Walnut Venture Associates A Rbs Group Investment Memorandum Case Study Help


Home >> Darden >> Walnut Venture Associates A Rbs Group Investment Memorandum >>

Walnut Venture Associates A Rbs Group Investment Memorandum Case Study Analysis

Background and Facts

Walnut Venture Associates A Rbs Group Investment Memorandum an office products retailer for small and average sized organisations has just recently been associated with planning for a merging with its competitor Residence Deport, which has affected performance degrees in departmentswith the senior manager involved in legal difficulties put forth by the government Profession Compensation. With the Advertising and marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the function in the future. With obstacles in the type of a possible social modification as well as low employee spirits, the company needs a total reengineering initiative at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The potential social change at the marketing department of Walnut Venture Associates A Rbs Group Investment Memorandum is raising uncertainty in the working environment causing different obstacles 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 role in affecting tactical decisions considering that Stapes Inc. needed to desert its strategies of merging with Workplace Deport after the Federal Profession Payment's intervention at the same time. Provided the truth that the store has a worldwide existence with branches in UK, U.S.A., Canada and Germany, political factors in each of these countries may be able to affect efficiency or strategic goals. Federal Profession Payment's antitrust fit versus the merging used up important time of the organization's elderly management recommending that 'political' factors can have severe implications for a global organisation.

Economic Factors: Economic factors such as the emergence of small businesses in the global circumstance recommend that Walnut Venture Associates A Rbs Group Investment Memorandum is prospering in a setting where there is potential growth of organisations. In addition to this, fact that store clients are primarily searching for office supplies for home offices recommends that the marketplace has a rising trend of business owners and also online organisations.

Social factors: Social patterns in the economy reveal that clients are searching for ease along with eye-catching rates. Marketing research demonstrates how the customer for Walnut Venture Associates A Rbs Group Investment Memorandum lacks understanding regarding locating services which can supply a mix of benefit as well as inexpensive.

Technical factors: Innovation plays a crucial role in Walnut Venture Associates A Rbs Group Investment Memorandum's company method particularly as the organization is piloting Innovation centers which would use modern technology sales and assistance in the form of memory upgrades, outer installments. (Summary of PEST in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Business Habits issues can be seen in Walnut Venture Associates A Rbs Group Investment Memorandum's case as highlighted in this area.

Uneasiness regarding social modification: There is concern regarding a social modification that would take place once Todd Krasnow leaves from his setting as the Executive Vice Head Of State of Advertising And Marketing with most of the employee already revealing discontent over this possible relocation. This expected modification has actually created stress and anxiety in the office which has been coupled with the previous stress of preparing the company for a possible merging with House Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is scarcity of employees that can match the demanding environment of a hectic company. Not just does this cause trouble in locating the ideal individuals, it places tension on new hires as can not endure the pace as well as pressure that the organization anticipates them to bear.

Twin Reporting Lines: Newbies find this organizational culture troublesome and also challenging to manage particularly as populated line connections are meant to be weaker as a whole and also objective setting and also performance assessment is still done by the strong line supervisor. This implies that novices could shed quality about their particular functions and also goals especially as dotted line coverage does not keep them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor rather than Bridget Coles although it had been guessed that the latter would certainly take Krasnow's placement came as a blow to her spirits. Lewis might have been qualified and ideal for the job however the fact that Kransnow's separation would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Task Instability: Concern and also insecurity can be determined as two significant concerns that Lewis would certainly be managing especially as the merging has actually currently be terminated as well as two senior execs of the advertising and marketing department would certainly be leaving. The entire duty of the division would be falling on Lewis's shoulders who would certainly not just supervise of brining regarding a cultural adjustment yet would likewise have to show herself in her brand-new role.

Inappropriate Administration Style of Leader: Lewis's administration design and also its conflict with the advertising and marketing division's function can also be viewed as an OB difficulty specifically as she has been utilized to taking care of concerns in the procedures department where personnel are shown to concentrate on processes and get them right. The advertising and marketing division on the other hand can be seen as a group of individuals that are used to being nurtured by Krasnow who concentrated extra on output than procedures.

Interdepartmental Disputes: Interdepartmental disputes in between three divisions, advertising and marketing, merchandizing and also operations respectively over the allocation of the marketing mix can be recognized as an additional OB issue. Although the advertising department does not share the same vision as the various other two departments concerning the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and also procedures departments do not concur over the marketing mix allotment amongst one another either.

Disintegration in Advertising Division: Disintegration between the marketing and advertising departments can be recognized as another OB issue which could need further attention. The fact that the advertising and marketing sections in the marketing department are disconnected is stopping both divisions from obtaining from each other's experience and also experience. Combination of marketing with retailing and operations would become more difficult if the advertising division itself is disintegrated which can be one more possible OB problem.

Walnut Venture Associates A Rbs Group Investment Memorandum Analysis

Various concepts have actually been utilized to explain the circumstances to obtain further clarity regarding the situation at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors think that juniors are easy as well as lazy, have little ambition and stand up to modification. The situation at Walnut Venture Associates A Rbs Group Investment Memorandum is not totally following Concept X, it can be seen that new hires are discovering this atmosphere rather difficult which might at some point lead to a higher inclination of the monitoring towards Concept X. Even while evaluating Lewis's management design, theory X may have been ideal in the operations department to some extent however the Marketing department would certainly call for dependence on Concept Y in order to obtain the imagination as well as originality from the groups.

Tuckman's Team effort Concept: As far as Lewis's problem concerning bringing harmony in between the advertising and also advertising department is concerned, this would originally lead to contrast as gone over by Bruce Tuckman in his 'Synergy Theory'. By integrating the advertising and marketing and also marketing division's work, there may be the same preliminary detach which can lead to the second phase of 'storming' where the teams challenge one an additional.

When people are offered with change, they go into stage one and also so there might be feelings like despair, uncertainty, stress, rage, anxiety, rejection and also disorientation.The circumstance at the marketing department of Walnut Venture Associates A Rbs Group Investment Memorandum is comparable so Lewis can obtain comfortable with the suggestion that it is not phenomenal behavior. It is throughout this phase that Lewis will have to provide assistance to the department so that they can find a sense of direction. It can be seen how Krasnow has already made this transition simpler by making Lewis obtain entailed in the division a year prior to his real separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Pecking order' (appendix 5) has goes over the value of 'safety and security needs as being a lower degree requirement of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the need to feel protected as well as out of danger' is at the 2nd level of demands. Before an employee can be made to create mentally, he needs to have his 'Physical 'and also 'Security' needs satisfied.

SWOT Analysis for Walnut Venture Associates A Rbs Group Investment Memorandum Case Study

Ramification of Analysis.

The OB analysis has actually taken a look at numerous theories to recognize how to handle the current scenario available. The complying with 3 alternatives have actually been suggested to help Lewis deal with the organizational difficulties in the advertising and marketing division. Each of these alternatives has been proposed for reducing the transition required to bring the advertising and marketing department according to the requirements of the market as well as for making the cultural modification that would comply with when the present leader leaves.

Combination of marketing and advertising features. Dividing Adverting and also Manufacturing features. Assimilation of Advertising with Operations.

Evaluation of Alternatives.

Judith Shapiro who has earlier been interviewed by Lewis throughout the earlier merger days has competence in business-to-business marketing along with company and retail marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to handle both marketing and also advertising functions.

The advantage of this technique is that it will certainly incorporate the two functions while reducing the requirement for working with an extra source for advertising and marketing. Lewis would certainly be heading the advertising division as well as in any type of case her substitute would certainly be required for the current role that she is doing. The disadvantage of this alternative is that exterior hiring might produce bitterness from inner personnel who might be considering the setting of EVP after Lewis takes control of Krasnow's position.

Separating Adverting as well as Manufacturing: Given the competitive stress and also high quality work needed from the advertising agency, it is advised that Lewis should permit the production system to be a different function from the marketing device. Because a lot of advertising agencies had these two features as separate devices, it makes more feeling to follow the standard.

Integration of Marketing with Operations: Given that Lewis is currently taking treatment of the advertising and marketing as well as operations divisions concurrently; it makes feeling to integrate the two functions given that she has been effectively taking care of both ends. The truth that Lewis has to adapt her management design for the marketing department suggests that these 2 divisions would certainly be culturally varied.


An assessment of the 3 choices shows that assimilation of marketing and also procedures would not be a possible move due to the vast distinctions in between both divisions although that currently Lewis is taking care of both. While separation of the manufacturing function may have been a favorable step for the marketing department, the reality that it would indicate placing a 3rd feature under Lewis's wing indicates this must be avoided. The integration of the advertising department is the very best choice in regards to getting the optimum arise from the department. An activity prepare for this alternative is gone over listed below.

Action Plan.
Lewis will take over the role of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Manufacturing function will stay component of marketing under advertising function.

Lewis will separate herself from operations.

A democratic management design with worker empowerment will be used in advertising and marketing division.

Open door policy and focus on cross department communication will be targeted at removing disharmony.

Contingency strategy.

If the integration does not work out as intended, a backup plan would comply with which would separate the production feature from the marketing function to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising division without an SVP. In that case the manufacturing feature will absolutely be separated by placing it under an SVP production.