Company Scenario 2

Carritas Motors was founded thirty years ago in the Midwestern US. The company's name was
derived from the Latin word Caritas, meaning love and compassion. The company was built on
a love of cars and dedication to its stakeholders. Carritas became a publicly traded company
several years after its founding (NYSE: CARS). It is now among the leading automobile
manufacturing companies in the country. The company's diverse product portfolio includes
passenger cars, sports utility vehicles (SUV), and trucks. Its products are exported to more
than 30 countries and regions worldwide, creating several well-known product series and
brands, such as Exsel, Majestik, ELE, and Serenity. The company believes in innovation and is
devoted to developing cutting-edge technologies. To this end, the company is deeply
committed to connecting aspirations and embracing diverse talents.
The Carritas' mission is to provide its customers with the best vehicles and experiences
worldwide. Building on its past success, the company's strategic leaders recently worked
closely and formulated the aspiring short-term and long-term goals for the future. For
example, the company strives to increase its global market share by further penetrating
promising international markets such as China and India and increasing its product lines by
adding electric cars and autonomous driving to the product portfolio. Furthermore, to
maintain a competitive position and seek additional financial returns, the top managers are
also considering viable avenues to broaden its business portfolio, such as solar batteries and
biotechnology.
Mr. C. Carr has been the CEO of the company for seven years. In the first five years of his
tenure, Mr. Carr enjoyed great success, leading the company to achieve high customer
satisfaction and solidify its market share despite the fierce competition. Because of his
accomplishment, Mr. Carr was named the CEO of the year and became very content. However,
the auto industry soon has undergone radical transformations due to the changing consumer
preferences the economic and environmental interests. Clinging to the traditional business
model, Mr. Carr has been reluctant to search for sustainable solutions, putting him
increasingly at odds with the board of directors
Although the company has formulated strategic goals, Mr. Carr has lost sight of the future.
The company's financial performance has been tumultuous over the past two years, falling
short of the financial goals for the organization's growth. The profit went down by 30%, and
the stock price plummeted by 15%. To strengthen the organization's financial position and
organizational development, the board of directors has decided to terminate Mr. Carr's
employment contract due to his poor performance.
1. What is the main problem the company is currently facing?
2. What are the goals of the board of directors?
3. What does the board of directors need to do to resolve the issue?
4. Review the candidate profiles, and summarize each CEO contender's key merits and
shortcomings.
5. Which CEO contender we can decide to hire?
6. Who will be an alternative? If so, who was it?
7. What decision criteria take most into consideration? What decision criteria take least
into consideration?

1. What is the main problem the company is currently facing?

● Based on the scenario it is due to shifting consumer preferences, economic

concerns, and environmental concerns, the auto industry rapidly
underwent significant changes.
● Over the past two years, the company's financial performance has been
erratic and has fallen short of the financial targets for the expansion of the
organization. The stock price fell by 15%, while the profit decreased by 30%.

2. What are the goals of the board of directors?

● The business has a strong commitment to fostering diversity in talent and

bridging aspirations. The top managers are also thinking about possible
ways to diversify its business portfolio since they want to maintain a
competitive position and seek for more financial rewards, like solar
batteries and biotechnology.
● Additionally, to offer the world's top cars and experiences to its customers.
Despite the intense competition, to increase customer satisfaction and
maintain its market share.
● to improve organizational development and the organization's financial
position

3. What does the board of directors need to do to resolve the issue?

● The board of directors must decide who will be the next CEO after Mr. Carr.
They must choose someone who is knowledgeable about their product and
has had good leadership in the past and present.

4. Review the candidate profiles, and summarize each CEO contender's key merits
and shortcomings.

CEO Contender # 1

Alexander's advantage over some other CEOs is that he has good leadership
skills and great performance. He has a good marketing strategies as well.
Alexander will be the only expert in marketing who is accountable for a company's
entire marketing performance. In order to improve the company's market position
and accomplish targeted business objectives, the vice president (VP) of marketing
directs marketing strategies and initiatives. Generally, he is just good in
marketing. However, he is not familiar with or knowledgeable about other
departments or areas of the Carritas. He was just too quick as VP of marketing.

CEO Contender # 2

● K. Goodwin has the potential to be the next CEO of Carrita's Motors and
has been with the company for two decades. He is knowledgeable about
the product , with valuable experience and expertise. He has the
adaptability since adaptable change is an inevitability. When conditions
change, leaders that are adaptable can make the required alterations and
shifts. Possessing adaptation abilities shows that he is open to learn and
experiment order to keep up with changes in the job.

CEO Contender # 3

● J. Brown has also the potential since he has passion in cars and has a
family owned car-garage on his teenage life. He is also knowledgeable
about cars and managerial positions, but it seems like he is not prepared
to be the next CEO. Because, he doesn't have much knowledge of the
company product and all, since he had work to different company before.
First, he must have the adaptability to be a CEO, His strategy, priorities,
and actions may be significantly impacted by changes in your industry,
sector, and business. Accepting that and being able to shift course when
necessary can be a very effective strategy.
● A strong CEO should also be able to modify their function to fit the needs
of the business, whether that be for a start-up company or a worldwide
conglomerate.

CEO Contender # 4

● T. Williams is knowledgeable about being the CEO since he has already

experienced it after Williams's father retired. I am seeing here that he is not
yet qualified to be the Carritas Motors's next CEO, as he hasn't worked at
the company yet, and it will take time to learn and adapt to all things about
the company. There are lots of qualified contender but T. Williams is not.

CEO Contender # 5
 ● R. Jones has also the potential to be the next CEO of Carrita's Motors since
he has knowledge in manufacturing a robotic systems. It is an advance to
him because the company is considering viable avenues to broaden its
business portfolio, such as solar batteries and biotechnology, and even his
experience in leading and serving on the audit committee of several
boards. However, he is not yet qualified to be the next CEO.

CEO Contender # 6

G. Miller has a potential too because of his experience and has a good
leadership skills. In a company, good leaders foster personal development. They
seek out learning opportunities for the individuals they work with and are willing
to share what they know (or the people who work for them). They strengthen the
group as a whole and promote trust, rapport, and cooperation among team
members. It is one of the most important skills of a CEO in a company. Besides
she has boosted a good 12% of sales for the consecutive quarter which is
amazing. Regarding with the company knowledgeability she can study on it and
will learn through easily and fast.

5. Which CEO contender can we decide to hire?

● It's G. Miller for me. She has all the potential, and she can help the company
boost sales. I am seeing that he has a good leadership skills which will help
the Carritas Motors's growth and development. Besides, she has developed
a strong and positive working relationship with the top management and
some other employees of Carritas. To succeed, it's important to establish
positive working relationships. Improved teamwork, as well as happier, more
engaged, and more productive employees, result from better working
relationships. They serve as the cornerstone of our success.

6. Who will be an alternative? If so, who was it?

● K. Goodwin will be the alternative for G. Miller as I said he is already in the

company for two decades. He can develop a strong product pipeline, and
expand product portfolio. You can extend your target market and increase
your consumer base by adding more products to your range of offerings.
At this point, you might want to think about offering many product
variations at a range of price points. This minimizes the possibility of losing
clients due to pricing choices. Product portfolios are a crucial component
of financial analysis because they give a firm's and its core activities
context and granularity. Investors are able to distinguish between chances
for short-term asset growth and long-term value stocks.
7. What decision criteria take most into consideration? What decision criteria take
least into consideration?

● A CEO can play a variety of roles. They frequently communicate with

management, the board, and the general public while serving as the
company's face to internal and external stakeholders. They are in charge of
implementing the organization's long-term plan and fostering brand values
within the workforce.

1. Vision - A CEO should have a distinct vision for where they wish to take their
company. When based on fact, ambition and optimism are positive traits, and the
CEO of a firm needs to have faith in those objectives. The ability to persuade
others to share your vision is a crucial leadership skill.

2. Receptiveness - It is essential to pay attention to those around you. Accepting

the advice of fellow executives and board members is crucial because they are
there to advise you in their own fields.
Good listening habits and a sincere interest in other people's concerns will
enhance your reputation among coworkers, help you better grasp how the
company runs on a daily basis, and overall help you make more wise business
judgments.

3. Motivation - A competent CEO must possess the capacity to enthusiastically

pursue goals and inspire others to adopt similar attitudes. Making the most of
your workforce is essential for corporate success. Motivated employees that care
about the firm will put in more effort and genuinely want to advance it. Learn to
inspire action in others and in yourself.

4. Adaptability - Your strategy, priorities, and actions may be significantly

impacted by changes in your industry, sector, and business. Accepting that and
being able to shift course when necessary can be a very effective strategy.
A strong CEO should also be able to modify their function to fit the needs of the
business, whether that be for a start-up company or a worldwide conglomerate.

5. Trust - Being trustworthy and inspiring trust are qualities of a good leader that
are crucial for a CEO. Stakeholders must have faith in your competence, and you
must be at ease handing over responsibility to people with whom you collaborate.
A trustworthy CEO benefits from a productive workplace where staff talent is
valued and has more time to concentrate on the larger picture.