Select one company that has had a major public failure as a result of: 1. Managerial incompetence or inexperience 2. Neglect 3. Weak control systems 4. Insufficient capital examples: Enron, Pets.com, Betamax, Swiss Air, Polaroid, DeLorean Motors and select one company that has had major success as a result of: 1. Hard work, drive, and dedication

QUESTION

Select one company that has had a major public failure as a result of:
1. Managerial incompetence or inexperience
2. Neglect
3. Weak control systems
4. Insufficient capital
examples: Enron, Pets.com, Betamax, Swiss Air, Polaroid, DeLorean Motors
and select one company that has had major success as a result of:
1. Hard work, drive, and dedication
2. Market demand for the products or services being provided
3. Managerial competence
4. Luck
examples: Apple, Amazon, Wal-Mart
Submission Requirements:
Please submit a two-page paper, double-spaced, in 12 point Times New Roman font formatted in MLA style (click HERE for a sample paper formatted in MLA style). Be sure to address:
Important note:
Because the text focuses a section on a comparison between Blockbuster and Netflix, you may not write your paper about those two companies, but should select companies that will require research beyond the text.
In your paper, be sure to address:
1. Some basic background on each company so that we can understand the context for its success or failure.
2. The reason the company failed or succeeded and some specific evidence of their failure or success. This could come from a comparison of revenues or profits at two or more points in the company’s history, a direct quote from an appropriate authority, or from some other kind of appropriate evidence.
3. Why you feel they best fit the profile of failure or success within the context of the reasons given.
4. If the company failed, what do you think they could have done to prevent failure?
5. If the company is successful, what do you feel they can continue to do to remain that way?
6. Why you feel additional factors such as flexibility, innovation, or adaptability to market demands also contribute to company success or failure.
7. In what ways do you think the reasons for failure and success are attributed to the models of communication?
Note: think of this as a paper and not as merely an exercise in answering these six questions. In other words, I am looking for a strong beginning that lays out your central thesis and then a paper that flows logically from paragraph to paragraph and that ends with a conclusion that gives the paper a satisfying sense of closure. Be sure that you support each of your key points with specific detail. For example, if you say that a company should have recognized warning signs about the prospect of failure, you might use a direct quote for an appropriate authoritative source

ANSWER

 The Rise and Fall of Blockbuster and the Success of Tesla

Introduction

The business landscape is rife with examples of both success and failure. This paper explores the contrasting fortunes of Blockbuster, a company that experienced a major public failure, and Tesla, a company that has achieved remarkable success. By examining the background, reasons for failure/success, and the impact of communication models, this paper aims to shed light on the importance of managerial competence, market demand, hard work, and adaptability in shaping the fate of companies.

Section 1: Blockbuster – A Cautionary Tale of Managerial Incompetence

1.1 Background: Blockbuster was once a dominant force in the video rental industry, founded in 1985. It operated a vast network of brick-and-mortar stores and became synonymous with movie rentals.

1.2 Reasons for Failure: Blockbuster’s downfall can be attributed to managerial incompetence and weak control systems (McKinnon, 2023). The company failed to adapt to changing consumer preferences and technological advancements, specifically the rise of online streaming services.

1.3 Evidence of Failure: Blockbuster’s financial decline is evident in its revenues and profits. At its peak in 2004, the company reported revenues of $6 billion. However, in 2010, Blockbuster filed for bankruptcy, burdened with a debt of $900 million. Meanwhile, Netflix, a competitor that embraced streaming, experienced exponential growth during the same period.

1.4 Fit of Failure Profile: Blockbuster epitomizes failure due to managerial incompetence and weak control systems. Its inability to recognize the potential of online streaming and adapt its business model led to its demise.

1.5 Prevention of Failure: To prevent failure, Blockbuster could have invested in research and development, fostering innovation and adaptability. By closely monitoring market trends and consumer preferences, the company could have transitioned into the digital streaming era.

Section 2: Tesla – The Triumph of Managerial Competence and Market Demand

2.1 Background: Tesla, founded in 2003, is an innovative company specializing in electric vehicles (EVs), energy storage solutions, and renewable energy. Led by Elon Musk, Tesla quickly became a symbol of technological advancement and sustainability.

2.2 Reasons for Success: Tesla’s success can be attributed to a combination of hard work, managerial competence, market demand, and luck. Musk’s vision, leadership, and dedication played a crucial role, along with the increasing demand for environmentally friendly transportation and energy solutions.

2.3 Evidence of Success: Tesla’s financial performance showcases its triumph. From a revenue of $204 million in 2010, the company recorded a staggering $31.5 billion in 2020. Tesla’s market capitalization also surpassed that of traditional automakers, demonstrating investor confidence in its business model and future growth potential (Energy, 2023).

2.4 Fit of Success Profile: Tesla exemplifies success through hard work, market demand, managerial competence, and luck. The company successfully tapped into the growing interest in sustainable transportation, while Musk’s entrepreneurial skills and innovation-driven approach paved the way for its triumph.

2.5 Continuation of Success: To maintain success, Tesla should continue focusing on innovation and technological advancements in the EV industry. Strengthening its manufacturing capabilities, expanding its product lineup, and investing in research and development will be crucial to staying ahead of competitors.

2.6 Additional Factors: Flexibility, innovation, and adaptability are vital factors contributing to both success and failure. Companies that can quickly adapt to market demands and leverage emerging technologies have a better chance of thriving (Reeves, 2016). Effective communication models, such as clear internal and external communication channels, promote collaboration, alignment, and a shared vision among employees, leading to better decision-making and overall success.

Conclusion

The stories of Blockbuster and Tesla demonstrate the significance of various factors in shaping the fate of companies. Managerial competence, market demand, hard work, and adaptability emerge as key drivers of success. Blockbuster’s failure serves as a cautionary tale, highlighting the importance of recognizing and embracing changes in consumer behavior. Meanwhile, Tesla’s success showcases the power of visionary leadership and capitalizing on emerging market trends. By embracing flexibility, innovation, and effective communication models, companies can navigate challenges, seize opportunities, and thrive in a dynamic business landscape.

References

Energy, E. C. (2023, June 13). Evaluating Tesla’s Long-Term Financial Stability vs Alternatives. Evcharging Energy5. https://energy5.com/evaluating-teslas-long-term-financial-stability-vs-alternatives 

McKinnon, T. (2023). 8 Reasons Why Blockbuster Failed & Filed for Bankruptcy. Indigo9 Digital Inc. https://www.indigo9digital.com/blog/blockbusterfailure 

Reeves, M. (2016, May 27). Adaptability: The New Competitive Advantage. Harvard Business Review. https://hbr.org/2011/07/adaptability-the-new-competitive-advantage