Examining a Business Failure Research Paper Example | Topics and Well Written Essays - 750 words

Examining a Business Failure - Research Paper Example The problem that could have been predicted was the lack of coordination among the different arms of the company and the expected results at a time when the company was under a lot of pressure to perform and match up to its main competitor, General Motors. With this in mind, then decision-making and leadership would have played a crucial role in ensuring that the company knew what was coming in terms of expectations of success or failure. In addition to decision-making and leadership, the company was also shifting from one tradition of centralization, where all the decisions were made in one place, and by one person, to a system that allowed each branch to make its own decisions. The decision-making and leadership theory would have allowed the leadership of the company to see that the former director micromanaged the whole company according to his wishes and expectations. As a result, decentralization of the company’s command led to loss of communication between central managem ent and the subsidiaries as their managers were expected to make their own decisions. The explanation for this is the breakdown in communication and lack of anticipation for future developments in terms of making changes in organizational behaviour without feasibility study, but based on the management structure of another competitor. The bureaucracy theory can also be applied in the failure of Chrysler LLC in relation to predicting its potential failure and explanation for its failure. This is evident in that micromanagement of the company stands for s a non-standard form of bureaucracy, where the manager decided everything to be done in Chrysler LLC. This is to mean that nothing could take place without his knowledge, and the director who followed the founder of Chrysler LLC made the decisions and issued them as directives, where there was no order to feasibility. The director became the final authority directing every step of the company to an extent of reverting to the centraliz ed management style that had been discarded for the decentralized style. Bureaucracy could have predicted the eminent failure by the director’s impulsive directives to match the needs of the market and carve a name for themselves to overthrow General Motors (Sheppard, 2001). The main cause of failure in Chrysler LLC can be attributed to the organizational structure and management, where the largest portion of the blame lies with management. This is because the management failed to consider most of the factors, especially the long term, which is in its mandate to ensure that the company’s long-term goals are taken care of to an extent that, predictions into the future of the company can be made. In addition, the management contributed the largest part in the back and forth struggles to change the organizational structure, where the organizational structure is sucked in as a contributor. Organizational structure caused the failure of Chrysler LLC by losing grip of the le adership structures such that leadership was concentrated on a few people

Economic Crisis in Greece and its Impact on the Euro Essay

Economic Crisis in Greece and its Impact on the Euro - Essay Example The levels of debt and shortfalls surpassed the limits that have been set by the euro zone (CNN). As per the Euro is concerned, since its introduction in the year 1999, its value had declined substantially against the US dollar, as well as certain other currencies. The flaw was to a degree credited to outflows of capital from Europe. However, by 2007, the euro was valued at 53 percent higher than its value that was in 2001. The high interest rates in Europe in comparison to US interest rates had triggered the rebound of the euro, and attracted inflow of capital into Europe (Madura, 167). The report conveys a detailed study on the economic crisis prevailing in Greece and its impacts on the Euro. Background to the Crisis: The euro zone was incepted in the year 1999, and several independent states forsaken their own national currencies in support of a universal currency, the euro. The euro was mainly adopted because a number of advantages were expected to get bestowed by the monetary un ion on the countries that participated. Countries like Greece, which generally have high inflation, the adoption of euro could benefit by lowering the inflation and the nominal interest rates as well. Lower inflation rates encourage greater borrowing and lending, decreases the possibility of competitive devaluations, introduces a common measure of value across countries thus bringing transparency in competition across countries, and also reduces risk by eliminating exchange rate fluctuations. These advantageous features of a common currency subsist till price stability is delivered by the central bank of the monetary union and is plausible. In the case of the euro zone, the European Central Bank had rapidly recognized its anti-inflation recommendations and became credible (Provopoulos, 1-2). In spite of the above mentioned advantages, there are certain costs relevant to the adoption of euro as the common currency. A country joining the euro zone becomes incapable of setting its own domestic economic policy. Also, it no more possesses the ability to alter the nominal exchange rate of its currency. Low financial discrepancies and resilient labor and product markets is particularly important in the euro zone. The euro zone does not have a fundamental economic power that can restructure economic properties from a low-unemployment area to a high-unemployment area to lessen the consequences of unbalanced distress. Also, owing to differences in language and culture among the different countries in Europe, labor is more mobile in the United States than in here. Hence, regulation systems are required for the euro zone at a national level. Lower economic inequity and elastic product and labor markets offer mechanisms to ease the modification to alarms (Provopoulos, 2). The Greek Economy 2001-2009: With the entry into the euro zone, the Greek economy seemed to enter a new period experiencing strong development and low price rises. The changes brought about in the economi c environment with the adoption of the euro provided crucial benefits for a country like Greece that had experienced constant budget deficits, and high inflation rates levels from the early-1980s till the mid-1990s. However, along with the advantages, long term