Case Analysis: Pinnacle Textile Industries Essay Sample

Case Analysis: Pinnacle Textile Industries



  • Loss of customers among hotels and restaurants
  • Increase in number of competitors
  • Increased number of middlemen
  • Loss of contracts

Causes of Symptoms

  • Emergence of the Internet technology
  • Reduced prices by competitors and easy entry to the market
  • Loosened market entry strategies, fear of alienation among suppliers
  • Activities of middlemen not being flexible on prices, inability of suppliers to participate in price negotiations


Common Causes of Symptoms

  • Pricing
  • Technological advancement

Primary Problem

The problem that Pinnacle Textile Industries is facing is having an egoistic, misdirected and to a great extent incompetent Chief Executive Officer (CEO) who is also not very well informed with regards to the trends taking place in the industry, in which his company is operating.

Supporting Facts

The first fact that supports the above primary problem is the CEO’s inability to develop efficient marketing strategies that will promote the company’s product as the best in the market without having to worry about competing market giants. For instance, according to O'Reilly (2007), the CEO worries about being sued for marketing his product as the best in the market. Another significant fact supporting the above primary problem that Pinnacle Textile is facing is the company’s CEO’s lack of delegation skills. His preoccupation with small insignificant details is making him not only a poor delegator, but also a micro manager. As a CEO, there is need for him to focus more on important tasks of the company that will propel the firm to take higher heights and thus leave the work with details to a responsible assistant. O'Reilly (2007) affirms that the CEO’s poor technological acumen is yet another fact that supports the above primary problem the textile company is facing. Although he desires to take advantage of the technological advancement currently taking place, the issue that emerges with this is that he is using an incorrect strategy thus threatening the revenue of the business. The final fact supporting the CEO being the primary problem is his poor skills in execution of plans and strategies meant to advance the company. Although he is able to come up with some brilliant ideas, his techniques for implementing them are weak.  

Alternatives and Conclusion

Alternative Solutions

There is a number of alternative solutions that can be used to solve the primary problem identified. One of such approaches is a development of improved marketing strategies that place more emphasis on the customer. In this regard, the CEO should start concentrating more on the clients and less on company’s threats. This is because concentrating on risks such as lawsuits from industry giants is making him shift his focus from his firm’s most essential component, the customer. Thus, by concentrating more on the clientele, their needs and preferences, it is going to be easier to develop marketing strategies that will be sharply focused on the consumers’ needs and reflect the customers’ vision.

Another alternative solution that can be used to overcome the identified primary problem is carrying out self-assessment. This will help to overcome the issue in question in the sense that it will help the CEO to understand the reason why he is unable to delegate work and why he micro-manages his team. This is because the many of the reasons why many leaders fail to delegate responsibilities are perceptual in nature originating from the individual. This will be essential in helping the CEO improve his delegation skills and thus the overall well-being of the company.

Developing improved technological acumen is also another alternative solution for the primary problem identified. This is because with today’s constant change in technology, there is a need to keep abreast with these alterations. What is even more important is the need for company leaders to be aware of these transformations so they can provide effective leadership in their adaptability. Therefore, with regard to the primary problem, the CEO should improve his acumen for technology not only to avoid lagging behind, but also to know which technology is suitable for integration in his business.

Further, another significant alternative solution that can be used to overcome the identified primary issue is development of better strategy execution skills. If the CEO does this, he will be able to oversee the strategies in a way that will ensure they are more action-oriented and will achieve the goal of problem solving and bring about positive results.

Best Solution

The best alternative solution that should be adapted for the company is improvement of the CEO’s strategy execution skills. This approach is considered to be the best because the execution of strategies has more impact on an organization compared to the other alternative options presented. Further, the negative results of this solution will be more adverse when it is ignored compared to the other alternative solutions offered.


In the provided case, there is one key player. This is the CEO of Pinnacle Textile Industries Mr. Patrick Methven as explained by O'Reilly (2007). His personality can be described as ambitious, opportunistic, family-oriented, and controlling. The CEO is ambitious because of his plans to expand his company into new markets. He is opportunistic due to his ability to take advantage of his competitors’ failures. Mr. Methven is family-oriented as evidenced by the pictures of his family in his office and his reluctance to go on business trips as it will take him away from his family. His controlling personality is supported by him doing things in the company himself. The CEO’s motivations include becoming a market leader in his industry and expanding his business to new markets. His ambitions include selling products directly to the customers and cutting out distributors and buying a controlling stake in some of the key distribution companies. Mr. Methven’s goal is to make sales of $15 million and earnings in the low seven figures, according to O'Reilly (2007).

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There is a need to find a realistic and effective way of implementing the best solution, which has been identified as improving strategy execution. This can be achieved as follows. The first thing to do in order to develop a better strategy execution approach is to identify the strategy to be implemented and the reason for its implementation. There is need to know which strategy needs to be put into effect and why it should be done. This will serve to bring about a direction towards its implementation. The second step is to identify the parties concerned with the execution of the strategy. Such parties are mostly stakeholders who will be impacted with the implementation of the strategy and also those who will participate in putting it into effect. As highlighted by O'Reilly (2007) in the article, they should be consulted on their thoughts concerning the strategy so that the execution can proceed smoothly. Such parties can be employees or other external stakeholders. This is significant in getting them to align with the strategy. The third thing to do is to identify any challenges that the strategy may face during its execution. Anticipating barriers is essential in ensuring that proper plans for overcoming them are developed in time. The final step is to identify the time frame that will be needed to execute the strategy. A proper time schedule should be developed making clear what part of the strategy should be accomplished and by when. This schedule should be followed strictly.

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