Page 76 - Fundamentals of Management Myths Debunked (2017)_Flat

CHAPTER 2 • The Management Environment 75
suffering, especially in its Canadian division. But when a com- underestimating the hard work that’s ahead of them. But by
pany’s top leader is viewed so negatively, it’s next to impos- staying focused on the bull’s-eye—Target’s “guests” (cus-
sible for needed changes to take place. Those changes would tomers)—they intend to be united in their return to Target’s
have to come from new leadership. “cheap-chic roots.” 48
Target Corp.’s new CEO, Brian Cornell, took over in
August 2014. Since his arrival, there appears to have been a Discussion Questions
significant shift in culture. A company that was once described 2-14 What role does a CEO play in an organization’s culture? What
as very insular and resistant to change is now embracing trans- role do other leaders/managers play?
parency, openness, and change. Cornell has been described as 2-15 Describe Target’s culture under its previous CEO. Describe
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very enthusiastic about customers and Target’s businesses. Target’s culture under its current CEO.
That type of enthusiasm is contagious for not only headquarter 2-16 What are the benefits and challenges of social media in
employees but employees throughout the organization. Other managing organizational culture?
cultural changes are happening in the expectations for Target’s 2-17 Which view of management do you see played out here? The
employees. Innovation is accelerating, decision making is omnipotent or the symbolic? Explain.
being simplified, and old “cultural symbols of unacceptable 2-18 What advice about organizational culture would you give the
47
behavior” are being obliterated. Target executives aren’t new CEO?

CasE applICatIon 2
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Not Sold Out

ompetitors in the movie theater industry had hoped that One important factor, according to industry analysts, is
they were through the challenges they’d faced during the uncertainty over how people want their movies delivered,
49
Cthe economic downturn. Ticket sales revenue has which is largely a trade-off between convenience and quality
been on a roller coaster: 2011, it fell 4 percent from the previ- (or what the experts call fidelity experience). Will consumers
ous year; 2012, it was up 6.1 percent; 2013, it was up, but just choose convenience over quality and use mobile devices such
barely, by not even 1 percent; and 2014, it was down about 5 as iPads? Will they trade some quality for convenience and
percent. The numbers of people going to see a movie continue watch at home using streaming services on surround-sound,
to stall. So, the industry has tried to pump up revenue with high- flat-screen, high-definition home theater systems? Or will
profile movies, higher ticket prices, and premium amenities. they go to a movie theater with wide screens, high-quality
The number of movie screens in the United States to- sound systems, and the social experience of being with other
tals almost 40,000. Together, the four largest movie theater moviegoers and enjoy the highest-fidelity experience—even
chains in the United States have a little over 20,100 screens— with the inconveniences? Movie theater managers believe that
and a lot of seats to fill. The mobile devices aren’t much of a
largest, Regal Entertainment threat, even though they may be
Group (based in Knoxville, What WILL get customers convenient. On the other hand,
Tennessee), has almost 7,400 into movie theaters? home theater systems may be
screens. AMC Entertainment more of a threat as they’ve
(based in Kansas City, become extremely affordable
Missouri) has 5,000 screens. The other two major competitors and have “acceptable” quality. Although not likely to replace
are Cinemark (based in Plano, Texas—about 5,200 screens) any of these higher-quality offerings, drive-in theaters, analysts
and Carmike Cinemas (based in Columbus, Georgia—more note, are experiencing a resurgence, especially in geographic
than 2,500 screens). The challenge for these companies is get- locations where they can be open year-round. The movie the-
ting people to watch movies on all those screens; a decision ater chains are also battling IMAX Corporation for customers
that encompasses many factors. as movie screens get bigger and bigger. The number of these