Failure Analysis
Initiating a business has the capability of leading to financial independence, and at the same time has the capability of initiating a road to ruin. There are diverse factors that come into play in defining a success or a failure of a business. Some of the critical issues identify with startup costs, operating costs, extremely depending on other people or organizations, engaging the wrong employees and unhealthy cash flow. Other factors are; leadership styles, organizational structure, mode of communication, objectives, mission, vision and management. This paper reflects at factors contributing to the failure of Blockbuster and the success of Apple.
Blockbuster Entertainment Inc. or Blockbuster LLC is an example of a failed business. The multinational American firm provided video game rental services and home movie rental services through video rental shops, DVD-by-mail, video on demand, streaming and cinema theater as part of the core objectives (Taylor, 2013). Blockbuster faced stiff competition from Rebbox and Netflix among others hence filing for bankruptcy in 2010. The company was later purchased by Dish Network. The failure of Blockbuster business process management is directed at not changing the organizational trends with the changing business environment (Taylor, 2013). Blockbuster failed to recognize the changing consumer needs in the target market. Blockbuster engaged autocratic leadership, unclear communications models and hierarchical organizational structure. Vision statement of Blockbuster focused on valuing diversity and the mission statement focused on focused on the best models of serving the target customers (Taylor, 2013).
Apple Inc. is a public multinational company that has been successful over the years. There are high indications that Apple changes with the times and spearhead the changes depending on the needs and wants of the customers in the technology industry, as part of the key objectives (Isaacson, 2013). It has been noted that people creating Apple products enjoy using them, Apple products are easy to use, Apple beliefs in keeping things simple, Apple offers great in store and customer service experiences, Apple targets on products that they can do better and that Apple manages a gap of two years ahead of the competitors (Isaacson, 2013). Apple fosters strategic leadership, innovation, open communication and a flat organizational structure to evade bureaucracy. The vision of Apple focus on creating beautiful, sleek and easy to use technology in real life situations; the mission of Apple argues that man is the creator of change and that Apple is in place to bring out the change (Isaacson, 2013).
Apple engages learning theory which is also referred to as the behavioral analytic theory of change. This has been possible by analyzing complex behaviors within the organization and coming up with simple behaviors that are accustomed to the vision and the mission of the organization (Isaacson, 2013). Blockbuster failed to change with the changing environment, due to holding on the old ways of doing things (Taylor, 2013).
Social cognitive theory is also referred to as the social learning where the behavior of individuals and organizations is guided by the internal and the external environmental elements. Apple considers the external environment as the guide to the internal environment contributing to its success (Isaacson, 2013). Blockbuster on the contrary believed so must on its internal environment and failed to recognize the changing needs and wants of the target customers in the external environment, hence contributing to its failure (Taylor, 2013).
Management, leadership, organizational structures and the organizational cultures in Apple and in Blockbuster contributed to the fate of the two organizations. The operations of Apple respect simplicity guided by the Steve Job’s model, as compared to the Blockbuster that engaged complex model of operations. Apple thinks brutal, small, clarity and human as pertaining to the changing business environment.
References
Isaacson, W. (2013). Steve Jobs. New York: Simon & Schuster.
Taylor, J. (2013, January 14). Blockbuster – How blind spots led to failure. Retrieved November 23, 2013, from Prezi.com: http://prezi.com/vb7msogfankm/blockbuster-how-blindspots-led-to-failure/
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