In our paper we will describe how specific organizational behavior theories could have predicted or explained the company’s failures or successes and how leadership, management, organizational structure, the ultra of the organization and its departments played a role in the failures and successes. The second part of the assignment dealt with Leading Organizational Change. The team looked at the failed organization before the business failure took place and developed a process to prevent the impending failure. We identified the most vital areas for change and potential barriers that could be faced during the change process.
The team’s final task was to evaluate the power and political Issues within the organization and describe how we would address the issues and Implement change based on John Cotter’s eight-step plan for Implementing change. Business Failure Analysis Team D chose to evaluate Apple Corporation to see in what aspect they failed and mission statement, but the mission statement of the corporation is to design Macs, the best personal computers in the world, ‘Life, rework and professional software. Apple led the digital music revolution with their products pods and tunes online store.
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Also Apple Corporation reinvented the mobile smart phone (phone) and App Store, introducing the new pad 2. This new technology brings to students, educators and costumers the best personal computing experience (“Apple Inc. Mission Statement Is Not Very Innovative And Barely A Mission At All”, 2013). Apple Corporation produced many successful products since 1976, starting with the first Apple I following Apple II in 1977. But in 1980, Apple Ill was a product that had many issues because of the design, hardware problems, and the very high price that makes that product failed.
Other products that failed Apple was the mouse that came with the Imax, that mouse were to large that users had issues using the mouse. The Motorola ROOK in 2005 was a misstep for Apple, because the user interface was tricky to navigate. There were other products that the price was reduced because there were issues with the ‘TV, this product was expensive and had poor quality. Apple updated and released it for $99 (“Timeline: Apple’S Greatest Successes And Failures”, 2011). These products failed the corporation because of bad design and expensive cost.
Apple has incorporated new technology and new products that are innovative and popular to the public. That makes the corporation successful, for an example: the new pad and the phone products were a huge success. Even when the corporation had issues in the past, every product that the corporation did had a Sino in what they were expecting. In creating a vision, the corporation could implement strategies to achieve that vision (Integers, Lempel, Quinn, & Shoal, 2003). Apple Corporation is a business environment competitive and fast- paced.
To achieve this vision; the corporation empowered the employees giving them a free educational opportunity through the Supplier Employee Educational and Development (SEED). With the support of classes the employees could learn how the corporation worked and how they can help the corporation producing new products with the last technology to people out there (“When People Gain New Skills And Knowledge, They Can Improve Their Lives. “, 2013). When the employees are treated right and have the right training they do their work, they appreciate it and know what managers are expecting from them.
That is why Apple Corporation trained their employees in order to learn more about the company and how the products need to be produced at the end of the day. Leading Organizational Change In section two, Learning team D chose to analyze the fall of Blockbuster and its inability to evolve with the new trends in movie and game entertainment. During its prime, Blockbuster was the giant that dominated the movie and entertainment rental industry. The practice of driving to a store and renting a movie to watch at home was a ritual enjoyed by many across a broad range of age groups and demographics.
The gold standard of in-home entertainment was destined to change with the times, and Blockbuster’s failure to adapt to changing market lead to its demise. Stephen Gander, details the downfall of Blockbuster in an article written in Time Magazine. According to Gander (2010), it was evident years before Blockbuster’s fall that their model was unsustainable. It allowed a small upstart, Nettling, that used nothing more than a ix years before Blockbuster launched its own movie-by-mail service (2010). Gander also noted that Blockbuster pushed money into schemes in attempts to keep the out of date retail business alive.
These tactics only delayed the inevitable filing for bankruptcy on September 23, 2010 (2010). As a management team brought into Blockbuster, the precedent of evolving with the fast-paced world of technology needs to be set to minimize potential competitors. As leaders in the future of Blockbuster, market research and research and development would become the number one priority for the company. Conducting surveys, looking at trends, and studying the advancement of technology and consumerism, the shift in consumer needs would not only be recognized, but also anticipated.
Evolving and changing our focus to adapt with the customer and not the industry allows Blockbuster to foresee the impact of movie-by-mail service, online streaming, and movie kiosks. Anticipating these market shifts gives Blockbuster the chance to shift its priority and finances into research and development to establish strong products the new market areas. Understanding whom our competition is, and establishing a competitive product room the beginning, allows Blockbuster to use its name recognition and capital to dominate in new areas of entertainment and diminish any competitor’s chance of becoming successful.
We live in a world where there is constant change. New initiatives, improvements with technology, and various tactics help organizations stay ahead of their competitors. Change has to occur in order remain successful in any field. Leaders need to be visionary and guide the organization with superior change management skills. Because of the advancement of technology, live personnel are not required to complete certain tasks. However, many tasks still require people and cannot be automated.
Effective leaders can assess the needs of the customer and organization and determine the proper amount of automation to establish the most effective workflow. Several organizations have taken the initiative to find new ways to stay in competition with new competitors. Unfortunately, one of the biggest giants in the movie rental industry was forced to shut down hundreds of stores across the nation because of the competition form Nettling and Redbook. Both Nettling and Redbook had an advantage over Blockbuster, simply because they were technology-based impasses that are not operated through the traditional “brick and mortar” buildings.
During the emergence of Nettling, Redbook, and even tunes, Blockbuster should have based their strategy on modern technology and internet-based viewing. As a result, consumers turned to alternatives that were more convenient for their families to enjoy entertainment from home without having to spend the same amount as they would to take the entire family out for the evening. The competitor’s methods cut down on overhead costs affiliated with a building and large payroll expenses. Management must meet the customer requirement in the competitive market for the organization to survive in the environment.
In 2011, Blockbuster took the initiative to place kiosks in their stores and participate in the mail and digital business. (Blockbuster Corporate, 2011). They also changed their strategy to mirror the new technology-based companies. Unfortunately, few customers visited the stores to rent movies when they had an abundance of options that were more convenient. Blockbuster failed to generate short-term goals that could have kept forth the effort to produce change and positive short-term results. When proper planning did occur, lack of communication hindered the organization.
Communication plays a vital role when changing the structure of an organization. When organizational changes occur, strong and competent leaders are required to provide continuity during the implementation process. It would have been beneficial for the organization to find a new CEO and upper level management to help foresee, plan, and implement changes in a rapidly shifting market. Conclusion In conclusion, technology, change and the right leaders in key positions can make or break an organization.