To determine:
Whether the natural imbalances can motivate the firms that are bitter rivals, to keep aside their competitive spirits and focus on cooperation and courtesy.
Introduction:
Times of crisis through natural imbalances in the world, which is inevitable such as the September 11, 2001 terrorist attack on the World Trade Center or the devastation from Hurricane Sandy in 2012 can instigate firms to let go of the competitive bitterness between each other and focus on picking up the scraps of the firms left after these attacks, and build up the corporate sector together again from scratch.
Answer to Problem 1DQ
The motivated behavior will not continue in the long run, as it is not the nature of business organizations because having a competitive advantage and earning profits is the way of survival of the organization.
Explanation of Solution
Given information:
Times of shared crisis between organizations in occurrence to natural imbalances in the world will tend to motivate and inspire firms to pick up the pieces left from the disasters together and get back on their feet from helping each other. The discussion is about whether this behavior would continue in the long run.
The natural behavior of profit motivated firms is being competitive and having a rivalry into being the best company in the industry. However, these indifferences would be put away once something occurs which is out of control of the firm such as a natural disaster or terrorist attack.
Firms would then look back at their destroyed businesses and buildings and everything they've built so far and stress on constructing the business from scratch to the top again. This would then create a symphony amongst all the firms which were affected and cause a realization amongst them that the only way to come back up is to help each other and build this sector together because all the resources and intellect would be required to erect this plan.
However after a period of time, once firms are back on their feet and does not require the need to lean against one another, they would then go back to the normal nature of firms on competitiveness and profit maximizing. This nature can then slowly tear away the harmonized motivation amongst the firms.
However, the bond created out of traumatizing experiencecan last for a long time, and competitiveness can be considered friendlier than cut-throat rivalry. This can be cherished by the organizations that faced the disaster together.
Want to see more full solutions like this?
Chapter 8 Solutions
Understanding Management
- The boards of 2 major telecommunications companies recently agreed to a $16 billion merger that would create the world's largest telecommunications company in the world. Although some agree that the synergy between these companies could be dynamic, others feel consumers could ultimately pay the price for the merger, depending on which company becomes dominant in the various service areas. Answer the following questions: Why do you think consumer advocates have expressed concern over such merger possibilities?arrow_forwardRecent corporate governance reforms in various countries urge (and often require) firms to add more outside directors to their boards and separate the jobs of board chairman and CEO. Yet, academic research has not been able to conclusively support the merits of both practices. Why?arrow_forwardAs an owner of a business/company, how are you going to build trust and goodwill to your suppliers?arrow_forward
- You are a group of top managers of one of the Big Three car makers in Pakistan. Your company has been experiencing increased competition from other car makers like Toyota and Honda whose innovations in car design and manufacturing methods have allowed them to produce cars that are higher in quality and lower in cost than yours. You have been charged with preparing a plan to change the company’s structure to allow you to compete better, and you have decided on two main changes. First, you plan to reengineer the company and move from a multidivisional structure (in which each division produces its own range of cars) to one in which cross-functional product teams become responsible for developing new car models that will be sold by all the divisions. Second, you have decided to implement a total quality management program to raise quality and decentralize decision making authority to the teams and make them responsible for achieving higher quality and lower costs. Thus, the changes will…arrow_forwardPlease read the case and answer the questions at the end. Please respond to two of your peers. Do you agree or disagree? Joe's Hamburger Grill has been doing business in the same location for the past 20 years. The Grill is located in Phoenix, Arizona, and caters to college students by providing some of the world's biggest hamburgers in a fun and casual dining atmosphere. Joe looks back with fondness on the 20 years that have passed since he first opened the grill. His primary motivation for starting the business was the opportunity to work for himself. When he graduated from college, Joe took a job as an accountant and worked for a number of different companies. When he turned 40, Joe decided he was tired of working for a boss, so he began looking for an alternative opportunity. Knowing his love for cooking and his flair for providing great customer service, Joe's wife and friends encouraged him to open the hamburger stand. After taking some time to decide what he wanted to do, Joe…arrow_forwardXYZ Ltd is in the process of acquiring ABC Ltd after ABC Ltd declared that it was unable to continue operations in the current market scenario. All the employees of ABC Ltd. Are apprehensive of losing their jobs. You have been appointed by XYZ Ltd to make the transition for the retained employees smoother. Describe how you would go about the process. How would you deal with employees who are resistant to change?arrow_forward
- Your new company must plan for adaptability and alignment both internally and externally due to a crisis and other unexpected events, such as a mortgage crisis, a fire, IT system failure, loss of a major customer, loss of suppliers, union strikes, or terrorist attacks. How do you identify a crisis that Kibbles and Bits may experience, and explain how Kibbles and Bits would adapt and align in this crisis?arrow_forwardThe devastating impact of COVID-19 has forced companies to make the tough decision to either shut down their operations or pivot to a new business strategy. Given the current situation, what other ways companies can operate?arrow_forwardDuring the COVID 19 pandemic organizations experienced many changes where they fast forwarded into activities that previously seemed impossible. Technology played a major role in the response to this shift. In 2023, it is said that 50% of companies want workers back in office full time. As the CEO in your organization you have workers return on a hybrid arrangement. Justify why workers should return on a hybrid arrangement by giving (2) pros and (2) cons. As the Legal Representative explain the hybrid arrangement by taking into consideration the following below. Leadership and MotivationWorkplace CommunicationConflict ManagementTeamworkarrow_forward
- The fact that Sunny Delight, a very small company, has acquired so many different types of analytics tools probably comes as a surprise to you. What effects may the several ownership transitions at Sunny Delight have had on the company's use of business intelligence (BI) tools?- What are the costs and benefits of switching to an enterprise-level analytics system, especially for end users who have become used to dealing with their own customized solutions for producing data?arrow_forward1. What are the most important forces in the macroenvironment facing companies today? 2. What are the main differences between the macroenvironment and the competitive environment? 3. What kinds of changes do companies make in response to environmental uncertainty? 4. We outlined several proactive responses organization can make to the environment. What examples have you seen recently of an organization responding effectively to its environment? Did the effectiveness of the response depend upon whether the organization was facing a threat or an opportunity?arrow_forwardAfter the analysis of your company Toyota Motor Corporation , please write the following sections in report form: Management Roles : Entrepreneur. Disturbance Handler. Negotiator.arrow_forward
- Understanding BusinessManagementISBN:9781259929434Author:William NickelsPublisher:McGraw-Hill EducationManagement (14th Edition)ManagementISBN:9780134527604Author:Stephen P. Robbins, Mary A. CoulterPublisher:PEARSONSpreadsheet Modeling & Decision Analysis: A Pract...ManagementISBN:9781305947412Author:Cliff RagsdalePublisher:Cengage Learning
- Management Information Systems: Managing The Digi...ManagementISBN:9780135191798Author:Kenneth C. Laudon, Jane P. LaudonPublisher:PEARSONBusiness Essentials (12th Edition) (What's New in...ManagementISBN:9780134728391Author:Ronald J. Ebert, Ricky W. GriffinPublisher:PEARSONFundamentals of Management (10th Edition)ManagementISBN:9780134237473Author:Stephen P. Robbins, Mary A. Coulter, David A. De CenzoPublisher:PEARSON