Leadership Challenges and Digital Marketing Strategy at Wirkkala

This case study analyzes the leadership challenges faced by Wirkkala, a company diversifying into digital marketing. The study examines internal challenges such as system interoperability, lack of strategic alignment, and a rigid organizational structure, as well as external factors including economic, political, and technological influences. It explores leadership approaches like trait theory, behavioral theory, and situational contingency theory to address these challenges. The case also evaluates Wirkkala's advantages, such as customer data, and the challenges in determining its digital marketing strategy. The study emphasizes the importance of proactive leadership, listening to employee feedback, and adapting to changes to ensure the company's success in the digital market. It also explores transactional and situational leadership approaches for effective management within the organization.

Case study

Table of Contents
INTRODUCTION...........................................................................................................................3
Question 1........................................................................................................................................3
a. Explaining leadership challenges that the company might face in keeping a company united
in developing goals .....................................................................................................................3
b. Evaluating advantages that are possess by firm and challenges that an entity might face in
determining strategy for digital marketing .................................................................................7
CONCLUSION..............................................................................................................................10
REFERENCES................................................................................................................................1

Question 1
a. Explaining leadership challenges that the company might face in keeping a company united in
developing goals
Leadership consistently presents a challenge to both leader's abilities and an individual,
change & things, changes comes up with a challenge. Some of the challenges comes in terms of
people or the problems that poses obstacles in reaching or achieving towards a particular goal. A
challenge is considered as an invitation for rising to an another level, for testing company itself
and making improvements within the process, showing that an entity could accomplish
something that might seems as difficult. The leadership challenges are seen as ongoing and occur
on the daily basis (Redmond and Dolan, 2016). It is very crucial for Wirkkala to know when
greatest challenges likely to arise, on the other hand, a company could prepare in meeting it in a
successful way. It had been analysed that difference between failure and success in form of war,
game or business could be attributed largely to a leadership.
Managerial leadership referred as the term that integrates leadership and a management
into coherent concept, manager leader dichotomy served as the way of thinking for the managers
of an organization. Leadership is stated as process as well as property focusing on what the
leaders are actually doing, It is a use of the non-coercive influences in shaping organizational
goals and group, behaviours and the motives towards an achievement of such goals.
Management as an inducing operational function and the resources in reaching to a goal and that
the management is more and more aware of human element involving a group and individual
feeling, sensitivity, attitudes to cooperation and fairness in an attempt for accomplishing
something.
Wirkkala faced many of the leadership challenges for maintaining unity in developing
the goals and in diversifying the business towards a segment of digital marketing (Leigh,
Rutherford and Williamson, 2017). Such leadership challenges includes different kinds of
system, lack of an interoperability, internal and external facing, lacking a strategic alignment
with that of the organizational gaols, single organizational culture has not been followed,
Systems develop an ad hoc and values are not been reflected in use of IS.

From the case it has been viewed that honing effectiveness is reflected as the foremost
challenge that is been faced by Wirkkala. It is challenge in which developing relevant skills like
time management, strategic thinking, prioritization and getting speed up with job needs to be
effective at the workplace. The other challenge that is faced by Wirkkala in terms of leadership is
to inspire or motivate the other members in order to ensure that they remain satisfied with respect
to their work and job. Developing an employees is seen as the challenge that is been faced by
Wirkkala that includes coaching & mentoring. Building team is represented as the specific or
particular leadership challenge that involves identifying the way in providing support, way for
leading big team and the thing that needs to be done at the time of taking over the newer team.
The other challenge depicts mobilizing, managing, understanding and leading towards a change.
Guiding the change contains knowing the way in mitigating the consequences or circumstances,
overcoming resistance towards a change and in dealing with an employees for reacting to a
change (Chelagat and et.al., 2019). Managing the stakeholders seems as a biggest challenge for
Wirkkala in managing the relationships, image and politics. Such type of leadership challenge
involves gaining a managerial support, managing up & getting buy in from that of the group,
individuals and departments.
As different systems are used within the work environment, this causes a serious concern
for the leaders as it creates ambiguity in the minds of an employees who are performing the
tasks. Employing many of different systems leads to failure of strategies, meeting needs of an
organization, retaining and hiring the good or talented employees, staying with current trend and
in integrating all kinds of technologies. It is the most common issue or a challenges under
information system that could be traced back to lack of solid strategy. Leaders under information
system are been aware of various tools that are available in gathering the data on its network.
The main challenge is faced by leaders in putting such information to use (Kurucz and et.al.,
2017). Information system plays a crucial role in an entity with the professional relying on the
technology for each aspect of an operations. Marketing and sales heavily relies on CRM software
in tracking interactions with clients. Retaining and attracting the best talent also becomes
difficult with the use of different systems as an increased number of systems like cloud software,
IT shortage constantly affects the business of Wirkkala in respect of the ensuring that the goals
developed are met on time. Keeping a match or coping up with the changes is also a challenge as
it involves getting an employees on the board along with adjusting there task as per changes.

Integrating newer technologies poses a challenge for Wirkkala as this involves using of general
tools such as microsoft offices and specialized tools for CRM, accounting, managing project etc.
Ensuring that all such tools works together is important, otherwise employees would find for
duplicate processes. Many of the employees works in field by making use of desk computers and
the laptops, brings challenges in supporting without risking the security.
The challenge relating to lack of interoperability faced by Wirkkala where new types of
manufacturing technologies are been used for supporting production of new range of the fresh
drinks. Company has negotiated for the partnering agreements across their respective supply
chain which delivers high quality ingredients, high technological factory, growing distribution
network.
Internal and external facing relates with the factors that affects an internal working of an
enterprise while external factor reflected as the changes in an external environment (Behrendt,
Matz and Göritz, 2017). An internal factor determines moving of an entity into future periods
and an ability of the company in competing and responding to changes in an effective manner.
Leaders of Wirkkala face many challenges in respect of mission, leadership, communication and
organizational structure. Wirkkala was not having a clear sense regarding its ultimate goal and
does not having adequate knowledge of digital marketing. In terms of leadership, Wirkkala faced
lack of the guidance, ineffective strategies, and vague direction. The structure of leadership in
Wirkkala is seen as rigid because two-way communication was not been present. The company
followed a heirarchical structure where many layers of the leadership and a management exist,
defining entire organization from top to the bottom found as old and ineffective structure because
it does not provides for direct communication. External factors that induces or influences an
entity might be stated as economic, political, technological and social. Challenges regarding
changing government regulations, fluctuation in currency exchange rate, decline in disposable
income, evolving lifestyle, technological advancements etc. has a great influence on smooth
functioning of an enterprise.
Challenge in relation to lack of strategic alignment indicates that an inherent agility of the
strategy map is essential since development of strategy could no longer viewed as stand-alone
activity. In climate of the constant change, strategy needs to be accessed and consistently fine
tuned in respect to the market conditions. On other note, the strategy seems to be as inextricable
part of the broader regime of performance management that constantly refines and tests strategy

as a new information coming to light. Wirkkala faced a leadership challenge in terms of lacking
strategic alignment with that of its developed goals which means that the strategy created does
not results to achievement of the goal.
For overcoming or coping up with these challenges Wirkkala should adopt theoretical
approaches of the leadership. Trait theory approach is seen as the approach that runs on the basis
of universal characteristic attached with an effective leader (Jones and Harvey, 2017). Traits of
the leader might be classified in personality areas, physical attributes and ability. This theory
helps Wirkkala in developing abilities, skills of its leaders so that all the traits of a good leader
can be seen in an individual. This in turn enables Wirkkala in effectively diversifying its business
into digital market by gaining the knowledge of its employees regarding management of the
systems in respect of digital world.
Behavioural theory is also an approach that could be adopted by Wirkkala in order to
develop more than certain kind of the personality trait in terms two main dimensions that are
initiating structure and a consideration. It is described as an extent towards which a leader is
having relationship with its subordinates on the basis of mutual trust, consideration of feelings &
ideas and respect. At the time of initiating the structures, explaining an extent towards which a
leaders establishes structures & goals with their subordinates towards achievement of such goals.
Situational contingency theory is the other type of leadership approach which could be used by
Wirkkala and this style is said as best in dealing with each and every situation. There present
various models for this situational approach to the leadership that includes Fiedler contingency
model, situational leadership and path-goal model. By following Fiedler contingency, an entity
could measure an extent to which the performance of its group is mainly dependent on an
interaction between situational variable and leadership style. However, path goal theory or
model, helps in determining the best or suitable leadership style for the different situations, it
emphasize on the way by which leader influences perception of the followers regarding the work
goals, path goal achievements and self development objectives or goals.
Situational leadership theory consists of four different patterns of the communication
which the managers might choose for using it in talking with their followers. This approach helps
the firm in deciding most appropriate style that the managers must have to access readiness for
their followers and an ability or willingness of followers in performing the tasks (Mendenhall
and et.al., 2017). From this approach, primary style of managers could be determined which is

considered as the behaviour patterns that most often used in attempting for influencing behaviour
of the others. Transactional leadership approach that deals with an impact of leaders on an
enterprise than with an effectiveness of leadership with groups and an individuals in the firm. It
primarily emphasize on the relations that the managers develops with the members in Wirkkala.
Transactional leadership involves three main types of an exchanges that occurred between
followers and leaders that is contingent rewarding, active and passive management by exception.
Moreover, in order to cope up with an external challenge, it is important for leaders of
Wirkkala to be proactive. Waiting is seen as occasionally a right strategy, it makes the group
nervous in seeing its leader as apparently not exercising some control. By being creative and
innovative, company could be able to avoid its external influences. Looking for a common
direction and retaining objectivity also helps in coping up with an external analysis (Fischer,
Dietz and Antonakis, 2017). Further, for avoiding an internal challenge, it is important for
leaders to listen responses of the people towards your ideas, opinions and the plans. Asking for
the 360 degree feedback, leaders can take appropriate reviews and feedback so that changes can
be done accordingly.
b. Evaluating advantages that are possess by firm and challenges that an entity might face in
determining strategy for digital marketing
Wirkkala had kept the data on many of its customers from early days when they had
tested out for their new products prototypes on friends and the family. In the case, it has been
presented that the company knows a significance of meeting the needs and wants of customers
that has meant closely working with the consumer groups, tracking the trend and building an
extensive level of database on the preferences of consumers.
This data forms main part of a database that the marketing managers use regularly for
planning campaigns and determining new opportunities for the product. Other parts of a data is
been routinely culled from the company's website that tracks preferences of customers and
gathers the data by using discounts, promotions and quizzes (Cutrona and et.al., 2019). Being
able for predicting the trend and responding quickly to demand of the customers enabled the
company in developing on quick basis but with changes in GDPR, directors are mainly
concerned that they might have to re-evaluate or re-examine ways in which they would be using
the data.

An organization likes to focus on use of the natural foodstuff in making their goods or
products. Thus, it is seen as very much sensitive to the concerns across an environmental impact
of ingredients which are used in its portfolio. It is essential to facilitate an evidence for
supporting any kind of advertised health benefits and address the quality concerns around a
unique ingredient that had been imported from Mexico. Therefore, company wants for mitigating
potential risk through possibly widening its supply chain for an organically grown produce along
with reducing a carbon footprint.
Diez-Martin, Blanco-Gonzalez and Prado-Roman, (2019), stated that digital marketing
referred as the paid form of promoting the goods and the services through identified sponsor by
using the digital medium. It is an element of the promotion mix that is often counted as
prominent in an overall marketing strategy. It contains high pervasiveness and visibility that
made a significant commercial medium in an Indian society. It is referred as means for
influencing a consumer in buying the products and services through audio or the visual
persuasion. Services or the products is been primarily advertised in creating an awareness of
utility in minds of the potential customers. However, it has been viewed by the Keller, Möhring,
Toni, Di Pietro and Schmidt, (2016); there are many challenges that the firm possess in
determining the digital marketing strategy that involves understanding the type of channel to tap
in and seeking relevant audience for the website in turning the audience into the customers is
seen as an ongoing challenge for the company.
In today’s dynamic and competitive world, digital world is booming on a high pace and
almost each business has taken out its services and the products online in order to reach out to
masses. In accordance to the report presented by author, most of the marketers facing challenges
in making their respective brand stand out in volumes available on an internet. This results to
facing difficulty at the time of trying to run for brand awareness campaign or in acquiring newer
customers. The foremost and primary thing that an organization does is identifying their target
customers within the market. With an increased number of an internet users, their needs and
preferences changing in every second, therefore targeting right audience has became a biggest
challenge for marketers.
Cole, DeNardin and Clow, (2017), analysed that when it comes to several social
channels, most of the marketers and businesses does not know the way to remain constantly in
market. Most of time Wirkkala felt that it is regarding paid campaigns that it need to adopt for

creating brand awareness and the lead generation. Although, both brand awareness and the lead
generation are considered as the constant challenge with an increasing competition in the market.
Marketing techniques and digital market had been changed drastically over the years and is
continued to change even in present period for catering to needs of modern day. Thus, it is very
important for Wirkkala to remain updated with all the changes. Through digital marketing,
Wirkkala could seek for conducting a survey on existing customers and target audience for better
understanding for what they are been looking and in determining which of such needs that the
brand of Wirkkala could fulfil. Through conducting an audit of an online activity, deciding for
the tactics that the company would opt for reaching out to audience. While determining the
digital marketing strategy Wirkkala should consider content that it is producing, channels that are
presented by it, a social media channel on which the company is active present and campaigns
run by Wirkkala.
In opinion of Spiller and Tuten, (2019), digital marketing is seen as full swing, privacy of
the users is another main factor. With proliferation of the digital communication, privacy is the
major issue that is faced by Wirkkala. Privacy has been stated as hot or current issue in digital
age and the digital marketing is counted as the most controversial area at the time when it relates
to protecting individual and sensitive information. Striking balance in maintaining privacy of
target audience and collecting sufficient information for using a digital advertising in effective
way could be difficult, but it is essential for all the firms to strive for privacy and transparency.
Tracking the consumer data for targeting the right talent with right kind of advertising is seen as
the significant element in determining modern marketing strategy. Without strong ethical
policies, an acute awareness relating to social culture around an audience is avoided and risk for
an entity increases.
In respect of examining the advantages which the Wirkkala posses in respect of
promoting their products through digital marketing strategy in which they mainly adapt the
social media marketing through promoting the business at global level. Thus, it can be supported
with critically evaluating the advantages and challenges which they faced in respect of
promoting the business through digital marketing platform such as:
Chaudhry and Sharma (2018) stated that by promoting the products through digital
platform, helps them in entering into the global market and also beat the competitors through
their innovative concept of soft drinks. As an advantage which is given to business is that they

are learning the taste and demand of the people regarding preferring the particular products.
Through this manner, it helps them in entering into the global market which results in gaining
more profits to their business.
Grindrod (2016) argued that it is easy to set up the business in digital platform but it’s
quite tough to manage the business. It requires the trained and skilled person to handle the digital
platform instead of running such sites by company itself. Thus, the issues of privacy arise
regarding securing the customer information, if they are availing such products through online
sites. As in case of Wirkkala, both the partner are not familiar with the social media platform and
also not have any experiences regarding its usage of working. Thus, in such manner the issues of
privacy regarding securing the customer information which they enrolled in, during ordering
foods from such sites.
Blakesley and Yallop (2019) suggested that ethics are to be maintained in respect of
securing the company detail and the procedure which they are using to produce the products.
During the time of using the digital marketing strategies, ethics are to be maintained in respect of
not infringing any other company information or strategies regarding promoting the products. As
if such issues arises, the infringement company can file the suit against the company in respect of
violating the company norms, regarding protecting their rights. Thus, in such manner, ethics is
the basic necessity which is to be maintained in respect of carrying the business through digital
platform. As it reflects the integrity and reputation of the business, if they honestly carry the
business without violating any of the rules.
Shadbolt and et.al., (2019) criticised that ethics is the major issues which most of the
company violates in terms of selecting the appropriate method regarding promoting the business.
Thus, in such aspects, the violation of the ethics are not stated if the company is choosing the
same policies which the other company preferring in respect of gaining the customer interest. For
e.g. in case of selecting the procedure of taking feedback from the customer are not considered to
be violating the ethics until the name of the company are written, which affecting their rights and
reputation in market. If company is launching any such services which they carry the copyright
or patent rights, then in such manner they cannot use such thing until the permission from the
owner is undertaken.
Karimi, Stoev and Zander (2017) highlights that in context of digital marketing strategies,
the privacy issues which they are facing is relating to reducing the fear of the consumer

regarding preferring the company products though online. As due to changes in time, the trust
and loyalty of the customer are not easy to gain, thus through this manner, it results in managing
the privacy through using the high coded security regarding securing the customer information.
As in case of Wirkkala, both the partner had limited knowledge regarding imposing the high
security codes thus in such manner by appointing the skilled person to handle such task can
provide them long term gain in business.
Magalhães and et.al., (2017) on the other hand, company had to expand their budgets
through appointing the trained person to handle the security issues at work place. As they cannot
change the mind of the person regarding providing the high security to their information.
Hackers can easily hack the company details or customer information and also can used in their
own personal profits. Through this manner it takes time to retain the interest of the customer
once they face this types of privacy issues.
According to the Taeihagh and Lim (2019), the advantages which they gained in this
process is that they can reach to large number of people and also not faces any cultural issues
regarding violating their values or norms in respect of promoting the products but as per
Cavoukian and et.al., (2017), most of the customer not prefer such products as they feel that by
preferring the other culture people, results in violating their own culture norms which results in
affecting the sales of the company. As this is one of the major privacy issues which is undertaken
by the people regarding distinguishing their own culture products and different culture products.

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