Why I Use The Case Method To Teach Accounting Case Study Solution


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Why I Use The Case Method To Teach Accounting Case Study Solution

Background and Facts

Why I Use The Case Method To Teach Accounting a workplace supplies store for tiny as well as average sized businesses has actually recently been associated with planning for a merger with its competitor House Deport, which has actually affected effectiveness degrees in departmentswith the senior supervisor associated with legal complications presented by the federal Trade Commission. With the Advertising Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the function in the near future. With challenges in the form of a potential cultural modification as well as low worker morale, the company requires a total reengineering effort at the marketing division.

Issue Statement
Porter's 5 Forces Analysis
The potential social change at the advertising and marketing division of Why I Use The Case Method To Teach Accounting is boosting unpredictability in the workplace leading to various challenges 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 affecting calculated decisions given that Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Trade Payment's treatment at the same time. Offered the reality that the store has a global visibility with branches in UK, USA, Canada and Germany, political consider each of these countries might have the ability to affect performance or critical objectives. Federal Trade Commission's antitrust match versus the merger used up important time of the organization's elderly management recommending that 'political' factors can have major ramifications for an international organisation.

Economic Factors: Financial factors such as the appearance of small companies in the worldwide scenario recommend that Why I Use The Case Method To Teach Accounting is growing in an atmosphere where there is potential growth of companies. Reality that store customers are primarily looking for workplace materials for residence workplaces recommends that the market has a rising fad of business owners and home based organisations.

Social factors: Social trends in the economic situation show that customers are trying to find convenience as well as eye-catching prices. Market research demonstrates how the customer for Why I Use The Case Method To Teach Accounting lacks awareness regarding locating options which can use a combination of benefit and also inexpensive.

Technical factors: Innovation plays an essential duty in Why I Use The Case Method To Teach Accounting's business technique specifically as the organization is piloting Technology facilities which would certainly offer modern technology sales as well as support in the type of memory upgrades, peripheral setups. (Summary of PARASITE in appendix 2).

OB Issues and Symptoms.

Numerous underlying Business Actions problems can be seen in Why I Use The Case Method To Teach Accounting's case as highlighted in this section.

Worries about social modification: There is worry about a cultural modification that would certainly occur as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising with a lot of the personnel currently showing unhappiness over this prospective step. This anticipated modification has actually produced tension in the work environment which has actually been coupled with the past stress and anxiety of preparing the firm for a prospective merging with House Deport.
Pest Analysis
Difficult Job Environment for Newcomers: There is scarcity of personnel that can match the stressful environment of a fast-paced company. Not only does this result in problem in finding the ideal people, it places anxiety on brand-new hires as can not hold up against the rate as well as stress that the organization expects them to birth.

Dual Reporting Lines: Newcomers locate this business culture cumbersome and also difficult to handle specifically as populated line partnerships are implied to be weak in general and also objective setup as well as performance evaluation is still done by the solid line manager. This indicates that beginners can lose clarity about their corresponding roles and also objectives particularly as populated line coverage does not maintain them in direct communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles although it had been speculated that the latter would certainly take Krasnow's placement came as a blow to her spirits. Lewis might have been qualified and suitable for the work yet the truth that Kransnow's departure would make Coles a straight report to Lewis may have been the factor for Coles' resignation from services.

Worry & Task Insecurity: Worry and insecurity can be identified as two major concerns that Lewis would certainly be dealing with specifically as the merging has currently be terminated as well as 2 elderly execs of the advertising division would certainly be leaving. The entire duty of the department would be dropping on Lewis's shoulders that would not simply be in charge of brining concerning a cultural modification yet would certainly also need to prove herself in her brand-new role.

Inappropriate Administration Design of Leader: Lewis's management design and also its conflict with the advertising division's duty can additionally be seen as an OB difficulty specifically as she has actually been made use of to taking care of concerns in the operations department where employees are taught to concentrate on procedures and get them. The advertising division on the various other hand can be viewed as a team of people who are used to being nurtured by Krasnow that focused a lot more on output than processes.

Interdepartmental Arguments: Interdepartmental differences in between three departments, marketing, merchandizing and also procedures specifically over the allowance of the advertising and marketing mix can be recognized as an additional OB concern. Although the marketing department does not share the very same vision as the other two departments pertaining to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing as well as procedures divisions do not agree over the advertising and marketing mix appropriation amongst each other either.

Disintegration in Marketing Division: Fragmentation in between the marketing and advertising divisions can be recognized as one more OB issue which could require additional attention. The truth that the marketing and advertising areas in the advertising and marketing department are disconnected is avoiding both divisions from getting from each various other's experience and also know-how. Integration of advertising with retailing as well as procedures would certainly end up being more difficult if the advertising division itself is broken down which can be an additional possible OB issue.

Why I Use The Case Method To Teach Accounting Analysis

Different theories have been used to discuss the scenarios to get additional clarity concerning the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers think that juniors are easy and also careless, have little aspiration and stand up to modification. The tough version of this concept highlighted threat, tight controls, hazards and also penalties. Over time it generates low efficiency, subtle sabotage and competition (Bargain, 2003). Although the scenario at Why I Use The Case Method To Teach Accounting is not completely adhering to Theory X, it can be seen that brand-new hires are finding this setting instead demanding which might at some point bring about a better inclination of the administration in the direction of Concept X. According to McGregor's promoted view, which he called Concept Y, the crucial task of the administration is to organize business problems to ensure that individuals can accomplish their own goals best by guiding their initiatives in the direction of organizational rewards. If people discover no satisfaction in their work, the administration would certainly have little option but to count on concept X as well as exterior control (Deal, 2003). Also while analyzing Lewis's administration design, theory X may have appropriated in the operations division somewhat but the Marketing department would certainly call for reliance on Concept Y so as to get the imagination and creativity from the teams.

Tuckman's Synergy Theory: As much as Lewis's worry concerning bringing harmony between the advertising as well as advertising and marketing division is concerned, this would initially lead to clash as gone over by Bruce Tuckman in his 'Synergy Concept'. By incorporating the advertising and also marketing department's job, there may be the very same first detach which could lead to the second phase of 'storming' where the teams test one another.

Bridges' Change Design: According To William Bridge's theory (appendix 4), people are quite awkward with modification, which is noticeable by the situation at Why I Use The Case Method To Teach Accounting The situation can be viewed as a regular course of life if is studied as per Bridge's concept where he discusses that people experience three stages of change when they experience change. 'Ending, losing and also Letting go', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When people are presented with change, they get in phase one and so there may be emotions like despair, uncertainty, disappointment, anger, fear, rejection as well as disorientation.The circumstance at the marketing department of Why I Use The Case Method To Teach Accounting is comparable so Lewis can obtain comfortable with the suggestion that it is not amazing habits. In the 2nd phase, there might be a need to connect the space in between the brand-new and old society so Lewis might have to encounter this experience as soon as Krasnow leaves. There may be low spirits as well as reduced efficiency at this phase which must not be taken as a problem. It is throughout this phase that Lewis will certainly need to provide support to the department so that they can discover an orientation. It can be seen just how Krasnow has currently made this transition simpler by making Lewis obtain associated with the department a year before his actual departure. As per Bridges' Model, phase three will certainly produce visibility to knowing, High energy and commitment as individuals will embrace the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has goes over the relevance of 'security needs as being a reduced degree demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel protected and also out of danger' is at the second degree of needs. Prior to a worker can be made to create psychologically, he requires to have his 'Physical 'and 'Safety' needs satisfied.

SWOT Analysis for Why I Use The Case Method To Teach Accounting Case Study

Ramification of Analysis.

The OB analysis has actually looked at numerous concepts to understand exactly how to handle the existing situation handy. The adhering to three options have actually been proposed to assist Lewis deal with the business challenges in the advertising division. Each of these choices has actually been recommended for alleviating the change needed to bring the marketing department in line with the needs of the marketplace as well as for making the social modification that would certainly adhere to as soon as the current leader leaves.

Integration of advertising and marketing functions. Separating Adverting and also Production functions. Assimilation of Advertising And Marketing with Operations.

Analysis of Alternatives.

Judith Shapiro who has earlier been interviewed by Lewis during the earlier merger days has knowledge in business-to-business marketing along with firm and also 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 also advertising features.

The advantage of this approach is that it will certainly integrate both features while reducing the demand for hiring an added resource for advertising. Along with this, Lewis would be heading the marketing division as well as all the same her substitute would certainly be required for the existing duty that she is doing. The negative aspect of this choice is that outside hiring may cause animosity from inner employees who may be eying the setting of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and Production: Offered the affordable stress and high top quality job required from the advertising and marketing company, it is recommended that Lewis must allow the production system to be a different feature from the advertising system. Because many advertising and marketing agencies had these 2 features as separate devices, it makes more sense to comply with the standard.

Integration of Advertising And Marketing with Procedures: Considering that Lewis is already caring for the advertising and also procedures departments at the same time; it makes good sense to incorporate both functions since she has been efficiently looking after both ends. The truth that both departments currently have significant differences over allocation of sources suggests that this assimilation might be able to cause harmony particularly as Lewis would be heading both ends.However there are numerous negative aspects of this action specifically as it would certainly place excessive worry over Lewis's shoulders. The reality that Lewis needs to adjust her administration design for the marketing department suggests that these 2 divisions would certainly be culturally diverse. Lewis may not be able to apply one type of leadership design to both departments which could result in inefficiency in either one of the 2 features.


An assessment of the 3 options shows that combination of advertising and also operations would certainly not be a practical action due to the huge differences between the 2 divisions in spite of the reality that currently Lewis is handling both. While splitting up of the manufacturing feature may have been a favorable move for the marketing department, the fact that it would mean placing a 3rd function under Lewis's wing indicates this need to be prevented.

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

Marketing and advertising functions would be merged.

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

Production feature will certainly stay component of advertising under advertising and marketing feature.

Lewis will certainly divide herself from operations.

A democratic leadership style with worker empowerment will certainly be made use of in marketing department.

Open door policy as well as emphasis on cross departmental interaction will certainly be aimed at eliminating discord.

Backup plan.

If the integration does not work out as planned, a backup strategy would adhere to which would certainly separate the manufacturing feature from the advertising function to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising department without an SVP. In that case the manufacturing feature will definitely be divided by positioning it under an SVP production.