Marimekko

Kirsti Paakkanen has achieved a celebrity status in Finland for her

enigmatic leadership of the Finnish design company Marimekko. Purchasing
the company in a state of near bankruptcy in 1991, Paakkanen took several
actions to restore profitability and realize growth. As of 2006, the company has
sales of 64 million euros (of which 80% are from Finland) and net profits of 8.4
million euros. Over the last few years, Paakkanen and her team have focused
on growing international sales. Recently, the company has opened concept
shops owned by foreign partners in Japan, the United Arab Emirates, Iceland,
Sweden, and the United States. In light of the international expansion,
Paakkanen is wondering if any changes to the company is necessary.

Central Problem
How will Marimekko maintain its corporate culture, which has been the
main contributor to the companys current success?

Minor Problems
The company did not have a strict job definition
The need to determine if new policies should be created
The Kirsti Paakkanen does not have a successor

Objectives

To determine possible solution to the main problem

To identify any possible problem that may arise from the companys
current polices and culture

SWOT Analysis
STRENGTH

WEAKNESSES

1. Marimekko is a globally and locally 1. Control of the distribution and

competitive company.

managing a consistent brand image.

2. They are employee-oriented.

2. Whether the company can produce

3. They give freedom of creativity to enough demand to a certain design in

their designers.

a new market

4. They create unique and original 3. Companys concern in introducing

designs.
5. They

are

and increasing the awareness of a new

open

to

freelance brand

with

limited

marketing

designers which helps Marimekko resources

obtain new ideas and designs.
6. They offer diverse products.
OPPORTUNITIES

THREATS

1. They can attract investors.

1. Competitors would try their best to

2. They are expanding internationally

improve and surpass their product.

through exports and working with

retail partners.

Alternative Courses of Action

1. Create an apprenticeship program that will train potential successors.
Advantages

 Increases chances of getting a successor and potential future leaders.

May increase the possible output of individuals since they will enhance
their skills and maximize their potential.
Disadvantages
It does not guarantee that Paakkanens leadership will be carried over.
Added cost to the company since creating a program and training is
expensive.
2. Strictly give emphasis on the jobs to be done by their employees
Advantages
Prevents overlapping of tasks and duties.
Employees will be focused on their specific departments.
Disadvantages
It might be contradictory to the companys current culture.
It might limit and hinder the freedom of creativity given to its employees.
3. Assess companys current policies and determine if theres a need to create
new policies or remove old ones.
Advantages
The company will be able to determine potential improvements in the
company.
This might improve the overall output of the company.
Disadvantages
Violent reactions might arise from employees.
Might also deteriorate the overall output of the company.
Old timer or old employees might get a hard time adapting with the new
changes of the company or worst they will not adapt to the new policy.
4. By incorporating Kirstis thesis in all aspects of the companys operations.

Advantages
They will be guided by the key terms and competencies promoted.
The current culture of the company will be maintained into the future
Disadvantages
Not all will agree to follow these aspects since other might have a
different view in life and has a different cultural background and values
which may create a gap between individuals which would create a conflict
among them.

5. Make no changes to the companys policies and culture.

Advantages
They will be able to continue their current culture.
Same values will be integrated
Disadvantages
The company will not be able adjust or cope with the corporates
changing environment.

Conclusion
Our group concluded that by having these alternative courses of action,
it will further help the company maintain their growth in the future. In
addition, it will also help them solve problems that might arise in the future.

Recommendation

Our group recommend alternative courses of action numbers 1, 2, 3, and

4 because it answers to the problem we had identified. ACA #1 Create an
apprenticeship program that will train potential successors because this will
increase chances of producing a successor and a potential future leader. ACA
#2 Strictly give emphasis on the jobs to be done by their employees in order to
prevent overlapping of tasks and duties and for employees to be focused on
their specific departments. ACA #3 Assess companies current policies and
determine if theres a need to create new policies or remove old ones. This will
also

determine

potential

improvements

to

the

company.

ACA

#4

By

incorporating Kristis thesis in all aspects of the companys operations.

Through this, they will be guided by the key terms and competencies promoted
and this will help maintain the current culture of the company into the future.