Big Spaceship - Part 2 - Conglomerate Essay Example
Big Spaceship feels, as an agency, it should continue to grow while still keeping the boutique culture that brought the company success - Big Spaceship introduction. There is no clear direction as to how the company should grow. Big Spaceship is unique, so its specific market could soften at any time, which would most likely lead to layoffs. Currently, Big Spaceship is a privately held company. One option would be to open the company up the public to gain capital which would put the company in a good position for sustainable growth.
Like other ad agencies that have sold out to holding companies, selling out could help stabilize growth within the ad agency. Big Spaceship could open up a satellite office with key inner circle employees, which would allow for growth, while keeping the small boutique image. Opening Big Spaceship up to the public has a high probability of generating a large amount of capital due to the company’s past success. This however, would leave the company open to pleasing shareholders, which could move away from Big Spaceship’s culture.
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Selling to a holding company would be beneficial short term. The holding company would provide support and stability during down turns in the ad agency market sector. In the long run, the holding company’s ideas may overshadow Big Spaceship’s vision. Adding a satellite office with trusted employees at the head, would allow for growth while still keeping the vision aligned with the main office. It would generate autonomy with the satellite office. Big Spaceship tried a satellite office once in Los Angles, but closed shortly due to differentiating cultures.
Although it did not work in LA, it could potentially work in another location. The best recommendation would be to find a holding company that fits Big Spaceship’s vision well. Although it’s not ideal to be under a holding company’s control, it provides the best stability for down turns in the market. If the holding company is a good fit, there is great potential for Big Spaceship to keep its vision, boutique culture and continue to be successful.