Prisma Report

8/12/2019 Prisma Report

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STRATEGIC ANALYSIS OF

PRISMA ADVERTISING

A report Submitted to

Mr. Saroj Mishra

Course facilitator, MBA

Strategic Management

Submitted by:

Bed Prasad Adhikari

Kunal Kumar Singh

Om Kumar Gupta

Ritesh Ghimire

Sharmilli Shrestha

Sunita Pand it

Manikkya

9th June, 2014


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Table of Contents

Acknowledgement

Chapter I ....................................................................................................................... 1 - 2

INTRODUCTION .............................................................................................................. 1

1.1 Background of the Study .............................................................................................. 1

1.2 Objectives of the Study ................................................................................................. 1

1.3 Methodologies of the Study .......................................................................................... 1

1.4 Limitations of the Study................................................................................................ 2

Chapter II ................................................................................................................... 3 - 18

DISCUSSION AND ANALYSIS...................................................................................... 3

2.1 Company Overview ...................................................................................................... 3

2.2 Company Mission ......................................................................................................... 4

2.3 Company ethics and social responsibility .................................................................... 4

2.4 Internal Analysis ........................................................................................................... 4

2.4.1 Value Chain Analysis .......................................................................................... 5

2.5 External Environment ................................................................................................... 9

2.5.1 Remote Environment ........................................................................................... 9

2.5. 2 Porters five force model ................................................................................... 10

2.5.3 Strategic group map ........................................................................................... 13 2.6 Strategic Analysis and Choice ................................................................................... 14

2.6.1SWOT Matrix ..................................................................................................... 14

2.6.2 Long term objectives.......................................................................................... 16

2.6.3 Short term objectives ......................................................................................... 16

2.6.4 Generic and Grand Strategies .......................................................................... 16

2.6.5Functional Tactics ............................................................................................... 18

2.6.6Policies that empowers action ............................................................................. 18

2.7 Restructuring, reengineering and refocusing ............................................................. 19

CHAPTER III ................................................................................................................. 22

CONCLUSION AND RECOMMENDATION ............................................................... 22

3.1. Conclusion ................................................................................................................. 22

3.2 Recommendation ........................................................................................................ 23


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List of figures

1. Strategic Group Map 12

2. SWOT Matrix ... 14

3. Grand Strategy Cluster ..... 16

4. Organizational Structure .. 18

5. Managing the strategy- culture relationship ..... 19


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CHAPTER I

INTRODUCTION

1.1 Background of the Study

The following assignment talks about the strategic management in context to Prisma

Advertising. Strategic management is one of the critical issues to be studied by a

company in order to understand the causes and solution of the problems and hurdles in

the way of the success of the business and its market growth. As we all know that it is a

world of globalization and competition and therefore every company has to make

certain plans and strategies in order to tackle the problems they face due to the

competition in the local and global markets. Every company has to make effectivestrategies and plans in order to tackle the internal and the external problems faced by the

company. Internal problems can be linked with any internal department and also the

external challenges. It gives benefits to the company to explore new markets and

increase its customers in order to make more profits and it also poses different problems

and challenges which the company has to tackle to continue its success in the new

markets. A company has to design proper strategic plan to point out and tackle the

problems curbing the success of the business . This assignment will discuss the various

strategic issues of concern for the Prisma Advertising and plans it has designed to

tackle these problems.

1.2 Objectives of the Study To analyze the current strategy followed by the organization To find out the gap between the existing strategy and the implementation process To develop and recommend the potential strategy for the organization

1.3 Methodologies of the Study

The study was conducted using the primary and secondary methods. Under the primary

method, we conducted the interview with Mr. SharadShahi, Associate Director of Client

Services and Mr. Hari Narayan Sharma, Creative Coordinator of Prisma Advertising.


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Under secondary method, various information were collected from the website of the

organization and several articles published in different newspapers.

1.4 Limitations of the Study The information from the organization were collected in a limited time frame. Due to the reason of confidentiality, few internal information could not be obtained. The information was collected from a limited source; as other department head could

not be consulted.


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CHAPTER II

DISCUSSION AND ANALYSIS

2.1 Company Overview

Prisma is an associate agency of Ogilvy & Mather Worldwide with access and

involvement on projects of O&M client group. More importantly the association exposes

the agency to extrinsic information, understand ing and experience through the vast

resources of O&M corridor in any region. Established in 1991, it has been in the

forefront of professional communication management in Nepal. With a coveted list of

blue chip clients, most of who are multi-national corporations, Prisma has effectively

provided communication solutions as marketing support to a plethora of brand s andservices. Prisma also has its share in providing communication support to a good

number of social marketing product campaigns either directly or in association with

strategic partners. Prisma carries its distinction with a 360-Degree Brand Stewardship

approach on assignments.

Prisma starts considering the assignment with a comprehensive approach and provide

not only strategic solutions but also support with logistics for integrated implementation

of the plan. To fructify such goals, naturally the agency annexes strategic partnership

drawn among the proven players in specific operational areas to synergize the approach

with supports on above the line inputs and below the line inputs, and providing

marketing support logistics in market research, merchand ising, consumer and trade

promotions.

Prisma draws its strength from a convergence of a deep understand ing of the task,

backing it with a strategic approach to support brand marketing objectives and powering

it with 100 percent involvement. The silver line of their achievements is our flexibility to

work in strategic alliance with other specialized groups and bodies to impart logical

benefits to clients market objectives.

Prisma has an army of 45 full-time personnel in areas of management, creative, media

and merchand ising support, besides an auxiliary support group of promotion and

research personnel, quality suppliers, fabricators and printers.


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2.2 Company Mission

To value those who value their br and s.

The above mission statement does not include all or most of the attributes that a good

mission statement should possess, so we have recommended the possible alternative

mission statement for the firm which includes most of the required attributes:

To use advanced technology for providing innovative, result -oriented and ethical

advertising services for our clients of the world who value their brand s and to promote

excellence by providing opportunities for growth and enrichment to our employees and

society.

2.3Company ethics and social responsibility

It is important to note that ethics and CSR go hand in hand . In order to understand

CSR, one must also understand ethics. Ethics encompasses corporate social

responsibility. A socially responsible firm should also be an ethical firm and vice versa.

In todays time, business ethics and CSR are no more an option but a necessary practice

for all organizations. Knowing the value and essence, Prisma advertising also hasstarted CSR. Prisma s ethics is always seen on the employees discipline. They wo rk as a

team and always motivate each other in terms of personal development. They give their

priority towards work rather than time. This is the reason employees are always busy

with meeting the deadlines. Similarly, Prisma not only focuses on the revenue but also

bears responsibility towards the society. For this, they have been involved in various

social works and activities. As the CEO Mr. Ranjit Acharya is one of the known

motivational leaders, this has been reflected in the companys step towards society

development.

2.4Internal Analysis

To begin the strategic management process, managers are required to conduct an internal

analysis. This involves identifying the business ' strengths and weaknesses, by analyzing


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its competencies. It also involves managers highlighting the business ' competitive

advantage. For strategies to be effective, the organization must exploit and expand on its

strengths, as well as reduce or eliminate its weaknesses; thus furthering its competitive

advantage, in order to achieve profitability.

The competencies of any business are its resources and capabilities that allow the

business to differentiate itself and its products and services, or reduce its costs, when

compared to competitors. A business ' resources are its assets, which may be tangible

assets, such as equipment or technology, or intangible assets such as brand s, knowledge

and expertise. These resources become valuable to the business , and thus a competence,

when it adds value to the outputs, that is, customers place a positive distinction with the

business and its offerings, over those of competitors.

By effectively identifying the business ' competencies when conducting an internalanalysis, managers are able to identify its strengths and weaknesses, such as process

efficiencies, powerful machinery, or outdated technology, and thus capitalize on these, as

they are to be factored into the strategy formulation process. By utilizing strengths and

eliminating weaknesses, business es are able to gain competitive advantage, which will

be reflected on its profitability.

2.4.1 Value Chain AnalysisValue chain describes a way of looking at a business as a chain of activities that

transform inputs into outputs that creates the value to the customers. It is a process where

a firm identifies its primary and support activities that add value to its final product and

then analyze these activities to reduce costs or increase differentiation. VCA is a strategic

tool used to analyze firms int ernal activities. Its goal is to recognize which activities are

the most valuable (i.e. the source of cost or differentiation advantage) to the firm and

which could be improved to provide competitive advantage. Value chain represents all

the internal activities a firm engages in to produce goods and services. Value chain

comprises of primary activities that add value to the final product directly and support

activities that add value indirectly.


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Similarly, business activities of Prisma Advertising also involve a chain of activities that

is focused on transforming inputs into outputs. These chains of activities are targeted to

create the values to their clients through primary and secondary activities.


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Primary Activities

Primary activities are involved with a products physical creation and services creation;

its sale and distribution to buyers, and its service after the sale. These activities are

termed primary because they add value to the product or those involved in either

producing or selling the product. The primary activities of Prisma Advertising include

the activities such as inbound logistics, operations, outbound logistics, marketing and

sales and services.

Inbound logistics

Inbound logistics refers to the goods being obtained from the organizations suppliers and

to be used for producing the end product. In case of Prisma Advertising, inbound

logistics includes innovation, ideas and creativity. Creative talents are the sources of

those innovation and creativity.

Operations

These involve the activities that help the business to transform inputs into outputs. Raw

materials and goods are manufactured or converted into the final product. Value is added

to the product at this stage as it moves through the production or conversion line. For

advertising agencies, operations activities involve designing, mixing and editing.

Innovative ideas and creativity are transformed into advertising through mixing,designing and editing. Along with computers and other technologies, human mind play

a vital role in the operation activities of advertising agencies.

Outbound logistics

Once the products and service have been manufactured or developed they are ready to be

distributed to distribution centers, wholesalers, retailers, clients or customers.

Distribution of finished goods and services is known as outbound logistics. Media house,

Transportation and meeting deadlines are involved in the outbound logistics of

advertising agency.

Marketing and sales

Itinvolves the identification of the customer needs and the generation of sales activities.

Marketing must make sure that the product is targeted towards the correct customer

group. The marketing mix is used to establish an effective strategy, any competitive


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advantage is clearly communicated to the target group through the promotional mix. The

sales activities of Prisma Advertising involve the activities like advertisement on print

media, TV commercials, radio jingles and organizing events.

Service

It includes the support services that the organization offers to the clients / customers after

the product / service has been sold. The support activities of Prisma Advertising include

counseling services, providing media spaces, rate card and finally giving the feedback to

their clients.

Support Activities

Support activities assist the primary activities in helping the organization achieve its

competitive advantage. The support activities of Prisma advertising involves firm

infrastructure, human resource management, technology development and procurement. Firms Infrastructure

These are a company's support systems, and the functions that allow it to maintain daily

operations. Every organization needs to ensure that their finances, legal structure and

management structure work efficiently and helps drive the organization forward.

Inefficient infrastructures waste resources, could affect the firm's reputation and even

leave it open to fines and sanctions. General management, finance, planning and qualitymanagement are some of the necessary infrastructure that Prisma Advertising isusing to

their advantage.

Human Resource Management

The organization will have to recruit, train and develop the creative talents for the

effective results. Prisma has always focused on enhancing the creativity of its

employees through various training and development mechanism. This enables the

employees to build passion towards their work. This is the reason why the absenteeism is

quite low in their organization. Employees are always motivated to work in an open

space where it provides environment for open discussions. The on the job training and

internship provide employees learning opportunities and adds value to the work being

performed.


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Technology Development

The use of technology to obtain a competitive advantage is very important in todays

technological driven environment. Technology can be used in many ways including

production to reduce cost, for research and development and add value. Research and

development and updated software are very much important for advertising agency like

Prisma .

Procurement

The procurement department source raw materials for the business and obtain the best

price for doing so. The challenge for procurement is to obtain the best possible quality

available in the market within their budget. The procurement of Prisma basically

includes the purchas e of printing materials and media space.

2.5 External Environment

The factors beyond the control of the firm that influence its choice of direction, action,

organizational structure and internal processes are the external factors.

In the competitive advertising industry, we have analyze the external environment with

1. Remote Environment

2. Industry Environment

3. Strategic Group Mapping

2.5.1 Remote Environment

They are the political, economic, social-cultural, technological and ecological factors

that originate beyond, and usually irrespective of any single firms operating situation.

They are explained below:

Political / Legal Environment

Frequent changes in political parties leads to lack of effective policy and regulation

from government

Changes in the advertising rules like recent removal of hoarding boards from the

Kathmand u valley

Economic Environment

The capacity of the business houses to spend on advertising has increased


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Movement of business houses from traditional to modern advertising approach The cost of media spaces has increased

Socio-cultural Environment Changing perception of people towards advertising Increasing culture sensitive attitude in ad agencies Preferences of business houses towards advertisement

Technological Environment

Focus on modern digital advertising Availability of advanced software Use of mass communication technologies and tools like Facebook, mobile, internet

etc.

2.5.2Porters five force model

Bargaining power of suppliers

Suppliers can affect advertising industry through their ability to raise price, quality and

nature of the advertising and promotion related to TV commercials, advertising

campaign, radio advertising and various forms of print media. There are 10-15

advertising houses that affect the performance of overall industry. Supply of spaces for

advertising is limited for advertising houses. The suppliers of the advertising agencies

are different media houses, publication houses and so on. Premium and media spaces

are limited and supply is less as compared to the demand for media spaces. Basically,

Prisma Advertising focuses on print media but there are others various media like online

media, Mobile marketing, and direct contact with customers and so on that affect the

overall advertising industry. There is high possibility of switching because of the

presence of various advertising houses. The switching cost of the suppliers is also very

low as compared to the suppliers of other industry. There are various substitute

advertising tools and advertising houses. Advertising houses play the role of mediator

between the buyers and media houses.

The bargaining power of suppliers is high in the advertising industry because:

Limited number of suppliers are available as supply of media space is lower as

compared to demand for media space


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Switching cost of the suppliers is low There are various substitute advertising tools and advertising houses. Premium and media spaces are limited and supply is less as compared to the demand

for media spaces

Bargaining power of Buyers

Buyers always bargain for higher quality, greater level of service and lower price.

Clients do not only see the cost factor but also see the quality and effectiveness of the

advertising message. Advertising agency have to prove that they can do well and show

the impact of advertisement of the clients perce ption towards the particular product,

brand and company.. Advertising agency like Prisma Advertising have to maintain a

long term relationship with static and reasonable fee and service charge structure.

Clients in advertising industry are less and can demand huge concessions. The pricing of

service vary according to the clients. Similarly, advertising agencies also have to attract

new clients along with the retention of the existing clients. There are few large companies

like Ncell, Unilever, Coca Cola, etc that mainly focus on advertising and spend huge

amount on advertising. The success of advertising agency depends on their impact on the

consumer as a result of advertisement. A buyer or group of buyers has high bargaining

power in advertising industry because:

Number of Clients who can invest huge amount on advertising are few as small business firm cannot spend large amount on advertisement

Switching cost for Clients is very low, They can choose any advertising agency for

their advertisement as per their need and requirement

There is no guarantee that advertising can have good impact on consumer perception

towards that particular product, service, brand and company

Many advertising agencies are offering the same kinds of advertisements services and

messages.

Threat of new entrants

Generally, in the advertising industry, contracts are long termed, and clients are likely to

keep going back to the same advertiser so long as results were obtained the first time. The

seriousness of the threat of entry depends on the barriers present and on the reaction

from existing competitors that the entrant can expect. This risk is lower if there are


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significant barriers to entering the industry, such as regulation, patents or capital

requirements. Threat of new entrants is higher if there is an excessive profit to be earned

or entrance barriers are low. There are no hard and fast rules for the new firms to enter in

the advertising industry. Here are some of the sources that affect the barriers to entry:

Since the advertising industry run based on long term relationships, there will be hard

for new advertising to attract the loyal clients of existing advertising agencies

Attracting, nurturing and retention of creative talents is expensive and challenging Difficult to attain deep connect with regional demographics, behaviors, attitudes and

values

Constraints in getting access to key media channels and space is high Switching cost of existing clients is also not too high.

New entrants have to come up with new and creative ideas that are not available in

the market in order to attract the existing clients of rivals

Government policy towards the new firm registration is also not so strict.

Threats of substitute products

Besides the print media, there are a number of substitutes of an advertising agency.

Considering the main media of advertising, i.e. print media for Prisma Advertising,

possible substitutes include traditional form of media such as newspaper, radio, television

ads, and newer forms such as social media, mobile marketing, web marketing etc.However, in this industry where every form of advertising tools is important as long as it

can effectively reach out to the audience. The constant evolution of technology such as e-

commerce, social media tools etc. offers new channels for forward integration with lower

switching costs.

Rivalry among the competitors

Rivalry among the existing firm exists when two or more firms compete with similar

product and for the same customer group on the basis of price, quality and innovation.

Due to a large number of advertising agencies and limited ad spaces, rivalry among

advertising firms and advertising venue providers is rather high. However, companies

are interested targeted advertising rather than mass advertising. Industry growth of

advertising industry is also not so fast. Large amount of capital is needed to be invested

in infrastructure, creative softwares, and technologies as a result there is also exit barrier


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in some extent. Although, attracting, nurturing and retention of creative talents is

expensive and challenging, advertisement agencies always seek for such creative talents

and even huge amounts for them.

2.5.3Strategicgroupmap

Strategic Group Mapping is an analytical tool used to show different markets / segment

of competitive positions that rival firm occupy in the industry. It is very important to

analyze the industrys competitive structure and identify the strategic groups.

Fig.: Strategic group map

Two strategic groups were identified on the basis of creativity and innovation and client

retention. The first strategic group consists of those advertising agencies which relatively

focuses high on creativity and innovation and client retention. Thomson, Prisma

Advertising and Max Lagance falls under this group and the second strategic group

consists of those agencies which relatively focus low on creativity and innovation and

much on client retention. Business Advantage and Yeti falls under this group. Echo

advertising falls in between these groups.


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In X-axis, we assign Client retention factor of advertising industry whereas in Y-axis

we assign Creativity and innovation. Prisma Advertising lies at the third position

below the Thompson and Max Lagance. The figure depicts that there are still some

rooms for improvement to reach the top position. Prisma needs to focus more in the

client retention along with the providing proper incentives and growth opportunities.

2.6 Strategic Analysis and Choice

2.6.1 SWOT Matrix

SWOT analysis is a technique through which manager create a quick overview of a

companys strategic situation. Manager try to overcome treats by using its existing

strengths and exploit opportunities provided by environment to overcome existing

internal weaknesses. SWOT matrix might take managerial planning discussions into a

slightly more structured approach to aid strategic analysis for any business houses like

Prisma Advertising.

Strengths

Well established and experienced Reputed and more number of clients

Number of employees Awards and recognition Creativity

Weaknesses

High employee turnover Changing position and responsibilities

Time pressure

Opportunities

Internet marketing Development of various communication media Availability of easy and effective advertising tools


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Possibilities of investment in media houses through vertical integration Increasing use of advertising as a tool to increase the sales and brand image Development of new advertising related technology Newmarketsegmentswherethatarelotofgapsto be served

Threats

Highnumberofcompetitorsinadvertisingindustry Ease of entry Politicalinstabilitiesand insecurity Lackofpoliticalwillingnessand supporttoadvertisingindustry High switching cost and exitbarriers Demand - Supplyimbalances Less number of huge spendersonadvertisements

Fig. 2:SWOTmatrix

Accordingtoourstudieswecameupwithdifferentstrengths,weaknesses,opportunitiesand

threatsforPrisma Advertising.ThroughourdetailstudieswecametoknowthatPrisma


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Advertisinghas substantialstrengthsand

promisingopportunitiesincomparedtoweaknessesand

threats.So,itfallsunderthequadrantwhereithas substantialstrengthsand

opportunitieswhereithas

beenfollowingtheaggressivestrategy.Thus,wewouldliketosuggestPrisma

Advertisingtocontinuetofollowaggressivestrategy.

2.6.2Longtermobjectives

Prisma

advertisingaresomuchfocusedtowardsmeetingtheirshorttermobjectivesthattheyhavenotyetf

ormulatedanyconcretelongtermobjectives.Butaccordingtotheanalysisdrawnfromtheintervi

ew,thepossiblelongtermobjectivescouldbeclientsatisfactionandretentionthrougheffectiveand innovativeservices.

Growthintermsofemployees,technology,profitand numberofclients. Competitiveposition Involveinpublicresponsibility Technologicaladvancement

2.6.3Shorttermobjectives Focusedtowardsregularclientsand meetingthedeadlinestosatisfythem Employeedevelopmentand empowerment Creativityand innovation

2.6.4Genericand Grand Strategies

Grand clustermatrix

Acompanycanhavealargenumberofgrand

strategyoptions.Inlookingattheabovefigure,itisworthpointingoutthatPrisma

Advertisingcanpursueseveralgrand

strategyoptionssimultaneouslythatfallsinthecellthatfocusonRapidmarketgrowthand

strongcompetitiveposition.


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Fig. 3:Grand clustermatrix

Currently,Prisma isfocusingontheconcentratedgrowth.Besidesthis,otherGrand

strategicoptionsthatPrisma canfolloware: VerticalIntegration

Prisma

cancoordinatewithdifferentmediahousesforthemediaspaceaswellasitcanworkasthein-

houseadvertisingagencyfordifferentclients.Theefficiencyand

effectivenessoftheworkcanbeenhancedasaresultofverticalintegration.Timeand

moneycanbesavedaswellasitcand

evelopstrongcompetitivepositionalongwithrapidmarketgrowth.

ConcentricDiversification

Prisma cancollaboratewithdifferenttelevisionsand

radiosaswellastheycanfocusmoreinthefieldofmobileadvertising,digitaladvertisingand

onlinemarketing.SincePrisma ismostlyfocusedonprintmediaonly,itcand evelopin-

houseTVcommercials,Radiojinglesand marketingcampaignagencies.


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2.6.5 FunctionalTactics

HumanResources

Thereisagenuineconcernforemployeedevelopment Theorganizationisperceivedasfairand modelemployer Thereareexcellentonthejobtrainingopportunities Thereisacongenialworkingenvironment Lackofhighlysatisfiedand

motivatedworkforceisdepictedthroughhighemployeeturnover

Thereisalowlevelofabsenteeism Safeand salutaryworkingconditionsareprovidedbytheorganization

Finance

Thesourcesoffinanceareagencycommission,servicechargeand creativecharge. Amicablerelationshipwithmediaresultsinsavings Therearenotaxbenefits.

GeneralManagement

Thereisnorewardandincentivesystemforemployeesgearedtotheachievementofobjectives

Thereisahighpropensityofrisktaking Thereisagoodrapportwiththegovernmentand bureaucracy Corporateimageisgoodand favorableduetothelonghistoryoftheorganization Commonlybeingperceivedasgoodorganizationtoworkforonlythosewhoarepassionateto

pursuecareerinthefieldofadvertisement

Effectivemanagementand easyadaptationoforganizationalchangeexists

2.6.6 Policiesthatempowersaction

Thereareseveralpoliciesoftheorganizationwhichhelpstoenhancetheeffectivenessoftheservi

ces.Fore.g.theemployeescannotclaimtheovertimebutcantaketheleaveequivalenttotheoverti


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mehour.Policiesempowermentalsoreducestheconflictintheorganization.Prisma

advertisinghas facedonlytheconstructiveconflictintermsofideagenerationand

execution.ThepoliciesofPrisma haveprovidedpredeterminedanswerstoroutineproblems.

2.7Restructuring,reengineeringand refocusing

Restructuringthefirmconsistsofalteringitsdecision-making,operatingdivisions,and

managementculture.Reengineeringentailschangingtheproceduresbywhichtheworkisaccom

plishedand servicesdelivered.

2.7.1Organizationalstructure

Fig. 4: Organizational Structure

Prisma advertisingisateamof45full-

timepersonnelinareasofmanagement,creative,mediaand merchand

isingsupport.Theorganizationbelievesindevelopingskillsnotonlyinaparticularpositionbuten

couragesgainingknowledgeinoverallfieldofthedepartmenttheyareinvolvedin.Therearevario

usemployeesinvolvedinrespecteddepartmentswhoareresponsibleforexecutingtheservicesfo

rtheclients.

2.7.2Restructuringand Reengineering

Restructuringactionstakeninareastendtoachievefewenduringgains.Downsizingtheworkforc

egeneratesshort-termcostsavings.Prisma

advertisingadoptsthedownsizingstrategyaswellashiresthepersonnelasand

whenrequired.Reengineeringbusiness processcreatesimmediategains,butthegainsareshort-

livedwithoutmuchchangesinperformancemeasures,informationtechnologies,employeeskill

CEO

Creative Client ServicesAccounts and

FinanceAdministration Media PR and Events Below The Line


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s,and organizationalstructure.IncaseofPrisma

,reengineeringismainlyfocusedonfrequentchangesofrolesand

responsibilitiesoftheemployees.

2.7.3Organizationalculture

Theworkplaceenvironmentformulatedfromtheinteractionoftheemployeesintheworkplaceis

verypleasant.Thelayoutofthedepartmentsisformedinsuchawaythattheorganizationencourag

esinteractionsamongtheemployees.Thecultureencourageschangeintheorganizationwithres

pecttothepositionsand

structuretocopeupwiththechangingenvironment.Thecultureisworkbasedwheretheemploye

esprioritizetheirclients.Itisaworkbasedorganizationratherthantimeinordertosatisfytheirclie

nts.Andthisisthemainreasonforhighemployeeturnover.Theorganizationisalsofocusedtowardsrefres

hmentsasapartofculturewheretheemployeesareinvolvedinvariousactivitiessuchas

gamesand annualdayfunctions.Ithas

alsosetaculturewheretheemployeesarefreetodiscussthemattersoftheorganizationdirectlywit

htheCEOaspertherequirements.


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Fig.5: Managing the strategy-culture relationship

Matching culture with strategy depends on two factors: changes in key organizational

factors that are necessary to implement new strategy and potential compatibility of

changes with existing culture. In case of Prisma advertising, there are few changes in key

organizational factors that are necessary to change with existing culture because the

culture of Prisma advertising is dynamic, it changes as per the need of time. The

potential compatibility of changes with existing culture is high in Prisma because it

needs to adopt with the changes and match its strategy with the culture. So Prisma

should focus on reinforcing the culture.


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CHAPTERIII

CONCLUSIONAND RECOMMENDATION

3.1. ConclusionPrisma starts considering the assignment with a comprehensive approach and provide

not only strategic solutions but also support with logistics for integrated implementation

of the plan. Prisma has established as one of the top rated advertising agency through its

continuous effort in creativity and innovation and client retention. The organization is

always seeking for change according to the changing environment. This is the reason

Prisma advertising is upgrading from traditional to modern concept. Today, Prisma has

become one of the top rated advertising agency due to improvements in terms ofimplementing strategy. This has been reflected in its performances grabbing various

awards and recognition in the nation. With the mission of to be valued by those who

values their brand and with the huge team of 45 human talents, Prisma has been

focusing to those clients who have the value of their brand s. Prisma gives no priority to

the competition but watch their clients as the competitive advantages. So service industry

like advertising industry must focus on client satisfaction along with their business goals.

Prisma believe on change and change has always been their priority. So, it can be learnt

from Prisma Advertising that business cannot move ahead without the change. In this

advertising industry, people work for passion and their interest but especially for money.

So, the focus point for any advertising should be on the passion and interest of workers

along with their incentives.

With its glorious history of 24 years in advertising, it has continuously developed itself to

compete in the market. Its glorious long years of history shows that it has struggled a lot

to come up in this position. Prisma believe that the older they get they are becoming more

competent. To establish itself as a recognized advertising agency, the human talents it has

recruited and maintained served as the main pillars for the success of Prisma Advertising

in this industry. With many of the agencies coming in, the supply side of the market has

always been growing. Due to higher supply and increasing bargaining power of the

clients, advertising agency is facing lots of challenges in todays time. But, due to


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continuous challenges, working out for innovation and promoting excellence has helped

Prisma to be one of the most preferred agency in the country.

3.2 Recommendation

There is no doubt that Prisma Advertising has established itself as a major player in the

advertising industry through its continuous effort in creativity and innovation. Its glorious

history shows that it has struggled a lot to come up in this position. Nothing is perfect in

this competitive world. There are always some gaps that need to be recovered for the

betterment. From all our observation of the entire strategic management process of

Prisma Advertising and the interview with Mr. Sharad Shahi, Associate Director, Client

Service and Mr. Hari Krishna Aryal, Creative head of Prisma Advertising, we found

several issues that need to be considered. Following things are recommended for Prisma

Advertising to consider to be best among the best.

Prisma Advertising seems not to be clear in its mission and vision. So, Prisma

advertising need focus more in setting its mission and vision.

Prisma need to be focused on its short term objectives only. So it need to focus more

on its long term objectives that are measurable, understand able, suitable, acceptable,

achievable flexible and achievable

The organizational is completely flat in nature. Every decisions are mostly made byCEO of the organization. So, in absence of CEO or in case of his busy schedule, there

might be the problem in business decision making.

Prisma Advertising is currently based on the print media of advertising. For other

types of services like TV commercial. Different campaigns, Radio jingles etc. it

mainly outsources. So it should develop in-house mechanism to provide all those

services.

From our observation, there is the greater employee turnover in Prisma. For any

service organization, Creative employees are the greatest assets. Creative talents are

always in demand by the rivals organization too. Prisma should focus on managing

and retention of those human talents.

Prisma seems to be less involved in corporate social activities. So, it should focus on

contributing the part of its earning to the society and social welfare.


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There is no favorable employee policy in the Prisma Advertising. There is no

provision of force leave and overtime facilities and other incentives like bonuses for

employees. This might be creating low morale in the employees. So Prisma should

develop the favorable employee policy to motivate and retain its human talents.

During the interview with Mr. Sharad Shahi, Associate Director, Creative Head of

Prisma Advertising, he said that Prisma employees are too busy in serving their

clients and they do not have time to think for other issues of the organization. So,

Prisma should allocate special time like weekly meetings to think and discuss about

the business issues, opportunities, problems and challenges

There are no employee development and motivation programs in Prisma. Prisma

must act responsibly towards its employees and should conduct recreational activities

for its employees

Documents

Prisma Report