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Dropbox Series B Financing Case Study Help

CASE ANALYSIS

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Dropbox Series B Financing Case Study Solution

Background and Facts

Dropbox Series B Financing a workplace supplies merchant for little and medium sized businesses has actually recently been associated with planning for a merger with its competitor Home Deport, which has influenced efficiency degrees in departmentswith the senior supervisor associated with lawful problems presented by the federal Profession Payment. With the Advertising and marketing Head advancing the information of his separation from the company in one year, Jeannie Lewis, the present head of operations has actually been asked to take the role in the near future. With difficulties in the form of a prospective social adjustment and low employee spirits, the company is in need of a complete reengineering initiative at the advertising and marketing division.

Issue Statement
Porter's 5 Forces Analysis
The possible social adjustment at the advertising and marketing department of Dropbox Series B Financing is raising unpredictability in the working environment bring about different difficulties 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 function in impacting tactical choices since Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Trade Payment's intervention in the process. Provided the fact that the store has a worldwide existence with branches in UK, USA, Canada as well as Germany, political factors in each of these nations may be able to influence efficiency or strategic objectives. Federal Trade Compensation's antitrust match versus the merger took up valuable time of the organization's senior management suggesting that 'political' factors can have serious effects for a worldwide organisation.

Economic Factors: Financial factors such as the introduction of small companies in the global situation suggest that Dropbox Series B Financing is thriving in an environment where there is potential development of businesses. In addition to this, fact that shop consumers are primarily looking for office products for office recommends that the marketplace has an increasing trend of business owners and home organisations.

Social factors: Social fads in the economic situation reveal that customers are searching for convenience along with attractive costs. Market research shows how the client for Dropbox Series B Financing lacks awareness regarding discovering options which can provide a combination of benefit and inexpensive.

Technological factors: Modern technology plays a vital function in Dropbox Series B Financing's service technique specifically as the company is piloting Technology facilities which would certainly offer innovation sales as well as support in the form of memory upgrades, peripheral setups. (Recap of BUG in appendix 2).

OB Issues as well as Manifestations.

A number of underlying Business Habits concerns can be seen in Dropbox Series B Financing's case as highlighted in this area.

Worries about cultural adjustment: There is worry about a cultural change that would certainly take place as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with a lot of the team member currently showing discontent over this potential relocation. This predicted adjustment has actually developed stress in the workplace which has actually been paired with the past stress of preparing the firm for a prospective merging with Residence Deport.
Pest Analysis
Demanding Job Setting for Newcomers: There is lack of workers that can match the difficult setting of a fast-paced organization. Not just does this lead to trouble in locating the best people, it puts stress on new hires as can not stand up to the speed as well as pressure that the organization anticipates them to birth.

Dual Coverage Lines: Newbies find this business society cumbersome and challenging to cope with especially as dotted line relationships are implied to be weaker as a whole and also objective setting and efficiency analysis is still done by the strong line supervisor. This means that newcomers might lose quality concerning their respective duties and goals especially as dotted line reporting does not maintain them in straight communication with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles despite the fact that it had been hypothesized that the latter would take Krasnow's setting came as a blow to her morale. Lewis might have been qualified and ideal for the work but the reality that Kransnow's separation would certainly make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Job Insecurity: Fear and insecurity can be determined as 2 major worries that Lewis would be dealing with specifically as the merger has currently be cancelled and 2 elderly executives of the advertising department would be leaving. The entire obligation of the department would certainly be falling on Lewis's shoulders that would certainly not just supervise of brining concerning a cultural change yet would also have to show herself in her new role.

Inappropriate Monitoring Style of Leader: Lewis's administration design and its conflict with the advertising and marketing division's role can also be seen as an OB obstacle especially as she has been made use of to taking care of issues in the procedures division where employees are educated to concentrate on procedures and also get them. The marketing department on the various other hand can be viewed as a group of people who are used to being nurtured by Krasnow that concentrated extra on outcome than processes.

Interdepartmental Disagreements: Interdepartmental disputes in between 3 divisions, advertising and marketing, merchandizing as well as procedures respectively over the allocation of the advertising mix can be determined as one more OB worry. The marketing division does not share the exact same vision as the other 2 divisions concerning the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and procedures departments do not concur over the advertising mix appropriation amongst one another either.

Fragmentation in Advertising And Marketing Department: Fragmentation in between the marketing and advertising divisions can be recognized as another OB issue which might need additional attention. The truth that the advertising and marketing areas in the advertising and marketing division are detached is stopping both divisions from gaining from each other's experience and knowledge. Combination of advertising with merchandising and also procedures would certainly end up being more difficult if the marketing department itself is broken down which can be one more prospective OB concern.

Dropbox Series B Financing Analysis

Different theories have been used to describe the circumstances to obtain additional clarity about the scenario handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many managers think that subordinates are passive and also careless, have little aspiration as well as withstand adjustment. The scenario at Dropbox Series B Financing is not totally adhering to Concept X, it can be seen that brand-new hires are finding this atmosphere rather demanding which might at some point lead to a greater disposition of the administration towards Concept X. Also while analyzing Lewis's monitoring style, concept X may have been ideal in the operations department to some degree but the Advertising and marketing division would require reliance on Theory Y in order to obtain the creativity and also creativity from the groups.

Tuckman's Team effort Theory: As far as Lewis's problem about bringing consistency between the advertising and marketing as well as advertising department is worried, this would initially lead to conflict as reviewed by Bruce Tuckman in his 'Synergy Theory'. By combining the marketing and also advertising department's work, there may be the exact same preliminary separate which might lead to the second stage of 'storming' where the teams challenge one another.

Bridges' Transition Design: Based On William Bridge's theory (appendix 4), individuals are quite uncomfortable with adjustment, which is noticeable by the circumstance at Dropbox Series B Financing The circumstance can be seen as a typical training course of life if is examined according to Bridge's concept where he clarifies that individuals experience three stages of transition when they experience adjustment. 'End, shedding and also Releasing', The Neutral Area and also 'The New Starting' (Bridges, 2004). When individuals are presented with adjustment, they enter stage one therefore there might be emotions like despair, uncertainty, stress, rage, concern, rejection and also disorientation.The circumstance at the marketing division of Dropbox Series B Financing is similar so Lewis can obtain comfortable with the idea that it is not extraordinary habits. In the 2nd phase, there might be a requirement to bridge the space between the brand-new and also old culture so Lewis might have to face this ordeal as soon as Krasnow leaves. There might be low spirits and low productivity at this phase which must not be taken as an obstacle. It is during this stage that Lewis will certainly have to offer guidance to the department to ensure that they can discover a sense of direction. It can be seen exactly how Krasnow has currently made this shift easier by making Lewis get associated with the department a year before his real separation. As per Bridges' Model, phase three will certainly bring about visibility to learning, High power and commitment as people will certainly welcome the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has goes over the value of 'safety and security requires as being a reduced degree need of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel protected and out of risk' is at the second level of demands. Prior to a staff member can be made to create emotionally, he needs to have his 'Physical 'as well as 'Safety' requires fulfilled.

SWOT Analysis for Dropbox Series B Financing Case Study



Ramification of Analysis.

The OB analysis has actually checked out different concepts to recognize how to handle the present scenario at hand. The complying with three alternatives have actually been recommended to assist Lewis manage the business challenges in the advertising and marketing department. Each of these options has actually been proposed for relieving the shift required to bring the advertising division in line with the requirements of the marketplace and also for making the cultural modification that would certainly comply with when the existing leader leaves.

Integration of advertising and marketing features. Separating Adverting as well as Production features. Assimilation of Advertising with Workflow.

Assessment of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merger days has know-how in business-to-business advertising and marketing along with company and also retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to handle both advertising and advertising and marketing features.

The advantage of this strategy is that it will certainly incorporate both features while lowering the need for hiring an additional source for marketing. In addition to this, Lewis would be heading the marketing department and all the same her replacement would certainly be needed for the existing role that she is carrying out. The negative aspect of this alternative is that outside hiring might cause resentment from internal workers who might be considering the placement of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and Production: Provided the affordable stress and top quality work required from the advertising agency, it is advised that Lewis ought to permit the production system to be a different feature from the advertising system. Because many ad agency had these two features as different systems, it makes more feeling to adhere to the standard. In addition to this, both features might have the ability to concentrate on their core triggers much more successfully. Nevertheless, the drawback of this technique would be that added costs would certainly need to be birthed for setting up separate production functions. A production head may have to be hired which could raise overheads for the organization.

Assimilation of Marketing with Operations: Because Lewis is already taking treatment of the marketing and also operations departments all at once; it makes sense to integrate the 2 functions considering that she has actually been efficiently taking treatment of both ends. The fact that Lewis has to adapt her administration design for the advertising and marketing division suggests that these 2 departments would certainly be culturally varied.

Suggestion.



An analysis of the 3 alternatives indicates that combination of advertising and operations would not be a feasible move because of the huge differences between both divisions despite the fact that currently Lewis is handling both. While separation of the production feature may have been a favorable move for the marketing department, the fact that it would indicate placing a third function under Lewis's wing means this ought to be avoided too. The integration of the marketing department is the most effective option in terms of obtaining the optimum arise from the department. An action prepare for this alternative is discussed listed below.

Activity Plan.
Recommendation
Lewis will take over the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

Production feature will certainly stay component of marketing under advertising function.

Lewis will divide herself from procedures.

A democratic leadership design with staff member empowerment will certainly be utilized in advertising and marketing department.

Open door policy and focus on cross department communication will certainly be focused on removing discord.

Contingency strategy.

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