Astratech Communications International Case Analysis

This case study examines the challenges faced by Astratech Communications International (ACI) under the leadership of its new CEO, George Anderson. The case revolves around issues such as lack of focus, unclear vision, and declining profitability. The analysis identifies key problems, including inadequate cost accounting and the need for a clear strategic direction. Alternative solutions are proposed, including setting clear goals and adopting change leadership qualities. The report evaluates the advantages and disadvantages of each solution, recommending a combination of change leadership and the establishment of a clear vision to improve organizational performance. The document emphasizes the importance of employee motivation, product quality, and effective cost management in achieving ACI's goals.

Case Analysis

• Introduction
• Case Analysis
• Key issues
• Alternative solutions
• Recommendations
Table of content

This presentation is going to make a discussion on a case scenario, where new CEO MR George Anderson of
Astratech Communication International of wants to take some actions for resolving company's issue. Here,
some better solutions are suggested to manage changes in business and improve organizational performance.
Introduction

The discussion in the case study revolves around ACI (Astratech Communications
International). In the respective organisation, George Anderson is seen to be appointed as
the CEO. He is seen to be an effective person who tries his hands to ensure the execution of
business activities in the desired manner. While he was practicing as the CEO of this
corporation, the news of step down of company' chairman instilled a sense of zeal and
enthusiasm within him to get that post then.
Case Analysis

The whole case is seen to be revolving around certain issues that George has acknowledged during his
tenure as CEO. He was an effective leader as wherever he is found to have discovered an issue, he
came up with a solution to resolve that also. It can be drawn from the case that as soon as he started
working at the position of CEO, he began searching for the issues that were pestering the profitability
and growth performance of the corporation. As the days passed, he gained comprehensibility that
there was a dire need to resolve the issues found to be prevailing in the premises of ACI but he was
unsure that the source of the challenges was product development procedures, top management team,
sales and marketing units.
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The main problem that has been presented in present scenario include, lack of focus as well as fast-paced
industry. In addition with this, it has been evaluated that in organisational environment there is no clear
vision which is required and wanted by ACI. Thus, with the lack of acceptable plan performance and
profitability business lead towards downfall. These are some of the issue that decrease organisation
performance that further lead towards decreasing growth perspective. In addition with this by evaluating
business system the main issue that seems was lack of adequate cost accounting, in this individual product
cost has not been known by company. Thus, it is essential for company to address this challenge in best
effective manner for this chief financial officer has been brought in by George.
Key issues

Since the given company i.e. Astratech Communication International (ACI) has faced
issues related to lack of focus under workers due to unclear vision of what company
actually wants. This leads to manufacture products of less quality that results in cancellation
of various orders. To resolve this issue, CEO has suggested to either layoff near about 900
workers or implement a policy of four-day work-week. But hearing such kind of steps,
press media and other labors have made a number of arguments and damaged the car of
new CEO. Therefore, to overcome from this situation, a number of alternative solution for
resolving the mentioned issues are given as –
Alternative Solutions

Solution I: Set clear goals and provide feedback – Employees at workplace are generally
motivated more if they know what company actually wants in what manner they have to
work for achievement of desired goals. By clearly stating goals, new CEO (George
Anderson) of ACI Company can provide a clear vision and guidance to its workers. Since
low quality of products is taken as main issue behind cancellation of orders and reduction in
sales. Therefore, given company also needs to develop Short-term goals. This will prove
more effective in encouraging workers of both branches of Mexico and Scotland, for
properly managing their performance while doing tasks to meet business targets, in given
period of time.
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Advantages Disadvantages
The main advantage part of
this solution which is setting
goal for ACI is to get more
focused worker. In addition to
this, providing timely
feedback to them, will also
help in getting high
performances as well. It
results in producing high
quality of products, that
reduces the fear of
cancellation of orders also.
Apart from given advantage,
this solution fails to describe
how layoff of workers can be
avoided and the way they can
be influenced to accept
changes related to reduced
working days weekly.

Solution 2: Adopt change leadership qualities: Change leadership concept refers to an
ability of influencing others towards attainment of business goals, through personal
advocacy. In this regard, in order to become successful leader, when new CEO of ACI has
implement a task force strategy to resolve company’s issues. Therefore, it is recommended
to change the leadership style first. As per the case analysis, it has been analyzed that to
resolve the issues, many solutions have been provided like – layoff certain workers, reduced
working days (4week-days), hiring of new chief financial officer etc. shows the autocratic
style of leadership, where mostly people at workplace either opposes the changes or feel
less motivated that impact on their performances.
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Advantages Disadvantages
Adopting changes in
leadership style and traits
will help in getting more
supportive working
environment. Hereby,
developing three C’s skills,
will help CEO in earning
collaborative team where
all give equal commitment
to attain current goals of
company. This would also
help in executing changes
more easily at workplace.
The main drawback of given
alternative solution is time,
because to adopt effective
leadership style and implement
changes successfully in
business, requires proper
duration. But as new CEO of
ACI wants quick actions to
resolve issues related to
cancellation of orders, therefore,
under this situation, it seems to
be difficult to change current
leadership styles.

As per the above mentioned report it has been recommended to ACI that, in order to overcome
challenges and issues that have been faced by organisational in their organisation structure. Thus, it
has been recommended to George to undertake change leadership qualities, as with the help of this
they can effectively able to motivate other towards attainment of goals in best effective manner. In
addition with this, it is essential for an organisation to have formative set of clear vision and
acceptable plan. With the help of this company can identify the road which is required to be led by
them. In addition with this it is also essential for company to analyse their product cost as to offer
services in best effective manner along with in cost-effective manner.
Recommendations