Menu

Winfield Refuse Management Inc Raising Debt Vs Equity Case Study Analysis

CASE HELP

Home >> Harvard >> Winfield Refuse Management Inc Raising Debt Vs Equity >>

Winfield Refuse Management Inc Raising Debt Vs Equity Case Study Solution

Background and Facts

Winfield Refuse Management Inc Raising Debt Vs Equity a workplace supplies retailer for little and also moderate sized organisations has actually lately been involved in preparing for a merging with its competitor House Deport, which has impacted efficiency levels in departmentswith the senior manager associated with legal problems put forth by the government Trade Compensation. With the Advertising Head advancing the information of his separation from the business in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the near future. With difficulties in the type of a possible cultural modification and low employee spirits, the organization wants a complete reengineering effort at the marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising and marketing division of Winfield Refuse Management Inc Raising Debt Vs Equity is raising uncertainty in the workplace leading to different obstacles for the Jeannie Lewis who would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing tactical choices considering that Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Trade Commission's treatment while doing so. Given the reality that the store has a global visibility with branches in UK, USA, Canada and Germany, political factors in each of these countries may have the ability to affect performance or calculated objectives. Federal Trade Payment's antitrust fit versus the merging used up valuable time of the company's elderly management suggesting that 'political' factors can have significant effects for an international organisation.

Economic Factors: Financial factors such as the emergence of small companies in the worldwide circumstance suggest that Winfield Refuse Management Inc Raising Debt Vs Equity is flourishing in a setting where there is possible development of companies. Reality that store consumers are mostly looking for workplace materials for house offices recommends that the market has an increasing fad of business owners and residence based companies.

Social factors: Social patterns in the economic situation show that clients are looking for convenience as well as attractive costs. Marketing research shows how the consumer for Winfield Refuse Management Inc Raising Debt Vs Equity does not have understanding about locating services which can offer a combination of convenience and low costs.

Technological factors: Innovation plays an essential function in Winfield Refuse Management Inc Raising Debt Vs Equity's organisation technique specifically as the company is piloting Modern technology centers which would certainly use technology sales as well as support in the type of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Business Habits issues can be seen in Winfield Refuse Management Inc Raising Debt Vs Equity's case as highlighted in this area.

Uneasiness about social modification: There is worry regarding a social adjustment that would certainly occur once Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with most of the employee already revealing unhappiness over this prospective move. This expected adjustment has produced anxiety in the workplace which has actually been combined with the previous tension of preparing the company for a prospective merging with Residence Deport.
Pest Analysis
Demanding Job Environment for Newcomers: There is shortage of workers that can match the stressful atmosphere of a busy organization. Not only does this bring about difficulty in locating the ideal people, it places stress and anxiety on brand-new hires as can not hold up against the rate and also stress that the company expects them to birth.

Dual Reporting Lines: Beginners find this business culture difficult as well as hard to deal with especially as populated line partnerships are indicated to be weak in general and unbiased setting as well as performance analysis is still done by the solid line supervisor. This means that beginners could lose quality regarding their respective roles as well as goals especially as populated line reporting does not maintain them in direct interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had actually been speculated that the last would certainly take Krasnow's position came as a blow to her morale. Lewis might have been capable and suitable for the job but the fact that Kransnow's departure would make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Job Instability: Anxiety as well as insecurity can be determined as 2 significant issues that Lewis would certainly be handling specifically as the merger has actually currently be terminated as well as two elderly executives of the marketing department would be leaving. The entire obligation of the department would certainly be dropping on Lewis's shoulders that would certainly not just be in charge of brining regarding a cultural change however would additionally need to prove herself in her new function.

Incompatible Management Style of Leader: Lewis's management design and its incompatibility with the advertising and marketing division's role can also be viewed as an OB challenge specifically as she has been used to dealing with concerns in the operations division where employees are educated to focus on processes and also obtain them right. The advertising division on the various other hand can be seen as a team of people that are utilized to being nurtured by Krasnow who focused extra on output than procedures.

Interdepartmental Disputes: Interdepartmental disagreements between three divisions, marketing, merchandizing as well as operations respectively over the allotment of the advertising mix can be recognized as one more OB worry. Although the marketing division does not share the exact same vision as the various other 2 departments relating to the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and procedures divisions do not agree over the marketing mix allocation amongst one another either.

Disintegration in Marketing Department: Fragmentation in between the marketing and advertising departments can be recognized as another OB problem which can require additional attention. The fact that the marketing and advertising areas in the marketing division are detached is preventing both divisions from acquiring from each other's experience as well as expertise. Integration of advertising with merchandising and also operations would certainly become more difficult if the marketing division itself is degenerated which can be one more prospective OB problem.

Winfield Refuse Management Inc Raising Debt Vs Equity Analysis

Numerous concepts have actually been utilized to describe the situations to obtain further clarity concerning the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that staffs are passive and also careless, have little ambition and stand up to modification. The scenario at Winfield Refuse Management Inc Raising Debt Vs Equity is not entirely complying with Theory X, it can be seen that brand-new hires are finding this environment rather difficult which may eventually lead to a higher disposition of the management in the direction of Theory X. Also while analyzing Lewis's monitoring design, concept X might have been ideal in the operations department to some level but the Advertising department would need reliance on Theory Y in order to get the creativity and also originality from the teams.

Tuckman's Synergy Theory: As far as Lewis's problem regarding bringing harmony between the marketing and advertising division is concerned, this would originally lead to contrast as discussed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, throughout the preliminary phase of group advancement, individuals may not bond, as they are active finding their area in the group. By combining the advertising and marketing department's job, there might be the same first disconnect which could result in the 2nd stage of 'storming' where the groups test one another. It is only throughout the 3rd stage or 'norming' when they would come together to share ideas before the team can bring about harmony in the 4th phase 'performing'.

When individuals are offered with adjustment, they enter stage one as well as so there may be feelings like despair, unpredictability, frustration, rage, anxiety, denial and disorientation.The scenario at the advertising division of Winfield Refuse Management Inc Raising Debt Vs Equity is comparable so Lewis can get comfy with the suggestion that it is not phenomenal behavior. It is throughout this stage that Lewis will have to offer support to the department so that they can find a feeling of direction. It can be seen how Krasnow has actually currently made this change less complicated by making Lewis obtain involved in the department a year before his actual separation.
Vrio Analysis
Maslow's Need power structure: The OB problem related to instability at the work environment has actually been set off first of all by the modification in administration as well as secondly by the reality that the merger will no more be started. Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has goes over the importance of 'security requires as being a lower degree need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel protected as well as untouched' goes to the second degree of needs. Before an employee can be made to develop mentally, he requires to have his 'Physiological 'and 'Safety and security' requires satisfied. This suggests that unless the personnel are made to feel safe and secure about their current work condition in Winfield Refuse Management Inc Raising Debt Vs Equity they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Winfield Refuse Management Inc Raising Debt Vs Equity Case Study



Ramification of Analysis.

The OB analysis has taken a look at numerous concepts to understand exactly how to cope with the current circumstance at hand. The following three alternatives have been proposed to aid Lewis manage the business challenges in the advertising and marketing department. Each of these options has actually been recommended for alleviating the shift needed to bring the advertising department in accordance with the demands of the marketplace and also for making the cultural change that would comply with as soon as the existing leader leaves.

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

Assessment of Alternatives.

Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merging days has knowledge in business-to-business advertising and marketing along with firm and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to manage both advertising and also advertising and marketing features.

The advantage of this method is that it will integrate the two features while reducing the need for employing an additional source for advertising. Lewis would certainly be heading the marketing division and in any kind of case her substitute would be needed for the current role that she is doing. The downside of this option is that external hiring might produce resentment from interior personnel who might be looking at the position of EVP after Lewis takes control of Krasnow's position.

Separating Adverting and Production: Provided the competitive pressures and also high top quality job called for from the marketing agency, it is suggested that Lewis needs to enable the manufacturing device to be a separate function from the marketing system. Since many marketing agencies had these two functions as different units, it makes even more sense to follow the norm.

Assimilation of Marketing with Workflows: Since Lewis is currently taking care of the advertising and marketing as well as procedures departments simultaneously; it makes sense to incorporate the two features since she has actually been effectively looking after both ends. The fact that both departments already have significant distinctions over allowance of sources suggests that this integration may have the ability to produce consistency particularly as Lewis would certainly be heading both ends.However there are numerous disadvantages of this move especially as it would certainly put excessive worry over Lewis's shoulders. The reality that Lewis has to adapt her administration style for the advertising and marketing department recommends that these two divisions would be culturally varied. In addition to this, Lewis might not be able to apply one sort of management design to both departments which could result in inefficiency in either among both features.

Recommendation.



An examination of the three options suggests that assimilation of advertising and marketing and also procedures would certainly not be a feasible action due to the vast distinctions in between both divisions although that currently Lewis is taking care of both. While splitting up of the manufacturing feature may have been a beneficial action for the advertising department, the reality that it would certainly mean positioning a third function under Lewis's wing indicates this should be avoided. The integration of the advertising and marketing department is the best alternative in regards to obtaining the optimum arise from the department. An activity plan for this choice is talked about below.

Activity Strategy.
Recommendation
Lewis will take control of the function of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Production function will remain component of marketing under advertising and marketing feature.

Lewis will divide herself from procedures.

A democratic leadership style with worker empowerment will be used in advertising and marketing department.

Open door plan as well as focus on cross department interaction will be focused on removing dissonance.

Contingency strategy.

If the assimilation does not work out as prepared, a backup strategy would comply with which would certainly separate the manufacturing feature from the advertising and marketing function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the marketing division without an SVP. In that case the manufacturing function will certainly be separated by placing it under an SVP production.