Top Companies That Failed to Sustain Due to Project Management
Poor management can severely shake the business even leading to the permanent closure of the enterprises.
How do you know you are suffering from this? Are you facing low productivity, a toxic working environment, and inability to keep up with the latest technologies? These are some prevalent signs of ineffective management.
Management methods can decide your company’s fate. Thus, it is crucial to learn about leading companies who failed to realize the same.
Here are some companies that once ruled but could not sustain because of failed management.
Comet
Comet was a UK electrical retail company that sold consumer electronics, white goods, and related goods and services.
The company, which had 6,000 employees and more than 200 outlets, was the second-largest electrical retailer in the UK. The issue was that Comet, like the majority of other conventional electronics stores, failed to adapt to the changes and they didn’t put customer service as a priority.
By December 18th, all shops and their stock had been closed and liquidated.
Northern Rock
Northern Rock was the biggest financial institution in its native region of the Northeast, and one of the biggest retail banks in the United Kingdom. It ranked in the top 15 among the UK’s retail banks.
They had major flaws in the legal framework controlling bank failures, and supervisory failures. Along with rapid loan issuance, the company resulted in a significant loss of deposits that needed to be covered by reserves sourced from elsewhere, and ultimately the company went bankrupt.
Enron
Enron Corporation was an energy, commodities, and services company based in Texas. The company employed over 20,600 people and reported revenues of almost $101 billion in 2000.
The collapse of Enron was caused by a number of things, including unethical accounting methods, the ineffectiveness of business watchdogs, and other things.
The corporate management misled the board of directors as well as applied pressure on the auditors to obliterate, delete, and hide any proof.
Woolworths
The Woolworths Group was a publicly traded corporation that offered consulting services, general merchandise, internet data analytics, and retail sales of supermarket goods.
The company was based in Sydney and had 198,000 employees under them. Poor management, a subpar customer experience, a rapidly changing retail landscape, technology, and the circling vultures that were the bargain pound stores all contributed to Woolworths’ failure.
Refco
Refco was a financial services firm based in New York City that specialized in trading commodities and futures contracts. The company was the biggest broker on the Chicago Mercantile Exchange, with over $4 billion in over 200,000 customer accounts.
The company went bankrupt and it has more than $900 million in debts and bogus bonds. In October 2005 the chairman and chief executive officer concealed $430 million in bad debts from the business’ auditors and investors and consented to take a leave of absence.
There are ineffective managers, and they may struggle to connect with and motivate their employees. Additionally, subpar managers could be unable to balance budgets, boost income, or competently handle other vital jobs. A right management serves as the foundation of any business and is responsible for making sure everything works properly and fully determines the fate of a business.
Are you worried about becoming a victim of poor management as well? Reach us at SubcoDevs, our experts are here to execute your dreams in the best way possible.
