Qihoo Case Study Analysis


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Qihoo Case Study Solution

Background and Facts

Qihoo a workplace supplies retailer for tiny and also average sized organisations has actually recently been involved in planning for a merging with its competitor Residence Deport, which has impacted performance degrees in departmentswith the senior manager associated with lawful issues put forth by the government Profession Payment. With the Advertising and marketing Head advancing the news of his separation from the business in one year, Jeannie Lewis, the current head of operations has actually been asked to take the function in the near future. With challenges in the kind of a potential cultural modification and also low worker spirits, the organization needs a full reengineering effort at the advertising and marketing department.

Problem Declaration
Porter's 5 Forces Analysis
The potential social modification at the advertising and marketing division of Qihoo is increasing uncertainty in the working environment bring about different obstacles for the Jeannie Lewis that would be changing the head of the division in one year. nalysis

PEST analysis

Political Factors: Political factors play a major function in impacting strategic choices given that Stapes Inc. had to desert its strategies of combining with Office Deport after the Federal Profession Commission's intervention while doing so. Offered the truth that the store has a worldwide visibility with branches in UK, U.S.A., Canada as well as Germany, political consider each of these countries may have the ability to impact performance or critical objectives. Federal Trade Payment's antitrust match against the merging used up useful time of the company's elderly monitoring recommending that 'political' factors can have major effects for a worldwide business.

Economic Factors: Economic factors such as the appearance of small companies in the global scenario recommend that Qihoo is growing in an atmosphere where there is prospective growth of businesses. Reality that store consumers are mostly looking for office products for residence offices recommends that the market has an increasing trend of business owners as well as home based companies.

Social factors: Social fads in the economy show that customers are searching for convenience in addition to appealing prices. Marketing research demonstrates how the customer for Qihoo lacks understanding regarding finding remedies which can supply a combination of comfort as well as low costs.

Technological factors: Innovation plays an essential function in Qihoo's business approach specifically as the organization is piloting Modern technology centers which would certainly use innovation sales and assistance in the kind of memory upgrades, outer installations. (Recap of BUG in appendix 2).

OB Issues and also Symptoms.

Numerous underlying Organizational Behavior issues can be seen in Qihoo's case as highlighted in this section.

Worries concerning social modification: There is apprehension about a cultural adjustment that would take place when Todd Krasnow leaves from his setting as the Executive Vice President of Advertising And Marketing with most of the personnel already revealing unhappiness over this prospective relocation. This anticipated change has actually produced anxiety in the office which has actually been paired with the previous anxiety of preparing the firm for a possible merging with Home Deport.
Pest Analysis
Difficult Work Atmosphere for Newcomers: There is shortage of employees that can match the demanding setting of a busy company. Not only does this lead to trouble in finding the appropriate individuals, it places stress and anxiety on new hires as can not stand up to the speed and stress that the company anticipates them to birth.

Double Reporting Lines: Novices discover this organizational society cumbersome and also challenging to handle specifically as dotted line partnerships are indicated to be weak as a whole as well as objective setup and also performance assessment is still done by the solid line supervisor. This means that newbies might lose clearness about their respective roles and goals especially as dotted line coverage does not maintain them in straight interaction with the solid line supervisors.

Resentment From Cross Departmental Hiring: Krasnow's choice to make Lewis his successor instead of Bridget Coles even though it had actually been hypothesized that the last would certainly take Krasnow's position came as an impact to her morale. Lewis might have been capable and appropriate for the work yet the truth that Kransnow's departure would certainly make Coles a direct record to Lewis may have been the reason for Coles' resignation from services.

Worry & Work Instability: Concern and also insecurity can be determined as two major worries that Lewis would certainly be managing specifically as the merging has now be terminated and two elderly executives of the advertising and marketing department would be leaving. The entire responsibility of the division would certainly be falling on Lewis's shoulders that would certainly not simply supervise of brining concerning a social modification yet would certainly likewise have to show herself in her new function.

Incompatible Monitoring Style of Leader: Lewis's management style and its conflict with the advertising and marketing division's role can additionally be seen as an OB difficulty particularly as she has actually been made use of to taking care of concerns in the procedures division where employees are taught to concentrate on processes and get them. The marketing department on the other hand can be seen as a team of people who are used to being supported by Krasnow who focused a lot more on output than procedures.

Interdepartmental Disputes: Interdepartmental disputes in between 3 departments, marketing, merchandizing and also operations respectively over the appropriation of the advertising mix can be recognized as an additional OB problem. The marketing division does not share the same vision as the various other two departments relating to the aloocation of the marketing mix twoards promos as well as advertsing, the merchandizing as well as procedures divisions do not concur over the advertising and marketing mix allotment among one an additional either.

Fragmentation in Advertising And Marketing Division: Disintegration in between the advertising and marketing departments can be determined as one more OB issue which can need further interest. The fact that the advertising and marketing sections in the marketing department are disconnected is preventing both divisions from gaining from each various other's experience and proficiency. Integration of advertising and marketing with merchandising and also procedures would become harder if the advertising and marketing division itself is degenerated which can be another potential OB problem.

Qihoo Analysis

Various concepts have been used to describe the conditions to obtain additional clearness regarding the scenario available.
Swot Analysis
McGregor's Concept X & Y: According to Douglas McGregor's Theory X, many supervisors believe that staffs are easy as well as careless, have little passion and also stand up to adjustment. The situation at Qihoo is not entirely complying with Theory X, it can be seen that brand-new hires are locating this setting rather demanding which might eventually lead to a higher inclination of the management in the direction of Concept X. Also while analyzing Lewis's administration style, theory X might have been ideal in the operations division to some level but the Advertising and marketing department would certainly require reliance on Theory Y in order to get the creative thinking and originality from the groups.

Tuckman's Teamwork Concept: Regarding Lewis's problem concerning bringing harmony between the advertising and marketing department is concerned, this would at first bring about clash as talked about by Bruce Tuckman in his 'Synergy Theory'. (Tuckman, 1965). According to Tuckman's concept received appendix 3, throughout the initial phase of team advancement, people may not bond, as they are hectic finding their place in the group. By combining the advertising and marketing department's work, there may coincide first detach which might result in the 2nd phase of 'storming' where the teams challenge one another. However, it is only throughout the third phase or 'norming' when they would certainly integrate to share ideas before the team can produce synergy in the fourth phase 'performing'.

Bridges' Transition Version: As per William Bridge's concept (appendix 4), people are quite awkward with adjustment, which is obvious by the scenario at Qihoo The scenario can be viewed as a normal course of life if is examined according to Bridge's concept where he explains that people experience three stages of change when they experience change. 'Ending, shedding and also Letting go', The Neutral Area as well as 'The New Beginning' (Bridges, 2004). When people are presented with modification, they get in stage one therefore there may be emotions like unhappiness, unpredictability, aggravation, temper, fear, denial and disorientation.The situation at the marketing division of Qihoo is comparable so Lewis can get comfortable with the suggestion that it is not extraordinary habits. In the 2nd stage, there may be a need to bridge the void between the new and also old culture so Lewis might have to encounter this experience as soon as Krasnow leaves. There might be reduced morale and low productivity at this stage which should not be taken as an obstacle. It is throughout this phase that Lewis will certainly need to provide guidance to the department so that they can find an orientation. It can be seen how Krasnow has already made this shift less complicated by making Lewis get associated with the department a year before his real departure. According to Bridges' Version, phase 3 will certainly cause visibility to discovering, High power and commitment as people will embrace the modification (Bridges, 2004).
Vrio Analysis
Maslow's Demand hierarchy: The OB problem pertaining to insecurity at the work environment has been caused firstly by the change in management as well as secondly by the fact that the merger will certainly no more be initiated. Abraham Maslow in his Concept of 'Needs Hierarchy' (appendix 5) has discusses the relevance of 'safety requires as being a lower degree need of a human for setting off motivation. As seen in the pyramid shared in appendix 3, we can see just how 'the demand to feel secure as well as out of danger' goes to the 2nd degree of demands. Before a staff member can be made to create psychologically, he requires to have his 'Physiological 'as well as 'Safety' needs fulfilled. This suggests that unless the personnel are made to feel protected about their existing employment status in Qihoo they may not reach 'Self-Fulfillment'. (King, 2009).

SWOT Analysis for Qihoo Case Study

Effects of Analysis.

The OB analysis has taken a look at various concepts to recognize how to cope with the current circumstance handy. The adhering to three choices have been recommended to help Lewis handle the organizational challenges in the advertising division. Each of these choices has been recommended for relieving the change required to bring the advertising and marketing department in accordance with the requirements of the market and also for making the social modification that would certainly comply with when the current leader leaves.

Integration of marketing and advertising functions. Separating Adverting and also Production functions. Combination of Marketing with Procedures.

Examination of Alternatives.

Integration of Marketing & Advertising Functions: The in-house marketing firm of Qihoo is currently strength for the organization in regards to saving up on expenses connected to marketing and promo. Given that no brand-new recruitment has been done after Bridget Cole's separation with the reporting line being directly appointed to Krasnow for the advertising feature, this is a positive possibility for integrating the advertising and marketing features. Judith Shapiro that has earlier been interviewed by Lewis throughout the earlier merging days has experience in business-to-business advertising in addition to firm and retail advertising and marketing experience. As soon as Krasnow leaves, Lewis can hire Shapiro as an EVP for advertising and marketing to take care of both advertising and marketing functions.

The advantage of this method is that it will certainly integrate the two features while lowering the need for working with an extra resource for advertising and marketing. Lewis would be heading the advertising and marketing division and also in any type of case her substitute would be required for the present role that she is doing. The negative aspect of this alternative is that exterior hiring might produce bitterness from internal employees who may be considering the setting of EVP after Lewis takes over Krasnow's position.

Dividing Adverting and also Manufacturing: Provided the affordable pressures and high top quality job called for from the advertising and marketing agency, it is advised that Lewis ought to permit the production unit to be a different feature from the advertising system. Considering that a lot of advertising and marketing agencies had these 2 functions as separate units, it makes even more feeling to follow the standard.

Assimilation of Advertising And Marketing with Procedures: Considering that Lewis is currently taking treatment of the advertising as well as operations divisions concurrently; it makes feeling to integrate the two functions given that she has been effectively taking care of both ends. The fact that Lewis has to adjust her monitoring design for the advertising and marketing division recommends that these 2 departments would be culturally varied.


An analysis of the three choices indicates that assimilation of advertising as well as procedures would certainly not be a possible relocation due to the substantial distinctions between both divisions despite the fact that presently Lewis is handling both. While separation of the production function may have been a beneficial relocation for the advertising division, the truth that it would certainly mean putting a 3rd function under Lewis's wing implies this ought to be avoided too. The integration of the advertising department is the most effective choice in terms of obtaining the ideal arise from the department. An action plan for this option is gone over listed below.

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

Advertising and Marketing functions would certainly be combined.

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

Production function will stay part of marketing under advertising feature.

Lewis will certainly divide herself from operations.

An autonomous management style with worker empowerment will certainly be made use of in advertising and marketing division.

Open door plan and also emphasis on cross departmental interaction will be focused on eliminating discord.

Contingency strategy.

If the assimilation does not work out as intended, a backup plan would certainly adhere to which would divide the manufacturing feature from the advertising and marketing feature to decrease the lots on the SVP of advertising and marketing. In case Judith Shapiro does not get employed, Lewis will certainly be heading the advertising department without an SVP. In that case the production function will absolutely be separated by placing it under an SVP production.