Shanakt Consulting An Indian Technology Startups Dilemma Case Study Analysis


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Shanakt Consulting An Indian Technology Startups Dilemma Case Study Solution

Background and Facts

Shanakt Consulting An Indian Technology Startups Dilemma an office products store for tiny and also average sized services has recently been involved in planning for a merging with its rival Home Deport, which has impacted effectiveness degrees in departmentswith the senior supervisor associated with lawful issues presented by the federal Profession Compensation. With the Advertising Head advancing the information of his separation from the company in one year, Jeannie Lewis, the present head of operations has been asked to take the role in the near future. With difficulties in the kind of a possible cultural adjustment as well as low staff member morale, the company requires a total reengineering initiative at the marketing department.

Issue Statement
Porter's 5 Forces Analysis
The possible social adjustment at the advertising division of Shanakt Consulting An Indian Technology Startups Dilemma is increasing unpredictability in the working environment bring about various obstacles for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major duty in impacting calculated decisions since Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Profession Compensation's intervention while doing so. Given the fact that the shop has a global presence 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 critical objectives. Federal Trade Compensation's antitrust fit versus the merger took up valuable time of the organization's senior management recommending that 'political' factors can have significant effects for an international service.

Economic Factors: Economic factors such as the introduction of small companies in the global situation suggest that Shanakt Consulting An Indian Technology Startups Dilemma is prospering in a setting where there is possible development of services. In addition to this, reality that shop customers are primarily looking for office materials for office recommends that the marketplace has a rising trend of business owners and also home based organisations.

Social factors: Social patterns in the economic situation reveal that customers are seeking comfort as well as appealing costs. Marketing research demonstrates how the customer for Shanakt Consulting An Indian Technology Startups Dilemma does not have recognition regarding discovering solutions which can supply a combination of convenience as well as affordable.

Technical factors: Modern technology plays a crucial role in Shanakt Consulting An Indian Technology Startups Dilemma's company strategy especially as the company is piloting Innovation facilities which would certainly offer innovation sales and support in the form of memory upgrades, outer installations. (Summary of INSECT in appendix 2).

OB Issues and also Effects.

Numerous underlying Organizational Habits concerns can be seen in Shanakt Consulting An Indian Technology Startups Dilemma's case as highlighted in this area.

Apprehensions about social change: There is apprehension about a cultural modification that would happen as soon as Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with the majority of the employee already revealing discontent over this potential action. This anticipated modification has created anxiety in the workplace which has been combined with the previous stress of preparing the firm for a prospective merger with Residence Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is shortage of personnel that can match the stressful environment of a fast-paced organization. Not just does this lead to problem in discovering the best individuals, it places stress on new hires as can not withstand the speed and also pressure that the organization anticipates them to birth.

Twin Reporting Lines: Newcomers find this organizational culture troublesome and also hard to deal with specifically as populated line connections are indicated to be weaker as a whole and objective setup as well as efficiency assessment is still done by the strong line supervisor. This suggests that novices could shed quality about their corresponding functions and also goals specifically as populated line reporting does not keep them in direct communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles although it had actually been guessed that the latter would certainly take Krasnow's position came as an impact to her spirits. Lewis might have been capable as well as ideal for the task but the fact that Kransnow's separation would certainly make Coles a straight record to Lewis may have been the reason for Coles' resignation from services.

Fear & Task Insecurity: Fear and insecurity can be determined as 2 significant issues that Lewis would be dealing with especially as the merging has actually now be terminated as well as 2 senior executives of the advertising and marketing division would certainly be leaving. The whole responsibility of the department would be falling on Lewis's shoulders who would certainly not simply be in charge of brining regarding a social modification however would also have to prove herself in her new role.

Incompatible Monitoring Design of Leader: Lewis's administration style and also its conflict with the marketing division's role can also be viewed as an OB difficulty specifically as she has been used to handling problems in the procedures department where employees are educated to focus on processes as well as get them right. The marketing division on the various other hand can be viewed as a group of individuals that are utilized to being nurtured by Krasnow that concentrated a lot more on result than processes.

Interdepartmental Differences: Interdepartmental differences in between 3 divisions, advertising, merchandizing as well as procedures specifically over the appropriation of the marketing mix can be determined as one more OB issue. The marketing division does not share the very same vision as the various other two divisions relating to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing as well as procedures departments do not agree over the advertising mix allocation among one an additional either.

Disintegration in Advertising Division: Fragmentation in between the advertising and marketing departments can be determined as another OB concern which might require more attention. The truth that the marketing and advertising areas in the marketing division are disconnected is stopping both departments from gaining from each other's experience and experience. Integration of advertising with retailing as well as operations would become harder if the advertising and marketing department itself is degenerated which can be one more potential OB issue.

Shanakt Consulting An Indian Technology Startups Dilemma Analysis

Different concepts have actually been utilized to explain the scenarios to obtain more clearness about the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers believe that subordinates are easy as well as lazy, have little aspiration and resist change. The tough variation of this concept stressed coercion, limited controls, hazards as well as penalties. Gradually it produces low productivity, refined sabotage as well as competition (Offer, 2003). Although the circumstance at Shanakt Consulting An Indian Technology Startups Dilemma is not totally complying with Theory X, it can be seen that new hires are finding this atmosphere rather stressful which may at some point bring about a better disposition of the monitoring in the direction of Concept X. Based on McGregor's promoted sight, which he called Concept Y, the necessary task of the administration is to set up organizational conditions to make sure that people can achieve their very own objectives best by routing their efforts in the direction of organizational rewards. If people discover no fulfillment in their job, the administration would have little choice but to rely on concept X as well as exterior control (Bargain, 2003). Even while evaluating Lewis's administration style, concept X might have appropriated in the procedures division somewhat yet the Advertising and marketing division would need dependence on Concept Y in order to get the imagination and also creativity from the teams.

Tuckman's Synergy Theory: As for Lewis's problem regarding bringing consistency between the advertising and marketing department is worried, this would at first cause contrast as reviewed by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). Based on Tuckman's theory displayed in appendix 3, during the preliminary phase of team advancement, people may not bond, as they are busy discovering their place in the team. By incorporating the marketing and advertising division's job, there may coincide first separate which can result in the 2nd phase of 'storming' where the teams test each other. It is just during the third stage or 'norming' when they would certainly come together to share ideas before the team can bring about harmony in the 4th stage 'doing'.

When people are provided with modification, they get in stage one and so there may be feelings like sadness, uncertainty, disappointment, rage, concern, denial and also disorientation.The situation at the marketing division of Shanakt Consulting An Indian Technology Startups Dilemma is similar so Lewis can get comfy with the suggestion that it is not remarkable actions. It is during this phase that Lewis will certainly have to provide support to the department so that they can discover a sense of instructions. It can be seen just how Krasnow has already made this transition much easier by making Lewis obtain involved in the division a year before his actual departure.
Vrio Analysis
Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has discusses the significance of 'safety needs as being a lower level requirement of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel protected and also out of danger' is at the 2nd degree of requirements. Prior to an employee can be made to develop mentally, he needs to have his 'Physiological 'as well as 'Security' needs fulfilled.

SWOT Analysis for Shanakt Consulting An Indian Technology Startups Dilemma Case Study

Ramification of Analysis.

The OB analysis has actually checked out different concepts to understand exactly how to manage the current scenario at hand. The adhering to 3 alternatives have actually been suggested to assist Lewis handle the organizational challenges in the advertising and marketing department. Each of these alternatives has actually been recommended for relieving the change needed to bring the advertising division according to the demands of the marketplace as well as for making the social modification that would follow once the current leader leaves.

Combination of marketing and advertising functions. Separating Adverting as well as Manufacturing features. Assimilation of Advertising And Marketing with Procedures.

Analysis of Alternatives.

Integration of Marketing & Advertising And Marketing Functions: The internal advertising company of Shanakt Consulting An Indian Technology Startups Dilemma is already strength for the organization in terms of conserving up on expenses related to marketing as well as promotion. Considering that no new recruitment has been done after Bridget Cole's separation with the reporting line being directly appointed to Krasnow for the advertising function, this is a desirable possibility for integrating the advertising and marketing functions. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merging days has competence in business-to-business marketing along with agency and retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to handle both marketing and advertising functions.

The advantage of this strategy is that it will certainly integrate both functions while decreasing the need for working with an added source for advertising. Lewis would certainly be heading the advertising division and also in any case her substitute would certainly be required for the present function that she is executing. The disadvantage of this option is that exterior hiring might bring about animosity from inner workers who may be considering the placement of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting and also Production: Offered the competitive stress and high quality work called for from the advertising and marketing firm, it is suggested that Lewis must permit the production system to be a different function from the advertising and marketing system. Since the majority of advertising firms had these 2 functions as different devices, it makes more sense to adhere to the norm.

Integration of Marketing with Workflows: Since Lewis is currently taking care of the marketing and also operations departments simultaneously; it makes sense to integrate the 2 features because she has actually been efficiently taking care of both ends. The truth that Lewis has to adapt her monitoring style for the advertising and marketing division recommends that these two divisions would be culturally diverse.


An examination of the three options shows that integration of advertising as well as operations would not be a viable move due to the huge differences in between the 2 departments in spite of the fact that presently Lewis is managing both. While separation of the production feature may have been a desirable step for the marketing division, the reality that it would indicate positioning a third feature under Lewis's wing implies this must be prevented.

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

Advertising and Marketing features would be merged.

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

Production feature will certainly remain component of marketing under advertising and marketing function.

Lewis will certainly divide herself from procedures.

An autonomous management design with staff member empowerment will be utilized in marketing division.

Open door plan and focus on cross department communication will be focused on getting rid of disharmony.

Contingency strategy.

If the integration does not exercise as prepared, a contingency strategy would comply with which would divide the production feature from the marketing function to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising and marketing department without an SVP. In that case the production function will definitely be separated by putting it under an SVP production.