Free Essay on the Company - Skull Candy

Skull candy started in 2003 and it has managed to distribute products in 80 different countries. It generates $200 million in revenues on a yearly basis. The company's core products are headphones with a sports aesthetic with streamlined ear pads (Hill, Schilling, & Gareth, 2016). The quality of the headphones later demanded higher prices and great brand loyalty compared to the other headphones. Despite the success of the company at the initial stages, it began experiencing problems when the founder left and the competitors started making large headphones with bolder aesthetics and their prices were also high. Later Aiden implemented the earphone that came with positive impact to the company in terms of revenues before the competitors like Sony started to come in (Hill, Schilling, & Gareth, 2016).

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There was also the protection of the company`s product and this also had an added advantage to its development and expansion as well. However, Aiden states that they have been experiencing problems over the past years and this has led to the decrease in the Company`s revenue. One of the major problems that they have experienced is in terms of the workers as Aiden states “ We try to manage everything in-house, but we just don't have enough bodies" From this statement, it implies that there is the human resource in the company was not sufficient. Further, when it comes to employee reward, Aiden has been doing the right thing by making sure that the employees were rewarded basing on their performance as a way of motivation. However, one thing Aiden fails to remember is that employees need motivation regardless of their performance so that they can all object at attaining the goals of the organization.

From the case, the problems facing Aiden is the implementation of new products in three different cycles simultaneously. It is a big challenge because the employees in the company have to be given more than one responsibility, which is also a problem. The fact that the employees are assigned to more than one responsibility tempers with the quality of work as a result of diverged concentration. Implementation of new products is a good thing to the growth of the company, however, it should be organized in a strategic way to sure the aims of the new products are attained (Thomson, 2010). This is the reason, lack of proper organization has coasted Aiden, and he is the only person to be blamed. As much as the main aim of implementing new products is to foresee the company`s growth, Skull candy is not experiencing the same thing and this is reflected in the revenues recorded by the company with the fluctuations in the revenues. For the record, the organization has experienced the increase from 2006 to 2013, before it experienced a significant drop in 2013. This can be attributed to the implementation of new products simultaneously and lack of proper marketing strategies.

However, for the company, it is still early and with the few competitors, Aiden has a chance of hitting the market once again. In this case, the first step that should be taken is implementing one product at a time so that they can give the employees time to concentrate on what they are doing. Through this, they will have the chance to analyze the performance and the progress of the product on the market (Hill, Schilling, & Gareth, 2016). Additionally, the company also needs to implement marketing strategies that will put it in the position to compete effectively with the competitors. It is also important for Aiden to include the employees in decision making so that they can maintain a team work and give suggestions that will help in the growth of the company along with constant employee motivation strategies.

References

Hill, C. W., Schilling, M., & Gareth, J. (2016). Strategic Management: Theory & Cases: An Integrated Approach. New York: Cengage Learning.

Thomson, D. G. (2010). Mastering the 7 Essentials of High-Growth Companies: Effective Lessons to Grow Your Business. New York: John Wiley & Sons.