Claude Grunitzky Case Solution

Gaps between the current performance and the goals

Grunitzky did not find success in his initial venture magazine under the name “True”. The primary reason was the disagreement with his cousin. Then the major gaps in performance occurred when Grunitzky started his new magazine Trace. However, by 1999, Trace was also on the verge of bankruptcy. This is because it Grunizky had not paid his writers and printers their compensations timely. This led to a drastic variation in expected results and actual results. (Claude Grunitzky, 2012)

2. Root cause analysis

What are the causes of our gap?

One of the fundamental reason for the gap in the early days was the fact that Grunitzky and all his partners were very young. All of them were in their twenties, and their shift from London to New York was nothing less than an adventure. They lacked experience in the industry and the dynamics of the business. This led to poor management of their resources and consequently led them to the verge of bankruptcy.

Another reason was the expansion of the business. In the initial days, they were experimenting new things and exploring new avenues. However, with the passage of time, they grew, and the application of traditional practices became inevitable. As a result, they started to feel stagnant in their business. 

3. Solutions

Which alternative should be used?

In the second half of the first decade of 21st century, all three-business owned by Grutizky were flourishing exponentially. However, the financial crisis of 2008 turned the tables around for Gruntizky. His accumulated wealth landed him in a stable position even after the crisis but led him to look out for new avenues. (Claude Grunitzky, 2012)