Shanakt Consulting An Indian Technology Startups Dilemma Case Study Analysis


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Shanakt Consulting An Indian Technology Startups Dilemma Case Study Analysis

Background and Facts

Shanakt Consulting An Indian Technology Startups Dilemma a workplace products seller for small and average sized organisations has just recently been involved in preparing for a merging with its rival Home Deport, which has actually impacted effectiveness levels in departmentswith the senior manager involved in legal problems presented by the government Trade Payment. With the Advertising and marketing Head putting forward the news of his separation from the business in one year, Jeannie Lewis, the existing head of procedures has been asked to take the function in the near future. With difficulties in the kind of a prospective social adjustment and low staff member morale, the organization requires a total reengineering initiative at the advertising and marketing department.

Issue Statement
Porter's 5 Forces Analysis
The possible social change at the marketing department of Shanakt Consulting An Indian Technology Startups Dilemma is raising uncertainty in the working environment bring about different obstacles 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 duty in impacting calculated decisions since Stapes Inc. had to abandon its plans of merging with Workplace Deport after the Federal Profession Payment's treatment in the process. Provided the reality that the shop has a worldwide presence with branches in UK, USA, Canada and Germany, political consider each of these nations might be able to impact efficiency or tactical goals. Federal Profession Payment's antitrust fit versus the merging took up valuable time of the organization's senior management recommending that 'political' factors can have significant effects for an international company.

Economic Factors: Economic factors such as the introduction of local business in the international circumstance suggest that Shanakt Consulting An Indian Technology Startups Dilemma is flourishing in an atmosphere where there is possible growth of services. Truth that store clients are mostly looking for workplace materials for home offices recommends that the market has an increasing pattern of entrepreneurs and also residence based businesses.

Social factors: Social patterns in the economic climate reveal that consumers are searching for benefit in addition to attractive rates. Market research shows how the consumer for Shanakt Consulting An Indian Technology Startups Dilemma does not have recognition concerning finding services which can supply a mix of comfort as well as low costs.

Technical factors: Technology plays a vital role in Shanakt Consulting An Indian Technology Startups Dilemma's service method specifically as the company is piloting Technology centers which would certainly use modern technology sales as well as support in the type of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and Effects.

Several underlying Business Actions concerns can be seen in Shanakt Consulting An Indian Technology Startups Dilemma's case as highlighted in this section.

Concerns regarding social change: There is uneasiness regarding a social adjustment that would certainly take place once Todd Krasnow leaves from his placement as the Exec Vice President of Marketing with a lot of the team member currently showing discontent over this prospective action. This expected adjustment has actually produced stress and anxiety in the office which has actually been combined with the past tension of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is scarcity of employees that can match the difficult environment of a hectic organization. Not only does this bring about problem in discovering the ideal individuals, it places tension on new hires as can not hold up against the rate and pressure that the company expects them to birth.

Double Reporting Lines: Newbies find this organizational culture cumbersome as well as difficult to manage specifically as populated line connections are suggested to be weak in general as well as unbiased setup as well as performance analysis is still done by the strong line supervisor. This suggests that newcomers could lose clearness regarding their particular functions and also goals especially as populated line coverage does not maintain them in direct communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles despite the fact that it had actually been guessed that the last would take Krasnow's setting came as a strike to her spirits. Lewis may have been capable and also proper for the task however the fact that Kransnow's departure would certainly make Coles a straight record to Lewis might have been the reason for Coles' resignation from services.

Fear & Job Insecurity: Concern as well as insecurity can be identified as 2 major issues that Lewis would certainly be managing especially as the merger has now be terminated and also two elderly execs of the advertising department would be leaving. The entire obligation of the department would certainly be dropping on Lewis's shoulders that would certainly not simply supervise of brining concerning a cultural adjustment but would likewise have to prove herself in her brand-new duty.

Inappropriate Administration Style of Leader: Lewis's management design as well as its incompatibility with the marketing department's function can likewise be seen as an OB obstacle specifically as she has been used to managing issues in the procedures division where workers are taught to concentrate on procedures and get them. The marketing division on the various other hand can be viewed as a group of individuals who are utilized to being nurtured by Krasnow who concentrated much more on result than processes.

Interdepartmental Disagreements: Interdepartmental disputes between three departments, advertising and marketing, merchandizing and also operations respectively over the allotment of the advertising and marketing mix can be recognized as an additional OB problem. Although the advertising and marketing department does not share the same vision as the various other two divisions relating to the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and procedures departments do not agree over the advertising and marketing mix allowance amongst each other either.

Disintegration in Advertising And Marketing Division: Fragmentation in between the advertising and marketing departments can be recognized as another OB concern which might require more attention. The reality that the marketing and advertising areas in the advertising department are separated is stopping both departments from obtaining from each various other's experience and experience. Combination of advertising with retailing as well as procedures would certainly become more difficult if the marketing department itself is broken down which can be one more possible OB worry.

Shanakt Consulting An Indian Technology Startups Dilemma Analysis

Numerous concepts have actually been utilized to discuss the circumstances to get more clarity concerning the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, the majority of managers believe that juniors are passive as well as careless, have little passion as well as withstand modification. The scenario at Shanakt Consulting An Indian Technology Startups Dilemma is not entirely complying with Theory X, it can be seen that brand-new hires are locating this atmosphere rather stressful which may at some point lead to a greater disposition of the monitoring in the direction of Concept X. Even while evaluating Lewis's administration design, theory X may have been appropriate in the operations division to some extent but the Marketing division would certainly call for dependence on Concept Y in order to get the creative thinking and creativity from the groups.

Tuckman's Team effort Concept: As much as Lewis's problem concerning bringing harmony in between the advertising and also advertising and marketing division is worried, this would initially lead to clash as gone over by Bruce Tuckman in his 'Synergy Theory'. By combining the marketing and marketing department's work, there might be the very same initial detach which might lead to the second stage of 'storming' where the teams test one an additional.

When people are offered with modification, they enter phase one and so there may be emotions like unhappiness, uncertainty, disappointment, temper, anxiety, rejection and disorientation.The scenario at the advertising department of Shanakt Consulting An Indian Technology Startups Dilemma is similar so Lewis can get comfortable with the suggestion that it is not amazing habits. It is throughout this phase that Lewis will certainly have to give advice to the division so that they can discover a feeling of direction. It can be seen exactly how Krasnow has actually currently made this change easier by making Lewis obtain included in the department a year before his real departure.
Vrio Analysis
Maslow's Demand pecking order: The OB concern related to instability at the work environment has been activated first of all by the modification in management as well as second of all by the fact that the merging will no more be initiated. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has goes over the relevance of 'protection requires as being a lower level requirement of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see just how 'the need to feel protected as well as untouched' is at the second degree of requirements. Before an employee can be made to establish psychologically, he requires to have his 'Physical 'and 'Security' needs fulfilled. This suggests that unless the employees are made to really feel safe and secure regarding their present work standing in Shanakt Consulting An Indian Technology Startups Dilemma they may not get to 'Self-Fulfillment'. (King, 2009).

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

Ramification of Analysis.

The OB analysis has looked at numerous theories to recognize exactly how to manage the existing situation at hand. The following three choices have actually been proposed to aid Lewis take care of the business difficulties in the advertising and marketing department. Each of these choices has been recommended for reducing the transition needed to bring the marketing department in accordance with the demands of the marketplace as well as for making the cultural adjustment that would comply with when the current leader leaves.

Integration of marketing and advertising features. Dividing Adverting and Manufacturing features. Assimilation of Advertising And Marketing with Operations.

Assessment of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merging days has expertise in business-to-business advertising and marketing along with firm and retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both advertising and marketing and also marketing functions.

The advantage of this method is that it will integrate the two functions while decreasing the need for hiring an additional source for marketing. Lewis would be heading the advertising and marketing division and also in any case her replacement would be needed for the current role that she is doing. The downside of this option is that external hiring might bring about animosity from internal workers who may be eying the position of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and also Manufacturing: Offered the competitive stress as well as high quality work needed from the advertising firm, it is advised that Lewis must permit the manufacturing unit to be a separate feature from the advertising unit. Because a lot of advertising companies had these 2 functions as different devices, it makes more feeling to comply with the standard.

Combination of Advertising with Workflows: Given that Lewis is currently dealing with the advertising and also procedures departments simultaneously; it makes sense to integrate both features because she has actually been effectively caring for both ends. The truth that the two divisions currently have significant distinctions over allotment of sources suggests that this integration might have the ability to produce harmony particularly as Lewis would certainly be heading both ends.However there are various disadvantages of this step particularly as it would certainly place excessive concern over Lewis's shoulders. The fact that Lewis needs to adjust her management style for the marketing division suggests that these two divisions would certainly be culturally varied. Lewis might not be able to use one type of management design to both departments which could result in inefficiency in either one of the 2 features.


An evaluation of the 3 alternatives shows that assimilation of advertising and marketing and also operations would not be a viable step as a result of the vast differences in between both divisions although that currently Lewis is dealing with both. While splitting up of the production feature may have been a beneficial relocation for the advertising department, the reality that it would certainly suggest positioning a third feature under Lewis's wing implies this need to be avoided also. The combination of the advertising department is the most effective alternative in regards to getting the optimum results from the division. An action prepare for this option is talked about listed below.

Action Strategy.
Lewis will certainly take control of the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Manufacturing function will remain component of marketing under advertising and marketing function.

Lewis will certainly separate herself from procedures.

An autonomous management design with employee empowerment will be made use of in advertising and marketing division.

Open door plan and also emphasis on cross departmental communication will certainly be targeted at removing dissonance.

Contingency strategy.

If the integration does not work out as prepared, a contingency strategy would certainly follow which would separate the manufacturing function from the marketing feature to decrease the load on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising division without an SVP. In that case the manufacturing function will absolutely be divided by positioning it under an SVP production.