Business Failure Analysis/Leading Organizational Change Essay
July 15, 2013
Business Failure Analysis/Leading Organizational Change
Team D’s assignment consisted of two parts; first we selected a business that failed and one that has succeeded within the last 5 years and identified their objectives, visions, and missions. After our research we determined the indicators of the business failures and successes. In our paper we will describe how specific organizational behavior theories could have predicted or explained the company’s failures or successes and how leadership, management, organizational structure, the culture of the organization and its departments played a …show more content…
In section two, Learning team D chose to analyze the fall of Blockbuster and its inability to evolve with the new trends in movie and game entertainment. During its prime, Blockbuster was the giant that dominated the movie and entertainment rental industry. The practice of driving to a store and renting a movie to watch at home was a ritual enjoyed by many across a broad range of age groups and demographics. The gold standard of in-home entertainment was destined to change with the times, and Blockbuster’s failure to adapt to changing market lead to its demise. Stephen Gandel, details the downfall of Blockbuster in an article written in Time Magazine. According to Gandel (2010), it was evident years before Blockbuster’s fall that their model was unsustainable. It allowed a small upstart, Netflix, that used nothing more than a website and the postal system to develop, and eventually take over, its market share six years before Blockbuster launched its own movie-by-mail service (2010). Gandel also noted that Blockbuster pushed money into schemes in attempts to keep the out of date retail business alive. These tactics only delayed the inevitable filing for bankruptcy on September 23, 2010 (2010).
As a management team brought into Blockbuster, the precedent of evolving with the fast-paced