Menu

Blue River Capital Case Study Solution

CASE ANALYSIS

Home >> Harvard >> Blue River Capital >>

Blue River Capital Case Study Analysis

Background and Facts

Blue River Capital an office materials retailer for little and average sized organisations has actually recently been involved in preparing for a merger with its competitor House Deport, which has influenced efficiency degrees in departmentswith the senior supervisor associated with legal issues put forth by the government Trade Commission. With the Marketing Head advancing the news of his departure from the company in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the near future. With challenges in the kind of a potential social change and reduced staff member spirits, the organization needs a total reengineering initiative at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The potential cultural modification at the marketing department of Blue River Capital is enhancing unpredictability in the workplace causing various difficulties for the Jeannie Lewis who would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in affecting critical decisions since Stapes Inc. needed to abandon its strategies of combining with Workplace Deport after the Federal Trade Compensation's intervention in the process. Offered the fact that the shop has a global presence with branches in UK, U.S.A., Canada and Germany, political consider each of these countries might be able to impact efficiency or critical objectives. Federal Profession Compensation's antitrust fit versus the merger used up beneficial time of the organization's elderly monitoring recommending that 'political' factors can have serious effects for a worldwide service.

Economic Factors: Economic factors such as the development of small companies in the worldwide situation suggest that Blue River Capital is prospering in an environment where there is potential growth of businesses. Truth that shop clients are mostly looking for workplace supplies for home offices recommends that the market has a climbing fad of business owners as well as house based companies.

Social factors: Social trends in the economy reveal that clients are searching for convenience in addition to attractive costs. Market research shows how the consumer for Blue River Capital lacks awareness regarding discovering services which can provide a mix of convenience and also affordable.

Technological factors: Modern technology plays an important role in Blue River Capital's service strategy specifically as the company is piloting Modern technology centers which would use technology sales and assistance in the type of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and Effects.

Several underlying Organizational Habits concerns can be seen in Blue River Capital's case as highlighted in this area.

Apprehensions concerning social adjustment: There is worry about a social modification that would occur when Todd Krasnow leaves from his position as the Exec Vice President of Advertising And Marketing with a lot of the staff members currently revealing discontent over this potential action. This anticipated modification has produced tension in the workplace which has been combined with the previous stress of preparing the firm for a potential merging with House Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is shortage of personnel that can match the stressful environment of a hectic organization. Not only does this bring about trouble in locating the best people, it puts anxiety on brand-new hires as can not stand up to the rate and stress that the organization anticipates them to birth.

Twin Reporting Lines: Novices discover this organizational society troublesome as well as tough to cope with specifically as populated line partnerships are implied to be weak in general and also objective setting and also efficiency assessment is still done by the solid line manager. This means that beginners could shed clearness about their corresponding functions as well as purposes particularly as populated line reporting does not maintain them in straight interaction with the strong line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles although it had been hypothesized that the last would certainly take Krasnow's setting came as a strike to her spirits. Lewis might have been capable as well as suitable for the job yet the reality that Kransnow's departure would certainly make Coles a straight report to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Task Instability: Worry and also insecurity can be recognized as two major issues that Lewis would be taking care of particularly as the merger has currently be cancelled and also two senior execs of the advertising department would certainly be leaving. The entire obligation of the division would be falling on Lewis's shoulders who would not simply be in charge of brining concerning a cultural change yet would certainly likewise need to prove herself in her brand-new function.

Incompatible Monitoring Design of Leader: Lewis's management design and also its incompatibility with the advertising department's function can also be seen as an OB challenge specifically as she has actually been made use of to dealing with issues in the operations division where employees are taught to focus on procedures and also get them. The advertising department on the various other hand can be viewed as a team of individuals who are utilized to being supported by Krasnow who focused a lot more on result than processes.

Interdepartmental Disputes: Interdepartmental disputes in between 3 divisions, marketing, merchandizing and procedures respectively over the allocation of the marketing mix can be determined as one more OB concern. Although the advertising and marketing division does not share the very same vision as the various other two departments pertaining to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and also operations divisions do not agree over the advertising and marketing mix allotment among each other either.

Fragmentation in Marketing Division: Disintegration in between the advertising and marketing divisions can be recognized as an additional OB issue which might need further focus. The fact that the marketing and advertising sections in the marketing division are detached is protecting against both departments from gaining from each various other's experience and know-how. Integration of advertising with merchandising as well as procedures would certainly become more difficult if the advertising and marketing division itself is degenerated which can be another prospective OB worry.

Blue River Capital Analysis

Various theories have actually been made use of to describe the circumstances to get additional clearness concerning the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many managers believe that juniors are passive as well as careless, have little aspiration and withstand modification. The tough version of this theory stressed threat, limited controls, threats and also punishments. In time it creates reduced productivity, subtle sabotage and also rivalry (Bargain, 2003). The situation at Blue River Capital is not totally complying with Concept X, it can be seen that new hires are locating this setting rather difficult which might ultimately lead to a higher disposition of the administration towards Theory X. As per McGregor's promoted view, which he called Theory Y, the important task of the administration is to prepare business problems to make sure that individuals can achieve their very own objectives best by guiding their efforts in the direction of organizational incentives. If individuals discover no satisfaction in their work, the management would have little option yet to rely upon theory X as well as outside control (Bargain, 2003). Also while evaluating Lewis's management design, theory X may have been suitable in the procedures division somewhat however the Advertising and marketing division would need dependence on Concept Y to get the imagination and also creativity from the teams.

Tuckman's Team effort Concept: As much as Lewis's worry concerning bringing consistency in between the marketing and also advertising and marketing department is worried, this would originally lead to clash as discussed by Bruce Tuckman in his 'Synergy Theory'. By incorporating the advertising and also advertising department's work, there might be the same preliminary separate which could lead to the second phase of 'storming' where the groups challenge one another.

Bridges' Change Model: As per William Bridge's concept (appendix 4), individuals are rather uneasy with modification, which is evident by the circumstance at Blue River Capital The circumstance can be viewed as a normal training course of life if is examined according to Bridge's theory where he clarifies that individuals undergo 3 stages of transition when they experience adjustment. 'End, losing and also Letting go', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people exist with change, they go into stage one and so there might be feelings like despair, unpredictability, aggravation, anger, worry, rejection and disorientation.The situation at the marketing department of Blue River Capital is similar so Lewis can get comfortable with the concept that it is not amazing actions. In the second stage, there may be a need to link the gap between the brand-new and also old society so Lewis may need to encounter this experience once Krasnow leaves. There might be low morale and also reduced productivity at this stage which need to not be taken as a problem. It is during this phase that Lewis will need to offer guidance to the department to ensure that they can discover a sense of direction. It can be seen how Krasnow has actually currently made this shift easier by making Lewis obtain involved in the department a year prior to his real departure. According to Bridges' Design, phase three will cause visibility to knowing, High energy and dedication as people will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Need power structure: The OB issue pertaining to instability at the workplace has been activated firstly by the modification in administration and second of all by the truth that the merger will certainly no longer be launched. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has talks about the relevance of 'safety needs as being a lower degree requirement of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see how 'the requirement to really feel safe and secure as well as out of danger' is at the 2nd level of requirements. Prior to a staff member can be made to develop psychologically, he requires to have his 'Physical 'and 'Safety' needs met. This indicates that unless the employees are made to feel protected concerning their existing work standing in Blue River Capital they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Blue River Capital Case Study



Ramification of Analysis.

The OB analysis has checked out numerous concepts to comprehend how to manage the current circumstance handy. The following 3 alternatives have actually been suggested to aid Lewis deal with the organizational difficulties in the advertising division. Each of these alternatives has actually been suggested for easing the shift required to bring the advertising and marketing department in accordance with the needs of the market and for making the social modification that would adhere to once the current leader leaves.

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

Examination of Alternatives.

Combination of Advertising & Advertising And Marketing Functions: The internal advertising and marketing firm of Blue River Capital is currently stamina for the company in terms of saving up on expenses connected to advertising and marketing as well as promotion. Given that no new employment has been done after Bridget Cole's separation with the coverage line being directly assigned to Krasnow for the advertising feature, this is a favorable chance for incorporating the advertising and marketing features. Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merger days has proficiency in business-to-business advertising together with firm and retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both marketing and advertising functions.

The advantage of this technique is that it will certainly incorporate the two features while lowering the need for employing an extra resource for advertising and marketing. In addition to this, Lewis would be heading the marketing division and in any case her replacement would certainly be required for the existing duty that she is doing. The drawback of this alternative is that external hiring may bring about resentment from interior workers that might be looking at the placement of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and also Production: Offered the affordable pressures as well as high quality work called for from the advertising agency, it is advised that Lewis ought to permit the manufacturing unit to be a separate feature from the advertising unit. Because the majority of advertising agencies had these two functions as different devices, it makes more sense to comply with the standard. In addition to this, both features might have the ability to focus on their core triggers much more efficiently. The downside of this technique would certainly be that additional prices would certainly have to be birthed for setting up separate manufacturing features. A manufacturing head might have to be hired which could increase overheads for the organization.

Combination of Marketing with Workflows: Because Lewis is already taking treatment of the advertising and procedures departments concurrently; it makes sense to incorporate the two features given that she has been effectively taking treatment of both ends. The reality that Lewis has to adapt her monitoring design for the advertising division recommends that these 2 departments would certainly be culturally varied.

Referral.



An assessment of the three options indicates that integration of advertising and marketing as well as procedures would certainly not be a practical move as a result of the vast distinctions between the two divisions despite the fact that currently Lewis is taking care of both. While separation of the manufacturing feature may have been a positive relocation for the advertising division, the fact that it would suggest positioning a 3rd feature under Lewis's wing suggests this should be prevented too. The assimilation of the marketing division is the most effective choice in terms of obtaining the ideal arise from the division. An action prepare for this choice is reviewed below.

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

Marketing and advertising functions would certainly be combined.

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

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

Lewis will certainly separate herself from operations.

A democratic leadership style with staff member empowerment will be utilized in marketing division.

Open up door policy and also focus on cross department communication will be aimed at removing disharmony.

Backup strategy.

If the integration does not work out as prepared, a contingency strategy would follow which would divide the production feature from the marketing feature to lower the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will be heading the advertising department without an SVP. Because case the manufacturing function will absolutely be divided by putting it under an SVP production.