Case Analysis of Marimeko
EXECUTIVE SUMMARY
The case describes how Kristi Paakkanen brought Marimekko back to its lost position when the company was on the verge of bankruptcy. Through her unique management philosophy and management principles of feelings, respect, truth, enthusiasm, discipline, reward, team spirit, total responsibility, caring, fairness and social responsibility, she not only helped it regain its previous strength but also enabled the organization to withstand changes with changing times. After the death of the original founder, the company had failed probably because of its inability to respond and adapt to the new environment.
Due to Paakkenan’s efforts, the organizational financial performance had improved tremendously. It has turned from a loss-making organization (loss of over €8 million in 1991) to a profit-making entity (profit of €8.4 million in 2005). Along with improving financially, the organization and its employees had been imbued with renewed energy, enthusiasm, vigor and self-confidence.
Now, the key challenge that is being faced by the company is the current and future international expansion. The key challenges for Marimekko’s international expansion include capturing the foreign customers, introduction of new personnel policies, predicting demand in these new markets, creation of brand awareness with limited marketing resources, maintaining a consistent brand image, serving the individual country needs and communication of the Marimekko’s philosophy to all third party operations. Another potential problem might be finding a successor of Paakkenan who would be able to continue the same management philosophy and save the organization from collapsing just like it did when Armi Ratia died.
Kristi Peakkanen symbolizes how to be different, having the courage to do thing differently, how to value your employees and instill organizational values in them. She took the challenge of a dying company when there was no hope. She capitalized on
The case describes how Kristi Paakkanen brought Marimekko back to its lost position when the company was on the verge of bankruptcy. Through her unique management philosophy and management principles of feelings, respect, truth, enthusiasm, discipline, reward, team spirit, total responsibility, caring, fairness and social responsibility, she not only helped it regain its previous strength but also enabled the organization to withstand changes with changing times. After the death of the original founder, the company had failed probably because of its inability to respond and adapt to the new environment.
Due to Paakkenan’s efforts, the organizational financial performance had improved tremendously. It has turned from a loss-making organization (loss of over €8 million in 1991) to a profit-making entity (profit of €8.4 million in 2005). Along with improving financially, the organization and its employees had been imbued with renewed energy, enthusiasm, vigor and self-confidence.
Now, the key challenge that is being faced by the company is the current and future international expansion. The key challenges for Marimekko’s international expansion include capturing the foreign customers, introduction of new personnel policies, predicting demand in these new markets, creation of brand awareness with limited marketing resources, maintaining a consistent brand image, serving the individual country needs and communication of the Marimekko’s philosophy to all third party operations. Another potential problem might be finding a successor of Paakkenan who would be able to continue the same management philosophy and save the organization from collapsing just like it did when Armi Ratia died.
Kristi Peakkanen symbolizes how to be different, having the courage to do thing differently, how to value your employees and instill organizational values in them. She took the challenge of a dying company when there was no hope. She capitalized on