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Walking On A Tightrope Maintaining London As A Financial Center Case Study Help

CASE ANALYSIS

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Walking On A Tightrope Maintaining London As A Financial Center Case Study Analysis

Background and Facts

Walking On A Tightrope Maintaining London As A Financial Center an office supplies seller for little as well as medium sized companies has actually lately been involved in preparing for a merging with its competitor Home Deport, which has influenced performance levels in departmentswith the senior supervisor involved in legal problems put forth by the government Trade Commission. With the Advertising and marketing Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the duty in the future. With challenges in the form of a potential cultural modification as well as reduced employee morale, the organization is in need of a complete reengineering initiative at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The possible social modification at the marketing division of Walking On A Tightrope Maintaining London As A Financial Center is increasing unpredictability in the working environment leading to different challenges 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 function in impacting critical choices since Stapes Inc. had to desert its plans of combining with Office Deport after the Federal Profession Commission's treatment in the process. Given the fact that the store has a global visibility with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries may be able to influence performance or calculated objectives. Federal Trade Payment's antitrust match versus the merging used up beneficial time of the organization's senior administration recommending that 'political' factors can have severe ramifications for an international organisation.

Economic Factors: Economic factors such as the development of local business in the worldwide situation suggest that Walking On A Tightrope Maintaining London As A Financial Center is prospering in a setting where there is possible development of companies. In addition to this, fact that shop clients are primarily looking for workplace products for home offices suggests that the marketplace has a rising trend of entrepreneurs and also home organisations.

Social factors: Social trends in the economic situation show that customers are searching for ease along with attractive rates. Marketing research demonstrates how the client for Walking On A Tightrope Maintaining London As A Financial Center lacks recognition regarding discovering solutions which can offer a mix of ease and also low costs.

Technical factors: Technology plays a crucial function in Walking On A Tightrope Maintaining London As A Financial Center's company strategy especially as the company is piloting Modern technology facilities which would certainly supply innovation sales and support in the kind of memory upgrades, outer installments. (Summary of PARASITE in appendix 2).

OB Issues and also Symptoms.

Several underlying Organizational Habits concerns can be seen in Walking On A Tightrope Maintaining London As A Financial Center's case as highlighted in this area.

Concerns about cultural change: There is uneasiness about a cultural adjustment that would occur when Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with a lot of the employee currently revealing discontent over this possible move. This predicted change has actually developed anxiety in the office which has actually been combined with the previous stress and anxiety of preparing the firm for a potential merging with House Deport.
Pest Analysis
Difficult Task Environment for Newcomers: There is scarcity of personnel that can match the difficult environment of a fast-paced company. Not just does this lead to problem in locating the ideal people, it puts tension on brand-new hires as can not stand up to the speed and pressure that the organization anticipates them to birth.

Dual Coverage Lines: Newcomers locate this business culture difficult as well as difficult to deal with especially as populated line relationships are meant to be weaker in general as well as unbiased setup as well as efficiency examination is still done by the solid line supervisor. This suggests that novices could lose quality about their corresponding roles and purposes especially as populated line coverage does not maintain them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles even though it had actually been hypothesized that the latter would take Krasnow's setting came as a strike to her morale. Lewis may have been capable and also appropriate for the task 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 services.

Fear & Job Insecurity: Worry as well as instability can be recognized as 2 major problems that Lewis would certainly be dealing with especially as the merger has actually now be terminated and also two senior executives of the marketing department would certainly be leaving. The whole responsibility of the division would certainly be falling on Lewis's shoulders that would not simply supervise of brining regarding a social modification yet would additionally need to show herself in her new duty.

Inappropriate Administration Design of Leader: Lewis's monitoring design as well as its incompatibility with the advertising and marketing division's role can likewise be seen as an OB difficulty specifically as she has been made use of to managing problems in the procedures department where personnel are shown to concentrate on processes and get them. The advertising and marketing division on the various other hand can be seen as a team of people who are used to being supported by Krasnow who focused more on output than procedures.

Interdepartmental Disagreements: Interdepartmental arguments between three departments, advertising, merchandizing and operations specifically over the allocation of the advertising mix can be identified as an additional OB worry. Although the advertising division does not share the exact same vision as the other 2 departments pertaining to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and procedures departments do not concur over the marketing mix allocation among each other either.

Fragmentation in Marketing Division: Disintegration in between the marketing and advertising departments can be identified as another OB issue which can require further interest. The reality that the advertising and marketing areas in the marketing department are detached is avoiding both divisions from acquiring from each other's experience as well as expertise. Integration of advertising and marketing with retailing and also operations would certainly become harder if the marketing department itself is broken down which can be another potential OB concern.

Walking On A Tightrope Maintaining London As A Financial Center Analysis

Various concepts have actually been made use of to explain the scenarios to obtain additional clearness regarding the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of supervisors think that subordinates are easy as well as lazy, have little aspiration and stand up to change. The difficult variation of this theory highlighted coercion, tight controls, risks and also penalties. In time it creates low productivity, refined sabotage as well as competition (Deal, 2003). Although the scenario at Walking On A Tightrope Maintaining London As A Financial Center is not completely adhering to Theory X, it can be seen that brand-new hires are locating this setting instead difficult which might eventually cause a higher disposition of the management towards Concept X. Based on McGregor's advocated view, which he called Theory Y, the necessary task of the monitoring is to arrange organizational conditions to make sure that people can attain their very own goals best by routing their efforts towards organizational benefits. If people find no fulfillment in their job, the management would certainly have little option yet to rely upon concept X and external control (Offer, 2003). Also while evaluating Lewis's management design, concept X may have been suitable in the procedures department somewhat yet the Advertising division would require dependence on Theory Y so as to get the imagination as well as creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's concern regarding bringing harmony in between the marketing and advertising division is worried, this would originally cause conflict as gone over by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). As per Tuckman's theory received appendix 3, throughout the initial stage of team growth, individuals may not bond, as they are active finding their place in the group. By combining the marketing and advertising department's job, there may coincide initial disconnect which can bring about the second stage of 'storming' where the groups test each other. However, it is just during the third stage or 'norming' when they would certainly integrate to share concepts prior to the group can cause harmony in the 4th stage 'performing'.

Bridges' Change Model: According To William Bridge's theory (appendix 4), individuals are fairly uncomfortable with adjustment, which is noticeable by the scenario at Walking On A Tightrope Maintaining London As A Financial Center The scenario can be viewed as a normal program of life if is studied based on Bridge's concept where he explains that people undergo three stages of transition when they experience adjustment. 'End, shedding as well as Releasing', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When individuals are presented with adjustment, they enter stage one and so there may be feelings like despair, uncertainty, disappointment, rage, anxiety, rejection and also disorientation.The circumstance at the advertising and marketing division of Walking On A Tightrope Maintaining London As A Financial Center is comparable so Lewis can obtain comfy with the concept that it is not remarkable habits. In the 2nd stage, there might be a requirement to bridge the space between the new and also old society so Lewis may have to face this ordeal as soon as Krasnow leaves. There may be low morale and also reduced efficiency at this stage which ought to not be taken as a setback. It is throughout this phase that Lewis will certainly need to provide guidance to the department to ensure that they can discover a sense of direction. It can be seen how Krasnow has already made this transition much easier by making Lewis get associated with the division a year before his actual departure. As per Bridges' Design, phase three will produce openness to understanding, High energy and also dedication as individuals will embrace the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has reviews the value of 'security needs as being a lower level demand of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel protected and out of threat' is at the 2nd level of demands. Prior to a worker can be made to develop emotionally, he needs to have his 'Physiological 'and also 'Safety' needs satisfied.

SWOT Analysis for Walking On A Tightrope Maintaining London As A Financial Center Case Study



Implication of Analysis.

The OB analysis has actually checked out numerous concepts to understand just how to manage the current scenario handy. The following 3 options have actually been proposed to assist Lewis manage the organizational difficulties in the advertising division. Each of these alternatives has actually been recommended for relieving the change needed to bring the advertising and marketing division in line with the needs of the market and for making the social modification that would comply with when the current leader leaves.

Combination of advertising and marketing features. Separating Adverting and Production features. Combination of Marketing with Workflow.

Assessment of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merger days has proficiency in business-to-business marketing along with company as well as retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to manage both advertising and marketing and also marketing features.

The advantage of this approach is that it will integrate both functions while lowering the requirement for employing an additional resource for advertising. Lewis would certainly be heading the advertising division and in any kind of case her replacement would certainly be needed for the present function that she is carrying out. The drawback of this alternative is that exterior hiring might produce resentment from inner employees that might be eying the placement of EVP after Lewis takes over Krasnow's position.

Dividing Adverting as well as Production: Offered the affordable pressures as well as premium quality work required from the advertising agency, it is recommended that Lewis needs to permit the manufacturing unit to be a separate function from the advertising system. Because a lot of advertising agencies had these 2 features as separate devices, it makes more sense to comply with the standard. In addition to this, both features might be able to focus on their core turns on more successfully. Nonetheless, the negative aspect of this approach would certainly be that additional prices would need to be birthed for establishing separate production features. A production head may have to be employed which might increase expenses for the organization.

Assimilation of Advertising And Marketing with Workflows: Considering that Lewis is currently taking care of the marketing and procedures divisions concurrently; it makes feeling to integrate the 2 features considering that she has actually been effectively taking treatment of both ends. The reality that Lewis has to adapt her administration style for the marketing division recommends that these 2 departments would certainly be culturally varied.

Recommendation.



An examination of the 3 options shows that integration of advertising and operations would not be a viable relocation due to the vast differences in between the 2 departments regardless of the fact that currently Lewis is taking care of both. While splitting up of the production function may have been a positive step for the advertising department, the reality that it would imply positioning a third feature under Lewis's wing indicates this must be prevented.

Activity Plan.
Recommendation
Lewis will certainly take over the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Manufacturing function will certainly stay component of advertising under advertising and marketing function.

Lewis will divide herself from procedures.

A democratic management style with worker empowerment will be utilized in advertising department.

Open up door plan as well as focus on cross department communication will be aimed at getting rid of dissonance.

Contingency plan.

If the integration does not exercise as prepared, a backup strategy would certainly comply with which would divide the manufacturing feature from the advertising function to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising division without an SVP. Because case the production function will absolutely be divided by putting it under an SVP production.