Cambridge Technology Partners 1991 Start Up Case Study Analysis


Home >> Harvard >> Cambridge Technology Partners 1991 Start Up >>

Cambridge Technology Partners 1991 Start Up Case Study Solution

Background and Facts

Cambridge Technology Partners 1991 Start Up an office supplies merchant for small and also average sized organisations has actually just recently been involved in planning for a merger with its competitor House Deport, which has actually affected effectiveness levels in departmentswith the senior manager associated with legal complications put forth by the government Profession Payment. With the Advertising Head advancing the news of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has been asked to take the function in the future. With difficulties in the form of a possible cultural change and also low worker spirits, the organization needs a full reengineering initiative at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural adjustment at the advertising department of Cambridge Technology Partners 1991 Start Up is raising uncertainty in the working environment leading to numerous difficulties for the Jeannie Lewis who would certainly be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing critical choices because Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Profession Payment's intervention in the process. Offered the fact that the shop has a worldwide presence with branches in UK, USA, Canada and also Germany, political consider each of these nations might be able to influence efficiency or critical objectives. Federal Trade Payment's antitrust suit against the merger used up important time of the organization's elderly management recommending that 'political' factors can have major ramifications for a worldwide organisation.

Economic Factors: Economic factors such as the appearance of local business in the worldwide circumstance suggest that Cambridge Technology Partners 1991 Start Up is flourishing in an environment where there is prospective growth of businesses. Fact that shop consumers are mostly looking for workplace supplies for residence offices recommends that the market has an increasing trend of entrepreneurs and residence based organisations.

Social factors: Social fads in the economic climate reveal that clients are seeking benefit along with appealing prices. Market research shows how the client for Cambridge Technology Partners 1991 Start Up does not have recognition regarding finding services which can offer a mix of ease and also inexpensive.

Technological factors: Modern technology plays a vital role in Cambridge Technology Partners 1991 Start Up's organisation technique especially as the organization is piloting Technology facilities which would provide modern technology sales and support in the type of memory upgrades, outer installations. (Summary of PARASITE in appendix 2).

OB Issues as well as Effects.

Several underlying Organizational Habits problems can be seen in Cambridge Technology Partners 1991 Start Up's case as highlighted in this area.

Concerns about social adjustment: There is worry regarding a cultural adjustment that would certainly take place as soon as Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with most of the employee already showing discontent over this possible relocation. This expected modification has actually produced stress and anxiety in the workplace which has been coupled with the past stress of preparing the company for a possible merger with Residence Deport.
Pest Analysis
Stressful Job Setting for Newcomers: There is scarcity of personnel that can match the demanding environment of a hectic company. Not only does this result in problem in finding the right people, it puts tension on brand-new hires as can not withstand the speed as well as pressure that the organization expects them to bear.

Dual Reporting Lines: Newbies discover this organizational society difficult and tough to deal with specifically as dotted line connections are suggested to be weaker in general and unbiased setup and efficiency assessment is still done by the solid line manager. This indicates that newcomers can lose clearness regarding their respective functions as well as objectives especially as populated line coverage does not maintain them in straight interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles even though it had been speculated that the latter would take Krasnow's setting came as a strike to her spirits. Lewis might have been qualified as well as ideal for the job however the fact that Kransnow's departure would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Work Instability: Worry and instability can be recognized as 2 major problems that Lewis would certainly be dealing with particularly as the merging has currently be terminated and also two senior executives of the marketing department would certainly be leaving. The whole duty of the division would certainly be falling on Lewis's shoulders who would not just be in charge of brining concerning a cultural modification but would likewise have to verify herself in her new function.

Incompatible Administration Style of Leader: Lewis's management design and its conflict with the advertising and marketing division's function can also be seen as an OB difficulty specifically as she has actually been utilized to handling issues in the operations department where employees are instructed to focus on processes and also obtain them. The advertising department on the other hand can be viewed as a team of individuals that are utilized to being supported by Krasnow that concentrated extra on result than procedures.

Interdepartmental Disputes: Interdepartmental disagreements in between three departments, marketing, merchandizing and procedures specifically over the allotment of the advertising mix can be recognized as another OB concern. Although the advertising division does not share the same vision as the various other 2 departments concerning the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing as well as operations departments do not concur over the advertising mix allocation among one another either.

Fragmentation in Advertising Department: Disintegration between the marketing and advertising divisions can be recognized as one more OB issue which might need further interest. The fact that the marketing and advertising areas in the marketing department are disconnected is preventing both departments from getting from each other's experience and experience. Combination of advertising and marketing with merchandising as well as operations would certainly come to be harder if the advertising department itself is disintegrated which can be one more prospective OB problem.

Cambridge Technology Partners 1991 Start Up Analysis

Numerous theories have been made use of to explain the scenarios to obtain more clarity about the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers think that juniors are easy and also lazy, have little ambition as well as stand up to change. The situation at Cambridge Technology Partners 1991 Start Up is not completely complying with Concept X, it can be seen that brand-new hires are finding this setting instead demanding which may eventually lead to a greater disposition of the monitoring in the direction of Concept X. Even while assessing Lewis's monitoring design, concept X might have been appropriate in the procedures department to some extent however the Advertising department would certainly require dependence on Theory Y in order to get the creative thinking as well as creativity from the teams.

Tuckman's Synergy Concept: Regarding Lewis's problem about bringing harmony in between the marketing and advertising division is worried, this would initially result in contrast as discussed by Bruce Tuckman in his 'Team effort Concept'. (Tuckman, 1965). According to Tuckman's theory displayed in appendix 3, during the preliminary stage of group development, people may not bond, as they are active locating their place in the group. By incorporating the marketing and advertising division's job, there may coincide first disconnect which can result in the 2nd stage of 'storming' where the teams challenge one another. Nonetheless, it is just throughout the 3rd phase or 'norming' when they would certainly come together to share ideas prior to the team can cause synergy in the fourth stage 'carrying out'.

When people are provided with adjustment, they enter phase one as well as so there might be feelings like despair, uncertainty, stress, anger, fear, rejection and disorientation.The circumstance at the marketing department of Cambridge Technology Partners 1991 Start Up is similar so Lewis can obtain comfy with the idea that it is not extraordinary actions. It is during this stage that Lewis will certainly have to offer guidance to the division so that they can find a feeling of direction. It can be seen just how Krasnow has already made this shift less complicated by making Lewis obtain involved in the division a year prior to his real separation.
Vrio Analysis
Maslow's Demand pecking order: The OB concern pertaining to instability at the workplace has been activated firstly by the change in administration and also secondly by the fact that the merging will certainly no longer be started. Abraham Maslow in his Concept of 'Demands Pecking order' (appendix 5) has discusses the relevance of 'protection requires as being a reduced degree demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel secure and also safe' is at the second degree of needs. Before a staff member can be made to develop emotionally, he requires to have his 'Physical 'and also 'Safety' needs fulfilled. This shows that unless the employees are made to feel safe about their current work standing in Cambridge Technology Partners 1991 Start Up they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Cambridge Technology Partners 1991 Start Up Case Study

Effects of Analysis.

The OB analysis has actually checked out various theories to understand exactly how to manage the existing circumstance handy. The complying with three alternatives have been suggested to aid Lewis deal with the organizational obstacles in the advertising department. Each of these choices has actually been suggested for relieving the change needed to bring the advertising division in accordance with the needs of the market as well as for making the social modification that would follow as soon as the existing leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting and Production functions. Assimilation of Marketing with Operations.

Evaluation of Alternatives.

Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merging days has proficiency in business-to-business advertising and marketing along with firm as well as retail advertising experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to manage both marketing and advertising features.

The benefit of this strategy is that it will integrate both features while minimizing the requirement for working with an additional source for advertising and marketing. In addition to this, Lewis would be heading the marketing department as well as regardless her substitute would be needed for the current duty that she is executing. The negative aspect of this choice is that outside hiring may produce animosity from inner workers that may be looking at the position of EVP after Lewis takes over Krasnow's position.

Dividing Adverting as well as Manufacturing: Provided the competitive pressures and also excellent quality work called for from the advertising agency, it is suggested that Lewis needs to allow the manufacturing unit to be a different feature from the marketing unit. Given that the majority of advertising agencies had these two features as separate devices, it makes even more feeling to comply with the norm. Both features may be able to concentrate on their core activates more effectively. The negative aspect of this approach would be that extra expenses would have to be birthed for setting up different manufacturing functions. A manufacturing head might have to be hired which could boost expenses for the company.

Integration of Advertising And Marketing with Operations: Considering that Lewis is already taking treatment of the advertising and marketing and also operations departments all at once; it makes sense to integrate the two features because she has been successfully taking care of both ends. The fact that Lewis has to adjust her administration style for the advertising and marketing department suggests that these 2 divisions would certainly be culturally varied.


An analysis of the three choices suggests that combination of advertising and also operations would certainly not be a practical move as a result of the large differences in between the two divisions despite the fact that currently Lewis is dealing with both. While separation of the manufacturing function might have been a beneficial relocation for the advertising and marketing department, the reality that it would certainly imply positioning a third function under Lewis's wing indicates this must be stayed clear of too. The integration of the advertising division is the most effective alternative in terms of getting the optimal results from the division. An activity prepare for this choice is talked about listed below.

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

Advertising and Marketing functions would be merged.

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

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

Lewis will certainly divide herself from operations.

A democratic management style with employee empowerment will certainly be made use of in advertising department.

Open up door policy as well as emphasis on cross departmental interaction will certainly be targeted at eliminating dissonance.

Contingency strategy.

If the assimilation does not exercise as intended, a contingency strategy would certainly adhere to which would certainly divide the manufacturing function from the marketing function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising division without an SVP. In that case the manufacturing feature will definitely be separated by placing it under an SVP manufacturing.