Apex Investment Partners B May 1995 Case Study Analysis


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Background and Facts

Apex Investment Partners B May 1995 an office products store for little as well as moderate sized businesses has actually lately been involved in planning for a merger with its competitor House Deport, which has influenced effectiveness levels in departmentswith the elderly supervisor involved in lawful issues presented by the federal Trade Payment. With the Advertising and marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the duty in the near future. With difficulties in the type of a prospective cultural change as well as low worker morale, the company is in need of a complete reengineering initiative at the advertising department.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural change at the advertising and marketing department of Apex Investment Partners B May 1995 is increasing unpredictability in the working environment causing different difficulties for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in influencing tactical decisions given that Stapes Inc. had to desert its plans of combining with Workplace Deport after the Federal Trade Compensation's intervention in the process. Offered the truth that the shop has an international presence with branches in UK, USA, Canada as well as Germany, political consider each of these countries may have the ability to affect efficiency or tactical objectives. Federal Trade Payment's antitrust suit versus the merging used up useful time of the company's senior management suggesting that 'political' factors can have major implications for a worldwide business.

Economic Factors: Financial factors such as the development of local business in the worldwide scenario suggest that Apex Investment Partners B May 1995 is thriving in a setting where there is prospective growth of organisations. In addition to this, reality that store clients are primarily seeking office materials for home offices suggests that the market has a climbing pattern of business owners and home based organisations.

Social factors: Social patterns in the economic situation show that customers are searching for comfort along with attractive costs. Marketing research demonstrates how the customer for Apex Investment Partners B May 1995 lacks awareness concerning locating services which can provide a combination of benefit and also inexpensive.

Technical factors: Innovation plays an important role in Apex Investment Partners B May 1995's service method specifically as the company is piloting Innovation centers which would certainly use technology sales and also assistance in the kind of memory upgrades, outer installments. (Recap of PARASITE in appendix 2).

OB Issues as well as Symptoms.

Numerous underlying Business Actions issues can be seen in Apex Investment Partners B May 1995's case as highlighted in this section.

Concerns concerning social change: There is apprehension regarding a cultural change that would happen when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with most of the team member already showing discontent over this prospective action. This predicted modification has actually developed anxiety in the work environment which has actually been combined with the previous anxiety of preparing the company for a prospective merging with Residence Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is lack of employees that can match the demanding atmosphere of a busy company. Not only does this lead to difficulty in locating the right people, it puts anxiety on brand-new hires as can not hold up against the rate and also pressure that the organization expects them to birth.

Dual Coverage Lines: Newbies locate this organizational culture cumbersome and challenging to handle specifically as dotted line partnerships are meant to be weak as a whole and unbiased setup and performance analysis is still done by the solid line supervisor. This means that beginners might lose clarity about their corresponding functions and objectives especially as populated line coverage does not maintain them in direct interaction with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles even though it had actually been hypothesized that the latter would certainly take Krasnow's position came as a strike to her morale. Lewis might have been capable as well as ideal for the work yet the fact that Kransnow's departure would make Coles a straight record to Lewis might have been the factor for Coles' resignation from solutions.

Worry & Task Instability: Anxiety as well as instability can be identified as two significant problems that Lewis would be handling particularly as the merger has actually now be cancelled and also 2 elderly executives of the advertising and marketing division would certainly be leaving. The whole responsibility of the division would certainly be dropping on Lewis's shoulders that would not simply supervise of brining about a cultural adjustment however would certainly also need to prove herself in her brand-new role.

Incompatible Management Design of Leader: Lewis's management design and also its conflict with the advertising department's duty can also be viewed as an OB obstacle particularly as she has actually been used to handling concerns in the operations division where personnel are shown to focus on processes as well as get them right. The advertising division on the various other hand can be seen as a group of people that are utilized to being supported by Krasnow that focused more on output than procedures.

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

Disintegration in Advertising Division: Fragmentation between the marketing and advertising departments can be determined as one more OB concern which can need additional focus. The truth that the advertising and marketing areas in the advertising division are separated is avoiding both departments from getting from each various other's experience as well as know-how. Assimilation of marketing with retailing and also operations would come to be more difficult if the advertising division itself is disintegrated which can be an additional potential OB worry.

Apex Investment Partners B May 1995 Analysis

Different concepts have been made use of to explain the circumstances to get further quality concerning the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that juniors are easy and also lazy, have little aspiration as well as stand up to modification. The tough variation of this concept stressed coercion, limited controls, hazards and also punishments. Gradually it creates low productivity, subtle sabotage and also competition (Deal, 2003). Although the situation at Apex Investment Partners B May 1995 is not totally adhering to Theory X, it can be seen that new hires are locating this environment instead demanding which may eventually result in a greater inclination of the monitoring in the direction of Concept X. According to McGregor's promoted sight, which he called Theory Y, the important task of the management is to arrange organizational problems to make sure that people can achieve their very own goals best by guiding their initiatives towards organizational benefits. If people locate no contentment in their work, the administration would have little selection however to depend on theory X as well as outside control (Deal, 2003). Also while evaluating Lewis's management design, concept X might have appropriated in the operations division somewhat yet the Marketing department would need dependence on Concept Y to get the creative thinking as well as originality from the teams.

Tuckman's Synergy Concept: As far as Lewis's problem regarding bringing consistency in between the advertising and marketing and advertising and marketing division is worried, this would at first lead to clash as talked about by Bruce Tuckman in his 'Synergy Theory'. By incorporating the advertising and advertising and marketing department's job, there might be the exact same preliminary disconnect which can lead to the 2nd stage of 'storming' where the teams challenge one another.

When people are presented with modification, they go into stage one as well as so there may be feelings like despair, uncertainty, irritation, temper, worry, rejection and disorientation.The scenario at the marketing division of Apex Investment Partners B May 1995 is comparable so Lewis can obtain comfy with the suggestion that it is not extraordinary behavior. It is throughout this stage that Lewis will certainly have to offer guidance to the department so that they can locate a sense of instructions. It can be seen exactly how Krasnow has currently made this shift easier by making Lewis get included in the department a year prior to his real departure.
Vrio Analysis
Maslow's Demand hierarchy: The OB concern pertaining to insecurity at the office has been caused first of all by the modification in management and second of all by the truth that the merger will certainly no longer be initiated. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has talks about the relevance of 'safety and security requires as being a reduced level requirement of a human for causing motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the demand to really feel protected and unharmed' goes to the second degree of needs. Prior to a worker can be made to establish psychologically, he requires to have his 'Physiological 'and also 'Safety and security' requires met. This suggests that unless the workers are made to really feel secure about their current work condition in Apex Investment Partners B May 1995 they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Apex Investment Partners B May 1995 Case Study

Ramification of Analysis.

The OB analysis has actually checked out various concepts to comprehend just how to manage the existing scenario available. The adhering to 3 alternatives have been recommended to assist Lewis handle the business obstacles in the advertising department. Each of these choices has been proposed for easing the transition needed to bring the advertising and marketing department in line with the needs of the marketplace and also for making the social change that would comply with once the existing leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and Production features. Integration of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Combination of Marketing & Marketing Functions: The in-house advertising and marketing agency of Apex Investment Partners B May 1995 is already strength for the company in regards to saving up on overheads connected to advertising as well as promo. Given that no brand-new employment has been done after Bridget Cole's departure with the reporting line being directly assigned to Krasnow for the advertising and marketing function, this is a beneficial chance for incorporating the advertising and marketing functions. Judith Shapiro that has actually earlier been spoken with by Lewis during the earlier merger days has expertise in business-to-business marketing in addition to firm as well as retail marketing experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to manage both advertising and marketing functions.

The advantage of this method is that it will certainly incorporate both functions while decreasing the need for employing an extra source for advertising. Lewis would certainly be heading the advertising and marketing division and also in any case her replacement would be required for the current duty that she is performing. The negative aspect of this option is that external hiring might cause animosity from interior employees who may be considering the position of EVP after Lewis takes control of Krasnow's setting.

Dividing Adverting and also Production: Offered the competitive stress and also premium quality job called for from the ad agency, it is advised that Lewis ought to allow the production device to be a separate function from the advertising and marketing device. Because the majority of ad agency had these two features as different devices, it makes even more feeling to comply with the norm. Along with this, both functions may have the ability to concentrate on their core activates more successfully. The downside of this method would certainly be that added costs would certainly have to be borne for setting up different manufacturing functions. A production head might have to be worked with which might boost overheads for the company.

Combination of Marketing with Procedures: Given that Lewis is currently taking treatment of the marketing as well as operations divisions all at once; it makes sense to incorporate the 2 features because she has actually been successfully taking treatment of both ends. The fact that Lewis has to adapt her management design for the advertising and marketing department recommends that these 2 departments would be culturally diverse.


An evaluation of the 3 options indicates that integration of advertising and marketing and also operations would not be a viable relocation due to the substantial distinctions in between both departments although that presently Lewis is handling both. While separation of the production function might have been a beneficial relocation for the advertising division, the truth that it would certainly indicate positioning a 3rd function under Lewis's wing indicates this must be stayed clear of too. The assimilation of the marketing department is the very best choice in terms of obtaining the optimal results from the division. An activity prepare for this alternative is gone over listed below.

Action Plan.
Lewis will certainly take control of the role of EVP Advertising after Krasnow leaves.

Advertising and Marketing features would be merged.

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

Manufacturing feature will certainly stay component of advertising under advertising and marketing function.

Lewis will certainly divide herself from operations.

A democratic leadership style with staff member empowerment will be made use of in advertising and marketing division.

Open door plan and also emphasis on cross department interaction will certainly be targeted at eliminating discord.

Contingency plan.

If the combination does not work out as planned, a backup plan would certainly follow which would separate the production function from the advertising and marketing function to lower the lots on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising department without an SVP. In that case the manufacturing function will definitely be divided by putting it under an SVP manufacturing.