英国留学-Case Diagnosis essay

Invigorate Footwear是盈利极高的，受消费者喜爱的公司，也有着高度的社会责任的美誉与商业道德。它享受着30余年卓越的称号，但在2011年时，由于高竞争和成本的增加，为了降低成本，它承担一了个项目。这一决定是在很匆忙压力很大的情况下进行，结果严重失败。这个项目的失败不仅为他们在市场上创造了一个不利的名声，而且整个劳工也感到被出卖和被欺骗。Leiber有困难了。利润下降,公司正处于危机之中。消费者们对Invigorate失去了信任。该公司曾经有着极度高的责任感与环保意识，但现在却变成了一个伪君子。Leiber的每个儿子正在努力地接管该公司，Leiber没有给予任何影响权力给他们任何人，尽管他们有着高学历和业务培训资格。他们制造的沮丧氛围正在围绕影响着他们。公司濒临破裂。他们需要改变以确保生存。

 

 

Invigorate Footwear was the most profitable, favorite among consumers and a company holding a reputation of high CSR and Business ethics. It enjoyed 30 odd years of excellence when in 2011 owing to high competition and increased costs it undertakes a project to lower is cost. The decision is made under pressure and haste and fails badly. The failure of the project does not only create for them an adverse reputation in the market but the entire labor force also feels betrayed and cheated. Leiber is in trouble. Profits are falling and the company is in crisis. Consumers lost their trust in Invigorate. The company that once was renowned to be an extremely socially and environmentally responsible becomes a hypocrite. Each of the sons is struggling to take over the company. Leiber has not given any influencing power to anyone of them despite their high qualification and business training. This is creating frustration among them. The company is on the verge of breaking up. There is a need for change to secure its survival. To save the 30 year old company from disappearing, much will be needed to be done.

 

介绍--Introduction:

 

The aim of the study of the mentioned case becomes to provide the necessary changes, improvements, replacements needed to let the company regain its position on which it had once been. The critical analysis will direct the company towards the achievement of its goals and objectives and the ways through which they can be most effectively gained.

Invigorate footwear, as the name suggests, aimed to provide high quality, design and comfortable footwear, initially for the higher rich class then to the mass market. Its founder, George Leiber managed to set out an example of a highly responsible employer, producer, manufacturer and consumer. The high quality manufactured shoes were produced keeping providing the employees with a generous remuneration, customers a high quality, comfortable and trendiest footwear and purchasing hides from the local suppliers making them entirely dependent upon Invigorate Footwear. Invigorate footwear continued to enjoy high profits, loyal employees, satisfied customers, high reputation of socially and environmentally responsible and supplier dependency upon it till 30 odd years.#p#分页标题#e#

 

Reaching a saturation point of its business cycle was probably inevitable for Invigorate Footwear. Increased competition of competitors entered the market by 2010. Having a competitive edge over the costs, technological changes making the manufacturing extremely resource sensitive, aging workforce of Invigorate footwear, employees reluctant to changes accompanied by falling profits suddenly threatened the survival of Invigorate Footwear. The management team piloted a project to purchase tanned leather from Vietnam to reduce costs. Later on, the news covered the highly irresponsible attitude of the Vietnam group towards it community, environment and labor laws. The mismanaged project proved to be a great disaster and proved a blow not only to the financial investment for the project but also Invigorator's reputation that it had earned over the decades.

 

The project created dissatisfied employees who thought they were being cheated as they were kept unaware of the project. The exclusive reputation of corporate social responsibility went down the drain in a single moment. Millions of loyal clients found their trust broken and betrayed. The suppliers were annoyed who were catering Invigorate for over the decades and relied completely on it. The sounds of 'neglected social responsibility' echoed everywhere.

 

The presented report will carry out a detailed analysis of the current situation of Invigorate Footwear. It will diagnose the complexities, problems and threats that Invigorate footwear is undergoing and explore opportunities existing in its business environment. Not only this, the analysis will lead to suitable conclusion to direct the company to come out of crisis and regain its position that was once looked upon as an example for all.

 

案例诊断 --Case Diagnosis

 

To correctly diagnose the case of Invigorate Foot wear, reaching the root cause of the crises needs to be identified at the initial stage. We see a flourishing, highly reputable (CSR), quality conscious and employee empathetic organization suddenly moving down the slope of its business cycle. The sudden and drastic does not have a single reason to relocate the position of Invigorate on its business cycle. To place the entire burden of the downfall upon the failure of the project carried out to reduce cost is not justifiable. A paternalistic management style within the organization followed which exaggerated the affect of the failed project. Too much confident of one's designs and 30 years of success made Leiber a little too over confident and self centered. Nearly all the stakeholders felt betrayed, not because they were provided less but they were made to expect too much. The stakeholders were too accustomed to be treated like a 'family' that was taken 'too much' care of. Failure to do so in a single circumstance, affected all of them at once, because they all were in fact 'too close' to 'their' organization. An unusual high reputation of corporate social responsibility and business ethics was too much to bear for Invigorate in an exceptional circumstance.#p#分页标题#e#

 

分析--Analysis

 

The above diagnosis identifies some of the major causes that followed the crises of Invigorate. Provided below is the analysis of each of the issue that has contributed to the sloping position of Invigorate on its business cycle.

 

管理不善的项目，旨在降低成本--The mismanaged project that aimed to reduce costs

 

The increased competition made it inevitable for Invigorate to reduce its cost in a similar way as they had loose a great market share and much could be lost. The decision to outsource the tanning process to reduce costs was good in its nature but was not being carried out well. No evidence of research is shown before choosing the Vietnam group. Choosing to outsource seemed an abrupt decision that was thought and taken. To carry it successfully, no majors were taken. We also see no evidence of any criteria and standards that the Vietnam Company was being informed of before the deal was being made. Owing to its high reputation the responsibility of carrying the responsibility of the reputation lied on Invigorate. In addition to it the decision seems to be taken in a lot of pressure without the support of effective and strategic management.

 

管理风格--Management style

 

Although Leiber was popular among stakeholders, he lacked in some aspects which became too significant is some circumstances, as during the outsourcing project.

 

Employees were offered a generous remuneration. As Taylor believed in the 'economic man', a part of Leiber also seems to be. On the contrary Herzberg has rejected this idea. He considered forces apart from money that keeps workers motivated (Stimpson 2002). The case provides evidence that Leiber possessed the thought of both the theorists. Leiber carried environmentally and socially friendly manufacturing and production. He offered a handsome rate to his employees whilst taking care of their other nonmonetary needs but lacked behind in an aspect that is described my Herzberg as a motivator. The entire power of decision making was owned and kept my Leiber. His son's were fixed at high positions but no influencing power is what they had. Highly qualified though, Leiber does not wish to recognize their abilities and immediately rejects any ideas, creativity and designs put forward that did not match his ideas. Apparently employees enjoyed being a part of Invigorate and felt it an honor which reflected a lassize faire style but had deep roots of paternalistic leadership which embossed upon the failure of the project.

 

不受欢迎的想法--Unwelcomed ideas

 

Leiber is not seen to have been encouraging young blood and advanced creativity with changing styles into his company. He reflects an image of a manager who thinks 'I am always right': total control over deign and its approval'. Design is the main focus in this consumer oriented market. Tastes change among generations. Leiber ignorance towards other creative ideas of his employees may not prove a good approach in future. His young children have the relevant knowledge and a little training will enable them to cope up with the changing market trends of their generation.#p#分页标题#e#

 

高期望 --High expectations

 

A very high reputation among public in all aspects is not always too favorable. The greater you prove yourself, the greater expectations from the public. This makes one undergo a typical pressure which makes him responsible of acts that may be acceptable in case of others but not you. In short, Invigorate has been expected 'too much' from all of its stake holders. Suppliers seemed to have been relying solely on Invigorate, consumers highly impressed by the quality, design and its CSR and employees too much taken care of.

 

新技术的引入--The introduction of new technology:

 

Increasing high completion and costs makes it necessary for Invigorate to go for new and advanced technology. It is natural for employees for any company to remain reluctant to a decision that may replace their skills. We see Leiber is finding difficult to delayer its aging staff and feels under pressure to introduce the new technology. Under this pressure the project seem to be piloted. He also fears labor unions. These employees may become liability to Leiber instead of asset. As Herzberg, Adam, Maslow and Elton Mayo described the factors affecting the motivation levels in employees should be followed strictly in order to come out of this critical situation (Kinicki 2003). Labor forms the largest asses for any organization and at this moment Leiber cannot afford to lose loyal, trained and skilled workforce.

 

结论和建议--Conclusion and recommendations

 

We will draw conclusions and recommendations on the basis of the analysis and the SWOT (see appendix 1)

 

The detailed picture of the case reveals some areas of management not dealt with expertise. To come out of this crisis following recommendation shall be made:

 

We see the leadership style to be paternalistic but keeping the employees satisfied and motivated following Taylor's (Miller 2008) and Herzberg's theory (Stimpson 2002) Leiber should employ a more democratic style and let his sons contribute to the company to ensure the survival of the company in the future.

 

Leiber should understand that the younger blood, if encouraged to participate will be able to drive the company successfully to the future. This is because they are well aware of the changing styles and trends of the younger generation. Leiber employs a traditional approach to design. Creativity should become a part of the organization where designs are the main focus. Similar patterns will not only create boredom among the consumers but they will seek to competitors designs who may offer something different.

 

It is beneficial for Leiber to adopt new technological change which will lower his cost. The decision needs to be made after proper planning and excessive research. As for the reluctance from the workforce, it should be handled strategically. This may mean to offer employees shares of the Invigorate Footwear to those who have been made redundant. Those workers retained by the company can have an open discussion with Leiber for the company's future plans. This will motivate them and will develop the trust in the company again.#p#分页标题#e#

 

It is also advisable for the company to devise a policy that would help them bear the expectations from the stakeholders owing to their 'too high' reputation. They should adopt behavior, attitudes and policies that 'just' make them a socially responsible company that follows labor laws and is well aware of the business ethics. These attributes should not be carried by the company at an extraordinary level.

 

参考文献--References:

 

Kinicki. A., (2003). Organizational Behavior, Concepts, Skills and practices, 2nd edition. MacGraw-Hill Companies Limited, New York, pp 177-180

 

Miller, K., (2008). Organizational Communication, Approaches and Processes. 5th edition. Lyn Uhl, USA, pp 25-28

 

Stimpson, P., (2002). Business Studies, Motivation in Theory & Motivation in Practice. Cambridge University Press, UK, pp224-237

 

Johnson, EJ., (1998). Divide and prosper: consumers' reactions to partitioned prices, Journal of Marketing Research, vol. 35, pp. 453-463.

 

Urban, G.L., (2004). The emerging era of customer advocacy, MIT Sloan Management Review. vol 45, pp. 77-82

 

Griffin, R.W., and Pustay, M., (2009). International Business: A managerial perspective, 6th edition. New Jersey: Pearson Prentice Hall-Pearson Education International.