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Prairie Ventures Limited Case Study Solution

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Prairie Ventures Limited Case Study Analysis

Background and Facts

Prairie Ventures Limited an office materials retailer for little and moderate sized services has actually just recently been associated with planning for a merger with its competitor Residence Deport, which has actually impacted efficiency levels in departmentswith the senior supervisor associated with legal issues presented by the government Profession Payment. With the Marketing Head advancing the information of his departure from the business in one year, Jeannie Lewis, the existing head of procedures has actually been asked to take the function in the future. With difficulties in the form of a prospective social modification and also reduced employee spirits, the company requires a complete reengineering initiative at the advertising division.

Issue Declaration
Porter's 5 Forces Analysis
The prospective cultural modification at the advertising and marketing department of Prairie Ventures Limited is raising uncertainty in the working environment bring about numerous obstacles for the Jeannie Lewis that would certainly be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in influencing tactical choices given that Stapes Inc. needed to abandon its plans of merging with Workplace Deport after the Federal Profession Compensation's treatment in the process. Provided the truth that the store has a global visibility with branches in UK, U.S.A., Canada as well as Germany, political factors in each of these countries may be able to influence efficiency or critical goals. Federal Trade Payment's antitrust match versus the merging took up important time of the organization's elderly monitoring recommending that 'political' factors can have significant implications for a global company.

Economic Factors: Economic factors such as the introduction of small businesses in the international circumstance recommend that Prairie Ventures Limited is growing in an atmosphere where there is possible development of companies. Along with this, truth that shop clients are mainly trying to find office materials for home offices suggests that the market has a rising fad of entrepreneurs as well as home companies.

Social factors: Social trends in the economy reveal that consumers are trying to find ease along with appealing prices. Market research demonstrates how the consumer for Prairie Ventures Limited lacks recognition about finding solutions which can provide a mix of benefit and also affordable.

Technical factors: Modern technology plays a crucial function in Prairie Ventures Limited's organisation technique especially as the company is piloting Innovation facilities which would certainly supply innovation sales as well as support in the form of memory upgrades, outer installations. (Recap of INSECT in appendix 2).

OB Issues and also Manifestations.

Several underlying Business Actions concerns can be seen in Prairie Ventures Limited's case as highlighted in this area.

Concerns about cultural modification: There is uneasiness regarding a social adjustment that would certainly take place as soon as Todd Krasnow leaves from his setting as the Executive Vice President of Marketing with most of the team member currently showing discontent over this potential relocation. This anticipated change has developed anxiety in the workplace which has been coupled with the previous stress and anxiety of preparing the firm for a prospective merging with Residence Deport.
Pest Analysis
Difficult Job Setting for Newcomers: There is scarcity of employees that can match the stressful atmosphere of a hectic company. Not just does this cause problem in discovering the best people, it puts tension on new hires as can not stand up to the rate and stress that the company expects them to bear.

Twin Coverage Lines: Beginners locate this organizational culture difficult and tough to deal with particularly as populated line partnerships are suggested to be weak as a whole and also objective setting as well as performance evaluation is still done by the solid line manager. This indicates that beginners might lose quality about their corresponding roles and objectives specifically as populated line reporting does not keep them in straight interaction with the strong line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower instead of Bridget Coles despite the fact that it had been hypothesized that the latter would certainly take Krasnow's setting came as an impact to her morale. Lewis might have been qualified and also proper for the work however the reality that Kransnow's separation would certainly make Coles a direct record to Lewis might have been the factor for Coles' resignation from solutions.

Fear & Work Insecurity: Concern as well as insecurity can be recognized as two major worries that Lewis would certainly be taking care of specifically as the merger has currently be terminated and 2 senior execs of the advertising and marketing department would be leaving. The entire responsibility of the department would certainly be falling on Lewis's shoulders who would certainly not just supervise of brining regarding a cultural change however would certainly also need to show herself in her new duty.

Incompatible Administration Design of Leader: Lewis's monitoring design as well as its conflict with the advertising and marketing department's duty can also be viewed as an OB challenge particularly as she has actually been used to taking care of problems in the procedures division where workers are taught to focus on procedures as well as obtain them right. The marketing division on the various other hand can be seen as a team of individuals that are used to being supported by Krasnow that focused much more on output than procedures.

Interdepartmental Differences: Interdepartmental disputes between three divisions, marketing, merchandizing and also procedures specifically over the appropriation of the advertising mix can be determined as an additional OB concern. The marketing department does not share the very same vision as the other 2 divisions regarding the aloocation of the advertising and marketing mix twoards promotions and advertsing, the merchandizing and procedures divisions do not agree over the advertising and marketing mix allowance amongst one another either.

Disintegration in Marketing Division: Disintegration between the advertising and marketing divisions can be recognized as one more OB issue which might need additional focus. The truth that the advertising and marketing areas in the marketing division are separated is protecting against both departments from acquiring from each other's experience and knowledge. Integration of advertising with retailing and operations would end up being more difficult if the advertising and marketing division itself is degenerated which can be an additional prospective OB concern.

Prairie Ventures Limited Analysis

Various concepts have actually been made use of to explain the circumstances to get more quality about the circumstance at hand.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, the majority of supervisors think that staffs are passive and also lazy, have little passion as well as resist change. The difficult version of this theory stressed browbeating, limited controls, dangers as well as punishments. Gradually it creates reduced efficiency, refined sabotage as well as rivalry (Offer, 2003). The situation at Prairie Ventures Limited is not completely adhering to Concept X, it can be seen that new hires are discovering this environment instead difficult which might ultimately lead to a higher disposition of the monitoring towards Concept X. As per McGregor's promoted view, which he called Concept Y, the crucial task of the management is to prepare business problems to ensure that individuals can achieve their very own goals best by guiding their efforts in the direction of organizational rewards. If people find no fulfillment in their work, the management would have little option but to count on theory X and also exterior control (Offer, 2003). Even while assessing Lewis's monitoring design, concept X might have been suitable in the procedures department somewhat however the Advertising division would certainly call for dependence on Theory Y in order to get the creative thinking as well as originality from the teams.

Tuckman's Synergy Concept: As for Lewis's issue regarding bringing consistency between the marketing and advertising department is concerned, this would initially bring about conflict as talked about by Bruce Tuckman in his 'Teamwork Concept'. (Tuckman, 1965). As per Tuckman's concept received appendix 3, during the initial stage of group advancement, individuals might not bond, as they are active discovering their place in the group. By incorporating the marketing and advertising division's work, there may be the same preliminary detach which can result in the second phase of 'storming' where the teams challenge each other. Nonetheless, it is just throughout the third phase or 'norming' when they would certainly integrate to share concepts prior to the team can produce harmony in the 4th stage 'executing'.

Bridges' Shift Design: As per William Bridge's concept (appendix 4), individuals are quite uncomfortable with change, which is evident by the situation at Prairie Ventures Limited The scenario can be seen as a regular course of life if is examined as per Bridge's concept where he discusses that individuals undergo three phases of change when they experience adjustment. 'End, shedding as well as Letting go', The Neutral Zone and also 'The New Beginning' (Bridges, 2004). When individuals exist with modification, they go into stage one therefore there might be emotions like unhappiness, uncertainty, irritation, rage, worry, denial and disorientation.The scenario at the advertising division of Prairie Ventures Limited is similar so Lewis can obtain comfy with the idea that it is not phenomenal habits. In the second phase, there might be a need to connect the space in between the brand-new and old society so Lewis may need to face this challenge once Krasnow leaves. There may be low spirits and reduced efficiency at this phase which need to not be taken as a problem. It is during this stage that Lewis will certainly have to give support to the department to make sure that they can discover an orientation. It can be seen exactly how Krasnow has actually currently made this transition easier by making Lewis obtain involved in the department a year prior to his real separation. According to Bridges' Design, phase three will cause openness to discovering, High power and commitment as individuals will accept the modification (Bridges, 2004).
Vrio Analysis
Maslow's Demand power structure: The OB concern related to instability at the work environment has been set off firstly by the adjustment in administration and second of all by the fact that the merger will no longer be initiated. Abraham Maslow in his Theory of 'Needs Hierarchy' (appendix 5) has reviews the relevance of 'safety requires as being a lower level demand of a human for activating inspiration. As seen in the pyramid shared in appendix 3, we can see how 'the requirement to feel secure as well as safe' is at the 2nd degree of needs. Prior to a staff member can be made to create emotionally, he needs to have his 'Physiological 'and also 'Safety' requires fulfilled. This suggests that unless the workers are made to feel secure about their existing work status in Prairie Ventures Limited they may not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Prairie Ventures Limited Case Study



Ramification of Analysis.

The OB analysis has checked out numerous concepts to understand just how to cope with the current circumstance at hand. The adhering to 3 choices have actually been recommended to assist Lewis deal with the business challenges in the marketing division. Each of these options has been proposed for alleviating the transition needed to bring the advertising and marketing department according to the demands of the marketplace and also for making the social change that would adhere to as soon as the existing leader leaves.

Assimilation of marketing and advertising functions. Separating Adverting and also Manufacturing features. Combination of Advertising And Marketing with Operations.

Examination of Alternatives.

Combination of Advertising & Advertising Functions: The in-house advertising firm of Prairie Ventures Limited is already strength for the company in terms of saving up on overheads associated with advertising and promo. Considering that no brand-new recruitment has actually been done after Bridget Cole's separation with the reporting line being directly designated to Krasnow for the advertising and marketing function, this is a favorable opportunity for incorporating the marketing and advertising functions. Judith Shapiro that has actually earlier been interviewed by Lewis during the earlier merger days has expertise in business-to-business advertising and marketing in addition to company as well as retail marketing experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to handle both marketing and advertising features.

The advantage of this strategy is that it will incorporate both features while lowering the requirement for hiring an extra source for advertising and marketing. Lewis would certainly be heading the advertising department as well as in any type of case her replacement would be needed for the present role that she is executing. The disadvantage of this option is that external hiring might bring about bitterness from internal personnel who may be looking at the position of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and Production: Provided the competitive pressures as well as excellent quality job called for from the advertising agency, it is recommended that Lewis ought to allow the manufacturing unit to be a different feature from the advertising system. Because the majority of ad agency had these two features as separate devices, it makes even more sense to adhere to the norm. Both features might be able to focus on their core triggers a lot more effectively. However, the drawback of this technique would certainly be that additional expenses would certainly need to be borne for establishing different production features. Along with this, a production head may have to be hired which might boost overheads for the company.

Assimilation of Advertising And Marketing with Operations: Considering that Lewis is currently taking care of the advertising as well as procedures divisions all at once; it makes sense to incorporate the two features considering that she has actually been efficiently taking care of both ends. The truth that both divisions already have major differences over allowance of resources suggests that this combination may have the ability to cause consistency specifically as Lewis would certainly be heading both ends.However there are different negative aspects of this move specifically as it would certainly put too much problem over Lewis's shoulders. The reality that Lewis has to adapt her management style for the marketing division suggests that these two divisions would certainly be culturally diverse. Lewis might not be able to apply one kind of leadership design to both divisions which could result in ineffectiveness in either one of the two functions.

Recommendation.



An analysis of the 3 alternatives indicates that integration of advertising and procedures would certainly not be a possible action due to the substantial distinctions in between the 2 departments regardless of the fact that presently Lewis is handling both. While separation of the manufacturing function may have been a desirable move for the advertising division, the fact that it would imply putting a third feature under Lewis's wing indicates this must be stayed clear of.

Action Strategy.
Recommendation
Lewis will take over the role of EVP Marketing after Krasnow leaves.

Marketing and advertising functions would certainly be merged.

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

Production feature will remain component of marketing under marketing feature.

Lewis will certainly separate herself from operations.

A democratic management style with employee empowerment will certainly be used in marketing division.

Open up door plan and emphasis on cross department interaction will certainly be focused on removing disharmony.

Backup strategy.

If the integration does not exercise as prepared, a backup strategy would adhere to which would separate the manufacturing function from the marketing function to decrease the tons on the SVP of advertising and marketing. In case Judith Shapiro does not obtain employed, Lewis will certainly be heading the advertising and marketing division without an SVP. In that case the manufacturing function will absolutely be separated by positioning it under an SVP manufacturing.