Explain The Leadership Crisis At Groupon
In this question I will explain the leadership crisis at Groupon. Then I will examine whether the new CEO would be able to meet the challenges of leading the organization. Finally, I will briefly assess the leadership management and its impacts on the operations of organization.
Groupon faced many managerial problems and challenges. It reported a sudden transition from rapid growth to net loss. In 2010, it reported to $ 1 billion revenues in the shortest period (Bhatnagar & Thadamalla 2013). However, in the following year (2011), it had reported net loss of $ 65.4 million, followed by wider net loss of $ 81.1 million for the fourth quarter of 2012. In the following figure I summarized the main events that Groupon faced per year (Bhatnagar …show more content…
Eric Lefkofsky the owner of Groupon believed on Mason's idea and invests it. We can say that Mason was from the younger CEO in the word. He looked more like a school boy with untucked sartorial style (Bhatnagar & Thadamalla 2013). Mason has no experience in such work. He doesn't have background in dealing and monitoring company. “Groupon is a very large, very complex, multi-faceted global business (Bhatnagar & Thadamalla 2013, 11). Most research show proportional relation between the leader's experience and organizational growth (Shamir et al. 1998). In my opinion, I agree with Kennedy when he said "Experience is like taillights on a boat which illuminate where we have been when we should be focusing on where we should be going" (Thomas 2011). Therefore, lacking of experience makes Mason unable to take the right decision in this …show more content…
Company need to assess its internal system and operations. This will provides it with accurate information for decision makers to determine capacities that need to maintained, strengthened or changed to achieve its vision (Clerkin & Ruderman 2016). Groupon lace from good leadership and this affects its operation which leads to a need for new CEO. Therefore, in my opinion the Groupon management leadership should asses the company in for main areas; leadership capacity, adaptive capacity, management capacity, and operational capacity (see figure ). From this it can decide if it goes with the same vision or it should adjusted in a way matched its internal
Groupon faced many managerial problems and challenges. It reported a sudden transition from rapid growth to net loss. In 2010, it reported to $ 1 billion revenues in the shortest period (Bhatnagar & Thadamalla 2013). However, in the following year (2011), it had reported net loss of $ 65.4 million, followed by wider net loss of $ 81.1 million for the fourth quarter of 2012. In the following figure I summarized the main events that Groupon faced per year (Bhatnagar …show more content…
Eric Lefkofsky the owner of Groupon believed on Mason's idea and invests it. We can say that Mason was from the younger CEO in the word. He looked more like a school boy with untucked sartorial style (Bhatnagar & Thadamalla 2013). Mason has no experience in such work. He doesn't have background in dealing and monitoring company. “Groupon is a very large, very complex, multi-faceted global business (Bhatnagar & Thadamalla 2013, 11). Most research show proportional relation between the leader's experience and organizational growth (Shamir et al. 1998). In my opinion, I agree with Kennedy when he said "Experience is like taillights on a boat which illuminate where we have been when we should be focusing on where we should be going" (Thomas 2011). Therefore, lacking of experience makes Mason unable to take the right decision in this …show more content…
Company need to assess its internal system and operations. This will provides it with accurate information for decision makers to determine capacities that need to maintained, strengthened or changed to achieve its vision (Clerkin & Ruderman 2016). Groupon lace from good leadership and this affects its operation which leads to a need for new CEO. Therefore, in my opinion the Groupon management leadership should asses the company in for main areas; leadership capacity, adaptive capacity, management capacity, and operational capacity (see figure ). From this it can decide if it goes with the same vision or it should adjusted in a way matched its internal