Free Essay On Airtex Aviation: The Power Of Effective Management

The success of a business is overly dependent on the suitability of the management style employed in the organization. Deficiency of this essential business element will translate into financial strains and losses. It was the case for Airtex Aviation and the company needed to be salvaged through acquisition. Fortunately, it coincided that Ted Richards and Frank Edwards, graduates from Harvard School of Business who had commenced their career in prominent firms, were looking for a company to purchase. On purchasing the company, Ted and Frank considered the future of the company to be bleak given the deteriorating financial position of the company. However, they were determined to turn things around in order to stabilizing the finances of Airtex Aviation.
The challenges faced by AirTex Aviation were predominant. In the short run, the company was undergoing financial difficulty given that it was making losses all through. It meant that many debts remained unpaid for a long period. Failing to honor the terms of the credit granted worsened the situation because the suppliers, for instance, would not supply AirTex any longer due to the lack of trust. Besides, in the long run, the company’s departmental managers were not motivated in their work since they had no discretion to of even evaluating their work. Instead, the accounting department, under the management of Sarah Arthur, took over the entire management of the company.
The need of to have ameliorated management skills in the AirTex was compelling. The contributions of Ted and Frank into the management of the company were eminent. The move to decentralize the operation of the company was educated and portrayed the analytical skills of new owners. In essence, by having the departmental managers take charge of their operations, motivation to produce was building up as well, indicating the leadership skills of Ted and Frank. The incentive to work is fortified by the introduction of bonuses to the departmental managers based on departmental profits. In addition, proper communication skills are depicted when Ted and Frank meet with supplies with intent to build on their business relationship. However, the projections on the prosperity of the business indicated that in a period of three months, the company would run bankrupt and thus out of business long before ten years elapse. Despite these discouraging findings, Ted and Frank faced the danger head-on.
In his bid to create an ideal organizational structure, Ted provided managers with adequate discretion when making decisions. Ted did not want to take a dictatorial approach of management and hence allowed managers to make decisions as a way of showing them that they have a great contribution to the success of the company. Subsequently, Ted would analyze the decisions made advice on hem accordingly. By so doing, even the decisions he was unaware of are brought to the table. Intrinsically, Ted’s intention was to advocate creativity among the managers in regards to decision-making. This process in itself is a source of motivation for the managers to be productive and responsible for their decisions as well.
Admittedly, the success of AirTex Aviation is apparent. It is attributed to the ideal management techniques that Ted and Frank introduce to the company. The greatest problem the company had when it was acquired was the losses and the unpaid debts because of that. However, the new owners are working to settle the debts in the most convenient ways possible, thanks to their amicable communication skills. Eventually, the debts will be settled, and the good business relationship that Ted and Frank have developed with suppliers and lenders will see the AirTex prosper to higher heights.