Finding Its Niche Community Development Venture Capital Case Study Help


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Finding Its Niche Community Development Venture Capital Case Study Help

Background and Facts

Finding Its Niche Community Development Venture Capital a workplace products merchant for small and moderate sized businesses has actually just recently been associated with planning for a merger with its competitor Home Deport, which has influenced effectiveness degrees in departmentswith the senior supervisor involved in lawful complications put forth by the federal Profession Compensation. With the Advertising and marketing Head putting forward the news of his departure from the business in one year, Jeannie Lewis, the current head of operations has been asked to take the duty in the future. With obstacles in the type of a potential cultural change and low staff member morale, the organization is in need of a full reengineering effort at the marketing department.

Problem Statement
Porter's 5 Forces Analysis
The prospective social modification at the advertising division of Finding Its Niche Community Development Venture Capital is raising uncertainty in the workplace causing various 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 major role in influencing strategic choices since Stapes Inc. had to abandon its strategies of combining with Workplace Deport after the Federal Trade Commission's intervention while doing so. Provided the truth that the shop has a worldwide existence with branches in UK, UNITED STATES, Canada and also Germany, political consider each of these countries might have the ability to affect efficiency or strategic goals. Federal Trade Payment's antitrust fit against the merging took up beneficial time of the company's elderly monitoring suggesting that 'political' factors can have major implications for an international company.

Economic Factors: Economic factors such as the development of local business in the international circumstance recommend that Finding Its Niche Community Development Venture Capital is growing in an atmosphere where there is prospective growth of businesses. Along with this, reality that store clients are mostly seeking office supplies for office recommends that the marketplace has an increasing pattern of business owners as well as online businesses.

Social factors: Social fads in the economic climate show that consumers are trying to find benefit along with appealing costs. Market research shows how the customer for Finding Its Niche Community Development Venture Capital lacks understanding regarding finding services which can supply a mix of comfort and also affordable.

Technological factors: Innovation plays an important duty in Finding Its Niche Community Development Venture Capital's organisation method particularly as the organization is piloting Technology centers which would certainly provide innovation sales and also support in the kind of memory upgrades, peripheral setups. (Summary of PARASITE in appendix 2).

OB Issues as well as Effects.

Numerous underlying Business Behavior problems can be seen in Finding Its Niche Community Development Venture Capital's case as highlighted in this section.

Worries regarding cultural change: There is worry about a cultural change that would certainly occur when Todd Krasnow leaves from his placement as the Executive Vice Head Of State of Marketing with the majority of the personnel already revealing discontent over this potential step. This expected modification has actually produced anxiety in the office which has actually been combined with the past anxiety of preparing the firm for a potential merging with Home Deport.
Pest Analysis
Stressful Work Atmosphere for Newcomers: There is lack of employees that can match the demanding setting of a hectic company. Not just does this bring about difficulty in finding the right people, it places tension on new hires as can not hold up against the pace as well as stress that the organization expects them to birth.

Dual Reporting Lines: Newcomers locate this business culture cumbersome and hard to handle especially as dotted line partnerships are implied to be weak in general and unbiased setting and performance evaluation is still done by the solid line supervisor. This indicates that novices can lose clarity about their respective roles as well as objectives particularly as populated line reporting does not keep them in direct communication with the solid line managers.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles even though it had been hypothesized that the latter would take Krasnow's setting came as a blow to her morale. Lewis might have been capable as well as suitable for the task yet the truth that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Task Instability: Concern and instability can be determined as 2 major worries that Lewis would be handling especially as the merging has currently be terminated and also 2 elderly executives of the advertising and marketing department would certainly be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders that would certainly not simply be in charge of brining concerning a social adjustment but would also need to verify herself in her new duty.

Inappropriate Management Design of Leader: Lewis's administration design and its conflict with the marketing division's duty can also be seen as an OB difficulty especially as she has been made use of to taking care of concerns in the operations division where personnel are educated to focus on processes and get them. The advertising and marketing division on the other hand can be seen as a group of people that are utilized to being supported by Krasnow who concentrated a lot more on output than processes.

Interdepartmental Differences: Interdepartmental differences between 3 departments, marketing, merchandizing as well as procedures specifically over the allowance of the advertising and marketing mix can be recognized as one more OB issue. The advertising and marketing department does not share the exact same vision as the other two departments concerning the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing and also operations departments do not agree over the advertising and marketing mix allowance among one another either.

Fragmentation in Advertising And Marketing Department: Fragmentation between the advertising and marketing divisions can be recognized as another OB issue which can need further attention. The reality that the marketing and advertising sections in the advertising division are disconnected is avoiding both departments from obtaining from each various other's experience and also expertise. Combination of marketing with merchandising as well as procedures would become more difficult if the advertising department itself is disintegrated which can be one more potential OB concern.

Finding Its Niche Community Development Venture Capital Analysis

Various theories have been used to clarify the conditions to get more clarity concerning the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, the majority of managers think that juniors are passive and lazy, have little passion as well as withstand adjustment. The tough variation of this concept highlighted browbeating, tight controls, risks and penalties. Over time it produces low efficiency, subtle sabotage and also competition (Deal, 2003). The circumstance at Finding Its Niche Community Development Venture Capital is not entirely adhering to Theory X, it can be seen that new hires are discovering this environment instead stressful which may at some point lead to a better inclination of the monitoring towards Theory X. According to McGregor's promoted view, which he called Concept Y, the crucial task of the administration is to organize organizational conditions to make sure that individuals can accomplish their own objectives best by guiding their efforts towards organizational rewards. If people discover no complete satisfaction in their work, the monitoring would have little choice but to rely on theory X and external control (Deal, 2003). Also while analyzing Lewis's administration style, theory X may have been suitable in the operations division somewhat but the Advertising and marketing division would certainly require reliance on Concept Y to get the imagination and originality from the teams.

Tuckman's Team effort Theory: As much as Lewis's concern about bringing harmony between the advertising and marketing and also advertising department is worried, this would initially lead to conflict as talked about by Bruce Tuckman in his 'Team effort Theory'. By integrating the marketing as well as advertising department's job, there may be the very same first detach which can lead to the 2nd phase of 'storming' where the teams challenge one another.

Bridges' Shift Model: As per William Bridge's theory (appendix 4), individuals are rather awkward with adjustment, which is noticeable by the situation at Finding Its Niche Community Development Venture Capital The situation can be viewed as a typical course of life if is studied as per Bridge's concept where he discusses that individuals undergo 3 stages of change when they experience change. 'End, shedding and Releasing', The Neutral Zone and 'The New Starting' (Bridges, 2004). When individuals exist with modification, they enter phase one and so there may be emotions like despair, unpredictability, irritation, temper, fear, rejection and disorientation.The circumstance at the marketing division of Finding Its Niche Community Development Venture Capital is similar so Lewis can obtain comfortable with the concept that it is not phenomenal actions. In the second stage, there might be a demand to bridge the gap in between the new as well as old society so Lewis might need to face this challenge once Krasnow leaves. There might be reduced spirits and also low productivity at this stage which need to not be taken as an obstacle. It is during this stage that Lewis will need to give advice to the division so that they can locate an orientation. It can be seen just how Krasnow has already made this shift less complicated by making Lewis get involved in the division a year before his actual departure. Based on Bridges' Model, phase 3 will certainly cause openness to discovering, High energy as well as commitment as people will embrace the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has discusses the importance of 'safety and security requires as being a lower degree need of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to feel protected and also out of danger' is at the second level of needs. Before an employee can be made to develop mentally, he requires to have his 'Physical 'and also 'Safety and security' requires met.

SWOT Analysis for Finding Its Niche Community Development Venture Capital Case Study

Effects of Analysis.

The OB analysis has checked out different concepts to recognize how to manage the existing circumstance available. The complying with 3 choices have actually been suggested to help Lewis handle the business obstacles in the marketing department. Each of these choices has actually been recommended for relieving the change required to bring the advertising division in line with the needs of the marketplace and for making the cultural change that would certainly follow once the current leader leaves.

Assimilation of advertising and marketing features. Separating Adverting as well as Manufacturing features. Integration of Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis during the earlier merging days has expertise in business-to-business advertising along with company and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to deal with both advertising and marketing and marketing functions.

The benefit of this approach is that it will integrate both functions while reducing the demand for hiring an extra resource for marketing. Lewis would certainly be heading the advertising and marketing division and in any case her replacement would certainly be needed for the present role that she is executing. The disadvantage of this choice is that external hiring may produce animosity from inner employees who might be eying the placement of EVP after Lewis takes over Krasnow's placement.

Separating Adverting as well as Production: Offered the competitive stress as well as high top quality work required from the marketing firm, it is suggested that Lewis should allow the manufacturing unit to be a separate function from the advertising and marketing unit. Because the majority of advertising companies had these two functions as separate systems, it makes more feeling to adhere to the standard.

Integration of Advertising with Workflows: Given that Lewis is already taking treatment of the advertising and marketing and procedures departments simultaneously; it makes feeling to integrate the 2 functions considering that she has actually been effectively taking treatment of both ends. The fact that Lewis has to adjust her administration design for the advertising division recommends that these 2 departments would be culturally varied.


An assessment of the 3 options shows that integration of marketing as well as operations would not be a viable move due to the huge differences between the two divisions although that presently Lewis is managing both. While separation of the manufacturing feature may have been a desirable relocation for the advertising and marketing department, the fact that it would imply placing a 3rd function under Lewis's wing suggests this must be prevented as well. The integration of the advertising department is the most effective choice in terms of obtaining the ideal arise from the division. An activity prepare for this option is talked about listed below.

Action Strategy.
Lewis will take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising functions would be combined.

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

Production function will certainly continue to be part of marketing under advertising and marketing function.

Lewis will certainly separate herself from procedures.

An autonomous leadership style with employee empowerment will be utilized in advertising and marketing department.

Open door policy and emphasis on cross departmental communication will certainly be focused on eliminating discord.

Backup plan.

If the assimilation does not work out as intended, a backup plan would adhere to which would divide the production function from the marketing function to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising and marketing division without an SVP. In that case the manufacturing feature will definitely be divided by positioning it under an SVP manufacturing.