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


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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 a workplace materials retailer for tiny as well as average sized organisations has actually recently been involved in planning for a merging with its rival Home Deport, which has actually affected effectiveness levels in departmentswith the senior supervisor involved in legal difficulties put forth by the federal Trade Payment. With the Advertising Head advancing the news of his departure from the company in one year, Jeannie Lewis, the present head of operations has been asked to take the role in the near future. With obstacles in the kind of a possible social change and low worker spirits, the organization requires a total reengineering effort at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural adjustment at the advertising department of Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies is raising unpredictability in the workplace bring about various challenges 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 significant role in influencing tactical decisions because Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Profession Compensation's intervention at the same time. Provided the fact that the store has a global existence with branches in UK, U.S.A., Canada and Germany, political consider each of these countries may be able to influence efficiency or strategic goals. Federal Profession Commission's antitrust match against the merging occupied valuable time of the company's elderly monitoring suggesting that 'political' factors can have severe effects for a worldwide service.

Economic Factors: Economic factors such as the development of small businesses in the worldwide scenario recommend that Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies is prospering in an atmosphere where there is potential growth of companies. In addition to this, fact that store customers are mainly seeking office products for home offices recommends that the market has an increasing trend of entrepreneurs and also online organisations.

Social factors: Social fads in the economy reveal that clients are searching for ease as well as attractive costs. Market research shows how the consumer for Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies does not have awareness about finding options which can provide a mix of comfort and also inexpensive.

Technological factors: Modern technology plays an important duty in Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies's organisation method particularly as the organization is piloting Modern technology centers which would certainly use modern technology sales as well as assistance in the form of memory upgrades, peripheral setups. (Recap of PEST in appendix 2).

OB Issues and also Effects.

Numerous underlying Organizational Behavior problems 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 concerning social modification: There is uneasiness regarding a social adjustment that would take place as soon as Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with the majority of the personnel already revealing unhappiness over this possible move. This expected change has developed anxiety in the work environment which has actually been paired with the past stress and anxiety of preparing the company for a prospective merging with House Deport.
Pest Analysis
Demanding Work Setting for Newcomers: There is shortage of personnel that can match the demanding setting of a busy company. Not just does this lead to trouble in discovering the appropriate people, it places anxiety on new hires as can not withstand the speed and also stress that the organization expects them to birth.

Dual Coverage Lines: Beginners find this business society troublesome as well as tough to handle specifically as dotted line partnerships are indicated to be weaker generally as well as objective setting and efficiency evaluation is still done by the solid line supervisor. This indicates that newbies might shed clearness regarding their particular duties and objectives particularly as populated line reporting does not maintain them in straight interaction with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles even though it had been guessed that the last would certainly take Krasnow's position came as an impact to her morale. Lewis may have been qualified and proper for the work yet the fact that Kransnow's departure would make Coles a direct report to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Job Instability: Fear and insecurity can be recognized as two major issues that Lewis would certainly be handling specifically as the merging has actually currently be terminated as well as two senior executives of the marketing division would be leaving. The entire obligation of the division would certainly be falling on Lewis's shoulders that would not just supervise of brining concerning a social modification but would also need to verify herself in her new role.

Incompatible Monitoring Style of Leader: Lewis's monitoring design as well as its incompatibility with the advertising and marketing department's duty can also be seen as an OB difficulty particularly as she has been made use of to handling concerns in the operations division where personnel are instructed to focus on procedures and get them right. The marketing department on the other hand can be viewed as a team of individuals that are made use of to being supported by Krasnow who concentrated much more on outcome than procedures.

Interdepartmental Differences: Interdepartmental disagreements between 3 departments, marketing, merchandizing and procedures specifically over the allowance of the marketing mix can be determined as an additional OB problem. Although the advertising and marketing division does not share the exact same vision as the various other two departments concerning the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and also operations departments do not concur over the advertising mix allocation amongst one another either.

Fragmentation in Marketing Division: Fragmentation in between the advertising and marketing departments can be identified as an additional OB problem which can require additional attention. The reality that the marketing and advertising sections in the marketing division are separated is preventing both departments from gaining from each various other's experience and knowledge. Combination of advertising with retailing as well as operations would certainly become harder if the advertising division itself is disintegrated which can be one more possible OB concern.

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

Different concepts have been utilized to describe the circumstances to get additional clearness concerning the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers think that subordinates are easy and lazy, have little aspiration and also resist modification. The circumstance at Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies is not completely following Theory X, it can be seen that brand-new hires are finding this setting rather stressful which might at some point lead to a greater inclination of the monitoring towards Theory X. Even while evaluating Lewis's monitoring design, theory X may have been appropriate in the operations department to some extent yet the Advertising department would certainly need dependence on Theory Y in order to obtain the creativity and also creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's worry regarding bringing harmony in between the advertising as well as marketing division is concerned, this would initially lead to clash as reviewed by Bruce Tuckman in his 'Synergy Concept'. By integrating the advertising as well as marketing division's job, there might be the exact same initial separate which can lead to the 2nd phase of 'storming' where the teams test one another.

Bridges' Change Model: Based On William Bridge's concept (appendix 4), people are quite uneasy with adjustment, which is noticeable by the situation at Corporate Governance In Publicly Traded Small Firms A Study Of Canadian Venture Exchange Companies The circumstance can be viewed as a typical course of life if is examined as per Bridge's theory where he describes that people experience 3 stages of transition when they experience change. 'End, losing and also Releasing', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When individuals exist with change, they get in stage one therefore there may be feelings like unhappiness, unpredictability, irritation, temper, concern, denial and disorientation.The circumstance 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 comfy with the concept that it is not extraordinary habits. In the second stage, there may be a demand to link the void between the brand-new as well as old culture so Lewis might have to encounter this ordeal as soon as Krasnow leaves. There might be reduced morale and reduced productivity at this phase which ought to not be taken as an obstacle. It is during this stage that Lewis will certainly need to offer advice to the department to ensure that they can find an orientation. It can be seen how Krasnow has actually currently made this transition easier by making Lewis obtain associated with the division a year prior to his actual separation. According to Bridges' Model, phase 3 will certainly cause visibility to knowing, High energy and also dedication as individuals will certainly accept the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has goes over the value of 'protection needs as being a reduced degree demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to feel safe and secure and out of risk' is at the second level of requirements. Prior to a worker can be made to develop mentally, he needs to have his 'Physical 'as well as 'Security' needs satisfied.

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

Effects of Analysis.

The OB analysis has actually checked out numerous concepts to recognize just how to manage the current circumstance available. The adhering to three choices have actually been suggested to aid Lewis manage the organizational challenges in the advertising department. Each of these choices has actually been proposed for reducing the change required to bring the advertising and marketing department in line with the requirements of the marketplace and also for making the cultural change that would adhere to once the current leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting and Production features. Integration of Advertising And Marketing with Workflow.

Analysis of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merger days has experience in business-to-business marketing along with firm and retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to handle both advertising and marketing as well as advertising functions.

The advantage of this approach is that it will certainly incorporate the two features while minimizing the demand for hiring an extra resource for advertising and marketing. Lewis would certainly be heading the advertising division and in any type of case her substitute would certainly be required for the existing role that she is doing. The drawback of this alternative is that external hiring might bring about animosity from internal workers that may be looking at the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Manufacturing: Offered the competitive stress and also high quality work needed from the advertising agency, it is recommended that Lewis should enable the manufacturing unit to be a separate feature from the advertising system. Considering that the majority of advertising agencies had these two features as separate systems, it makes even more feeling to adhere to the norm. In addition to this, both functions might have the ability to concentrate on their core activates more effectively. The negative aspect of this technique would certainly be that added costs would certainly have to be borne for setting up different manufacturing functions. Along with this, a production head may need to be worked with which might increase expenses for the company.

Combination of Marketing with Procedures: Considering that Lewis is already caring for the advertising and also operations departments concurrently; it makes sense to incorporate the two features considering that she has been effectively looking after both ends. The fact that the two departments currently have significant differences over allowance of resources recommends that this assimilation might be able to cause consistency specifically as Lewis would be heading both ends.However there are various negative aspects of this relocation especially as it would put way too much worry over Lewis's shoulders. The reality that Lewis needs to adapt her monitoring style for the advertising division suggests that these two departments would be culturally varied. In addition to this, Lewis might not be able to use one kind of leadership design to both divisions which could cause inefficiency in either among the two functions.


An evaluation of the 3 options suggests that integration of advertising and also procedures would not be a feasible action due to the large distinctions between the 2 divisions regardless of the fact that presently Lewis is taking care of both. While splitting up of the manufacturing function may have been a positive step for the advertising and marketing department, the truth that it would certainly mean positioning a third feature under Lewis's wing implies this ought to be prevented.

Action Strategy.
Lewis will take over the duty of EVP Advertising after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

Production feature will remain part of advertising under advertising function.

Lewis will separate herself from operations.

A democratic leadership style with staff member empowerment will be made use of in advertising department.

Open up door plan and also focus on cross department communication will certainly be aimed at getting rid of discord.

Contingency plan.

If the integration does not work out as prepared, a backup strategy would certainly comply with which would separate the manufacturing function from the marketing feature to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising division without an SVP. Because case the production feature will certainly be separated by positioning it under an SVP manufacturing.