MGNT910 Strategic Management Case Study Sample

MGNT910 Strategic Management Case Study

Report-Case study analysis report (group assessment)

Group report: 2500 words (10% +/-) excluding tables, figures, references, AI declaration and appendices.

Case Study Scenario:

- Scenario 1: A multi-national company is operating in a country that is currently experiencing international backlash. The international community has highly advised against foreign nationals remaining in this country. Although this company operates in several other countries, a significant percentage of profits are from this country. Your team has been called by the board of directors of the company to assess the situation and explore strategic options for the company.

- Scenario 2: This is a large multi-national company that prides itself on giving back to the community and social responsibility. However, recently, the CEO and the top management team (TMT) has been implicated in a scandal, which may tarnish the reputation of the company, and currently trending on all forms of media. You have been called by the board of directors of the company to assess the situation and determine a strategic direction for the company.

- You are expected to research and select an existing (public) international company with a somewhat recent (within the last 3-5 years) crisis that fits into the allocated scenario and share this with the coordinator for approval in Week 6, in class. You are expected to research and comment on the company;s current competitive position, future competitiveness, and potential strategies to address the crises with justification.

o Debate on two or three strategic directions for the company and conclude with the most appropriate direction.

o Appendix: notes from group discussion. See the subject outline.

- Refer to the below key areas in your discussion:

o Strategic management in crises situations.

o Ethical and strategic responsible business.

o The role of a CEO during crises or scandal.

Solution

Role of CEO During Crisis or Scandal

During the scandal, the CEO of Ticketmaster Michael Rapino was responsible for restoring the trust of the stakeholders. Thus, he was required to perform various roles.

The preliminary role of the CEO was to assess the situation and quickly respond to it. Michael Rapino officially reported that the server crashed due to a high number of ticket requests at the same time. Moreover, he said that they sold 2 million tickets in one day which was the highest in their history (Folmar, 2022). Although this response was strongly criticized by people who highlighted antitrust issues, an immediate response was necessary to address the concerns. Maintaining transparent internal and external communication is highly necessary for a CEO to address any misinformation (Frandsen et al., 2023). Moreover, by addressing customer's concerns directly, reassurance can be provided to manage relationships with the stakeholders. Root-cause analysis also needs to be evaluated by the CEO to make quick and efficient decisions along with implementing corrective actions.

Strong scrutiny for MBA assignment expert was faced by Ticketmaster due to increasing allegations of anti-competitive measures (Da Silva, 2022). Moreover, as the scandal became a controversial topic over the internet where many swifties were criticizing Ticketmaster, the CEO was required to assemble a crisis management team including PR, operation experts and a legal team. Rapino was needed to navigate the regulatory scrutiny and legal challenges effectively by managing the investigations prompted by various state attorneys general and the US department of Justice (Da Silva, 2022). Thus, the main responsibility of the CEO was to guide as well as take help from the crisis management team regarding documentation. This is necessary to answer queries along with cooperating with the regulatory bodies significantly. Moreover, the CEO needs to understand that the scandal raises broader concerns about the working practices within the organization. Thus, continuous monitoring was needed by the CEO to evaluate the legal strategy of the company so that the company's willingness to address the raised concerns could be shown. Moreover, Rapino must have reinforced the commitment of the company to its ethical standards and core values. Apart from that, employees also needed to be offered support as the scandal may have impacted their productivity and morale (Frandsen et al., 2023). The CEO is also required to focus on making long-term recovery and reputation management strategies. Strategies and policies of the company need to be adjusted to increase its resilience to avoid such crises in the future. Apart from that, Rapino needs to ensure continuous monitoring is implemented in the future to handle high demand on its site. Along with handling scandals in the external environment, specific measures need to be taken to improve systems. Rapino acknowledged the need and considered improving the infrastructure of Ticketmaster to handle events which have high demand (Folmar, 2022). In this regard, the CEO needs to ensure the upgradation of the server, increase availability and price transparency, software enhancement to prevent bots, and many more. Moreover, Rapino was required to collaborate with stakeholders such as industry partners and artists to restore their trust. This is significant to address their concerns and implement necessary solutions. As Taylor Swift expressed dissatisfaction openly on social media, Rapino was required to interact with her or the team personally to rebuild the relationship. Moreover, long-term reforms needed to be focussed by the CEO to avoid such scandals in the future.

Reference List

Da Silva, C. (2022). Ticketmaster faces mounting scrutiny after Taylor Swift ticket chaos. [online] NBC News. Available at: https://www.nbcnews.com/news/us-news/tennessee-ag-investigating-ticketmaster-taylor-swift-ticket-chaos-rcna57629.

Folmar, C. (2022). Live Nation CEO, largest shareholder defend company after Taylor Swift ticket chaos. [online] The Hill. Available at: https://thehill.com/policy/technology/3741055-live-nation-ceo-largest-shareholder-defend-company-after-taylor-swift-ticket-chaos/#:~:text=Live%20Nation%20chief%20Michael%20Rapino%20corroborated%20Maffei%E2%80%99s%20claims%2C [Accessed 9 Jul. 2024].

Frandsen, S., Svane, M. and Maria Humle, D., (2023). Who is responsible—And for what? An antenarrative perspective on organizational members’ crisis sensemaking of responsibility during a corporate scandal. human relations, p.00187267231205781. https://journals.sagepub.com/doi/pdf/10.1177/00187267231205781