'PM Profitel Inc. Case\r'

'As a formerly presidential term-owned telephone monopoly, Profitel enjoyed many decades of minimal competition. Even today as a publicly traded enterprise, the fraternity’s about exclusive control over telephone tomentum wiring across the country keeps its profit mar- gins to a spunkyer place 40 percent. Competitors in telephone and DSL wideband continue to rely on Profitel’s sweeping business, which generates substantially more profit than similar sell services in many former(a) countries.However, Profitel has sloshed competition in the cellular (mobile) telephone business, and another(prenominal) emerging technologies (voice- over-Internet) threaten Profitel’s dominance. Based on these threats, Profitel’s dialog box of directors indomitable to hire an outsider as the wise chief executive. Although several strung-out jakesdidates expressed an interest in Profitel’s fleet job, the visiting card selected Lars Peeters, who had been chief operating officer for six years of a publicly traded Euro- pean telephone order, followed by a brief stint as CEO of a cellular telephone company in the coupled States until it was acquired by a larger firm.Profitel’s hop on couldn’t believe its good fortune; Peeters brought drawn-out application knowledge and global experience, a high-voltage energy level, self-confidence, decisiveness, and congenial yet strongly glib interpersonal style. He alike had a ludicrous â€Å"presence,” which caused people to pay attention and respect his leaders. The shape up was also impressed with Peeters dodging to bolster Profitel’s profit margins.This included heavy investment in the latest wireless broadband engineering science (for ii cellular telephone and computer Internet) before competitors could clear a foothold, cutting costs through layoffs and decline of peripheral services, and putting pressure on government to deregulate its traditional a nd emerging businesses. When Peeters described his dodging to the board, one board member commented that this was the same strategy Peeters used in his previous two CEO postings. Peeters dismissed the comment, saying that each situation is unique. Peeters lived up to his reputation as a decisive executive.Almost at once after taking the CEO job at Profitel, he hired two executives from the European company where he previously worked. Together over the adjacent two years they cut the workforce by 5 percent and rolled out the new wireless broadband technology for cellphones and Internet. Costs increase somewhat due to downsizing expenses and the wireless technology rollout. Profitel’s wireless broadband subscriber reheel grew quickly because, in spite of its very high prices, the technology faced limited competition and Profitel was button customers off the older technology to the new network.Profitel’s customer sat- isfaction ratings fell, however. A national consu mer research conference reported that Profitel’s broadband offered the country’s worst value. Employee morale also declined due to layoffs and the company’s public image problems. Some industry experts also noted that Profitel selected its wireless technology without evaluating the choice emerging wireless technology, which had been gaining ground in other countries. Peeters’ aggressive campaign against government regulation also had unintended consequences.Rather than achieving less regulation, criticizing government and its telecommunications regulator do Profitel look even more arrogant in the eyes of both customers and government leaders. Profitel’s board was troubled by the company’s dull share price, which had declined 20 percent since Peeters was hired. Some board members also worried that the company had bet on the awry(p) wireless technology and that subscription levels would stall farthermost below the number necessary to achi eve the boodle stated in Peeters’ strategic plan.This concern came finisher to reality when a foreign-owned competitor won a $1 billion government contract to mend broadband services in regional areas of the country. Profitel’s proposal for that regional broadband upgrade qualify high prices and limited corporate investment, but Peeters was convinced(p) Profitel would be awarded the contract because of its market dominance and be infrastructure with the new wireless network.When the government decided otherwise, Profitel’s board fired Peeters along with two executives he had hired from the European company where he previously worked. Now, the board had to figure out what went wrong and how to avoid this problem in the future. Questions: 1. Which perspective of leadership best explains the problems experienced in this case? disassemble the case using concepts discussed in that leadership perspective. 2. What can organizations do to minimize the leadership p roblems discussed above?\r\n'