Strategic Capital Management Llc A Case Study Analysis


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Background and Facts

Strategic Capital Management Llc A an office products retailer for tiny as well as moderate sized organisations has lately been associated with planning for a merger with its competitor Residence Deport, which has actually impacted performance levels in departmentswith the senior manager associated with lawful complications presented by the government Trade Payment. With the Advertising Head advancing the news of his departure from the business in one year, Jeannie Lewis, the present head of operations has actually been asked to take the duty in the future. With difficulties in the type of a possible social adjustment and also low worker spirits, the company requires a complete reengineering effort at the marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The prospective social modification at the advertising and marketing department of Strategic Capital Management Llc A is raising uncertainty in the workplace bring about numerous obstacles 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 duty in affecting strategic decisions given that Stapes Inc. needed to desert its plans of merging with Office Deport after the Federal Trade Compensation's intervention in the process. Given the reality that the shop has an international visibility with branches in UK, UNITED STATES, Canada as well as Germany, political factors in each of these countries might be able to affect efficiency or calculated goals. Federal Profession Compensation's antitrust suit against the merger took up valuable time of the company's elderly management suggesting that 'political' factors can have serious implications for an international service.

Economic Factors: Financial factors such as the introduction of small companies in the international situation suggest that Strategic Capital Management Llc A is growing in a setting where there is prospective development of companies. Fact that shop consumers are primarily looking for office products for residence workplaces suggests that the market has a rising pattern of entrepreneurs and house based businesses.

Social factors: Social fads in the economic climate show that clients are trying to find ease along with appealing prices. Marketing research shows how the customer for Strategic Capital Management Llc A lacks awareness concerning locating solutions which can provide a combination of ease and also low costs.

Technological factors: Technology plays an essential duty in Strategic Capital Management Llc A's service technique particularly as the company is piloting Technology centers which would certainly provide innovation sales and also support in the type of memory upgrades, outer setups. (Summary of PEST in appendix 2).

OB Issues and Symptoms.

A number of underlying Business Habits problems can be seen in Strategic Capital Management Llc A's case as highlighted in this section.

Uneasiness concerning social change: There is concern about a cultural change that would take place as soon as Todd Krasnow leaves from his position as the Executive Vice Head Of State of Advertising with most of the team member already showing discontent over this prospective move. This expected change has produced tension in the work environment which has been paired with the past tension of preparing the company for a potential merger with Home Deport.
Pest Analysis
Demanding Task Atmosphere for Newcomers: There is shortage of personnel that can match the stressful environment of a fast-paced organization. Not just does this bring about difficulty in finding the ideal individuals, it places anxiety on brand-new hires as can not stand up to the rate and also stress that the company anticipates them to bear.

Double Reporting Lines: Novices locate this organizational culture difficult as well as tough to manage specifically as populated line relationships are implied to be weaker as a whole and objective setting and also efficiency examination is still done by the strong line manager. This indicates that newbies might shed clearness regarding their particular duties and goals specifically as populated line reporting does not keep them in straight communication with the solid line managers.

Resentment From Cross Departmental Hiring: Krasnow's decision to make Lewis his follower rather than Bridget Coles even though it had actually been guessed that the latter would take Krasnow's setting came as a strike to her morale. Lewis might have been qualified and ideal for the job however the truth that Kransnow's separation would certainly make Coles a direct report to Lewis might have been the factor for Coles' resignation from services.

Concern & Task Insecurity: Worry and instability can be recognized as two major worries that Lewis would certainly be taking care of particularly as the merger has currently be cancelled as well as 2 senior executives of the marketing department would certainly be leaving. The entire obligation of the division would certainly be falling on Lewis's shoulders who would not simply supervise of brining concerning a social modification however would additionally need to show herself in her brand-new duty.

Inappropriate Monitoring Style of Leader: Lewis's administration design as well as its conflict with the marketing department's role can additionally be seen as an OB difficulty particularly as she has been used to taking care of issues in the procedures division where workers are taught to focus on procedures and get them. The marketing division on the other hand can be viewed as a group of individuals who are made use of to being nurtured by Krasnow who focused much more on outcome than processes.

Interdepartmental Arguments: Interdepartmental differences in between 3 departments, advertising, merchandizing and operations specifically over the allotment of the marketing mix can be identified as one more OB problem. Although the marketing department does not share the exact same vision as the other 2 divisions pertaining to the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing as well as procedures divisions do not concur over the marketing mix allocation among each other either.

Fragmentation in Advertising Division: Fragmentation in between the marketing and advertising departments can be determined as an additional OB concern which can require more attention. The reality that the marketing and advertising areas in the advertising division are separated is preventing both divisions from obtaining from each various other's experience and know-how. Combination of marketing with merchandising and also operations would certainly end up being more difficult if the marketing department itself is degenerated which can be another possible OB worry.

Strategic Capital Management Llc A Analysis

Numerous concepts have actually been used to clarify the situations to obtain additional clarity regarding the scenario available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, many supervisors think that staffs are easy and careless, have little passion and resist change. The scenario at Strategic Capital Management Llc A is not completely complying with Theory X, it can be seen that new hires are finding this atmosphere rather stressful which may ultimately lead to a better disposition of the management towards Concept X. Even while evaluating Lewis's administration style, concept X might have been ideal in the procedures department to some extent but the Advertising and marketing department would certainly need reliance on Theory Y in order to get the creativity and also creativity from the teams.

Tuckman's Synergy Concept: Regarding Lewis's worry concerning bringing harmony between the marketing and advertising department is concerned, this would initially lead to contrast as reviewed by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's theory shown in appendix 3, throughout the preliminary phase of team advancement, people might not bond, as they are hectic discovering their place in the group. By combining the marketing and advertising department's work, there might be the same initial separate which might result in the second stage of 'storming' where the groups test each other. However, it is only throughout the 3rd stage or 'norming' when they would certainly collaborate to share concepts prior to the group can bring about synergy in the 4th stage 'performing'.

When people are provided with adjustment, they get in stage one and also so there may be emotions like despair, uncertainty, frustration, rage, worry, rejection and disorientation.The circumstance at the advertising and marketing division of Strategic Capital Management Llc A is comparable so Lewis can get comfy with the concept that it is not phenomenal behavior. It is during this stage that Lewis will have to provide guidance to the department so that they can locate a sense of instructions. It can be seen just how Krasnow has already made this shift simpler by making Lewis obtain included in the division a year prior to his real separation.
Vrio Analysis
Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has reviews the significance of 'safety needs as being a reduced level need of a human for activating motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to really feel safe and secure and out of threat' is at the 2nd degree of needs. Prior to an employee can be made to establish emotionally, he needs to have his 'Physiological 'as well as 'Security' needs met.

SWOT Analysis for Strategic Capital Management Llc A Case Study

Ramification of Analysis.

The OB analysis has actually checked out different theories to understand how to deal with the current circumstance handy. The complying with three options have actually been suggested to assist Lewis handle the business challenges in the advertising division. Each of these choices has actually been recommended for relieving the change needed to bring the marketing department in line with the demands of the marketplace and also for making the social adjustment that would comply with once the present leader leaves.

Assimilation of marketing and advertising features. Dividing Adverting as well as Manufacturing functions. Assimilation of Advertising And Marketing with Procedures.

Assessment of Alternatives.

Judith Shapiro that has actually earlier been talked to by Lewis throughout the earlier merging days has proficiency in business-to-business advertising and marketing along with agency and also retail advertising experience. As soon as Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to manage both advertising as well as marketing functions.

The advantage of this method is that it will certainly incorporate the two functions while decreasing the requirement for working with an additional resource for marketing. Lewis would certainly be heading the advertising and marketing division and also in any case her replacement would be needed for the present role that she is carrying out. The disadvantage of this option is that external hiring might cause bitterness from internal workers that may be eying the setting of EVP after Lewis takes over Krasnow's setting.

Dividing Adverting and Production: Provided the competitive stress as well as high top quality job called for from the marketing agency, it is suggested that Lewis should permit the production system to be a different function from the marketing device. Because the majority of advertising and marketing firms had these 2 functions as different systems, it makes more sense to comply with the standard.

Assimilation of Advertising with Procedures: Because Lewis is already taking care of the advertising and marketing and also operations departments all at once; it makes sense to integrate the two features because she has been successfully taking treatment of both ends. The reality that Lewis has to adjust her administration design for the advertising and marketing division recommends that these two divisions would be culturally diverse.


An examination of the 3 alternatives indicates that integration of advertising and also operations would not be a feasible move because of the large differences between the two departments despite the fact that presently Lewis is managing both. While separation of the manufacturing function might have been a beneficial relocation for the advertising department, the fact that it would suggest placing a third function under Lewis's wing suggests this need to be prevented. The assimilation of the marketing department is the best option in terms of obtaining the ideal arise from the division. An action plan for this option is reviewed listed below.

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

Advertising and Marketing functions would be merged.

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

Manufacturing feature will continue to be part of marketing under advertising and marketing feature.

Lewis will certainly divide herself from operations.

A democratic leadership style with worker empowerment will certainly be made use of in advertising department.

Open up door plan and emphasis on cross departmental communication will be aimed at removing disharmony.

Backup strategy.

If the assimilation does not exercise as planned, a backup plan would follow which would certainly divide the production function from the advertising and marketing function to lower the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will be heading the marketing department without an SVP. Because case the production function will most definitely be separated by putting it under an SVP production.