Fast-Forwarding Blockbuster
Subject: Fast-forwarding Blockuster
Case Summary :
Fast-Forwarding Blockbuster
Blockbuster is the the world’s largest video rental company.
The past few years have not been good ones for Blockbuster, because they have posted losses in 9 of the past 11 years, closed many stores and lost many customers to Netflix.
One of the most important changes that Blockbuster did in order to remain competitive was to hire a new CEO, James W. Keyes who faced a similar situation as the former CEO of 7-eleven Stores.
Who after facing bankruptcy in 1990 his company achieved 26 consecutive quarters of revenue growth and a profit of 106 million in 2004 , by relying on numbers by implementing the quantitative approach. Keyes is now using the same method with Blockbuster.
Case Questions:
1. Mr. Keyes obviously is a big fan of the quantitative approach .How might principles of scientific management be useful to Blockbuster?
By using the principles of scientific management Blockbuster can improve production efficiently and thus can increase their ability to satisfy customer need so they will have a competitive advantage and can re-open their stores and have profit instead of lost.
2. How might knowledge of organizational behavior help the company’s frontline store supervisor manage their employees? Would Mr. Keyes and other top managers need to understand OB? Why or Why not?
Organizational behavior is the field of study that researches the actions of the people at work, so by knowing this you know your employees’ behavior and thus you know how you have to deal with each of them so you also know how to manage them better.
Yes they would, because it is very useful to know about your employees and specially their behavior, because the success of a company starts by the people in the company.
4. Based on information from Blockbuster’s website, what values does this company embrace that might be important for successful organizations in the twenty-first century?
Case Summary :
Fast-Forwarding Blockbuster
Blockbuster is the the world’s largest video rental company.
The past few years have not been good ones for Blockbuster, because they have posted losses in 9 of the past 11 years, closed many stores and lost many customers to Netflix.
One of the most important changes that Blockbuster did in order to remain competitive was to hire a new CEO, James W. Keyes who faced a similar situation as the former CEO of 7-eleven Stores.
Who after facing bankruptcy in 1990 his company achieved 26 consecutive quarters of revenue growth and a profit of 106 million in 2004 , by relying on numbers by implementing the quantitative approach. Keyes is now using the same method with Blockbuster.
Case Questions:
1. Mr. Keyes obviously is a big fan of the quantitative approach .How might principles of scientific management be useful to Blockbuster?
By using the principles of scientific management Blockbuster can improve production efficiently and thus can increase their ability to satisfy customer need so they will have a competitive advantage and can re-open their stores and have profit instead of lost.
2. How might knowledge of organizational behavior help the company’s frontline store supervisor manage their employees? Would Mr. Keyes and other top managers need to understand OB? Why or Why not?
Organizational behavior is the field of study that researches the actions of the people at work, so by knowing this you know your employees’ behavior and thus you know how you have to deal with each of them so you also know how to manage them better.
Yes they would, because it is very useful to know about your employees and specially their behavior, because the success of a company starts by the people in the company.
4. Based on information from Blockbuster’s website, what values does this company embrace that might be important for successful organizations in the twenty-first century?