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Artisan Entertainment Inc Case Study Analysis

Background and Facts

Artisan Entertainment Inc an office supplies merchant for small as well as medium sized businesses has actually just recently been associated with planning for a merging with its rival Residence Deport, which has actually impacted efficiency levels in departmentswith the senior manager involved in legal difficulties presented by the government Trade Commission. With the Marketing Head putting forward the information of his departure from the business in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the near future. With obstacles in the type of a potential social modification and also low employee morale, the organization is in need of a complete reengineering effort at the marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural change at the marketing department of Artisan Entertainment Inc is raising uncertainty in the workplace causing numerous obstacles for the Jeannie Lewis that would certainly be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting calculated decisions since Stapes Inc. needed to abandon its plans of combining with Workplace Deport after the Federal Trade Payment's treatment in the process. Given the fact that the shop has a worldwide visibility with branches in UK, U.S.A., Canada and Germany, political factors in each of these nations may be able to affect efficiency or tactical goals. Federal Profession Compensation's antitrust suit versus the merger used up useful time of the organization's senior management recommending that 'political' factors can have serious effects for a global service.

Economic Factors: Economic factors such as the emergence of local business in the global scenario suggest that Artisan Entertainment Inc is prospering in an atmosphere where there is potential growth of organisations. In addition to this, truth that store consumers are mainly looking for office supplies for home offices recommends that the market has a rising pattern of entrepreneurs and also home services.

Social factors: Social fads in the economy show that clients are trying to find convenience along with eye-catching rates. Market research demonstrates how the customer for Artisan Entertainment Inc lacks understanding regarding locating options which can supply a combination of benefit as well as affordable.

Technological factors: Innovation plays a crucial duty in Artisan Entertainment Inc's company strategy specifically as the company is piloting Technology facilities which would supply technology sales and also assistance in the type of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and Manifestations.

A number of underlying Organizational Habits concerns can be seen in Artisan Entertainment Inc's case as highlighted in this section.

Worries concerning social adjustment: There is worry concerning a cultural modification that would happen when Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising with most of the staff members currently showing unhappiness over this prospective action. This anticipated adjustment has developed anxiety in the workplace which has actually been coupled with the past anxiety of preparing the company for a potential merging with Home Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is shortage of workers that can match the difficult atmosphere of a fast-paced company. Not only does this cause problem in finding the ideal people, it places stress and anxiety on brand-new hires as can not stand up to the rate and stress that the company expects them to birth.

Twin Coverage Lines: Newbies locate this organizational society cumbersome and also hard to cope with particularly as populated line connections are implied to be weak generally and objective setup and also performance assessment is still done by the strong line manager. This suggests that beginners could shed quality concerning their respective functions and purposes especially as populated line reporting does not keep them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had actually been hypothesized that the latter would certainly take Krasnow's setting came as a strike to her spirits. Lewis might have been capable and also appropriate for the job however the reality that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the reason for Coles' resignation from services.

Fear & Work Instability: Fear and also insecurity can be identified as 2 major issues that Lewis would certainly be handling specifically as the merging has currently be terminated as well as two senior execs of the advertising and marketing department would be leaving. The whole obligation of the department would be falling on Lewis's shoulders that would not just be in charge of brining regarding a social change but would additionally have to confirm herself in her brand-new role.

Incompatible Administration Design of Leader: Lewis's management style as well as its incompatibility with the advertising department's function can also be seen as an OB difficulty specifically as she has been made use of to handling concerns in the operations department where personnel are taught to concentrate on processes as well as obtain them. The marketing department on the other hand can be viewed as a group of individuals who are used to being nurtured by Krasnow that concentrated much more on result than processes.

Interdepartmental Disputes: Interdepartmental differences in between three departments, marketing, merchandizing and procedures specifically over the appropriation of the marketing mix can be determined as one more OB problem. Although the marketing division does not share the same vision as the various other two divisions concerning the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and also operations departments do not agree over the advertising mix allotment amongst each other either.

Fragmentation in Marketing Department: Fragmentation in between the marketing and advertising departments can be identified as an additional OB concern which can require additional focus. The reality that the advertising and marketing areas in the advertising and marketing division are detached is stopping both departments from obtaining from each various other's experience as well as competence. Assimilation of advertising with retailing and also operations would become more difficult if the marketing division itself is broken down which can be one more possible OB concern.

Artisan Entertainment Inc Analysis

Numerous theories have actually been used to discuss the scenarios to obtain further clearness regarding the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, a lot of supervisors think that subordinates are easy and also lazy, have little aspiration and also stand up to change. The difficult variation of this theory stressed coercion, limited controls, hazards and also penalties. Gradually it generates low performance, refined sabotage and also competition (Bargain, 2003). Although the scenario at Artisan Entertainment Inc is not totally following Theory X, it can be seen that brand-new hires are finding this environment rather stressful which might eventually cause a better disposition of the administration in the direction of Concept X. Based on McGregor's advocated sight, which he called Concept Y, the important job of the management is to prepare organizational problems to ensure that people can achieve their own objectives best by guiding their efforts in the direction of organizational incentives. If individuals locate no complete satisfaction in their job, the management would certainly have little option however to depend on theory X and also exterior control (Offer, 2003). Also while assessing Lewis's administration design, concept X might have appropriated in the operations division somewhat but the Marketing department would require reliance on Theory Y to get the creativity and creativity from the teams.

Tuckman's Team effort Concept: As far as Lewis's concern concerning bringing harmony between the marketing and advertising and marketing department is concerned, this would initially lead to contrast as reviewed by Bruce Tuckman in his 'Teamwork Theory'. By incorporating the advertising and also advertising and marketing department's job, there might be the very same first detach which might lead to the 2nd stage of 'storming' where the teams challenge one another.

Bridges' Transition Model: Based On William Bridge's theory (appendix 4), individuals are rather uneasy with change, which is evident by the scenario at Artisan Entertainment Inc The circumstance can be viewed as a normal course of life if is researched according to Bridge's concept where he clarifies that people go through three phases of change when they experience modification. 'Ending, losing and also Letting go', The Neutral Zone and 'The New Starting' (Bridges, 2004). When individuals exist with modification, they go into stage one and so there might be feelings like sadness, unpredictability, irritation, rage, concern, rejection as well as disorientation.The situation at the advertising department of Artisan Entertainment Inc is similar so Lewis can obtain comfy with the concept that it is not phenomenal actions. In the second stage, there may be a need to connect the gap between the brand-new and old culture so Lewis may need to encounter this ordeal once Krasnow leaves. There may be low morale as well as low performance at this phase which should not be taken as a setback. It is throughout this stage that Lewis will certainly need to offer assistance to the division so that they can locate a sense of direction. It can be seen exactly how Krasnow has currently made this transition less complicated by making Lewis obtain involved in the division a year prior to his real separation. According to Bridges' Version, stage three will certainly bring about visibility to learning, High energy and also commitment as individuals will welcome the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has goes over the relevance of 'safety needs as being a reduced level need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel protected and out of risk' is at the second level of demands. Prior to a staff member can be made to establish emotionally, he needs to have his 'Physical 'and 'Safety' needs met.

SWOT Analysis for Artisan Entertainment Inc Case Study

Effects of Analysis.

The OB analysis has looked at different theories to understand exactly how to cope with the current circumstance handy. The following three options have been proposed to assist Lewis deal with the business difficulties in the marketing division. Each of these choices has actually been suggested for easing the shift needed to bring the advertising division in line with the needs of the marketplace as well as for making the cultural adjustment that would adhere to once the existing leader leaves.

Combination of marketing and advertising features. Separating Adverting and also Production functions. Assimilation of Marketing with Operations.

Examination of Alternatives.

Combination of Advertising & Advertising And Marketing Functions: The in-house marketing company of Artisan Entertainment Inc is already toughness for the company in terms of saving up on expenses related to advertising and marketing and also promo. Since no new employment has been done after Bridget Cole's separation with the coverage line being straight designated to Krasnow for the advertising feature, this is a positive opportunity for integrating the marketing and advertising features. Judith Shapiro that has earlier been spoken with by Lewis throughout the earlier merger days has knowledge in business-to-business advertising and marketing along with firm as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both marketing and advertising functions.

The advantage of this technique is that it will certainly integrate both functions while decreasing the need for hiring an extra resource for advertising and marketing. Lewis would certainly be heading the advertising and marketing division and also in any type of case her replacement would be needed for the existing role that she is executing. The drawback of this alternative is that exterior hiring may cause bitterness from interior personnel who might be eying the placement of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting as well as Production: Provided the competitive pressures and top quality work called for from the advertising agency, it is suggested that Lewis must permit the production device to be a separate feature from the marketing device. Given that many advertising agencies had these two functions as separate systems, it makes even more feeling to comply with the standard. In addition to this, both functions might have the ability to focus on their core activates more effectively. Nevertheless, the disadvantage of this strategy would certainly be that added costs would certainly have to be birthed for establishing different production features. A manufacturing head may have to be employed which could enhance overheads for the organization.

Assimilation of Advertising with Workflows: Given that Lewis is already taking care of the advertising and marketing and procedures divisions concurrently; it makes sense to incorporate the 2 features since she has actually been successfully taking treatment of both ends. The reality that Lewis has to adjust her management design for the marketing department recommends that these 2 divisions would be culturally diverse.


An examination of the 3 alternatives shows that integration of marketing as well as operations would certainly not be a viable relocation due to the vast distinctions between the two departments regardless of the truth that currently Lewis is dealing with both. While splitting up of the manufacturing function may have been a positive action for the advertising and marketing department, the truth that it would certainly indicate placing a 3rd function under Lewis's wing suggests this must be prevented.

Action Strategy.
Lewis will take control of the function of EVP Marketing after Krasnow leaves.

Marketing and advertising features would be combined.

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

Manufacturing feature will stay part of advertising and marketing under advertising function.

Lewis will certainly separate herself from procedures.

A democratic management design with worker empowerment will certainly be utilized in advertising department.

Open door policy and focus on cross department interaction will certainly be aimed at eliminating dissonance.

Contingency strategy.

If the combination does not work out as planned, a backup plan would certainly comply with which would certainly separate the production function from the advertising and marketing feature to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain worked with, Lewis will be heading the advertising division without an SVP. Because case the production feature will certainly be separated by placing it under an SVP manufacturing.