Why Succesful Companies Fail
whyWhy Succesful Companies Fail ?
Ex : This article examines the internal and external factors that contributed to the decline of Dunlop. For much of its history Dunlop operated in a protected home market or instigated strategies to restrict competition. This enabled Dunlop to dominate the British tyre industry. The complacency and inertia of management was exposed by a number of external jolts that produced radical environmental changes. Management failed to develop appropriate strategies which led to large losses in an industry suffering from overcapacity. Plant closures and the divestment of the European tyre operations were implemented to reduce company debt. This turnaround strategy proved to be a temporary respite as Dunlop was acquired by BTR.
Culture :
It takes years to build (or rebuild) a culture, too. I outlined how organizations can do so successfully at any stage of a company’s life, and organizations with such cultures would do well to take note. As the article points out:
Zynga has made efforts to change its ways. … Still, rivals say Zynga will have to do more to bolster its image, or risk losing its appeal as an employer at a time when resources are scarce. Zynga’s towering public valuation — a boon for investors — may only further dissuade recruits, who may turn to younger start-ups with more potential.”
The article also points out ways the organization is working to turn around its culture, including manager training and coaching (from the CEO on down) on how to better motivate, inspire and engage employees. I would also strongly encourage Zynga to look at its employee recognition programs to create a more frequent positive feedback loop that relies on the appreciation and recognition of peers as well as managers.
Strategies :
In 2005, its number one position in the industry had been threatened for the first time. That was the year when, in May, Chennai-based Tractor and Farm Equipment (TAFE ) bought Eicher Motors's tractor division,
Ex : This article examines the internal and external factors that contributed to the decline of Dunlop. For much of its history Dunlop operated in a protected home market or instigated strategies to restrict competition. This enabled Dunlop to dominate the British tyre industry. The complacency and inertia of management was exposed by a number of external jolts that produced radical environmental changes. Management failed to develop appropriate strategies which led to large losses in an industry suffering from overcapacity. Plant closures and the divestment of the European tyre operations were implemented to reduce company debt. This turnaround strategy proved to be a temporary respite as Dunlop was acquired by BTR.
Culture :
It takes years to build (or rebuild) a culture, too. I outlined how organizations can do so successfully at any stage of a company’s life, and organizations with such cultures would do well to take note. As the article points out:
Zynga has made efforts to change its ways. … Still, rivals say Zynga will have to do more to bolster its image, or risk losing its appeal as an employer at a time when resources are scarce. Zynga’s towering public valuation — a boon for investors — may only further dissuade recruits, who may turn to younger start-ups with more potential.”
The article also points out ways the organization is working to turn around its culture, including manager training and coaching (from the CEO on down) on how to better motivate, inspire and engage employees. I would also strongly encourage Zynga to look at its employee recognition programs to create a more frequent positive feedback loop that relies on the appreciation and recognition of peers as well as managers.
Strategies :
In 2005, its number one position in the industry had been threatened for the first time. That was the year when, in May, Chennai-based Tractor and Farm Equipment (TAFE ) bought Eicher Motors's tractor division,