Examining Business Failure

Examining a Business Failure Kaira D. Carter LDR/531 January 9, 2010 Barbara Stoops Examining a Business Failure In the one-time(prenominal) 10 years, a few large business corporations see company failure because of inadequate organizational leadership and illegitimate practices of fraud, cabal, falsifying documents, and embezzlement. One business in particular, WorldCom has a categorization of being one of the biggest corporate s stooldals in Unites States history (Braun, Warder, & Zekany, 2004, p. 101). In 2001, the monetary condition of the company began to decline because of the slowing telecommunications pains, which at long last put pressure on the companys decision maker officers to increase profits (Jonesington, 2007). Unfortunately, the executive officers made decisions to commit be fraud by falsifying documents to reflect a confirmative currency flow rather than a negative cash flow. All the individuals involved plead guilty to fraud and conspiracy charges (Jonesington, 2007). The reason for WorldComs company failure is not due to poor financial conditions in the telecommunications industry, but due to the neglect of leadership, management, and organization in the company structure to solve the financial problems.

According to the article titled Behind closed doors at WorldCom, the market conditions of the telecommunications industry dropped significantly to affect not unaccompanied WorldCom, but also other companies (Braun, Warder, & Zekany, 2004). However, a prediction for the telecommunications industry was improvement within the next 5 to 10 years, which it did for approximately companies (Braun, Warder, & Zekany, 2004). If WorldCom made decisions with the benefit of the organization in mind it would mother seen improvements in the market and the companys financial statements. several(prenominal) organizational behavior theories as it relates to leadership, management, and organizational structure can explain the companys failure. The different styles of leadership and management... If you take to get a full essay, order it on our website: Orderessay

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