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A Failing Division in a Company

Turning around a failing division in a company is an important managerial challenge that requires solving various problems by creating an entirely new corporate environment. Several factors influence the performance of a business venture, company or a division of a company (Amir 2003). This paper therefore provides proper details on how to turn-around a failing division of a company.

Outdated product lines can turn consumers against the company thus making the people to seek alternative products and services from competing companies. Development and research is the first step that is important for updating a product line that is failing. The research needs to focus on unique innovations and technology necessary for setting the product line a part from everything else. The product should rely on market research in order to determine the underserviced segment of the market and establish what they want in the product that makes them reject what the failing company division is offering (Gary 2001).

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Adversarial communication is another problem affecting the failing company division and points to a serious problem within the corporate atmosphere just like cut throat competition for resources (Amir 2003). It is important to note that closely linked, the two problem experienced by the failing company division has similar manifestations related to too much competitive atmosphere. The competition among the employees is healthy as long as it does not interfere with the teamwork. A project selection process that is less subjective is important for taking away some antisocial pressure affecting the relationships between the division’s employees. Evaluation of all projects helps in leveling the playing ground hence leading to the cutting down of adversarial communications.

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Creating a much more hierarchical command structure is instrumental and key in solving the problems of negative business environment that contributes to the failure of the company’s division (Gary 2001). Through a hierarchical command, structure may be authoritarian, but allows the team to create a policy that facilitates a top down communication to employees and helps prevent the employees from engaging in negative communication by banning such kind of communication as part of company’s policy.

A fundamental shift concerning the creation and operation of project team is necessary for transferring the company’s failing division to the entirely new organizational structure. It is also the responsibility of the leadership to prepare for a transition into post bureaucratic system: a process that may prove challenging (Richard 2000). Organizing the teams in a much less hierarchical manner within the top-down bureaucratic approach is of great importance.

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Having a new manager to spearhead such an operation is equally relevant since it becomes relatively easy to the structure of the company’s failing division since it is quite complex to undertake such changes within a bureaucratic system. The new manager should make the core business decisions until after turning around the falling division. Having one person taking charge of the rehabilitation or turning around the failing division of company is necessary for preventing negative attitudes and feelings from the managers under the new manager from influencing or affecting the risk taking necessary for turning the failing division of company into a successful business venture(Richard 2000).

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At the planning states, it is important for the project manager to assess the external business environment prior to establishing the project objectives, timelines and deliverables. Some of the competitive forces that have great effects on business planning include the suppliers bargaining power, competition, and barriers to market entry, threats from the substitute services or products. The team tasked with taking the leading need to assess the competitive factors and also conduct an analysis that allow the division company manager to make better choices, decisions and integrate such initiates in the rehabilitation or turn around plan (Gary 2001).

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