Palm Computing Inc 1995 Financing Challenges Case Study Solution


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Palm Computing Inc 1995 Financing Challenges Case Study Help

Background and Facts

Palm Computing Inc 1995 Financing Challenges an office supplies seller for tiny as well as average sized businesses has just recently been associated with preparing for a merging with its rival House Deport, which has influenced effectiveness degrees in departmentswith the senior supervisor associated with legal issues put forth by the federal Profession Payment. With the Advertising Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the near future. With difficulties in the kind of a prospective cultural change and low employee morale, the company is in need of a full reengineering initiative at the advertising and marketing department.

Issue Declaration

The potential social change at the marketing department of Palm Computing Inc 1995 Financing Challenges is raising unpredictability in the workplace bring about numerous challenges for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting strategic decisions given that Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Profession Compensation's treatment in the process. Provided the fact that the shop has an international presence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these countries might have the ability to affect efficiency or tactical objectives. Federal Trade Payment's antitrust suit against the merger occupied valuable time of the company's elderly management suggesting that 'political' factors can have significant effects for an international service.

Economic Factors: Economic factors such as the appearance of small businesses in the international situation suggest that Palm Computing Inc 1995 Financing Challenges is growing in an atmosphere where there is prospective growth of organisations. Along with this, reality that shop consumers are primarily looking for workplace products for office recommends that the market has a rising pattern of business owners as well as home organisations.

Social factors: Social fads in the economic situation reveal that customers are searching for benefit as well as eye-catching rates. Marketing research demonstrates how the consumer for Palm Computing Inc 1995 Financing Challenges lacks awareness regarding locating solutions which can provide a mix of convenience as well as low costs.

Technological factors: Technology plays a vital function in Palm Computing Inc 1995 Financing Challenges's service method particularly as the organization is piloting Modern technology facilities which would supply modern technology sales and also support in the form of memory upgrades, outer installments. (Recap of PEST in appendix 2).

OB Issues and also Effects.

Numerous underlying Organizational Habits concerns can be seen in Palm Computing Inc 1995 Financing Challenges's case as highlighted in this section.

Worries about cultural modification: There is apprehension regarding a social change that would take place as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising And Marketing with a lot of the team member already revealing discontent over this possible relocation. This anticipated modification has actually produced stress and anxiety in the office which has actually been combined with the past anxiety of preparing the company for a prospective merging with House Deport.

Stressful Task Atmosphere for Newcomers: There is lack of personnel that can match the difficult atmosphere of a hectic company. Not only does this lead to trouble in locating the ideal people, it places stress on brand-new hires as can not stand up to the pace as well as stress that the company expects them to bear.

Dual Reporting Lines: Beginners find this organizational culture troublesome and challenging to handle particularly as populated line partnerships are suggested to be weak as a whole and objective setting as well as performance analysis is still done by the solid line supervisor. This means that newbies might lose clearness about their corresponding duties as well as objectives specifically as dotted line coverage does not keep them in straight communication with the strong line managers.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles although it had actually been speculated that the latter would take Krasnow's position came as an impact to her spirits. Lewis may have been qualified and also suitable for the job but the fact that Kransnow's separation would make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Job Instability: Fear and insecurity can be identified as two major issues that Lewis would be taking care of particularly as the merger has actually currently be cancelled and also 2 elderly execs of the advertising department would be leaving. The entire duty of the department would be falling on Lewis's shoulders that would certainly not just supervise of brining about a social change however would certainly also need to show herself in her new duty.

Incompatible Administration Style of Leader: Lewis's administration design and also its conflict with the advertising department's duty can additionally be seen as an OB obstacle specifically as she has been used to taking care of problems in the procedures division where employees are educated to focus on processes and also obtain them. The advertising and marketing department on the other hand can be seen as a group of people who are utilized to being nurtured by Krasnow that focused much more on outcome than processes.

Interdepartmental Disputes: Interdepartmental disagreements between 3 divisions, advertising, merchandizing and also operations respectively over the appropriation of the marketing mix can be determined as another OB issue. Although the advertising and marketing division does not share the same vision as the various other two departments pertaining to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and procedures departments do not concur over the advertising and marketing mix allotment amongst each other either.

Fragmentation in Advertising And Marketing Division: Disintegration in between the marketing and advertising divisions can be identified as another OB problem which can need further focus. The fact that the advertising and marketing sections in the advertising department are detached is preventing both divisions from gaining from each various other's experience as well as competence. Combination of advertising and marketing with merchandising and procedures would certainly come to be more difficult if the advertising and marketing division itself is broken down which can be one more prospective OB issue.

Palm Computing Inc 1995 Financing Challenges Analysis

Numerous concepts have been made use of to describe the situations to obtain more quality regarding the scenario available.

McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of managers believe that subordinates are passive and also careless, have little ambition and stand up to modification. The situation at Palm Computing Inc 1995 Financing Challenges is not totally adhering to Theory X, it can be seen that new hires are discovering this setting instead demanding which may at some point lead to a better inclination of the administration in the direction of Concept X. Also while analyzing Lewis's administration style, concept X might have been appropriate in the operations department to some level yet the Marketing division would need dependence on Concept Y in order to get the creativity and also creativity from the teams.

Tuckman's Team effort Concept: As far as Lewis's problem about bringing harmony in between the marketing and marketing department is concerned, this would at first lead to clash as reviewed by Bruce Tuckman in his 'Team effort Concept'. By combining the advertising and marketing and also advertising and marketing division's job, there may be the same initial separate which can lead to the 2nd stage of 'storming' where the teams challenge one another.

Bridges' Shift Design: As per William Bridge's concept (appendix 4), people are quite unpleasant with adjustment, which is evident by the situation at Palm Computing Inc 1995 Financing Challenges The circumstance can be seen as a typical program of life if is studied according to Bridge's concept where he describes that people experience 3 phases of transition when they experience modification. 'Ending, losing as well as Letting go', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they get in phase one therefore there may be emotions like despair, unpredictability, aggravation, temper, worry, denial as well as disorientation.The circumstance at the advertising division of Palm Computing Inc 1995 Financing Challenges is comparable so Lewis can get comfy with the idea that it is not extraordinary behavior. In the 2nd stage, there might be a demand to connect the space between the brand-new as well as old society so Lewis may need to encounter this experience once Krasnow leaves. There might be reduced spirits as well as low efficiency at this stage which should not be taken as a problem. It is during this phase that Lewis will have to offer assistance to the department so that they can find an orientation. It can be seen how Krasnow has actually already made this shift much easier by making Lewis obtain involved in the department a year before his real departure. According to Bridges' Version, stage 3 will certainly cause visibility to discovering, High energy as well as commitment as individuals will certainly embrace the adjustment (Bridges, 2004).

Maslow's Requirement pecking order: The OB concern pertaining to instability at the workplace has actually been set off to start with by the change in administration and also second of all by the fact that the merging will no more be launched. Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has goes over the importance of 'protection needs as being a reduced level need of a human for setting off motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the need to really feel safe and also unharmed' goes to the second level of demands. Before an employee can be made to develop psychologically, he needs to have his 'Physiological 'and 'Safety' requires met. This indicates that unless the personnel are made to really feel safe and secure regarding their present work standing in Palm Computing Inc 1995 Financing Challenges they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Palm Computing Inc 1995 Financing Challenges Case Study

Ramification of Analysis.

The OB analysis has actually considered different concepts to recognize just how to deal with the current situation at hand. The adhering to three choices have been suggested to help Lewis take care of the business challenges in the marketing division. Each of these alternatives has actually been proposed for alleviating the shift needed to bring the marketing department according to the needs of the market as well as for making the cultural change that would certainly follow as soon as the present leader leaves.

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

Examination of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merger days has proficiency in business-to-business advertising and marketing along with agency as well as retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to take care of both marketing and marketing functions.

The advantage of this technique is that it will certainly incorporate the two functions while decreasing the requirement for employing an additional source for advertising. Lewis would be heading the advertising department and in any kind of case her replacement would certainly be required for the existing function that she is executing. The disadvantage of this choice is that exterior hiring may produce animosity from inner employees who might be looking at the placement of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting as well as Manufacturing: Given the competitive stress and top quality work required from the advertising agency, it is suggested that Lewis needs to permit the production unit to be a different function from the advertising system. Because most advertising agencies had these two features as separate units, it makes more feeling to follow the norm. Both features might be able to focus on their core turns on more efficiently. Nonetheless, the negative aspect of this strategy would be that added prices would certainly have to be borne for establishing different production features. In addition to this, a manufacturing head may need to be employed which could boost expenses for the organization.

Integration of Advertising And Marketing with Operations: Since Lewis is currently taking care of the advertising and marketing as well as procedures departments simultaneously; it makes sense to incorporate the two features since she has actually been efficiently taking care of both ends. The reality that Lewis has to adapt her management design for the advertising and marketing division suggests that these 2 departments would be culturally varied.


An assessment of the three alternatives shows that combination of marketing and also procedures would certainly not be a practical step because of the large differences in between both divisions although that presently Lewis is dealing with both. While separation of the production feature might have been a favorable step for the advertising division, the truth that it would imply positioning a 3rd feature under Lewis's wing means this must be avoided as well. The integration of the marketing division is the best option in regards to getting the ideal results from the department. An action prepare for this alternative is gone over below.

Action Strategy.

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

Advertising and Marketing features would be merged.

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

Manufacturing function will continue to be component of advertising under advertising function.

Lewis will certainly divide herself from procedures.

A democratic leadership style with employee empowerment will be utilized in advertising and marketing division.

Open door plan and focus on cross departmental communication will be targeted at eliminating dissonance.

Backup strategy.

If the combination does not work out as planned, a backup strategy would follow which would certainly divide the manufacturing feature from the advertising feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the marketing division without an SVP. In that case the manufacturing function will absolutely be divided by positioning it under an SVP production.