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Manager's Impact on success/failure

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Silviana Falcon

on 10 September 2015

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Transcript of Manager's Impact on success/failure

Manager's Impact on success/failure
Omnipotent
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.
External Environment
LE PEST
Symbolic
LEGAL
Employment Law
International Law
New Legislation
Economic
Taxation
Changes in interest
Changes in exchange rates
Significant Market trends
Political
Change of Government
Change of Gov. Policies
Major International Developments
Environmental
Climate Change
Natural Phenomena
Ecological/Conservation Issues
Social
Demographic Changes
Changes in educ. level
Lifestyle Trends
Ethnic and/or Religious Factors
Technological
IT Developments
New Patents
New Research
Stakeholders
Reality is:
Managers are not all powerful (omnipotent) nor are we totally helpless (symbolic)
Accept change as the NORM
Change as two dimensional:
Degree of Complexity
(knowledge)
Degree of Change
(unpredictability)
The story of three CEO's
Mr. Rick Wagoner
Mr. Alan Mulally
Mr. Robert Nardelli
LE PEST ANYONE?
Environment:
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
November 2008
We are too big to Fail: $25 Billion Loan Request
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
Stakeholders?
Full transcript