LDR/531 Organization Leadership
University of Phoenix
April 15, 2010
Business Failure Paper
This paper will discuss how organizational behavior theories could have predicted or can explain the failure of a company. Businesses face many challenges which can contribute to the growth and demise of the business, According to recent article publish in gaebler.com, 2010 most business large or small fail due to bad investment, lack of knowledge, lack of planning and so forth. Although size contributes to the damage of society due to the demise of a business small business such as mom and pop stores may show little effect due to small staff, small inventory and small investment. Whereby, large business can cause large percentage of unemployment to the country, high crime rate, and even suicide. Let’s examine a large company like Enron whom loss billion when it collapse in 2001. The collapse of Enron is known as one of the biggest corporate scandals in the twentieth century lead by greed, lack of leadership and bad investment. Employees of Enron loss their retirement saving, jobs and some even committed suicide as a result to the down fall of Enron. Enron known as the world’s largest energy companies in the United State failed due to unethical accounting techniques and poor leadership. One may wonder how this is possible with the cleaver work of chief executive officer of Enron this transformation of making Enron a financial trade company done by hidden huge amount debt and inflating earning. Companies put lots of trust in their key employees many time no question ask in their decisions. In Enron this form of one man show leadership contribute to its demise. In a well structure business everyone is consider a key employee and decisions are made to benefit every employee. In the case of Enron failed to intervene in the wrong doing of the management staffs because sales were increasing which is...