The purpose of any business enterprise is growth and progression. However, the object of growth may not be realized due to failure in performance and results. Various factors may contribute to the businesses’ failure. To avert future failure in the organization or in business however, failure analysis may be carried out to assess the contributing factors. Out of the failure analysis, solutions may be found. The same may be depended upon for the future success. It must be understood from the outset that the leadership and the management of any business enterprise are fundamental and play pivotal role in the performance of the business.
JC Penney Failure Case
The first part of this paper will delve into the failure experienced at JC penney’s business. The same will be looked into the prisms of leadership, management, and the culture of the organizational departments. Firstly, the failure the JC Penney’s is as a result of poor pricing. The trend has been the use of coupons, which was replaced by the sales. The strategy adopted by Penny is therefore failing because it is not reflective of the needs of the customers. The management is in charge of this. Secondly, JC Penney has modeled its stores like those of the Apple. However, there is a huge difference between the two companies. For there to be a success in a company, the structural model adopted must be reflective of the customer needs. The needs can be deciphered from the goods and the services offered by the business.
The Amazon Success Case
Various strategies must be employed for a business enterprise to record, and continue recording, success. An example of a company that has continued to record successful business strides is the Amazon. The strategies that Amazon employs in its pursuit to success include but not limited to advertising, product mix, branding, product listings, pricing, customer service and fulfillment. The pricing strategy is that products are priced competitively. Free shipping is provided for shoppers. All the aspect strategies are aimed at customer satisfaction. Product listing must be very clear and concise. Amazon boasts of a unique branding registry. It offers a unique class of selection that meets the customers’ needs. It must be understood that if many businesses deal with the same products, the only way to win is on pricing (Grover and Markus, 2008).
Leading Organizational Change
Leadership is critical in the aspect of organizational change. A Chief Executive Officer (CEO) who leads an organization whose failure is imminent must adopt specific strategies in order to avoid the failure in the offing. Firstly, one has to assess the needs of the employees. The needs may be personal. Once the needs are satisfied, the CEO must undertake to improve the productivity of the workforce. Working as a team is pivotal. The CEO must make sure that all the employees work together harmoniously. Growth of the confidence in the team is fundamental. Other aspects of success include; ability to succeed under pressure, increased emotional intelligence and improved charisma (Mobley, 1999).
A good leader motivates and communicates with the subordinate staff. Communication is key in realization of the challenges that the subordinate staff faces. The leader must convert the employees to be vision-oriented and thus work hard towards the realization of the business vision, mission, core-values and objectives. Competence and skills are the basic necessities that are required. As a leader, one is supposed to encourage the other employees in the realization of the goals. One is also required to mobilize the required resources in the name of averting the looming failure in the business venture (Mobley, 1999).
- Grover, V., & Markus, M. L. (2008). Business process transformation. Armonk, N.Y.: M.E. Sharpe.
- Mobley, R. K. (1999). Root cause failure analysis. Boston: Newnes.