Endeca Technologies New Growth Opportunities Case Study Analysis


Home >> Harvard >> Endeca Technologies New Growth Opportunities >>

Endeca Technologies New Growth Opportunities Case Study Solution

Background and Facts

Endeca Technologies New Growth Opportunities a workplace products seller for little and also average sized businesses has lately been involved in planning for a merging with its rival House Deport, which has affected efficiency degrees in departmentswith the senior supervisor associated with legal difficulties presented by the government Profession Compensation. With the Marketing Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the function in the near future. With obstacles in the kind of a potential social modification and reduced worker spirits, the company is in need of a full reengineering initiative at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The potential social modification at the marketing division of Endeca Technologies New Growth Opportunities is increasing uncertainty in the working environment causing different challenges for the Jeannie Lewis who would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing calculated decisions given that Stapes Inc. had to abandon its strategies of merging with Workplace Deport after the Federal Trade Compensation's treatment in the process. Given the reality that the shop has a worldwide presence with branches in UK, UNITED STATES, Canada and also Germany, political factors in each of these nations might be able to impact efficiency or critical goals. Federal Trade Payment's antitrust match versus the merging used up useful time of the company's elderly management suggesting that 'political' factors can have significant implications for a worldwide company.

Economic Factors: Financial factors such as the introduction of small businesses in the worldwide situation recommend that Endeca Technologies New Growth Opportunities is prospering in an environment where there is potential development of companies. In addition to this, reality that store clients are mainly searching for workplace materials for home offices suggests that the marketplace has a climbing trend of entrepreneurs and online organisations.

Social factors: Social patterns in the economic situation show that clients are seeking ease along with attractive prices. Market research shows how the consumer for Endeca Technologies New Growth Opportunities lacks understanding regarding locating services which can supply a mix of convenience and also affordable.

Technical factors: Technology plays an essential function in Endeca Technologies New Growth Opportunities's organisation approach especially as the organization is piloting Innovation centers which would supply technology sales and assistance in the form of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues and Symptoms.

A number of underlying Business Actions issues can be seen in Endeca Technologies New Growth Opportunities's case as highlighted in this area.

Concerns regarding cultural adjustment: There is uneasiness regarding a social adjustment that would certainly happen once Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with the majority of the employee currently revealing discontent over this potential action. This predicted change has developed anxiety in the work environment which has actually been paired with the past anxiety of preparing the firm for a possible merging with Home Deport.
Pest Analysis
Stressful Job Environment for Newcomers: There is lack of personnel that can match the difficult setting of a fast-paced company. Not just does this cause difficulty in discovering the best people, it places stress on new hires as can not hold up against the speed as well as pressure that the organization anticipates them to bear.

Dual Reporting Lines: Newbies find this business culture troublesome and hard to manage specifically as populated line connections are indicated to be weak generally and also unbiased setting and also efficiency evaluation is still done by the strong line supervisor. This indicates that newcomers can shed clarity concerning their particular roles as well as purposes especially as dotted line coverage does not maintain them in straight communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had been hypothesized that the latter would take Krasnow's setting came as a blow to her spirits. Lewis might have been qualified as well as ideal for the job but the fact that Kransnow's separation would make Coles a straight record to Lewis may have been the reason for Coles' resignation from services.

Concern & Work Insecurity: Concern and also instability can be identified as 2 major problems that Lewis would certainly be managing especially as the merger has actually currently be cancelled and also 2 senior execs of the marketing division would be leaving. The whole responsibility of the division would be dropping on Lewis's shoulders who would certainly not just be in charge of brining about a cultural modification however would also need to verify herself in her new role.

Inappropriate Monitoring Style of Leader: Lewis's management style as well as its incompatibility with the advertising division's role can additionally be seen as an OB difficulty specifically as she has been used to dealing with problems in the operations department where workers are instructed to focus on processes as well as get them right. The marketing department on the other hand can be seen as a group of people who are utilized to being nurtured by Krasnow that concentrated more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental arguments in between 3 departments, marketing, merchandizing as well as operations respectively over the allocation of the marketing mix can be determined as another OB worry. The advertising and marketing department does not share the same vision as the various other 2 departments regarding the aloocation of the advertising mix twoards promotions and also advertsing, the merchandizing and also procedures divisions do not concur over the advertising mix allotment amongst one another either.

Disintegration in Marketing Division: Disintegration in between the marketing and advertising departments can be identified as another OB concern which can require additional focus. The fact that the advertising and marketing sections in the marketing division are disconnected is stopping both departments from obtaining from each various other's experience as well as knowledge. Assimilation of advertising and marketing with retailing as well as operations would certainly come to be harder if the marketing department itself is disintegrated which can be another possible OB problem.

Endeca Technologies New Growth Opportunities Analysis

Various theories have actually been utilized to discuss the conditions to get additional clarity regarding the circumstance at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors believe that subordinates are passive as well as careless, have little ambition and withstand modification. The tough variation of this concept highlighted browbeating, tight controls, risks and punishments. Gradually it creates reduced productivity, refined sabotage and also competition (Deal, 2003). The scenario at Endeca Technologies New Growth Opportunities is not totally adhering to Concept X, it can be seen that new hires are finding this environment rather stressful which might ultimately lead to a higher disposition of the management in the direction of Theory X. As per McGregor's promoted view, which he called Theory Y, the necessary job of the administration is to prepare business conditions so that people can accomplish their very own goals best by routing their initiatives towards organizational incentives. If people locate no contentment in their work, the management would certainly have little selection however to count on theory X and outside control (Bargain, 2003). Even while analyzing Lewis's management design, concept X might have been suitable in the operations division to some extent yet the Marketing division would require reliance on Theory Y to get the creativity and also originality from the groups.

Tuckman's Teamwork Theory: As far as Lewis's concern about bringing harmony between the advertising and marketing as well as advertising division is concerned, this would initially lead to clash as gone over by Bruce Tuckman in his 'Synergy Concept'. By combining the advertising and marketing as well as advertising and marketing department's work, there might be the same preliminary detach which might lead to the second phase of 'storming' where the teams challenge one another.

Bridges' Transition Version: As per William Bridge's theory (appendix 4), people are fairly unpleasant with modification, which is evident by the situation at Endeca Technologies New Growth Opportunities The scenario can be viewed as a typical program of life if is researched according to Bridge's concept where he discusses that individuals go through three stages of shift when they experience modification. 'Ending, losing as well as Releasing', The Neutral Zone as well as 'The New Beginning' (Bridges, 2004). When individuals exist with change, they enter phase one therefore there might be emotions like unhappiness, uncertainty, aggravation, rage, concern, denial and disorientation.The situation at the advertising department of Endeca Technologies New Growth Opportunities is comparable so Lewis can obtain comfy with the idea that it is not remarkable habits. In the 2nd phase, there may be a requirement to bridge the gap between the new and also old culture so Lewis may need to face this challenge as soon as Krasnow leaves. There may be reduced morale and also low performance at this phase which ought to not be taken as a trouble. It is during this phase that Lewis will need to offer guidance to the department to ensure that they can locate an orientation. It can be seen just how Krasnow has currently made this change easier by making Lewis get associated with the division a year before his actual separation. According to Bridges' Design, phase three will certainly produce openness to knowing, High power and also commitment as individuals will certainly embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Requirement power structure: The OB issue related to instability at the workplace has been set off firstly by the adjustment in administration as well as secondly by the truth that the merging will certainly no longer be launched. Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has talks about the importance of 'safety and security needs as being a lower level requirement of a human for setting off inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to really feel protected as well as out of danger' is at the second level of needs. Prior to a worker can be made to create psychologically, he requires to have his 'Physiological 'as well as 'Security' needs fulfilled. This indicates that unless the employees are made to feel protected regarding their current work condition in Endeca Technologies New Growth Opportunities they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Endeca Technologies New Growth Opportunities Case Study

Ramification of Analysis.

The OB analysis has taken a look at numerous theories to recognize exactly how to handle the present situation available. The adhering to three options have actually been proposed to help Lewis handle the organizational challenges in the marketing department. Each of these alternatives has actually been suggested for relieving the shift needed to bring the advertising and marketing division in line with the demands of the marketplace as well as for making the social modification that would certainly adhere to once the present leader leaves.

Integration of advertising and marketing features. Dividing Adverting and also Production functions. Combination of Marketing with Workflow.

Assessment of Alternatives.

Assimilation of Marketing & Advertising And Marketing Functions: The internal marketing agency of Endeca Technologies New Growth Opportunities is already toughness for the company in regards to saving up on overheads connected to marketing and also promo. Given that no brand-new recruitment has been done after Bridget Cole's departure with the coverage line being directly assigned to Krasnow for the marketing function, this is a positive opportunity for integrating the advertising and marketing functions. Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merging days has proficiency in business-to-business advertising and marketing together with agency as well as retail advertising and marketing experience. Once Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to handle both marketing and advertising features.

The benefit of this approach is that it will integrate the two features while minimizing the demand for hiring an extra source for advertising and marketing. In addition to this, Lewis would be heading the marketing department as well as regardless her substitute would certainly be needed for the present role that she is doing. The negative aspect of this option is that outside hiring may bring about animosity from internal personnel that may be eying the placement of EVP after Lewis takes control of Krasnow's placement.

Dividing Adverting and also Manufacturing: Given the competitive pressures and premium quality job required from the ad agency, it is advised that Lewis must enable the production system to be a different feature from the marketing device. Since the majority of ad agency had these two functions as different units, it makes even more feeling to adhere to the norm. Both functions may be able to focus on their core triggers much more successfully. Nonetheless, the negative aspect of this method would be that added prices would have to be borne for setting up different production features. A manufacturing head may have to be hired which might increase overheads for the organization.

Combination of Advertising with Procedures: Given that Lewis is currently dealing with the marketing and also operations divisions at the same time; it makes good sense to incorporate both functions because she has actually been successfully dealing with both ends. The fact that both departments currently have major differences over allotment of sources recommends that this assimilation might have the ability to cause harmony particularly as Lewis would certainly be heading both ends.However there are various downsides of this step specifically as it would place way too much problem over Lewis's shoulders. The truth that Lewis has to adapt her management design for the advertising and marketing division recommends that these two departments would be culturally varied. In addition to this, Lewis may not have the ability to apply one type of management design to both divisions which could lead to inadequacy in either one of both features.


An assessment of the 3 choices suggests that assimilation of advertising and also procedures would not be a possible action due to the substantial distinctions between the two departments although that currently Lewis is handling both. While splitting up of the manufacturing function might have been a desirable relocation for the marketing division, the fact that it would indicate putting a 3rd function under Lewis's wing implies this need to be stayed clear of also. The integration of the marketing division is the most effective alternative in terms of getting the ideal arise from the department. An activity prepare for this choice is talked about listed below.

Action Strategy.
Lewis will certainly take over the role 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 component of advertising and marketing under marketing function.

Lewis will divide herself from operations.

A democratic leadership design with employee empowerment will certainly be used in marketing division.

Open up door policy as well as focus on cross departmental interaction will be aimed at eliminating disharmony.

Backup strategy.

If the combination does not exercise as planned, a backup plan would adhere to which would certainly divide the manufacturing feature from the marketing feature to reduce the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the marketing department without an SVP. Because case the manufacturing function will absolutely be divided by positioning it under an SVP manufacturing.