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 Help

Background and Facts

The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions a workplace products seller for small as well as moderate sized services has actually just recently been associated with preparing for a merger with its rival House Deport, which has actually influenced effectiveness degrees in departmentswith the elderly supervisor involved in legal issues put forth by the federal Trade Payment. With the Advertising and marketing Head putting forward the information of his departure from the company in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the future. With challenges in the type of a potential cultural change and reduced worker morale, the organization wants a total reengineering effort at the marketing department.

Trouble Statement

The prospective social change at the marketing department of The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions is enhancing uncertainty in the working environment resulting in numerous obstacles for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing tactical choices since Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Trade Compensation's treatment at the same time. Offered the truth that the store has a worldwide presence with branches in UK, USA, Canada and Germany, political consider each of these countries may be able to influence efficiency or calculated goals. Federal Trade Commission's antitrust suit versus the merger took up important time of the organization's elderly monitoring suggesting that 'political' factors can have serious effects for a global company.

Economic Factors: Financial factors such as the emergence of small businesses in the global scenario recommend that The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions is flourishing in an environment where there is possible development of companies. In addition to this, reality that shop consumers are primarily trying to find office products for office recommends that the marketplace has a rising fad of business owners as well as home based services.

Social factors: Social fads in the economy reveal that clients are trying to find ease as well as appealing costs. Marketing research shows how the consumer for The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions does not have understanding concerning finding options which can supply a combination of ease and also affordable.

Technological factors: Technology plays a crucial function in The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions's company method especially as the organization is piloting Modern technology centers which would certainly offer modern technology sales and also assistance in the kind of memory upgrades, outer setups. (Recap of INSECT in appendix 2).

OB Issues and Manifestations.

A number of underlying Business Habits problems 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 social change: There is worry about a social change that would take place as soon as Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with a lot of the personnel currently revealing unhappiness over this possible action. This expected adjustment has actually produced tension in the work environment which has actually been coupled with the past anxiety of preparing the company for a possible merger with Residence Deport.

Demanding Work Environment for Newcomers: There is scarcity of employees that can match the demanding environment of a busy organization. Not just does this result in trouble in finding the right individuals, it puts anxiety on brand-new hires as can not stand up to the pace and pressure that the organization anticipates them to birth.

Twin Reporting Lines: Novices find this organizational culture cumbersome and also challenging to handle particularly as populated line relationships are suggested to be weak as a whole as well as objective setup and performance evaluation is still done by the solid line manager. This indicates that beginners could lose quality regarding their corresponding functions and purposes specifically as populated line reporting does not maintain them in direct interaction with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles despite the fact that it had actually been speculated that the latter would take Krasnow's setting came as a strike to her morale. Lewis may have been capable as well as ideal for the work yet the reality that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Job Instability: Fear as well as instability can be determined as 2 major problems that Lewis would certainly be taking care of particularly as the merger has currently be terminated and two senior execs of the advertising and marketing department would be leaving. The whole responsibility of the department would be dropping on Lewis's shoulders that would certainly not just supervise of brining concerning a cultural change but would certainly additionally have to prove herself in her new role.

Inappropriate Management Style of Leader: Lewis's monitoring design and its conflict with the marketing division's function can likewise be viewed as an OB difficulty especially as she has actually been utilized to dealing with issues in the procedures division where workers are educated to focus on processes as well as get them right. The marketing division on the other hand can be seen as a team of individuals who are used to being supported by Krasnow who concentrated a lot more on output than procedures.

Interdepartmental Disagreements: Interdepartmental arguments between 3 divisions, advertising and marketing, merchandizing and operations specifically over the allocation of the advertising mix can be determined as an additional OB issue. The advertising department does not share the same vision as the other 2 departments regarding the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and procedures divisions do not concur over the advertising and marketing mix allocation amongst one another either.

Disintegration in Advertising Department: Fragmentation in between the advertising and marketing departments can be determined as an additional OB problem which might need more interest. The fact that the advertising and marketing areas in the advertising and marketing department are detached is avoiding both departments from getting from each various other's experience and also experience. Integration of advertising with merchandising and also procedures would end up being harder if the advertising department itself is broken down which can be another possible OB worry.

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

Numerous theories have actually been made use of to discuss the circumstances to get additional clearness concerning the circumstance available.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of supervisors believe that staffs are passive and also careless, have little ambition and also withstand change. The scenario at The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions is not totally complying with Theory X, it can be seen that new hires are finding this environment instead difficult which may eventually lead to a higher inclination of the management in the direction of Theory X. Even while analyzing Lewis's administration style, concept X may have been appropriate in the procedures division to some degree however the Marketing division would need reliance on Theory Y in order to get the imagination as well as creativity from the groups.

Tuckman's Synergy Theory: As far as Lewis's issue about bringing consistency in between the advertising and marketing division is concerned, this would at first lead to clash as reviewed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, during the preliminary stage of team development, people may not bond, as they are active finding their area in the group. By integrating the advertising and marketing department's job, there might be the same first disconnect which can result in the 2nd stage of 'storming' where the teams challenge one another. It is just during the 3rd phase or 'norming' when they would come together to share suggestions prior to the team can bring about synergy in the fourth stage 'executing'.

When people are provided with modification, they get in stage one and so there might be feelings like sadness, unpredictability, irritation, anger, fear, denial as well as disorientation.The circumstance at the advertising and marketing division of The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions is comparable so Lewis can obtain comfy with the suggestion that it is not extraordinary habits. It is during this phase that Lewis will have to provide support to the department so that they can find a feeling of direction. It can be seen how Krasnow has already made this change much easier by making Lewis get included in the department a year prior to his actual departure.

Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has goes over the relevance of 'protection requires as being a lower degree requirement of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel protected and also out of risk' is at the second level of needs. Prior to a worker can be made to develop mentally, he needs to have his 'Physical 'and also 'Safety and security' requires fulfilled.

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 taken a look at different theories to comprehend just how to deal with the existing situation handy. The following 3 alternatives have been proposed to aid Lewis deal with the organizational difficulties in the advertising division. Each of these options has actually been suggested for easing the transition needed to bring the advertising division in accordance with the needs of the marketplace and also for making the cultural change that would comply with once the present leader leaves.

Integration of marketing and advertising functions. Separating Adverting as well as Production features. Integration of Advertising And Marketing with Procedures.

Examination of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merger days has knowledge in business-to-business advertising along with firm as well as retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to take care of both advertising as well as advertising features.

The benefit of this strategy is that it will certainly incorporate both features while reducing the need for hiring an additional resource for marketing. In addition to this, Lewis would be heading the advertising department and regardless her substitute would certainly be needed for the existing function that she is executing. The negative aspect of this choice is that outside hiring may cause bitterness from internal workers who may be eying the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting and also Manufacturing: Offered the competitive stress as well as top quality job needed from the ad agency, it is recommended that Lewis ought to enable the manufacturing unit to be a different function from the advertising and marketing system. Because many ad agency had these two functions as separate devices, it makes more sense to adhere to the standard. Both features may be able to focus on their core activates extra efficiently. Nevertheless, the drawback of this strategy would be that additional prices would certainly have to be borne for setting up separate manufacturing features. A manufacturing head may have to be employed which might raise overheads for the organization.

Integration of Advertising with Procedures: Considering that Lewis is already looking after the marketing as well as procedures departments concurrently; it makes sense to integrate both features because she has been successfully dealing with both ends. The truth that the two departments currently have significant differences over appropriation of resources suggests that this integration may have the ability to bring about harmony specifically as Lewis would certainly be heading both ends.However there are different disadvantages of this relocation particularly as it would place too much concern over Lewis's shoulders. The reality that Lewis has to adjust her monitoring design for the marketing division recommends that these 2 departments would be culturally diverse. Along with this, Lewis may not be able to use one sort of management style to both departments which might lead to inefficiency in either one of both features.


An examination of the three options indicates that integration of advertising and marketing as well as procedures would not be a viable move due to the substantial differences between the two departments despite the fact that currently Lewis is managing both. While splitting up of the production function may have been a beneficial relocation for the advertising and marketing department, the reality that it would certainly mean positioning a third function under Lewis's wing indicates this must be stayed clear of too. The assimilation of the advertising and marketing department is the best alternative in terms of getting the ideal results from the department. An activity prepare for this alternative is reviewed listed below.

Action Strategy.

Lewis will take over the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be combined.

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

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

Lewis will divide herself from operations.

An autonomous leadership style with employee empowerment will certainly be used in marketing department.

Open door policy as well as focus on cross department interaction will be targeted at eliminating dissonance.

Backup plan.

If the combination does not work out as intended, a contingency plan would comply with which would certainly divide the production function from the advertising and marketing function to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising and marketing division without an SVP. Because case the production function will certainly be separated by putting it under an SVP manufacturing.