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Harvard Case - Lark International Entertainment Ltd. (A)

"Lark International Entertainment Ltd. (A)" Harvard business case study is written by Linda A. Hill, Jennifer M. Suesse. It deals with the challenges in the field of Organizational Behavior. The case study is 24 page(s) long and it was first published on : Aug 10, 1998

At Fern Fort University, we recommend Lark International Entertainment Ltd. (Lark) to implement a comprehensive change management strategy focused on fostering a collaborative and innovative organizational culture. This strategy should prioritize employee engagement, leadership development, and a clear vision for the future, all while addressing the challenges of managing a diverse and geographically dispersed workforce.

2. Background

Lark International Entertainment Ltd. is a rapidly growing company with a diverse portfolio of entertainment businesses. The company's success has been built on the entrepreneurial spirit of its founder, David Lark, and his ability to identify and capitalize on emerging trends in the entertainment industry. However, as Lark expands internationally and faces increased competition, the company is struggling to maintain its entrepreneurial culture and adapt to the changing landscape.

The case study highlights several key challenges:

  • Organizational Culture: The company's culture, once characterized by agility and innovation, is becoming increasingly bureaucratic and siloed.
  • Leadership: David Lark's leadership style, while effective in the early stages, is now perceived as autocratic and resistant to change.
  • Communication: Information flow within the organization is fragmented, leading to misunderstandings and missed opportunities.
  • Talent Management: Lark struggles to attract and retain top talent, especially in its international operations.
  • Decision Making: Decision-making processes are slow and cumbersome, hindering the company's ability to respond quickly to market changes.

3. Analysis of the Case Study

To understand Lark's challenges, we can utilize a framework that considers both internal and external factors:

Internal Factors:

  • Organizational Culture: Lark's culture is transitioning from a highly entrepreneurial, informal environment to a more formalized, bureaucratic one. This shift is driven by the company's growth and the need for greater structure. However, it has led to a loss of agility and innovation, creating a sense of disengagement among employees.
  • Leadership: David Lark's leadership style, while effective in the early stages, is now perceived as autocratic and resistant to change. This leadership style is hindering the company's ability to adapt to the changing market and foster a culture of innovation.
  • Team Dynamics: The company's organizational structure is siloed, leading to a lack of collaboration and communication between departments. This hinders the company's ability to leverage its diverse talent pool and respond effectively to market challenges.
  • Motivation Theories: The company's current reward system is largely based on individual performance, which can lead to competition and a lack of collaboration. This needs to be re-evaluated to foster a culture of teamwork and shared success.

External Factors:

  • Competition: The entertainment industry is highly competitive, with new players emerging constantly. Lark needs to be agile and innovative to stay ahead of the competition.
  • Globalization: Lark's international expansion requires the company to adapt to different cultural norms and business practices. This presents challenges in terms of communication, leadership, and talent management.
  • Technology: The rapid evolution of technology is constantly changing the entertainment landscape. Lark needs to invest in new technologies and adapt its business model to remain competitive.

4. Recommendations

To address these challenges, Lark needs to implement a comprehensive change management strategy that focuses on:

1. Cultivating a Collaborative and Innovative Culture:

  • Leadership Development: Invest in leadership development programs for all levels of management, focusing on fostering a collaborative and empowering leadership style. This should include training on emotional intelligence, conflict resolution, and communication skills.
  • Employee Engagement: Implement initiatives to increase employee engagement, such as employee surveys, feedback mechanisms, and recognition programs. This will help identify areas for improvement and foster a sense of ownership and responsibility.
  • Cross-Functional Teams: Encourage collaboration between different departments by forming cross-functional teams to work on specific projects. This will help break down silos and foster a culture of innovation.
  • Open Communication: Establish clear communication channels and encourage open communication at all levels of the organization. This will help ensure that information flows freely and that employees feel heard.

2. Embracing Diversity and Inclusion:

  • Hiring and Recruitment: Implement a diverse hiring strategy that focuses on attracting and retaining talent from different backgrounds and cultures. This will help create a more inclusive and innovative workplace.
  • Cultural Sensitivity Training: Provide cultural sensitivity training to all employees, especially those working in international operations. This will help them understand and navigate different cultural norms and business practices.
  • Mentorship Programs: Establish mentorship programs to support employees from diverse backgrounds and help them navigate the company culture.

3. Adapting to Technological Advancements:

  • Technology Investment: Invest in new technologies that can help Lark improve its efficiency, reach new audiences, and stay ahead of the competition.
  • Data Analytics: Leverage data analytics to understand customer behavior, market trends, and competitor activity. This will help Lark make informed decisions and develop effective strategies.
  • Digital Transformation: Embrace digital transformation across all aspects of the business, from production to marketing and distribution.

4. Strengthening Decision-Making Processes:

  • Empowerment: Empower employees at all levels to make decisions within their areas of expertise. This will help accelerate decision-making and increase employee engagement.
  • Data-Driven Decisions: Encourage data-driven decision making by providing employees with access to relevant data and analytics tools.
  • Regular Reviews: Implement regular reviews of decision-making processes to identify areas for improvement and ensure that they are aligned with the company's strategic goals.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core competencies and consistency with mission: The recommendations are aligned with Lark's core competencies in entertainment and its mission to provide high-quality entertainment experiences.
  • External customers and internal clients: The recommendations aim to improve customer satisfaction by providing better products and services and to increase employee engagement and satisfaction.
  • Competitors: The recommendations are designed to help Lark stay ahead of the competition by fostering a culture of innovation and agility.
  • Attractiveness: The recommendations are expected to have a positive impact on Lark's financial performance by increasing efficiency, reducing costs, and expanding market share.

6. Conclusion

Lark International Entertainment Ltd. faces significant challenges as it navigates a rapidly changing and increasingly competitive entertainment landscape. By implementing a comprehensive change management strategy that focuses on fostering a collaborative and innovative culture, embracing diversity and inclusion, adapting to technological advancements, and strengthening decision-making processes, Lark can position itself for continued growth and success.

7. Discussion

Alternative approaches to address Lark's challenges include:

  • Mergers and Acquisitions: Lark could consider acquiring smaller companies with specialized expertise or innovative technologies to expand its reach and capabilities.
  • Strategic Partnerships: Lark could form strategic partnerships with other companies in the entertainment industry to share resources, expertise, and market access.

However, these options carry risks, such as integration challenges, cultural clashes, and potential loss of control.

Key Assumptions:

  • The recommendations assume that Lark's leadership team is committed to change and willing to invest in the necessary resources.
  • The recommendations assume that employees are receptive to change and willing to embrace new ways of working.

8. Next Steps

To implement these recommendations, Lark should:

  • Form a Change Management Team: Assemble a cross-functional team to lead the change management process.
  • Develop a Communication Plan: Create a clear and consistent communication plan to keep employees informed about the changes.
  • Pilot Programs: Pilot new initiatives in specific departments or locations before rolling them out company-wide.
  • Measure Progress: Track progress towards achieving the desired outcomes and make adjustments as needed.

By taking these steps, Lark can successfully navigate the challenges of growth and maintain its position as a leader in the entertainment industry.

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Case Description

Two HBS MBA's leave McKinsey and Morgan Stanley to become entrepreneurs in Hong Kong. Together they start up a cinema chain throughout Asia. This case describes the experiences of managing a team in their Wuhan, China cinema. Looks at the challenges of managing growth in an entrepreneurial venture in an emerging market; leading a multicultural team; and coping with headquarter-field relationships.

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