Elemental Technologies The Seed Investment Dilemma Case Study Help


Home >> Harvard >> Elemental Technologies The Seed Investment Dilemma >>

Elemental Technologies The Seed Investment Dilemma Case Study Help

Background and Facts

Elemental Technologies The Seed Investment Dilemma an office products store for small and also average sized organisations has just recently been involved in preparing for a merging with its competitor Residence Deport, which has impacted efficiency degrees in departmentswith the senior supervisor involved in lawful complications put forth by the government Profession Commission. With the Advertising Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the present head of operations has been asked to take the role in the near future. With difficulties in the form of a possible cultural modification and low worker morale, the company is in need of a complete reengineering effort at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the marketing division of Elemental Technologies The Seed Investment Dilemma is raising unpredictability in the working environment leading to numerous obstacles for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in affecting calculated decisions since Stapes Inc. had to desert its strategies of combining with Workplace Deport after the Federal Trade Payment's treatment in the process. Offered the fact that the shop has a worldwide visibility with branches in UK, UNITED STATES, Canada and Germany, political consider each of these countries might have the ability to influence efficiency or strategic goals. Federal Profession Payment's antitrust suit versus the merging occupied beneficial time of the company's senior monitoring suggesting that 'political' factors can have serious implications for a global organisation.

Economic Factors: Economic factors such as the appearance of local business in the worldwide situation recommend that Elemental Technologies The Seed Investment Dilemma is thriving in an atmosphere where there is prospective development of businesses. Truth that shop customers are primarily looking for workplace materials for residence workplaces recommends that the market has a rising pattern of entrepreneurs and also home based services.

Social factors: Social trends in the economic climate show that consumers are trying to find convenience as well as attractive costs. Market research shows how the client for Elemental Technologies The Seed Investment Dilemma does not have recognition regarding discovering services which can supply a combination of comfort as well as low costs.

Technological factors: Technology plays a vital duty in Elemental Technologies The Seed Investment Dilemma's business approach especially as the company is piloting Innovation facilities which would supply modern technology sales and also support in the type of memory upgrades, outer setups. (Summary of PEST in appendix 2).

OB Issues as well as Effects.

Several underlying Organizational Habits concerns can be seen in Elemental Technologies The Seed Investment Dilemma's case as highlighted in this section.

Apprehensions concerning social adjustment: There is worry about a social change that would happen when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Advertising And Marketing with a lot of the personnel already showing unhappiness over this potential step. This anticipated change has produced stress in the office which has been coupled with the previous stress and anxiety of preparing the company for a prospective merger with House Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is scarcity of employees that can match the stressful environment of a hectic company. Not only does this result in trouble in finding the right people, it places stress on brand-new hires as can not endure the rate and stress that the organization anticipates them to birth.

Twin Coverage Lines: Newbies find this organizational society troublesome and also challenging to manage specifically as populated line connections are suggested to be weaker generally and unbiased setup as well as efficiency examination is still done by the solid line supervisor. This suggests that newcomers might lose clearness regarding their respective functions and objectives especially as dotted line reporting does not maintain them in direct interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles even though it had been guessed that the latter would certainly take Krasnow's setting came as a strike to her spirits. Lewis might have been capable and proper for the work yet the fact that Kransnow's departure would make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Work Instability: Concern and also insecurity can be determined as 2 major issues that Lewis would be handling specifically as the merger has currently be terminated as well as 2 elderly executives of the advertising division would be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders that would certainly not simply supervise of brining about a social adjustment however would likewise have to prove herself in her new duty.

Inappropriate Administration Design of Leader: Lewis's management design and also its incompatibility with the advertising division's role can additionally be seen as an OB difficulty especially as she has been utilized to managing issues in the procedures division where employees are shown to focus on processes and also get them. The marketing department on the various other hand can be seen as a group of individuals who are utilized to being nurtured by Krasnow that focused more on result than procedures.

Interdepartmental Disputes: Interdepartmental arguments in between 3 departments, marketing, merchandizing and operations respectively over the allowance of the marketing mix can be recognized as an additional OB concern. The marketing department does not share the very same vision as the other two divisions pertaining to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and also procedures departments do not concur over the advertising and marketing mix allocation amongst one an additional either.

Fragmentation in Advertising And Marketing Division: Fragmentation in between the marketing and advertising departments can be determined as another OB concern which might need additional attention. The reality that the advertising and marketing sections in the advertising and marketing division are disconnected is preventing both divisions from getting from each other's experience as well as know-how. Combination of marketing with retailing as well as operations would become harder if the advertising and marketing division itself is disintegrated which can be an additional prospective OB concern.

Elemental Technologies The Seed Investment Dilemma Analysis

Numerous concepts have actually been made use of to clarify the conditions to get further clarity concerning the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, the majority of supervisors believe that subordinates are passive as well as careless, have little passion as well as stand up to adjustment. The hard version of this concept highlighted browbeating, tight controls, hazards as well as punishments. With time it generates reduced productivity, refined sabotage and also rivalry (Deal, 2003). Although the situation at Elemental Technologies The Seed Investment Dilemma is not completely complying with Theory X, it can be seen that new hires are finding this environment instead demanding which may at some point bring about a higher inclination of the management towards Theory X. Based on McGregor's supported sight, which he called Concept Y, the vital job of the administration is to prepare business problems to ensure that individuals can achieve their very own objectives best by directing their initiatives in the direction of organizational incentives. If individuals find no fulfillment in their job, the administration would certainly have little choice however to rely on concept X as well as outside control (Offer, 2003). Also while analyzing Lewis's management style, concept X might have been suitable in the operations department somewhat however the Advertising and marketing department would need dependence on Concept Y to get the creativity as well as originality from the teams.

Tuckman's Teamwork Concept: As much as Lewis's concern about bringing consistency in between the advertising and marketing division is concerned, this would initially lead to contrast as gone over by Bruce Tuckman in his 'Team effort Concept'. By combining the advertising and marketing and also marketing department's work, there might be the same first separate which can lead to the second stage of 'storming' where the groups challenge one another.

Bridges' Shift Design: According To William Bridge's concept (appendix 4), individuals are quite awkward with change, which is evident by the circumstance at Elemental Technologies The Seed Investment Dilemma The situation can be seen as a typical program of life if is researched based on Bridge's theory where he clarifies that individuals undergo 3 stages of transition when they experience adjustment. 'Ending, shedding as well as Releasing', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people are presented with modification, they go into phase one therefore there may be feelings like despair, unpredictability, disappointment, temper, fear, denial and also disorientation.The circumstance at the advertising division of Elemental Technologies The Seed Investment Dilemma is similar so Lewis can get comfy with the suggestion that it is not amazing actions. In the second phase, there might be a demand to connect the gap between the new and old society so Lewis may need to face this challenge as soon as Krasnow leaves. There may be low morale and also reduced productivity at this stage which ought to not be taken as a setback. It is throughout this phase that Lewis will certainly have to provide support to the division to ensure that they can discover a sense of direction. It can be seen just how Krasnow has already made this shift less complicated by making Lewis get associated with the department a year prior to his actual separation. According to Bridges' Model, phase 3 will certainly cause openness to knowing, High power and also dedication as individuals will accept the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has talks about the significance of 'protection requires as being a lower level need of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to really feel secure and out of danger' is at the second level of demands. Before a worker can be made to establish psychologically, he needs to have his 'Physiological 'and 'Safety and security' needs met.

SWOT Analysis for Elemental Technologies The Seed Investment Dilemma Case Study

Ramification of Analysis.

The OB analysis has taken a look at various theories to recognize exactly how to manage the current circumstance available. The following 3 options have actually been recommended to aid Lewis take care of the organizational difficulties in the advertising and marketing division. Each of these choices has been suggested for reducing the transition needed to bring the advertising department in accordance with the needs of the market and for making the cultural adjustment that would certainly follow as soon as the present leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and also Manufacturing features. Combination of Marketing with Procedures.

Assessment of Alternatives.

Assimilation of Advertising & Advertising And Marketing Functions: The internal marketing company of Elemental Technologies The Seed Investment Dilemma is already stamina for the organization in regards to saving up on overheads connected to marketing and promotion. Considering that no brand-new employment has been done after Bridget Cole's separation with the reporting line being straight appointed to Krasnow for the marketing function, this is a beneficial opportunity for incorporating the advertising and marketing features. Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merger days has experience in business-to-business advertising together with company and also retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to deal with both marketing and advertising features.

The benefit of this approach is that it will certainly incorporate the two features while decreasing the need for working with an additional resource for advertising and marketing. Lewis would be heading the marketing division and also in any kind of case her replacement would be required for the present role that she is performing. The drawback of this choice is that external hiring may bring about animosity from internal workers that may be eying the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and also Manufacturing: Offered the affordable pressures and high quality work required from the ad agency, it is advised that Lewis must allow the manufacturing device to be a separate function from the advertising device. Given that many ad agency had these 2 features as separate systems, it makes even more sense to follow the standard. In addition to this, both functions may be able to focus on their core activates a lot more successfully. The disadvantage of this strategy would certainly be that added expenses would certainly have to be birthed for establishing up different manufacturing functions. In addition to this, a manufacturing head might have to be hired which can enhance overheads for the organization.

Assimilation of Marketing with Procedures: Because Lewis is already caring for the marketing as well as operations divisions at the same time; it makes sense to incorporate the two functions because she has been successfully caring for both ends. The truth that both departments already have major distinctions over allotment of resources suggests that this assimilation may have the ability to produce consistency specifically as Lewis would be heading both ends.However there are different disadvantages of this step specifically as it would certainly put way too much worry over Lewis's shoulders. The truth that Lewis has to adjust her management design for the advertising division suggests that these 2 divisions would be culturally varied. Lewis might not be able to use one type of management design to both departments which could result in inadequacy in either one of the 2 features.


An examination of the 3 alternatives suggests that assimilation of advertising as well as operations would certainly not be a practical action because of the huge differences between the two departments despite the fact that presently Lewis is managing both. While separation of the manufacturing feature might have been a favorable move for the advertising and marketing department, the reality that it would certainly suggest placing a 3rd feature under Lewis's wing means this ought to be stayed clear of. The integration of the advertising department is the very best option in regards to obtaining the optimum arise from the department. An activity plan for this choice is gone over below.

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

Marketing and advertising functions would be combined.

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

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

Lewis will certainly separate herself from procedures.

A democratic management design with employee empowerment will certainly be used in advertising and marketing division.

Open door policy and emphasis on cross departmental communication will be targeted at eliminating dissonance.

Contingency strategy.

If the combination does not exercise as planned, a contingency plan would comply with which would divide the manufacturing function from the advertising and marketing function to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising division without an SVP. Because case the manufacturing function will certainly be separated by putting it under an SVP manufacturing.