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


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Background and Facts

Venture Capital At The Harvard Management Company In Historical Perspective an office products retailer for small and also medium sized companies has actually recently been involved in planning for a merging with its rival Home Deport, which has actually affected performance levels in departmentswith the elderly manager associated with lawful problems presented by the federal Trade Payment. With the Advertising Head putting forward the information of his separation from the company in one year, Jeannie Lewis, the current head of procedures has been asked to take the function in the future. With obstacles in the type of a potential social change and also reduced staff member morale, the organization needs a full reengineering initiative at the advertising division.

Problem Statement
Porter's 5 Forces Analysis
The possible social change at the advertising department of Venture Capital At The Harvard Management Company In Historical Perspective is increasing uncertainty in the working environment causing different difficulties for the Jeannie Lewis who would be changing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in influencing strategic choices because Stapes Inc. needed to abandon its strategies of combining with Office Deport after the Federal Profession Commission's intervention at the same time. Offered the fact that the shop has a global presence with branches in UK, UNITED STATES, Canada and Germany, political factors in each of these nations may have the ability to influence efficiency or calculated objectives. Federal Profession Compensation's antitrust suit against the merger used up valuable time of the organization's elderly management suggesting that 'political' factors can have serious implications for a worldwide service.

Economic Factors: Financial factors such as the introduction of local business in the international circumstance recommend that Venture Capital At The Harvard Management Company In Historical Perspective is growing in an environment where there is prospective development of businesses. Along with this, truth that store customers are primarily seeking workplace materials for home offices recommends that the marketplace has an increasing pattern of entrepreneurs and also online companies.

Social factors: Social patterns in the economic climate reveal that customers are searching for comfort in addition to eye-catching rates. Market research shows how the client for Venture Capital At The Harvard Management Company In Historical Perspective does not have understanding regarding locating services which can use a combination of convenience and low costs.

Technological factors: Modern technology plays an important role in Venture Capital At The Harvard Management Company In Historical Perspective's service approach especially as the organization is piloting Innovation centers which would supply modern technology sales and support in the type of memory upgrades, peripheral installments. (Recap of PEST in appendix 2).

OB Issues as well as Symptoms.

A number of underlying Organizational Behavior issues 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 adjustment that would certainly take place when Todd Krasnow leaves from his position as the Exec Vice Head Of State of Marketing with a lot of the team member already showing unhappiness over this possible relocation. This predicted adjustment has actually produced stress in the work environment which has been coupled with the previous stress of preparing the company for a prospective merging with Home Deport.
Pest Analysis
Difficult Job Atmosphere for Newcomers: There is shortage of workers that can match the demanding environment of a busy company. Not only does this bring about difficulty in locating the best people, it places tension on new hires as can not stand up to the pace as well as pressure that the company expects them to bear.

Dual Coverage Lines: Novices locate this organizational society difficult as well as tough to manage especially as populated line connections are indicated to be weak generally as well as objective setting and also performance examination is still done by the strong line manager. This implies that novices can shed quality concerning their corresponding duties as well as purposes especially as populated line coverage does not keep them in straight communication with the strong line managers.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower rather than Bridget Coles although it had actually been guessed that the latter would certainly take Krasnow's placement came as a blow to her spirits. Lewis might have been qualified as well as appropriate for the work yet the truth that Kransnow's separation would certainly make Coles a direct report to Lewis may have been the factor for Coles' resignation from solutions.

Anxiety & Job Instability: Concern and also insecurity can be determined as 2 significant issues that Lewis would certainly be managing particularly as the merger has actually currently be cancelled and also 2 senior executives of the advertising and marketing division would be leaving. The entire duty of the department would certainly be falling on Lewis's shoulders who would certainly not just be in charge of brining regarding a social adjustment but would likewise have to show herself in her new role.

Incompatible Administration Design of Leader: Lewis's monitoring design and its incompatibility with the advertising and marketing department's function can likewise be seen as an OB challenge particularly as she has actually been made use of to managing problems in the procedures department where personnel are shown to focus on procedures and obtain them. The advertising and marketing department on the other hand can be seen as a team of individuals who are used to being supported by Krasnow who focused a lot more on outcome than processes.

Interdepartmental Disputes: Interdepartmental arguments in between three departments, advertising and marketing, merchandizing and operations specifically over the allotment of the marketing mix can be recognized as one more OB problem. Although the marketing division does not share the very same vision as the various other two departments relating to the aloocation of the advertising and marketing mix twoards promos and advertsing, the merchandizing and also operations departments do not agree over the advertising and marketing mix allotment amongst one another either.

Fragmentation in Advertising Department: Disintegration in between the marketing and advertising departments can be identified as an additional OB concern which can need additional interest. The truth that the advertising and marketing areas in the advertising department are detached is protecting against both divisions from acquiring from each other's experience as well as knowledge. Combination of advertising and marketing with retailing and also procedures would certainly become harder if the advertising and marketing department itself is disintegrated which can be another prospective OB worry.

Venture Capital At The Harvard Management Company In Historical Perspective Analysis

Numerous theories have actually been utilized to discuss the conditions to get further clarity regarding the situation handy.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many managers believe that juniors are easy as well as lazy, have little aspiration and stand up to change. The scenario at Venture Capital At The Harvard Management Company In Historical Perspective is not totally adhering to Concept X, it can be seen that new hires are locating this environment rather demanding which may at some point lead to a higher inclination of the administration towards Concept X. Also while analyzing Lewis's monitoring style, concept X might have been suitable in the procedures division to some level yet the Advertising department would certainly call for dependence on Theory Y in order to get the creative thinking and originality from the groups.

Tuckman's Team effort Concept: As far as Lewis's problem concerning bringing harmony in between the advertising and marketing and marketing division is worried, this would initially lead to clash as reviewed by Bruce Tuckman in his 'Teamwork Concept'. By integrating the advertising and also advertising department's work, there might be the same initial disconnect which might lead to the second stage of 'storming' where the teams challenge one an additional.

When people are provided with modification, they go into stage one and so there might be feelings like despair, uncertainty, aggravation, anger, worry, rejection and disorientation.The circumstance at the marketing department of Venture Capital At The Harvard Management Company In Historical Perspective is comparable so Lewis can obtain comfortable with the concept that it is not amazing actions. It is during this phase that Lewis will have to offer support to the department so that they can discover a sense of direction. It can be seen just how Krasnow has currently made this shift much easier by making Lewis get involved in the division a year before his actual departure.
Vrio Analysis
Maslow's Demand pecking order: The OB concern related to instability at the workplace has been activated firstly by the change in administration as well as secondly by the reality that the merging will certainly no longer be launched. Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has talks about the importance of 'safety requires as being a lower level demand of a human for triggering motivation. As seen in the pyramid shared in appendix 3, we can see how 'the demand to feel secure and unharmed' goes to the 2nd degree of needs. Prior to a worker can be made to create mentally, he requires to have his 'Physiological 'as well as 'Security' needs satisfied. This shows that unless the personnel are made to feel safe concerning their current 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

Effects of Analysis.

The OB analysis has checked out various concepts to understand just how to deal with the present circumstance available. The following 3 alternatives have been recommended to aid Lewis handle the business challenges in the advertising division. Each of these alternatives has been recommended for alleviating the change required to bring the advertising division according to the requirements of the marketplace and for making the cultural adjustment that would follow when the existing leader leaves.

Integration of marketing and advertising features. Dividing Adverting and also Production features. Combination of Marketing with Workflow.

Evaluation of Alternatives.

Integration of Advertising And Marketing & Advertising Functions: The in-house advertising and marketing company of Venture Capital At The Harvard Management Company In Historical Perspective is currently stamina for the organization in terms of conserving up on expenses connected to advertising and also promo. Considering that no new recruitment has been done after Bridget Cole's departure with the reporting line being straight designated to Krasnow for the marketing feature, this is a desirable chance for integrating the marketing and advertising features. Judith Shapiro that has earlier been interviewed by Lewis during the earlier merger days has expertise in business-to-business advertising and marketing together with company and also retail advertising experience. Once Krasnow leaves, Lewis can work with Shapiro as an EVP for marketing to handle both marketing and advertising functions.

The advantage of this strategy is that it will certainly integrate both functions while decreasing the requirement for working with an extra resource for advertising. Lewis would be heading the advertising and marketing division and in any kind of case her replacement would be required for the present role that she is carrying out. The drawback of this choice is that external hiring might cause resentment from inner personnel that may be eying the placement of EVP after Lewis takes over Krasnow's setting.

Separating Adverting and also Production: Offered the competitive stress and high quality job required from the advertising firm, it is advised that Lewis ought to allow the manufacturing device to be a separate feature from the advertising and marketing unit. Considering that a lot of advertising firms had these two features as different units, it makes even more sense to comply with the standard.

Integration of Advertising And Marketing with Procedures: Considering that Lewis is already taking care of the advertising and marketing as well as operations departments at the same time; it makes good sense to incorporate the two functions because she has been efficiently looking after both ends. The truth that the two departments already have major distinctions over allowance of sources recommends that this assimilation may be able to bring about consistency especially as Lewis would certainly be heading both ends.However there are numerous negative aspects of this step specifically as it would put too much worry over Lewis's shoulders. The truth that Lewis has to adjust her management design for the advertising and marketing division suggests that these 2 divisions would be culturally diverse. Lewis might not be able to use one kind of leadership design to both departments which can result in ineffectiveness in either one of the 2 functions.


An evaluation of the three choices indicates that combination of advertising and marketing as well as procedures would certainly not be a feasible step because of the huge differences between the two departments although that presently Lewis is managing both. While splitting up of the production feature might have been a beneficial step for the advertising division, the fact that it would certainly indicate putting a third function under Lewis's wing suggests this need to be avoided. The integration of the marketing department is the most effective alternative in terms of getting the optimal results from the department. An action plan for this alternative is gone over listed below.

Activity Strategy.
Lewis will take over the duty of EVP Advertising after Krasnow leaves.

Advertising and Marketing functions would certainly be merged.

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

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

Lewis will divide herself from operations.

A democratic leadership design with employee empowerment will certainly be made use of in advertising and marketing division.

Open door plan as well as focus on cross department interaction will be targeted at getting rid of dissonance.

Backup plan.

If the assimilation does not exercise as prepared, a contingency strategy would comply with which would divide the manufacturing feature 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 advertising and marketing department without an SVP. In that case the manufacturing function will most definitely be divided by positioning it under an SVP production.