Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry Case Study Solution


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Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry Case Study Analysis

Background and Facts

Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry an office products seller for little and average sized organisations has actually lately been involved in planning for a merging with its rival Home Deport, which has affected efficiency degrees in departmentswith the elderly supervisor involved in lawful problems put forth by the government Profession Commission. With the Marketing Head putting forward the information of his separation from the firm in one year, Jeannie Lewis, the existing head of operations has actually been asked to take the role in the future. With obstacles in the type of a possible cultural modification and low worker morale, the organization needs a total reengineering effort at the advertising department.

Issue Statement
Porter's 5 Forces Analysis
The possible social change at the advertising and marketing division of Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry is enhancing unpredictability in the workplace leading to different difficulties for the Jeannie Lewis that would be replacing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant role in impacting strategic choices because Stapes Inc. needed to desert its plans of combining with Office Deport after the Federal Trade Compensation's treatment in the process. Offered the truth that the shop has an international existence with branches in UK, UNITED STATES, Canada and Germany, political consider each of these nations might be able to impact performance or critical goals. Federal Trade Compensation's antitrust match versus the merger used up beneficial time of the company's senior administration suggesting that 'political' factors can have severe implications for an international business.

Economic Factors: Economic factors such as the development of local business in the worldwide scenario suggest that Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry is flourishing in an atmosphere where there is possible growth of businesses. Along with this, fact that shop customers are primarily looking for workplace materials for home offices suggests that the marketplace has a climbing pattern of business owners and home companies.

Social factors: Social fads in the economy show that clients are seeking convenience along with eye-catching costs. Marketing research demonstrates how the client for Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry does not have recognition concerning locating options which can offer a mix of ease as well as inexpensive.

Technical factors: Modern technology plays a crucial role in Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry's organisation strategy especially as the organization is piloting Modern technology facilities which would certainly use innovation sales as well as support in the kind of memory upgrades, peripheral installations. (Recap of INSECT in appendix 2).

OB Issues and also Manifestations.

A number of underlying Organizational Behavior issues can be seen in Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry's case as highlighted in this area.

Apprehensions regarding social adjustment: There is concern regarding a social modification that would certainly happen when Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with most of the employee currently revealing unhappiness over this prospective step. This anticipated adjustment has actually created stress and anxiety in the work environment which has actually been combined with the past tension of preparing the firm for a prospective merger with House Deport.
Pest Analysis
Stressful Task Environment for Newcomers: There is scarcity of workers that can match the difficult setting of a busy organization. Not just does this bring about problem in finding the best individuals, it puts tension on brand-new hires as can not hold up against the speed as well as pressure that the company anticipates them to birth.

Dual Reporting Lines: Newbies discover this organizational society difficult and difficult to handle especially as dotted line relationships are meant to be weaker as a whole and also unbiased setup and efficiency evaluation is still done by the solid line supervisor. This implies that newbies can lose clarity about their corresponding functions and also objectives specifically as dotted line reporting does not keep them in direct communication with the strong line managers.

Animosity From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor instead of Bridget Coles despite the fact that it had been hypothesized that the latter would certainly take Krasnow's setting came as a strike to her morale. Lewis may have been capable and also appropriate for the work however the fact that Kransnow's separation would certainly make Coles a direct record to Lewis may have been the factor for Coles' resignation from services.

Fear & Task Insecurity: Worry and also insecurity can be recognized as two major worries that Lewis would certainly be taking care of specifically as the merging has actually currently be cancelled as well as 2 elderly executives of the marketing division would certainly be leaving. The entire responsibility of the division would certainly be dropping on Lewis's shoulders who would not just supervise of brining concerning a cultural modification but would also have to confirm herself in her brand-new role.

Inappropriate Administration Design of Leader: Lewis's monitoring design as well as its incompatibility with the marketing department's function can additionally be seen as an OB difficulty particularly as she has actually been used to taking care of problems in the operations division where employees are educated to focus on procedures and obtain them. The advertising department on the other hand can be seen as a group of individuals that are utilized to being nurtured by Krasnow that focused extra on result than procedures.

Interdepartmental Arguments: Interdepartmental disagreements in between 3 divisions, advertising, merchandizing and procedures specifically over the allotment of the advertising and marketing mix can be identified as another OB concern. Although the advertising division does not share the exact same vision as the various other two departments concerning the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing and operations divisions do not concur over the advertising and marketing mix allotment among each other either.

Fragmentation in Advertising Division: Fragmentation between the advertising and marketing departments can be recognized as another OB concern which might need further focus. The reality that the advertising and marketing sections in the marketing department are separated is preventing both divisions from getting from each other's experience and also expertise. Assimilation of advertising with merchandising as well as operations would certainly come to be more difficult if the advertising and marketing department itself is disintegrated which can be an additional possible OB concern.

Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry Analysis

Numerous theories have actually been made use of to explain the circumstances to obtain additional quality regarding the situation available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Concept X, most supervisors believe that staffs are passive and also lazy, have little aspiration as well as withstand modification. The circumstance at Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry is not entirely following Theory X, it can be seen that brand-new hires are locating this atmosphere instead difficult which may eventually lead to a better disposition of the management in the direction of Theory X. Also while examining Lewis's administration style, theory X might have been appropriate in the operations department to some degree however the Advertising division would certainly require reliance on Concept Y in order to get the imagination as well as creativity from the groups.

Tuckman's Synergy Concept: As much as Lewis's concern about bringing harmony between the marketing and advertising and marketing division is worried, this would initially lead to contrast as gone over by Bruce Tuckman in his 'Teamwork Concept'. By combining the marketing as well as advertising and marketing division's job, there might be the very same preliminary disconnect which could lead to the 2nd stage of 'storming' where the groups challenge one another.

When people are provided with modification, they get in phase one as well as so there might be feelings like despair, unpredictability, irritation, temper, anxiety, denial and disorientation.The scenario at the advertising department of Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry is similar so Lewis can obtain comfortable with the idea that it is not remarkable actions. It is throughout this phase that Lewis will certainly have to provide guidance to the department so that they can locate a sense of direction. It can be seen just how Krasnow has actually already made this shift less complicated by making Lewis get involved in the department a year before his actual departure.
Vrio Analysis
Maslow's Need power structure: The OB problem pertaining to instability at the work environment has been triggered first of all by the modification in management as well as second of all by the fact that the merging will certainly no longer be launched. Abraham Maslow in his Concept of 'Requirements Hierarchy' (appendix 5) has discusses the relevance of 'safety requires as being a reduced degree demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see exactly how 'the demand to feel safe and also untouched' is at the second level of demands. Before an employee can be made to establish psychologically, he requires to have his 'Physical 'and also 'Safety' needs satisfied. This indicates that unless the workers are made to really feel protected regarding their present work condition in Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry Case Study

Ramification of Analysis.

The OB analysis has checked out numerous theories to understand exactly how to manage the present situation available. The adhering to 3 alternatives have been suggested to help Lewis handle the business difficulties in the marketing division. Each of these alternatives has been recommended for alleviating the change needed to bring the marketing department in accordance with the demands of the market and also for making the cultural change that would follow when the current leader leaves.

Assimilation of advertising and marketing functions. Dividing Adverting and Production features. Assimilation of Advertising And Marketing with Operations.

Analysis of Alternatives.

Integration of Marketing & Marketing Functions: The in-house advertising and marketing firm of Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry is currently toughness for the organization in terms of conserving up on overheads related to advertising and marketing and also promo. Considering that no new employment has been done after Bridget Cole's departure with the reporting line being straight appointed to Krasnow for the advertising and marketing feature, this is a desirable chance for integrating the marketing and advertising functions. Judith Shapiro who has earlier been talked to by Lewis during the earlier merger days has proficiency in business-to-business marketing together with company as well as retail marketing experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to take care of both advertising and marketing functions.

The benefit of this method is that it will incorporate both features while minimizing the need for employing an added source for advertising. Lewis would be heading the marketing department and also in any case her replacement would be needed for the current function that she is performing. The drawback of this option is that external hiring might cause animosity from inner employees that may be considering the setting of EVP after Lewis takes over Krasnow's placement.

Separating Adverting as well as Production: Offered the affordable pressures and excellent quality job needed from the advertising agency, it is recommended that Lewis must enable the production device to be a separate feature from the advertising and marketing unit. Since a lot of ad agency had these two features as separate units, it makes more feeling to follow the norm. In addition to this, both features may have the ability to focus on their core turns on much more successfully. However, the downside of this approach would be that added expenses would certainly have to be borne for setting up different production functions. Along with this, a manufacturing head may need to be hired which might increase overheads for the organization.

Assimilation of Advertising And Marketing with Workflows: Since Lewis is currently caring for the marketing and also operations divisions concurrently; it makes good sense to integrate both features considering that she has been efficiently caring for both ends. The reality that the two departments currently have significant distinctions over allocation of resources recommends that this integration might have the ability to cause harmony especially as Lewis would be heading both ends.However there are different drawbacks of this action especially as it would certainly place too much problem over Lewis's shoulders. The fact that Lewis has to adjust her administration design for the advertising and marketing division recommends that these two departments would certainly be culturally varied. Along with this, Lewis may not be able to apply one kind of leadership design to both divisions which can result in inefficiency in either one of both features.


An evaluation of the three alternatives suggests that integration of marketing as well as procedures would certainly not be a feasible step because of the huge differences in between both divisions although that presently Lewis is managing both. While separation of the manufacturing function may have been a desirable move for the marketing division, the truth that it would certainly suggest putting a third function under Lewis's wing means this need to be prevented as well. The combination of the advertising and marketing division is the most effective option in regards to obtaining the ideal results from the division. An activity plan for this option is gone over listed below.

Action Strategy.
Lewis will take control of the duty of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would certainly be combined.

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

Manufacturing function will certainly continue to be part of marketing under marketing function.

Lewis will separate herself from procedures.

A democratic management design with staff member empowerment will be used in advertising division.

Open up door policy and also focus on cross department communication will be focused on eliminating dissonance.

Contingency plan.

If the combination does not exercise as intended, a backup plan would comply with which would certainly separate the production function from the advertising feature to reduce the load on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising department without an SVP. In that case the manufacturing function will definitely be separated by placing it under an SVP manufacturing.