Background and Facts
Khosla Ventures Biofuels Strategy a workplace materials store for small and also moderate sized companies has actually lately been associated with preparing for a merger with its competitor Residence Deport, which has impacted effectiveness degrees in departmentswith the senior manager involved in legal issues presented by the federal Trade Commission. With the Marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the duty in the future. With obstacles in the type of a potential cultural adjustment and low staff member morale, the organization is in need of a complete reengineering effort at the advertising and marketing division.Issue Declaration
The prospective cultural adjustment at the advertising department of Khosla Ventures Biofuels Strategy is increasing unpredictability in the workplace bring about different difficulties for the Jeannie Lewis who would be replacing the head of the department in one year. nalysis
PEST analysis
Political Factors: Political factors play a major duty in influencing calculated choices because Stapes Inc. had to desert its strategies of merging with Office Deport after the Federal Trade Compensation's intervention in the process. Provided the fact that the shop has an international existence with branches in UK, USA, Canada as well as Germany, political consider each of these nations may have the ability to influence efficiency or tactical goals. Federal Trade Payment's antitrust fit versus the merger took up important time of the organization's elderly administration recommending that 'political' factors can have severe effects for a worldwide organisation.
Economic Factors: Financial factors such as the introduction of small companies in the global situation recommend that Khosla Ventures Biofuels Strategy is prospering in an atmosphere where there is potential development of organisations. Along with this, reality that shop clients are mainly looking for workplace materials for office recommends that the marketplace has a rising pattern of business owners and home based businesses.
Social factors: Social trends in the economic climate show that clients are looking for benefit in addition to attractive costs. Marketing research demonstrates how the client for Khosla Ventures Biofuels Strategy does not have awareness regarding locating services which can offer a mix of convenience as well as low costs.
Technical factors: Innovation plays a crucial function in Khosla Ventures Biofuels Strategy's business approach particularly as the organization is piloting Technology centers which would certainly offer innovation sales and also assistance in the form of memory upgrades, peripheral setups. (Recap of BUG in appendix 2).
OB Issues as well as Effects.
A number of underlying Organizational Behavior problems can be seen in Khosla Ventures Biofuels Strategy's case as highlighted in this area.
Apprehensions regarding cultural change: There is worry regarding a cultural change that would happen as soon as Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising And Marketing with a lot of the personnel currently revealing unhappiness over this potential action. This predicted change has developed tension in the work environment which has actually been paired with the previous stress and anxiety of preparing the firm for a potential merging with Residence Deport.
Demanding Work Setting for Newcomers: There is scarcity of employees that can match the difficult atmosphere of a hectic organization. Not only does this cause problem in locating the appropriate people, it places stress on new hires as can not withstand the speed and also pressure that the organization expects them to birth.
Twin Coverage Lines: Beginners locate this organizational culture cumbersome and hard to manage especially as dotted line partnerships are indicated to be weak as a whole and objective setup and also efficiency evaluation is still done by the strong line manager. This indicates that beginners could shed clarity about their corresponding duties as well as goals particularly as populated line reporting does not keep them in direct communication with the solid line supervisors.
Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles even though it had actually been speculated that the latter would take Krasnow's position came as a strike to her spirits. Lewis might have been qualified and also ideal for the work however the fact that Kransnow's separation would make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.
Worry & Job Instability: Fear and instability can be identified as two significant concerns that Lewis would be handling specifically as the merger has now be cancelled and also two senior execs of the advertising department would certainly be leaving. The whole responsibility of the department would certainly be falling on Lewis's shoulders that would certainly not simply be in charge of brining concerning a cultural adjustment yet would likewise need to show herself in her brand-new role.
Incompatible Monitoring Style of Leader: Lewis's management design and its conflict with the marketing division's function can likewise be seen as an OB challenge particularly as she has actually been made use of to taking care of issues in the procedures department where workers are instructed to focus on procedures and also get them. The marketing department on the various other hand can be viewed as a team of people who are utilized to being supported by Krasnow who concentrated a lot more on output than procedures.
Interdepartmental Differences: Interdepartmental disputes in between 3 divisions, advertising and marketing, merchandizing as well as operations respectively over the allowance of the advertising and marketing mix can be determined as an additional OB issue. The advertising and marketing division does not share the same vision as the various other 2 departments concerning the aloocation of the advertising mix twoards promos as well as advertsing, the merchandizing as well as operations departments do not concur over the marketing mix allowance amongst one another either.
Fragmentation in Advertising And Marketing Department: Fragmentation between the advertising and marketing divisions can be recognized as an additional OB concern which could need more interest. The fact that the marketing and advertising areas in the advertising division are disconnected is protecting against both departments from obtaining from each other's experience and also experience. Integration of marketing with retailing and also operations would certainly become harder if the advertising and marketing division itself is degenerated which can be another potential OB issue.
Khosla Ventures Biofuels Strategy Analysis
Various concepts have been used to describe the scenarios to get further clarity regarding the scenario handy.
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, many supervisors believe that subordinates are passive and lazy, have little aspiration and also stand up to change. The tough variation of this concept stressed threat, limited controls, threats and penalties. Over time it produces reduced efficiency, refined sabotage as well as rivalry (Bargain, 2003). The situation at Khosla Ventures Biofuels Strategy is not completely adhering to Concept X, it can be seen that new hires are finding this setting instead difficult which might eventually lead to a better inclination of the monitoring towards Concept X. According to McGregor's supported sight, which he called Concept Y, the essential task of the management is to arrange organizational problems to ensure that people can achieve their own objectives best by guiding their initiatives in the direction of organizational benefits. If people discover no fulfillment in their job, the management would certainly have little choice however to rely upon theory X and external control (Bargain, 2003). Also while evaluating Lewis's administration style, concept X might have been suitable in the procedures department to some extent yet the Advertising and marketing department would certainly need dependence on Theory Y in order to get the imagination and creativity from the teams.
Tuckman's Synergy Concept: As far as Lewis's concern about bringing harmony between the marketing and advertising division is concerned, this would initially result in clash as gone over by Bruce Tuckman in his 'Teamwork Theory'. (Tuckman, 1965). As per Tuckman's concept shown in appendix 3, during the initial stage of team advancement, people may not bond, as they are busy finding their location in the team. By integrating the advertising and marketing department's work, there might coincide first detach which could bring about the second stage of 'storming' where the groups test each other. It is just throughout the 3rd phase or 'norming' when they would come with each other to share concepts prior to the group can bring around synergy in the fourth stage 'doing'.
When people are presented with change, they go into phase one as well as so there might be emotions like unhappiness, unpredictability, disappointment, anger, anxiety, denial and disorientation.The circumstance at the marketing department of Khosla Ventures Biofuels Strategy is comparable so Lewis can obtain comfortable with the suggestion that it is not amazing behavior. It is throughout this stage that Lewis will certainly have to give assistance to the division so that they can discover a feeling of direction. It can be seen how Krasnow has actually already made this shift less complicated by making Lewis get involved in the division a year prior to his actual separation.
Abraham Maslow in his Concept of 'Needs Pecking order' (appendix 5) has goes over the importance of 'safety requires as being a lower degree requirement of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel secure and also out of risk' is at the 2nd level of needs. Before a worker can be made to create emotionally, he requires to have his 'Physical 'and 'Safety and security' requires met.
SWOT Analysis for Khosla Ventures Biofuels Strategy Case Study
Implication of Analysis.
The OB analysis has looked at different theories to comprehend how to manage the present situation available. The following three choices have been proposed to assist Lewis manage the business challenges in the advertising division. Each of these options has been proposed for alleviating the shift required to bring the advertising and marketing department in line with the needs of the market and also for making the social modification that would follow as soon as the existing leader leaves.
Combination of advertising and marketing features. Dividing Adverting and Manufacturing features. Integration of Advertising with Procedures.
Assessment of Alternatives.
Combination of Marketing & Marketing Functions: The in-house advertising firm of Khosla Ventures Biofuels Strategy is already stamina for the organization in terms of conserving up on overheads related to marketing and promo. Given that no brand-new recruitment has been done after Bridget Cole's departure with the coverage line being straight appointed to Krasnow for the advertising and marketing function, this is a desirable chance for integrating the advertising and marketing features. Judith Shapiro that has actually earlier been interviewed by Lewis throughout the earlier merger days has know-how in business-to-business advertising along with agency as well as retail marketing experience. When Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to manage both advertising and marketing functions.
The benefit of this approach is that it will certainly integrate the two features while reducing the need for employing an additional resource for advertising. Lewis would be heading the marketing department as well as in any type of case her replacement would certainly be needed for the current role that she is carrying out. The disadvantage of this choice is that exterior hiring may cause animosity from internal employees who might be considering the position of EVP after Lewis takes control of Krasnow's position.
Separating Adverting as well as Production: Offered the affordable pressures and also high top quality work called for from the advertising firm, it is suggested that Lewis should permit the manufacturing system to be a different feature from the advertising and marketing device. Considering that the majority of advertising companies had these 2 functions as separate systems, it makes more sense to follow the standard.
Assimilation of Marketing with Procedures: Since Lewis is currently taking care of the advertising and marketing and procedures departments simultaneously; it makes sense to incorporate the two functions given that she has actually been successfully caring for both ends. The truth that both departments already have major differences over allotment of sources recommends that this integration might be able to produce consistency particularly as Lewis would be heading both ends.However there are various drawbacks of this relocation particularly as it would certainly put too much problem over Lewis's shoulders. The reality that Lewis has to adapt her administration design for the advertising and marketing division suggests that these two departments would be culturally varied. In addition to this, Lewis might not be able to use one sort of leadership style to both departments which can lead to inadequacy in either one of the two functions.
Suggestion.
An assessment of the 3 options suggests that integration of advertising and marketing as well as procedures would certainly not be a possible action due to the vast differences between the two departments despite the truth that currently Lewis is taking care of both. While splitting up of the production feature may have been a positive step for the advertising department, the fact that it would imply placing a third function under Lewis's wing suggests this ought to be prevented.
Activity Plan.
Lewis will take control of the duty of EVP Advertising after Krasnow leaves.
Marketing and advertising functions would be combined.
Judith Shapiro will be hired to take Lewis's area as SVP of marketing and advertising.
Production feature will stay part of marketing under marketing function.
Lewis will certainly separate herself from procedures.
An autonomous leadership design with employee empowerment will be made use of in marketing division.
Open door policy as well as emphasis on cross departmental communication will be aimed at removing discord.
Backup strategy.
If the combination does not exercise as planned, a contingency strategy would certainly adhere to which would divide the production feature from the advertising and marketing feature to reduce the load on the SVP of marketing and advertising. In case Judith Shapiro does not get hired, Lewis will certainly be heading the marketing division without an SVP. Because case the production feature will certainly be divided by putting it under an SVP production.