Professional Documents
Culture Documents
Table of Contents
1.0 Introduction...........................................................................................................................3
5.0 Conclusion..........................................................................................................................18
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1.0 Introduction
The management theories have been changing since the nineteenth century. New
management methods are released whenever they have been proven to work. It is important that
an organization develops the best management strategy and uses it. The paper discusses three
techniques on the business success. The case studies are the Organising for Success- One Sony?,
Boardroom Battles at Hewlett Packard and Leadership and Strategic Change: Leading Change
According to the Case Study, the profits made by HP kept reducing despite their high
sales. Besides, there were false accusations in that the members of the board were leaking
information on each other to the media so that the other members could be viewed as the source
of the problem. The board members did not trust themselves and campaigned against the other..
The problems of the company started in 2002 during Carly Fionas tenure as the CEO.
According to the case study, she publicly condemned one of the board members for opposing the
acquisition of Compaq. Issues then started when the members of the board started propagating
lies on one another. The case study indicates that the next CEO, Mark Hurd changed the strategy
to cutting of costs. However, he failed and again, there was public criticism from the board
members.
The Case study states that Apokether was the next CEO and he too developed strategies
that did not work. The board turned against him and did not want to associate themselves with
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the strategies which he had implemented that failed. According to the Case Study, Meg Whitman
was appointed CEO and initially her strategy to tackle the problems of the organization seemed
to be working. However, they proved to be worse when the share price fell further.
The first step begins with the identification of the prevailing market situation and the
scenario of the organization. The second part is the development phase where the formulation of
plans is made. It should be noted that one of the most crucial factors in this period is employee
involvement and consultation for the project formulation process. Another factor is the
consideration of the economic and political background that are present within the firm. The next
stage is usually the implementation of the procedures so that so that execution of the strategies is
undertaken. There are two main parts of the policy development process as discussed below.
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As suggested by the name, this procedure occurs where the employees are consulted, and
their opinions are as important as that of the management. The significance of this option of
strategy development process is the increased efficiency due to the consideration of the social
The CEOs that were being replaced each tried implementing their strategy and what they
thought would work best for the company. For instance, Apokether focused the company on
operating on business-to-business sales of the printers and PCs. He further invested much into
the software business and while spinning off the PC business. Besides, he launched a tablet
computer in 2011. All these strategies were meant to work well for the company, but the result
was the opposite of the expectations. When the plans of acquiring Autonomy came to the
knowledge of the investors, the shares prices fell. The shareholders were also against the idea.
This led to the dismissal of Apokether. Further, he was blamed for the woes that had befallen the
The two strategic development processes are combined and used together to achieve the
required objectives of the process. Consequently, the company will get results that are very
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effective. Despite HP being a giant IT corporation and one of the best in the world, the case study
indicates that the company experienced hardships in the nine-year period between the years 2002
to 2011. The CEO in 2010 Leo Apotheker introduced several strategic development techniques
that were meant to bring changes to the frustrating condition. The strategies faced significant
challenges. The decisions that were made were inappropriate, and the planning was also affected.
According to the Case Study, Apokether intended to make business decisions without
involving some members of the board. For instance, he wanted to acquire Autonomy. However,
his plans were shot down by the CFO when she stated to the board it could not help the company
achieve its objective. She also added that Autonomy was overpriced.
Another instance of intended strategy is seen where Apokether issues profits warning
internally because he did not trust some of the directors. However, it was not easy keeping that a
secret and soon it was known to the public and shareholders. They were disappointed.
One of the best strategies is the quality function deployment. In this type of plan, the
organization starts by identifying the specifications and the designs that the customers require.
This technique would have enabled HP to development several computers and printers that
would have satisfied the customers tastes. Primarily, it would allow HP to develop different
models with the specific features the customers would require and not just a few brands with
several features that would not be useful to the majority of the buyers. Besides, this method
would lower the cost of the PCs and printers and make several customers buy them.
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According to the Case Study Organizing for Success-One Sony? CEO Stringer intended to
make Sony one by incorporating different changes into the organization. His primary strategy of
achieving this was through combining the hardware section of the firm, normally in Japan, with
other sections mainly led by the Sony Music and Movies in the US. After combining all the
According to the Case Study, Sony experienced a reduction in its profits. Despite its rival
companies growing and getting more profit, Sony's profit remained low. It therefore resorted to
bringing new CEOs. All of the CEOs had a particular structure of managing the company.
However, most of the CEOs together with their methods failed. The configuration of an
organization consists of the relationships, processes, and structures through which the
organization operates. There should be a coherent vicious circle between these. The relationship
refers to the connection that exists among the employees both within and without the
organization. This relationship can be seen between Howard the foreign CEO and the local
employees. According to the case study, the CEO did not understand Japanese. Therefore, he
would talk in English and give instructions which would ultimately be ignored by the employees.
This describes how weak the relationships were within the company. This was partly responsible
Thirdly, structural design is used to imply the lines of reporting, roles, and the
strategy can fail. This happened for the case of Sony. In the Case Study, when Hirai become the
CEO, he was determined to have the business transformed. He wanted to alter the structural
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design that had been in existence and bring in a new one. One of his actions was the breaking up
of the big groups and developing 12 businesses that were stand alone and independent. This
made communication between the different structures difficult since they had to take long to
agree. Mainly, they had adopted a multidivisional structure so as to run the business. The
structures were several. At some point, they had divided the business into five functional
These goals are examined by looking at seven key elements within the organization.
Firstly, there is the strategy which is the overall plan set by the organization so that it can take
some competitive advantage and edge out its rivals. The company had a good structure, but it did
not work as expected. Both Howard and Hirai's strategy failed to produce results that could be
said to the right. They should have changed their policy so that they get a competitive advantage
over Apple and Samsung who were their main rivals. Besides, the strategies could have protected
them from the cheap electronics from Asia. Secondly, the CEOs adopted a wrong structure. By
dividing the organization into different 12 independent units, the structure had been defamed.
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Thirdly, shared values are the values that majority of the people believe. It is the
organization's beliefs. Not all employees in the company shared the same values. For instance,
the employees did not follow exactly what Howard told them. The other is skill and
competencies. The CEOs were not engineers, yet they were working for a high tech company
hence they did not fit into those positions. The management method of the leaders was not
constant since each one tried to implement something different. For instance, while Stringer
centralized the business Hirai created various positions with a horizontal method of management.
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According to the Case Study, Hirai used horizontal method while Howard wanted best
practice in each element produced. These kinds of structures both proved to be wrong. They
could have stricken a balance between hierarchies and the holistic methods so that they could
Hierarchies vs. networks Action and control are usually ensured using formal hierarchies.
However, they can behave uneasily when they are with informal networks which foster
innovation and exchange of ideas. Hirai created several hierarchies by implementing the five
structural changes. A networked company would have brought in more visible income and profit
standardization. However, decentralization is flexible. The Sonys solution would have been
achieved by decentralizing the business. Stringer had initially centralized everything by creating
the Sony United. The best remedy would be making each of them decentralized and independent
The organization should manage the dilemmas through subdivision of the organization,
In the present economy of the world, many automotive companies are bailed out by the
government. Without the bailouts then the industry would be in chaos. Without management
change in Chrysler, then the Company would also require a bailout from the Government.
Otherwise, it would have stopped operations. However, the arrival of Sergio Marchionne brought
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new hopes for the firm. He had rescued Fiat from losses to profits in just two years. Sergio
Marchionne created management that was able to change Chrysler from near bankruptcy to a
thriving company. This case study examines the management methods used by Sergio
Marchionne to achieve the transformational management to lead to the success of the bankrupt
Sergio Marchionne was the one responsible for leading change in Fiat and Chrysler. His
fame was first from leading Fiat from losses to profitable. He then went to went to Chrysler to
work as its CEO. Chrysler was on the brink of bankruptcy during 2009 financial crisis.
Force field analysis is a tool for managing change in the workplace. The use of this tool
has its critical advantages. For instance, it enables the evaluation of a particular opportunity and
the determination of its benefits and disadvantages. Hence, the company can decide whether it
should drop the changes or continue with them. Besides, it helps in the determination of the
challenges which are ahead and therefore, the company develops options for overcoming the
problem.
According to the Force Analysis of the Case Study, Sergio Marchionne faced several
challenges as he tried to bring change in the two companies. For instance, the senior
management had a bad habit of upward referral to the CEO. However, he solved this by laying
them off. Besides, when he took over as the CEO of Chrysler, the organization had a $6 billion
loan from the Government which he had to work to reduce or clear. It is therefore, evident that he
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According to the Force Field analysis from the case study, Sergio Marchionne faced
problem in that although the stake of Fiat in Chrysler was 53.5%, Fiat experienced a reduction in
its sales due to the bad economic conditions in Europe while Chrysler kept prospering and its
profits and spending rose. In the case study, the factories of Fiat were operating at 50% and the
vehicles had one of the least ratings in the US. However, he handled this by asking for
governments intervention so that it could close down non-profitable companies and lay off some
workers.
responsible for the transformation of the two businesses from a loss to profit. The primary
change type used is the revolution change. This kind of change occurs over a very short time in
an organization. It involves significant cultural and strategic changes which are conducted
rapidly. To accomplish this, he engages himself in different actions. For instance, he adopts
multiple management styles. This is seen when he selects 26 upcoming leaders within Chrysler.
These leaders were either two or three level below the top level. They were to report to him
directly and hence the management of the organization was flattened. Secondly, Sergio
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Marchionne adopted culture change. In this case, he worked with the already existing elements at
the Organization and also used the experience of the previous management team so that he could
Another change element is that of monitoring the change that was taking place. He set
clear targets for his staff. Most of these changes were related to the company's finances which
involved a reduction in pay and job cuts. The fourth change required clear strategic direction.
Sergio Marchionne created an action plan that was both strategic and precise for Fiat when he
became its CEO. Lastly, he caused changes at the top management. In this scenario, Sergio
Marchionne realizes that the top management had so much upward referral. Consequently, he
The levers of change are actions and decisions that business leaders take to involve the
employees in the change process. It also allows the knowledge and enthusiasm of those already
involved in the change to be engaged and motivated. They should be involved since the
organizations can only get change if those inside are participating in the change process
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themselves. Thus, they can recognize the importance of the modification. Besides, it gives them
momentum to be changed. Sergio Marchionne used different change at both companies to make
The case study postulates that Sergio Marchionne used challenging the taken-for-granted.
This is clear in the statement Why did it take Fiat four years to develop a new model? The
second lever for change was power and political system. This occurred when there was a
formation of a strategic alliance between Fiat and Chrysler. Also, removal of individuals who
were resistant to change was a power, and political systems change for the lever. The third lever
of change involved changing of operational processes and routines. This included separating the
departments of different brands in Chrysler. It also included compelling the managers to think
differently. The fourth lever for change involved change tactics. This included the arrival of
Sergio Marchionne as the new CEO at different times for each of the two companies concerned.
The second element of the change lever of change tactics was the maximization of the advantage
of downturn performance. Lastly, symbolic changes took place also a part of the lever of change,
and it included the behaviors of the managers since the new CEO came. Another aspect of this
changing level was the grocery store and the kindergarten that were built outside the plant.
Therefore, the changes that were applied by Sergio Marchionne caused the profitability of the
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Some of the
levers that can be used by managers include communication plan and resistance management.
excellent communication occurs when each person receives communication that is best for him
or her. Sergio knew very well how to use contact so that he could pass the required to all of the
workers. Besides, he had teams such as that of the 26 leaders. These teams could always update
him with any information that he would need. Thus his communication methods were useful and
According to the Case Study, the second lever used by Sergio was managing resistance to
change. This is one of the biggest obstacles that are experienced by managers who try to create
change. However, it is a typical reaction that employees must show. Good managers know how
to create changes and overcome the workers' resistance to the changes that are being made.
Sergio developed an excellent method of overcoming the change resistance that existed within
the company. He initially began by telling the employees that they should expect which was to
prepare them psychologically that they should expect changes. Hence, when the real changes are
made, they would be ready for them. The other clear method that he used to prevent resistance
was firing those he thought could not be talked out the resistance. Hence, any of the changes that
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were to be created found a fertile since all the people challenging the changes were no longer
5.0 Conclusion
This article has looked at three case studies on management. Some of the organizations
have had their profits reduced by billions. On the other hand, some having started small and had
been managed well to move from debt to profit. Notably, Fiat and Chrysler have got so much
profit within a period of just two years while Sony and HP have had a decrease in the number of
sales made. Therefore, it can be concluded that a business should adopt a proper management so
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References
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