Name: Abdul Rauf Jamro,

Assignment
:
Organizatio
nal
behavior
and
Leadership

1. Why MARIMEKKO was so successful? Highlight its strengths and

weaknesses.
The first and foremost strength of the Marimekko was its strong brand. Its initial
success, back in late in late 1950s and 60s, is evident of the fact that MARIMEKKO
as a brand possesses the significant recognition nationally as well as internationally.
Despite the bad management after the demise of its founder, the brand MARIMEKKO
has not completely disappeared however it remained dormant. Thus its decline during
1980s is largely attributed to its bad management. Hence, bad management is said to
be one of its major weaknesses which has led MARIMEKKO to decline. However,
the brand, according to Paakkanen, possesses substantial strength to reemerge subject
to better management. MARIMEKKOs corporate image was based on the
entrepreneurial couple Armi was responsible for Artistic side where as Viljo was on
manufacturing and management side was also its strength. Their dedication and love
for work made them famous which not only turned MARIMEKKO a cultural
phenomenon but also a successful business.
2. What challenges Kirsti Paakkanen was facing when she joined as a CEO?
Challenges she was facing
The Finland was going through the deepest recession at the time Paakkanen joind
the MARIMEKKO.
International sales of the MARIMEKKO were almost disappeared and local sales
were declined significantly and the company was making the loss of over 8
million euro at the time of her acquisition.
Centralized management was in place. Powers were not devolved which made it
increasingly difficult to promote creativity which is supposed to be the prerequisite
for artistic based organization

3. How was she able to turnaround Company?

She entirely revisited the management and operations of MARIMEKKO when she
assumed the charge as a CEO. She took following key steps to rematerialize
MARIMEKKO.
She decentralized the structure of organization and eliminated typical bureaucratic
style of working.

 She also promoted effective communication across the individuals as well as

departments along with freedom and informal working style.
She promoted creativity coupled with profit sharing responsibility with a view to
infusing them the sense of recognition for the designers by placing their names on
the respective designs which was created by each designer.
She provided the designers best possible facilities at work place aimed at
promoting creativity and innovation.
In addition to that she focused on the category development and introduced new
categories such as home interiors, womens business wear clothing, mens
business wear, childrens wear, and mobile phone covers which led to new store
openings and international expansion.
Furthermore, she stressed on team work, mutual respect, discipline, sense of
responsibility truth, fairness, honesty and social responsibility.
These steps of Paakkanen turned the loss making company to a profitable one.
4. What was the type of organization she designed to develop to implement her
strategy?
She was looking for the decentralized organization where every individual has right to
make decision creatively. Therefore she designed to develop the MARIMEKKO on
those lines so that she can easily implement her strategy. She did not want an
organization with typical bureaucratic style.
5. Do you think this MARIMEKKO brand is for globalization- yes/no explain it.
Yes MARIMEKKO brand is fit for the globalization keeping in view its past
performance and international recognition during late 1950s and 60s. Its early
international expansion suggests that MARIMEKKO is the global brand which was
later reaffirmed by Paakkanen when she joined MARIMEKKO as a CEO. Paakkanen
turned the MARIMEKKO into a success not only locally but also internationally
which proved that MARIMEKKO is the brand for globalization.