Note On Distribution Of Venture Investments Case Study Solution


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Note On Distribution Of Venture Investments Case Study Solution

Background and Facts

Note On Distribution Of Venture Investments a workplace supplies seller for little and moderate sized businesses has actually recently been associated with planning for a merging with its rival Home Deport, which has actually influenced efficiency degrees in departmentswith the elderly supervisor associated with legal issues presented by the federal Profession Payment. With the Advertising and marketing Head advancing the information of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has been asked to take the duty in the near future. With difficulties in the type of a prospective social modification as well as low employee spirits, the organization wants a complete reengineering initiative at the advertising and marketing division.

Problem Statement
Porter's 5 Forces Analysis
The possible social change at the marketing division of Note On Distribution Of Venture Investments is raising uncertainty in the workplace resulting in different challenges for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in affecting critical choices given that Stapes Inc. needed to abandon its plans of combining with Office Deport after the Federal Profession Compensation's intervention in the process. Offered the reality that the store has an international visibility with branches in UK, UNITED STATES, Canada as well as Germany, political consider each of these nations might be able to impact performance or tactical goals. Federal Profession Commission's antitrust fit versus the merging used up important time of the organization's elderly monitoring suggesting that 'political' factors can have major implications for a worldwide service.

Economic Factors: Financial factors such as the development of small companies in the global scenario recommend that Note On Distribution Of Venture Investments is flourishing in an atmosphere where there is possible development of companies. In addition to this, reality that store consumers are primarily seeking office supplies for office suggests that the market has a climbing pattern of business owners and also home based companies.

Social factors: Social fads in the economic situation reveal that clients are seeking convenience in addition to eye-catching rates. Market research demonstrates how the client for Note On Distribution Of Venture Investments lacks awareness about locating solutions which can supply a mix of comfort and also affordable.

Technological factors: Innovation plays a crucial function in Note On Distribution Of Venture Investments's business approach specifically as the organization is piloting Technology centers which would certainly offer innovation sales and also assistance in the form of memory upgrades, peripheral installations. (Recap of PEST in appendix 2).

OB Issues and also Effects.

A number of underlying Business Actions concerns can be seen in Note On Distribution Of Venture Investments's case as highlighted in this section.

Uneasiness about cultural change: There is concern concerning a social modification that would certainly happen when Todd Krasnow leaves from his placement as the Exec Vice President of Advertising And Marketing with the majority of the team member currently showing unhappiness over this prospective action. This expected modification has actually created tension in the office which has been combined with the previous tension of preparing the company for a prospective merging with Residence Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is shortage of personnel that can match the stressful atmosphere of a busy organization. Not only does this result in problem in finding the appropriate people, it places anxiety on brand-new hires as can not endure the pace and also stress that the company anticipates them to bear.

Twin Reporting Lines: Novices find this business society cumbersome and also hard to cope with especially as dotted line partnerships are implied to be weak generally and unbiased setting and also performance analysis is still done by the solid line manager. This implies that novices can lose clearness regarding their corresponding functions and also purposes particularly as populated line coverage does not keep them in straight interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had actually been hypothesized that the latter would take Krasnow's setting came as a strike to her spirits. Lewis may have been qualified and ideal for the work yet the fact that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the reason for Coles' resignation from solutions.

Fear & Work Instability: Concern and instability can be determined as two significant concerns that Lewis would certainly be managing specifically as the merging has actually now be cancelled and two senior execs of the advertising division would be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders that would not simply be in charge of brining concerning a social change yet would also have to show herself in her brand-new function.

Incompatible Administration Design of Leader: Lewis's monitoring design and its conflict with the advertising and marketing division's duty can also be seen as an OB challenge especially as she has been utilized to handling issues in the operations division where workers are taught to concentrate on procedures and obtain them. The marketing division on the various other hand can be seen as a team of individuals who are made use of to being nurtured by Krasnow that concentrated more on result than processes.

Interdepartmental Differences: Interdepartmental disputes in between three departments, advertising and marketing, merchandizing and procedures respectively over the appropriation of the marketing mix can be determined as another OB issue. Although the advertising department does not share the exact 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 also operations departments do not concur over the marketing mix allowance among one another either.

Fragmentation in Advertising Division: Disintegration between the advertising and marketing departments can be recognized as an additional OB issue which might need more focus. The reality that the marketing and advertising areas in the marketing department are detached is avoiding both departments from obtaining from each other's experience as well as expertise. Integration of advertising and marketing with merchandising and procedures would certainly become more difficult if the advertising and marketing department itself is disintegrated which can be another prospective OB concern.

Note On Distribution Of Venture Investments Analysis

Various theories have been used to discuss the circumstances to obtain further clarity concerning the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, most managers believe that staffs are easy and careless, have little passion as well as stand up to adjustment. The situation at Note On Distribution Of Venture Investments is not completely adhering to Concept X, it can be seen that new hires are finding this atmosphere instead difficult which might at some point lead to a greater disposition of the management towards Theory X. Even while assessing Lewis's management design, theory X may have been appropriate in the procedures department to some extent but the Advertising division would require reliance on Theory Y in order to obtain the creative thinking as well as originality from the teams.

Tuckman's Team effort Concept: Regarding Lewis's issue regarding bringing harmony in between the marketing and advertising division is concerned, this would originally bring about clash as reviewed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). Based on Tuckman's theory displayed in appendix 3, throughout the preliminary stage of team growth, individuals might not bond, as they are hectic locating their location in the team. By incorporating the marketing and advertising division's work, there may coincide first separate which could bring about the second phase of 'storming' where the groups challenge each other. It is just during the third stage or 'norming' when they would certainly come with each other to share ideas prior to the team can bring about synergy in the 4th phase 'executing'.

Bridges' Transition Version: Based On William Bridge's theory (appendix 4), individuals are fairly unpleasant with change, which is apparent by the situation at Note On Distribution Of Venture Investments The scenario can be viewed as a normal training course of life if is examined as per Bridge's theory where he explains that people go through 3 phases of transition when they experience modification. 'End, shedding and also Letting go', The Neutral Zone and also 'The New Starting' (Bridges, 2004). When people exist with modification, they go into phase one and so there might be feelings like sadness, unpredictability, disappointment, anger, concern, rejection and disorientation.The situation at the advertising and marketing department of Note On Distribution Of Venture Investments is similar so Lewis can get comfortable with the concept that it is not amazing behavior. In the 2nd phase, there may be a need to bridge the void in between the brand-new and old culture so Lewis may need to encounter this ordeal when Krasnow leaves. There might be low spirits and also reduced performance at this phase which should not be taken as a trouble. It is throughout this stage that Lewis will need to provide support to the division so that they can locate a sense of direction. It can be seen exactly how Krasnow has actually already made this shift less complicated by making Lewis get associated with the department a year prior to his actual departure. Based on Bridges' Version, stage three will certainly produce visibility to discovering, High power as well as commitment as individuals will certainly welcome the modification (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has discusses the relevance of 'safety and security needs as being a reduced level demand of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the need to really feel safe and secure as well as out of risk' is at the 2nd degree of demands. Prior to an employee can be made to develop psychologically, he requires to have his 'Physiological 'as well as 'Safety and security' needs fulfilled.

SWOT Analysis for Note On Distribution Of Venture Investments Case Study

Ramification of Analysis.

The OB analysis has actually looked at different theories to recognize just how to handle the current circumstance available. The following three choices have been recommended to aid Lewis manage the business challenges in the advertising department. Each of these alternatives has actually been proposed for relieving the shift required to bring the advertising and marketing department in line with the needs of the market and for making the cultural modification that would certainly follow once the present leader leaves.

Integration of advertising and marketing functions. Dividing Adverting and Manufacturing features. Combination of Advertising with Workflow.

Assessment of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis during the earlier merger days has know-how in business-to-business advertising and marketing along with agency and also retail advertising experience. As soon as Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising to manage both advertising and also advertising and marketing functions.

The advantage of this strategy is that it will integrate both functions while minimizing the demand for employing an additional resource for advertising and marketing. Along with this, Lewis would be heading the marketing department as well as regardless her replacement would certainly be required for the existing role that she is doing. The disadvantage of this option is that exterior hiring may produce animosity from inner employees that may be looking at the position of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting as well as Manufacturing: Offered the affordable pressures and high top quality work needed from the marketing firm, it is suggested that Lewis needs to permit the production unit to be a different function from the advertising unit. Since a lot of advertising and marketing companies had these two features as separate devices, it makes more sense to adhere to the standard.

Integration of Marketing with Operations: Because Lewis is currently dealing with the advertising as well as procedures departments all at once; it makes good sense to incorporate the two features because she has actually been effectively taking care of both ends. The truth that the two divisions currently have significant distinctions over allotment of resources suggests that this assimilation might have the ability to cause consistency specifically as Lewis would certainly be heading both ends.However there are numerous disadvantages of this move specifically as it would certainly put way too much problem over Lewis's shoulders. The truth that Lewis has to adapt her administration style for the marketing department suggests that these two divisions would certainly be culturally diverse. In addition to this, Lewis may not have the ability to apply one sort of leadership style to both divisions which might result in ineffectiveness in either one of both functions.


An analysis of the 3 alternatives indicates that assimilation of advertising and marketing and operations would certainly not be a practical action due to the vast differences between the two departments in spite of the truth that presently Lewis is managing both. While separation of the manufacturing feature may have been a desirable move for the marketing department, the fact that it would suggest placing a third function under Lewis's wing suggests this need to be stayed clear of.

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

Advertising and Marketing features would be combined.

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

Production function will stay component of marketing under marketing feature.

Lewis will certainly separate herself from operations.

An autonomous leadership style with employee empowerment will be used in marketing division.

Open door plan as well as emphasis on cross department communication will certainly be aimed at removing disharmony.

Contingency strategy.

If the integration does not work out as prepared, a contingency strategy would follow which would separate the manufacturing feature from the advertising function to lower the load on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will be heading the advertising and marketing division without an SVP. Because case the manufacturing feature will absolutely be divided by placing it under an SVP production.