1. As AdRoll grows, how will the structure of its organization change? What affect will that have on AdRoll? What affect will that have on the cul-ture of AdRoll? 2. What recommendations would you make to the founder(s) ofAdRoll in regard to harvesting its organization (sell, merge, selling to employees, I PO,etc.)?

Foundations of Business (MindTap Course List)
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Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor
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Chapter4: Choosing A Form Of Business Ownership
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1. As AdRoll grows, how will the structure of its organization change? What affect will that have on AdRoll? What affect will that have on the cul-ture of AdRoll?
2. What recommendations would you make to the founder(s) ofAdRoll in regard to harvesting its organization (sell, merge, selling to employees, I PO,etc.)?
 
AdRoll’s expansion meant a lot for the company in terms of changes to its organizational structure and culture. AdRoll’s office was set up in a large room with lots of young people and dogs all work-ing in a fast-paced environment, which also facili-tated creativity. The question for AdRoll was would it be able to maintain this structure and culture as the company expanded and grew?
As AdRoll expanded and grew, it was either going to have to work hard to maintain this openroom structure or change it to a more functional specialization structure. The problem with this was that the more functional structure might result in less creativity. This was dangerous for AdRoll given that much of the company and its ideas thrived on AdRoll’s allowance for creativity and innovation.Since big companies were starting to recognize AdRoll, the company needed to focus on its product to keep customers. AdRoll needed to select a small team to focus on growth and the maintenance of its culture so it could simultaneously be successful at both things.With this continued growth, AdRoll faced several risks. One of these risks was that many of AdRoll’s competitors, such as Chango, offered search retargeting. AdRoll focused mainly on site retargeting and contextual retargeting, which was also done by many of AdRoll’s competitors.Therefore, potential customers could choose elsewhere if AdRoll did not have what they were looking for. This risk could have been managed by expanding and innovating AdRoll’s product line. The company needed to continue hiring qualified advertising experts that had experience in the social media industry. This would allow for AdRoll to stay competitive by introducing new and innova-tive approaches to retargeting.
 
 
 
 
 
 
 
Another risk facing AdRoll was the fickle nature of social media. Much of AdRoll’s success could be attributed to being part of the Facebook exchange. During this time, Facebook was the most popular and widely used social media platform. But that could change in the future.. This was especially troubling for AdRoll since much of its focus was on small to medium sized businesses. If new competitors focused solely on small business, and provided a better product with better services, AdRoll was in trouble. However, AdRoll could com-bat that risk by staying up to date with its innova-tions in retargeting, and by ensuring that its existing customers were pleased with the products and ser-vicesthey were receiving.Regardless of competitors, AdRoll still needed to finance the growth of its company. Fortunately, AdRoll had a couple of key advantages in addition to its amazing growth. It had a highly regarded team and had already made crucial relationships with venture capital firms and the “movers” in the Silicon Valley and greater San Francisco area. The growth of the company relied less on the money they were able to generate than on funds from venture capital investments.AdRoll sought any necessary financing through relationships with venture capital firms including Foundation Capital, MerusCapital, and Accel Part­ners. AdRoll’s early attraction of these venture capi-tal firms and the amazing return on initial capital put them in a great position to acquire additional capital requirements. Yet, it was not financing that was AdRoll’s main obstacle to significant growth but rather being able to get the required talent on board.This was a similar problem that confronted other high technology companies like Google and Facebook. Google became famous for its hiring pro-cesses and its amazing employee benefits. Facebook earned very high marks including the “Best Place to Work” by GlassDoor.com. It was crucial that AdRoll focus its attention on moving its services forward and focusing on emerging technologies including the mobile spectrum.Lastly it was important that AdRoll’s founders be proactive in the potential harvest of their orga-nization. Although it was typical for companies that have seen this amount of growth to eventu-ally seek an IPO, this strategy did not turn out to be very valuable for some technology companies. In order to ensure their growth, AdRoll could incorpo-rate an employee stock ownership plan (ESOP). This strategy might allow AdRoll to offer key talent and a clear incentive for working for such a fast growing company. Employees could be offered stock, which would give them ownership of the company and a vested interest in its success.
 
This would enable AdRoll to stay away from the risks of an IPO and the regulation that comes from it
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