Michael Ovitz And The Walt Disney Co A Case Study Help


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Michael Ovitz And The Walt Disney Co A Case Study Solution

Background and Facts

Michael Ovitz And The Walt Disney Co A an office materials merchant for tiny and average sized organisations has actually recently been associated with planning for a merging with its rival Home Deport, which has impacted efficiency levels in departmentswith the senior manager involved in legal complications put forth by the federal Profession Commission. With the Marketing Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the near future. With challenges in the kind of a possible social adjustment and also reduced employee spirits, the company wants a full reengineering effort at the advertising and marketing division.

Trouble Statement

The potential social modification at the advertising and marketing division of Michael Ovitz And The Walt Disney Co A is raising unpredictability in the working environment causing numerous obstacles for the Jeannie Lewis who would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in affecting calculated decisions because Stapes Inc. needed to desert its plans of merging with Workplace Deport after the Federal Profession Payment's intervention while doing so. Given the fact that the shop has an international visibility with branches in UK, USA, Canada and Germany, political factors in each of these countries might be able to influence performance or calculated objectives. Federal Trade Compensation's antitrust suit against the merger occupied important time of the company's elderly management recommending that 'political' factors can have major implications for an international service.

Economic Factors: Economic factors such as the emergence of small companies in the international circumstance recommend that Michael Ovitz And The Walt Disney Co A is prospering in a setting where there is possible growth of companies. Truth that shop customers are primarily looking for workplace materials for home offices suggests that the market has an increasing pattern of entrepreneurs and residence based companies.

Social factors: Social trends in the economic situation show that consumers are looking for ease in addition to attractive rates. Market research shows how the client for Michael Ovitz And The Walt Disney Co A does not have understanding concerning finding services which can supply a mix of benefit as well as affordable.

Technological factors: Modern technology plays an important function in Michael Ovitz And The Walt Disney Co A's service method especially as the company is piloting Modern technology facilities which would certainly offer modern technology sales and assistance in the form of memory upgrades, outer setups. (Summary of INSECT in appendix 2).

OB Issues and also Symptoms.

A number of underlying Organizational Behavior issues can be seen in Michael Ovitz And The Walt Disney Co A's case as highlighted in this area.

Concerns concerning cultural change: There is apprehension regarding a cultural change that would occur when Todd Krasnow leaves from his placement as the Executive Vice President of Advertising And Marketing with most of the staff members already revealing discontent over this prospective relocation. This predicted adjustment has created tension in the office which has been paired with the past anxiety of preparing the company for a possible merger with House Deport.

Difficult Work Environment for Newcomers: There is shortage of personnel that can match the difficult setting of a fast-paced company. Not only does this bring about difficulty in locating the appropriate individuals, it places stress and anxiety on new hires as can not endure the speed and also stress that the organization anticipates them to birth.

Twin Coverage Lines: Novices find this business culture cumbersome and also difficult to manage especially as populated line connections are meant to be weaker in general as well as objective setup as well as performance examination is still done by the solid line supervisor. This means that newbies can shed clarity about their particular roles and also objectives particularly as populated line coverage does not maintain them in direct communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles despite the fact that it had actually been guessed that the last would take Krasnow's setting came as a strike to her morale. Lewis may have been qualified and also suitable for the job yet the reality that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from solutions.

Concern & Work Insecurity: Worry and also instability can be determined as two significant concerns that Lewis would be dealing with especially as the merger has currently be cancelled as well as 2 senior executives of the advertising and marketing division would certainly be leaving. The entire obligation of the division would be falling on Lewis's shoulders who would certainly not just be in charge of brining about a cultural change yet would certainly also need to verify herself in her new role.

Incompatible Management Design of Leader: Lewis's administration style and also its incompatibility with the advertising division's role can also be seen as an OB obstacle particularly as she has been utilized to managing issues in the procedures division where personnel are educated to focus on procedures and also get them. The advertising department on the various other hand can be viewed as a group of individuals that are made use of to being supported by Krasnow who concentrated extra on output than procedures.

Interdepartmental Arguments: Interdepartmental disagreements between 3 departments, advertising, merchandizing and operations specifically over the allotment of the advertising mix can be identified as one more OB concern. The advertising and marketing department does not share the very same vision as the other two departments regarding the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and also procedures departments do not agree over the advertising and marketing mix allowance among one an additional either.

Fragmentation in Marketing Division: Fragmentation between the advertising and marketing departments can be recognized as another OB problem which can require more interest. The reality that the advertising and marketing areas in the marketing division are separated is protecting against both departments from gaining from each various other's experience and competence. Assimilation of marketing with merchandising 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 problem.

Michael Ovitz And The Walt Disney Co A Analysis

Different theories have actually been used to discuss the conditions to obtain more clearness concerning the circumstance available.

McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers believe that subordinates are passive and also careless, have little aspiration and also stand up to change. The scenario at Michael Ovitz And The Walt Disney Co A is not entirely following Theory X, it can be seen that new hires are discovering this setting instead demanding which may eventually lead to a better disposition of the management in the direction of Theory X. Even while evaluating Lewis's monitoring style, theory X may have been suitable in the procedures division to some degree but the Advertising and marketing department would certainly require reliance on Concept Y in order to get the imagination and originality from the groups.

Tuckman's Synergy Theory: As for Lewis's problem concerning bringing consistency in between the marketing and advertising department is worried, this would originally result in contrast as talked about by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). Based on Tuckman's theory displayed in appendix 3, throughout the preliminary phase of team advancement, individuals may not bond, as they are active locating their location in the team. By incorporating the marketing and advertising division's job, there may be the same first detach which might result in the second stage of 'storming' where the teams challenge each other. Nevertheless, it is only throughout the third stage or 'norming' when they would certainly come together to share ideas prior to the team can bring about synergy in the 4th phase 'performing'.

Bridges' Shift Model: As per William Bridge's concept (appendix 4), individuals are fairly uncomfortable with adjustment, which is apparent by the scenario at Michael Ovitz And The Walt Disney Co A The scenario can be viewed as a regular training course of life if is studied based on Bridge's theory where he explains that individuals experience three stages of shift when they experience adjustment. 'Ending, shedding as well as Releasing', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When individuals exist with adjustment, they get in stage one therefore there may be emotions like despair, uncertainty, aggravation, rage, worry, denial and also disorientation.The scenario at the advertising department of Michael Ovitz And The Walt Disney Co A is comparable so Lewis can obtain comfortable with the concept that it is not amazing habits. In the second phase, there might be a requirement to connect the gap in between the brand-new as well as old culture so Lewis might have to face this challenge once Krasnow leaves. There may be reduced morale as well as low productivity at this stage which need to not be taken as a trouble. It is during this phase that Lewis will have to provide support to the department so that they can discover a sense of direction. It can be seen exactly how Krasnow has actually already made this shift easier by making Lewis obtain associated with the department a year prior to his real departure. According to Bridges' Design, phase three will produce openness to discovering, High power as well as dedication as individuals will welcome the modification (Bridges, 2004).

Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has reviews the significance of 'safety requires as being a reduced level requirement of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel protected and also out of threat' is at the second degree of demands. Prior to an employee can be made to establish emotionally, he needs to have his 'Physical 'and also 'Safety' requires met.

SWOT Analysis for Michael Ovitz And The Walt Disney Co A Case Study

Implication of Analysis.

The OB analysis has actually considered various concepts to comprehend exactly how to manage the existing scenario handy. The adhering to 3 alternatives have been proposed to assist Lewis deal with the business difficulties in the advertising and marketing division. Each of these options has been proposed for easing the shift needed to bring the advertising division in line with the needs of the market and also for making the social adjustment that would certainly comply with once the existing leader leaves.

Combination of marketing and advertising features. Dividing Adverting and also Manufacturing functions. Combination of Marketing with Procedures.

Examination of Alternatives.

Judith Shapiro that has actually earlier been spoken with by Lewis throughout the earlier merging days has know-how in business-to-business marketing along with firm as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to take care of both marketing as well as advertising and marketing functions.

The advantage of this approach is that it will integrate the two functions while minimizing the requirement for hiring an added source for marketing. Lewis would be heading the advertising department and in any kind of case her replacement would certainly be required for the present duty that she is doing. The disadvantage of this choice is that outside hiring might cause resentment from inner personnel that might be considering the placement of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Production: Given the affordable pressures as well as premium quality work needed from the advertising agency, it is suggested that Lewis ought to permit the manufacturing unit to be a separate feature from the advertising and marketing unit. Since most advertising agencies had these two functions as different devices, it makes more sense to comply with the norm. In addition to this, both functions may have the ability to focus on their core activates much more effectively. The downside of this strategy would be that extra expenses would certainly have to be birthed for setting up different manufacturing features. A manufacturing head may have to be employed which could enhance expenses for the company.

Assimilation of Marketing with Operations: Because Lewis is already taking care of the advertising and marketing and procedures divisions at the same time; it makes sense to integrate both features because she has actually been efficiently looking after both ends. The truth that both departments already have significant distinctions over allowance of resources recommends that this integration may have the ability to cause consistency particularly as Lewis would certainly be heading both ends.However there are numerous downsides of this relocation especially as it would put too much concern over Lewis's shoulders. The fact that Lewis has to adapt her monitoring style for the marketing department recommends that these 2 divisions would be culturally diverse. Lewis may not be able to apply one kind of management design to both departments which might result in inadequacy in either one of the two features.


An analysis of the three alternatives indicates that integration of marketing as well as procedures would not be a practical action because of the huge distinctions in between both departments despite the fact that presently Lewis is managing both. While separation of the manufacturing function may have been a favorable move for the marketing division, the truth that it would suggest putting a third function under Lewis's wing means this ought to be prevented. The combination of the advertising division is the very best alternative in regards to getting the ideal arise from the department. An activity plan for this choice is reviewed below.

Activity Strategy.

Lewis will certainly take over the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

Production feature will certainly stay part of advertising under advertising function.

Lewis will separate herself from operations.

An autonomous leadership style with worker empowerment will be made use of in advertising and marketing division.

Open up door plan and also emphasis on cross departmental interaction will be targeted at removing disharmony.

Backup strategy.

If the combination does not work out as prepared, a contingency plan would certainly comply with which would certainly divide the production function from the marketing feature to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the production function will most definitely be separated by positioning it under an SVP production.