Kulicke And Soffa Industries Inc In China Transferring Knowledge A Case Study Solution


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Background and Facts

Kulicke And Soffa Industries Inc In China Transferring Knowledge A a workplace materials merchant for tiny and also average sized companies has just recently been associated with preparing for a merger with its competitor Home Deport, which has affected performance degrees in departmentswith the elderly manager involved in legal problems presented by the government Profession Commission. With the Marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the role in the future. With challenges in the type of a potential social change and low staff member spirits, the company is in need of a complete reengineering effort at the advertising and marketing department.

Issue Statement

The potential cultural adjustment at the advertising department of Kulicke And Soffa Industries Inc In China Transferring Knowledge A is enhancing unpredictability in the working environment bring about different obstacles for the Jeannie Lewis that would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing calculated decisions since Stapes Inc. had to abandon its plans of combining with Office Deport after the Federal Trade Compensation's treatment in the process. Offered the reality 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 impact efficiency or calculated goals. Federal Profession Payment's antitrust fit against the merging occupied valuable time of the company's elderly management suggesting that 'political' factors can have severe ramifications for an international organisation.

Economic Factors: Financial factors such as the appearance of local business in the international circumstance recommend that Kulicke And Soffa Industries Inc In China Transferring Knowledge A is flourishing in an atmosphere where there is possible development of companies. Along with this, fact that shop consumers are mostly searching for workplace products for home offices suggests that the market has a climbing pattern of entrepreneurs as well as online organisations.

Social factors: Social fads in the economic climate reveal that customers are searching for benefit along with eye-catching costs. Market research demonstrates how the consumer for Kulicke And Soffa Industries Inc In China Transferring Knowledge A lacks recognition regarding finding solutions which can provide a combination of ease and inexpensive.

Technical factors: Modern technology plays a vital function in Kulicke And Soffa Industries Inc In China Transferring Knowledge A's business method particularly as the organization is piloting Technology facilities which would certainly offer modern technology sales as well as assistance in the kind of memory upgrades, outer installations. (Recap of INSECT in appendix 2).

OB Issues and also Manifestations.

Several underlying Business Behavior issues can be seen in Kulicke And Soffa Industries Inc In China Transferring Knowledge A's case as highlighted in this area.

Concerns about cultural adjustment: There is concern about a cultural adjustment that would certainly take place as soon as Todd Krasnow leaves from his placement as the Exec Vice President of Advertising with the majority of the staff members currently showing unhappiness over this possible move. This anticipated modification has developed anxiety in the office which has actually been paired with the past tension of preparing the firm for a prospective merging with Residence Deport.

Demanding Task Environment for Newcomers: There is scarcity of employees that can match the demanding environment of a hectic company. Not just does this cause trouble in discovering the best people, it puts anxiety on brand-new hires as can not endure the speed and stress that the organization expects them to bear.

Dual Reporting Lines: Newcomers discover this organizational society difficult and also tough to handle particularly as populated line relationships are implied to be weak in general as well as objective setup and also performance assessment is still done by the strong line supervisor. This indicates that newbies can shed clarity concerning their respective roles and goals specifically as populated line coverage 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 rather than Bridget Coles despite the fact that it had been hypothesized that the last would take Krasnow's setting came as a strike to her morale. Lewis might have been capable and also ideal for the job but the fact that Kransnow's separation would make Coles a straight record to Lewis might have been the reason for Coles' resignation from services.

Worry & Job Instability: Anxiety and insecurity can be determined as 2 significant worries that Lewis would certainly be handling particularly as the merging has now be cancelled and also 2 senior executives of the marketing department would certainly be leaving. The entire obligation of the division would certainly be falling on Lewis's shoulders that would not just supervise of brining about a social modification yet would certainly also need to show herself in her new role.

Inappropriate Administration Design of Leader: Lewis's monitoring design as well as its conflict with the advertising division's function can additionally be viewed as an OB obstacle specifically as she has been utilized to managing concerns in the operations division where workers are taught to concentrate on procedures as well as obtain them right. The marketing division on the various other hand can be viewed as a group of individuals who are utilized to being supported by Krasnow who concentrated much more on output than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between 3 divisions, advertising, merchandizing and procedures specifically over the allocation of the advertising mix can be determined as another OB problem. The advertising and marketing department does not share the exact same vision as the other two departments regarding the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing as well as procedures divisions do not agree over the marketing mix allocation among one an additional either.

Fragmentation in Advertising And Marketing Division: Fragmentation in between the marketing and advertising divisions can be identified as one more OB problem which can require additional interest. The reality that the marketing and advertising sections in the marketing division are disconnected is preventing both divisions from getting from each various other's experience and knowledge. Combination of advertising and marketing with retailing as well as operations would certainly become more difficult if the advertising department itself is broken down which can be one more potential OB concern.

Kulicke And Soffa Industries Inc In China Transferring Knowledge A Analysis

Different concepts have been used to clarify the scenarios to get additional clearness concerning the scenario at hand.

McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of managers think that subordinates are easy and lazy, have little aspiration as well as resist adjustment. The hard variation of this concept highlighted browbeating, tight controls, risks as well as penalties. With time it creates reduced performance, subtle sabotage and competition (Offer, 2003). The circumstance at Kulicke And Soffa Industries Inc In China Transferring Knowledge A is not entirely complying with Theory X, it can be seen that new hires are locating this atmosphere instead difficult which might at some point lead to a higher disposition of the management towards Theory X. According to McGregor's advocated view, which he called Concept Y, the crucial task of the monitoring is to arrange business conditions to ensure that individuals can accomplish their own objectives best by routing their efforts towards organizational rewards. If individuals find no satisfaction in their work, the monitoring would certainly have little option yet to depend on concept X as well as external control (Deal, 2003). Even while evaluating Lewis's administration design, concept X may have appropriated in the operations department to some extent but the Advertising and marketing department would require reliance on Theory Y to get the imagination and originality from the groups.

Tuckman's Team effort Concept: As far as Lewis's concern concerning bringing harmony between the advertising as well as advertising and marketing department is worried, this would initially lead to conflict as gone over by Bruce Tuckman in his 'Synergy Theory'. By combining the marketing as well as marketing department's job, there may be the very same first disconnect which could lead to the 2nd phase of 'storming' where the teams challenge one an additional.

When people are presented with change, they enter phase one and also so there might be feelings like unhappiness, unpredictability, aggravation, anger, concern, rejection and disorientation.The scenario at the marketing department of Kulicke And Soffa Industries Inc In China Transferring Knowledge A is comparable so Lewis can obtain comfy with the suggestion that it is not extraordinary behavior. It is during this stage that Lewis will certainly have to offer support to the division so that they can discover a feeling of instructions. It can be seen just how Krasnow has actually already made this change simpler by making Lewis obtain entailed in the division a year prior to his real separation.

Maslow's Demand hierarchy: The OB problem pertaining to insecurity at the office has actually been activated to start with by the modification in management as well as secondly by the reality that the merger will no longer be launched. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has talks about the value of 'protection requires as being a reduced degree demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel safe and out of danger' goes to the 2nd degree of needs. Prior to an employee can be made to create psychologically, he requires to have his 'Physical 'as well as 'Safety and security' requires met. This indicates that unless the personnel are made to feel protected about their present work condition in Kulicke And Soffa Industries Inc In China Transferring Knowledge A they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Kulicke And Soffa Industries Inc In China Transferring Knowledge A Case Study

Implication of Analysis.

The OB analysis has actually checked out numerous theories to comprehend how to cope with the current circumstance at hand. The complying with three options have been recommended to aid Lewis deal with the organizational difficulties in the advertising and marketing department. Each of these options has been suggested for alleviating the transition required to bring the marketing division according to the demands of the market as well as for making the cultural change that would comply with as soon as the present leader leaves.

Integration of advertising and marketing features. Dividing Adverting and also Production features. Combination of Advertising And Marketing with Operations.

Assessment of Alternatives.

Judith Shapiro that has earlier been interviewed by Lewis during the earlier merger days has proficiency in business-to-business marketing along with firm as well as retail advertising and marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to manage both advertising and advertising and marketing features.

The advantage of this technique is that it will certainly incorporate both functions while reducing the need for hiring an added resource for advertising. Lewis would certainly be heading the advertising and marketing department and also in any type of case her substitute would certainly be required for the present role that she is executing. The disadvantage of this alternative is that exterior hiring might bring about bitterness from internal employees that might be looking at the placement of EVP after Lewis takes over Krasnow's position.

Separating Adverting and Production: Provided the competitive pressures as well as high top quality job called for from the advertising and marketing firm, it is recommended that Lewis should allow the production unit to be a separate feature from the marketing system. Considering that many advertising and marketing firms had these two features as separate units, it makes more feeling to comply with the standard.

Combination of Marketing with Workflows: Because Lewis is currently dealing with the marketing and procedures divisions concurrently; it makes good sense to integrate both functions given that she has actually been successfully looking after both ends. The truth that the two divisions currently have significant distinctions over appropriation of sources recommends that this combination might be able to cause consistency specifically as Lewis would be heading both ends.However there are various negative aspects of this step specifically as it would certainly put way too much worry over Lewis's shoulders. The reality that Lewis needs to adapt her management design for the advertising division recommends that these two divisions would certainly be culturally varied. Lewis may not be able to use one kind of management design to both divisions which can result in ineffectiveness in either one of the two features.


An examination of the 3 options suggests that integration of advertising and marketing and also operations would certainly not be a possible relocation due to the large differences in between the 2 departments despite the reality that presently Lewis is handling both. While separation of the production feature may have been a beneficial relocation for the marketing division, the fact that it would certainly imply placing a 3rd function under Lewis's wing indicates this should be avoided.

Action Plan.

Lewis will take control of the function of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would be combined.

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

Manufacturing feature will continue to be part of advertising and marketing under advertising feature.

Lewis will certainly separate herself from procedures.

An autonomous management style with staff member empowerment will certainly be utilized in advertising division.

Open up door plan and also emphasis on cross departmental interaction will certainly be aimed at eliminating discord.

Backup strategy.

If the assimilation does not work out as prepared, a contingency strategy would certainly adhere to which would separate the production function from the advertising function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising department without an SVP. Because case the manufacturing function will absolutely be separated by putting it under an SVP manufacturing.