The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Solution


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The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study Analysis

Background and Facts

The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions an office supplies store for small as well as moderate sized organisations has actually just recently been involved in preparing for a merger with its competitor House Deport, which has influenced efficiency levels in departmentswith the elderly supervisor involved in lawful issues put forth by the government Trade Payment. With the Advertising and marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the future. With obstacles in the kind of a possible social change as well as reduced employee morale, the company needs a full reengineering effort at the marketing division.

Issue Statement
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising and marketing division of The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions is raising unpredictability in the workplace leading to different difficulties 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 significant function in impacting tactical decisions because Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Trade Compensation's treatment at the same time. Given the truth that the shop has an international visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries might be able to impact performance or calculated goals. Federal Trade Commission's antitrust fit versus the merging occupied beneficial time of the company's senior monitoring recommending that 'political' factors can have serious effects for a global business.

Economic Factors: Financial factors such as the emergence of small businesses in the global situation suggest that The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions is growing in an environment where there is potential development of companies. Along with this, fact that shop clients are mainly searching for office products for home offices suggests that the marketplace has a rising fad of entrepreneurs and online organisations.

Social factors: Social patterns in the economic climate show that consumers are searching for comfort as well as attractive prices. Market research shows how the customer for The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions does not have awareness concerning discovering solutions which can offer a mix of convenience and inexpensive.

Technological factors: Innovation plays an important duty in The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions's service strategy specifically as the organization is piloting Technology facilities which would provide technology sales as well as assistance in the form of memory upgrades, peripheral setups. (Recap of INSECT in appendix 2).

OB Issues and Symptoms.

Several underlying Business Behavior concerns can be seen in The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions's case as highlighted in this section.

Apprehensions about cultural adjustment: There is apprehension regarding a cultural modification that would take place as soon as Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with the majority of the employee already showing unhappiness over this possible step. This expected change has produced stress in the work environment which has been coupled with the past stress and anxiety of preparing the firm for a potential merging with Residence Deport.
Pest Analysis
Demanding Work Environment for Newcomers: There is shortage of workers that can match the demanding setting of a busy organization. Not just does this cause difficulty in locating the best people, it puts stress on brand-new hires as can not hold up against the rate and also pressure that the company expects them to bear.

Dual Reporting Lines: Beginners discover this organizational culture cumbersome as well as difficult to handle particularly as dotted line relationships are suggested to be weaker generally and unbiased setting and performance examination is still done by the solid line supervisor. This implies that newbies might shed clarity about their corresponding functions as well as goals specifically as populated line coverage does not maintain them in straight communication with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles despite the fact that it had actually been hypothesized that the latter would certainly take Krasnow's position came as a blow to her morale. Lewis might have been qualified as well as suitable for the job yet the truth that Kransnow's separation would make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Work Insecurity: Worry and also instability can be recognized as two significant concerns that Lewis would be dealing with specifically as the merger has now be terminated and 2 senior execs of the advertising department would be leaving. The whole duty of the division would be dropping on Lewis's shoulders who would certainly not simply be in charge of brining concerning a cultural modification however would likewise have to confirm herself in her new function.

Incompatible Administration Design of Leader: Lewis's management style and also its conflict with the marketing department's function can additionally be viewed as an OB difficulty specifically as she has actually been made use of to dealing with concerns in the procedures department where employees are educated to focus on procedures and also get them right. The advertising and marketing division on the various other hand can be seen as a group of individuals who are utilized to being supported by Krasnow who focused a lot more on output than processes.

Interdepartmental Arguments: Interdepartmental differences between 3 departments, advertising and marketing, merchandizing and procedures specifically over the appropriation of the advertising and marketing mix can be recognized as one more OB concern. Although the advertising and marketing department does not share the same vision as the other 2 divisions concerning the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing as well as procedures departments do not agree over the marketing mix allotment amongst one another either.

Fragmentation in Advertising And Marketing Division: Fragmentation in between the marketing and advertising divisions can be determined as one more OB concern which might require additional focus. The reality that the marketing and advertising sections in the advertising division are disconnected is preventing both divisions from gaining from each other's experience and expertise. Assimilation of advertising with merchandising as well as operations would certainly end up being harder if the advertising division itself is broken down which can be one more potential OB issue.

The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Analysis

Various theories have actually been made use of to describe the conditions to obtain more clearness concerning the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that juniors are passive and careless, have little passion and withstand adjustment. The difficult version of this theory emphasized coercion, tight controls, hazards and penalties. In time it generates low productivity, refined sabotage and competition (Deal, 2003). Although the scenario at The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions is not completely following Concept X, it can be seen that brand-new hires are finding this setting instead difficult which might ultimately bring about a better inclination of the monitoring in the direction of Concept X. Based on McGregor's advocated sight, which he called Theory Y, the necessary task of the monitoring is to organize business problems so that individuals can attain their very own objectives best by directing their initiatives towards business benefits. If people discover no contentment in their job, the management would certainly have little choice but to rely upon concept X and exterior control (Bargain, 2003). Also while analyzing Lewis's monitoring style, concept X might have been suitable in the operations department to some extent yet the Advertising division would certainly call for dependence on Concept Y to get the imagination and also originality from the groups.

Tuckman's Team effort Concept: As far as Lewis's concern regarding bringing consistency between the advertising and marketing and advertising department is worried, this would at first lead to contrast as discussed by Bruce Tuckman in his 'Teamwork Concept'. By incorporating the advertising and marketing and advertising department's job, there may be the same first detach which can lead to the 2nd phase of 'storming' where the groups challenge one another.

Bridges' Change Design: According To William Bridge's concept (appendix 4), people are rather uneasy with change, which is noticeable by the circumstance at The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions The circumstance can be viewed as a regular course of life if is studied according to Bridge's theory where he clarifies that individuals go through three stages of change when they experience adjustment. 'End, losing and also Releasing', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people are presented with adjustment, they get in phase one therefore there may be feelings like sadness, uncertainty, stress, temper, worry, rejection as well as disorientation.The situation at the advertising and marketing department of The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions is comparable so Lewis can get comfy with the concept that it is not extraordinary habits. In the second phase, there might be a requirement to link the void between the new as well as old society so Lewis may need to face this challenge once Krasnow leaves. There may be reduced spirits and also low efficiency at this stage which ought to not be taken as a trouble. It is during this phase that Lewis will certainly need to offer guidance to the department to ensure that they can locate a sense of direction. It can be seen just how Krasnow has actually currently made this transition simpler by making Lewis get involved in the division a year prior to his real departure. As per Bridges' Version, stage 3 will certainly bring about openness to discovering, High energy and dedication as individuals will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB issue related to insecurity at the workplace has actually been triggered to start with by the modification in management and second of all by the reality that the merger will no longer be launched. Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has discusses the relevance of 'safety and security requires as being a reduced degree requirement of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel secure and also untouched' is at the 2nd level of requirements. Prior to a worker can be made to create psychologically, he requires to have his 'Physiological 'and 'Safety' needs satisfied. This shows that unless the employees are made to feel safe and secure about their existing work condition in The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study

Implication of Analysis.

The OB analysis has actually checked out different concepts to understand how to deal with the existing scenario handy. The adhering to 3 choices have been proposed to aid Lewis handle the organizational challenges in the marketing division. Each of these options has actually been suggested for alleviating the shift required to bring the advertising division in accordance with the requirements of the market as well as for making the social modification that would certainly follow as soon as the present leader leaves.

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

Evaluation of Alternatives.

Integration of Advertising And Marketing & Advertising And Marketing Functions: The in-house advertising agency of The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions is already toughness for the company in terms of conserving up on expenses related to advertising as well as promo. Because no brand-new employment has actually been done after Bridget Cole's separation with the coverage line being directly assigned to Krasnow for the advertising feature, this is a favorable chance for integrating the marketing and advertising functions. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merging days has expertise in business-to-business marketing in addition to company and also retail advertising experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to manage both marketing and advertising functions.

The advantage of this approach is that it will incorporate the two functions while minimizing the need for working with an added source for marketing. Lewis would certainly be heading the advertising division and also in any case her substitute would be needed for the existing duty that she is performing. The negative aspect of this choice is that exterior hiring may bring about bitterness from internal personnel that may be looking at the placement of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Manufacturing: Offered the competitive pressures and also high top quality job required from the marketing firm, it is suggested that Lewis should permit the manufacturing device to be a separate feature from the marketing system. Given that most marketing firms had these two features as separate units, it makes even more feeling to adhere to the standard.

Combination of Advertising And Marketing with Operations: Considering that Lewis is already taking care of the advertising and marketing as well as procedures departments all at once; it makes sense to incorporate the two functions given that she has actually been effectively dealing with both ends. The truth that the two divisions currently have major differences over allowance of resources recommends that this combination might be able to cause harmony specifically as Lewis would certainly be heading both ends.However there are numerous drawbacks of this relocation specifically as it would place too much problem over Lewis's shoulders. The reality that Lewis has to adjust her management style for the advertising division recommends that these two departments would certainly be culturally diverse. Lewis may not be able to apply one type of leadership style to both departments which could result in inadequacy in either one of the 2 features.


An evaluation of the 3 alternatives indicates that assimilation of marketing and also operations would not be a practical move as a result of the large distinctions in between the two divisions although that currently Lewis is taking care of both. While splitting up of the manufacturing feature might have been a favorable relocation for the advertising department, the truth that it would mean placing a third function under Lewis's wing suggests this need to be prevented too. The combination of the advertising department is the very best choice in regards to getting the ideal results from the department. An action prepare for this choice is talked about listed below.

Action Plan.
Lewis will certainly take over the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

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

Lewis will certainly separate herself from procedures.

A democratic management style with staff member empowerment will certainly be made use of in advertising division.

Open door plan and emphasis on cross departmental communication will certainly be focused on removing dissonance.

Contingency strategy.

If the combination does not work out as planned, a backup strategy would certainly comply with which would certainly divide the production function from the marketing feature to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will certainly be heading the marketing division without an SVP. In that case the production function will most definitely be divided by putting it under an SVP manufacturing.