Palm Computing Inc 1995 Financing Challenges Case Study Analysis


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Palm Computing Inc 1995 Financing Challenges Case Study Help

Background and Facts

Palm Computing Inc 1995 Financing Challenges an office materials retailer for small as well as average sized companies has actually just recently been involved in planning for a merging with its rival Residence Deport, which has influenced efficiency levels in departmentswith the senior manager involved in lawful problems presented by the government Trade Compensation. With the Marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the role in the future. With difficulties in the type of a possible social change as well as low employee spirits, the organization requires a full reengineering initiative at the marketing department.

Issue Declaration
Porter's 5 Forces Analysis
The potential social modification at the advertising department of Palm Computing Inc 1995 Financing Challenges is boosting uncertainty in the workplace causing numerous 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 influencing calculated decisions because Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Profession Compensation's treatment at the same time. Offered the fact that the store has a global existence with branches in UK, USA, Canada and Germany, political consider each of these nations may have the ability to affect performance or calculated objectives. Federal Profession Commission's antitrust match against the merger occupied beneficial time of the organization's senior monitoring recommending that 'political' factors can have significant implications for a worldwide company.

Economic Factors: Economic factors such as the introduction of small businesses in the worldwide circumstance recommend that Palm Computing Inc 1995 Financing Challenges is growing in an atmosphere where there is possible development of businesses. Reality that shop consumers are primarily looking for workplace products for house offices recommends that the market has a rising pattern of business owners and residence based services.

Social factors: Social fads in the economy reveal that consumers are searching for convenience in addition to attractive rates. Marketing research shows how the consumer for Palm Computing Inc 1995 Financing Challenges does not have awareness about locating solutions which can provide a combination of ease and also low costs.

Technological factors: Innovation plays a crucial role in Palm Computing Inc 1995 Financing Challenges's business approach specifically as the company is piloting Technology facilities which would certainly use innovation sales as well as support in the type of memory upgrades, peripheral setups. (Summary of PEST in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Organizational Actions issues can be seen in Palm Computing Inc 1995 Financing Challenges's case as highlighted in this area.

Worries regarding social change: There is uneasiness about a cultural adjustment that would happen when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with a lot of the personnel already revealing discontent over this potential relocation. This expected modification has actually developed tension in the work environment which has actually been combined with the past stress and anxiety of preparing the firm for a possible merger with Residence Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is shortage of workers that can match the difficult atmosphere of a fast-paced company. Not just does this bring about difficulty in finding the best people, it puts stress and anxiety on brand-new hires as can not hold up against the pace as well as stress that the company expects them to birth.

Twin Reporting Lines: Beginners find this organizational society cumbersome and also challenging to cope with particularly as populated line partnerships are implied to be weak generally and unbiased setup and efficiency assessment is still done by the strong line manager. This suggests that newbies might lose clearness about their corresponding duties as well as objectives particularly as dotted line coverage does not maintain them in straight interaction with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles although it had actually been hypothesized that the last would certainly take Krasnow's placement came as a blow to her spirits. Lewis may have been qualified and appropriate for the job however the truth that Kransnow's departure would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from services.

Concern & Job Insecurity: Concern as well as insecurity can be recognized as 2 significant worries that Lewis would be dealing with specifically as the merging has now be cancelled and two senior execs of the marketing department would certainly be leaving. The whole duty of the division would be falling on Lewis's shoulders who would certainly not simply supervise of brining concerning a social adjustment yet would certainly also need to verify herself in her brand-new duty.

Incompatible Management Style of Leader: Lewis's management design and also its incompatibility with the marketing department's function can likewise be seen as an OB challenge specifically as she has been made use of to managing issues in the operations division where workers are taught to concentrate on procedures and get them. The advertising department on the other hand can be viewed as a group of people that are used to being supported by Krasnow that concentrated extra on output than processes.

Interdepartmental Disputes: Interdepartmental differences in between 3 divisions, marketing, merchandizing and operations specifically over the appropriation of the advertising mix can be identified as one more OB issue. The advertising division does not share the exact same vision as the various other 2 divisions concerning the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and also procedures departments do not concur over the marketing mix allocation amongst one an additional either.

Fragmentation in Advertising And Marketing Department: Fragmentation between the advertising and marketing departments can be identified as an additional OB issue which might need further focus. The truth that the advertising and marketing sections in the advertising department are separated is stopping both departments from getting from each other's experience and experience. Integration of advertising and marketing with retailing and also procedures would end up being harder if the advertising and marketing department itself is broken down which can be an additional prospective OB issue.

Palm Computing Inc 1995 Financing Challenges Analysis

Numerous concepts have actually been utilized to clarify the scenarios to obtain additional clarity concerning the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many managers believe that staffs are easy and also lazy, have little passion as well as withstand change. The situation at Palm Computing Inc 1995 Financing Challenges is not entirely following Theory X, it can be seen that brand-new hires are locating this setting rather stressful which might eventually lead to a higher disposition of the monitoring in the direction of Theory X. Even while analyzing Lewis's management style, theory X might have been ideal in the operations division to some degree however the Marketing division would certainly require dependence on Theory Y in order to obtain the creative thinking as well as creativity from the teams.

Tuckman's Synergy Theory: As far as Lewis's problem concerning bringing harmony in between the advertising and advertising and marketing division is concerned, this would at first lead to contrast as talked about by Bruce Tuckman in his 'Team effort Theory'. By combining the marketing and advertising and marketing division's job, there might be the same initial detach which might lead to the second stage of 'storming' where the teams challenge one another.

Bridges' Transition Version: According To William Bridge's theory (appendix 4), people are quite uneasy with change, which is apparent by the scenario at Palm Computing Inc 1995 Financing Challenges The scenario can be viewed as a typical training course of life if is examined according to Bridge's theory where he discusses that individuals experience three stages of shift when they experience adjustment. 'Ending, losing and Letting go', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people exist with adjustment, they go into stage one therefore there may be emotions like sadness, unpredictability, stress, rage, fear, rejection and disorientation.The situation at the advertising and marketing department of Palm Computing Inc 1995 Financing Challenges is comparable so Lewis can obtain comfortable with the concept that it is not phenomenal habits. In the second phase, there may be a need to bridge the space between the new and also old society so Lewis might need to face this challenge as soon as Krasnow leaves. There might be low morale and also low performance at this stage which ought to not be taken as a problem. It is throughout this stage that Lewis will need to give guidance to the division to make sure that they can find a sense of direction. It can be seen just how Krasnow has already made this change less complicated by making Lewis get involved in the department a year prior to his real separation. As per Bridges' Version, stage three will produce visibility to discovering, High power and also commitment as people will certainly accept the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Need pecking order: The OB issue pertaining to insecurity at the office has actually been triggered firstly by the adjustment in management and second of all by the fact that the merger will no longer be started. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has goes over the relevance of 'safety and security requires as being a lower degree need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel safe and secure and also unharmed' goes to the 2nd degree of demands. Before a worker can be made to develop mentally, he needs to have his 'Physiological 'as well as 'Safety and security' needs met. This suggests that unless the personnel are made to really feel secure about their current employment standing in Palm Computing Inc 1995 Financing Challenges they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Palm Computing Inc 1995 Financing Challenges Case Study

Ramification of Analysis.

The OB analysis has checked out different theories to understand just how to cope with the present situation handy. The complying with three options have actually been proposed to help Lewis manage the organizational difficulties in the advertising and marketing department. Each of these alternatives has actually been proposed for reducing the transition needed to bring the advertising division in accordance with the requirements of the market as well as for making the cultural change that would certainly comply with once the present leader leaves.

Combination of advertising and marketing features. Separating Adverting and also Production features. Assimilation of Advertising And Marketing with Operations.

Examination of Alternatives.

Combination of Advertising And Marketing & Advertising And Marketing Functions: The internal marketing company of Palm Computing Inc 1995 Financing Challenges is currently stamina for the organization in regards to saving up on expenses related to advertising and promotion. Since no brand-new employment has been done after Bridget Cole's separation with the coverage line being directly assigned to Krasnow for the advertising and marketing function, this is a positive possibility for incorporating the advertising and marketing features. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merger days has expertise in business-to-business advertising and marketing along with company and also retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to take care of both advertising and marketing functions.

The benefit of this technique is that it will integrate both functions while lowering the demand for working with an extra source for marketing. In addition to this, Lewis would be heading the marketing division and all the same her substitute would be required for the current duty that she is carrying out. The downside of this choice is that exterior hiring may bring about bitterness from internal workers that might be eying the setting of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and Manufacturing: Provided the competitive stress and high quality job required from the ad agency, it is suggested that Lewis needs to allow the manufacturing system to be a different feature from the marketing system. Given that the majority of advertising agencies had these 2 features as different devices, it makes more feeling to adhere to the standard. Along with this, both functions may be able to focus on their core triggers much more successfully. However, the negative aspect of this strategy would be that extra expenses would certainly have to be borne for setting up different production features. A production head may have to be employed which could raise overheads for the company.

Integration of Marketing with Procedures: Because Lewis is already taking treatment of the advertising and marketing and operations divisions concurrently; it makes sense to integrate the two functions considering that she has been successfully taking treatment of both ends. The truth that Lewis has to adapt her administration design for the advertising division suggests that these 2 divisions would be culturally varied.


An analysis of the 3 choices shows that integration of marketing and operations would not be a practical move due to the vast distinctions in between the two departments in spite of the reality that presently Lewis is handling both. While separation of the manufacturing feature may have been a favorable relocation for the advertising division, the reality that it would suggest putting a third feature under Lewis's wing means this should be avoided.

Activity Plan.
Lewis will take control of the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would certainly be combined.

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

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

Lewis will separate herself from procedures.

An autonomous leadership design with employee empowerment will certainly be used in advertising and marketing department.

Open door policy as well as focus on cross department communication will certainly be focused on removing discord.

Backup plan.

If the integration does not work out as prepared, a backup strategy would adhere to which would certainly divide the manufacturing function from the advertising feature to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising division without an SVP. Because case the manufacturing feature will certainly be separated by placing it under an SVP production.