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


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

Background and Facts

Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry a workplace supplies merchant for small and average sized services has actually recently been involved in planning for a merger with its competitor Home Deport, which has actually impacted performance levels in departmentswith the senior manager involved in legal problems put forth by the federal Profession Commission. With the Advertising Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the existing head of procedures has been asked to take the function in the future. With obstacles in the kind of a potential social adjustment and also reduced employee morale, the organization requires a complete reengineering initiative at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising department of Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry is increasing uncertainty in the working environment causing various obstacles for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant function in influencing critical choices because Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Trade Compensation's treatment while doing so. Given the reality that the shop has an international visibility with branches in UK, USA, Canada as well as Germany, political factors in each of these nations may have the ability to influence efficiency or strategic goals. Federal Trade Compensation's antitrust fit against the merger occupied useful time of the company's elderly management suggesting that 'political' factors can have severe ramifications for a worldwide business.

Economic Factors: Economic factors such as the emergence of small companies in the global scenario suggest that Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry is prospering in a setting where there is prospective growth of businesses. Fact that store consumers are mostly looking for office products for house workplaces recommends that the market has an increasing trend of business owners and residence based companies.

Social factors: Social fads in the economic climate reveal that customers are trying to find convenience as well as eye-catching prices. Marketing research demonstrates how the customer for Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry lacks awareness regarding finding services which can offer a combination of ease as well as affordable.

Technological factors: Technology plays an important function in Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry's organisation technique especially as the company is piloting Technology facilities which would supply innovation sales as well as assistance in the form of memory upgrades, outer installations. (Recap of BUG in appendix 2).

OB Issues and also Manifestations.

Several underlying Business 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.

Worries concerning social modification: There is worry concerning a cultural change that would occur once Todd Krasnow leaves from his position as the Executive Vice President of Advertising with the majority of the staff members already revealing unhappiness over this potential move. This expected modification has created anxiety in the office which has been coupled with the past stress and anxiety of preparing the firm for a possible merger with Home Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is shortage of employees that can match the stressful atmosphere of a busy company. Not only does this result in trouble in discovering the right individuals, it places stress on brand-new hires as can not hold up against the pace and pressure that the organization anticipates them to birth.

Twin Coverage Lines: Novices locate this organizational society difficult and also difficult to manage particularly as dotted line partnerships are suggested to be weak generally as well as objective setup and also efficiency assessment is still done by the solid line supervisor. This indicates that newbies can shed quality regarding their corresponding roles and purposes especially as populated line reporting does not maintain them in direct communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor rather than Bridget Coles even though it had actually been hypothesized that the latter would certainly take Krasnow's position came as an impact to her morale. Lewis might have been capable and also ideal for the task however the truth that Kransnow's separation would make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Concern & Job Instability: Worry as well as instability can be recognized as 2 major worries that Lewis would certainly be dealing with especially as the merging has currently be terminated as well as two senior executives of the advertising and marketing department would certainly be leaving. The entire duty of the department would certainly be dropping on Lewis's shoulders who would not simply supervise of brining concerning a social change yet would certainly also have to confirm herself in her brand-new role.

Incompatible Management Style of Leader: Lewis's monitoring design and also its incompatibility with the advertising division's function can additionally be seen as an OB difficulty especially as she has been made use of to handling issues in the procedures department where workers are taught to focus on processes and also obtain them. The marketing department on the various other hand can be seen as a team of individuals who are made use of to being supported by Krasnow that focused much more on outcome than procedures.

Interdepartmental Differences: Interdepartmental disagreements between 3 departments, marketing, merchandizing as well as procedures specifically over the appropriation of the advertising and marketing mix can be recognized as one more OB worry. The advertising division does not share the same vision as the other 2 departments pertaining to the aloocation of the advertising mix twoards promos and advertsing, the merchandizing and also procedures divisions do not concur over the advertising and marketing mix allowance among one an additional either.

Fragmentation in Marketing Department: Fragmentation between the marketing and advertising departments can be determined as another OB issue which could need more interest. The fact that the marketing and advertising sections in the marketing department are separated is protecting against both divisions from obtaining from each other's experience and also experience. Assimilation of marketing with retailing and also procedures would come to be more difficult if the advertising and marketing department itself is degenerated which can be one more potential OB worry.

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

Various theories have actually been utilized to discuss the circumstances to get additional clarity concerning the circumstance available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that juniors are passive and careless, have little ambition and also resist adjustment. The situation at Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry is not completely following Concept X, it can be seen that brand-new hires are discovering this atmosphere instead difficult which might at some point lead to a better disposition of the management in the direction of Concept X. Also while examining Lewis's management style, concept X might have been ideal in the procedures department to some extent yet the Marketing department would certainly call for dependence on Theory Y in order to get the creativity and also originality from the groups.

Tuckman's Synergy Theory: As much as Lewis's problem about bringing harmony in between the advertising and marketing and also advertising and marketing department is concerned, this would initially lead to contrast as talked about by Bruce Tuckman in his 'Team effort Theory'. By integrating the marketing and also advertising and marketing department's job, there might be the very same preliminary detach which could lead to the 2nd phase of 'storming' where the groups test one another.

When individuals are presented with change, they go into stage one and also so there may be emotions like despair, unpredictability, irritation, temper, anxiety, rejection as well as disorientation.The situation at the advertising and marketing department of Online Music Case C The Napsterization Of Movies Take Home Lessons From The Music Industry is similar so Lewis can get comfy with the suggestion that it is not remarkable actions. It is during this phase that Lewis will have to offer support to the department so that they can find a sense of direction. It can be seen exactly how Krasnow has actually currently made this transition easier by making Lewis get involved in the division a year prior to his actual separation.
Vrio Analysis
Abraham Maslow in his Concept of 'Requirements Power structure' (appendix 5) has discusses the importance of 'safety needs as being a reduced degree demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the need to really feel safe and secure and out of risk' is at the second level of requirements. Before a worker can be made to create mentally, he requires to have his 'Physical 'as well as 'Safety' requires fulfilled.

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

Effects of Analysis.

The OB analysis has actually looked at various concepts to comprehend how to handle the present scenario at hand. The adhering to three alternatives have been suggested to help Lewis deal with the business challenges in the marketing division. Each of these choices has been recommended for easing the transition required to bring the advertising division according to the demands of the market as well as for making the social change that would comply with as soon as the current leader leaves.

Integration of advertising and marketing functions. Separating Adverting and Production features. Integration of Advertising And Marketing with Operations.

Evaluation of Alternatives.

Assimilation of Advertising And Marketing & Marketing Functions: The internal 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 company in terms of conserving up on expenses connected to advertising and marketing as well as promo. Considering that no brand-new employment has been done after Bridget Cole's separation with the coverage line being directly designated to Krasnow for the advertising and marketing function, this is a beneficial chance for incorporating the marketing and advertising features. Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merging days has competence in business-to-business advertising and marketing in addition to company and retail advertising experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for marketing to handle both marketing and advertising functions.

The benefit of this approach is that it will certainly incorporate both functions while reducing the need for employing an additional source for advertising and marketing. Lewis would certainly be heading the marketing department as well as in any kind of case her substitute would be required for the current function that she is doing. The downside of this alternative is that exterior hiring may produce animosity from interior employees that may be considering the placement of EVP after Lewis takes over Krasnow's placement.

Dividing Adverting and also Manufacturing: Provided the competitive pressures and also premium quality job needed from the advertising agency, it is suggested that Lewis must allow the manufacturing system to be a separate function from the marketing unit. Given that a lot of advertising agencies had these two features as separate units, it makes more feeling to follow the norm. Both functions may be able to concentrate on their core activates more effectively. The drawback of this technique would be that extra costs would have to be borne for establishing up separate production features. A production head might have to be employed which can increase expenses for the organization.

Combination of Marketing with Workflows: Since Lewis is already taking care of the advertising and operations departments at the same time; it makes sense to incorporate the two functions because she has actually been effectively taking treatment of both ends. The truth that Lewis has to adapt her management style for the marketing division recommends that these two departments would be culturally diverse.


An examination of the three choices suggests that integration of marketing and procedures would not be a practical move due to the vast distinctions in between the 2 departments in spite of the fact that presently Lewis is dealing with both. While separation of the production function may have been a beneficial move for the advertising division, the truth that it would indicate positioning a third function under Lewis's wing indicates this must be prevented.

Action Plan.
Lewis will take over the function of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would be combined.

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

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

Lewis will certainly divide herself from operations.

A democratic management design with employee empowerment will be utilized in advertising and marketing division.

Open up door plan and focus on cross department communication will certainly be focused on getting rid of dissonance.

Backup plan.

If the integration does not exercise as intended, a backup plan would certainly adhere to which would certainly separate the manufacturing feature from the advertising feature to decrease the load on the SVP of advertising and marketing. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising department without an SVP. In that case the manufacturing function will absolutely be divided by positioning it under an SVP manufacturing.