used to clarify the scenarios to obtain more quality concerning the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers think that staffs are passive and lazy, have little aspiration and resist change. The situation at Travelers Mortgage Securities Cmo is not totally complying with Concept X, it can be seen that new hires are locating this environment rather stressful which might eventually lead to a better inclination of the administration in the direction of Theory X. Even while assessing Lewis's management style, theory X may have been ideal in the procedures division to some degree but the Advertising and marketing division would certainly require reliance on Concept Y in order to get the creativity and originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's worry regarding bringing harmony in between the marketing and advertising division is concerned, this would initially result in clash as reviewed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, during the first phase of group advancement, people might not bond, as they are active locating their place in the team. By incorporating the advertising and marketing department's job, there may be the same initial detach which might bring about the second stage of 'storming' where the groups test each other. Nonetheless, it is just throughout the third stage or 'norming' when they would certainly collaborate to share ideas before the team can produce harmony in the fourth stage 'carrying out'.

Bridges' Change Design: According To William Bridge's concept (appendix 4), people are rather uncomfortable with adjustment, which is apparent by the circumstance at Travelers Mortgage Securities Cmo The situation can be seen as a regular course of life if is researched as per Bridge's theory where he discusses that individuals undergo 3 stages of transition when they experience adjustment. 'End, shedding as well as Releasing', The Neutral Area and 'The New Starting' (Bridges, 2004). When individuals exist with adjustment, they enter phase one and so there might be emotions like sadness, unpredictability, stress, rage, worry, denial as well as disorientation.The circumstance at the marketing division of Travelers Mortgage Securities Cmo is similar so Lewis can get comfy with the idea that it is not extraordinary behavior. In the 2nd stage, there may be a demand to connect the space between the brand-new and also old culture so Lewis might have to face this ordeal when Krasnow leaves. There might be reduced spirits and also low performance at this phase which ought to not be taken as a setback. It is throughout this phase that Lewis will certainly need to give guidance to the department to ensure that they can locate a sense of direction. It can be seen exactly how Krasnow has currently made this change simpler by making Lewis obtain associated with the division a year before his real departure. As per Bridges' Design, stage three will produce visibility to learning, High power and also commitment as people will accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has discusses the importance of 'safety requires as being a reduced degree demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel protected as well as out of risk' is at the second degree of demands. Before an employee can be made to create emotionally, he needs to have his 'Physical 'and also 'Security' requires satisfied.

SWOT Analysis for Travelers Mortgage Securities Cmo Case Study



Effects of Analysis.

The OB analysis has actually checked out numerous theories to comprehend just how to cope with the existing scenario at hand. The following three alternatives have actually been proposed to help Lewis take care of the organizational difficulties in the advertising and marketing division. Each of these options has been suggested for alleviating the transition required to bring the advertising division in line with the requirements of the marketplace and also for making the social change that would adhere to once the existing leader leaves.

Integration of advertising and marketing features. Separating Adverting and Manufacturing features. Integration of Marketing with Procedures.

Analysis of Alternatives.

Combination of Advertising & Advertising Functions: The internal advertising and marketing company of Travelers Mortgage Securities Cmo is already strength for the organization in terms of conserving up on overheads connected to advertising and also promo. Given that no brand-new employment has been done after Bridget Cole's separation with the reporting line being directly assigned to Krasnow for the marketing function, this is a beneficial opportunity for incorporating the marketing and advertising functions. Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merger days has expertise in business-to-business advertising together with firm and retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing functions.

The benefit of this approach is that it will integrate the two features while minimizing the requirement for hiring an additional resource for advertising and marketing. Along with this, Lewis would certainly be heading the advertising and marketing division and also regardless her substitute would certainly be needed for the present role that she is carrying out. The downside of this alternative is that external hiring may produce animosity from internal workers that may be considering the setting of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and also Production: Given the affordable stress as well as high top quality job needed from the advertising and marketing firm, it is suggested that Lewis ought to permit the production system to be a separate function from the marketing system. Given that a lot of marketing firms had these 2 functions as separate units, it makes even more feeling to comply with the norm.

Integration of Advertising with Procedures: Since Lewis is currently taking care of the advertising and marketing as well as operations divisions at the same time; it makes sense to incorporate the 2 features given that she has actually been effectively taking treatment of both ends. The fact that Lewis has to adapt her administration style for the advertising and marketing division suggests that these 2 departments would certainly be culturally diverse.

Suggestion.



An evaluation of the three alternatives indicates that integration of advertising and marketing and procedures would certainly not be a possible step due to the huge distinctions between the two divisions in spite of the truth that presently Lewis is handling both. While splitting up of the production function might have been a positive move for the advertising division, the reality that it would certainly suggest putting a third function under Lewis's wing indicates this need to be avoided.

Action Plan.
Recommendation
Lewis will certainly take over the duty of EVP Advertising and 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 function will certainly remain component of advertising and marketing under marketing function.

Lewis will certainly divide herself from operations.

An autonomous management design with employee empowerment will be utilized in marketing division.

Open door plan and emphasis on cross department communication will certainly be targeted at removing disharmony.

Backup strategy.

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