Examining a Business Failure

EXAMINING A BUSINESS FAILURE Examining a Business Failure University of Phoenix LDR/531 January 10, 2010 Instructor: In a shock to the financial world, Lehman Brothers announced that the Multi- meg dollar brokerage truehearted firm would file for Bankruptcy. It was an announcement that stunned clients, employees, s spr egressholders, shareholders, and the general public. Shares dropped crisply after the announcement was made that the company had suffered a $3.9 billion loss. In an interview with National Public Radios (NPR) Steve Inskeep, Lawrence G. Mc Donald an insider at Lehman Brothers, revealed that the failure of this giant Brokerage firm resulted as a result of 24,992 people striving hard, devising money, and about eight guys losing it (2009). The failure was caused by bad leadership and mismanagement at the highest levels of the company. The colossal failure of Lehman Brothers was as a direct result of leaders and managers neglecting their basic responsibilities. Yukl states, when mangers make all-important(a) decisions, they should seek input from people at different levels of the arrangement because managers need to receive valuable support and authorization which stinker enhance the decision making process.

Although the concluding decision rests with the manager, inputs from subordinates, peers, and superiors good deal be tremendously important in making final decision on an issue (Yukl, 2006). Todays managers should take this to heart when confronted with tough decisions. Although managers are expected to sought out issues, and ultimately resolve them, it is imperative that mangers do not retreat themselves from the rest of the organization to such an extent that subordinates feel spaced in the process. In the Lehman Brothers catastrophe, there were key people, about eight, who relieve oneself been blamed for the downfall of that company. However, the role of the Chief Executive policeman (CEO) in the demise cannot be overstated. The incompetence that has been cataloged in a... If you indispensability to get a full essay, order it on our website: Ordercustompaper.com

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