Introduction
The case “The Graham Family and the Washington Post Company” describes how appropriate leadership strategies, proper decision-making processes, and combined family efforts can transform a company and make it profitable. However, the article reveals that family businesses such as the Washington Post Company might not be easy to manage. This paper gives a detailed analysis of the unique problems facing the company and goes further to offer evidence-based recommendations that can transform its business model.
Problem Definition
Despite such achievements and the ability to manage the Washington Post Company successfully, the new era had presented numerous challenges and obstacles that could break or make the family-owned business. The case study indicates that problems of managing a family business could be addressed when the stakeholders supported its agenda. Since this corporation was operating in the communications industry, its television segment was facing a powerful challenge from the development of the World Wide Web (Barnes 2). The emergence of the Internet was also going to interrupt the company’s business model. Additionally, more companies in the industry were focusing on cable (Barnes 2). These challenges must be addressed if the company is to continue supporting its customers’ needs.
The changing business environment is strengthening the bargaining power of many employees. Many reporters and journalists have adequate competencies and resources that should be considered by companies. The needs of different customers and consumers have changed significantly. Corporations should be keen to hire workers who can meet these demands (Bravo et al. 19). As the company plans to achieve its growth objectives, it must acknowledge the fact that competition in different segments is a new reality. The increasing number of strained employees is something that appears to threaten the company’s future. The rapid changes in technology will also pose numerous threats and affect the corporation’s business model.
Analysis
Although the company’s leaders have managed to address most of the issues affecting its performance over the years, new challenges have emerged that must be tackled from a critical perspective (Barnes 2). The case study indicates that Katharine Graham used her skills and competencies to make adequate decisions that supported the company’s growth strategy despite the recurring challenges. She was keen to make timely and impartial decisions that supported the company’s goals. Consequently, she led the corporation successfully after the death of Phil Graham. She also managed the company efficiently during turbulent times. For example, she handled controversial situations such as the Watergate Scandal and the Pentagon Papers diligently.
Initially, Eugene Meyer failed to acquire the company in 1929 because the quarreling family members were unable to accept his offer of 5 million dollars (Barnes 2). This occurrence is a clear indication that the existence of conflicts in a family business can affect its performance and profitability. The family members would eventually be forced to auction the company for 825,000 dollars in 1933. This means that the company was sold at a loss. It had also accrued huge debts by that time. This analysis shows that failure to manage family businesses adequately can affect their competitiveness and performance. That being the case, Meyer knew that it was appropriate to identify a competent successor and support the company’s future.
The history of this company can also be used to understand the major issues and challenges that might affect it in the future. As the new leader at the company, Phil Graham pioneered revolutionary strategies such as the acquisition of new companies and the introduction of segments such as television (Barnes 3). This move created a new competitive edge, thereby making the company profitable and successful. This case shows clearly that organizational leaders should be prepared to deal with emerging changes and consider new ideas to improve profitability and competitiveness.
Throughout her time as the company’s owner, Katharine Graham was keen to make adequate decisions, seek guidance from competent persons, and manage the company without fear (Barnes 5). Some people encouraged her to sell the company after her husband’s death. However, she was keen to take up leadership roles, manage emerging issues, make appropriate decisions, and hire new professionals.
The emergence of challenges such as strikes could have catalyzed the collapse of the company. However, Katharine was keen to make adequate decisions and hire new employees who could support the targeted goals. This bold move increased the responsiveness of different workers individuals who had not been involved in the strike. She also managed to deal with critical situations such as the Pentagon Papers and the Watergate Scandal. Her firmness and sincerity created a new culture of transparency, thereby propelling the family business to a whole new level (Barnes 7). According to this analysis, leaders should be keen to deal with emerging challenges, be prepared against the changing times, and make appropriate decisions that can support and empower different employees.
Due to such skills, abilities, and achievements, many people acknowledged that Katharine Graham was a great leader whose determination made the company successful (Barnes 9). From this analysis, it is evident that most of the challenges inherited by her son, Don Graham, could be addressed using the same strategies and boldness exhibited by the company’s earlier leaders. Issues such as changing business environments, the bargaining power of employees, emerging consumer needs, and the emergence of the Internet could be addressed using an appropriate leadership strategy.
Don Graham had borrowed appropriate leadership strategies from great individuals such as Jack Welch of General Electric and Steve Jobs of Apple. These great leaders were keen to liaise with their employees and followers, support their needs, communicate efficiently, and come up with a shared vision for every team (Dike et al. 143). Echoing most of these initiatives, Don Graham established positive relationships with his employees. That being the case, he knew that the best tricks whenever managing a family business were to do things right, manage public affairs efficiently, and meet stakeholders’ needs.
Recommendation
The presented case shows conclusively that the success of every family business depends on the manner in which different relatives support its course (Hao and Yazdanifard 4). Different leaders at the helm of this corporation introduced the right persons and encouraged their relatives to support the business model. As this company plans to succeed in the future, it would be appropriate for Don Graham to encourage his relatives to support every agenda and be part of it. This recommendation can address emerging conflicts and ensure that every person supports the targeted objectives.
The best recommendation, therefore, is that the corporation’s managers and leaders should implement powerful initiatives to empower every employee. This means that targeted workers should receive adequate resources and tools. They should also be trained and guided to be prepared against the changes experienced in the global communications industry (Oa 11). Every empowered employee will be willing to meet customers’ needs, collect and publish unbiased information, and make the corporation successful.
In order to support this recommendation, the leaders at the Washington Post Company should change the current business model. The proposed change should be informed by the power of modern technologies such as the Internet. By so doing, the company will be able to introduce online-based platforms for its business segments (Bravo et al. 26). Additionally, the company’s television channels should be available online. This strategy will attract more viewers and make the corporation successful.
The decision to diversify the current business model can deliver positive results. This goal can be achieved by identifying untapped market segments that can support the company’s profitability. For example, the company can start a publishing segment or introduce new products that can be accessed via the Internet. Finally, it would be necessary for Don Graham to encourage different relatives and family members to support the company (Poza 73). The strategy should echo the roles and strategies embraced by Katharine’s relatives after her husband’s death. This approach can support the company during turbulent times and make it successful.
Conclusion
This case study shows clearly that family businesses cannot succeed when different members or relatives fail to support their objectives. Competent individuals should also be allowed to lead such companies to make them profitable and sustainable. The changes experienced in the communications industry such as the increasing bargaining power of employees and customers, emerging innovations, and technological changes should inform every leadership strategy exhibited by Don. The ultimate goal, therefore, is to ensure that the company does not become less competitive or unprofitable.
Works Cited
Barnes, Louis B. Graham Family and the Washington Post Company. Case Study. Harvard Business Publishing, 1997.
Bravo, Rafael, et al. “The Importance of Brand Values in Family Business.” Journal of Evolutionary Studies in Business, vol. 2, no. 2, 2017, pp. 16-43.
Dike, Victor E., et al. “Leadership and Management in the 21st Century Organizations: A Practical Approach.” World Journal of Social Science Research, vol. 2, no. 2, 2015, pp. 139-159.
Hao, Moo J., and Rashad Yazdanifard. “How Effective Leadership can Facilitate Change in Organizations through Improvement and Innovation.” Global Journal of Management and Business Research: A Administration and Management, vol. 15, no. 9, 2015, pp. 1-6.
Oa, Ikpefan. “Leadership of Modern Financial Institutions and the Changing Paradigm of Banking in Nigeria.” Journal of Internet Banking and Commerce, vol. 20, no. 3, 2015, pp. 1-17.
Poza, Ernesto J. Family Business. 3rd ed., South-Western Cengage Learning, 2010.