ipl-logo

How Did Masco Become A Good Leader

830 Words4 Pages
bulb-icon

Recommended: Importance of leadership on business success

Lets take this opportunity to study the “MASCO FIASCO” and step into the shoes of Richard Manoogian, the CEO of Masco Corporation, a highly successful company on the verge of a momentous decision. Its 1986, Masco is a successful $1.15 billion company that has just recorded its twenty- ninth consecutive year of earnings growth. Its ability to wring outsized profits out of industries that are neither high tech nor glamorous has won it the moniker of “Master of the Mundane” on wall street. Its portfolio includes faucets, kitchen and bathroom cabinets, locks and building hardware, and a variety of other household products. Masco expects the business to generate $ 2 billion in free cash flow over the next few years, if it enters the furniture industry. …show more content…

Two years later, operating earnings from furniture came to $ 80 million on sales of $ 1.4 billion, an operating margin of 6 percent, versus 14 percent for the rest of the company. CEO Manoogian admitted, “The decision to go into the home furnishings business was probably one of the worst decisions I’ve made in 35 years. So lets ask ourselves now, was Richard Manoogian a super leader or just another bad leader?
Even if you were undecided or skeptical about the furniture industry, I’m willing to bet that some part of you supported Masco’s move. No one respects timid, passive leaders. Bold, visionary leaders who have the confidence to take their firms in exciting new directions are widely admired. Isn’t that a key part of strategy and leadership?
In truth, it is. But the confidence every good leader needs can readily balloon into overconfidence. A belief that is unspoken but implied in much management thinking and writing today is that a highly competent manager can produce success in virtually any situation. Richard Farson calls this “the sense of omnipotence that plagues American management, the belief that no event or situation is too complex or too unpredictable to be brought under management control.” One philosopher at Harvard University, Martha Nussbaum describes the balance in a system as a “ fragile integrity”, it is “ impossible to build water-tight ships that will withstand all contingencies,” she wrote. “You cannot remove ungoverned chance from human life.” And trying to is

Show More
Related

Massachusetts Stove Company Case Study

1064 Words | 5 Pages

Management has shown their abilities over the years to weather the recent EPA changes and declining wood stove market. While their profit margin for return on assets decreased, they managed to still increase sales enough in their niche market to increase their asset turnover and in the end, increase their return on assets. Even with major deficits in their retained earnings, the company worked through the tough regulations and low cash flow to not only continually grow their business, but turn

Read More

Chapter Summary: Unmasking Administrative Evil

1255 Words | 6 Pages

6. What are the primary strengths and weaknesses of the book? The primary strength of this book is how much organizational theory has largely sanitized the notion of evil, also creating more inherent characteristics of modern organizations that allows evil to be administratively sanitized, accepted as rational and proper in terms of efficiency and the masking may be inadvertent. The weakness of this book is that precision on when the virtues of modern administrative practices will be realized without encouraging administrative evil.

Read More

Leadership Skills In Beowulf

696 Words | 3 Pages

A leader is supreme when they demonstrate confidence needed for the role, and when they go through with what they say they’ll

Read More

Finance Case Study: The Wilkerson Company

895 Words | 4 Pages

The last product that this company produces are the flow controllers. Flow controllers are products that are very customizable but are not as competitive on the market demanding higher prices. The planned gross margin for the flow controllers was 35% with an actual margin of 41.%. There was a significant increase without the loss of any business. The Wilkerson company have a quality leadership team; however, there are some things that needs to be changed for the company to succeed and prepare for potential price

Read More

Summary Of The Human Side Of Enterprise By Douglas Murray Mcgregor

1015 Words | 5 Pages

The power of decision-making rests in the management that is able to apply human talents and capacities to the organizational objectives. Additionally, the reorganization of work provides a more challenging opportunities to direct the efforts of the behavior and needs of both individuals and the organizations. McGregor argued, “Only human management that as confidence in human capacities and is itself directed toward organizational objectives rather than toward the preservation of personal power can grasp the implications of this emerging theory” (p. 160). Compare and contrast in three sentences from the reading to the tenets that are fundamental to the Classical School of Thought.

Read More

Role Of Belbin Team Theory

1611 Words | 7 Pages

INTRODUCTION The Prophet of Management Mary Parker Follett defines management as “the art of getting things done through the efforts of other people. She emphasize on the importance of the team work that done with the lead of the manager. Also, she defines the principles of management as the activities that “plan, organize, and control the operations of the basic elements of people, methods, materials, money, machines and markets, providing coordination and direction, and giving leadership to human efforts, so as to achieve the goals. A team is a group of people working together to achieve the team’s goal. Teams are different than other types of groups in that members are focused on a specific goal or product.

Read More

Martin Luther King's Leadership Style

853 Words | 4 Pages

In other words, leadership demands the ability to modify plans and adapt new strategies based on conditions and circumstances. To be successful, a leader must be capable of fitting in and adapting to a plethora of different groups and situations while never losing vision of the objectives and purpose of their appointment. Martin Luther King was flexible. Once he said that: “When you are right you cannot be too radical; when you are wrong you cannot be too conservative.” All things considered, the future leaders should learn from his example because he created himself.

Read More

Analysis Of Abraham Zaleznik's Article 'Managers And Leaders: Are They Different'

735 Words | 3 Pages

Abraham Zaleznik in his article, “Managers and Leaders: Are They Different?” (1977) puts forth a claim that in every aspect of personality and reaction to certain events, managers and leaders are fundamentally different from each other. In this paper, I shall summarize Zaleznik’s argument and subsequently his reasons and evidences to make such a claim. To build on his main claim, Zaleznik at first creates a fine line between managers and leaders based on their personalities. He states that a manager operates in the realms of rationality; his reasons being the structured, ordered environment managers exercise their power in: the business organization.

Read More

Donald Trump's Leadership Style

1924 Words | 8 Pages

One might argue that Donald Trump is arrogant and could, perhaps, even be described as egoistic person. Regardless of one’s viewpoint it takes a confident person to be able to lead others effectively especially in a competitive business field. His confidence exudes energy. An energy that grows into an animating energy which is a contagious one that has permeated into the system of his business administration. It must be the strange combination of big thinking and radiant confidence along with high expectations of himself that might have generated the resilience nature in him and in his business.

Read More

Leadership: A Critical Review Of Leadership Theories

1000 Words | 4 Pages

Critical Review of Leadership Theories There have been a variety of theorists who have tried to understand how good leaders acquire their skills and whether the components which make up a successful leader are hereditary or learned. Many Studies have been made using twins to identify that about forty percent of differences in personality are hereditary. (Vernon et al., 1998) From this we can see that it is not only a matter of whether a person in born with these skills but one must also build on them to become a successful leader.

Read More

Leading By Example: A Leadership Analysis

717 Words | 3 Pages

A good leader inspires his team with good ethics, encouragement, trust, commitment and overall sense of wellbeing. Leading by example is in fact a reality. A team that is led by a most creative and innovative leader with an aim to succeed will in fact be successful if that leader has the will and know how to make that team operate in one accord. Peterson (1961), in his book,

Read More

Reflective Essay: The Value Of Team Leadership

1783 Words | 8 Pages

On the same note, visionary leadership is more into the future which rhymes effectively with ambitions of most of the members who have dreams of becoming innovators and scientists shortly. This leadership style fits with my personality since have qualities such as: Good communicator- as a visionary leader I should have the command of the language and be a good communicator with excellent communication skills. With these skills, I can verbalize my dreams and goals and clearly explain to my team what we need to do to achieve our dreams. Risk- taker – as a good visionary leader should be a risk taker and have the willingness to gamble on what I believe in. Being a risk taker, I can take intelligent risks that capitalize on prime conditions by taking smaller steps into the futu5re before finally making bigger

Read More

Tesco Malaysia Case Study

2066 Words | 9 Pages

Introduction Tesco Stores (Malaysia) Sdn Bhd owns and operates hypermarkets in Malaysia. It offers fresh produce, groceries, household items, and apparel and its own food and non-food products. The company was incorporated on 29thNovember 2001, as a strategic alliance between Tesco PLC UK and local conglomerate, Sime Darby Berhad of which the latter holds 30% of the total shares. Tesco opened its first store in Malaysia in February 2002 with the opening of its first hypermarket in Puchong, Selangor. Tesco Malaysia currently operates 49 Tesco and Tesco Extra stores nationwide.

Read More

8 Principles Of Max Weber's Bureaucratic Management Theory

1901 Words | 8 Pages

Contemporary management involves many aspects of management. These aspects include planning, leading, organising and controlling operations to achieve certain organisational goals. When comparing different management levels it is evident that at all levels emphasise the importance of using resources effective and responsibly. Managers should be able to build their own as well as their subordinates’ skills, regarding decision making, monitoring information and supervising personnel are which are essential to success. Managers have great responsibilities, these responsibilities include managing a diverse work force, maintaining a competitive edge, behaving ethically and using emerging technologies.

Read More

Mukesh Ambani Leadership Style Analysis

925 Words | 4 Pages

He has always been of the view that smalrt leaders are those who have the ability to develop smart followers. A leader working with an incompetent or incapable team will never be a great leader. In every diversification process that Reliance has undertaken, he did not rely on existing leaders in his business. He instead opted for talented manpower and smart leaders who have expertise in the specific domain where Reliance was venturing into. This has since then become a trademark of how the man

Read More

More about How Did Masco Become A Good Leader

Related Topics

Open Document