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Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd Case Study Solution

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Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd Case Study Analysis

Background and Facts

Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd an office products merchant for tiny and average sized companies has recently been associated with planning for a merger with its rival Residence Deport, which has actually affected efficiency levels in departmentswith the elderly manager associated with lawful complications put forth by the federal Trade Commission. With the Advertising Head advancing the news of his departure from the business in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the future. With challenges in the form of a prospective social adjustment and reduced worker morale, the organization needs a total reengineering initiative at the advertising division.

Problem Declaration
Porter's 5 Forces Analysis
The potential cultural modification at the advertising and marketing department of Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd is enhancing unpredictability in the workplace resulting in different difficulties 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 major role in affecting critical decisions because Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Profession Commission's treatment in the process. Provided the reality that the shop has a worldwide presence with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these nations might be able to impact performance or calculated goals. Federal Trade Compensation's antitrust match against the merger used up beneficial time of the organization's elderly management suggesting that 'political' factors can have serious ramifications for an international company.

Economic Factors: Economic factors such as the appearance of local business in the global circumstance suggest that Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd is prospering in an atmosphere where there is potential growth of companies. In addition to this, fact that shop consumers are primarily searching for workplace products for office recommends that the market has an increasing fad of business owners and also home based businesses.

Social factors: Social trends in the economy show that customers are seeking benefit as well as eye-catching prices. Marketing research shows how the consumer for Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd lacks understanding concerning finding options which can use a combination of ease as well as inexpensive.

Technical factors: Modern technology plays a vital function in Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd's service approach specifically as the company is piloting Innovation centers which would use technology sales and also assistance in the type of memory upgrades, outer installations. (Summary of PEST in appendix 2).

OB Issues and also Effects.

A number of underlying Business Behavior issues can be seen in Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd's case as highlighted in this area.

Uneasiness about cultural modification: There is worry about a cultural change that would occur as soon as Todd Krasnow leaves from his position as the Exec Vice President of Advertising with most of the employee currently revealing discontent over this potential step. This anticipated change has actually produced tension in the workplace which has been paired with the previous stress of preparing the firm for a possible merging with Residence Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is lack of employees that can match the difficult atmosphere of a busy company. Not just does this bring about difficulty in finding the right individuals, it places stress and anxiety on brand-new hires as can not withstand the pace and also pressure that the organization anticipates them to birth.

Double Coverage Lines: Beginners discover this organizational culture troublesome and also tough to deal with specifically as dotted line relationships are meant to be weak in general and unbiased setting and performance examination is still done by the strong line supervisor. This indicates that newbies might lose quality concerning their corresponding functions and goals particularly as dotted line coverage does not keep them in direct communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles although it had been guessed that the latter would certainly take Krasnow's position came as an impact to her morale. Lewis may have been capable and appropriate for the work however the fact that Kransnow's departure would make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Work Instability: Anxiety as well as instability can be identified as two major worries that Lewis would certainly be managing particularly as the merging has actually now be terminated as well as two elderly executives of the advertising and marketing division would be leaving. The entire obligation of the division would be falling on Lewis's shoulders that would not just supervise of brining regarding a social adjustment however would also have to show herself in her new duty.

Incompatible Administration Design of Leader: Lewis's administration design and its conflict with the marketing division's function can likewise be seen as an OB obstacle specifically as she has been used to managing problems in the procedures division where workers are instructed to concentrate on processes as well as get them. The marketing department on the various other hand can be seen as a group of individuals who are utilized to being nurtured by Krasnow that concentrated much more on outcome than procedures.

Interdepartmental Differences: Interdepartmental disputes in between 3 departments, marketing, merchandizing and procedures respectively over the allowance of the advertising mix can be recognized as one more OB worry. The advertising division does not share the exact same vision as the various other 2 departments relating to the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing and also operations departments do not agree over the marketing mix allotment among one an additional either.

Fragmentation in Advertising And Marketing Division: Fragmentation in between the advertising and marketing departments can be recognized as one more OB problem which could require further attention. The fact that the marketing and advertising areas in the advertising department are detached is stopping both divisions from acquiring from each other's experience and also competence. Combination of advertising with retailing as well as operations would end up being more difficult if the advertising and marketing department itself is broken down which can be one more potential OB problem.

Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd Analysis

Numerous theories have been used to discuss the situations to obtain further clarity about the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers believe that staffs are passive and also careless, have little ambition as well as withstand adjustment. The circumstance at Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd is not totally following Concept X, it can be seen that new hires are finding this atmosphere instead demanding which might ultimately lead to a higher inclination of the monitoring towards Concept X. Also while examining Lewis's administration design, theory X may have been ideal in the operations division to some level but the Advertising department would certainly require dependence on Concept Y in order to obtain the imagination as well as originality from the groups.

Tuckman's Teamwork Theory: As far as Lewis's concern regarding bringing harmony between the marketing and also marketing department is worried, this would initially lead to clash as reviewed by Bruce Tuckman in his 'Teamwork Theory'. By incorporating the advertising and marketing and also advertising department's work, there may be the very same initial disconnect which might lead to the second phase of 'storming' where the groups test one another.

Bridges' Shift Model: As per William Bridge's theory (appendix 4), people are rather unpleasant with change, which is evident by the circumstance at Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd The scenario can be seen as a typical training course of life if is examined based on Bridge's concept where he clarifies that people experience 3 stages of shift when they experience change. 'Ending, losing and also Releasing', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people are presented with adjustment, they go into phase one therefore there may be emotions like despair, uncertainty, disappointment, anger, fear, denial as well as disorientation.The scenario at the advertising division of Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd is comparable so Lewis can get comfortable with the idea that it is not phenomenal behavior. In the 2nd stage, there may be a requirement to connect the gap between the new and old society so Lewis might need to face this experience once Krasnow leaves. There might be reduced morale as well as reduced efficiency at this stage which ought to not be taken as a setback. It is throughout this phase that Lewis will need to give assistance to the division to ensure that they can find an orientation. It can be seen how Krasnow has currently made this shift easier by making Lewis obtain involved in the department a year prior to his real departure. As per Bridges' Version, phase 3 will produce visibility to discovering, High power and commitment as individuals will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB problem pertaining to insecurity at the work environment has actually been caused firstly by the adjustment in monitoring as well as second of all by the reality that the merging will no longer be started. Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has reviews the significance of 'safety and security needs as being a lower degree requirement of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the demand to really feel secure as well as untouched' is at the 2nd level of requirements. Prior to a staff member can be made to establish emotionally, he requires to have his 'Physical 'and 'Safety and security' requires satisfied. This shows that unless the personnel are made to feel protected about their present work status in Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd Case Study



Implication of Analysis.

The OB analysis has actually taken a look at various theories to comprehend exactly how to cope with the existing circumstance handy. The adhering to 3 alternatives have been suggested to help Lewis take care of the organizational challenges in the marketing department. Each of these alternatives has actually been proposed for easing the shift required to bring the marketing department in accordance with the requirements of the market as well as for making the cultural change that would comply with as soon as the present leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and Manufacturing functions. Assimilation of Marketing with Operations.

Analysis of Alternatives.

Combination of Advertising & Advertising And Marketing Functions: The internal advertising and marketing agency of Zenglibao An Internet Money Market Fund Run By Tianhong Asset Management Co Ltd is currently strength for the organization in terms of conserving up on overheads associated with advertising and also promotion. Because no brand-new recruitment has been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the advertising feature, this is a positive chance for integrating the marketing and advertising functions. Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merger days has experience in business-to-business advertising and marketing in addition to firm as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both advertising and marketing features.

The advantage of this method is that it will certainly integrate both functions while minimizing the demand for employing an added source for marketing. Along with this, Lewis would be heading the advertising division and also in any case her substitute would certainly be required for the present function that she is performing. The downside of this option is that external hiring might produce resentment from internal workers who may be considering the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Production: Offered the affordable stress and also high quality work needed from the advertising company, it is recommended that Lewis should enable the manufacturing unit to be a separate function from the marketing unit. Considering that most advertising firms had these two functions as different units, it makes more sense to adhere to the standard.

Assimilation of Advertising And Marketing with Procedures: Because Lewis is currently taking care of the advertising and also procedures divisions all at once; it makes feeling to incorporate the 2 features since she has actually been successfully taking care of both ends. The fact that Lewis has to adapt her management design for the advertising and marketing division suggests that these 2 divisions would certainly be culturally diverse.

Recommendation.



An evaluation of the 3 choices shows that assimilation of advertising and marketing and procedures would certainly not be a possible relocation as a result of the large differences in between both divisions despite the fact that currently Lewis is taking care of both. While separation of the manufacturing function may have been a beneficial relocation for the advertising and marketing department, the fact that it would suggest positioning a third feature under Lewis's wing indicates this should be stayed clear of. The combination of the marketing division is the most effective option in terms of obtaining the optimum arise from the department. An activity prepare for this option is discussed below.

Action Plan.
Recommendation
Lewis will take over the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would be merged.

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

Manufacturing function will certainly stay component of advertising under marketing feature.

Lewis will separate herself from procedures.

An autonomous management style with worker empowerment will certainly be made use of in marketing division.

Open up door plan and focus on cross departmental communication will certainly be targeted at eliminating disharmony.

Backup strategy.

If the assimilation does not work out as intended, a backup strategy would certainly follow which would certainly separate the manufacturing feature from the advertising function to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the manufacturing feature will most definitely be separated by putting it under an SVP production.