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Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies Case Study Analysis

CASE SOLUTION

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Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies Case Study Analysis

Background and Facts

Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies an office materials retailer for little and also average sized businesses has actually lately been associated with planning for a merging with its rival House Deport, which has affected effectiveness degrees in departmentswith the senior manager involved in lawful issues put forth by the federal Trade Commission. With the Marketing Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the duty in the future. With challenges in the kind of a possible social adjustment as well as low employee spirits, the organization wants a full reengineering initiative at the advertising division.

Problem Declaration

The potential social adjustment at the advertising and marketing department of Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies is increasing unpredictability in the workplace causing various obstacles for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing strategic decisions considering that Stapes Inc. had to abandon its plans of merging with Office Deport after the Federal Trade Payment's treatment while doing so. Offered the reality that the store has an international visibility with branches in UK, USA, Canada and Germany, political consider each of these nations may be able to influence efficiency or critical objectives. Federal Profession Payment's antitrust match against the merger occupied valuable time of the company's senior administration recommending that 'political' factors can have major effects for a global organisation.

Economic Factors: Economic factors such as the development of local business in the worldwide circumstance suggest that Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies is flourishing in a setting where there is potential development of services. Along with this, truth that store customers are mainly trying to find office materials for office suggests that the marketplace has an increasing pattern of business owners and home businesses.

Social factors: Social patterns in the economy reveal that consumers are trying to find ease in addition to attractive costs. Market research demonstrates how the customer for Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies does not have recognition about finding solutions which can provide a combination of ease and affordable.

Technological factors: Innovation plays a crucial duty in Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies's company method specifically as the company is piloting Innovation facilities which would certainly use technology sales as well as assistance in the type of memory upgrades, outer installations. (Recap of INSECT in appendix 2).

OB Issues and Symptoms.

Several underlying Business Habits concerns can be seen in Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies's case as highlighted in this section.

Concerns about social change: There is concern regarding a social modification that would certainly happen once Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Marketing with most of the team member currently showing unhappiness over this prospective step. This anticipated adjustment has actually produced anxiety in the work environment which has been coupled with the previous tension of preparing the company for a prospective merging with House Deport.

Demanding Work Setting for Newcomers: There is lack of workers that can match the difficult atmosphere of a busy company. Not just does this lead to problem in locating the appropriate people, it puts tension on new hires as can not endure the speed and also pressure that the company anticipates them to bear.

Double Reporting Lines: Novices find this organizational culture cumbersome and also difficult to cope with specifically as dotted line relationships are implied to be weaker in general as well as objective setup and also performance examination is still done by the solid line supervisor. This means that novices might shed quality regarding their particular roles and also objectives particularly as populated line coverage does not maintain them in direct communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles although it had actually been speculated that the latter would take Krasnow's setting came as an impact to her morale. Lewis may have been qualified as well as proper for the task but the reality that Kransnow's departure would make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Task Instability: Anxiety and also insecurity can be determined as two significant problems that Lewis would certainly be dealing with particularly as the merging has now be cancelled and 2 senior executives of the advertising and marketing department would certainly be leaving. The entire duty of the department would certainly be dropping on Lewis's shoulders that would certainly not just supervise of brining about a social adjustment but would also have to verify herself in her new duty.

Inappropriate Monitoring Design of Leader: Lewis's management design and also its conflict with the marketing division's function can likewise be seen as an OB challenge particularly as she has actually been made use of to taking care of problems in the procedures department where employees are shown to focus on processes and get them. The advertising department on the various other hand can be seen as a team of individuals who are used to being nurtured by Krasnow who concentrated more on result than procedures.

Interdepartmental Differences: Interdepartmental disagreements between 3 divisions, advertising, merchandizing as well as operations specifically over the allotment of the advertising mix can be determined as an additional OB issue. Although the advertising and marketing division does not share the very same vision as the other 2 departments relating to the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and also procedures divisions do not agree over the advertising mix appropriation among one another either.

Disintegration in Advertising And Marketing Division: Disintegration between the advertising and marketing departments can be determined as another OB issue which might need additional attention. The fact that the marketing and advertising areas in the marketing department are detached is preventing both departments from obtaining from each various other's experience and competence. Combination of advertising with merchandising and operations would come to be more difficult if the advertising and marketing department itself is degenerated which can be an additional potential OB problem.

Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies Analysis

Different theories have been used to explain the conditions to obtain additional clarity regarding the scenario handy.

McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors think that juniors are easy and also careless, have little ambition as well as resist change. The tough variation of this concept stressed threat, limited controls, threats and also punishments. In time it creates low productivity, subtle sabotage and also competition (Offer, 2003). Although the scenario at Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies is not totally complying with Concept X, it can be seen that new hires are discovering this environment rather demanding which may eventually result in a greater inclination of the management towards Concept X. As per McGregor's advocated sight, which he called Concept Y, the essential task of the administration is to organize organizational conditions to ensure that people can accomplish their own objectives best by directing their initiatives in the direction of business benefits. If individuals find no complete satisfaction in their job, the management would have little option however to depend on theory X as well as external control (Bargain, 2003). Even while assessing Lewis's administration design, theory X may have been suitable in the procedures department somewhat but the Advertising department would certainly call for reliance on Concept Y to get the creativity as well as creativity from the teams.

Tuckman's Teamwork Theory: As much as Lewis's concern concerning bringing harmony between the advertising as well as advertising and marketing division is concerned, this would originally lead to clash as discussed by Bruce Tuckman in his 'Team effort Concept'. By combining the advertising and marketing division's work, there might be the very same preliminary detach which could lead to the 2nd stage of 'storming' where the groups test one an additional.

When individuals are provided with change, they enter phase one as well as so there may be emotions like unhappiness, uncertainty, aggravation, anger, concern, rejection and also disorientation.The scenario at the marketing department of Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies is similar so Lewis can obtain comfortable with the suggestion that it is not amazing behavior. It is during this phase that Lewis will certainly have to offer guidance to the department so that they can find a sense of direction. It can be seen just how Krasnow has actually currently made this transition easier by making Lewis obtain entailed in the division a year prior to his actual departure.

Maslow's Demand power structure: The OB issue pertaining to instability at the workplace has been triggered firstly by the adjustment in monitoring and also second of all by the fact that the merger will certainly no longer be launched. Abraham Maslow in his Concept of 'Demands Hierarchy' (appendix 5) has talks about the value of 'safety and security requires as being a reduced degree need of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the need to really feel safe and secure as well as unharmed' goes to the second degree of needs. Prior to a worker can be made to establish mentally, he requires to have his 'Physical 'and also 'Safety' requires fulfilled. This shows that unless the workers are made to really feel secure concerning their current employment status in Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies Case Study



Ramification of Analysis.

The OB analysis has looked at various theories to comprehend exactly how to handle the present situation at hand. The following three options have been recommended to assist Lewis deal with the business challenges in the advertising and marketing department. Each of these alternatives has been recommended for reducing the change needed to bring the marketing department according to the demands of the market and for making the social adjustment that would comply with once the current leader leaves.

Integration of marketing and advertising functions. Dividing Adverting and also Manufacturing features. Integration of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Assimilation of Advertising & Advertising And Marketing Functions: The in-house advertising and marketing agency of Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies is already toughness for the organization in terms of conserving up on expenses associated with advertising and also promotion. Considering that no brand-new employment has been done after Bridget Cole's departure with the reporting line being directly appointed to Krasnow for the advertising and marketing function, this is a positive chance for incorporating the advertising and marketing functions. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merger days has expertise in business-to-business advertising and marketing together with firm and also retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to manage both marketing and advertising features.

The advantage of this approach is that it will integrate the two features while minimizing the requirement for working with an additional source for marketing. In addition to this, Lewis would be heading the marketing division as well as regardless her substitute would be required for the current role that she is carrying out. The drawback of this alternative is that outside hiring might produce animosity from inner personnel who may be considering the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and Manufacturing: Offered the competitive pressures as well as high quality work needed from the advertising and marketing firm, it is suggested that Lewis must permit the manufacturing device to be a different function from the advertising and marketing unit. Because a lot of advertising and marketing agencies had these 2 features as separate units, it makes even more feeling to follow the standard.

Assimilation of Advertising And Marketing with Procedures: Because Lewis is currently taking treatment of the advertising and marketing as well as procedures departments all at once; it makes sense to integrate the two functions since she has actually been efficiently taking treatment of both ends. The fact that Lewis has to adapt her management style for the advertising division suggests that these 2 departments would certainly be culturally varied.

Referral.



An analysis of the three alternatives indicates that assimilation of advertising as well as procedures would certainly not be a feasible relocation due to the huge distinctions between the 2 divisions regardless of the truth that currently Lewis is dealing with both. While splitting up of the production feature might have been a favorable move for the advertising and marketing department, the reality that it would certainly indicate positioning a third feature under Lewis's wing suggests this need to be prevented.

Activity Strategy.

Lewis will certainly take over the function of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Production feature will remain component of marketing under advertising feature.

Lewis will certainly divide herself from operations.

A democratic management design with worker empowerment will be used in advertising and marketing department.

Open door policy and also emphasis on cross departmental interaction will certainly be targeted at removing discord.

Backup plan.

If the assimilation does not work out as intended, a contingency plan would certainly adhere to which would divide the manufacturing feature from the advertising and marketing function to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising department without an SVP. Because case the manufacturing function will definitely be separated by putting it under an SVP manufacturing.