Marigold Servers, a web services firm, has experienced a 7% decline in revenues in consecutive quarters. In an effort to reduce operating costs, managers reduced the customer service staff from 12 employees to 6. Management also enlisted the remaining employees to help produce a new company vision: to give customers of all budgets a customizable, stress-free web hosting experience. What is wrong with this scenario?
A) Marigold's vision is not customer-oriented.
B) Internal stakeholders were not invested in defining the vision.
C) Marigold's organizational structures do not align with the vision.
D) Marigold's vision is not aspirational.

Question

Quizplus · Accepted Answer

A positive relationship between vision statements and firm performance is more likely to exist under certain circumstances: if the visions are customer-oriented, if internal stakeholders are invested in defining and revising the visions, and if organizational structures such as compensation systems are aligned with the firm's vision statement. By eliminating half of its customer service staff, Marigold has severely reduced its capacity to address customer needs. This new organizational structure does not align with the vision to create a stress-free web hosting experience for customers.

Marigold Servers, a Web Services Firm, Has Experienced a 7