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Apex Investment Partners B May 1995 Case Study Analysis

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Apex Investment Partners B May 1995 Case Study Help

Background and Facts

Apex Investment Partners B May 1995 an office products merchant for tiny and also average sized companies has actually recently been associated with preparing for a merging with its competitor Home Deport, which has actually influenced efficiency levels in departmentswith the senior supervisor involved in lawful issues presented by the federal Profession Payment. With the Advertising Head advancing the information of his separation from the business in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the duty in the future. With obstacles in the kind of a possible cultural modification and also reduced employee spirits, the company is in need of a total reengineering effort at the advertising and marketing division.

Issue Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the marketing division of Apex Investment Partners B May 1995 is enhancing unpredictability in the working environment leading to various obstacles for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in influencing strategic choices given that Stapes Inc. had to desert its plans of merging with Office Deport after the Federal Trade Compensation's intervention at the same time. Provided the reality that the shop has a worldwide visibility with branches in UK, U.S.A., Canada and Germany, political consider each of these nations might be able to affect efficiency or strategic goals. Federal Trade Compensation's antitrust fit versus the merger took up beneficial time of the company's elderly management recommending that 'political' factors can have significant effects for a global organisation.

Economic Factors: Financial factors such as the introduction of small businesses in the worldwide scenario suggest that Apex Investment Partners B May 1995 is flourishing in a setting where there is prospective development of organisations. Reality that shop customers are mostly looking for office materials for home offices suggests that the market has a rising pattern of business owners as well as residence based organisations.

Social factors: Social patterns in the economy show that consumers are looking for convenience along with attractive costs. Market research shows how the consumer for Apex Investment Partners B May 1995 lacks awareness about locating remedies which can supply a mix of convenience as well as low costs.

Technological factors: Modern technology plays a vital function in Apex Investment Partners B May 1995's business strategy particularly as the organization is piloting Innovation facilities which would offer modern technology sales as well as support in the type of memory upgrades, outer installments. (Summary of INSECT in appendix 2).

OB Issues and also Effects.

A number of underlying Organizational Actions problems can be seen in Apex Investment Partners B May 1995's case as highlighted in this area.

Apprehensions concerning social change: There is concern about a cultural modification that would take place as soon as Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with most of the personnel currently revealing unhappiness over this prospective step. This anticipated change has developed tension in the work environment which has actually been combined with the previous tension of preparing the company for a prospective merging with House Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is shortage of workers that can match the demanding atmosphere of a hectic organization. Not just does this result in trouble in finding the right individuals, it places anxiety on brand-new hires as can not hold up against the pace as well as stress that the organization anticipates them to bear.

Double Reporting Lines: Newbies find this business culture cumbersome as well as challenging to deal with particularly as dotted line connections are meant to be weaker as a whole and also unbiased setting as well as efficiency examination is still done by the strong line supervisor. This means that beginners could lose clarity concerning their particular functions and purposes especially as dotted line coverage does not keep them in direct communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had actually been guessed that the latter would take Krasnow's position came as an impact to her spirits. Lewis might have been capable and also appropriate for the work yet the truth that Kransnow's departure would make Coles a straight record to Lewis might have been the reason for Coles' resignation from services.

Worry & Task Instability: Worry as well as instability can be recognized as 2 significant concerns that Lewis would certainly be taking care of particularly as the merging has currently be cancelled and also 2 elderly executives of the advertising and marketing department would be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders that would certainly not just supervise of brining concerning a cultural change yet would likewise have to prove herself in her brand-new role.

Incompatible Monitoring Style of Leader: Lewis's monitoring style and its conflict with the marketing department's role can additionally be seen as an OB difficulty specifically as she has actually been used to dealing with problems in the operations department where workers are instructed to focus on processes as well as obtain them. The advertising and marketing division on the other hand can be seen as a team of individuals who are used to being supported by Krasnow who focused more on output than processes.

Interdepartmental Disagreements: Interdepartmental arguments between 3 divisions, advertising and marketing, merchandizing as well as procedures respectively over the allocation of the advertising and marketing mix can be recognized as one more OB worry. The advertising department does not share the same vision as the other two divisions concerning the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and also operations divisions do not agree over the marketing mix allowance amongst one an additional either.

Disintegration in Advertising Department: Fragmentation in between the marketing and advertising departments can be identified as one more OB problem which could need additional focus. The truth that the marketing and advertising sections in the advertising department are disconnected is protecting against both divisions from getting from each other's experience and also know-how. Integration of advertising with retailing and also procedures would end up being harder if the advertising and marketing department itself is degenerated which can be another possible OB problem.

Apex Investment Partners B May 1995 Analysis

Numerous theories have been made use of to describe the circumstances to get more quality regarding the circumstance handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors think that staffs are easy and also careless, have little passion and resist modification. The circumstance at Apex Investment Partners B May 1995 is not entirely following Theory X, it can be seen that brand-new hires are discovering this atmosphere rather demanding which may at some point lead to a higher inclination of the management in the direction of Theory X. Even while evaluating Lewis's administration style, concept X may have been appropriate in the operations department to some extent but the Marketing division would certainly need reliance on Theory Y in order to get the creative thinking as well as originality from the groups.

Tuckman's Team effort Theory: As far as Lewis's worry about bringing harmony between the advertising and marketing department is worried, this would originally lead to conflict as reviewed by Bruce Tuckman in his 'Synergy Theory'. By combining the advertising and marketing and also advertising and marketing division's job, there may be the very same initial detach which could lead to the 2nd phase of 'storming' where the groups challenge one another.

Bridges' Change Model: Based On William Bridge's concept (appendix 4), people are rather uncomfortable with adjustment, which is obvious by the scenario at Apex Investment Partners B May 1995 The circumstance can be seen as a regular training course of life if is studied based on Bridge's theory where he clarifies that people experience 3 stages of shift when they experience modification. 'End, losing and also Releasing', The Neutral Area and also 'The New Starting' (Bridges, 2004). When people are presented with modification, they enter stage one therefore there may be feelings like sadness, uncertainty, disappointment, temper, worry, denial and also disorientation.The situation at the marketing department of Apex Investment Partners B May 1995 is comparable so Lewis can obtain comfortable with the suggestion that it is not extraordinary behavior. In the 2nd stage, there may be a demand to connect the space between the brand-new as well as old society so Lewis might need to encounter this ordeal once Krasnow leaves. There might be low spirits and also low performance at this phase which should not be taken as a problem. It is during this phase that Lewis will certainly need to offer assistance to the department to ensure that they can discover a sense of direction. It can be seen exactly how Krasnow has actually currently made this change less complicated by making Lewis obtain involved in the division a year before his real separation. According to Bridges' Design, phase three will produce visibility to discovering, High energy and dedication as people will welcome the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has goes over the value of 'safety and security requires as being a lower level demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel protected and out of threat' is at the second degree of requirements. Prior to a staff member can be made to develop psychologically, he needs to have his 'Physical 'as well as 'Safety and security' requires fulfilled.

SWOT Analysis for Apex Investment Partners B May 1995 Case Study



Effects of Analysis.

The OB analysis has actually taken a look at numerous concepts to recognize how to handle the present circumstance handy. The adhering to three options have actually been proposed to help Lewis take care of the organizational obstacles in the advertising and marketing division. Each of these options has been recommended for easing the change required to bring the advertising division in accordance with the demands of the marketplace and for making the cultural adjustment that would certainly adhere to when the existing leader leaves.

Combination of advertising and marketing features. Separating Adverting and Production functions. Integration of Advertising And Marketing with Workflow.

Assessment of Alternatives.

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

The advantage of this approach is that it will certainly incorporate the two functions while decreasing the need for hiring an extra resource for advertising. Along with this, Lewis would be heading the advertising and marketing department as well as in any case her substitute would be needed for the current role that she is carrying out. The downside of this choice is that external hiring may bring about animosity from inner employees who may be looking at the placement of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and Production: Offered the affordable pressures as well as high top quality work needed from the advertising firm, it is recommended that Lewis should enable the production system to be a different feature from the advertising and marketing device. Considering that a lot of advertising agencies had these two features as different systems, it makes more sense to follow the standard.

Combination of Marketing with Procedures: Considering that Lewis is currently dealing with the advertising and operations divisions simultaneously; it makes sense to incorporate the two features given that she has been successfully taking care of both ends. The reality that the two divisions already have major distinctions over appropriation of sources recommends that this assimilation may have the ability to bring about harmony especially as Lewis would certainly be heading both ends.However there are different negative aspects of this relocation specifically as it would place way too much problem over Lewis's shoulders. The reality that Lewis has to adapt her management style for the advertising division recommends that these 2 divisions would certainly be culturally varied. Lewis may not be able to use one type of leadership design to both departments which might result in ineffectiveness in either one of the 2 functions.

Referral.



An analysis of the three options suggests that integration of advertising and operations would certainly not be a possible action due to the large differences in between the 2 departments in spite of the reality that presently Lewis is dealing with both. While splitting up of the manufacturing feature may have been a positive relocation for the marketing division, the reality that it would indicate positioning a 3rd function under Lewis's wing means this ought to be prevented.

Activity Strategy.
Recommendation
Lewis will certainly take over the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

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

Lewis will certainly divide herself from procedures.

An autonomous management style with worker empowerment will certainly be used in advertising department.

Open up door plan as well as emphasis on cross departmental communication will certainly be aimed at getting rid of discord.

Contingency plan.

If the combination does not exercise as intended, a contingency plan would certainly follow which would separate the production feature from the marketing function to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the marketing department without an SVP. Because case the manufacturing function will definitely be separated by positioning it under an SVP manufacturing.