Examining a Bussiness Failure Research Paper Example | Topics and Well Written Essays - 1000 words

Examining a Bussiness also-ran - Research Paper ExampleThe present study would try to analyse the arrangingal behaviour aspects that could be interrelated with the companys failure in the recent years. This would include an analysis of the aspects of centering, leadership as well as geological formational structure towards the unfolding crisis that occurred in the organization. Leadership Leadership is perhaps atomic number 53 of the main drivers of a business. A business essentially thrives on the aspect of the vision of the leader of the organization. one of the main reasons for the crisis situation at Enron can be held accountable to the im graceful leadership of the organization. The lack of proper vision of the companys leadership can be traced to the fact that its CEO Jeffrey Skilling resigned from the company that was scarcely beginning to see the light of the crisis situation. Another interesting fact was that the CEO while putting tear down his papers did not cite re asons for resignation which reflected the negative mindset and lack of leadership skills of the leader of the organization (Jickling, 2002, p.2). An effective leader in this case could experience saved the organization from the crisis that has led to the eventual declension of the company. An effective leader should have realised the malpractices in the company and should have taken corrective measures and should have displayed visionary traits that could have saved the organization. The role theory of leadership states that leaders must act in a manner so as to set goals for others (Changing Minds.org, 2011). The case at Enron reflects a bad visualize as the leader displayed complete lack of responsibilities as he left the firm when it was in the thick of a severe crisis and set a very bad role example. Management The heed of an organization comprises of the top heed board including the top shareholders and the top executive management of the company. The poor state of managem ent of the organization can be easily identified from its actions as the top management reflected its existence further on paper. The management indulged in corrupt malpractices that ultimately led to the downfall of the organization (Worldlink, 2007, p.2). The top management of the organization defected from its basic responsibility of ensuring compliance in corporate management in an attempt to nourish the interests of the existing shareholders of the firm. The top management showed a complete mismanagement as it catered the CFO of the organization to allow him to do private based partnerships for undertaking business with the organization that was largely against the basic rules of corporate governance. The management of the organization was largely selected through internal preferences where the executive management had a final say. Independent directors largely acted as puppets of the top management of the organization that largely defeated the basic purpose of having indep endent directors on the board of an organization. Enron should have followed the corporate governance ethics and the management should not have been allowed to have a say on the appointment of independent directors. If the company had adopted a democratic and impartial weft of the independent directors, then the malpractices would have been identified long before and would have