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Manager's Impact on success/failure
Transcript of Manager's Impact on success/failure
Managers directly responsible for an organization's success or failure.
"Someone" has to be held accountable and that "someone" is the manager.
Manager's ability to affect performance outcomes is influenced and constrained by external factors.
Managers are "symbolic": symbolize control and influence only.
Changes in interest
Changes in exchange rates
Significant Market trends
Change of Government
Change of Gov. Policies
Major International Developments
Changes in educ. level
Ethnic and/or Religious Factors
Managers are not all powerful (omnipotent) nor are we totally helpless (symbolic)
Accept change as the NORM
Change as two dimensional:
Degree of Complexity
Degree of Change
The story of three CEO's
Mr. Rick Wagoner
Mr. Alan Mulally
Mr. Robert Nardelli
LE PEST ANYONE?
Declining Sales: 37% from prior year
=400,000 fewer vehicles or 2 factories' annual output.
Not operating competitively = focus on SUVs instead of energy efficient cars
Gas prices on the rise
Too many brands, too many dealerships (relaxing of state franchise regulations)
Unemployment on the rise
Closures would translate into an additional 850K job losses in manufacturing and 1.8M in auto dealerships
We are too big to Fail:
25 - 35 BILLION Loan needed to avoid bankruptcy:
10.0 to 18.0 Billion for GM
8.0 to 9.0 Billion for Ford
7.0 to 8.0 Billion for Chrysler
17.4 Billion Loan
January 15th, 2009
Not enough money to keep them afloat. Need second loan $13.4 Billion
Second Loan Request Granted
by President Bush
January 15th, 2009
President Obama takes office
January 20th, 2009
Attention to Stakeholders