Case Study: Leadership Decisions and ACI Company's Performance

This case study examines the leadership challenges faced by Astratech Communication International (ACI), focusing on the decisions made by CEO George Anderson. The case highlights issues such as initial uncertainty in identifying problems, the implementation of a four-day work week, and subsequent layoffs. The analysis explores the impact of these decisions on the company's performance, employee morale, and market value. Recommendations emphasize the importance of proactive quality management, thorough investigation of product issues, and consideration of employee welfare. The conclusion underscores the need for stable decision-making and the potential negative consequences of actions that compromise employee relations and company reputation. The solution provides insights into strategic management and leadership practices within a business context.

LEADERSHIP

INTRODUCTION
The CEO was positioned in ACI company which was located in Mexico
and Scotland. The company had high value and was leading as a
supplier of fibre optic transceiver components in the sector of
telecommunication industry. The challenges that Astratech
Communication International (ACI) faced was at first unable to be
determined by the CEO (Goetsch 2014). Then he determined that the
issues were regarding the growth and profitability of the company.

ISSUES AND DESCRIPTION
• The CEO was new to that position and had no experience in that field
to handle such situation.
• The CEO was unable to determine the issues clearly and took several
months to determine the issue.
• The CEO then formulated a sales team who were the middle
managers for addressing the issues accurately (Hoyt 2013).
• The managers and CEO noticed that the quality was not up to the
mark as they ought to be comparing with the competitors.

Continuing the issues
• The CEO then decided to take measurable steps for the employees
and managers to work for four day work week to generate revenue to
overcome the current issue of project backlog.
• The CEO then took the advantage of work force by extracting the
work from them for that specific period (Ingram 2015).
• Then after completion of the target, he decided to layoff 900
employees in order to manage the cost of the company.
• This decision formed a disrespectful situation and decreased the value
of the company in the market it is formulated.

Recommendations
• CEO may take preventive steps to ensure the quality is maintained in
due time or not.
• CEO must analyse the issue deeply and with the sales team must
investigate the issues with the products and how it can be improved
for gaining competitive advantage (Martin 2014).
• George must consider the employees as the important assets so that
the layoff should not impact the work force of the company.

Conclusion
This concludes that Astratech Communication International have not
been stable in decision. The decision taken by the CEO, George
Anderson have led to improper decision making for the company. ACI
have stood stable in business but with the loss of human resource have
made a bad impression on the value of the company. The company
efforts for stratifying the roles for improving the quality which resulted
in improvement in growth and profitability.

References
Goetsch, D.L. and Davis, S., 2014. Quality management for
organizational excellence: Introduction to total quality.
Hoyt, C.L., Price, T.L. and Poatsy, L., 2013. The social role theory of
unethical leadership. The Leadership Quarterly, 24(5), pp.712-723.
Ingram, T.N., LaForge, R.W., Williams, M.R. and Schwepker Jr, C.H.,
2015. Sales management: Analysis and decision making. Routledge.
Martin, K. and Osterling, M., 2014. Value stream mapping: how to
visualize work and align leadership for organizational transformation.
New York, NY: McGraw-Hill.

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