Everything You Dont Want To Know About Raising Capital Case Study Solution


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Everything You Dont Want To Know About Raising Capital Case Study Analysis

Background and Facts

Everything You Dont Want To Know About Raising Capital an office products seller for small and moderate sized services has actually just recently been associated with planning for a merging with its competitor Residence Deport, which has influenced efficiency levels in departmentswith the elderly supervisor involved in legal complications presented by the federal Trade Payment. With the Marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the role in the near future. With difficulties in the kind of a potential cultural change and also reduced staff member morale, the organization requires a complete reengineering initiative at the marketing division.

Issue Declaration

The possible social adjustment at the advertising and marketing division of Everything You Dont Want To Know About Raising Capital is boosting uncertainty in the working environment causing numerous challenges for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting calculated choices because Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Trade Payment's intervention in the process. Provided the truth that the shop has a global visibility with branches in UK, USA, Canada and Germany, political consider each of these nations may be able to affect performance or strategic goals. Federal Profession Payment's antitrust fit against the merger occupied valuable time of the organization's elderly management recommending that 'political' factors can have severe effects for a worldwide organisation.

Economic Factors: Economic factors such as the development of local business in the international situation suggest that Everything You Dont Want To Know About Raising Capital is thriving in an atmosphere where there is possible development of services. In addition to this, reality that store customers are primarily looking for office materials for home offices suggests that the marketplace has a rising trend of entrepreneurs as well as online services.

Social factors: Social patterns in the economy reveal that consumers are trying to find benefit as well as eye-catching costs. Market research shows how the consumer for Everything You Dont Want To Know About Raising Capital does not have understanding concerning locating options which can use a combination of ease and inexpensive.

Technical factors: Modern technology plays a crucial role in Everything You Dont Want To Know About Raising Capital's business method specifically as the company is piloting Technology centers which would certainly provide technology sales and support in the kind of memory upgrades, peripheral installations. (Summary of PARASITE in appendix 2).

OB Issues and Manifestations.

Several underlying Business Actions concerns can be seen in Everything You Dont Want To Know About Raising Capital's case as highlighted in this section.

Concerns about social change: There is apprehension about a cultural adjustment that would certainly take place once Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising And Marketing with the majority of the employee already showing unhappiness over this potential relocation. This predicted adjustment has created stress and anxiety in the office which has been paired with the previous anxiety of preparing the company for a potential merger with Home Deport.

Difficult Work Environment for Newcomers: There is shortage of employees that can match the demanding atmosphere of a hectic organization. Not only does this lead to problem in discovering the ideal individuals, it puts anxiety on brand-new hires as can not withstand the speed as well as stress that the company expects them to birth.

Twin Reporting Lines: Novices find this organizational culture cumbersome and also hard to cope with specifically as dotted line connections are implied to be weaker generally and objective setup and also performance assessment is still done by the solid line supervisor. This implies that newcomers can shed clearness about their corresponding duties and also objectives especially as populated line coverage does not keep them in direct interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles despite the fact that it had actually been guessed that the latter would certainly take Krasnow's position came as a strike to her spirits. Lewis might have been capable as well as appropriate for the job yet the fact that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Task Instability: Anxiety as well as insecurity can be determined as 2 major problems that Lewis would be dealing with particularly as the merging has actually currently be terminated as well as 2 senior executives of the advertising and marketing department would certainly be leaving. The whole duty of the department would be falling on Lewis's shoulders that would certainly not simply supervise of brining about a cultural modification however would certainly additionally have to verify herself in her brand-new role.

Inappropriate Monitoring Design of Leader: Lewis's monitoring design and its incompatibility with the marketing department's duty can additionally be seen as an OB difficulty specifically as she has actually been used to managing concerns in the operations division where employees are instructed to focus on procedures and also obtain them. The advertising and marketing division on the other hand can be seen as a team of individuals that are utilized to being nurtured by Krasnow that focused extra on outcome than procedures.

Interdepartmental Disputes: Interdepartmental disagreements between 3 departments, advertising, merchandizing and also procedures specifically over the allotment of the marketing mix can be determined as one more OB worry. Although the marketing division does not share the same vision as the other two divisions relating to the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing as well as operations divisions do not concur over the marketing mix allocation among each other either.

Disintegration in Advertising And Marketing Department: Fragmentation in between the marketing and advertising divisions can be recognized as one more OB concern which could need more interest. The reality that the advertising and marketing areas in the advertising and marketing department are separated is protecting against both departments from obtaining from each other's experience and proficiency. Assimilation of advertising and marketing with retailing and operations would certainly become harder if the advertising and marketing department itself is broken down which can be an additional potential OB problem.

Everything You Dont Want To Know About Raising Capital Analysis

Different theories have been used to describe the conditions to get more clarity about the scenario handy.

McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors think that juniors are easy as well as lazy, have little ambition and also resist change. The difficult variation of this concept stressed browbeating, limited controls, risks as well as punishments. In time it produces reduced performance, refined sabotage and competition (Bargain, 2003). The situation at Everything You Dont Want To Know About Raising Capital is not entirely following Concept X, it can be seen that new hires are finding this atmosphere instead difficult which might at some point lead to a better disposition of the management towards Theory X. As per McGregor's advocated sight, which he called Theory Y, the important job of the management is to organize organizational problems to ensure that people can achieve their very own objectives best by guiding their initiatives towards organizational benefits. If individuals find no satisfaction in their job, the management would have little option but to count on concept X and external control (Bargain, 2003). Even while evaluating Lewis's administration style, concept X may have appropriated in the operations department to some extent but the Marketing division would require reliance on Concept Y in order to get the creative thinking and creativity from the groups.

Tuckman's Synergy Theory: Regarding Lewis's issue about bringing harmony between the advertising and marketing division is concerned, this would at first bring about clash as talked about by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's theory displayed in appendix 3, during the initial phase of group advancement, people might not bond, as they are busy discovering their location in the team. By integrating the marketing and advertising department's work, there might be the same first separate which might result in the 2nd phase of 'storming' where the groups challenge one another. It is only throughout the third phase or 'norming' when they would come with each other to share concepts prior to the group can bring around harmony in the 4th stage 'executing'.

When individuals are presented with change, they enter stage one and also so there might be feelings like sadness, unpredictability, disappointment, anger, concern, denial and also disorientation.The scenario at the marketing department of Everything You Dont Want To Know About Raising Capital is similar so Lewis can get comfy with the concept that it is not extraordinary actions. It is throughout this stage that Lewis will have to give support to the department so that they can find a feeling of instructions. It can be seen exactly how Krasnow has currently made this change easier by making Lewis get entailed in the division a year before his real departure.

Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has reviews the value of 'safety needs as being a reduced degree demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel safe and secure as well as out of risk' is at the 2nd level of needs. Prior to a staff member can be made to develop emotionally, he requires to have his 'Physiological 'and also 'Safety' needs met.

SWOT Analysis for Everything You Dont Want To Know About Raising Capital Case Study

Implication of Analysis.

The OB analysis has checked out different concepts to comprehend just how to manage the present situation at hand. The following 3 options have actually been recommended to aid Lewis manage the business challenges in the marketing department. Each of these alternatives has actually been recommended for alleviating the change needed to bring the advertising and marketing division according to the demands of the market and for making the cultural change that would follow once the current leader leaves.

Assimilation of marketing and advertising functions. Dividing Adverting as well as Production features. Assimilation of Advertising with Operations.

Analysis of Alternatives.

Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merger days has know-how in business-to-business marketing along with company and retail marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to manage both marketing as well as advertising and marketing functions.

The advantage of this approach is that it will certainly incorporate the two features while decreasing the requirement for employing an added source for marketing. Along with this, Lewis would certainly be heading the advertising division as well as all the same her replacement would certainly be needed for the present function that she is carrying out. The negative aspect of this alternative is that outside hiring might bring about animosity from interior workers who may be looking at the placement of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting as well as Production: Provided the competitive pressures as well as excellent quality work required from the ad agency, it is suggested that Lewis should allow the production unit to be a separate feature from the advertising and marketing unit. Given that most advertising agencies had these 2 features as different systems, it makes even more sense to adhere to the standard. Both features might be able to concentrate on their core triggers much more effectively. The negative aspect of this technique would be that extra expenses would have to be borne for setting up separate production features. In addition to this, a manufacturing head may have to be worked with which could enhance expenses for the organization.

Combination of Advertising with Workflows: Given that Lewis is currently taking care of the marketing and procedures departments concurrently; it makes sense to incorporate the two features considering that she has been efficiently looking after both ends. The reality that both departments currently have significant distinctions over allocation of resources recommends that this combination may be able to produce consistency specifically as Lewis would be heading both ends.However there are different negative aspects of this move specifically as it would certainly put excessive concern over Lewis's shoulders. The reality that Lewis has to adapt her management style for the advertising division recommends that these 2 departments would be culturally diverse. In addition to this, Lewis may not have the ability to use one sort of management style to both departments which can cause inefficiency in either among both features.


An evaluation of the 3 choices shows that integration of marketing and also procedures would not be a feasible action due to the large distinctions in between both divisions although that currently Lewis is managing both. While splitting up of the manufacturing function might have been a desirable relocation for the advertising and marketing department, the fact that it would indicate placing a 3rd function under Lewis's wing indicates this should be stayed clear of. The assimilation of the advertising department is the very best alternative in terms of obtaining the optimal arise from the department. An activity prepare for this option is discussed below.

Activity Strategy.

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

Marketing and advertising functions would be combined.

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

Production feature will certainly continue to be component of marketing under advertising and marketing function.

Lewis will certainly divide herself from operations.

An autonomous management style with worker empowerment will certainly be made use of in marketing division.

Open up door policy as well as focus on cross department interaction will be aimed at removing dissonance.

Backup strategy.

If the combination does not work out as intended, a backup plan would follow which would certainly divide the production function from the marketing feature to reduce the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising and marketing division without an SVP. Because case the production function will certainly be divided by putting it under an SVP manufacturing.