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


9
th
June, 2014

Acknowledgement

This report entitled Strategic Analysis of Prisma Advertising is the result of our
deepest effort. While preparing this valuable report, we got various new experiences and
secret understand ings about tools, procedures and insights of advertising agency. We are
very thankful to many individuals who have supported us throughout the preparation of
this report, directly or indirectly.
We would like to express our deepest appreciation and gratitude to our respected
Instructor, Mr. Saroj Mishra, who had continually and convincingly conveyed a spirit of
adventure in regard to this assessment, despite of his busy schedule by giving his
valuable time in helping and supporting us.
We would also thank to Mr. Sharad Shahi, Associate Director of Client Services and Mr.
Hari Narayan Sharma, Creative Coordinator of Prisma Advertising without whomthis
assessment would have been a distant reality.We also extend our heartily thanks to our
college family, well-wishers and friends of entire Manikkya Section-MBA of Apex
College, who directly or indirectly assisted and supported us for the preparation of this
report.


Sincerely,
Group Members


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
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 effective
strategies 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 and
services. 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 brand 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 has
started CSR. Prisma s ethics is always seen on the employees discipline. They work 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 internal
analysis, 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 Analysis
Value 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 internal 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 quality
management 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 perception 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,thepossiblelongtermobjectivescouldbeclientsatisfactionand
retentionthrougheffectiveand 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
Thereisnorewardand
incentivesystemforemployeesgearedtotheachievementofobjectives
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 Services
Accounts and
Finance
Administration 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.And
thisisthemainreasonforhighemployeeturnover.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. Conclusion
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. 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 of
implementing 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 by
CEO 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