Chapter 10.6, Problem 1CC

Summary Introduction

Case summary:

Company IA has had tremendous success. But, it is facing significant challenges going forward. The powerful competitors of Company IA have taken note of their success. Besides the external issues, the firm is also facing significant internal challenges.

The advent of new leadership is pushing the firm into the online sales of their products. It failed to realize that the internet is a big disruptor for retail business. It is facing major limitations due to its complex ownership structure.

To explain: If company IA had similar difficulties during the leadership transition in 2013.

Explanation of Solution

The revenue of Company IA fell in the year 2014. This can be mainly attributed due to the changes in the leadership department. But, at the end of the year 2016, the sales have recovered well and the revenue streams are looking strong. But, moving forward the company needs new ideas and strategies if they are to expand their growth.

It is difficult to separate the impact of the growth challenges from the challenges faced by the change in leadership. Person KD had three sons who were all involved in controlling the organizational activities of Company IA. But, they are not on the management team of Company IA.

The new CEO appointed to the firm was not any of the sons but the assistant to the founder of the firm. This will help the firm to be more professional in moving forward towards the new strategies.