How Four Rookie CEOs Handled the Great Recession? Use the chapter material to decide what different kinds of management challenges these four CEOs faced as they took control of managing their different companies. One of the challenges that they faced was the recession. The CEOs had to demonstrate their best conceptual skills because starting during a recession means they had to make drastic changes before the company went under. The new CEOs had to restructure the company to lower operating cost. Another challenge was managing a diverse workforce.
How do you train a workforce that spoke different languages and have different work practices and worked overseas?
In what kinds of ways did these managers respond to these challenges- for example, in their approaches to planning, leading, organizing and controlling? Donahoe had a strategy to change the customer’s website and introducing BillMeLater. He led the employees and investors to this vision which paid off. The stocks began to rise again. Mr. Kenney of T Rowe Price made a plan to reduce costs.
He took charge and cut back on hiring, advertising and IT. Diane took the recession by the hand and used it to her advantage. Her company had an edge over the leading competitors which at the time would struggle. She revamped the company website and pushed the products overseas.
Search the web. How are these managers and their companies currently performing? EBay’s John Donahoe was interviewed by James Stewart of NY Times saying “ Our multiyear effort is paying off,” he said. Profit more than doubled and revenue jumped 23 percent. EBay is revitalized. We believe the best is yet to come. ” In a stock market struggling with recession fears and the European debt crisis, eBay stock this week hit a six-year high. ” He says that the introduction of the EBay mobile app and the purchase of PayPal has been a great innovation. T. Rowe Price’s James Kennedy said in his recentinterviewfor the Baltimore Business Journal, that T. Rowe’s earnings were up in the second quarter. “ Investors are concerned about the Greece crisis because it will affect the rest of Europe.
Here in the U. S. , he said investors are being rattled by a number of factors — unemployment, a sluggish housing market and uncertainty over whether the Affordable Care Act will drivehealthcare costs higher, and by how much. ” Diane Irvine of Blue Nile has resigned. Blue Nile didn’t give a reason why. Peter Swinburn of Molson Brewing Co. , recently made a $3. 54 billion dollar deal for the Eastern European beer brewer Starbev. The deal is expected to add to its earnings quickly, starting in the first full year of joint operations.
Molson is banking on that growth, with the company paying for the transaction almost entirely through debt. Under the terms of the acquisition, Molson will pay $3 billion in cash and debt and an additional $667 million in convertible debt that will be paid to CVC.
- De La Merced , M. (2012, April 03). In starbev deal, molson bets big on growth . The New York Times. Retrieved from http://dealbook. nytimes. com/2012/04/03/in-starbev-deal-molson-bets-big-on-growth/
- Haber, G. (2012). T. owe price ceo on the global economy, baltimore grand prix . Retrieved from http://www. bizjournals. com/baltimore/news/2012/07/25/t-rowe-price-ceo-on-the-global. html? page= all Martinez, A. (2012, NOV 08).
- Blue nile ceo resigns abruptly; 3q profit falls . . Retrieved from http://seattletimes. com/html/businesstechnology/2016718784_bluenile 09. html Stewart, J. (2012, July 27). Nytimes. com. Retrieved from http://www. nytimes. com/2012/07/28/business/ebays-turnaround-defies-convention-for-internet-companies. html? pagewanted= all