Profitel Inc
PROFITEL INC.
MBA 530-D2B0 Organizational Behavior
Week 06
Instructor Kevin G. Bell, PhD
December 05, 2010
Abstract
Profitel Inc. a publicly traded enterprise in telecommunications, known for monopolizing the industry in telephone copper wiring. For decades Profitel Inc. had very little competition; however the competition has increased in cellular (mobile) telephone business and other technologies such as voice-over-internet. (McShane & Von Gilnow, 2010, p. 379) Since the company’s dominance was threatened by emerging technology, the Board of Directors decided to hire Lars Peeters as the new CEO of Profitel Inc. Mr. Peeters was well known in the business industry for his extensive telecommunication knowledge and global expertise. (McShane & Von Gilnow, 2010, p. 380) Under his leadership the company’s strategy was to bolster profit margin, this included investing in the latest wireless broadband technology and reduction of costs through layoffs. The company’s vision quickly diminished over a two year period, there were very aggressive tactics used by Peeters which caused customer satisfaction ratings to fall and unintended consequences for criticizing the government’s telecommunication regulations. (McShane & Von Gilnow, 2010, p. 380)
This paper discusses leadership perspective around Profitel’s problems and how the organization could have minimized the problems
Perspective of Leadership
In the case study of Profit Inc., I believe Competency Perspective Leadership best explains the problems that were experienced in this case. Competency Perspective Leadership implies that certain characteristics define the leader. These leaders have specific personality characteristics, positive self-concept, drive, integrity, leadership motivation, knowledge of the business, cognitive and practical intelligence and emotional intelligence. (McShane & Von Gilnow, 2010, p. 363) The Board of Directors hired Lars Peeters in the position of CEO; there were
MBA 530-D2B0 Organizational Behavior
Week 06
Instructor Kevin G. Bell, PhD
December 05, 2010
Abstract
Profitel Inc. a publicly traded enterprise in telecommunications, known for monopolizing the industry in telephone copper wiring. For decades Profitel Inc. had very little competition; however the competition has increased in cellular (mobile) telephone business and other technologies such as voice-over-internet. (McShane & Von Gilnow, 2010, p. 379) Since the company’s dominance was threatened by emerging technology, the Board of Directors decided to hire Lars Peeters as the new CEO of Profitel Inc. Mr. Peeters was well known in the business industry for his extensive telecommunication knowledge and global expertise. (McShane & Von Gilnow, 2010, p. 380) Under his leadership the company’s strategy was to bolster profit margin, this included investing in the latest wireless broadband technology and reduction of costs through layoffs. The company’s vision quickly diminished over a two year period, there were very aggressive tactics used by Peeters which caused customer satisfaction ratings to fall and unintended consequences for criticizing the government’s telecommunication regulations. (McShane & Von Gilnow, 2010, p. 380)
This paper discusses leadership perspective around Profitel’s problems and how the organization could have minimized the problems
Perspective of Leadership
In the case study of Profit Inc., I believe Competency Perspective Leadership best explains the problems that were experienced in this case. Competency Perspective Leadership implies that certain characteristics define the leader. These leaders have specific personality characteristics, positive self-concept, drive, integrity, leadership motivation, knowledge of the business, cognitive and practical intelligence and emotional intelligence. (McShane & Von Gilnow, 2010, p. 363) The Board of Directors hired Lars Peeters in the position of CEO; there were
References: McShane, Steven., & Von Gilnow, MaryAnn. (2010). Organizational Behavior (5th ed.). McGraw Hill-Irwin.