Palm Computing Inc 1995 Financing Challenges Case Study Analysis


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Palm Computing Inc 1995 Financing Challenges Case Study Solution

Background and Facts

Palm Computing Inc 1995 Financing Challenges an office products retailer for small and also moderate sized businesses has actually just recently been associated with planning for a merger with its competitor Home Deport, which has actually influenced effectiveness levels in departmentswith the senior supervisor involved in legal complications presented by the federal Profession Compensation. With the Advertising Head advancing the news of his departure from the firm in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the role in the future. With difficulties in the type of a prospective social modification and also reduced staff member spirits, the company wants a full reengineering effort at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising and marketing division of Palm Computing Inc 1995 Financing Challenges is boosting uncertainty in the workplace leading to different challenges 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 major role in impacting critical decisions since Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Compensation's treatment at the same time. Offered the truth that the store has a global presence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these nations may be able to impact performance or critical objectives. Federal Profession Commission's antitrust fit versus the merging occupied valuable time of the organization's senior monitoring recommending that 'political' factors can have severe ramifications for a worldwide service.

Economic Factors: Economic factors such as the introduction of small companies in the international situation suggest that Palm Computing Inc 1995 Financing Challenges is flourishing in an environment where there is potential growth of organisations. In addition to this, reality that store customers are primarily looking for workplace products for office suggests that the marketplace has an increasing pattern of entrepreneurs as well as home based organisations.

Social factors: Social fads in the economy reveal that clients are seeking convenience in addition to appealing costs. Marketing research demonstrates how the customer for Palm Computing Inc 1995 Financing Challenges lacks understanding concerning locating solutions which can provide a combination of ease and low costs.

Technical factors: Technology plays an important function in Palm Computing Inc 1995 Financing Challenges's service method specifically as the company is piloting Innovation centers which would supply modern technology sales as well as support in the kind of memory upgrades, peripheral installations. (Recap of PEST in appendix 2).

OB Issues and Manifestations.

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

Concerns regarding cultural change: There is uneasiness about a cultural change that would certainly occur as soon as Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising with the majority of the employee currently showing discontent over this possible move. This expected change has produced stress in the workplace which has been coupled with the previous anxiety of preparing the firm for a potential merger with Residence Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is shortage of workers that can match the difficult setting of a fast-paced organization. Not only does this lead to trouble in finding the right people, it puts anxiety on brand-new hires as can not endure the pace and also stress that the company anticipates them to bear.

Dual Coverage Lines: Newcomers discover this organizational culture troublesome and tough to manage specifically as populated line partnerships are meant to be weaker generally as well as objective setup as well as performance assessment is still done by the strong line supervisor. This means that newbies can shed clearness concerning their particular duties and objectives particularly as dotted line coverage does not keep them in straight interaction with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles even though it had been guessed that the latter would certainly take Krasnow's setting came as an impact to her morale. Lewis might have been qualified and suitable for the task however the reality that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Work Insecurity: Worry and insecurity can be determined as two major concerns that Lewis would certainly be taking care of specifically as the merging has actually now be terminated and two elderly execs of the advertising division would certainly be leaving. The entire responsibility of the department would be dropping on Lewis's shoulders that would certainly not just be in charge of brining regarding a cultural modification but would also need to prove herself in her brand-new function.

Incompatible Monitoring Design of Leader: Lewis's management style and its conflict with the marketing division's function can also be viewed as an OB challenge specifically as she has been used to taking care of issues in the operations department where personnel are educated to concentrate on processes and obtain them right. The marketing division on the other hand can be viewed as a group of individuals who are utilized to being nurtured by Krasnow that focused extra on outcome than processes.

Interdepartmental Disagreements: Interdepartmental arguments in between three divisions, advertising, merchandizing and procedures respectively over the allowance of the advertising mix can be determined as another OB problem. The advertising and marketing division does not share the very same vision as the various other 2 departments pertaining to the aloocation of the advertising mix twoards promos and also advertsing, the merchandizing and also operations departments do not concur over the advertising mix allotment amongst one an additional either.

Fragmentation in Advertising Division: Fragmentation between the advertising and marketing departments can be recognized as one more OB problem which can need additional attention. The fact that the advertising and marketing areas in the advertising and marketing division are detached is avoiding both divisions from obtaining from each various other's experience and also competence. Combination of advertising with retailing as well as procedures would certainly come to be more difficult if the marketing department itself is broken down which can be an additional possible OB issue.

Palm Computing Inc 1995 Financing Challenges Analysis

Various theories have been made use of to explain the scenarios to get more clearness concerning the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers think that subordinates are easy and also careless, have little passion and resist modification. The situation at Palm Computing Inc 1995 Financing Challenges is not totally complying with Theory X, it can be seen that brand-new hires are locating this atmosphere instead difficult which may at some point lead to a greater inclination of the monitoring in the direction of Theory X. Also while evaluating Lewis's monitoring design, theory X may have been appropriate in the operations division to some degree however the Advertising and marketing division would certainly need dependence on Concept Y in order to get the creativity and originality from the teams.

Tuckman's Teamwork Concept: As far as Lewis's issue about bringing consistency between the marketing as well as advertising division is concerned, this would at first lead to contrast as discussed by Bruce Tuckman in his 'Teamwork Theory'. By combining the marketing and advertising department's work, there may be the same preliminary separate which might lead to the 2nd stage of 'storming' where the groups challenge one another.

When individuals are provided with modification, they go into phase one and so there may be emotions like unhappiness, uncertainty, aggravation, rage, concern, denial and disorientation.The scenario at the advertising and marketing division of Palm Computing Inc 1995 Financing Challenges is comparable so Lewis can get comfy with the idea that it is not amazing actions. It is throughout this stage that Lewis will certainly have to provide assistance to the division so that they can discover a feeling of instructions. It can be seen exactly how Krasnow has actually currently made this transition simpler by making Lewis get included in the division a year before his real separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has talks about the relevance of 'protection requires as being a reduced level need of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and out of danger' is at the 2nd level of demands. Before an employee can be made to create mentally, he requires to have his 'Physical 'and 'Security' needs fulfilled.

SWOT Analysis for Palm Computing Inc 1995 Financing Challenges Case Study

Effects of Analysis.

The OB analysis has actually checked out various theories to understand exactly how to cope with the existing circumstance at hand. The complying with three alternatives have been proposed to aid Lewis handle the business challenges in the marketing division. Each of these alternatives has been proposed for reducing the change required to bring the advertising division in accordance with the demands of the market and for making the social modification that would adhere to when the present leader leaves.

Integration of marketing and advertising features. Dividing Adverting and Manufacturing functions. Combination of Marketing with Procedures.

Examination of Alternatives.

Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merging days has competence in business-to-business marketing along with company and also retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to deal with both advertising as well as advertising functions.

The advantage of this approach is that it will incorporate both features while reducing the need for employing an extra resource for advertising and marketing. Along with this, Lewis would be heading the marketing division and regardless her substitute would certainly be needed for the present role that she is executing. The downside of this alternative is that external hiring may cause bitterness from internal workers who may be eying the placement of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Manufacturing: Provided the affordable pressures as well as premium quality job needed from the advertising agency, it is advised that Lewis ought to allow the manufacturing device to be a different function from the advertising device. Considering that the majority of advertising agencies had these two features as different devices, it makes even more sense to adhere to the norm. Along with this, both features may have the ability to focus on their core triggers more efficiently. The negative aspect of this approach would be that additional costs would certainly have to be birthed for establishing up different production functions. A manufacturing head may have to be hired which can enhance overheads for the company.

Assimilation of Marketing with Operations: Considering that Lewis is currently dealing with the advertising and marketing and operations divisions at the same time; it makes good sense to incorporate both functions considering that she has actually been successfully taking care of both ends. The truth that both departments currently have major distinctions over appropriation of sources suggests that this combination may have the ability to produce harmony especially as Lewis would be heading both ends.However there are numerous drawbacks of this action particularly as it would put way too much concern over Lewis's shoulders. The reality that Lewis has to adjust her monitoring style for the marketing division suggests that these two departments would certainly be culturally varied. Lewis may not be able to use one kind of leadership style to both departments which might result in inefficiency in either one of the two functions.


An analysis of the three choices shows that combination of advertising and marketing and also operations would not be a viable relocation due to the huge differences in between both divisions despite the fact that presently Lewis is dealing with both. While separation of the production function may have been a positive relocation for the advertising department, the reality that it would certainly mean putting a 3rd function under Lewis's wing suggests this ought to be avoided. The assimilation of the advertising and marketing division is the best alternative in regards to getting the optimal arise from the department. An action prepare for this alternative is reviewed below.

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

Marketing and advertising features would certainly be combined.

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

Manufacturing feature will remain part of advertising under marketing function.

Lewis will divide herself from operations.

A democratic leadership design with worker empowerment will certainly be made use of in marketing division.

Open door plan as well as focus on cross departmental interaction will certainly be targeted at removing dissonance.

Contingency plan.

If the combination does not work out as planned, a backup strategy would comply with which would separate the manufacturing function from the advertising and marketing feature to decrease the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising and marketing division without an SVP. In that case the manufacturing function will most definitely be divided by positioning it under an SVP manufacturing.