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Jiuding Capital Private Equity Firm With Chinese Characteristics B Case Study Analysis

Background and Facts

Jiuding Capital Private Equity Firm With Chinese Characteristics B a workplace materials seller for tiny and average sized organisations has just recently been associated with preparing for a merging with its rival Home Deport, which has actually affected effectiveness degrees in departmentswith the elderly manager associated with lawful problems put forth by the government Trade Payment. With the Marketing Head advancing the news of his separation from the business in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the future. With challenges in the type of a possible social adjustment and also low employee spirits, the company needs a full reengineering initiative at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The possible social change at the marketing division of Jiuding Capital Private Equity Firm With Chinese Characteristics B is raising uncertainty in the working environment resulting in various difficulties 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 role in impacting critical decisions considering that Stapes Inc. had to abandon its strategies of combining with Workplace Deport after the Federal Profession Commission's intervention at the same time. Given the reality that the store has a worldwide existence with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these countries may be able to affect efficiency or critical objectives. Federal Profession Payment's antitrust suit against the merger occupied valuable time of the company's elderly administration recommending that 'political' factors can have severe implications for a worldwide organisation.

Economic Factors: Economic factors such as the development of small businesses in the international scenario recommend that Jiuding Capital Private Equity Firm With Chinese Characteristics B is prospering in an environment where there is potential development of companies. Along with this, fact that shop consumers are primarily trying to find office supplies for office recommends that the marketplace has a rising pattern of entrepreneurs and also home organisations.

Social factors: Social trends in the economic situation reveal that consumers are trying to find convenience along with eye-catching prices. Marketing research demonstrates how the customer for Jiuding Capital Private Equity Firm With Chinese Characteristics B does not have recognition about discovering services which can provide a combination of ease and also low costs.

Technical factors: Modern technology plays an important function in Jiuding Capital Private Equity Firm With Chinese Characteristics B's service strategy particularly as the company is piloting Technology facilities which would supply technology sales and assistance in the kind of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues and also Effects.

Numerous underlying Organizational Behavior concerns can be seen in Jiuding Capital Private Equity Firm With Chinese Characteristics B's case as highlighted in this section.

Concerns regarding cultural modification: There is concern about a cultural modification that would happen when Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with a lot of the team member currently showing discontent over this prospective step. This expected adjustment has produced anxiety in the workplace which has actually been coupled with the past stress of preparing the firm for a possible merging with House Deport.
Pest Analysis
Stressful Task Environment for Newcomers: There is scarcity of personnel that can match the stressful setting of a hectic company. Not just does this result in trouble in locating the right individuals, it places anxiety on new hires as can not endure the speed and also stress that the company anticipates them to bear.

Double Coverage Lines: Newbies discover this organizational culture cumbersome and also challenging to manage especially as populated line relationships are suggested to be weak in general as well as objective setting and also performance analysis is still done by the solid line manager. This implies that newcomers might shed clearness about their particular roles as well as purposes specifically as dotted line reporting does not maintain them in direct communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles although it had actually been guessed that the last would certainly take Krasnow's position came as an impact to her spirits. Lewis may have been capable and suitable for the task yet the fact that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the reason for Coles' resignation from solutions.

Fear & Job Instability: Worry as well as insecurity can be recognized as 2 significant problems that Lewis would certainly be taking care of especially as the merger has currently be terminated and two senior execs of the advertising division would be leaving. The entire duty of the department would certainly be dropping on Lewis's shoulders that would not just be in charge of brining about a cultural change yet would also need to prove herself in her brand-new function.

Incompatible Administration Design of Leader: Lewis's management style as well as its incompatibility with the marketing division's function can additionally be seen as an OB challenge especially as she has been used to handling problems in the operations division where employees are taught to focus on processes and get them. The marketing division on the other hand can be viewed as a group of individuals who are used to being nurtured by Krasnow that focused a lot more on outcome than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between 3 divisions, advertising, merchandizing and also procedures specifically over the allotment of the marketing mix can be recognized as one more OB concern. Although the marketing department does not share the same vision as the various other two divisions concerning the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing as well as procedures departments do not agree over the advertising and marketing mix allocation among each other either.

Disintegration in Advertising Department: Disintegration between the marketing and advertising departments can be identified as another OB problem which might require more attention. The truth that the marketing and advertising sections in the marketing department are disconnected is preventing both departments from acquiring from each various other's experience and also knowledge. Integration of advertising with retailing and procedures would certainly come to be harder if the advertising and marketing department itself is disintegrated which can be another potential OB concern.

Jiuding Capital Private Equity Firm With Chinese Characteristics B Analysis

Various concepts have actually been made use of to explain the situations to get additional quality concerning the circumstance handy.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors believe that juniors are easy and also lazy, have little ambition and withstand modification. The situation at Jiuding Capital Private Equity Firm With Chinese Characteristics B is not completely adhering to Theory X, it can be seen that brand-new hires are finding this setting instead stressful which might ultimately lead to a greater inclination of the administration in the direction of Concept X. Even while analyzing Lewis's management style, concept X may have been appropriate in the operations department to some level yet the Advertising division would certainly need reliance on Theory Y in order to get the creative thinking and creativity from the groups.

Tuckman's Team effort Theory: Regarding Lewis's worry regarding bringing consistency between the marketing and advertising department is concerned, this would initially bring about conflict as gone over by Bruce Tuckman in his 'Synergy Concept'. (Tuckman, 1965). As per Tuckman's concept displayed in appendix 3, throughout the first stage of team advancement, people might not bond, as they are hectic finding their place in the team. By combining the advertising and marketing department's work, there may be the same first separate which can result in the second stage of 'storming' where the groups test each other. Nonetheless, it is only during the 3rd stage or 'norming' when they would come together to share suggestions before the group can bring about harmony in the 4th stage 'performing'.

Bridges' Transition Design: As per William Bridge's theory (appendix 4), people are fairly unpleasant with adjustment, which is obvious by the scenario at Jiuding Capital Private Equity Firm With Chinese Characteristics B The situation can be viewed as a normal course of life if is studied as per Bridge's theory where he describes that people undergo 3 phases of change when they experience adjustment. 'Closing, losing and also Releasing', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When people exist with adjustment, they get in phase one therefore there may be feelings like unhappiness, uncertainty, stress, temper, concern, denial and disorientation.The situation at the marketing division of Jiuding Capital Private Equity Firm With Chinese Characteristics B is comparable so Lewis can obtain comfortable with the idea that it is not remarkable actions. In the 2nd stage, there might be a demand to link the gap in between the new and also old society so Lewis might have to encounter this ordeal when Krasnow leaves. There may be reduced morale and also low productivity at this phase which ought to not be taken as a problem. It is throughout this stage that Lewis will have to give advice to the division to ensure that they can discover an orientation. It can be seen how Krasnow has actually already made this transition less complicated by making Lewis get associated with the department a year prior to his real separation. As per Bridges' Version, phase 3 will certainly bring about openness to learning, High power as well as dedication as people will embrace the change (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Hierarchy' (appendix 5) has discusses the relevance of 'security requires as being a lower level requirement of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel safe and secure and also out of risk' is at the 2nd degree of demands. Before a worker can be made to establish mentally, he needs to have his 'Physiological 'and 'Safety' needs met.

SWOT Analysis for Jiuding Capital Private Equity Firm With Chinese Characteristics B Case Study

Ramification of Analysis.

The OB analysis has checked out various concepts to recognize how to manage the existing scenario at hand. The adhering to 3 options have been suggested to assist Lewis handle the organizational obstacles in the advertising and marketing division. Each of these options has been suggested for relieving the change needed to bring the advertising and marketing department in line with the needs of the marketplace and for making the social modification that would certainly adhere to when the current leader leaves.

Combination of marketing and advertising functions. Dividing Adverting and Manufacturing functions. Combination of Marketing with Operations.

Evaluation of Alternatives.

Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merging days has knowledge in business-to-business marketing along with firm and also retail advertising experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for marketing to handle both marketing and advertising and marketing features.

The benefit of this strategy is that it will certainly incorporate both functions while reducing the demand for working with an additional resource for advertising. Lewis would certainly be heading the advertising and marketing division and in any case her replacement would certainly be needed for the current duty that she is executing. The downside of this option is that exterior hiring might produce resentment from inner employees that may be considering the setting of EVP after Lewis takes over Krasnow's placement.

Separating Adverting and also Production: Provided the competitive pressures and high quality job needed from the marketing company, it is recommended that Lewis should allow the production unit to be a different function from the marketing unit. Considering that the majority of advertising and marketing firms had these 2 functions as separate units, it makes more sense to adhere to the norm.

Integration of Advertising And Marketing with Procedures: Considering that Lewis is currently looking after the marketing and operations divisions at the same time; it makes sense to integrate both features because she has actually been effectively taking care of both ends. The fact that both departments already have significant distinctions over allowance of sources recommends that this assimilation may be able to produce harmony specifically as Lewis would be heading both ends.However there are different negative aspects of this action specifically as it would place way too much worry over Lewis's shoulders. The truth that Lewis has to adapt her administration style for the advertising department recommends that these 2 departments would certainly be culturally varied. Along with this, Lewis might not be able to apply one kind of management style to both divisions which might cause inefficiency in either among both functions.


An evaluation of the 3 choices indicates that assimilation of advertising and procedures would certainly not be a practical step due to the substantial distinctions between the two divisions in spite of the truth that currently Lewis is managing both. While separation of the manufacturing function may have been a positive move for the marketing department, the truth that it would certainly imply putting a 3rd feature under Lewis's wing indicates this must be prevented.

Action Plan.
Lewis will certainly take control of the function of EVP Advertising and marketing after Krasnow leaves.

Marketing and advertising features would certainly be merged.

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

Manufacturing feature will certainly stay part of marketing under advertising feature.

Lewis will certainly separate herself from operations.

An autonomous leadership design with worker empowerment will be utilized in advertising and marketing division.

Open door plan and also emphasis on cross departmental interaction will be focused on eliminating discord.

Backup strategy.

If the integration does not work out as planned, a contingency strategy would certainly comply with which would certainly divide the manufacturing feature 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 division without an SVP. Because case the manufacturing feature will certainly be separated by placing it under an SVP manufacturing.