How Four Rookies Ceo's Handled the Great Recession

"How Four Rookies CEO's Handled the Great Recession"

First-time CEO's, eBay's Donahoe, T. Rowe Price's Kennedy, Blue Nile's Irvine, and Molson Coors' Swinburn, knowledge and skills were certainly put to the test. The Great Recession was hard on almost everyone, these four rookies CEO's faced challenges that would require them to effectively plan, and organized good working relationship with their top managers for smooth functioning during a crisis, by developing a plan for employees, investors, and board members who looked to them for direction, while stock prices and layoffs occurred creating a unsure environment.

John Donahoe, became CEO of eBay, after Meg Whitman. John Donahoe, path for leading the online retailer eBay was completely different for Whitman's as at the time the U.S. economy was in a recession, Donahoe, in a turnaround management type of strategy which called for reorganization by creating a new vision of eBay business model.

Organizations such as eBay, that appoint turnaround CEO's are normally in a crisis, due to either poor management, a competitor introduces a new produce or technology, or the company products have become unattractive to customers.

Donahoe, reorganizing eBay company's web site, which resulted in smaller business having less visibility, laid off employees to cut expense. Donahoe, made a strategic move by cutting a deal with "Bill me Later" that offered credit to consumer's, while the economy was experiencing a credit crunch and pay pal.

Because of the changes to eBay web site Donahoe, criticism from both sides but kept saying "It's going to get worse before it gets better". Donahoe, decision was to be proactive and he improved the competitive positions necessary to meet the challenges of the economy so the company would begin to recover.

When Donahoe, came on board eBay was falling below 12 at the end of 2008, eBay's stock as a result of the changes reach a 23 high. Donahoe's, called his strategy "servant leadership" an approached which required thinking of customers first, when visualizing a chain of command though which a CEO can deliver what customers need.

Under Donahoe, leadership eBay is earning a profit, and is better positioned and continues to compete with rivals such as Craigslist and Amazon.com. Presently eBay Inc. performance in global commerce platform and payments leader (NASDAQ:EBAY) reported that revenue for the first quarter ended March 31, 2012, increased 29% to $3.3 billion, compared to the same period of 2011.

James A.C. Kennedy CEO of T. Rowe Price's, was promoted to this position in January 2007, during what has come to be known as the mortgage financial meltdown.