Khosla Ventures Biofuels Strategy Case Study Help


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Khosla Ventures Biofuels Strategy Case Study Solution

Background and Facts

Khosla Ventures Biofuels Strategy a workplace materials merchant for little and also moderate sized organisations has actually recently been involved in planning for a merger with its competitor Home Deport, which has influenced effectiveness degrees in departmentswith the senior manager associated with lawful complications presented by the federal Trade Payment. With the Marketing Head advancing the news of his departure from the company in one year, Jeannie Lewis, the current head of operations has been asked to take the function in the near future. With challenges in the type of a possible social modification as well as low worker morale, the organization needs a complete reengineering initiative at the marketing division.

Trouble Declaration
Porter's 5 Forces Analysis
The potential social change at the marketing division of Khosla Ventures Biofuels Strategy is increasing unpredictability in the workplace bring about numerous challenges for the Jeannie Lewis that would certainly be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting strategic choices given that Stapes Inc. had to abandon its strategies of merging with Office Deport after the Federal Profession Payment's intervention at the same time. Provided the reality that the store has an international existence with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries might be able to impact efficiency or calculated goals. Federal Trade Commission's antitrust match versus the merger used up beneficial time of the organization's elderly monitoring recommending that 'political' factors can have serious ramifications for an international business.

Economic Factors: Financial factors such as the development of small businesses in the worldwide circumstance recommend that Khosla Ventures Biofuels Strategy is thriving in an atmosphere where there is possible growth of services. Truth that shop clients are mostly looking for office products for house offices recommends that the market has a climbing fad of entrepreneurs and also home based organisations.

Social factors: Social patterns in the economic climate show that consumers are trying to find comfort along with appealing rates. Market research demonstrates how the client for Khosla Ventures Biofuels Strategy does not have awareness about locating options which can supply a combination of comfort and also inexpensive.

Technological factors: Innovation plays a crucial function in Khosla Ventures Biofuels Strategy's business technique particularly as the organization is piloting Technology facilities which would offer modern technology sales and support in the kind of memory upgrades, outer installments. (Recap of INSECT in appendix 2).

OB Issues and also Manifestations.

Numerous underlying Organizational Habits problems can be seen in Khosla Ventures Biofuels Strategy's case as highlighted in this section.

Concerns about cultural adjustment: There is apprehension regarding a cultural modification that would occur as soon as Todd Krasnow leaves from his position as the Exec Vice Head Of State of Advertising with the majority of the team member currently showing unhappiness over this potential step. This expected modification has produced anxiety in the work environment which has actually been paired with the previous tension of preparing the company for a prospective merger with Residence Deport.
Pest Analysis
Demanding Job Atmosphere for Newcomers: There is shortage of workers that can match the difficult atmosphere of a fast-paced organization. Not only does this lead to trouble in discovering the right individuals, it puts tension on new hires as can not endure the rate and also pressure that the company expects them to bear.

Dual Reporting Lines: Newcomers locate this business society difficult as well as hard to manage particularly as populated line partnerships are indicated to be weak as a whole and also unbiased setting and efficiency analysis is still done by the solid line manager. This indicates that newcomers might lose clearness concerning their corresponding functions and also purposes especially as populated line reporting does not maintain them in direct interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles although it had actually been hypothesized that the latter would certainly take Krasnow's setting came as an impact to her morale. Lewis might have been qualified and also proper for the job however the fact that Kransnow's separation would make Coles a straight record to Lewis might have been the reason for Coles' resignation from solutions.

Concern & Job Instability: Fear and insecurity can be recognized as two significant problems that Lewis would be dealing with especially as the merger has actually currently be terminated and also 2 elderly execs of the advertising and marketing department would certainly be leaving. The entire responsibility of the division would certainly be dropping on Lewis's shoulders that would certainly not just be in charge of brining regarding a cultural modification however would certainly likewise have to verify herself in her brand-new role.

Inappropriate Management Design of Leader: Lewis's management design as well as its conflict with the marketing department's function can additionally be viewed as an OB obstacle especially as she has been utilized to handling problems in the procedures division where personnel are taught to concentrate on procedures and also obtain them right. The advertising department on the various other hand can be viewed as a group of people that are utilized to being nurtured by Krasnow that concentrated extra on outcome than processes.

Interdepartmental Disagreements: Interdepartmental arguments between three departments, advertising and marketing, merchandizing and operations specifically over the appropriation of the advertising and marketing mix can be determined as one more OB problem. Although the advertising division does not share the same vision as the various other 2 divisions regarding the aloocation of the advertising and marketing mix twoards promos as well as advertsing, the merchandizing and procedures divisions do not agree over the marketing mix appropriation amongst each other either.

Disintegration in Advertising And Marketing Department: Disintegration in between the marketing and advertising departments can be determined as another OB problem which could require further interest. The fact that the marketing and advertising sections in the advertising and marketing department are disconnected is preventing both divisions from getting from each other's experience and expertise. Combination of advertising with merchandising as well as operations would certainly become more difficult if the marketing department itself is disintegrated which can be another possible OB issue.

Khosla Ventures Biofuels Strategy Analysis

Various concepts have been made use of to discuss the conditions to get further clearness concerning the circumstance available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, a lot of managers think that subordinates are passive and careless, have little aspiration and also resist adjustment. The tough variation of this concept stressed coercion, tight controls, hazards and penalties. Over time it generates reduced productivity, refined sabotage as well as competition (Deal, 2003). Although the circumstance at Khosla Ventures Biofuels Strategy is not entirely following Concept X, it can be seen that new hires are discovering this environment rather demanding which may ultimately bring about a better inclination of the monitoring towards Concept X. According to McGregor's supported sight, which he called Theory Y, the important job of the monitoring is to set up business problems to ensure that people can accomplish their own objectives best by directing their initiatives towards business incentives. If individuals find no fulfillment in their work, the management would have little option but to depend on concept X and outside control (Offer, 2003). Even while examining Lewis's monitoring style, concept X may have appropriated in the procedures department somewhat yet the Advertising and marketing department would certainly require reliance on Theory Y in order to get the creative thinking and creativity from the teams.

Tuckman's Teamwork Concept: As far as Lewis's problem regarding bringing consistency in between the advertising and advertising and marketing department is worried, this would initially lead to conflict as reviewed by Bruce Tuckman in his 'Teamwork Theory'. By combining the advertising and advertising and marketing division's job, there might be the same preliminary detach which can lead to the second phase of 'storming' where the teams challenge one another.

When individuals are offered with change, they enter stage one as well as so there might be emotions like sadness, unpredictability, irritation, anger, anxiety, rejection and also disorientation.The scenario at the advertising department of Khosla Ventures Biofuels Strategy is comparable so Lewis can obtain comfortable with the concept that it is not amazing actions. It is throughout this stage that Lewis will have to offer advice to the department so that they can locate a sense of instructions. It can be seen exactly how Krasnow has currently made this change much easier by making Lewis get included in the division a year before his actual departure.
Vrio Analysis
Maslow's Need hierarchy: The OB problem related to insecurity at the work environment has actually been caused to start with by the change in management as well as second of all by the fact that the merger will no more be started. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has discusses the importance of 'security requires as being a lower degree need of a human for triggering inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to really feel safe and secure as well as untouched' is at the 2nd level of requirements. Prior to an employee can be made to establish psychologically, he needs to have his 'Physiological 'and 'Safety' needs satisfied. This suggests that unless the employees are made to really feel protected about their present employment standing in Khosla Ventures Biofuels Strategy they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Khosla Ventures Biofuels Strategy Case Study

Ramification of Analysis.

The OB analysis has checked out different concepts to understand exactly how to deal with the present situation handy. The adhering to three choices have been suggested to aid Lewis deal with the business challenges in the advertising and marketing department. Each of these choices has been recommended for reducing the shift needed to bring the marketing department according to the requirements of the market and also for making the cultural adjustment that would certainly comply with when the present leader leaves.

Combination of advertising and marketing functions. Dividing Adverting and also Manufacturing features. Assimilation of Marketing with Workflow.

Assessment of Alternatives.

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

The benefit of this technique is that it will certainly incorporate both features while lowering the need for employing an added source for advertising and marketing. Lewis would certainly be heading the advertising and marketing division and in any type of case her substitute would certainly be required for the existing function that she is doing. The drawback of this choice is that exterior hiring may cause resentment from interior personnel that might be eying the position of EVP after Lewis takes control of Krasnow's placement.

Separating Adverting as well as Manufacturing: Provided the competitive pressures as well as top quality work called for from the advertising agency, it is suggested that Lewis must permit the production system to be a different function from the marketing system. Considering that many ad agency had these two features as separate devices, it makes more sense to adhere to the norm. Along with this, both features might be able to concentrate on their core activates extra effectively. Nonetheless, the drawback of this strategy would be that added expenses would need to be birthed for setting up separate production features. Along with this, a manufacturing head might have to be employed which might increase expenses for the organization.

Integration of Advertising And Marketing with Operations: Since Lewis is currently taking treatment of the advertising as well as operations departments simultaneously; it makes feeling to integrate the 2 functions since she has been effectively taking treatment of both ends. The truth that Lewis has to adapt her monitoring design for the advertising and marketing department suggests that these 2 departments would certainly be culturally diverse.


An evaluation of the three choices suggests that combination of advertising and also procedures would certainly not be a practical action due to the vast differences in between the two departments in spite of the truth that currently Lewis is handling both. While splitting up of the manufacturing feature may have been a beneficial relocation for the advertising and marketing department, the fact that it would certainly suggest placing a third function under Lewis's wing implies this ought to be prevented.

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

Advertising and Marketing features would be merged.

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

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

Lewis will separate herself from operations.

A democratic management style with staff member empowerment will certainly be utilized in advertising and marketing division.

Open up door plan and also emphasis on cross departmental communication will certainly be aimed at removing disharmony.

Contingency plan.

If the integration does not work out as intended, a backup strategy would adhere to which would certainly separate the production function from the marketing feature to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain hired, Lewis will certainly be heading the advertising and marketing department without an SVP. Because case the production function will definitely be divided by placing it under an SVP manufacturing.