Venture Capital At The Harvard Management Company In Historical Perspective Case Study Solution


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Venture Capital At The Harvard Management Company In Historical Perspective Case Study Solution

Background and Facts

Venture Capital At The Harvard Management Company In Historical Perspective a workplace supplies merchant for small and also medium sized organisations has actually lately been associated with preparing for a merger with its competitor Home Deport, which has influenced performance degrees in departmentswith the elderly manager associated with legal issues put forth by the government Trade Commission. With the Advertising and marketing Head advancing the information of his departure from the firm in one year, Jeannie Lewis, the current head of operations has been asked to take the function in the future. With difficulties in the form of a prospective social change as well as low employee morale, the company wants a full reengineering initiative at the advertising and marketing department.

Trouble Statement
Porter's 5 Forces Analysis
The possible cultural change at the advertising division of Venture Capital At The Harvard Management Company In Historical Perspective is increasing uncertainty in the workplace resulting in various 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 major function in influencing calculated choices because Stapes Inc. needed to abandon its plans of merging with Office Deport after the Federal Profession Compensation's treatment at the same time. Provided the reality that the store has a worldwide presence with branches in UK, U.S.A., Canada and also Germany, political factors in each of these nations may have the ability to influence performance or calculated objectives. Federal Trade Commission's antitrust fit against the merger took up important time of the company's senior management suggesting that 'political' factors can have severe implications for a worldwide service.

Economic Factors: Economic factors such as the development of local business in the international situation recommend that Venture Capital At The Harvard Management Company In Historical Perspective is flourishing in an environment where there is prospective development of services. Along with this, truth that shop customers are mainly searching for office products for home offices suggests that the market has a rising fad of entrepreneurs and online companies.

Social factors: Social trends in the economy show that consumers are seeking ease in addition to appealing costs. Market research shows how the client for Venture Capital At The Harvard Management Company In Historical Perspective does not have understanding concerning finding options which can supply a mix of comfort and inexpensive.

Technical factors: Technology plays a crucial role in Venture Capital At The Harvard Management Company In Historical Perspective's organisation approach particularly as the organization is piloting Modern technology facilities which would use innovation sales and support in the type of memory upgrades, peripheral installments. (Recap of INSECT in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Business Habits problems can be seen in Venture Capital At The Harvard Management Company In Historical Perspective's case as highlighted in this area.

Worries about social modification: There is worry regarding a social modification that would certainly happen once Todd Krasnow leaves from his placement as the Exec Vice Head Of State of Advertising And Marketing with the majority of the personnel currently revealing discontent over this potential action. This anticipated adjustment has actually produced stress in the work environment which has been paired with the previous stress and anxiety of preparing the company for a prospective merging with Residence Deport.
Pest Analysis
Difficult Task Atmosphere for Newcomers: There is shortage of workers that can match the demanding atmosphere of a busy organization. Not just does this cause difficulty in finding the right individuals, it places anxiety on new hires as can not withstand the rate and also pressure that the company expects them to birth.

Twin Coverage Lines: Novices find this organizational culture troublesome and also difficult to deal with particularly as populated line connections are implied to be weaker generally as well as objective setting and also performance assessment is still done by the solid line manager. This implies that newbies could shed clarity concerning their corresponding roles and purposes particularly as dotted 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 rather than Bridget Coles even though it had been speculated that the last would certainly take Krasnow's placement came as a blow to her morale. Lewis may have been qualified and also proper for the job but the truth that Kransnow's departure would certainly make Coles a straight report to Lewis may have been the factor for Coles' resignation from solutions.

Worry & Task Instability: Worry and instability can be identified as 2 significant concerns that Lewis would certainly be taking care of specifically as the merging has now be terminated and also 2 elderly execs of the advertising and marketing department would be leaving. The entire obligation of the division would be falling on Lewis's shoulders who would certainly not just supervise of brining about a cultural adjustment yet would certainly also need to prove herself in her brand-new function.

Inappropriate Management Design of Leader: Lewis's monitoring style as well as its conflict with the marketing department's role can also be seen as an OB obstacle specifically as she has been used to handling issues in the operations division where workers are taught to concentrate on processes and also get them. The marketing division on the various other hand can be viewed as a team of individuals who are used to being nurtured by Krasnow that concentrated much more on outcome than procedures.

Interdepartmental Disagreements: Interdepartmental arguments between three divisions, advertising and marketing, merchandizing as well as procedures respectively over the appropriation of the marketing mix can be determined as one more OB issue. The advertising and marketing department does not share the exact same vision as the various other two departments relating to the aloocation of the marketing mix twoards promotions and advertsing, the merchandizing and procedures departments do not agree over the advertising mix allocation among one another either.

Fragmentation in Advertising Department: Fragmentation between the advertising and marketing departments can be identified as another OB problem which might need additional attention. The fact that the advertising and marketing sections in the advertising and marketing division are separated is stopping both divisions from obtaining from each various other's experience and also proficiency. Combination of advertising with merchandising and also procedures would become more difficult if the marketing department itself is degenerated which can be another possible OB worry.

Venture Capital At The Harvard Management Company In Historical Perspective Analysis

Numerous concepts have been used to clarify the circumstances to obtain further clearness concerning the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, a lot of supervisors believe that staffs are easy and careless, have little passion and resist change. The difficult variation of this concept emphasized coercion, limited controls, hazards and punishments. With time it produces reduced productivity, refined sabotage as well as rivalry (Offer, 2003). The situation at Venture Capital At The Harvard Management Company In Historical Perspective is not entirely complying with Concept X, it can be seen that new hires are locating this atmosphere instead stressful which may eventually lead to a better inclination of the monitoring in the direction of Concept X. As per McGregor's promoted view, which he called Theory Y, the crucial task of the monitoring is to arrange business conditions so that individuals can attain their own objectives best by directing their initiatives towards business benefits. If people discover no contentment in their job, the administration would certainly have little choice yet to rely upon theory X and also exterior control (Deal, 2003). Also while assessing Lewis's management design, theory X might have appropriated in the operations department somewhat yet the Advertising and marketing division would need dependence on Theory Y so as to get the creative thinking and creativity from the teams.

Tuckman's Team effort Theory: As far as Lewis's worry regarding bringing consistency between the marketing and advertising division is worried, this would initially lead to conflict as discussed by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's concept shown in appendix 3, during the first stage of team growth, individuals might not bond, as they are busy discovering their location in the team. By combining the advertising and marketing department's work, there may be the same initial separate which can cause the 2nd stage of 'storming' where the teams challenge each other. Nevertheless, it is only throughout the third phase or 'norming' when they would collaborate to share concepts before the group can produce synergy in the 4th stage 'performing'.

Bridges' Change Model: According To William Bridge's concept (appendix 4), individuals are rather uncomfortable with modification, which is obvious by the scenario at Venture Capital At The Harvard Management Company In Historical Perspective The circumstance can be seen as a normal program of life if is researched as per Bridge's concept where he explains that people experience 3 stages of shift when they experience modification. 'Closing, shedding as well as Letting go', The Neutral Zone as well as 'The New Starting' (Bridges, 2004). When people are presented with adjustment, they get in phase one and so there might be feelings like despair, uncertainty, stress, anger, worry, rejection as well as disorientation.The circumstance at the advertising and marketing division of Venture Capital At The Harvard Management Company In Historical Perspective is similar so Lewis can get comfortable with the concept that it is not extraordinary actions. In the second stage, there might be a need to link the space between the brand-new as well as old culture so Lewis might have to face this ordeal when Krasnow leaves. There may be reduced spirits as well as reduced efficiency at this phase which ought to not be taken as a setback. It is during this phase that Lewis will certainly have to offer support to the department so that they can discover a sense of direction. It can be seen how Krasnow has actually currently made this change easier by making Lewis get associated with the division a year prior to his real departure. Based on Bridges' Version, stage 3 will cause visibility to knowing, High energy and dedication as individuals will certainly welcome the modification (Bridges, 2004).
Vrio Analysis
Maslow's Requirement hierarchy: The OB concern related to instability at the workplace has been set off first of all by the modification in monitoring as well as second of all by the truth that the merging will certainly no more be started. Abraham Maslow in his Concept of 'Demands Power structure' (appendix 5) has goes over the significance of 'protection requires as being a reduced level need of a human for triggering motivation. As seen in the pyramid cooperated appendix 3, we can see how 'the requirement to really feel secure and also safe' goes to the 2nd level of demands. Prior to an employee can be made to establish mentally, he requires to have his 'Physical 'and 'Safety' requires met. This shows that unless the workers are made to really feel secure regarding their existing employment standing in Venture Capital At The Harvard Management Company In Historical Perspective they might not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Venture Capital At The Harvard Management Company In Historical Perspective Case Study

Implication of Analysis.

The OB analysis has actually checked out various concepts to understand how to deal with the current situation handy. The adhering to 3 options have been suggested to assist Lewis deal with the business obstacles in the advertising division. Each of these alternatives has been recommended for relieving the change needed to bring the advertising department in line with the needs of the market and also for making the social modification that would comply with when the existing leader leaves.

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

Evaluation of Alternatives.

Combination of Advertising & Advertising Functions: The internal advertising and marketing company of Venture Capital At The Harvard Management Company In Historical Perspective is currently strength for the organization in regards to saving up on expenses associated with advertising and also promo. Considering that no brand-new recruitment has been done after Bridget Cole's separation with the reporting line being straight appointed to Krasnow for the marketing function, this is a positive chance for integrating the advertising and marketing features. Judith Shapiro who has actually earlier been talked to by Lewis during the earlier merging days has expertise in business-to-business marketing in addition to agency and also retail marketing experience. When Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to deal with both marketing and advertising functions.

The benefit of this method is that it will certainly integrate both functions while minimizing the demand for employing an added resource for marketing. Lewis would certainly be heading the marketing division and also in any kind of case her substitute would certainly be needed for the current function that she is doing. The negative aspect of this option is that external hiring may bring about bitterness from internal personnel who might be considering the setting of EVP after Lewis takes control of Krasnow's setting.

Separating Adverting and Manufacturing: Offered the competitive pressures as well as high top quality work called for from the marketing agency, it is advised that Lewis ought to permit the production unit to be a different function from the advertising system. Given that many advertising agencies had these two functions as separate devices, it makes even more feeling to follow the norm.

Assimilation of Advertising And Marketing with Operations: Given that Lewis is already taking treatment of the advertising and marketing and also procedures divisions all at once; it makes feeling to incorporate the two features considering that she has actually been successfully taking treatment of both ends. The truth that Lewis has to adjust her monitoring design for the advertising division suggests that these 2 divisions would be culturally diverse.


An examination of the three options shows that combination of advertising and marketing as well as operations would not be a viable action due to the substantial differences in between both divisions although that currently Lewis is handling both. While separation of the production function may have been a favorable move for the marketing department, the truth that it would imply positioning a third function under Lewis's wing implies this need to be prevented. The assimilation of the advertising and marketing division is the very best option in regards to obtaining the optimum results from the department. An activity prepare for this option is reviewed below.

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

Marketing and advertising features would be merged.

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

Manufacturing function will certainly remain part of advertising under advertising and marketing feature.

Lewis will separate herself from operations.

An autonomous management style with worker empowerment will be made use of in advertising department.

Open door policy and emphasis on cross department communication will certainly be focused on eliminating disharmony.

Contingency plan.

If the assimilation does not exercise as intended, a backup plan would follow which would certainly divide the manufacturing feature from the advertising feature to reduce the lots on the SVP of marketing and advertising. In case Judith Shapiro does not get employed, Lewis will be heading the advertising department without an SVP. Because case the production feature will certainly be separated by positioning it under an SVP manufacturing.