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Flipkart Valuing A Venture Capital Funded Startup Case Study Help

CASE ANALYSIS

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Flipkart Valuing A Venture Capital Funded Startup Case Study Solution

Background and Facts

Flipkart Valuing A Venture Capital Funded Startup a workplace products retailer for little and also moderate sized services has actually lately been associated with planning for a merging with its rival Residence Deport, which has actually impacted efficiency levels in departmentswith the senior supervisor associated with lawful complications put forth by the government Profession Compensation. With the Advertising Head putting forward the information of his departure from the firm in one year, Jeannie Lewis, the current head of operations has actually been asked to take the role in the future. With difficulties in the form of a potential cultural modification and also low worker spirits, the company is in need of a complete reengineering effort at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The possible social change at the advertising and marketing department of Flipkart Valuing A Venture Capital Funded Startup is increasing unpredictability in the workplace bring about various difficulties for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in affecting strategic choices since Stapes Inc. had to desert its strategies of merging with Workplace Deport after the Federal Profession Commission's intervention at the same time. Provided the reality that the store has a worldwide existence with branches in UK, U.S.A., Canada and also Germany, political consider each of these nations might be able to impact efficiency or critical objectives. Federal Trade Payment's antitrust fit versus the merger took up useful time of the company's senior administration recommending that 'political' factors can have major ramifications for a global company.

Economic Factors: Economic factors such as the development of small companies in the global scenario suggest that Flipkart Valuing A Venture Capital Funded Startup is prospering in a setting where there is possible growth of services. In addition to this, truth that shop customers are mostly seeking office supplies for office suggests that the marketplace has an increasing pattern of entrepreneurs as well as home based services.

Social factors: Social patterns in the economic situation reveal that customers are searching for ease as well as eye-catching prices. Market research demonstrates how the client for Flipkart Valuing A Venture Capital Funded Startup does not have awareness concerning discovering solutions which can provide a combination of ease and affordable.

Technological factors: Technology plays a vital role in Flipkart Valuing A Venture Capital Funded Startup's company strategy specifically as the organization is piloting Modern technology facilities which would certainly supply modern technology sales as well as assistance in the type of memory upgrades, outer setups. (Recap of INSECT in appendix 2).

OB Issues and also Symptoms.

A number of underlying Business Behavior issues can be seen in Flipkart Valuing A Venture Capital Funded Startup's case as highlighted in this area.

Worries concerning cultural modification: There is worry regarding a social adjustment that would happen when Todd Krasnow leaves from his position as the Executive Vice President of Advertising with most of the employee already showing unhappiness over this potential step. This anticipated change has created stress in the office which has actually been combined with the previous stress of preparing the company for a prospective merging with House Deport.
Pest Analysis
Demanding Task Setting for Newcomers: There is lack of personnel that can match the demanding environment of a fast-paced organization. Not only does this cause difficulty in finding the right people, it puts anxiety on new hires as can not stand up to the rate and pressure that the company anticipates them to birth.

Dual Reporting Lines: Novices discover this organizational culture troublesome as well as hard to deal with specifically as populated line relationships are suggested to be weak in general as well as objective setting and also efficiency assessment is still done by the solid line manager. This means that novices could lose clearness concerning their particular roles and purposes particularly as dotted line coverage does not keep them in straight interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor as opposed to Bridget Coles even though it had been hypothesized that the latter would certainly take Krasnow's position came as an impact to her spirits. Lewis may have been qualified as well as appropriate for the work yet the truth that Kransnow's departure would make Coles a straight report to Lewis might have been the reason for Coles' resignation from solutions.

Anxiety & Work Instability: Worry and instability can be recognized as two significant problems that Lewis would certainly be handling particularly as the merger has currently be terminated and 2 elderly executives of the advertising division would be leaving. The whole duty of the department would certainly be falling on Lewis's shoulders that would not simply supervise of brining concerning a cultural modification however would certainly also need to verify herself in her brand-new role.

Incompatible Management Design of Leader: Lewis's administration style as well as its conflict with the advertising and marketing division's role can likewise be viewed as an OB difficulty particularly as she has actually been used to managing issues in the procedures division where employees are shown to concentrate on procedures as well as get them right. The advertising division on the other hand can be seen as a team of people who are used to being nurtured by Krasnow that concentrated more on result than procedures.

Interdepartmental Disagreements: Interdepartmental disputes in between three divisions, advertising, merchandizing and operations respectively over the allocation of the advertising mix can be determined as one more OB problem. The marketing department does not share the very same vision as the other two divisions pertaining to the aloocation of the marketing mix twoards promos and also advertsing, the merchandizing as well as procedures departments do not agree over the advertising mix appropriation among one another either.

Fragmentation in Marketing Division: Fragmentation in between the advertising and marketing departments can be identified as an additional OB problem which might need additional focus. The truth that the advertising and marketing areas in the marketing division are disconnected is protecting against both divisions from obtaining from each other's experience as well as proficiency. Combination of advertising and marketing with merchandising and also operations would certainly become harder if the advertising division itself is broken down which can be an additional prospective OB problem.

Flipkart Valuing A Venture Capital Funded Startup Analysis

Different concepts have actually been used to clarify the situations to get further quality regarding the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers think that juniors are passive and careless, have little aspiration and also withstand modification. The difficult version of this theory emphasized coercion, limited controls, hazards and penalties. Gradually it generates reduced performance, refined sabotage as well as rivalry (Deal, 2003). The situation at Flipkart Valuing A Venture Capital Funded Startup is not completely following Theory X, it can be seen that brand-new hires are discovering this atmosphere instead demanding which may ultimately lead to a higher disposition of the administration towards Concept X. As per McGregor's advocated sight, which he called Concept Y, the essential job of the monitoring is to arrange business problems so that people can achieve their very own goals best by guiding their initiatives towards organizational benefits. If individuals discover no complete satisfaction in their work, the monitoring would have little option yet to depend on theory X and external control (Offer, 2003). Even while assessing Lewis's monitoring style, concept X may have appropriated in the procedures division to some extent but the Advertising department would call for dependence on Concept Y in order to get the imagination and also originality from the groups.

Tuckman's Synergy Concept: As far as Lewis's concern concerning bringing consistency in between the marketing and advertising and marketing division is concerned, this would initially lead to contrast as discussed by Bruce Tuckman in his 'Synergy Theory'. By incorporating the advertising and marketing and advertising and marketing division's job, there may be the same initial disconnect which could lead to the 2nd stage of 'storming' where the teams challenge one another.

Bridges' Change Version: As per William Bridge's concept (appendix 4), individuals are fairly uneasy with change, which is apparent by the situation at Flipkart Valuing A Venture Capital Funded Startup The situation can be viewed as a typical program of life if is researched based on Bridge's concept where he clarifies that individuals go through 3 phases of transition when they experience adjustment. 'Closing, shedding as well as Letting go', The Neutral Area and also 'The New Beginning' (Bridges, 2004). When individuals are presented with adjustment, they get in phase one therefore there may be emotions like despair, uncertainty, disappointment, anger, concern, rejection and disorientation.The situation at the advertising department of Flipkart Valuing A Venture Capital Funded Startup is similar so Lewis can get comfortable with the suggestion that it is not phenomenal behavior. In the 2nd phase, there might be a demand to link the gap in between the brand-new as well as old culture so Lewis might need to face this experience once Krasnow leaves. There might be low spirits and also reduced efficiency at this stage which must not be taken as a problem. It is throughout this stage that Lewis will certainly need to offer assistance to the division so that they can locate a sense of direction. It can be seen exactly how Krasnow has actually currently made this transition easier by making Lewis obtain associated with the division a year prior to his real departure. According to Bridges' Version, phase three will produce visibility to learning, High power as well as commitment as people will accept the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Pecking order' (appendix 5) has discusses the value of 'protection requires as being a reduced degree demand of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and secure and out of risk' is at the 2nd level of needs. Prior to a staff member can be made to create psychologically, he needs to have his 'Physiological 'and also 'Safety' needs fulfilled.

SWOT Analysis for Flipkart Valuing A Venture Capital Funded Startup Case Study



Ramification of Analysis.

The OB analysis has checked out different concepts to recognize just how to deal with the present situation available. The adhering to three options have actually been recommended to aid Lewis handle the organizational obstacles in the advertising and marketing department. Each of these options has been suggested for reducing the shift required to bring the marketing division in line with the requirements of the marketplace and for making the social change that would follow as soon as the current leader leaves.

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

Examination of Alternatives.

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

The advantage of this technique is that it will incorporate the two features while decreasing the requirement for hiring an extra source for marketing. Lewis would be heading the advertising division and in any case her substitute would be required for the present function that she is carrying out. The negative aspect of this option is that outside hiring may produce bitterness from internal workers that might be looking at the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Manufacturing: Given the competitive stress and high quality work called for from the ad agency, it is recommended that Lewis should enable the production unit to be a different feature from the advertising and marketing device. Because many ad agency had these 2 functions as separate units, it makes even more sense to adhere to the norm. Both features might be able to concentrate on their core turns on much more efficiently. Nonetheless, the drawback of this method would certainly be that extra costs would certainly have to be borne for establishing separate production features. Along with this, a production head might have to be worked with which can boost expenses for the organization.

Assimilation of Advertising with Procedures: Given that Lewis is currently dealing with the advertising and marketing and also operations departments all at once; it makes sense to incorporate the two functions because she has been effectively taking care of both ends. The fact that both divisions already have major distinctions over allotment of sources suggests that this combination might have the ability to bring about consistency specifically as Lewis would certainly be heading both ends.However there are numerous downsides of this move specifically as it would certainly place way too much concern over Lewis's shoulders. The truth that Lewis needs to adjust her administration design for the marketing department recommends that these two departments would be culturally diverse. Lewis may not be able to apply one type of management style to both departments which can result in inadequacy in either one of the 2 functions.

Referral.



An evaluation of the three alternatives suggests that integration of advertising and procedures would certainly not be a possible step due to the large differences between the two divisions in spite of the truth that presently Lewis is handling both. While separation of the production function may have been a positive step for the advertising department, the fact that it would certainly suggest positioning a 3rd function under Lewis's wing means this must be stayed clear of.

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

Marketing and advertising features would certainly be combined.

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

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

Lewis will certainly divide herself from procedures.

An autonomous leadership design with worker empowerment will certainly be utilized in marketing department.

Open up door policy as well as focus on cross department communication will be targeted at getting rid of disharmony.

Contingency strategy.

If the integration does not work out as intended, a backup strategy would comply with which would certainly divide the manufacturing feature from the marketing feature to reduce the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising division without an SVP. In that case the manufacturing function will most definitely be divided by putting it under an SVP production.