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Learn from Failure and Success of a Company

March 7th, 2010

We can learn from failure and success of a company. Executive hubris causes the collapse of one of the company. In 2002, already known to the collapse of Enron, oil companies, because executives disgusting behavior of employees by firing employees en masse, but behind it was reported the company was still able to find funds to finance the $ 200,000 luxury box at what was once called Enron Field. Polaroid Company, reported to cancel retiree health benefits, retired before the company’s petition, reported management instead petitioned the bankruptcy court to be allowed to give $ 19 million in bonuses to executives in order not to leave the company. Likewise, companies that pay Webvan CEO which resign himself with $ 375,000 annually for life, before the company ceased operations are to lay off employees. Thanks to the incidents publicized uproar about executive greed and arrogance, Americans no longer believe in the big companies to new levels. America’s New Economic and promising era of new prosperity is not limited. But it was groundless, Mark Ingebretsen writes in his book Why Companies Fail: Strategies for Detecting, Avoiding, and Profiting from Bankruptcy
“Many top executives tend to establish the distance to the front lines. The bigger the company, the more likely the top executives lose contact with the front line. This could be the single most important factor that inhibits the growth of the company “says Jack Trout. The experience of the failure of the world’s top executives can be used as a very valuable lesson and we do not repeat again. But instead, founder Sam Walton as Wal-Mart, with a modest and humble to visit the front lines (salesman) of every Wal-Mart stores throughout his life. Sam Walton’s leadership style is close to the employee coloring corporate culture of Wal-Mart today. In 2003, Wal-Mart was selected as number one company of the most amazing world, Fortune magazine. More information can be found in the book The 10 Rules of Sam Walton: Success Secrets for Remarkable Results

Categories: Management Life, Money Management

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