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Closing Of Blockbuster Stores

Closing Of Blockbuster Stores
Employees working in a certain organization play a major role in shaping the behaviour of the organization. Organization behaviour focuses on the impact of this behaviour on the organization’s performance. Organizational behaviour has transformed to an important business management tool that identifies, investigates, and frequently recommends methods of controlling or inspiring the human capital in an organization. This research paper aims to review the closure of Blockbuster stores in view of organization behaviour of the company. The blockbuster case study illustrates that there is no assurance for continued business success for organizations despite their fields of specialization. This paper will evaluate the role of organization behaviour in the closure of Blockbuster stores specifically addressing these questions: Why do profitable organizations fail to adjust to the market changes over-time? What happens when an organization’s past practices affects the organization’s ability to move forward? What aspects of organization behaviour influence the performance of a company? The paper will examine various aspects of organization behaviour through the development of Blockbuster’s stores to its closure.

Blockbuster store was established in Dallas in 1985 as a competitor for the small video shops that were scattered in various neighborhoods. David Cook the owner of Blockbuster stores applied his knowledge in computer systems and introduced a computerized inventory system that was embraced by the clients (Albarran, 2013). Due to rapid growth of the Blockbuster store in Dallas, Cook embarked on an expansion strategy. A planned IPO in order to raise funds, which were to cater for high operating costs failed. This forced Cook to sell part of Blockbuster’s interests to Huizenga. Cook opted to leave Blockbuster stores since his future strategy of the company differed with the Huizenga’s strategy. Cook believed franchising had unlimited opportunities for the organization while Huizenga believed corporate owned stores would lead to rapid growth of the company. Huizenga started the expansion program through buying many stores around the world. Blockbuster had 3,400 stores in mid1990s when the growth of the company stalled. The modern leadership at the Blockbuster stores contributed to its fall due to lack of innovation to adapt to the changing market needs (Albarran, 2013). Closure of Blockbuster stores is attributed to the leadership style at the organization, which undermined the responsibilities of the management. The aim of this paper is to examine the human behaviour of the groups, organization, and individuals that contributed to the closure of Blockbuster stores.

Major Arguments
Poor leadership at Blockbuster stores led to the organization’s failure to eliminate competitive threats and maximize on opportunities, which could have led to the survival of the company (Albarran, 2013).
Poor decision-making skills saw the organization introduce policies, which were devoid of customer awareness (Greenberg, 2010).

The hierarchy type of leadership at the organization led to poor communication within and outside the organization (Teece, 2010).

There were unsolved conflicts within Blockbuster stores that frustrated strategic planning efforts (Ritter & Gemunden, 2004).

Company culture is a critical issue that determines the performance of an organization (Um, 2004). The combination of Blockbuster’s past success and unchanging management styles hindered the organization’s ability to develop future strategies.

Blockbuster stores should work on establishing a strategic plan that will lead to its recovery and regain a certain market share (Albarran, 2013). Blockbuster stores should change its management style to suit the current needs of organizational and human behaviour.

Blockbuster stores should rebuild its public image to equate the customer’s perceived value of their products and services.

Blockbuster stores should learn to introduce its new products and facilities in a timely way to its customers. This is a crucial aspect of organization behaviour anticipating the needs and reaction of the customers.

Albarran, A. (2013). Media management and economics research in a transmedia environment (1st ed.). New York, NY: Routledge.
Greenberg, J. M. (2010). From BetaMax to Blockbuster: Video stores and the invention of movies on video. MIT Press.
Ritter, T., & Gemünden, H. G. (2004). The impact of a company’s business strategy on its technological competence, network competence and innovation success. Journal of business research, 57(5), 548-556.
Teece, D. J. (2010). Business models, business strategy and innovation. Long range planning, 43(2), 172-194.
Um, Y. B. (2004). Creating comparative advantages in the E-commerce industry (Doctoral dissertation, Massachusetts Institute of Technology).
Weinberg, B. D., Parise, S., & Guinan, P. J. (2007). Multichannel marketing: Mindset and program development. Business Horizons, 50(5), 385-394.

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