Michael Ovitz And The Walt Disney Co A Case Study Solution


Home >> Ivey >> Michael Ovitz And The Walt Disney Co A >>

Michael Ovitz And The Walt Disney Co A Case Study Solution

Background and Facts

Michael Ovitz And The Walt Disney Co A a workplace products store for tiny and moderate sized organisations has recently been involved in preparing for a merger with its competitor Home Deport, which has actually influenced efficiency degrees in departmentswith the senior supervisor associated with lawful complications put forth by the government Profession Payment. With the Advertising and marketing Head advancing the news of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the role in the future. With obstacles in the kind of a potential cultural change and also low worker spirits, the organization is in need of a full reengineering initiative at the advertising department.

Trouble Statement
Porter's 5 Forces Analysis
The possible social change at the marketing department of Michael Ovitz And The Walt Disney Co A is raising uncertainty in the working environment causing various obstacles for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in influencing tactical choices given that Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Trade Commission's intervention in the process. Given the fact that the shop has an international presence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these countries might be able to influence performance or tactical goals. Federal Profession Payment's antitrust suit against the merging used up valuable time of the organization's senior management recommending that 'political' factors can have serious ramifications for an international company.

Economic Factors: Financial factors such as the development of local business in the worldwide situation recommend that Michael Ovitz And The Walt Disney Co A is growing in an environment where there is potential development of businesses. Truth that shop clients are mostly looking for office materials for residence offices recommends that the market has an increasing fad of entrepreneurs and also home based organisations.

Social factors: Social patterns in the economy show that consumers are seeking benefit in addition to attractive prices. Market research demonstrates how the consumer for Michael Ovitz And The Walt Disney Co A lacks understanding regarding finding services which can use a mix of ease and also affordable.

Technical factors: Technology plays an important duty in Michael Ovitz And The Walt Disney Co A's service strategy specifically as the organization is piloting Modern technology facilities which would certainly provide technology sales and also assistance in the type of memory upgrades, peripheral setups. (Recap of BUG in appendix 2).

OB Issues and also Manifestations.

A number of underlying Business Actions concerns can be seen in Michael Ovitz And The Walt Disney Co A's case as highlighted in this section.

Concerns concerning cultural modification: There is uneasiness about a cultural adjustment that would take place as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising with the majority of the personnel currently showing unhappiness over this possible step. This expected change has developed anxiety in the work environment which has actually been paired with the previous tension of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is scarcity of personnel that can match the difficult setting of a hectic company. Not only does this result in problem in locating the appropriate individuals, it places anxiety on brand-new hires as can not endure the speed and pressure that the company expects them to bear.

Twin Coverage Lines: Newbies locate this organizational society cumbersome as well as hard to manage particularly as populated line partnerships are suggested to be weaker generally and objective setting and also efficiency examination is still done by the strong line supervisor. This indicates that novices could shed clarity concerning their particular functions and purposes particularly as populated line coverage does not maintain them in direct communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles although it had actually been guessed that the latter would certainly take Krasnow's setting came as a strike to her morale. Lewis may have been capable and proper for the job yet the truth that Kransnow's separation would make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Task Instability: Fear and also instability can be recognized as 2 significant problems that Lewis would certainly be handling particularly as the merger has actually now be cancelled and also two elderly executives of the advertising and marketing department would be leaving. The entire obligation of the division would certainly be falling on Lewis's shoulders who would certainly not just be in charge of brining regarding a cultural modification yet would certainly likewise have to prove herself in her new role.

Incompatible Management Style of Leader: Lewis's monitoring design and also its incompatibility with the advertising and marketing division's duty can also be seen as an OB challenge especially as she has been utilized to dealing with concerns in the operations division where workers are instructed to concentrate on processes and obtain them right. The advertising and marketing division on the other hand can be viewed as a team of individuals who are utilized to being supported by Krasnow who focused much more on result than procedures.

Interdepartmental Disputes: Interdepartmental disputes between three departments, advertising and marketing, merchandizing and procedures specifically over the allotment of the advertising mix can be identified as another OB issue. Although the advertising department does not share the same vision as the various other two departments pertaining to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing and procedures departments do not concur over the advertising and marketing mix allotment amongst each other either.

Disintegration in Advertising Division: Fragmentation between the marketing and advertising departments can be recognized as an additional OB problem which could need additional interest. The fact that the advertising and marketing areas in the advertising and marketing department are disconnected is stopping both divisions from obtaining from each other's experience and knowledge. Assimilation of advertising with retailing and also procedures would certainly end up being more difficult if the advertising and marketing division itself is degenerated which can be an additional prospective OB worry.

Michael Ovitz And The Walt Disney Co A Analysis

Numerous theories have actually been used to discuss the conditions to obtain more clearness about the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that juniors are passive and also lazy, have little passion as well as withstand adjustment. The circumstance at Michael Ovitz And The Walt Disney Co A is not entirely following Concept X, it can be seen that new hires are locating this atmosphere instead demanding which might eventually lead to a higher inclination of the administration towards Theory X. Even while examining Lewis's administration design, theory X might have been suitable in the procedures division to some level yet the Marketing department would call for reliance on Concept Y in order to get the imagination and originality from the teams.

Tuckman's Teamwork Concept: As far as Lewis's concern about bringing harmony in between the marketing and advertising department is worried, this would initially bring about conflict as discussed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). According to Tuckman's theory received appendix 3, during the initial stage of group growth, individuals may not bond, as they are busy discovering their area in the group. By integrating the advertising and marketing department's work, there may be the same first detach which could result in the second phase of 'storming' where the teams test one another. It is just throughout the third stage or 'norming' when they would certainly come with each other to share concepts before the group can bring about synergy in the fourth stage 'doing'.

When individuals are presented with modification, they go into phase one and so there may be emotions like sadness, unpredictability, stress, temper, concern, denial as well as disorientation.The situation at the advertising and marketing division of Michael Ovitz And The Walt Disney Co A is comparable so Lewis can get comfortable with the concept that it is not phenomenal habits. It is during this stage that Lewis will have to give advice to the department so that they can discover a feeling of direction. It can be seen exactly how Krasnow has actually currently made this shift simpler by making Lewis obtain entailed in the division a year before his actual departure.
Vrio Analysis
Maslow's Requirement hierarchy: The OB issue pertaining to insecurity at the office has been triggered to start with by the change in monitoring as well as secondly by the fact that the merging will certainly no longer be started. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has goes over the significance of 'protection requires as being a lower degree requirement of a human for activating motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the demand to feel safe and out of danger' goes to the second degree of demands. Prior to a worker can be made to develop mentally, he needs to have his 'Physiological 'and 'Security' requires satisfied. This shows that unless the workers are made to really feel safe and secure about their existing employment standing in Michael Ovitz And The Walt Disney Co A they may not reach 'Self-Fulfillment'. (King, 2009).

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

Effects of Analysis.

The OB analysis has actually taken a look at various theories to comprehend how to cope with the existing scenario at hand. The following 3 choices have actually been suggested to help Lewis deal with the organizational difficulties in the advertising department. Each of these options has been proposed for relieving the shift required to bring the advertising department according to the demands of the market and also for making the cultural change that would certainly comply with once the existing leader leaves.

Assimilation of advertising and marketing features. Dividing Adverting as well as Production features. Assimilation of Advertising And Marketing with Workflow.

Evaluation of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merging days has experience in business-to-business advertising and marketing along with agency and also retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to deal with both advertising as well as advertising and marketing features.

The advantage of this approach is that it will certainly integrate the two features while lowering the need for working with an extra resource for marketing. Lewis would certainly be heading the advertising department as well as in any case her replacement would certainly be required for the present role that she is performing. The negative aspect of this choice is that external hiring may produce bitterness from internal personnel that might be considering the placement of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and Production: Given the competitive stress as well as high quality work needed from the advertising and marketing company, it is recommended that Lewis should enable the manufacturing system to be a separate feature from the advertising and marketing system. Since a lot of advertising and marketing firms had these two functions as different systems, it makes more feeling to adhere to the standard.

Combination of Marketing with Procedures: Because Lewis is currently taking treatment of the advertising and marketing and procedures departments concurrently; it makes sense to incorporate the 2 functions because she has actually been effectively taking care of both ends. The reality that Lewis has to adjust her monitoring style for the advertising department suggests that these two divisions would certainly be culturally diverse.


An evaluation of the 3 options shows that assimilation of advertising and operations would certainly not be a viable step due to the substantial differences between the two divisions in spite of the truth that currently Lewis is managing both. While splitting up of the production function might have been a beneficial move for the advertising department, the fact that it would certainly indicate placing a 3rd function under Lewis's wing indicates this need to be avoided.

Activity Strategy.
Lewis will take control of the role of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be merged.

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

Production feature will stay part of advertising under advertising and marketing feature.

Lewis will divide herself from operations.

An autonomous management style with worker empowerment will be utilized in advertising division.

Open door policy and also emphasis on cross departmental interaction will be targeted at getting rid of disharmony.

Contingency plan.

If the assimilation does not exercise as prepared, a contingency strategy would certainly comply with which would certainly separate the production function from the advertising and marketing feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the marketing division without an SVP. Because case the production function will certainly be separated by positioning it under an SVP manufacturing.