Reputation Risk In The Global Art Market Case Study Solution


Home >> Harvard >> Reputation Risk In The Global Art Market >>

Reputation Risk In The Global Art Market Case Study Solution

Background and Facts

Reputation Risk In The Global Art Market a workplace supplies seller for small as well as average sized companies has actually just recently been involved in planning for a merger with its competitor House Deport, which has actually affected effectiveness levels in departmentswith the elderly supervisor associated with lawful problems presented by the federal Profession Payment. With the Marketing Head advancing the information of his departure from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the role in the near future. With challenges in the type of a prospective social modification as well as low staff member morale, the company needs a total reengineering initiative at the advertising division.

Problem Declaration
Porter's 5 Forces Analysis
The potential cultural adjustment at the advertising and marketing department of Reputation Risk In The Global Art Market is increasing unpredictability in the workplace leading to different 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 role in influencing tactical choices because Stapes Inc. needed to abandon its strategies of combining with Workplace Deport after the Federal Profession Payment's treatment in the process. Given the fact that the store has a global existence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations might be able to impact performance or strategic goals. Federal Profession Compensation's antitrust match versus the merger took up beneficial time of the organization's elderly administration recommending that 'political' factors can have major ramifications for an international service.

Economic Factors: Economic factors such as the development of local business in the international situation suggest that Reputation Risk In The Global Art Market is thriving in an environment where there is potential development of services. Along with this, reality that shop clients are mostly looking for workplace materials for office suggests that the market has a rising fad of business owners as well as online companies.

Social factors: Social patterns in the economy reveal that consumers are seeking benefit along with eye-catching rates. Marketing research shows how the consumer for Reputation Risk In The Global Art Market does not have understanding about locating services which can provide a combination of ease and low costs.

Technological factors: Innovation plays an essential duty in Reputation Risk In The Global Art Market's company method particularly as the organization is piloting Technology centers which would certainly supply modern technology sales and assistance in the form of memory upgrades, peripheral installments. (Recap of PARASITE in appendix 2).

OB Issues as well as Symptoms.

Several underlying Organizational Actions problems can be seen in Reputation Risk In The Global Art Market's case as highlighted in this section.

Concerns regarding cultural modification: There is uneasiness about a social modification that would happen when Todd Krasnow leaves from his position as the Executive Vice Head Of State of Marketing with the majority of the personnel currently revealing unhappiness over this possible move. This expected change has created tension in the workplace which has actually been coupled with the past tension of preparing the firm for a prospective merging with Home Deport.
Pest Analysis
Stressful Task Atmosphere for Newcomers: There is scarcity of personnel that can match the demanding environment of a busy company. Not just does this cause difficulty in discovering the appropriate people, it places stress and anxiety on new hires as can not hold up against the pace and pressure that the company expects them to bear.

Dual Reporting Lines: Newbies discover this organizational culture troublesome and challenging to cope with specifically as populated line partnerships are suggested to be weaker in general and objective setup as well as performance evaluation is still done by the solid line manager. This means that novices can shed quality about their corresponding functions and goals particularly as dotted line coverage does not maintain them in direct interaction with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his successor as opposed to Bridget Coles although it had been hypothesized that the last would take Krasnow's setting came as a blow to her spirits. Lewis might have been qualified as well as proper for the work however the fact that Kransnow's separation would make Coles a direct report to Lewis might have been the reason for Coles' resignation from services.

Anxiety & Job Insecurity: Anxiety and instability can be determined as two significant problems that Lewis would certainly be managing specifically as the merging has actually currently be terminated and also 2 elderly executives of the marketing division would be leaving. The entire responsibility of the department would certainly be dropping on Lewis's shoulders that would certainly not just be in charge of brining regarding a social adjustment but would likewise need to verify herself in her brand-new duty.

Inappropriate Administration Design of Leader: Lewis's monitoring style as well as its conflict with the advertising and marketing department's duty can additionally be seen as an OB difficulty particularly as she has been utilized to handling problems in the procedures division where personnel are educated to focus on processes and also obtain them. The advertising department on the various other hand can be seen as a team of individuals who are utilized to being supported by Krasnow that concentrated a lot more on result than processes.

Interdepartmental Differences: Interdepartmental arguments in between 3 departments, advertising, merchandizing and also procedures respectively over the allotment of the marketing mix can be determined as another OB problem. Although the advertising department does not share the very same vision as the various other two divisions relating to the aloocation of the marketing mix twoards promotions and also advertsing, the merchandizing and also operations divisions do not agree over the advertising mix allocation amongst each other either.

Fragmentation in Advertising And Marketing Department: Disintegration in between the marketing and advertising departments can be identified as an additional OB issue which could require further focus. The truth that the advertising and marketing sections in the advertising department are detached is preventing both departments from getting from each other's experience as well as proficiency. Assimilation of advertising with retailing and operations would certainly end up being harder if the advertising department itself is disintegrated which can be an additional prospective OB issue.

Reputation Risk In The Global Art Market Analysis

Various theories have actually been used to explain the scenarios to obtain additional clearness about the situation at hand.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors think that staffs are passive as well as careless, have little aspiration as well as stand up to adjustment. The circumstance at Reputation Risk In The Global Art Market is not entirely adhering to Concept X, it can be seen that new hires are locating this environment rather stressful which may ultimately lead to a better disposition of the monitoring towards Theory X. Even while examining Lewis's monitoring design, concept X may have been appropriate in the procedures division to some extent yet the Advertising and marketing division would certainly need reliance on Theory Y in order to obtain the imagination as well as originality from the groups.

Tuckman's Teamwork Theory: As much as Lewis's issue concerning bringing consistency between the marketing and also advertising department is concerned, this would originally lead to contrast as discussed by Bruce Tuckman in his 'Team effort Concept'. By combining the advertising and marketing and also marketing division's job, there may be the same preliminary separate which could lead to the second stage of 'storming' where the teams challenge one an additional.

Bridges' Shift Model: According To William Bridge's concept (appendix 4), people are quite uneasy with change, which is apparent by the scenario at Reputation Risk In The Global Art Market The situation can be viewed as a normal training course of life if is studied as per Bridge's theory where he describes that people undergo 3 stages of shift when they experience modification. 'Closing, shedding as well as Letting go', The Neutral Area and 'The New Beginning' (Bridges, 2004). When individuals exist with adjustment, they go into phase one therefore there may be emotions like unhappiness, unpredictability, aggravation, rage, concern, denial and also disorientation.The situation at the advertising and marketing division of Reputation Risk In The Global Art Market is comparable so Lewis can obtain comfy with the idea that it is not remarkable behavior. In the 2nd phase, there may be a need to connect the void in between the brand-new and old culture so Lewis might have to encounter this challenge as soon as Krasnow leaves. There might be reduced spirits and also reduced productivity at this stage which need to not be taken as a problem. It is during this stage that Lewis will have to offer support to the department so that they can discover an orientation. It can be seen how Krasnow has already made this shift easier by making Lewis get associated with the division a year before his real departure. Based on Bridges' Design, stage three will certainly bring about openness to knowing, High energy and commitment as individuals will certainly welcome the change (Bridges, 2004).
Vrio Analysis
Maslow's Requirement pecking order: The OB concern pertaining to instability at the workplace has actually been activated firstly by the modification in management as well as second of all by the fact that the merger will no longer be started. Abraham Maslow in his Theory of 'Requirements Power structure' (appendix 5) has discusses the importance of 'protection requires as being a reduced level requirement of a human for setting off inspiration. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to really feel protected as well as safe' goes to the 2nd level of requirements. Before an employee can be made to develop emotionally, he needs to have his 'Physical 'and 'Safety' needs satisfied. This indicates that unless the personnel are made to really feel secure regarding their current employment standing in Reputation Risk In The Global Art Market they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Reputation Risk In The Global Art Market Case Study

Ramification of Analysis.

The OB analysis has checked out different concepts to understand exactly how to deal with the current scenario available. The following three alternatives have been suggested to aid Lewis handle the organizational challenges in the marketing division. Each of these alternatives has actually been proposed for relieving the transition required to bring the marketing department in line with the requirements of the marketplace and for making the cultural modification that would adhere to as soon as the current leader leaves.

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

Examination of Alternatives.

Judith Shapiro who has earlier been spoken with by Lewis throughout the earlier merging days has expertise in business-to-business advertising and marketing along with firm and retail advertising experience. When Krasnow leaves, Lewis can work with Shapiro as an EVP for advertising to deal with both advertising and marketing as well as marketing functions.

The advantage of this strategy is that it will certainly integrate the two features while lowering the requirement for working with an extra source for advertising. Along with this, Lewis would certainly be heading the advertising and marketing department as well as regardless her substitute would certainly be required for the present function that she is executing. The disadvantage of this alternative is that external hiring may cause bitterness from interior personnel that might be eying the placement of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and also Production: Offered the affordable pressures and also high top quality job called for from the advertising and marketing company, it is recommended that Lewis ought to enable the manufacturing device to be a separate function from the advertising and marketing device. Given that a lot of advertising firms had these 2 features as separate devices, it makes even more feeling to follow the standard.

Assimilation of Advertising with Operations: Since Lewis is already dealing with the marketing and also operations divisions at the same time; it makes sense to incorporate the two functions given that she has actually been effectively caring for both ends. The reality that both divisions already have significant distinctions over allowance of sources recommends that this assimilation might be able to bring about consistency especially as Lewis would certainly be heading both ends.However there are different drawbacks of this action specifically as it would certainly put excessive concern over Lewis's shoulders. The reality that Lewis has to adapt her management design for the advertising and marketing department suggests that these 2 divisions would be culturally varied. In addition to this, Lewis may not be able to use one kind of management style to both divisions which could result in inefficiency in either among both functions.


An analysis of the 3 choices shows that combination of marketing and operations would not be a viable step due to the vast differences between the two departments in spite of the truth that presently Lewis is dealing with both. While separation of the production function may have been a beneficial action for the advertising department, the reality that it would certainly suggest placing a third feature under Lewis's wing means this ought to be avoided.

Action Plan.
Lewis will certainly take control of the role of EVP Advertising and marketing after Krasnow leaves.

Advertising and Marketing features would be merged.

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

Production function will continue to be part of marketing under marketing feature.

Lewis will divide herself from procedures.

A democratic leadership design with staff member empowerment will certainly be utilized in advertising and marketing division.

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

Contingency strategy.

If the integration does not exercise as intended, a contingency strategy would certainly comply with which would divide the manufacturing function from the advertising feature to lower the tons on the SVP of advertising and marketing. In case Judith Shapiro does not get hired, Lewis will be heading the advertising division without an SVP. In that case the production function will definitely be separated by placing it under an SVP manufacturing.