Online Music Case A Napster Faces The Music Starting A Revolution In The Music Business Case Study Solution


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Online Music Case A Napster Faces The Music Starting A Revolution In The Music Business Case Study Solution

Background and Facts

Online Music Case A Napster Faces The Music Starting A Revolution In The Music Business an office products merchant for small and average sized services has actually just recently been associated with preparing for a merging with its rival Residence Deport, which has actually impacted performance levels in departmentswith the elderly manager involved in legal issues put forth by the federal Profession Compensation. With the Advertising and marketing Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the present head of procedures has been asked to take the function in the future. With difficulties in the form of a possible social change as well as low staff member morale, the company is in need of a total reengineering effort at the marketing division.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural change at the marketing department of Online Music Case A Napster Faces The Music Starting A Revolution In The Music Business is enhancing unpredictability in the working environment leading to various challenges for the Jeannie Lewis who would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing tactical decisions since Stapes Inc. needed to desert its strategies of merging with Office Deport after the Federal Trade Payment's treatment at the same time. Given the truth that the store has a global visibility with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these countries might be able to affect performance or critical objectives. Federal Trade Compensation's antitrust suit against the merger occupied valuable time of the organization's senior administration recommending that 'political' factors can have major ramifications for an international company.

Economic Factors: Financial factors such as the appearance of small companies in the worldwide scenario suggest that Online Music Case A Napster Faces The Music Starting A Revolution In The Music Business is growing in an environment where there is potential growth of businesses. Along with this, reality that store clients are primarily trying to find office materials for office suggests that the marketplace has a rising fad of entrepreneurs and also home based organisations.

Social factors: Social fads in the economic climate show that clients are searching for comfort along with eye-catching rates. Marketing research shows how the consumer for Online Music Case A Napster Faces The Music Starting A Revolution In The Music Business does not have recognition concerning discovering services which can offer a combination of convenience as well as low costs.

Technical factors: Technology plays an essential function in Online Music Case A Napster Faces The Music Starting A Revolution In The Music Business's organisation approach especially as the organization is piloting Modern technology centers which would certainly provide innovation sales and support in the kind of memory upgrades, outer installations. (Summary of INSECT in appendix 2).

OB Issues as well as Manifestations.

Several underlying Organizational Actions problems can be seen in Online Music Case A Napster Faces The Music Starting A Revolution In The Music Business's case as highlighted in this area.

Apprehensions concerning cultural change: There is apprehension regarding a cultural change that would take place as soon as Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising with the majority of the staff members currently showing unhappiness over this possible relocation. This expected change has actually created stress in the office which has been coupled with the past tension of preparing the company for a prospective merging with Residence Deport.
Pest Analysis
Stressful Job Atmosphere for Newcomers: There is scarcity of employees that can match the demanding environment of a fast-paced company. Not just does this cause difficulty in finding the best individuals, it puts stress and anxiety on brand-new hires as can not stand up to the pace as well as pressure that the company anticipates them to bear.

Twin Reporting Lines: Newcomers find this organizational culture troublesome as well as challenging to handle particularly as populated line connections are indicated to be weaker as a whole and unbiased setup and efficiency evaluation is still done by the solid line manager. This means that newbies can shed quality regarding their particular duties and goals especially as dotted line coverage does not keep them in direct communication with the solid line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower as opposed to Bridget Coles even though it had been speculated that the last would take Krasnow's position came as a strike to her spirits. Lewis might have been capable and also suitable for the task however the truth that Kransnow's departure would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.

Anxiety & Job Insecurity: Fear and insecurity can be recognized as 2 significant worries that Lewis would be taking care of especially as the merger has currently be terminated as well as 2 senior executives of the advertising and marketing department would be leaving. The entire obligation of the department would certainly be falling on Lewis's shoulders who would not simply supervise of brining about a social adjustment but would certainly also need to confirm herself in her brand-new function.

Inappropriate Administration Style of Leader: Lewis's administration style as well as its conflict with the advertising division's function can likewise be viewed as an OB challenge particularly as she has been used to dealing with problems in the procedures department where workers are educated to concentrate on processes and also get them right. The advertising department on the various other hand can be seen as a team of people who are utilized to being supported by Krasnow who concentrated more on outcome than procedures.

Interdepartmental Differences: Interdepartmental differences between 3 divisions, advertising and marketing, merchandizing and also procedures specifically over the appropriation of the advertising mix can be determined as another OB issue. The advertising and marketing department does not share the exact same vision as the various other 2 divisions regarding the aloocation of the advertising and marketing mix twoards promotions as well as advertsing, the merchandizing and also procedures divisions do not agree over the marketing mix allocation among one another either.

Fragmentation in Marketing Department: Fragmentation between the advertising and marketing departments can be determined as one more OB issue which might require further attention. The truth that the advertising and marketing areas in the advertising department are separated is preventing both divisions from getting from each other's experience and also expertise. Combination of advertising and marketing with merchandising as well as operations would certainly come to be more difficult if the marketing division itself is broken down which can be one more potential OB worry.

Online Music Case A Napster Faces The Music Starting A Revolution In The Music Business Analysis

Numerous concepts have been made use of to describe the situations to obtain additional clearness regarding the scenario at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Concept X, many supervisors believe that staffs are passive and also lazy, have little passion and also stand up to change. The scenario at Online Music Case A Napster Faces The Music Starting A Revolution In The Music Business is not totally complying with Concept X, it can be seen that new hires are discovering this setting instead stressful which might at some point lead to a better disposition of the administration towards Theory X. Also while assessing Lewis's administration style, concept X may have been appropriate in the procedures division to some degree yet the Advertising and marketing division would certainly call for reliance on Concept Y in order to get the creativity as well as creativity from the groups.

Tuckman's Teamwork Theory: As far as Lewis's worry concerning bringing consistency between the marketing and advertising division is worried, this would at first lead to contrast as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). According to Tuckman's concept displayed in appendix 3, during the first phase of group advancement, people may not bond, as they are hectic locating their place in the group. By combining the marketing and advertising department's work, there might be the same preliminary detach which can lead to the 2nd stage of 'storming' where the groups challenge each other. It is only throughout the third phase or 'norming' when they would certainly come together to share ideas prior to the group can bring around harmony in the fourth stage 'executing'.

Bridges' Shift Version: Based On William Bridge's concept (appendix 4), individuals are rather unpleasant with change, which is noticeable by the scenario at Online Music Case A Napster Faces The Music Starting A Revolution In The Music Business The scenario can be seen as a normal course of life if is studied based on Bridge's theory where he describes that individuals go through 3 stages of change when they experience modification. 'Ending, losing and Letting go', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they go into phase one and so there may be feelings like despair, unpredictability, frustration, temper, worry, denial as well as disorientation.The scenario at the advertising and marketing division of Online Music Case A Napster Faces The Music Starting A Revolution In The Music Business is similar so Lewis can obtain comfortable with the suggestion that it is not amazing behavior. In the 2nd stage, there might be a need to connect the space between the new as well as old culture so Lewis may need to face this ordeal once Krasnow leaves. There might be low morale and also reduced productivity at this phase which ought to not be taken as a problem. It is throughout this phase that Lewis will certainly need to provide guidance to the department so that they can discover an orientation. It can be seen exactly how Krasnow has actually currently made this change simpler by making Lewis obtain involved in the department a year prior to his real departure. Based on Bridges' Version, stage 3 will cause openness to knowing, High power and also commitment as individuals will accept the adjustment (Bridges, 2004).
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has goes over the significance of 'protection needs as being a lower degree requirement of a human for triggering inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel safe and secure and out of danger' is at the 2nd degree of demands. Before an employee can be made to develop emotionally, he requires to have his 'Physiological 'and also 'Security' needs fulfilled.

SWOT Analysis for Online Music Case A Napster Faces The Music Starting A Revolution In The Music Business Case Study

Effects of Analysis.

The OB analysis has taken a look at numerous concepts to recognize just how to handle the current scenario handy. The following 3 alternatives have been suggested to help Lewis manage the business difficulties in the marketing division. Each of these options has actually been suggested for alleviating the transition required to bring the marketing department in accordance with the needs of the market as well as for making the cultural change that would follow when the existing leader leaves.

Integration of advertising and marketing functions. Separating Adverting and also Manufacturing features. Combination of Marketing with Operations.

Examination of Alternatives.

Judith Shapiro who has earlier been interviewed by Lewis during the earlier merging days has know-how in business-to-business advertising and marketing along with firm and retail marketing experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both advertising and advertising and marketing functions.

The benefit of this technique is that it will certainly integrate the two functions while decreasing the demand for employing an additional resource for marketing. Lewis would certainly be heading the marketing department and in any kind of case her substitute would certainly be required for the present duty that she is executing. The disadvantage of this option is that outside hiring might produce bitterness from interior personnel that may be considering the position of EVP after Lewis takes over Krasnow's position.

Separating Adverting and also Production: Given the affordable pressures and also high quality work called for from the advertising and marketing agency, it is advised that Lewis ought to enable the production system to be a different function from the marketing unit. Considering that the majority of advertising companies had these 2 features as different devices, it makes more sense to adhere to the standard.

Combination of Marketing with Operations: Given that Lewis is already taking care of the marketing as well as operations divisions all at once; it makes good sense to incorporate the two functions given that she has actually been successfully taking care of both ends. The fact that both divisions currently have significant distinctions over appropriation of resources recommends that this integration may have the ability to produce consistency specifically as Lewis would certainly be heading both ends.However there are various negative aspects of this move specifically as it would place excessive worry over Lewis's shoulders. The truth that Lewis needs to adjust her management design for the marketing division suggests that these two departments would certainly be culturally diverse. Along with this, Lewis may not be able to apply one type of leadership style to both divisions which could result in inadequacy in either among the two features.


An examination of the 3 alternatives indicates that integration of marketing as well as operations would certainly not be a practical relocation as a result of the large differences in between both departments although that currently Lewis is handling both. While separation of the production function may have been a beneficial action for the advertising division, the fact that it would mean putting a third feature under Lewis's wing indicates this ought to be stayed clear of too. The combination of the advertising division is the very best option in regards to getting the ideal arise from the department. An activity plan for this alternative is discussed below.

Action Plan.
Lewis will certainly take control of the function of EVP Marketing after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

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

Lewis will divide herself from operations.

An autonomous management design with worker empowerment will certainly be used in advertising and marketing division.

Open door policy and also emphasis on cross department communication will be focused on eliminating disharmony.

Backup strategy.

If the assimilation does not work out as planned, a contingency plan would follow which would divide the manufacturing function from the advertising and marketing function to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will be heading the marketing department without an SVP. In that case the manufacturing feature will most definitely be separated by placing it under an SVP manufacturing.