CanGo Company

A comprehensive assessment was conducted for the CanGo Company, and the objective was to unearth the causation factors for their operational issues. In the initial phase of the evaluation, it was quite evident that the root cause of their difficulties was a direct consequence of the Chief Executive Officer (CEO) whose ambition for the company was distorted. Consequently, their mission and vision was not clearly defined, which shaped a company’s culture of organized chaos. This deficiency positioned the CanGo Company in a reactionary environment, instead of navigating a path of continual stability and progression. In the final analysis, it was apparent that the fundamental organizational blueprint of a successful business was displaced. The following 6 performance hiccups were annotated and recommendations have been made, to provide a compass, which will impact successful business growth but require immediate redress.

1. CanGo Company lacks direction.
2. Flawed entrepreneurial leadership and interpersonal communication. 3. Decisions are made without first rationalizing and justifying the expenses. 4. Marketing and Research is non-existent.

5. Company assets and resources are mishandled creating a high risk factor. 6. The company culture and under laying HR issues need to be addressed.

Recommendations to correct deficiencies
1. CanGo Company lacks direction. The Chief Executive Officer; Elizabeth, was asked to prepare an acceptance speech as a result of being selected business leader of the year. This honor is symbolic of distinguishing a lucrative business. The acknowledgment of the invitation was associated with the obligation of discussing the success of building, and structuring her successful company; CanGo. Elizabeth’s response to satisfying the request was uncertainty, because she realized that she did not cultivate that initial and essential element of a business model; drafting a Mission, Vision, and Value statement. This assumption was quite obvious when she attributed the company’s success to luck, instead of strategic planning.

According to Hawthorne (n.d.) from Small Business Chronicles, strategic planning is articulated through the mission and vision statements which can sometimes demand change. This declaration was augmented by clarifying the specifics of the assertion. A vision statement communicates the company’s goal at the highest level, and a mission statement clarifies measurable objectives. The values statement is the locally accepted principles that are responsible for materializing the company’s culture and beliefs alleged Norman (n.d.) from Small Business Chronicles. Although this requirement is not unblemished, it provides the business owner with a point of reference to determine if the plan supports the goal of the company.

When employees are convinced that they are instrumental in fashioning the company’s goals, they are more likely to remain motivated; resulting in higher levels of productivity affirmed Hawthorne (n.d.). Based on this information provided, it is then reasonable to assume that there is an eminent collision looming between leadership and staff because there are no clearly defined goals and objectives, which can potentially annihilate a successful company. One of the primary reasons that some businesses fail is due to the fact they experience unexpected growth similar as CanGo, and because there was no contingency plan or preparation for the expansion, the company falters in maintaining that success asserted Longley (2013) from Small Business Administration. This observation also collaborates with the discoveries during the evaluation of the company. Elizabeth was ignoring the concerns of her staff, while they attempted to find solutions to an improperly planned project, and unpleasant job relational issues.

The first recommendation for Elizabeth to correct this deficiency is to draft a business plan; it’s not too late to make this decision. This will allow her to clearly define the company’s goals, objectives, and a strategy to accomplish it, by composting the Vision, Mission, and Values statement. A Business plan will also influence the CEO to clearly outline the intended niche and target market through research; possessing a transparent understanding of the demographics, behaviors, geographic’s, and psychographics (lifestyle) argued Parmele (2013) from business plans.com. Additionally, completing a business plan will allow the company to be more realistic differentiating their products, marketing approach, and determining financial factors involved.

This tactic will also prevent the CEO from entering a new market without investigation; more specifically integrating an online gaming system. The subsequent counsel for CanGo is to initiate a SWOT (strengths, weaknesses, opportunities, and threats) analysis. This action is necessary because the establishment possess no tangible operational history; due to the fact that the CEO admitted that success was the result of luck. This tactic will be a building block that will provide insight on the company’s capabilities, and also prevent decisions from entering a market that can possibly decline according to Goltz (2013) from New York Times.

The closing recommendation for this segment is to transform the CEO’s way of thinking, to help her realize that if she doesn’t know something that it is acceptable to tap into the capabilities of the staff, stated Jensen (2013) from Forbes.com. Also, it is necessary to research and plan any new venture in addition to ensuring that employees are engaged in the process. This plan provides insight to the staff and a clear understanding of what is expected professed Beesley (2013) from All Business.Com. When involving all levels of management, cohesion within the team can develop in the assigned teams initiating awareness. When they are included in the company’s ideals and goals, they have a greater sense of responsibility and loyalty.

2. Flawed entrepreneurial leadership and the lack of effective communication. Elizabeth is the presumed proprietor of the CanGo Company who is confident of the direction she wants the company to navigate; with urgency, integrate a stable online gaming system, and preparing for a potentially high-volume of anticipated holiday sales. The problem with her lofty aspirations is that she has not sensibly planned a stratagem to achieve her vision. The first indication of her flawed leadership is evident when Andrew, one of her employees approached her about impending glitches with the online gaming project which theoretically can initiate liability to the company. He expressed concern about not being able to protect themselves or their interests. Elizabeth retorted “this is my company” instead of investigating his concerns and providing a solution to the problem. Her response was definitely a transparent display of faulty leadership. This type of behavior is also typical of a Boss with poor leadership ability; it’s all about them and they are ineffective in their communication stated Myatt (2013) from Forbes.com.

According to Ferrell (2011) from career builder.com, some of the characteristics of good leadership are: a) self-awareness– being capable of identifying personal weakness in any situation, yet being confident enough to articulate and extract the needed strengths or expertise from team members b) poised enough to transition from individual to supervisory position, which is based on having a comprehensive understanding of the structure of the business model c) a final but not conclusive trait of a good leader, is one that is supportive, ultimately contributing to an environment that is conducive to complete a project. Elizabeth failed miserably when she did not even pause to listen to the concerns of Andrew, but rather was more interested in reminding him that she is still CEO of the company.

An appropriate response from Elizabeth would’ve been to listen to Andrew’s concerns and formulate an action plan to counteract any possible legal annoyances. A knowledgeable leader should have discerned a sense of urgency when Andrew mentioned that he possessed no control of themselves or their interests. Andrew’s commentary has dissimilar implications; the possibility that their intellectual property was not properly protected. Also, there is the consideration that there is probably insufficient bandwidth and security to accommodate and protect the users and originators of the program, ultimately increasing their legal accountability. Additionally, it could have been a situation where there was no patent or nondisclosure statements to protect the gaming system. All the guesswork could’ve been extracted from this scenario if Elizabeth had listened to Andrew instead of reacting with arrogance; her behavior possibly a mere indication of her mindset that the boss is all knowing due to her in effectual communication Ferrell (2011).

The mere fact that an employee expressed concerns about security should have initiated immediate intervention from the CEO to investigate the matter. Cortez (2012) from Business Insider published an editorial that provided awareness of how effortlessly a hacker can breach a business Internet security system ascribed as Social Engineering (Internet hacker pretending to be a customer who uses human resources to gain information about the company). This is especially true when there is a lack of cohesiveness in human resources. Cortez advised that one method to offset this possibility is to partner with a company that can provide security protection and training. To bridge the communication gap and provide better leadership, the company is instructed to implement continual leadership and project management training. Jensen (2012) from Forbes.com stated that some leadership abilities are innate, while others have to be enhanced. This decision will ensure a better working relationship between the CEO and the staff.

3. Decisions are made without first rationalizing and justifying the expenses. During the initial management meeting regarding the pitch of the idea to start the online gaming site, the team briefly discussed different concerns and questions about the undertaking. The next mention of the online gaming gave the project approximately 5 weeks. There was no risk analysis, cost- benefit, or future projections done. The online gaming site is not the only place we saw rash decisions made. When discussing the potential holiday increase in sales, decisions to hire and purchase new equipment were finalized without analysis.

According To Harvard Review (2013), when a company incorporates logic and evidence in their business decisions, the reward is generally profitable. It is not often a business will experience a growth in demand of 500%, and it doesn’t seem that CanGo has the resources immediately available to implement a smooth transition so that demand can be met. This sort of increase really takes a business to the next level of success and they must make provisions to accomplish it. Clark and Ethel are valuable resources that can provide the research and analysis needed to rationalize and justify different options and their costs. CanGo managers should utilize these talents in their employees.

4. Market Research is non-existent. Warren charged Nick to safeguard against overestimating customers response to the product by procuring certain key elements for the project such as bandwidth, definitive software, and related hardware. His response can be translated as ambiguous, because it can be an indication that the requirements for integrating the online gaming are not properly research; therefore, it inadvertently handicaps the company from launching their online gaming venture. To augment this suspicion, a feasibility analysis and knowledge about the demographics would’ve provided foreknowledge on customer’s willingness to purchase the game and system, so this was a valid reason to consider that there was a possibility that the undertaking lacked the proper research.

According to Bellis (n.d.), proper marketing research identifies potential problems in the current market, and also profitable business opportunities. On a different end of the spectrum, Nick was assigned to do the research, but no one in leadership was astute enough to realize that he was not equipped with the appropriate technique to complete the assignment. The team should have conducted a brainstorming session regarding all the different options to consider before going further with the idea. It would be beneficial for the team to follow the strategic management process in order to set the launch of a successful online gaming system.

5. Company assets and resources are mishandled creating a high risk factor. CanGo’s lack of research and analysis causes many issues, and is an attributing factor in the resources that are purely wasted. Projects are not assigned to the employee’s that are qualified, as with the online gaming project. Wendy was hired by CanGo with the intentions of creating an online gaming site; instead Nick was assigned this project. Yagar (2011) attributed poor business decisions to a lack of understanding the requirements of attaining the objectives, which can be very costly to the company. A clear indication that Nick was not the right choice is evident when Gail confronted him about having deliverables and children’s book related material in the same folder. This can be perceived as Nick not prioritizing his responsibilities or has not fully comprehended the full scope and seriousness of the assignment that he was given, otherwise described as a company misfit Yagar (2011).

On a different occasion, Debbie asked Nick if he needed help; he finally admitted that he did, but was clueless when she asked him if he knew the purpose of the Gantt chart. In this instance, there should have been no reason why at this point of the project, Nick was uncertain about his responsibilities or possess the required skills. Usually, when a project is accepted, the first portion of planning a project is to determine the scope of the job. The second phase of planning the project is to conclusively establish who the team members are while deciphering their qualifications and ability to work as a cohesive team to complete the project with precision stated Larson (2007). If this portion of the planning phase is not completed, it will be clearly understandable as to why a poorly equipped team member is assigned a very critical and labor-intensive fraction of the project that requires meticulousness.

Although Debbie offered to provide him with assistance, it was clear that a lot of man-hours were wasted functioning minimally. Reviewing CanGo’s issues collectively, this is an area that must be monitored more efficiently. In addition to the wasted man hours, a budget is never discussed. It is irresponsible for a company to spend money callously declared Yagar (2011). Allocated budgets must be designated to projects prior to commencement. CanGo must become more organized in order to control the risk associated with each project. Money, talent, and assets are haphazardly apportioned without a clear goal in mind. To move forward into the future CanGo’s leaders must begin to look at the talent in their employees, perform budget analysis, and risk analysis to achieve maximum results.

6. Company culture is nonexistent and underlying HR (human resource) issues need to be addressed. Elizabeth perhaps believes that everyone is in unison with the direction the company is navigating towards because the company has been successful. In contrast, there are several instances that are indicators of impending trouble for the company’s culture. The first signs of discord can be seen in a conversation between Ethel and Clark; following the meeting that discussed the company plans to integrate an online gaming system. Both employees showed concern for the lack of actual research and analysis; contemplating feasibility. When a project scope is prepared, it defines and validates the project providing a basic budget estimate, time, and money according to Rey (n.d.). Consequently, the project planning commences providing a more detailed quote for the overall costs.

The discussion between Ethel and Clark was valid and reflects the disparity of the assumed company’s culture, ultimately painting a picture of a boss that is disconnected from the direction and necessities to operate her company. This can be accomplished through training, setting an example, providing guidance, and when deemed necessary, an incentive declared Carabelli (n.d.) from Small Business Chronicles. Employees lose faith in their company and their leaders under these circumstances, and the establishment can lose valuable talent. These concerns will be addressed if CanGo slows down on the launch of the gaming site as we recommend, and properly plan the project. Leadership and staff interaction can greatly improve by allowing open communication alleged Miksen (2013) from small business Chronicles.

In concluding the appraisal of CanGo, the company has great potential, and can continue to do well in the future if they revert back to the basic building block of any company structure; a business plan. Cementing this process is to also incorporate mandatory leadership and project management training. Lastly, the company is urged to employ legal assistance to provide guidelines in avoiding liability, and an accountant to appropriately manage the company’s finances and local internal control.

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