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Braintree Momentum Equity Fund Case Study Analysis

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Braintree Momentum Equity Fund Case Study Solution

Background and Facts

Braintree Momentum Equity Fund an office materials retailer for little and also medium sized services has recently been involved in preparing for a merger with its rival House Deport, which has actually affected performance levels in departmentswith the senior supervisor involved in lawful issues put forth by the federal Trade Commission. With the Advertising and marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the function in the near future. With challenges in the form of a prospective social modification and reduced employee spirits, the organization is in need of a full reengineering effort at the advertising and marketing division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective social adjustment at the advertising and marketing division of Braintree Momentum Equity Fund is enhancing uncertainty in the working environment leading to different difficulties for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major role in impacting critical choices given that Stapes Inc. needed to desert its plans of combining with Workplace Deport after the Federal Trade Commission's treatment in the process. Given the truth that the shop has a worldwide visibility with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations may have the ability to impact performance or strategic goals. Federal Profession Payment's antitrust fit against the merging took up important time of the organization's senior monitoring suggesting that 'political' factors can have major implications for a global company.

Economic Factors: Financial factors such as the appearance of small businesses in the worldwide scenario suggest that Braintree Momentum Equity Fund is prospering in an atmosphere where there is possible development of businesses. In addition to this, fact that store consumers are primarily searching for workplace products for office recommends that the marketplace has an increasing fad of entrepreneurs as well as home organisations.

Social factors: Social patterns in the economic climate show that customers are looking for comfort along with eye-catching prices. Market research demonstrates how the consumer for Braintree Momentum Equity Fund lacks understanding about finding options which can use a combination of ease and also low costs.

Technological factors: Innovation plays an important duty in Braintree Momentum Equity Fund's organisation approach specifically as the company is piloting Technology centers which would supply modern technology sales as well as support in the form of memory upgrades, peripheral setups. (Summary of INSECT in appendix 2).

OB Issues and Symptoms.

Several underlying Organizational Actions issues can be seen in Braintree Momentum Equity Fund's case as highlighted in this section.

Concerns concerning cultural adjustment: There is apprehension regarding a social adjustment that would certainly occur when Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with a lot of the employee already revealing discontent over this prospective relocation. This anticipated change has created stress in the workplace which has actually been paired with the previous stress of preparing the company for a potential merger with House Deport.
Pest Analysis
Stressful Work Setting for Newcomers: There is scarcity of employees that can match the demanding atmosphere of a busy organization. Not only does this lead to problem in finding the appropriate people, it places stress on brand-new hires as can not stand up to the rate and also pressure that the organization anticipates them to bear.

Dual Reporting Lines: Beginners discover this business culture difficult and challenging to handle particularly as dotted line connections are suggested to be weak in general and unbiased setting as well as efficiency assessment is still done by the strong line manager. This indicates that beginners might lose quality regarding their respective functions and also objectives particularly as dotted line reporting does not keep them in direct communication with the solid line managers.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles even though it had been hypothesized that the latter would take Krasnow's placement came as an impact to her morale. Lewis might have been qualified and also ideal for the work however the fact that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the reason for Coles' resignation from services.

Fear & Work Instability: Anxiety and also instability can be determined as two significant issues that Lewis would certainly be dealing with specifically as the merger has actually currently be terminated and 2 elderly execs of the advertising and marketing department would certainly be leaving. The whole obligation of the division would certainly be dropping on Lewis's shoulders who would not just supervise of brining about a cultural modification but would certainly also need to confirm herself in her new function.

Incompatible Management Style of Leader: Lewis's administration design and also its conflict with the marketing department's role can likewise be seen as an OB difficulty particularly as she has actually been utilized to dealing with issues in the procedures department where employees are educated to concentrate on procedures and obtain them right. The marketing department on the various other hand can be seen as a group of people who are made use of to being supported by Krasnow who concentrated extra on result than processes.

Interdepartmental Differences: Interdepartmental arguments in between three departments, advertising, merchandizing as well as operations respectively over the allotment of the advertising mix can be determined as another OB worry. Although the marketing division does not share the exact same vision as the other two departments regarding the aloocation of the advertising mix twoards promotions and advertsing, the merchandizing and also operations divisions do not agree over the advertising and marketing mix allocation amongst one another either.

Disintegration in Marketing Division: Disintegration in between the advertising and marketing departments can be determined as an additional OB concern which might require more focus. The reality that the marketing and advertising sections in the marketing department are disconnected is protecting against both departments from obtaining from each other's experience and experience. Assimilation of advertising with retailing and operations would become more difficult if the advertising division itself is degenerated which can be one more prospective OB worry.

Braintree Momentum Equity Fund Analysis

Numerous concepts have been used to discuss the situations to get additional quality regarding the situation handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, a lot of supervisors think that staffs are easy and lazy, have little ambition and withstand change. The difficult variation of this theory stressed coercion, limited controls, dangers and also penalties. Over time it generates reduced performance, subtle sabotage and rivalry (Offer, 2003). Although the scenario at Braintree Momentum Equity Fund is not entirely following Concept X, it can be seen that new hires are locating this atmosphere rather difficult which might eventually lead to a better inclination of the administration in the direction of Concept X. Based on McGregor's advocated sight, which he called Theory Y, the essential task of the monitoring is to prepare organizational problems so that people can achieve their very own goals best by guiding their efforts towards organizational incentives. If individuals discover no contentment in their work, the monitoring would certainly have little selection however to rely upon concept X and also external control (Offer, 2003). Even while assessing Lewis's management style, theory X might have been suitable in the procedures department to some extent however the Marketing division would require dependence on Theory Y to get the creative thinking and also originality from the teams.

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

When individuals are offered with change, they go into stage one and also so there might be feelings like unhappiness, unpredictability, irritation, rage, worry, rejection and also disorientation.The situation at the advertising and marketing department of Braintree Momentum Equity Fund is similar so Lewis can get comfy with the concept that it is not phenomenal behavior. It is during this stage that Lewis will have to offer advice to the division so that they can find a sense of direction. It can be seen exactly how Krasnow has actually currently made this transition less complicated by making Lewis obtain involved in the department a year prior to his actual separation.
Vrio Analysis
Maslow's Demand pecking order: The OB issue related to insecurity at the office has been set off firstly by the modification in monitoring as well as second of all by the reality that the merging will no longer be launched. Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has goes over the value of 'protection needs as being a reduced level demand of a human for causing motivation. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to really feel secure as well as out of danger' is at the 2nd level of requirements. Before a staff member can be made to create psychologically, he requires to have his 'Physiological 'and also 'Security' needs satisfied. This indicates that unless the workers are made to really feel safe regarding their existing employment status in Braintree Momentum Equity Fund they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Braintree Momentum Equity Fund Case Study



Effects of Analysis.

The OB analysis has taken a look at numerous concepts to understand exactly how to manage the current situation at hand. The complying with 3 choices have actually been recommended to help Lewis deal with the business obstacles in the marketing division. Each of these alternatives has been suggested for alleviating the change needed to bring the advertising and marketing division according to the demands of the market and also for making the social change that would certainly adhere to once the present leader leaves.

Assimilation of advertising and marketing functions. Dividing Adverting and Manufacturing functions. Assimilation of Advertising And Marketing with Procedures.

Examination of Alternatives.

Integration of Advertising And Marketing & Marketing Functions: The internal advertising and marketing agency of Braintree Momentum Equity Fund is currently stamina for the organization in terms of saving up on expenses connected to advertising and also promotion. Given that no brand-new recruitment has actually been done after Bridget Cole's departure with the reporting line being directly designated to Krasnow for the advertising and marketing feature, this is a positive opportunity for integrating the marketing and advertising features. Judith Shapiro who has actually earlier been interviewed by Lewis during the earlier merger days has expertise in business-to-business marketing together with firm as well as retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both marketing and advertising features.

The benefit of this method is that it will incorporate both features while lowering the need for working with an extra source for marketing. Lewis would certainly be heading the advertising department and also in any case her substitute would certainly be needed for the present duty that she is carrying out. The disadvantage of this option is that external hiring may produce resentment from inner workers that might be eying the placement of EVP after Lewis takes over Krasnow's placement.

Separating Adverting as well as Production: Given the affordable stress as well as premium quality work called for from the ad agency, it is recommended that Lewis should enable the manufacturing device to be a different feature from the advertising unit. Given that a lot of advertising agencies had these two features as separate systems, it makes more sense to comply with the norm. Both features may be able to focus on their core turns on much more successfully. The disadvantage of this strategy would be that additional costs would certainly have to be borne for establishing up different manufacturing functions. Along with this, a manufacturing head might need to be worked with which can boost overheads for the company.

Integration of Marketing with Operations: Since Lewis is already taking care of the advertising and marketing and operations divisions at the same time; it makes feeling to integrate the 2 features since she has actually been effectively taking care of both ends. The truth that Lewis has to adapt her management design for the advertising division suggests that these two departments would be culturally diverse.

Suggestion.



An examination of the three choices indicates that assimilation of advertising and marketing and operations would not be a practical move due to the huge differences in between the 2 divisions regardless of the fact that presently Lewis is dealing with both. While splitting up of the manufacturing feature might have been a desirable relocation for the marketing division, the fact that it would certainly mean putting a third function under Lewis's wing implies this need to be avoided.

Activity Plan.
Recommendation
Lewis will take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

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

Lewis will certainly divide herself from procedures.

An autonomous leadership style with staff member empowerment will be used in advertising and marketing division.

Open up door plan and emphasis on cross departmental communication will be targeted at getting rid of disharmony.

Backup strategy.

If the integration does not exercise as intended, a backup plan would certainly comply with which would divide the manufacturing function from the marketing feature to reduce the tons 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. In that case the manufacturing feature will absolutely be divided by placing it under an SVP production.