Stick to the Core–Or Go for More? – Case Solution

Case questions answered:

Not the questions you were looking for? Submit your own questions & get answers.

Stick to the Core--Or Go for More? Case Answers

Executive Summary – Stick to the Core–Or Go for More?

Advaark is a fair size firm with yearly billings of $550 million. It is a New-York based ad agency, primarily focusing on the creative implementation of ad campaigns. It has 400 representatives and attempting to get into the counseling field.

The firm was established by George Caldwell and Ian Rafferty, who is also the co-founder of the organization. Advaark has its center competency in creative advertisements. Over time, they had picked up great clients like GlobalBev, a multibillion-dollar organization known for its food and drinks.

Eventually, George Caldwell and Ian Rafferty assembled trust and long-haul relationships with their clients in light of their past involvement. They had been known for promoting organizations for a very long time and for creating remarkable advertisements.

Because of this successful interaction with clients, the company has set an upper hand in the industry it is in. While the company is known for this expertise, it is hard for them to move and establish another business.

Advaark is looking into moving to the strategy counseling field. But this might seem a risk for the company as it has no skill in starting another business, and it may bring about disappointment.

Ian Rafferty, co-founder of the company, is a visionary. He is overzealous of taking a stab at more opportunities and considering fulfilling clients and current employee needs. He thinks that with the changing times, the company needs to change too.

George Caldwell, cofounder of Advaark, is a sharply focused man focusing on the way the organization is and has operational skills. He is of the stand that the company should stick to where they are now and focus on improving their services.

Problem Statement

Advaark has been focusing on the advertising needs of its clients and has been successful in doing so. Should the company embark on the strategic management field? Or should it just focus on what they do best and improve its processes? Hence, the question: “Stick to the Core–Or Go for More?”

Advaark is generally managing prominent clients. It may raise a ruckus because Advaark doesn’t have any information about the strategic management field. Advaark offered a fresh out of the box new assistance out of their capability. They may lose their strategic focus failure will bring about a long haul in their customer relationship.

Caldwell accepts that if he permits Rafferty to step into strategic management, the executives would be hard for current employees to adapt to the new government or framework, including creative skills and essential management abilities.

Possible Alternatives

I.  Stick to the core. The organization should focus on its strengths and what they can do best. This way, they can gain more customers and brand equity in the market.

II. Even without expertise in any particular field, the organization could work on various projects to gain the required expertise and reputation, which is necessary to succeed.

III. The organization can put in high efforts and capital to concentrate on the other core businesses. They can hire experienced people for expansion into new businesses.

Pros and Cons of Alternatives

Without all the interruptions of building, overseeing, and selling various items, they can zero in on their…