At the beginning of this week I felt quite helpless and it was evident that my team felt the same. After weeks of hard work not paying off and having our amazing sales figures not be reflected in our shareholder value, my team and I were at a loss as to how to stop ourselves from falling further. As mentioned in my journal last week, my team and I had concluded that the root of our problem was that we simply did not have enough cash to meet consumer demand. This in itself had various effects on our sales, profit and shareholder value. Which then lead us to incurring high levels of interest and legal fees. Over the past few rollovers our aim was to cut costs as much as possible however with our high costs, this was proven to be ineffective. Despite our unsatisfactory results I still remained optimistic that things would get better. The majority of my week was spent in countless meetings, discussing how we were going to turn things around. After contacting our lecturer and receiving much needed help, things became clearer. By the end of the week our spirits were high as for the first time since the actual rollovers began, our shareholder value had increased. During all of this I noticed that while my team began the week not knowing how we were going to recover from the past few rollovers, we all remained determined to get ourselves back on track, which played an important role in our achievement this week.
The readings this week argued that as a learning tool for managers, formal training is not as effective as natural learning (Davies & Easterby-Smith, 1984). The study conducted by Davies and Easterby-Smith (1984) found that none of the candidates felt they had developed in any way from attending training sessions. They felt as though most of their development occurred whilst they performed their normal everyday jobs. This is an argument that I completely agree with. I believe that it’s easy to sit and listen to someone else talk about their own experiences and have them teach you in training sessions but the real learning comes from your own experiences. I can relate this to being a student and the idea that although school and university teach us the theory, it is the practical experience that will be our most valuable tool. I can also relate this to my experience with the MikesBikes simulation. The practice rollovers were our training sessions where we could make mistakes and they would not have severe consequences. However the real rollovers are where I feel I am learning the most, as I am facing aspects of the simulation that I did not encounter in the practice rounds. Another point that I found interesting from the readings is that the study found that the companies that reported the least development were those that dominated the market. Whilst those that reported the most development were companies that existed in a highly competitive market where change, flexibility and a developing culture is fostered (Davies & Easterby-Smith, 1984). I found this to be interesting because it made me question how the market dominant companies were so successful without having their managers develop their skills and capabilities further. This is because I would assume that market dominant companies are those that do embrace change and who develop the skills and capabilities of their employees and managers in order to face that change. I suppose that there are other factors at play here.
Overall I would consider this week to be successful as my team and I have achieved what we have been trying to achieve for quite some time, which is to increase our shareholder value and overcome the negative consequences of the past few rollovers. Our success this week has restored my confidence and I am much more excited for the weeks to come.
Davies, J., & Easterby-Smith, M. (1984). Learning and developing from managerial work experiences. Journal of Management Studies, 21(2), 169--182. doi:10.1111/j.1467-6486.1984.tb00230.x