Wpp Group And Its Acquisitions Case Study Solution


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Wpp Group And Its Acquisitions Case Study Analysis

Background and Facts

Wpp Group And Its Acquisitions a workplace products store for small as well as moderate sized companies has lately been associated with planning for a merger with its rival Home Deport, which has affected performance degrees in departmentswith the senior supervisor involved in legal problems put forth by the federal Profession Compensation. With the Advertising Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the current head of operations has actually been asked to take the duty in the future. With obstacles in the form of a possible cultural change and also reduced staff member morale, the organization requires a complete reengineering initiative at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The possible cultural modification at the advertising department of Wpp Group And Its Acquisitions is enhancing unpredictability in the workplace bring about different difficulties for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in influencing strategic decisions considering that Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Trade Payment's intervention in the process. Given the reality that the store has a global existence with branches in UK, U.S.A., Canada and also Germany, political consider each of these countries might be able to influence performance or calculated objectives. Federal Profession Commission's antitrust fit against the merging used up important time of the organization's elderly monitoring suggesting that 'political' factors can have major effects for an international business.

Economic Factors: Economic factors such as the development of small companies in the global scenario recommend that Wpp Group And Its Acquisitions is prospering in an atmosphere where there is possible growth of services. Fact that store customers are mainly looking for office products for house offices recommends that the market has a climbing fad of entrepreneurs and also house based services.

Social factors: Social patterns in the economy reveal that consumers are searching for benefit as well as attractive prices. Market research demonstrates how the consumer for Wpp Group And Its Acquisitions lacks recognition about discovering services which can offer a mix of ease and also low costs.

Technological factors: Modern technology plays a vital role in Wpp Group And Its Acquisitions's company technique particularly as the company is piloting Modern technology facilities which would certainly offer modern technology sales as well as support in the kind of memory upgrades, outer setups. (Recap of PARASITE in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Business Behavior concerns can be seen in Wpp Group And Its Acquisitions's case as highlighted in this area.

Apprehensions regarding cultural adjustment: There is apprehension regarding a social modification that would happen as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with the majority of the employee currently showing unhappiness over this potential action. This expected adjustment has actually developed tension in the office which has been paired with the past stress of preparing the firm for a potential merging with House Deport.
Pest Analysis
Stressful Task Environment for Newcomers: There is scarcity of employees that can match the stressful setting of a hectic company. Not just does this result in trouble in locating the appropriate people, it puts stress and anxiety on brand-new hires as can not withstand the rate and also stress that the company anticipates them to birth.

Double Coverage Lines: Newcomers find this organizational society cumbersome and also tough to deal with especially as populated line relationships are indicated to be weak in general and unbiased setting and also efficiency evaluation is still done by the strong line supervisor. This implies that beginners can shed quality about their particular duties and also goals particularly as dotted line coverage does not maintain them in direct interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had been speculated that the latter would take Krasnow's position came as a blow to her spirits. Lewis might have been qualified and appropriate for the job however the truth that Kransnow's departure would make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Worry & Job Insecurity: Anxiety as well as insecurity can be identified as two significant worries that Lewis would certainly be dealing with especially as the merging has currently be cancelled and 2 senior executives of the advertising department would be leaving. The entire obligation of the division would be dropping on Lewis's shoulders that would certainly not simply be in charge of brining about a social change but would additionally need to show herself in her new function.

Inappropriate Management Design of Leader: Lewis's management style and also its conflict with the marketing department's function can additionally be seen as an OB challenge specifically as she has actually been utilized to dealing with problems in the procedures department where workers are instructed to focus on procedures and also obtain them right. The marketing department on the other hand can be viewed as a group of individuals who are used to being nurtured by Krasnow who concentrated a lot more on output than processes.

Interdepartmental Arguments: Interdepartmental arguments in between three departments, marketing, merchandizing and operations specifically over the allotment of the advertising and marketing mix can be recognized as another OB worry. Although the advertising and marketing division does not share the same vision as the various other 2 divisions concerning the aloocation of the advertising mix twoards promos and advertsing, the merchandizing as well as procedures divisions do not concur over the advertising mix allowance amongst each other either.

Disintegration in Marketing Department: Fragmentation in between the marketing and advertising departments can be recognized as an additional OB concern which could need additional focus. The reality that the marketing and advertising sections in the advertising department are detached is preventing both divisions from acquiring from each other's experience and also proficiency. Assimilation of advertising and marketing with retailing as well as procedures would certainly end up being harder if the marketing division itself is broken down which can be an additional potential OB worry.

Wpp Group And Its Acquisitions Analysis

Numerous concepts have been utilized to clarify the conditions to get further quality about the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors believe that subordinates are passive and careless, have little ambition and stand up to change. The tough version of this theory stressed browbeating, limited controls, risks and punishments. Over time it generates low productivity, refined sabotage as well as rivalry (Offer, 2003). Although the situation at Wpp Group And Its Acquisitions is not totally following Concept X, it can be seen that new hires are locating this environment rather difficult which might eventually result in a higher disposition of the monitoring towards Theory X. Based on McGregor's promoted sight, which he called Concept Y, the important task of the management is to arrange organizational problems so that individuals can achieve their very own objectives best by routing their efforts in the direction of organizational incentives. If individuals find no contentment in their work, the monitoring would certainly have little choice however to rely on concept X as well as outside control (Deal, 2003). Also while examining Lewis's management style, concept X might have been suitable in the operations department somewhat yet the Marketing division would certainly need reliance on Theory Y so as to get the imagination and also originality from the teams.

Tuckman's Teamwork Theory: As far as Lewis's concern concerning bringing harmony in between the marketing and also marketing department is concerned, this would initially lead to contrast as discussed by Bruce Tuckman in his 'Team effort Concept'. By incorporating the advertising as well as advertising and marketing division's work, there might be the exact same initial disconnect which could lead to the second phase of 'storming' where the groups challenge one an additional.

Bridges' Transition Model: Based On William Bridge's theory (appendix 4), people are quite unpleasant with modification, which is apparent by the circumstance at Wpp Group And Its Acquisitions The circumstance can be viewed as a regular program of life if is researched according to Bridge's theory where he clarifies that people go through three phases of shift when they experience modification. 'Ending, losing and Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people exist with adjustment, they enter stage one therefore there may be emotions like sadness, unpredictability, aggravation, temper, worry, rejection and disorientation.The circumstance at the marketing department of Wpp Group And Its Acquisitions is comparable so Lewis can obtain comfy with the suggestion that it is not phenomenal habits. In the 2nd stage, there may be a need to connect the gap in between the new and old society so Lewis might have to face this ordeal once Krasnow leaves. There may be low spirits and also low productivity at this phase which ought to not be taken as a problem. It is during this stage that Lewis will certainly need to provide assistance to the division so that they can locate a sense of direction. It can be seen how Krasnow has actually already made this change less complicated by making Lewis obtain associated with the department a year prior to his actual separation. As per Bridges' Version, stage 3 will certainly produce openness to understanding, High power and also dedication as individuals will accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Need hierarchy: The OB concern pertaining to instability at the office has actually been set off to start with by the adjustment in administration as well as second of all by the fact that the merger will certainly no longer be started. Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has discusses the significance of 'safety needs as being a reduced degree demand of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the requirement to feel secure as well as out of danger' goes to the 2nd level of demands. Before a staff member can be made to create mentally, he requires to have his 'Physiological 'as well as 'Security' requires satisfied. This indicates that unless the workers are made to feel safe concerning their existing employment status in Wpp Group And Its Acquisitions they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Wpp Group And Its Acquisitions Case Study

Effects of Analysis.

The OB analysis has actually considered numerous theories to understand exactly how to handle the present scenario available. The following three options have actually been suggested to help Lewis handle the business obstacles in the marketing department. Each of these choices has actually been proposed for alleviating the shift needed to bring the advertising and marketing department in line with the demands of the marketplace and also for making the cultural adjustment that would certainly comply with when the current leader leaves.

Integration of advertising and marketing functions. Separating Adverting as well as Manufacturing functions. Integration of Marketing with Operations.

Analysis of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis during the earlier merging days has competence in business-to-business advertising along with company as well as retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising to take care of both advertising as well as advertising functions.

The advantage of this method is that it will incorporate the two features while minimizing the demand for working with an additional source for marketing. In addition to this, Lewis would be heading the advertising department and also in any case her substitute would be needed for the current function that she is performing. The downside of this alternative is that exterior hiring might produce resentment from internal personnel that may be considering the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Manufacturing: Given the affordable pressures and high quality job called for from the advertising agency, it is advised that Lewis must enable the manufacturing system to be a different function from the marketing system. Since many advertising agencies had these 2 functions as different units, it makes even more sense to comply with the standard. Both features may be able to focus on their core triggers extra successfully. The downside of this approach would certainly be that extra expenses would have to be birthed for setting up separate production features. Along with this, a manufacturing head might have to be employed which can raise overheads for the company.

Assimilation of Advertising And Marketing with Workflows: Because Lewis is already taking care of the marketing and also procedures divisions all at once; it makes feeling to integrate the two functions since she has actually been effectively taking treatment of both ends. The fact that Lewis has to adapt her administration style for the advertising and marketing department recommends that these 2 departments would be culturally varied.


An assessment of the three alternatives indicates that assimilation of advertising as well as operations would certainly not be a viable relocation due to the large differences in between the 2 divisions in spite of the fact that presently Lewis is handling both. While splitting up of the production feature may have been a favorable step for the advertising and marketing division, the truth that it would certainly imply putting a 3rd function under Lewis's wing suggests this must be stayed clear of.

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

Advertising and Marketing features would be merged.

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

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

Lewis will certainly separate herself from operations.

An autonomous leadership design with worker empowerment will be used in advertising department.

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

Backup plan.

If the assimilation does not exercise as intended, a contingency plan would certainly follow which would separate the production function from the advertising function to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will certainly be heading the marketing division without an SVP. Because case the manufacturing function will definitely be divided by positioning it under an SVP manufacturing.