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Profitel Inc Essays

Decent Essays

PROFITEL INC.

MBA 530-D2B0 Organizational Behavior
Week 06
Instructor Kevin G. Bell, PhD
December 05, 2010

Abstract
Profitel Inc. a publicly traded enterprise in telecommunications, known for monopolizing the industry in telephone copper wiring. For decades Profitel Inc. had very little competition; however the competition has increased in cellular (mobile) telephone business and other technologies such as voice-over-internet. (McShane & Von Gilnow, 2010, p. 379) Since the company’s dominance was threatened by emerging technology, the Board of Directors decided to hire Lars Peeters as the new CEO of Profitel Inc. Mr. Peeters was well known in the business industry for his extensive telecommunication knowledge and global …show more content…

(McShane & Von Gilnow, 2010, p. 380) Lars Peeters demonstrated the leadership competencies; he had extensive industry knowledge and global experience (knowledge of business), a high octane energy level (personality characteristics), self-confidence (self-concept), and a congenial yet strongly persuasive interpersonal style (leadership motivation). (McShane & Von Gilnow, 2010, p. 380) Peeters lived up to his reputation as a decisive executive (practical intelligence), he also had a unique “presence” which caused people to pay attention and respect his leadership (emotional intelligence). (McShane & Von Gilnow, 2010, p. 380) Under the leadership of Lars Peeters, Profitel Inc. experienced a decline in share prices by 20% and a decline in employee morale due to layoffs. The company lost the bid on a billion dollar government contract, most likely because of Peeter’s aggressive approach with the government around regulations. He also upgraded the company’s broadband network with a high price technology and he did not evaluate an alternative solution. The strategic plan Peeter’s implemented did not achieve the stated profit margins due to limited corporate investments; he relied on an assumption that Profitel Inc. would acquire the government contract and when that did not happen Peeter should have had a contingency plan. There is no one size fits all approach, Peeters did not adapt to the surroundings of the new company; he used the same strategy from his

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