Business Failure Analysis and Strategy Change
Some companies manage to work out and achieve their objectives while others do not, simultaneously. Myriad factors are attributed to these organizational behaviors. There are two examples of organizations that failed and succeeded simultaneously. That is; during the same financial year (2012-2013). They are the Blockbuster and Red Box companies. First the objectives of the Blockbuster Company were and still are valid. They included the need to expand the multi-channel initiatives, enhance growth within the domestic country, and improve the returns of the organization by ensuring that the organization engages within the aggressive operational activities. On the other side, the Red Box Company aims at providing the market with a wider variety of the products it produces.
The vision and mission of the Blockbuster Company are quite similar. Besides it ensuring that the products produced are of good quality, it aims at ensuring that it enables the consumers to save on consumption by lowering the prices. It becomes feasible for the society to raise their living standard. The Red Box Company has a related mission statement. It aims at creating a long-lasting relationship between it and the community.
However, the Blockbuster Company utilizes the objectives to establish its strength within the market. Blockbuster’s source of success was Red Box’s source of failure in the year 2012-2013 financial years. Ideally, the management of the Blockbuster organization is fed with alternatives to ensure that any failure has a way of addressing. The senior managers and the employees have a well-established working environment that encourages the company to perform in an outstanding manner. The company does not diversify its attention to numerous brands that it cannot handle. Therefore, it has been able to maintain the market structure in recession and depression sessions.
Ideally, the Red Box has frequently suffered the business failure as the Blockbuster flourishes. This is because the management suffers from an excess nostalgia. Most of the operations are not professional. Indeed, they are pretends, and this involves the use of so much money to forcefully please the market. It is essential to note that the market is supposed to be dealt with realistically. The systems theory is most important to explain the fact that realism is essential in the drafting of a management platform. The leadership of the organization should be developed.
As the CEO of the Red Box Company is a potential and well established organization. However, there are essential issues that need to be addressed. First, the strategizing management should ensure that the locations are appropriate. In addition, the promises and efforts of addressing the market should be realistic. The issue of overspending on pleasing the market at the expense of quality shrinks the finance account.
It is critical to comprehend that the sudden change of strategies may be faced by a lot of employees who are used to a free-ride form of management. In addition, cutting of costs might be challenged by some of the embezzling managers (Pearce & Michael, 2006). To ensure that this does not have a large impact on the management and the organizational performance, vetting, and assessment of employees ought to be done.
One of the strategies that can purport this is the use of the John Kotter’s 8-step plan for implementing change. Ideally, the organization has what is required to change. Urgency for change can be initialized. It can be implemented through the formation of a professional coalition that will effectively influence the need to establish a new mission for affirmative change. The vision is then communicated, and all the obstacles towards change are eliminated. Through this, the change can be implemented. It is feasible that the change of the organization’s culture is deemed to change immediately.
Pearce II, J. A., & Michael, S. C. (2006). Strategies to prevent economic recessions from causing business failure. Business Horizons, 49(3), 201-209.