Michael Ovitz And The Walt Disney Co A Case Study Analysis


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Michael Ovitz And The Walt Disney Co A Case Study Help

Background and Facts

Michael Ovitz And The Walt Disney Co A a workplace supplies seller for small and medium sized companies has actually lately been associated with planning for a merger with its competitor Home Deport, which has impacted effectiveness levels in departmentswith the senior supervisor involved in lawful complications presented by the government Profession Payment. With the Marketing Head advancing the news of his separation from the business in one year, Jeannie Lewis, the present head of procedures has been asked to take the function in the near future. With difficulties in the form of a possible social modification and also reduced worker morale, the company is in need of a full reengineering effort at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The potential social modification at the advertising division of Michael Ovitz And The Walt Disney Co A is increasing unpredictability in the working environment bring about various challenges for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting tactical choices because Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Trade Compensation's treatment while doing so. Given the truth that the store has an international visibility with branches in UK, U.S.A., Canada and Germany, political consider each of these nations might have the ability to influence efficiency or critical objectives. Federal Profession Compensation's antitrust match versus the merging occupied valuable time of the company's elderly management recommending that 'political' factors can have serious ramifications for a worldwide company.

Economic Factors: Economic factors such as the appearance of small businesses in the international circumstance recommend that Michael Ovitz And The Walt Disney Co A is thriving in a setting where there is potential growth of companies. Truth that store clients are mostly looking for office materials for home workplaces recommends that the market has an increasing trend of business owners and also house based companies.

Social factors: Social fads in the economic situation show that consumers are searching for benefit as well as attractive costs. Marketing research demonstrates how the customer for Michael Ovitz And The Walt Disney Co A does not have understanding regarding locating remedies which can use a combination of ease as well as inexpensive.

Technological factors: Technology plays a crucial role in Michael Ovitz And The Walt Disney Co A's company method particularly as the company is piloting Innovation facilities which would use technology sales and assistance in the kind of memory upgrades, peripheral installations. (Summary of BUG in appendix 2).

OB Issues and Symptoms.

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

Concerns concerning social adjustment: There is apprehension about a cultural modification that would happen as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising with a lot of the employee already showing unhappiness over this possible move. This expected change has created stress in the workplace which has been paired with the past stress of preparing the firm for a possible merger with House Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is scarcity of employees that can match the difficult atmosphere of a hectic company. Not just does this lead to problem in finding the appropriate people, it puts stress on new hires as can not endure the speed and also pressure that the organization expects them to bear.

Twin Reporting Lines: Newbies find this business society troublesome as well as difficult to handle specifically as dotted line connections are implied to be weaker as a whole and also unbiased setup and efficiency examination is still done by the strong line manager. This suggests that newcomers can shed clarity regarding their particular functions as well as purposes specifically as dotted line coverage does not keep them in direct communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had been speculated that the latter would take Krasnow's setting came as a strike to her spirits. Lewis may have been qualified as well as appropriate for the work but the truth that Kransnow's separation would make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Worry & Task Insecurity: Anxiety as well as instability can be recognized as 2 significant issues that Lewis would certainly be managing especially as the merger has actually now be terminated as well as two elderly executives of the advertising department would certainly be leaving. The whole responsibility of the department would be dropping on Lewis's shoulders who would not simply be in charge of brining concerning a social modification yet would likewise need to prove herself in her new role.

Incompatible Management Style of Leader: Lewis's monitoring design as well as its conflict with the advertising and marketing division's role can additionally be seen as an OB difficulty specifically as she has actually been utilized to handling issues in the operations department where employees are taught to focus on processes and get them. The advertising division on the various other hand can be viewed as a team of individuals who are made use of to being nurtured by Krasnow who focused more on outcome than processes.

Interdepartmental Disputes: Interdepartmental disagreements in between three departments, advertising, merchandizing as well as procedures respectively over the appropriation of the advertising mix can be identified as one more OB issue. The advertising and marketing department does not share the exact same vision as the various other 2 departments relating to the aloocation of the advertising mix twoards promotions as well as advertsing, the merchandizing and operations departments do not agree over the marketing mix allotment amongst one another either.

Disintegration in Marketing Division: Fragmentation in between the advertising and marketing divisions can be recognized as another OB issue which can require additional focus. The fact that the marketing and advertising areas in the advertising and marketing department are disconnected is preventing both departments from gaining from each various other's experience and also knowledge. Assimilation of advertising with merchandising as well as operations would certainly end up being more difficult if the advertising and marketing department itself is disintegrated which can be an additional prospective OB worry.

Michael Ovitz And The Walt Disney Co A Analysis

Numerous concepts have actually been utilized to describe the situations to get more clearness regarding the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that staffs are passive and also careless, have little aspiration as well as withstand modification. The circumstance at Michael Ovitz And The Walt Disney Co A is not entirely adhering to Concept X, it can be seen that new hires are discovering this setting instead demanding which may at some point lead to a greater inclination of the management towards Theory X. Also while examining Lewis's management style, concept X may have been suitable in the operations department to some extent but the Advertising and marketing department would need dependence on Theory Y in order to get the creativity and also creativity from the groups.

Tuckman's Team effort Concept: As far as Lewis's worry concerning bringing harmony between the advertising and marketing and advertising division is worried, this would at first lead to clash as talked about by Bruce Tuckman in his 'Teamwork Theory'. By integrating the marketing as well as advertising and marketing division's work, there might be the exact same first separate which could lead to the 2nd stage of 'storming' where the teams challenge one another.

Bridges' Shift Model: As per William Bridge's theory (appendix 4), people are rather unpleasant with change, which is apparent by the scenario at Michael Ovitz And The Walt Disney Co A The situation can be seen as a typical training course of life if is studied as per Bridge's concept where he clarifies that people undergo three stages of transition when they experience change. 'Closing, shedding and Releasing', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When people are presented with change, they get in phase one therefore there may be emotions like unhappiness, unpredictability, frustration, rage, anxiety, rejection and also disorientation.The circumstance at the advertising division of Michael Ovitz And The Walt Disney Co A is comparable so Lewis can obtain comfortable with the suggestion that it is not extraordinary behavior. In the second stage, there may be a requirement to bridge the gap between the brand-new and old society so Lewis may need to encounter this ordeal once Krasnow leaves. There may be reduced morale and reduced performance at this stage which need to not be taken as an obstacle. It is during this stage that Lewis will have to give guidance to the department so that they can find a sense of direction. It can be seen exactly how Krasnow has actually currently made this transition much easier by making Lewis obtain associated with the division a year before his actual departure. Based on Bridges' Design, phase 3 will bring about openness to knowing, High power and also dedication as people will certainly embrace the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Need pecking order: The OB problem related to instability at the office has actually been set off first of all by the change in administration and second of all by the reality that the merging will no longer be initiated. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has talks about the relevance of 'safety needs as being a reduced degree need of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see just how 'the need to really feel safe and secure and unharmed' is at the 2nd degree of demands. Before an employee can be made to establish psychologically, he requires to have his 'Physiological 'and also 'Security' requires fulfilled. This suggests that unless the workers are made to really feel protected regarding their current employment status 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 checked out various theories to comprehend exactly how to handle the existing situation handy. The following three alternatives have been recommended to aid Lewis deal with the organizational difficulties in the advertising department. Each of these choices has actually been suggested for easing the change needed to bring the advertising division in line with the needs of the market and also for making the social change that would certainly adhere to when the current leader leaves.

Assimilation of advertising and marketing functions. Dividing Adverting and Production functions. Integration of Advertising with Procedures.

Analysis of Alternatives.

Assimilation of Marketing & Advertising Functions: The internal advertising agency of Michael Ovitz And The Walt Disney Co A is already stamina for the organization in terms of saving up on overheads connected to marketing and promotion. Since no new recruitment has actually been done after Bridget Cole's separation with the reporting line being directly appointed to Krasnow for the marketing function, this is a desirable opportunity for integrating the advertising and marketing features. Judith Shapiro who has earlier been talked to by Lewis throughout the earlier merging days has competence in business-to-business marketing in addition to firm and also retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to handle both advertising and marketing features.

The advantage of this approach is that it will integrate the two functions while lowering the requirement for employing an additional resource for advertising. In addition to this, Lewis would certainly be heading the advertising and marketing department and also in any case her replacement would be required for the current function that she is carrying out. The disadvantage of this choice is that external hiring may cause resentment from internal workers who may be looking at the placement of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting as well as Production: Given the affordable pressures and also top quality work needed from the ad agency, it is advised that Lewis should enable the production unit to be a different feature from the advertising and marketing system. Considering that the majority of advertising agencies had these 2 features as different devices, it makes more sense to follow the standard. Both features may be able to concentrate on their core activates a lot more efficiently. The disadvantage of this approach would certainly be that additional expenses would have to be borne for establishing up separate manufacturing functions. A production head might have to be worked with which could raise overheads for the organization.

Assimilation of Advertising And Marketing with Procedures: Given that Lewis is currently taking care of the marketing and also procedures departments concurrently; it makes sense to incorporate the two functions given that she has actually been efficiently taking care of both ends. The reality that Lewis has to adjust her management design for the advertising division recommends that these two divisions would be culturally diverse.


An assessment of the three choices suggests that assimilation of marketing and operations would not be a feasible relocation due to the vast differences between the 2 departments regardless of the truth that presently Lewis is handling both. While splitting up of the production function might have been a desirable move for the advertising division, the truth that it would certainly mean placing a third feature under Lewis's wing suggests this ought to be avoided.

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

Advertising and Marketing functions would certainly be merged.

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

Manufacturing feature will certainly remain part of advertising and marketing under marketing feature.

Lewis will divide herself from operations.

A democratic management style with staff member empowerment will be used in advertising division.

Open up door policy and also focus on cross department interaction will be focused on removing disharmony.

Contingency plan.

If the integration does not work out as prepared, a contingency plan would certainly adhere to which would separate the production feature from the advertising function to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising department without an SVP. Because case the production function will definitely be divided by positioning it under an SVP manufacturing.