Introduction
Effective management is crucial for the success of business organizations. Strategic management entails various stages such as goal setting, analysis, and the formulation of strategies (Rue et al. 314). Successful execution of each step requires effective coordination of all resources of the business organization. Poor management contributes significantly to the failure of various projects of an organization or the collapse of the entire organization (Rue et al. 315). This paper will answer several questions to demonstrate how poor management contributes to business failure.
Causes of failure of the wood project
One of the main causes of failure of the project is the fact that Juan, who was in charge of the project, was not familiar with the treatment process; hence, he spent a lot of time familiarizing with the process. Additionally, Juan had no interest in the new task because he wanted to take promotion and marketing roles since he viewed the experimental work tedious and boring. Besides, the direction of the wood project was put under Greg Waites, who was a close friend of Juan, allowing him time to travel freely. As a result, most of the experiments in the wood project were not finished.
Whether a more effective strategy on the part of Juan and Greg would lead to success of the project
Should Juan and Greg adopted a more effective strategies, the project would be successful. The two realized there was a great market demand for wood products and suddenly undertook a crash program to meet the demand and be the first to supply the products in the market. As a result, they hired incompetent workers who only took the tasks to avoid being laid off.
The stage in strategic management where the breakdown occurred
The break -down of the project occurred at the evaluation and control stage of the strategic management. Juan assigned himself the director in the plant. However, he only appeared in the plant before the work started and gave shallow instructions to the operators who were incompetent. As a result, poor quality handles with hairline cracks were produced, resulting in rejection and cancellation of the order.
Description of observations that can help to prevent the occurrence of failure of a business project
Efficient coordination of operations in a business organization is essential to prevent the occurrence of failures (Tellis & Peter n.p). The employees involved in a particular operation should be competent enough to handle various processes. Juan hired employees with little knowledge of the chemical process involved in the processing of wood handles. Additionally, careful evaluation and control of operations should be conducted to prevent the production of inferior quality products. It can be concluded that effective management is essential to the success of business organizations. Therefore, business managers should adopt strategic approaches to management to prevent failure of their businesses.
Works Cited
Rue, Leslie , Lloyd Byars, and Nabil Ibrahim. Management: Skills and Application. 14th ed. New York, NY: McGraw Hill Higher Education, 2012. Print.
Tellis, Gerard and Peter Golder. "First to market, first to fail? Real causes of enduring market leadership." MIT Sloan management review 37.2 (1996): 65-75. Print
