Background and Facts
The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions an office materials seller for tiny as well as moderate sized companies has actually just recently been associated with preparing for a merging with its competitor Home Deport, which has impacted performance levels in departmentswith the senior manager associated with legal difficulties put forth by the government Profession Commission. With the Advertising Head advancing the news of his departure from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the function in the near future. With challenges in the kind of a possible social adjustment and reduced worker spirits, the organization requires a total reengineering initiative at the marketing department.Problem Declaration
The prospective cultural modification at the advertising department of The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions is boosting uncertainty in the working environment leading to various obstacles for the Jeannie Lewis that would certainly be replacing the head of the division in one year. nalysis
PEST analysis
Political Factors: Political factors play a significant duty in influencing critical decisions since Stapes Inc. had to abandon its strategies of combining with Workplace Deport after the Federal Trade Payment's treatment at the same time. Provided the truth that the store has a worldwide visibility with branches in UK, USA, Canada as well as Germany, political consider each of these nations may be able to impact efficiency or calculated goals. Federal Profession Payment's antitrust match versus the merger occupied useful time of the organization's senior management recommending that 'political' factors can have significant effects for a global business.
Economic Factors: Economic factors such as the introduction of small businesses in the worldwide circumstance recommend that The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions is flourishing in an atmosphere where there is potential growth of businesses. Fact that store customers are primarily looking for workplace materials for house offices recommends that the market has a rising pattern of entrepreneurs and residence based companies.
Social factors: Social trends in the economic climate show that clients are seeking convenience in addition to eye-catching costs. Marketing research shows how the customer for The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions lacks understanding concerning discovering solutions which can supply a combination of benefit and low costs.
Technical factors: Innovation plays an essential function in The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions's company approach particularly as the organization is piloting Innovation centers which would supply modern technology sales and also support in the type of memory upgrades, peripheral installments. (Summary of PEST in appendix 2).
OB Issues as well as Symptoms.
A number of underlying Business Habits issues can be seen in The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions's case as highlighted in this area.
Worries regarding social modification: There is uneasiness regarding a social modification that would certainly occur when Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with a lot of the personnel already showing unhappiness over this possible move. This expected modification has actually developed anxiety in the office which has been coupled with the previous anxiety of preparing the company for a prospective merging with Residence Deport.
Stressful Task Environment for Newcomers: There is shortage of employees that can match the stressful environment of a hectic company. Not only does this result in difficulty in discovering the ideal people, it places anxiety on brand-new hires as can not stand up to the speed as well as stress that the company expects them to bear.
Dual Coverage Lines: Newcomers locate this business society difficult and also challenging to cope with especially as populated line partnerships are indicated to be weaker as a whole and unbiased setup and efficiency analysis is still done by the solid line supervisor. This indicates that newbies might lose clarity regarding their respective duties and objectives particularly as populated line reporting does not keep them in straight communication with the solid line managers.
Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had actually been hypothesized that the latter would certainly take Krasnow's placement came as an impact to her morale. Lewis may have been qualified and also appropriate for the task yet the fact that Kransnow's separation would make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.
Fear & Task Insecurity: Fear as well as insecurity can be determined as two significant concerns that Lewis would be dealing with specifically as the merger has actually now be terminated and also two elderly executives of the marketing division would certainly be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders who would certainly not just be in charge of brining regarding a social modification however would likewise need to confirm herself in her new duty.
Inappropriate Administration Style of Leader: Lewis's management style and also its conflict with the advertising and marketing department's duty can also be seen as an OB obstacle particularly as she has been made use of to taking care of issues in the operations division where employees are educated to focus on processes as well as get them. The advertising and marketing division on the various other hand can be seen as a team of individuals who are made use of to being nurtured by Krasnow that concentrated more on output than processes.
Interdepartmental Disagreements: Interdepartmental arguments in between three departments, advertising, merchandizing and procedures specifically over the allotment of the advertising and marketing mix can be recognized as one more OB issue. Although the advertising and marketing department does not share the exact same vision as the other 2 divisions pertaining to the aloocation of the marketing mix twoards promotions as well as advertsing, the merchandizing as well as operations departments do not agree over the advertising mix allowance among one another either.
Disintegration in Advertising And Marketing Division: Disintegration between the marketing and advertising departments can be recognized as another OB problem which might require further attention. The truth that the advertising and marketing sections in the advertising division are disconnected is stopping both divisions from getting from each other's experience as well as experience. Combination of advertising and marketing with retailing as well as operations would become more difficult if the advertising division itself is degenerated which can be an additional potential OB issue.
The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Analysis
Numerous theories have actually been utilized to discuss the scenarios to obtain more quality regarding the situation at hand.
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors believe that staffs are easy and careless, have little aspiration and stand up to adjustment. The circumstance at The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions is not entirely following Theory X, it can be seen that new hires are discovering this setting instead demanding which may eventually lead to a higher disposition of the management towards Concept X. Also while analyzing Lewis's management design, theory X may have been suitable in the procedures division to some degree however the Advertising and marketing division would certainly require reliance on Concept Y in order to get the creative thinking and also originality from the groups.
Tuckman's Teamwork Theory: As far as Lewis's concern regarding bringing consistency between the marketing and advertising division is concerned, this would at first bring about contrast as discussed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, throughout the first stage of team growth, people may not bond, as they are busy discovering their area in the group. By incorporating the advertising and marketing department's job, there might coincide preliminary separate which might lead to the second phase of 'storming' where the groups challenge one another. Nonetheless, it is just during the third phase or 'norming' when they would certainly collaborate to share ideas prior to the team can bring about synergy in the 4th phase 'executing'.
When individuals are offered with modification, they enter phase one and so there may be feelings like unhappiness, uncertainty, disappointment, temper, anxiety, denial and disorientation.The circumstance at the advertising and marketing division of The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions is similar so Lewis can obtain comfy with the concept that it is not extraordinary actions. It is throughout this stage that Lewis will have to provide support to the department so that they can find a feeling of direction. It can be seen just how Krasnow has actually already made this transition much easier by making Lewis obtain involved in the department a year prior to his actual separation.
Abraham Maslow in his Theory of 'Demands Power structure' (appendix 5) has goes over the importance of 'security needs as being a reduced level requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the requirement to really feel secure as well as out of danger' is at the second level of needs. Prior to a worker can be made to create psychologically, he needs to have his 'Physiological 'as well as 'Security' needs satisfied.
SWOT Analysis for The Role Of Information Technology Systems In The Performance Of Mergers And Acquisitions Case Study
Ramification of Analysis.
The OB analysis has actually taken a look at numerous theories to recognize exactly how to cope with the present circumstance available. The complying with 3 alternatives have actually been proposed to assist Lewis deal with the organizational obstacles in the advertising department. Each of these alternatives has been proposed for reducing the transition needed to bring the advertising division in line with the requirements of the marketplace and for making the social adjustment that would adhere to when the current leader leaves.
Integration of advertising and marketing functions. Dividing Adverting and also Manufacturing functions. Combination of Advertising And Marketing with Workflow.
Analysis of Alternatives.
Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merging days has competence in business-to-business marketing along with agency and also retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to manage both advertising and marketing and advertising and marketing functions.
The benefit of this strategy is that it will certainly integrate the two functions while lowering the demand for employing an additional source for marketing. In addition to this, Lewis would be heading the advertising division as well as regardless her substitute would be needed for the existing role that she is carrying out. The downside of this choice is that outside hiring might bring about resentment from internal personnel that might be looking at the position of EVP after Lewis takes over Krasnow's position.
Dividing Adverting and also Production: Provided the competitive stress and also high quality work called for from the advertising and marketing company, it is suggested that Lewis ought to enable the production unit to be a different feature from the marketing system. Since the majority of advertising and marketing companies had these 2 functions as different devices, it makes more sense to follow the standard.
Integration of Marketing with Procedures: Because Lewis is currently dealing with the advertising and also operations divisions simultaneously; it makes good sense to integrate the two functions given that she has been efficiently dealing with both ends. The truth that the two departments already have significant distinctions over appropriation of resources recommends that this assimilation might be able to cause harmony specifically as Lewis would certainly be heading both ends.However there are different drawbacks of this action especially as it would certainly put too much burden over Lewis's shoulders. The fact that Lewis has to adapt her monitoring style for the marketing division suggests that these 2 divisions would be culturally diverse. Lewis might not be able to apply one kind of leadership style to both departments which might result in inadequacy in either one of the two features.
Recommendation.
An examination of the three options suggests that integration of advertising and also operations would not be a possible step due to the substantial distinctions in between both divisions despite the fact that currently Lewis is dealing with both. While splitting up of the manufacturing feature might have been a beneficial relocation for the advertising division, the truth that it would imply positioning a 3rd feature under Lewis's wing means this need to be prevented also. The assimilation of the advertising division is the most effective option in terms of getting the optimum results from the department. An activity prepare for this alternative is discussed below.
Action Plan.
Lewis will certainly take control of the role of EVP Advertising after Krasnow leaves.
Marketing and advertising functions would be combined.
Judith Shapiro will be worked with to take Lewis's location as SVP of advertising and marketing.
Manufacturing function will certainly remain part of advertising and marketing under advertising function.
Lewis will certainly separate herself from operations.
An autonomous leadership design with staff member empowerment will certainly be used in advertising department.
Open up door plan and also emphasis on cross department interaction will certainly be aimed at eliminating disharmony.
Contingency strategy.
If the integration does not work out as planned, a contingency plan would certainly follow which would certainly separate the production feature from the advertising and marketing feature to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the marketing department without an SVP. Because case the manufacturing feature will certainly be divided by placing it under an SVP production.