The case study represents various issues that led to the failure of Aussieco, which is an Australian company involved in the production of computer controlled mechanical hardware. In 1980 the company owned 90% of the Australian market; however due to many problems in the organizational strategy of the company it is now in a possession of 60 % of the market. The major problems that led to this consequence included lack of motivation, lack of control of the employees, lack of organizational environment, need of efficient leadership, which ultimately escalated to the low quality of the final product.
The first problem that should be taken into account is the hierarchical level in the company. As it can be observed, the chairman is the owner of the company despite the fact that he was not involved in the daily routine. His dictatorial attitude and autocratic leadership led to lack of relationship between him and the employees. If Fiedler’s theory (Huczynski & Buchanan, 2007) for evaluating the characteristics of a leader is considered, it can be observed that he scores low on LPC (Least Preferred Co-Worker) as he did not respect any of the employees’ opinion and they became his enemies if they proved that something was not going well for the company. The executive managing director was his nephew. He emerged as a leader because of his qualifications from university and due to the fact that this position was created for him. However, his lack of experience was probably one of the reasons for the failure of the company. Moreover, in the situation when there was an order from the company for a sufficient amount of money, he was not at his work place but playing golf. His ignorance and unawareness almost certainly led to the unsuccessful policy of the company.