Xedia And Silicon Valley Bank A Case Study Analysis


Home >> Harvard >> Xedia And Silicon Valley Bank A >>

Xedia And Silicon Valley Bank A Case Study Solution

Background and Facts

Xedia And Silicon Valley Bank A a workplace materials retailer for little and also average sized services has actually lately been involved in preparing for a merging with its rival Home Deport, which has influenced effectiveness levels in departmentswith the elderly supervisor involved in lawful problems put forth by the government Profession Payment. With the Advertising Head advancing the information of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the duty in the future. With difficulties in the form of a prospective social modification as well as low employee morale, the company needs a total reengineering initiative at the marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible cultural change at the marketing department of Xedia And Silicon Valley Bank A is raising unpredictability in the workplace resulting in various challenges for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in impacting tactical choices since Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Trade Payment's intervention while doing so. Offered the fact that the shop has a global existence with branches in UK, USA, Canada as well as Germany, political consider each of these countries may have the ability to influence performance or tactical goals. Federal Trade Compensation's antitrust suit against the merger occupied valuable time of the organization's elderly monitoring recommending that 'political' factors can have major ramifications for an international business.

Economic Factors: Economic factors such as the appearance of small companies in the worldwide circumstance suggest that Xedia And Silicon Valley Bank A is prospering in an atmosphere where there is prospective development of organisations. Truth that shop consumers are mainly looking for workplace products for home offices recommends that the market has a climbing trend of business owners as well as house based services.

Social factors: Social fads in the economy show that consumers are seeking benefit in addition to attractive prices. Market research demonstrates how the consumer for Xedia And Silicon Valley Bank A lacks recognition concerning discovering solutions which can offer a mix of comfort and low costs.

Technological factors: Innovation plays a crucial duty in Xedia And Silicon Valley Bank A's organisation approach specifically as the company is piloting Innovation centers which would certainly use innovation sales and assistance in the kind of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Effects.

Several underlying Organizational Habits problems can be seen in Xedia And Silicon Valley Bank A's case as highlighted in this section.

Worries about social modification: There is worry concerning a cultural adjustment that would certainly occur once Todd Krasnow leaves from his position as the Executive Vice President of Marketing with most of the team member already revealing discontent over this prospective relocation. This anticipated change has produced stress in the workplace which has been coupled with the past anxiety of preparing the company for a potential merger with House Deport.
Pest Analysis
Demanding Task Environment for Newcomers: There is lack of employees that can match the demanding environment of a busy company. Not only does this lead to trouble in finding the appropriate people, it places tension on new hires as can not withstand the speed and also stress that the company anticipates them to bear.

Double Reporting Lines: Newbies locate this organizational culture difficult and also hard to cope with especially as populated line connections are indicated to be weaker in general and unbiased setting as well as efficiency examination is still done by the solid line supervisor. This indicates that beginners can shed clearness about their corresponding duties and purposes specifically as populated line coverage does not keep them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles even though it had been hypothesized that the latter would certainly take Krasnow's position came as an impact to her spirits. Lewis might have been capable and proper for the job but the truth that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Task Insecurity: Anxiety and also instability can be determined as 2 significant problems that Lewis would be taking care of especially as the merging has actually now be cancelled as well as 2 elderly executives of the advertising department would be leaving. The whole obligation of the department would certainly be dropping on Lewis's shoulders that would not simply be in charge of brining regarding a social change however would additionally need to verify herself in her brand-new duty.

Incompatible Administration Design of Leader: Lewis's management style and also its incompatibility with the advertising and marketing department's function can additionally be seen as an OB difficulty particularly as she has actually been made use of to handling concerns in the procedures division where employees are shown to focus on processes as well as obtain them right. The marketing department on the various other hand can be viewed as a group of individuals who are utilized to being nurtured by Krasnow who focused more on result than processes.

Interdepartmental Disagreements: Interdepartmental arguments between three departments, advertising, merchandizing as well as procedures specifically over the allowance of the marketing mix can be identified as an additional OB issue. Although the marketing department does not share the same vision as the various other 2 divisions concerning the aloocation of the marketing mix twoards promos and advertsing, the merchandizing as well as operations departments do not concur over the advertising mix allowance among one another either.

Fragmentation in Advertising Department: Fragmentation between the marketing and advertising divisions can be determined as one more OB problem which could require additional focus. The fact that the advertising and marketing sections in the marketing division are detached is preventing both departments from obtaining from each various other's experience and competence. Combination of marketing with merchandising as well as operations would become more difficult if the advertising and marketing division itself is degenerated which can be another potential OB issue.

Xedia And Silicon Valley Bank A Analysis

Numerous theories have actually been utilized to discuss the situations to get additional clearness about the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers think that juniors are easy and careless, have little passion as well as stand up to modification. The tough version of this theory stressed browbeating, tight controls, risks and also penalties. Gradually it generates low performance, subtle sabotage as well as rivalry (Offer, 2003). Although the situation at Xedia And Silicon Valley Bank A is not totally following Theory X, it can be seen that new hires are discovering this environment instead difficult which may at some point cause a better inclination of the administration in the direction of Theory X. According to McGregor's supported view, which he called Theory Y, the essential job of the monitoring is to organize organizational conditions to ensure that people can attain their own goals best by routing their initiatives in the direction of business benefits. If people find no fulfillment in their work, the administration would certainly have little selection but to rely on theory X and also exterior control (Offer, 2003). Also while evaluating Lewis's management style, theory X may have been suitable in the operations department somewhat yet the Advertising department would require reliance on Concept Y to get the creativity as well as originality from the teams.

Tuckman's Team effort Theory: As for Lewis's concern about bringing harmony between the marketing and advertising division is worried, this would originally result in clash as talked about by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). As per Tuckman's theory displayed in appendix 3, during the first phase of team advancement, people might not bond, as they are hectic locating their place in the team. By combining the marketing and advertising department's job, there may coincide first disconnect which might bring about the second stage of 'storming' where the groups test one another. Nevertheless, it is only during the third phase or 'norming' when they would collaborate to share ideas prior to the team can cause harmony in the fourth stage 'performing'.

Bridges' Transition Design: According To William Bridge's concept (appendix 4), individuals are fairly awkward with adjustment, which is evident by the situation at Xedia And Silicon Valley Bank A The scenario can be seen as a normal course of life if is researched based on Bridge's concept where he discusses that people go through three phases of transition when they experience modification. 'End, shedding and also Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When individuals are presented with modification, they go into stage one and so there might be emotions like despair, unpredictability, stress, temper, concern, rejection and disorientation.The situation at the advertising and marketing division of Xedia And Silicon Valley Bank A is similar so Lewis can get comfortable with the concept that it is not extraordinary actions. In the second stage, there might be a requirement to bridge the space between the new and old culture so Lewis might have to face this challenge once Krasnow leaves. There might be low morale and reduced efficiency at this phase which should not be taken as a setback. It is throughout this stage that Lewis will certainly need to give assistance to the division to make sure that they can locate an orientation. It can be seen just how Krasnow has currently made this change less complicated by making Lewis obtain involved in the division a year prior to his actual departure. Based on Bridges' Design, stage 3 will bring about visibility to discovering, High power and commitment as people will certainly accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has reviews the value of 'safety requires as being a reduced degree need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel safe and out of risk' is at the second level of demands. Prior to a staff member can be made to develop emotionally, he needs to have his 'Physical 'as well as 'Security' requires satisfied.

SWOT Analysis for Xedia And Silicon Valley Bank A Case Study

Implication of Analysis.

The OB analysis has taken a look at numerous concepts to comprehend exactly how to cope with the current situation at hand. The following three choices have been recommended to aid Lewis take care of the organizational challenges in the advertising and marketing division. Each of these alternatives has actually been proposed for reducing the transition needed to bring the advertising department in line with the requirements of the market and also for making the social adjustment that would follow once the present leader leaves.

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

Evaluation of Alternatives.

Combination of Advertising And Marketing & Advertising Functions: The internal advertising and marketing company of Xedia And Silicon Valley Bank A is already toughness for the company in regards to saving up on expenses associated with advertising and marketing as well as promo. Considering that no brand-new employment has been done after Bridget Cole's separation with the reporting line being straight designated to Krasnow for the advertising and marketing function, this is a beneficial chance for incorporating the advertising and marketing functions. Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merger days has competence in business-to-business marketing together with company and also retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to handle both marketing and advertising features.

The benefit of this technique is that it will incorporate the two features while reducing the requirement for employing an additional source for advertising. In addition to this, Lewis would certainly be heading the marketing division and in any case her substitute would be required for the existing function that she is carrying out. The downside of this option is that outside hiring may produce animosity from inner employees who might be considering the position of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Production: Provided the competitive pressures and also high top quality work required from the advertising company, it is suggested that Lewis ought to allow the manufacturing device to be a separate function from the advertising and marketing unit. Because the majority of advertising and marketing firms had these 2 functions as separate units, it makes even more feeling to adhere to the standard.

Integration of Advertising with Procedures: Because Lewis is already caring for the marketing as well as operations departments at the same time; it makes good sense to incorporate both functions given that she has been effectively looking after both ends. The truth that the two divisions already have significant differences over allocation of resources recommends that this integration might be able to bring about consistency specifically as Lewis would certainly be heading both ends.However there are different negative aspects of this action specifically as it would put too much concern over Lewis's shoulders. The reality that Lewis has to adjust her administration style for the marketing division suggests that these 2 divisions would be culturally diverse. Lewis might not be able to use one kind of leadership style to both divisions which might result in ineffectiveness in either one of the two functions.


An evaluation of the three options indicates that combination of advertising and marketing and also procedures would certainly not be a feasible step because of the huge distinctions between the two departments although that presently Lewis is dealing with both. While separation of the production feature may have been a favorable step for the marketing division, the fact that it would certainly suggest positioning a 3rd function under Lewis's wing means this should be avoided. The integration of the marketing division is the most effective alternative in terms of obtaining the ideal arise from the division. An activity prepare for this alternative is discussed listed below.

Activity Plan.
Lewis will certainly take over the role of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be merged.

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

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

Lewis will certainly separate herself from operations.

A democratic management style with worker empowerment will certainly be utilized in advertising and marketing division.

Open up door policy and emphasis on cross department communication will certainly be aimed at eliminating disharmony.

Backup plan.

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