Case Study: How Should a Worried CEO Tackle Declining Sales and Employee Morale?

Case Study Analysis Answer

A Worried CEO

In this case study analysis, we focus on a worried CEO who is facing challenges within the organization. The CEO's concerns revolve around declining sales figures, employee morale issues, and increased competition in the market.

To address the declining sales figures, the CEO must conduct a thorough analysis of the market trends, customer preferences, and competitive landscape. Implementing targeted marketing strategies and exploring new sales channels could help boost sales and revenue.

Employee morale issues can be tackled through effective communication, transparent leadership, and creating a positive work environment. Conducting regular team-building activities and recognizing employee contributions can also improve morale and productivity.

In response to increased competition, the CEO should invest in research and development to innovate products or services, differentiate the company's offerings, and stay ahead in the market. Collaborating with industry partners and staying updated on market trends are also crucial in this competitive landscape.

Overall, the worried CEO can overcome these challenges by being proactive, strategic, and adaptive in the decision-making process. By addressing each concern systematically and involving key stakeholders in the solutions, the CEO can lead the organization towards success and sustainable growth.

A Worried CEO

Sudarshan, the Managing Director of M. Feeds, a Bangalore-based company, is a worried man. All his efforts to regain the lost market and to wipe out the red in the company's balance sheet have proved futile. Sitting alone in his chamber, lighting up cigarette after cigarette and sipping cups of coffee, Sudarshan started recollecting events of 1987 which wrecked the fortunes of a once successful company.

Subbu and his team got defeated in the union election held at the beginning of 1987. Rivals, Gowda and his team, got elected with a comfortable majority. The winning team had a leaning towards CITU, which was known for its militancy. The attitudes and actions of Gowda and his team were not to the liking of the management, particularly Setty, the Factory Manager. The management was waiting for a way out to deal with the new team of unionists. Not reconciled to the loss of power, Subbu and his cronies started a cultural association with an apparent objective of promoting Kannada, the local language. Setty welcomed the formation of the association and, in fact, even encouraged its activities. The management too gave financial support to the cultural outfit. Emboldened by the encouragement given, Subbu and his team demanded that the management should negotiate with them about all matters relating to employee welfare. This proposal was not acceptable to the management, which turned it down. But Setty began hobnobbing with Subbu often to the consternation of the leaders of the recognized union.

One day, Gowda and Subbu had a heated exchange of words which resulted in a physical bout inside the plant. Sridhar, the HRD Manager, placed the duo under suspension on grounds of indiscipline. An enquiry was conducted in which Subbu was acquitted. But Gowda refused to appear before the enquiry officer. Having been acquitted, Subbu demanded reinstatement, which the management readily agreed to. Subbu, with triumph writ large on his face, came to the factory, but the team led by Gowda protested by calling a strike. The management assured Gowda that he too would be reinstated provided he was acquitted by the enquiry officer. Gowda was in no mood to listen to the management nor was he prepared to face the enquiry. Subbu demanded reinstatement which Gowda protested. The stalemate continued and the strike lasted three months. Work resumed after prolonged talks, but the scars remained. Setty got the sack and Sridhar left and joined an Indo-French company. M. Feeds lost its customers and the efforts (setting up, for the first time, a marketing department) to regain their patronage did not succeed. The bottom line became red and it grew thicker as years went by.

Questions:

1. What should Sudarshan do?