Ktm Venture Capitalist Exit Case Study Help


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Ktm Venture Capitalist Exit Case Study Solution

Background and Facts

Ktm Venture Capitalist Exit an office materials store for tiny and also moderate sized organisations has actually just recently been associated with planning for a merging with its competitor Residence Deport, which has actually affected performance levels in departmentswith the senior manager involved in lawful difficulties presented by the government Profession Payment. With the Marketing Head advancing the news of his departure from the company in one year, Jeannie Lewis, the current head of procedures has actually been asked to take the function in the near future. With obstacles in the form of a possible cultural change as well as low worker spirits, the organization needs a complete reengineering effort at the marketing department.

Issue Statement
Porter's 5 Forces Analysis
The prospective cultural change at the advertising division of Ktm Venture Capitalist Exit is raising unpredictability in the workplace bring about numerous 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 function in impacting strategic decisions because Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Trade Payment's intervention at the same time. Given the fact that the store has an international presence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries may be able to affect efficiency or calculated goals. Federal Trade Compensation's antitrust match versus the merging used up important time of the organization's elderly management recommending that 'political' factors can have serious ramifications for a global organisation.

Economic Factors: Economic factors such as the appearance of local business in the global situation suggest that Ktm Venture Capitalist Exit is thriving in an environment where there is prospective development of services. Along with this, fact that store clients are primarily trying to find office products for office recommends that the marketplace has an increasing trend of entrepreneurs and home companies.

Social factors: Social patterns in the economy reveal that clients are searching for benefit along with attractive rates. Market research demonstrates how the customer for Ktm Venture Capitalist Exit does not have understanding regarding discovering options which can supply a mix of benefit and also low costs.

Technological factors: Modern technology plays an essential role in Ktm Venture Capitalist Exit's organisation technique particularly as the company is piloting Technology centers which would provide innovation sales as well as assistance in the kind of memory upgrades, outer setups. (Recap of PEST in appendix 2).

OB Issues and Effects.

Numerous underlying Business Habits issues can be seen in Ktm Venture Capitalist Exit's case as highlighted in this area.

Apprehensions regarding social change: There is uneasiness concerning a cultural modification that would happen once Todd Krasnow leaves from his setting as the Exec Vice President of Marketing with a lot of the team member currently showing discontent over this prospective move. This predicted modification has developed tension in the workplace which has been combined with the past tension of preparing the company for a possible merging with House Deport.
Pest Analysis
Stressful Work Environment for Newcomers: There is lack of workers that can match the demanding environment of a hectic organization. Not only does this cause difficulty in locating the ideal people, it puts tension on new hires as can not withstand the pace and also stress that the company expects them to bear.

Double Coverage Lines: Beginners find this business culture difficult and also difficult to handle particularly as dotted line connections are meant to be weaker as a whole and also unbiased setting as well as efficiency analysis is still done by the strong line supervisor. This suggests that newbies can lose clarity about their corresponding roles as well as objectives specifically as populated line reporting does not keep them in direct interaction with the solid line supervisors.

Animosity From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower instead of Bridget Coles although it had actually been speculated that the latter would take Krasnow's setting came as a blow to her spirits. Lewis may have been capable and also appropriate for the task yet the reality that Kransnow's departure would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Work Insecurity: Anxiety and instability can be identified as two significant issues that Lewis would certainly be handling particularly as the merger has currently be terminated and 2 senior execs of the advertising department would be leaving. The entire responsibility of the department would be dropping on Lewis's shoulders who would not simply supervise of brining about a social change yet would certainly likewise have to confirm herself in her brand-new role.

Incompatible Management Design of Leader: Lewis's administration design and its incompatibility with the marketing division's duty can also be seen as an OB challenge especially as she has been utilized to dealing with problems in the procedures division where workers are educated to concentrate on procedures and get them. The advertising and marketing division on the various other hand can be viewed as a team of individuals that are used to being nurtured by Krasnow who focused a lot more on output than procedures.

Interdepartmental Arguments: Interdepartmental disputes between 3 divisions, advertising and marketing, merchandizing as well as procedures specifically over the allocation of the marketing mix can be identified as an additional OB concern. The advertising and marketing department does not share the very same vision as the various other 2 departments regarding the aloocation of the advertising and marketing mix twoards promotions and also advertsing, the merchandizing and operations divisions do not concur over the advertising mix appropriation amongst one another either.

Fragmentation in Advertising Department: Fragmentation between the marketing and advertising departments can be determined as an additional OB concern which might need additional focus. The reality that the advertising and marketing areas in the advertising and marketing division are detached is preventing both divisions from acquiring from each other's experience and also competence. Assimilation of advertising with retailing as well as procedures would become more difficult if the advertising department itself is broken down which can be another potential OB worry.

Ktm Venture Capitalist Exit Analysis

Various concepts have actually been used to discuss the situations to get further quality about the scenario at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most supervisors believe that subordinates are passive and also careless, have little aspiration and also stand up to change. The tough version of this theory highlighted coercion, tight controls, hazards as well as punishments. With time it creates low productivity, subtle sabotage as well as competition (Bargain, 2003). Although the scenario at Ktm Venture Capitalist Exit is not completely adhering to Concept X, it can be seen that new hires are locating this environment rather stressful which might at some point result in a better disposition of the administration in the direction of Concept X. Based on McGregor's promoted sight, which he called Theory Y, the necessary task of the monitoring is to organize business conditions to make sure that people can achieve their own goals best by routing their initiatives in the direction of business rewards. If individuals find no complete satisfaction in their job, the administration would certainly have little choice yet to rely upon theory X as well as external control (Deal, 2003). Even while analyzing Lewis's management style, concept X might have appropriated in the procedures division to some extent however the Advertising department would certainly need reliance on Theory Y so as to get the creative thinking and creativity from the teams.

Tuckman's Teamwork Theory: As far as Lewis's issue about bringing harmony in between the advertising and marketing and advertising and marketing division is worried, this would at first lead to clash as reviewed by Bruce Tuckman in his 'Synergy Concept'. By incorporating the advertising and marketing as well as marketing division's work, there may be the very same preliminary detach which can lead to the 2nd stage of 'storming' where the groups test one an additional.

Bridges' Shift Design: According To William Bridge's theory (appendix 4), individuals are rather uneasy with modification, which is evident by the situation at Ktm Venture Capitalist Exit The situation can be seen as a typical course of life if is examined based on Bridge's theory where he clarifies that people undergo 3 phases of shift when they experience modification. 'End, losing and Letting go', The Neutral Area as well as 'The New Starting' (Bridges, 2004). When individuals exist with change, they go into phase one therefore there might be emotions like sadness, uncertainty, aggravation, anger, concern, rejection and disorientation.The situation at the advertising division of Ktm Venture Capitalist Exit is comparable so Lewis can obtain comfy with the idea that it is not phenomenal behavior. In the 2nd stage, there might be a demand to bridge the space between the new and old society so Lewis might need to encounter this experience as soon as Krasnow leaves. There may be reduced morale and also low productivity at this stage which must not be taken as a setback. It is during this stage that Lewis will certainly need to provide support to the division to make sure that they can find a sense of direction. It can be seen just how Krasnow has already made this transition simpler by making Lewis obtain involved in the department a year prior to his actual departure. According to Bridges' Version, phase 3 will certainly bring about openness to knowing, High energy as well as dedication as people will accept the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Demands Hierarchy' (appendix 5) has goes over the significance of 'security needs as being a reduced level need of a human for causing inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to feel protected and out of danger' is at the second level of demands. Before a staff member can be made to create emotionally, he requires to have his 'Physiological 'and also 'Safety' needs satisfied.

SWOT Analysis for Ktm Venture Capitalist Exit Case Study

Effects of Analysis.

The OB analysis has considered various theories to recognize exactly how to cope with the current scenario handy. The complying with 3 options have been suggested to assist Lewis manage the business difficulties in the marketing division. Each of these alternatives has actually been proposed for relieving the shift needed to bring the marketing department in accordance with the needs of the marketplace as well as for making the cultural adjustment that would certainly adhere to once the current leader leaves.

Integration of advertising and marketing functions. Dividing Adverting and also Production features. Integration of Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro that has earlier been talked to by Lewis throughout the earlier merging days has expertise in business-to-business advertising and marketing along with firm as well as retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising and marketing to take care of both marketing and advertising and marketing features.

The advantage of this approach is that it will certainly incorporate the two features while minimizing the demand for hiring an extra resource for advertising and marketing. In addition to this, Lewis would certainly be heading the advertising and marketing department and regardless her replacement would be needed for the existing function that she is doing. The drawback of this alternative is that outside hiring may bring about resentment from inner employees who may be considering the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and Production: Given the affordable pressures and premium quality job required from the ad agency, it is advised that Lewis ought to allow the production unit to be a separate feature from the advertising device. Given that most ad agency had these 2 features as different devices, it makes more feeling to comply with the standard. Along with this, both functions may be able to concentrate on their core turns on a lot more efficiently. Nevertheless, the drawback of this approach would be that additional costs would have to be birthed for setting up different production features. In addition to this, a manufacturing head may have to be employed which could enhance overheads for the company.

Integration of Advertising And Marketing with Procedures: Because Lewis is already dealing with the advertising and also procedures departments at the same time; it makes good sense to incorporate the two features given that she has been successfully caring for both ends. The reality that the two departments already have major distinctions over allotment of sources recommends that this integration might have the ability to bring about consistency specifically as Lewis would be heading both ends.However there are various negative aspects of this relocation specifically as it would put excessive burden over Lewis's shoulders. The reality that Lewis has to adapt her management design for the advertising and marketing department recommends that these two departments would be culturally diverse. Lewis might not be able to use one kind of management style to both departments which could result in inadequacy in either one of the two features.


An assessment of the three choices suggests that combination of advertising and also procedures would certainly not be a possible step as a result of the substantial differences in between both departments despite the fact that presently Lewis is managing both. While separation of the manufacturing function might have been a favorable step for the advertising and marketing department, the fact that it would certainly indicate placing a 3rd function under Lewis's wing suggests this need to be stayed clear of also. The combination of the advertising division is the most effective alternative in terms of obtaining the ideal arise from the division. An activity plan for this choice is gone over below.

Activity Strategy.
Lewis will certainly take control of the duty of EVP Marketing after Krasnow leaves.

Marketing and advertising features would certainly be combined.

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

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

Lewis will divide herself from procedures.

A democratic leadership style with staff member empowerment will be used in advertising department.

Open up door plan and also focus on cross departmental interaction will be focused on eliminating dissonance.

Backup strategy.

If the combination does not exercise as prepared, a contingency strategy would comply with which would separate the manufacturing feature from the marketing function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing department without an SVP. In that case the production feature will absolutely be divided by positioning it under an SVP production.