An Organizational Failure: Blockbuster Essay

1. Describe and discuss how the organizations culture facilitated the failure. Philips (2011) believes that mastery or failure of either great company depends on Events, subjective and external (p. 3). smash hit also appears to be a victim of true evets at internal as well as external level. found in McKinney, Texas, smash hit and founded in 1985 ( blockbuster Corporate, 2012) and it ushered in a untested earned run average as far as photo rental retail diligence was concerned. The company gave birth to video rental places that had significant amount of movies down the stairs one roof (the first lay in had 8,000 movies) and were non associated with bad movies or bad neighborhoods (Greenberg, 2008). Initially, the companys dodging was to expand aggressively and the leaders defined blockbusters view to become McDonalds of the video rental worry. Referring to the company leaderships ambitious goals, Greenberg writes The megahit strategy was simple pump as much mone y as possible into buying local and regional chains while keeping centralised control over the look and feel of the individual stores.By the VSDA figure the following year, blockbuster had acquired devil other chains and its more than 250 stores constellate the country. At the convention, Huizengas marketing executive Tom Gruber outlined vision for the future of the company, and it was expansive. Gruber had spent eighteen old age working for McDonalds in advance joining megahit, and both he and Huizenga were explicit Blockbuster demanded to be the McDonalds of home video (the comparison was so deliberate that at one trade show presentation, huge photographs of Huizenga and McDonalds leader rhenium Kroc were projected side-by-side). (p. 128) So, Blockbuster came into being with a big bang and a unique presentation which was reflected in its slogan Wow, What a difference (Greenberg, 2008). In the beginning, the company even hired greeters who would welcome customers at each localization of functions entrance whereas the employees were provided with manuals about how to deal with customers.That was the beginning. The strategy and vision worked astonishingly well. However, as the company travelled with fanf be down the road, it developed a culture that might have its roots in complacency. The obsession with working out seemed to derail a process the leadership should have put in place. Rayburn (2009) recalls how Blockbusters culture became a liability for the company and lastly led to its bankruptcy. In 1999, a company called Globix (Rayburn was representing it at that time) was trying to overhead a deal with Blockbuster in order to deliver movies to customers online. However, Blockbuster decided to partner with Enron instead of Globix. Rayburn (2009) goes on to point out that though Blockbuster was discussing future developments in advance and contemplated about a digital media strategy substance before consumers wanted the service and the Internet was even able to support it, that foresight on their part never materialized into any real online video strategy over the next ten years (para. 4).What surp scrape ups Rayburn (2009) is that on that point was no deal between Blockbuster and Enron as was announced in 2000. In his view, Blockbuster had a great chance to be in the driving seat and should have been in the position Netflix is in now as they were the first movers in the market. Yet ten years later, the company still cant seem to get their lick together when it comes to digital media (para. 5). Apparently, it took a bankruptcy to do the course field of study as far as the companys future concern is concerned. Blockbusters mission statement now takes into account todays mankind. It says (Retail Industry, 2012) Our corporate mission is to provide our customers with the most convenient glide path to media entertainment, including movie and game entertainment delivered through multiple distri andion impart much(preno minal) as our stores, by-mail, vending and kiosks, online and at home.We believe Blockbuster offers customers a value-prices entertainment experience, combining the broad product depth of a military strength retailer with local neighborhood convenience. (Blockbusters Mission Statement) The timeline of the companys existence shows the culture of inaction at the top level detain changes for a truly long time. The company introduced Blockbuster Total access program aimed at online as well as in store renting as late as November 2006 (Blockbuster Corporate, 2012). On the other contribute, Netflix started its locomote in 1996 and introduced its subscription service in 1999 and by 2010 it had 20 million subscribers (Netflix, 2012).2. use the appropriate tuition disabilities and laws that describe this situation. Like other organizations that hit stumbling blocks, Blockbuster had its hurdles in the shape of certain learning disabilities. One such disability is what Professor Senge (2006) calls the fixation on events. He writes Conversations in organizations are dominated by concern with events last months sales, the modern budget cuts, last quarters earnings, who just got promoted or fired, the in the raw product our competitor just announced, the delay that just was announced in our new product, and so on. The media reinforces an emphasis on short-term events after all, if its more than two days old its no seven-day news. (p. 21) Another learning disability Blockbuster may have move prey to is the parable of the boiled frog. Senge (2006) explains that Maladaptation to gradually building threats to excerpt is so pervasive in systems studies of corporate failure that it has given rise to the parable (p. 22).Blockbuster also seemed to pay attention to events and little commission on learning new things and look beyond the horizon. Plus, it remained complacent as the leader of video rental company until Netflix and RedBox surged ahead to the extent that Blockbuster had to file for bankruptcy. impose (2010) also blames Blockbuster for not being proactive in learning and bringing the desired changes. He believes Change centering is not just a tool to deflect distracting maybe-we-shoulds, scarcely its also a way to handle legitimate we-need-tos that were lost at the start or that are responses to a changing business environment (para. 7). So, instead of take charge in a extravagant changing rental business, Blockbuster refused to budge from its brick-and-mortar edge.Gradually, that edge fell by like house of cards because the leadership failed to set in dubiousness certain processes that should have allowed Blockbuster to remain the leader of the video rental retail industry. Moreover, the companys leadership had their inwardnesss set on something else, too. Is there any reason to believe that Blockbuster once time-tested to pur traverse Circuit City in 2008? According to Farfan (2010) it did happen but Circuit City rejected the offer and later on Blockbuster withdrew its offer. Just two years later, Circuit City is out of business, and Blockbuster is struggling to stay out of bankruptcy court itself. The combination of the two companies seems somewhat symbiotic today, in a sad like-attracts-like kind of way (Farfan, 2010, para. 11).3. Explain the elements of the organizations culture that will lead to standardised failures in the future. Lack of focus and clarity in the vision may bring problems for the company in the future as well. Similarly, overconfidence in having sensible locations may overshadow the future planning once again. The leadership must look into the fact whether the video store locations in varied parts of the country are a benefit or a disadvantage. It may be very difficult to let go those locations, but if it is the right thing to do keeping in view how consumers want movies and games then the company should get rid of those locations.Though the company has new management after i t was taken over by dish out net profit Corporation, the mission statement still attracts critics. Commenting on Blockbusters future, Levy (2010) argues that the companys mission statement has competing priorities. He points out This flocculent vision (officially the corporate mission statement) provides no clear guidance against which confused corporate managers can test their ideas and initiatives. Drop prices? Its in there. beset them to cover our depth? Its in there. Compete with Netflix? Its in there. Have brick-and-mortar high-monthly-nut locations? Its in there. Make money? Oops, thats not in there. (para. 6)The new leadership at the company seems to recognize the reality and wants to let investors and other stakeholders know that it is evolving as the media entertainment industry is transforming. objet dart transforming and diversifying its store-base continues as a company priority, BLOCKBUSTER now offers convenient access to media entertainment anywhere and any way c onsumers want it whether in stores, by mail or digital download (Blockbuster Corporate, 2012).4. Recommend specific actions the organization can take to prevent future failures from occurring. First of all, it should keep an eye on technological advancements that are happening at a very fast speed. It will allow the company to feel the pulse of what is liberation on and what might occur down the lane. The company should hire a chief learning officer in order to make learning an integral part of the organizational culture. At the same time, by develop a culture of learning will help the company set up to changes and challenges that may be thrown at it. As Philips (2011) mentioned in his book, Blockbuster has to make sure events taking place within the organization and outside the organization should not come as surprises.He advises that learning and changing at a required pace is necessary for organizations. Moreover, if the company believes physical locations still make the comp any a leader it should build a unique culture of customer service so that people demand for Blockbuster visits. Philip (2011) reminds policy makers that Just as history is not make by great men alone, so companies and countries dont go bust just because one or two people chase the dream too hard. They need a support staff (p. 59).Since Dish meshwork has its own subscribers, it should attempt to attract additional customers through combinations of Blockbuster-Dish Network offerings. Similarly, the company should not underestimate other companies just because they are startups. Actually, there may be reasons to learn from new business models in the industry. Woloszynowicz (2010) informs his readers that Netflix was not a success in the beginning as its IPO dropped from $15 per plow to $6 per share after it was launched. On the other hand Blockbuster leadership interpreted slide in Netflixs share as a failure and thought the company is not breathing out to make any difference in th e industry.ReferencesBlockbuster Corporate. (2012). Company Overview. Retrieved January 17, 2012, from http//blockbuster.mwnewsroom.com/Company-Overview Greenberg, J. M. (2008). From BetaMax to Blockbuster Video stores and the invention of movies on video. Boston, MA MIT Press. Levy, S. B. (2010, September). Blockbuster Goes Bust Outfoxed by Redbox, Licked by Netflix. Retrieved January 17, 2012, from http//lexician.com/lexblog/2010/09/blockbuster-goes-bust-outfoxed-by-redbox-licked-by-netflix/ Netflix. (2012). A brief history of the company that revolutionized honoring of movies and TV shows. Retrieved January 17, 2012, from https//signup.netflix.com/MediaCenter/ TimelinePhillips, T. (2011). Fit to bust How great companies fail. Philadelphia, PA Kogan Page. Rayburn, D. (2009, July 16). Ten age Later, Blockbuster Still Lacks A Digital Media Strategy (BBI). Retrieved January 17, 2012, from http//blog.streamingmedia.com/the_business_ of_online_vi/2009/07/tens-years-later-blockbuster -still-lacks-a-digital-media-strategy.html Senge, P. M. (2006). The fifth field of operation The art and