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Winfield Refuse Management Inc Raising Debt Vs Equity Case Study Analysis

CASE ANALYSIS

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Winfield Refuse Management Inc Raising Debt Vs Equity Case Study Analysis

Background and Facts

Winfield Refuse Management Inc Raising Debt Vs Equity a workplace materials retailer for small and also medium sized companies has lately been associated with preparing for a merging with its rival Residence Deport, which has actually impacted efficiency levels in departmentswith the elderly supervisor involved in legal complications presented by the government Profession Commission. With the Marketing Head advancing the news of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the near future. With obstacles in the form of a possible cultural change as well as reduced worker morale, the organization is in need of a total reengineering initiative at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The prospective cultural adjustment at the marketing department of Winfield Refuse Management Inc Raising Debt Vs Equity is increasing unpredictability in the workplace bring about different difficulties 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 role in affecting calculated decisions because Stapes Inc. had to abandon its plans of combining with Workplace Deport after the Federal Profession Compensation's treatment while doing so. Given the truth that the shop has an international visibility with branches in UK, USA, Canada and Germany, political consider each of these nations may have the ability to impact performance or strategic objectives. Federal Profession Payment's antitrust suit versus the merging took up useful time of the company's elderly administration recommending that 'political' factors can have significant ramifications for a worldwide service.

Economic Factors: Financial factors such as the development of small businesses in the worldwide scenario recommend that Winfield Refuse Management Inc Raising Debt Vs Equity is flourishing in an environment where there is prospective development of organisations. Truth that store clients are mainly looking for workplace products for residence workplaces recommends that the market has an increasing trend of business owners and also house based services.

Social factors: Social trends in the economic situation reveal that clients are looking for convenience in addition to eye-catching prices. Marketing research shows how the consumer for Winfield Refuse Management Inc Raising Debt Vs Equity does not have awareness about finding options which can provide a combination of convenience and also affordable.

Technical factors: Technology plays an important role in Winfield Refuse Management Inc Raising Debt Vs Equity's organisation technique especially as the organization is piloting Innovation facilities which would certainly offer modern technology sales as well as assistance in the type of memory upgrades, peripheral installations. (Summary of PEST in appendix 2).

OB Issues and Manifestations.

Numerous underlying Organizational Habits issues can be seen in Winfield Refuse Management Inc Raising Debt Vs Equity's case as highlighted in this section.

Apprehensions about cultural change: There is worry regarding a social modification that would certainly occur when Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising And Marketing with most of the staff members already showing discontent over this possible move. This expected adjustment has actually produced tension in the workplace which has actually been combined with the previous stress and anxiety of preparing the company for a possible merging with Home Deport.
Pest Analysis
Stressful Job Atmosphere for Newcomers: There is lack of workers that can match the difficult setting of a busy organization. Not only does this bring about trouble in discovering the best people, it puts stress on new hires as can not withstand the speed and pressure that the organization anticipates them to bear.

Twin Coverage Lines: Novices locate this business culture cumbersome and tough to manage especially as dotted line connections are implied to be weak in general as well as objective setup as well as efficiency evaluation is still done by the solid line supervisor. This means that novices might lose clarity about their particular roles as well as goals particularly as populated line reporting does not keep them in direct interaction with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles although it had actually been speculated that the latter would certainly take Krasnow's position came as a strike to her morale. Lewis might have been qualified as well as suitable for the task however the reality that Kransnow's departure would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Concern & Job Instability: Anxiety and also insecurity can be identified as two major problems that Lewis would be dealing with specifically as the merging has actually currently be terminated and also two senior executives of the marketing department would certainly be leaving. The entire obligation of the department would be falling on Lewis's shoulders that would not just supervise of brining concerning a cultural modification however would also need to show herself in her brand-new duty.

Incompatible Administration Design of Leader: Lewis's management style and its conflict with the advertising division's duty can also be seen as an OB obstacle specifically as she has been used to dealing with problems in the operations department where employees are instructed to focus on processes as well as obtain them. The advertising and marketing division on the various other hand can be viewed as a group of people that are utilized to being nurtured by Krasnow that concentrated more on outcome than processes.

Interdepartmental Arguments: Interdepartmental arguments between 3 departments, advertising and marketing, merchandizing as well as procedures respectively over the allocation of the marketing mix can be recognized as an additional OB issue. Although the advertising department does not share the exact same vision as the various other two departments relating to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and also procedures divisions do not concur over the marketing mix allotment among one another either.

Disintegration in Advertising And Marketing Department: Fragmentation between the marketing and advertising divisions can be determined as another OB issue which could need more focus. The fact that the advertising and marketing areas in the advertising department are detached is stopping both departments from gaining from each various other's experience and also expertise. Integration of marketing with retailing and also operations would come to be more difficult if the advertising department itself is disintegrated which can be another prospective OB problem.

Winfield Refuse Management Inc Raising Debt Vs Equity Analysis

Numerous theories have been utilized to explain the conditions to get more quality concerning the scenario handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that staffs are passive and careless, have little aspiration and also withstand adjustment. The circumstance at Winfield Refuse Management Inc Raising Debt Vs Equity is not completely following Concept X, it can be seen that new hires are finding this atmosphere rather difficult which might at some point lead to a better disposition of the administration in the direction of Concept X. Also while assessing Lewis's administration design, theory X may have been appropriate in the procedures department to some degree but the Advertising and marketing department would certainly need dependence on Theory Y in order to get the creative thinking as well as creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's worry regarding bringing harmony in between the advertising and marketing division is concerned, this would at first result in conflict as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's concept shown in appendix 3, throughout the initial stage of group development, individuals may not bond, as they are busy finding their area in the team. By combining the advertising and marketing division's job, there might coincide first disconnect which could bring about the second stage of 'storming' where the teams challenge each other. It is only during the third stage or 'norming' when they would certainly come with each other to share ideas before the team can bring around harmony in the fourth phase 'performing'.

Bridges' Transition Model: As per William Bridge's concept (appendix 4), people are fairly uneasy with adjustment, which is evident by the situation at Winfield Refuse Management Inc Raising Debt Vs Equity The circumstance can be seen as a typical training course of life if is researched as per Bridge's theory where he explains that individuals go through three stages of transition when they experience modification. 'Ending, losing and Letting go', The Neutral Zone and 'The New Beginning' (Bridges, 2004). When people exist with modification, they get in phase one and so there may be emotions like despair, unpredictability, irritation, temper, fear, rejection and disorientation.The scenario at the advertising division of Winfield Refuse Management Inc Raising Debt Vs Equity is comparable so Lewis can get comfortable with the concept that it is not amazing habits. In the second phase, there might be a requirement to connect the space in between the brand-new and also old society so Lewis might need to face this challenge once Krasnow leaves. There might be low spirits as well as reduced efficiency at this stage which should not be taken as a setback. It is during this stage that Lewis will certainly need to provide guidance to the division so that they can find an orientation. It can be seen just how Krasnow has already made this change much easier by making Lewis get involved in the department a year before his actual departure. As per Bridges' Design, stage 3 will certainly cause visibility to understanding, High power and also commitment as individuals will accept the modification (Bridges, 2004).
Vrio Analysis
Maslow's Requirement pecking order: The OB problem related to insecurity at the work environment has been activated to start with by the modification in administration as well as secondly by the truth that the merging will no more be started. Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has discusses the significance of 'security requires as being a lower degree demand of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the requirement to feel protected and unharmed' goes to the second degree of demands. Prior to an employee can be made to create mentally, he needs to have his 'Physiological 'as well as 'Safety' requires fulfilled. This indicates that unless the personnel are made to feel protected concerning their present work standing in Winfield Refuse Management Inc Raising Debt Vs Equity they may not reach 'Self-Fulfillment'. (King, 2009).

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



Ramification of Analysis.

The OB analysis has actually looked at different concepts to recognize how to deal with the current scenario at hand. The adhering to 3 alternatives have actually been recommended to help Lewis handle the business obstacles in the advertising department. Each of these options has actually been proposed for relieving the shift required to bring the marketing department in line with the requirements of the marketplace and also for making the social adjustment that would adhere to as soon as the current leader leaves.

Integration of advertising and marketing features. Separating Adverting and also Manufacturing features. Combination of Marketing with Workflow.

Analysis of Alternatives.

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

The benefit of this strategy is that it will certainly integrate the two functions while minimizing the need for employing an extra source for advertising and marketing. Lewis would certainly be heading the advertising division as well as in any kind of case her replacement would be needed for the present function that she is performing. The disadvantage of this alternative is that exterior hiring might cause animosity from internal personnel that might be looking at the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Manufacturing: Offered the affordable stress and also excellent quality job required from the advertising agency, it is recommended that Lewis should permit the production system to be a different function from the advertising and marketing system. Given that a lot of advertising agencies had these two functions as different units, it makes even more feeling to adhere to the standard. Along with this, both features might be able to concentrate on their core triggers extra successfully. However, the drawback of this approach would be that additional expenses would certainly have to be borne for establishing separate manufacturing functions. A manufacturing head may have to be worked with which could boost overheads for the organization.

Assimilation of Marketing with Operations: Because Lewis is already taking treatment of the advertising and marketing as well as procedures divisions all at once; it makes sense to incorporate the 2 features considering that she has actually been successfully taking care of both ends. The fact that Lewis has to adjust her administration design for the advertising and marketing department suggests that these 2 divisions would be culturally diverse.

Suggestion.



An examination of the 3 alternatives indicates that assimilation of marketing and procedures would certainly not be a possible move because of the vast differences between the two divisions although that presently Lewis is dealing with both. While separation of the manufacturing feature may have been a beneficial action for the marketing department, the truth that it would certainly imply putting a third function under Lewis's wing suggests this must be avoided too. The integration of the marketing division is the best choice in terms of getting the optimum results from the department. An activity plan for this choice is talked about listed below.

Activity Strategy.
Recommendation
Lewis will 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 location as SVP of marketing and advertising.

Production feature will certainly continue to be component of advertising and marketing under advertising and marketing feature.

Lewis will separate herself from operations.

An autonomous leadership style with staff member empowerment will be made use of in advertising and marketing division.

Open up door plan as well as emphasis on cross departmental interaction will be focused on removing discord.

Contingency plan.

If the integration does not work out as prepared, a backup strategy would follow which would separate the manufacturing feature from the advertising and marketing feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising and marketing department without an SVP. Because case the manufacturing function will certainly be divided by placing it under an SVP manufacturing.