Twa The Second Bankruptcy Case Study Solution


Home >> Harvard >> Twa The Second Bankruptcy >>

Twa The Second Bankruptcy Case Study Analysis

Background and Facts

Twa The Second Bankruptcy an office materials merchant for little and moderate sized organisations has actually lately been associated with preparing for a merger with its competitor Residence Deport, which has actually affected effectiveness degrees in departmentswith the senior supervisor associated with lawful difficulties put forth 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 operations has actually been asked to take the function in the future. With challenges in the kind of a possible cultural modification and also reduced worker spirits, the organization requires a full reengineering effort at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible social modification at the marketing department of Twa The Second Bankruptcy is raising uncertainty in the working environment bring about numerous difficulties for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in affecting critical decisions since Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Profession Commission's treatment at the same time. Given the fact that the shop has a global visibility with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations might be able to influence performance or strategic objectives. Federal Profession Commission's antitrust match against the merging occupied important time of the company's elderly management recommending that 'political' factors can have severe ramifications for a global business.

Economic Factors: Economic factors such as the introduction of local business in the global scenario suggest that Twa The Second Bankruptcy is thriving in an atmosphere where there is prospective growth of services. Along with this, fact that store customers are mainly looking for office supplies for home offices suggests that the market has an increasing pattern of business owners and also online services.

Social factors: Social patterns in the economic situation show that consumers are trying to find convenience in addition to eye-catching rates. Marketing research shows how the customer for Twa The Second Bankruptcy does not have recognition concerning discovering services which can provide a combination of comfort and affordable.

Technical factors: Modern technology plays a vital role in Twa The Second Bankruptcy's service method particularly as the company is piloting Technology facilities which would use modern technology sales and also support in the type of memory upgrades, outer setups. (Recap of PEST in appendix 2).

OB Issues as well as Symptoms.

Numerous underlying Organizational Habits problems can be seen in Twa The Second Bankruptcy's case as highlighted in this area.

Uneasiness regarding cultural modification: There is concern concerning a cultural change that would take place once Todd Krasnow leaves from his position as the Exec Vice President of Advertising with most of the personnel already revealing discontent over this possible action. This anticipated modification has actually developed anxiety in the workplace which has been paired with the past tension of preparing the company for a potential merging with House Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is shortage of personnel that can match the stressful environment of a busy company. Not just does this result in difficulty in finding the ideal individuals, it places stress on new hires as can not endure the rate as well as stress that the organization anticipates them to birth.

Twin Coverage Lines: Novices find this organizational culture cumbersome as well as challenging to deal with particularly as populated line partnerships are meant to be weaker as a whole and also unbiased setting and efficiency analysis is still done by the solid line supervisor. This means that newcomers might shed quality concerning their corresponding functions and purposes specifically as populated line reporting does not maintain them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had actually been hypothesized that the latter would take Krasnow's position came as a blow to her morale. Lewis might have been capable as well as proper for the work however the reality that Kransnow's separation would make Coles a direct record to Lewis might have been the reason for Coles' resignation from solutions.

Anxiety & Job Insecurity: Worry as well as insecurity can be identified as 2 major concerns that Lewis would certainly be dealing with especially as the merging has actually currently be cancelled and 2 senior executives of the advertising and marketing division would certainly be leaving. The whole obligation of the department would be falling on Lewis's shoulders that would not just supervise of brining about a cultural modification however would additionally need to show herself in her new function.

Incompatible Management Style of Leader: Lewis's management design as well as its incompatibility with the advertising and marketing division's function can additionally be seen as an OB difficulty particularly as she has actually been used to handling issues in the procedures department where personnel are educated to focus on procedures and obtain them. The advertising division on the various other hand can be seen as a team of people who are made use of to being nurtured by Krasnow who concentrated more on outcome than processes.

Interdepartmental Differences: Interdepartmental differences in between 3 divisions, advertising and marketing, merchandizing as well as operations respectively over the allotment of the advertising and marketing mix can be recognized as another OB concern. Although the marketing department does not share the very same vision as the other 2 divisions concerning the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing as well as operations divisions do not agree over the advertising and marketing mix allowance amongst one another either.

Fragmentation in Marketing Department: Disintegration in between the marketing and advertising divisions can be identified as another OB concern which might require further focus. The truth that the marketing and advertising sections in the advertising and marketing department are detached is stopping both divisions from gaining from each various other's experience and expertise. Combination of marketing with merchandising and also procedures would certainly come to be more difficult if the marketing department itself is degenerated which can be an additional potential OB worry.

Twa The Second Bankruptcy Analysis

Various concepts have been utilized to explain the circumstances to obtain additional clarity regarding the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that subordinates are passive as well as careless, have little ambition and also stand up to modification. The difficult version of this concept emphasized threat, limited controls, hazards and punishments. With time it generates reduced efficiency, subtle sabotage as well as competition (Bargain, 2003). Although the circumstance at Twa The Second Bankruptcy is not completely following Concept X, it can be seen that brand-new hires are discovering this setting instead stressful which may at some point bring about a higher inclination of the administration towards Concept X. Based on McGregor's supported view, which he called Concept Y, the vital task of the management is to set up organizational problems to make sure that individuals can attain their very own goals best by guiding their initiatives in the direction of business incentives. If people find no fulfillment in their job, the administration would certainly have little option however to rely upon concept X and external control (Deal, 2003). Even while examining Lewis's monitoring design, theory X might have appropriated in the operations department to some extent however the Advertising and marketing department would certainly require dependence on Theory Y so as to get the imagination and also creativity from the teams.

Tuckman's Synergy Concept: As much as Lewis's worry concerning bringing consistency between the advertising and marketing and also advertising department is concerned, this would initially lead to conflict as talked about by Bruce Tuckman in his 'Teamwork Theory'. By integrating the marketing and also marketing department's job, there might be the exact same first separate which could lead to the 2nd stage of 'storming' where the teams test one an additional.

When people are provided with change, they go into stage one and also so there might be feelings like despair, unpredictability, aggravation, temper, anxiety, denial and also disorientation.The scenario at the advertising and marketing division of Twa The Second Bankruptcy is comparable so Lewis can obtain comfortable with the idea that it is not extraordinary habits. It is during this phase that Lewis will certainly have to offer support to the division so that they can locate a feeling of instructions. It can be seen how Krasnow has actually currently made this transition less complicated by making Lewis obtain entailed in the division a year before his real separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has goes over the relevance of 'protection needs as being a lower level requirement of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel protected and also out of risk' is at the 2nd degree of demands. Prior to a staff member can be made to develop emotionally, he needs to have his 'Physiological 'and 'Safety and security' needs fulfilled.

SWOT Analysis for Twa The Second Bankruptcy Case Study

Effects of Analysis.

The OB analysis has actually taken a look at different concepts to comprehend exactly how to deal with the existing scenario available. The following 3 alternatives have actually been recommended to aid Lewis manage the business obstacles in the marketing department. Each of these choices has been suggested for reducing the change required to bring the advertising division according to the needs of the market and also for making the social modification that would certainly follow when the present leader leaves.

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

Assessment of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merging days has knowledge in business-to-business advertising along with company as well as retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to deal with both advertising and marketing and advertising features.

The benefit of this technique is that it will certainly incorporate both features while reducing the need for working with an added source for advertising and marketing. Lewis would be heading the marketing division and also in any case her replacement would be needed for the present role that she is executing. The downside of this option is that exterior hiring might bring about animosity from internal employees who might be looking at the position of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Manufacturing: Provided the affordable stress and high quality work called for from the advertising firm, it is advised that Lewis needs to enable the production system to be a separate feature from the advertising and marketing unit. Since most advertising agencies had these 2 features as different systems, it makes more feeling to follow the standard.

Assimilation of Advertising And Marketing with Operations: Because Lewis is currently taking care of the advertising and marketing and procedures departments simultaneously; it makes sense to integrate the two features since she has been effectively taking care of both ends. The fact that Lewis has to adjust her administration style for the advertising division recommends that these two divisions would certainly be culturally varied.


An evaluation of the 3 options indicates that integration of advertising and operations would not be a possible step as a result of the huge differences between the two departments although that presently Lewis is handling both. While separation of the manufacturing function might have been a beneficial relocation for the advertising department, the reality that it would indicate putting a third function under Lewis's wing suggests this ought to be prevented. The integration of the advertising and marketing department is the best choice in regards to obtaining the optimum results from the department. An activity plan for this choice is discussed listed below.

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

Advertising and Marketing functions would certainly be merged.

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

Production feature will stay part of advertising and marketing under marketing function.

Lewis will separate herself from procedures.

An autonomous leadership style with employee empowerment will be used in advertising division.

Open up door policy and also emphasis on cross departmental communication will certainly be aimed at getting rid of dissonance.

Backup strategy.

If the assimilation does not work out as intended, a backup strategy would certainly adhere to which would certainly separate the manufacturing function from the advertising feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising and marketing division without an SVP. Because case the production feature will most definitely be separated by placing it under an SVP manufacturing.