Wideopenwest Financing The Knology Acquisition Case Study Analysis


Home >> Harvard >> Wideopenwest Financing The Knology Acquisition >>

Wideopenwest Financing The Knology Acquisition Case Study Solution

Background and Facts

Wideopenwest Financing The Knology Acquisition an office materials retailer for tiny as well as average sized businesses has actually lately been associated with preparing for a merging with its rival Residence Deport, which has affected performance levels in departmentswith the elderly supervisor involved in lawful complications put forth by the federal Profession Payment. With the Advertising and marketing Head putting forward the news of his separation from the firm in one year, Jeannie Lewis, the present head of procedures has actually been asked to take the duty in the near future. With difficulties in the kind of a possible cultural adjustment and reduced staff member spirits, the company is in need of a full reengineering initiative at the advertising and marketing department.

Trouble Declaration
Porter's 5 Forces Analysis
The potential social change at the advertising and marketing department of Wideopenwest Financing The Knology Acquisition is enhancing uncertainty in the working environment resulting in different difficulties for the Jeannie Lewis that would be replacing the head of the department in one year. nalysis

PEST analysis

Political Factors: Political factors play a significant duty in impacting calculated decisions given that Stapes Inc. needed to abandon its strategies of merging with Workplace Deport after the Federal Trade Compensation's intervention in the process. Provided the reality that the shop has an international 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 performance or critical objectives. Federal Profession Commission's antitrust fit versus the merger used up beneficial time of the company's senior administration recommending that 'political' factors can have serious effects for a worldwide organisation.

Economic Factors: Economic factors such as the introduction of small businesses in the worldwide circumstance suggest that Wideopenwest Financing The Knology Acquisition is prospering in a setting where there is possible development of companies. In addition to this, fact that store consumers are mainly looking for workplace supplies for office recommends that the marketplace has an increasing pattern of entrepreneurs as well as home based services.

Social factors: Social fads in the economic situation reveal that customers are looking for convenience in addition to appealing prices. Market research shows how the customer for Wideopenwest Financing The Knology Acquisition lacks awareness about discovering remedies which can supply a mix of benefit as well as inexpensive.

Technological factors: Technology plays an important duty in Wideopenwest Financing The Knology Acquisition's service approach particularly as the organization is piloting Modern technology centers which would use innovation sales as well as assistance in the form of memory upgrades, peripheral installments. (Recap of BUG in appendix 2).

OB Issues and Manifestations.

Several underlying Business Actions issues can be seen in Wideopenwest Financing The Knology Acquisition's case as highlighted in this section.

Apprehensions about social change: There is concern about a cultural change that would happen once Todd Krasnow leaves from his setting as the Exec Vice Head Of State of Advertising And Marketing with the majority of the staff members currently revealing discontent over this possible relocation. This predicted adjustment has developed stress in the workplace which has been combined with the past stress and anxiety of preparing the firm for a prospective merging with Home Deport.
Pest Analysis
Stressful Work Environment for Newcomers: There is lack of workers that can match the demanding atmosphere of a hectic company. Not only does this result in trouble in locating the right people, it places stress and anxiety on new hires as can not endure the speed and also pressure that the organization anticipates them to bear.

Twin Reporting Lines: Beginners locate this business society troublesome as well as tough to deal with especially as populated line relationships are meant to be weaker in general and objective setting and also performance examination is still done by the strong line supervisor. This implies that newcomers can lose clearness concerning their corresponding functions and goals especially as populated line coverage does not keep them in direct communication with the strong line supervisors.

Bitterness From Cross Departmental Hiring: Krasnow's choice to make Lewis his follower as opposed to Bridget Coles although it had actually been guessed that the latter would take Krasnow's setting came as a blow to her morale. Lewis might have been qualified and suitable for the work but the truth that Kransnow's departure would make Coles a straight record to Lewis may have been the factor for Coles' resignation from solutions.

Fear & Task Insecurity: Anxiety as well as insecurity can be identified as 2 significant worries that Lewis would certainly be handling especially as the merger has actually currently be terminated and also two elderly execs of the advertising division would be leaving. The entire obligation of the division would certainly be dropping on Lewis's shoulders that would certainly not simply supervise of brining regarding a social adjustment yet would certainly additionally need to show herself in her new function.

Inappropriate Management Style of Leader: Lewis's monitoring design as well as its conflict with the advertising and marketing department's duty can likewise be seen as an OB challenge particularly as she has actually been used to taking care of problems in the operations division where employees are instructed to focus on procedures and also get them. The marketing division on the various other hand can be seen as a group of people who are utilized to being supported by Krasnow that focused more on outcome than procedures.

Interdepartmental Differences: Interdepartmental differences between three departments, advertising and marketing, merchandizing and also operations specifically over the allotment of the advertising and marketing mix can be determined as one more OB problem. The marketing department does not share the very same vision as the various other 2 divisions concerning the aloocation of the advertising and marketing mix twoards promos and also advertsing, the merchandizing and also operations divisions do not concur over the marketing mix allowance among one another either.

Fragmentation in Marketing Department: Disintegration in between the advertising and marketing departments can be recognized as one more OB concern which could need further attention. The truth that the advertising and marketing sections in the advertising division are disconnected is preventing both divisions from gaining from each various other's experience and also know-how. Combination of advertising with merchandising as well as procedures would come to be more difficult if the advertising and marketing department itself is disintegrated which can be an additional potential OB worry.

Wideopenwest Financing The Knology Acquisition Analysis

Numerous theories have been utilized to discuss the conditions to obtain additional clarity regarding the situation available.
Swot Analysis
McGregor's Theory X & Y: According to Douglas McGregor's Theory X, most supervisors believe that staffs are passive as well as careless, have little aspiration and resist change. The hard variation of this concept emphasized coercion, limited controls, hazards and penalties. Over time it generates low performance, subtle sabotage as well as competition (Deal, 2003). The scenario at Wideopenwest Financing The Knology Acquisition is not totally following Concept X, it can be seen that new hires are discovering this environment rather demanding which may ultimately lead to a higher inclination of the monitoring in the direction of Concept X. According to McGregor's supported view, which he called Concept Y, the crucial task of the monitoring is to organize organizational problems to make sure that individuals can achieve their very own goals best by routing their initiatives towards business incentives. If individuals find no complete satisfaction in their work, the administration would have little choice but to rely on concept X and outside control (Bargain, 2003). Even while assessing Lewis's monitoring design, concept X may have been suitable in the operations division to some extent but the Advertising division would certainly call for dependence on Concept Y so as to get the creativity as well as originality from the groups.

Tuckman's Teamwork Theory: As far as Lewis's concern concerning bringing harmony between the advertising and marketing department is worried, this would at first result in clash as talked about by Bruce Tuckman in his 'Team effort Theory'. (Tuckman, 1965). Based on Tuckman's concept received appendix 3, during the preliminary phase of team growth, individuals may not bond, as they are hectic locating their location in the team. By integrating the marketing and advertising department's job, there may be the same preliminary disconnect which can result in the second phase of 'storming' where the teams test each other. It is only during the third phase or 'norming' when they would come with each other to share ideas prior to the team can bring around synergy in the 4th phase 'doing'.

Bridges' Change Design: Based On William Bridge's theory (appendix 4), individuals are quite unpleasant with adjustment, which is noticeable by the circumstance at Wideopenwest Financing The Knology Acquisition The circumstance can be seen as a normal course of life if is examined according to Bridge's concept where he clarifies that individuals undergo 3 phases of shift when they experience change. 'Closing, losing and also Releasing', The Neutral Area and 'The New Beginning' (Bridges, 2004). When people exist with modification, they go into stage one therefore there may be emotions like sadness, unpredictability, frustration, anger, worry, denial and disorientation.The circumstance at the advertising division of Wideopenwest Financing The Knology Acquisition is similar so Lewis can obtain comfy with the suggestion that it is not phenomenal habits. In the 2nd stage, there may be a need to connect the void between the brand-new and also old society so Lewis may have to face this experience as soon as Krasnow leaves. There might be low spirits as well as low productivity at this stage which must not be taken as a setback. It is during this stage that Lewis will need to provide advice to the department so that they can locate an orientation. It can be seen how Krasnow has actually already made this shift easier by making Lewis obtain associated with the division a year before his real separation. Based on Bridges' Model, stage 3 will certainly produce openness to knowing, High energy and also dedication as individuals will certainly embrace the adjustment (Bridges, 2004).
Vrio Analysis
Maslow's Demand pecking order: The OB concern related to insecurity at the office has been activated firstly by the modification in management as well as secondly by the reality that the merging will certainly no longer be initiated. Abraham Maslow in his Theory of 'Needs Pecking order' (appendix 5) has talks about the value of 'safety needs as being a reduced level demand of a human for activating inspiration. As seen in the pyramid cooperated appendix 3, we can see exactly how 'the need to really feel safe and unharmed' goes to the 2nd degree of needs. Prior to a worker can be made to establish emotionally, he needs to have his 'Physiological 'as well as 'Security' requires fulfilled. This indicates that unless the employees are made to really feel protected concerning their existing employment status in Wideopenwest Financing The Knology Acquisition they might not get to 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Wideopenwest Financing The Knology Acquisition Case Study

Ramification of Analysis.

The OB analysis has actually taken a look at various theories to understand how to manage the existing situation at hand. The complying with 3 options have been suggested to aid Lewis deal with the business challenges in the marketing division. Each of these alternatives has actually been suggested for alleviating the shift needed to bring the advertising and marketing department in accordance with the requirements of the market and also for making the cultural modification that would follow once the current leader leaves.

Combination of advertising and marketing features. Separating Adverting and Manufacturing functions. Assimilation of Marketing with Workflow.

Analysis of Alternatives.

Integration of Marketing & Advertising Functions: The in-house advertising firm of Wideopenwest Financing The Knology Acquisition is currently stamina for the company in terms of saving up on overheads connected to marketing and also promotion. Because no new recruitment has been done after Bridget Cole's departure with the coverage line being directly appointed to Krasnow for the advertising and marketing function, this is a beneficial possibility for incorporating the marketing and advertising features. Judith Shapiro who has actually earlier been spoken with by Lewis during the earlier merging days has know-how in business-to-business advertising and marketing along with firm and retail advertising experience. Once Krasnow leaves, Lewis can employ Shapiro as an EVP for advertising and marketing to deal with both advertising and marketing features.

The benefit of this technique is that it will certainly integrate both features while reducing the need for hiring an additional source for marketing. Lewis would be heading the marketing department and in any kind of case her replacement would certainly be required for the existing duty that she is executing. The negative aspect of this choice is that external hiring might cause bitterness from internal employees that may be looking at the setting of EVP after Lewis takes control of Krasnow's position.

Dividing Adverting and Manufacturing: Given the competitive pressures and also excellent quality work required from the advertising agency, it is recommended that Lewis should enable the production system to be a different feature from the advertising unit. Given that most advertising agencies had these 2 features as separate devices, it makes more feeling to adhere to the norm. Both functions may be able to concentrate on their core activates extra effectively. However, the negative aspect of this technique would certainly be that added prices would have to be borne for setting up separate production features. A manufacturing head may have to be worked with which might raise overheads for the company.

Assimilation of Marketing with Workflows: Considering that Lewis is currently taking care of the advertising and procedures divisions simultaneously; it makes sense to integrate the 2 functions because she has actually been efficiently taking treatment of both ends. The fact that Lewis has to adapt her monitoring style for the advertising and marketing division recommends that these 2 departments would certainly be culturally varied.


An examination of the three alternatives suggests that combination of marketing as well as operations would certainly not be a feasible relocation due to the huge distinctions in between the two divisions regardless of the reality that currently Lewis is dealing with both. While separation of the manufacturing feature might have been a positive relocation for the marketing department, the fact that it would certainly indicate positioning a third feature under Lewis's wing suggests this ought to be stayed clear of.

Activity Plan.
Lewis will certainly take control of the duty of EVP Marketing after Krasnow leaves.

Advertising and Marketing features would certainly be merged.

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

Manufacturing feature will remain component of advertising and marketing under advertising function.

Lewis will certainly divide herself from operations.

A democratic leadership style with worker empowerment will certainly be utilized in marketing department.

Open up door plan and focus on cross departmental communication will certainly be focused on eliminating disharmony.

Contingency plan.

If the combination does not work out as planned, a contingency strategy would certainly adhere to which would divide the manufacturing feature from the advertising function to decrease the tons on the SVP of marketing and advertising. In case Judith Shapiro does not get worked with, Lewis will certainly be heading the advertising department without an SVP. Because case the production function will absolutely be divided by positioning it under an SVP manufacturing.