Corporate Crisis - a new perspective (original) (raw)
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Corporate turnaround failure: is the proper diagnosis transgenerational response?
Strategy & Leadership
Purpose This paper provides further evidence on a thought-provoking idea, Transgenerational Response, which was previously presented in this journal. It argues that a corporate crisis event can create dysfunctional adaptive attitudes and behaviors which subsequently become embedded in the corporate culture of a firm to the detriment of its long-term performance. Design/methodology/approach A multi-method approach consisting of longitudinal content analysis of innovation and risk words in corporate annual reports and quantitative financial analysis divided the data into ‘what happened before the crisis event’ and ‘what happen after the crisis event’. Findings Case studies for AIG and Yahoo illustrate how a crisis event produced chronic financial performance and adaptive cultural responses that include a fall in innovation and an increased emphasis on risk in the years following the incident. Research limitations/implications This paper does not make claims of generalisability of the ...
Strategy & Leadership
Purpose CEO turnover and chronic corporate underperformance are examined through the lens of Transgenerational Response. Design/methodology/approach The criteria for investigating Transgenerational Response in corporations consisted of identifying a Critical Corporate Incident, the number of corporate generations and the resultant corporate financial performance. Findings The evidence presented in the case studies illustrates how a Critical Corporate Incident has produced the consequential effect of chronic financial performance in the years following the incident. Research limitations/implications These case studies have not presented the “actual” adaptive responses, inherited attitudes and behaviours that have subsequently embedded themselves in a new corporate culture, post the Critical Corporate Incident, to the detriment of the long-term health and performance of each firm. Practical implications Examining CEO turnover and chronic corporate underperformance through the lens of ...
Strategy & Leadership, 2020
Could there be a hidden cause of chronic failure in a corporation, where over many years multiple CEOs and new strategies can’t revitalize the firm after a past painful stumble? An emerging theory is that the persistent after effects of a cultural, managerial or economic trauma can cripple an organization’s serial turnaround attempts. But the conventional approach by business executives and management consultants is to treat every problematic corporate rehabilitation as a routine “turnaround case.” In fact, some organizations exhibiting chronic underperformance may actually be suffering from the residual effects of a crisis event that occurred a number of years previously. To identify such hidden trauma, corporate leaders should consider applying a thought-provoking concept from the field of Epigenetics to better understand chronic turnaround cases.
Organizational crisis the logic of failure
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Chronic corporate performance: a new perspective
Journal of Media Business Studies, 2021
This paper investigates how a crisis event resulted in the long-term decline in media-tech firm performance. The research developed an intellectual bridge and transfer of knowledge between the previously discrete fields of Strategic Management and Epigenetics. The study used a multi-method approach consisting of the critical incident technique, longitudinal content analysis of corporate annual reports and financial analysis which divided the data into 'what happened before the crisis event' and 'what happen after the crisis event'. The paper concludes that by examining failed corporate turnaround and chronic performance through the lens of epigenetics, we are better able to understand how a crisis event can create transgenerational responses which result in adaptive cultural norms that combine to consolidate corporate underperformance.
Organizational crisis: lessons from Lehman Brothers and Paulson & Company
International Journal of Commerce and Management, 2012
PurposeThe purpose of this paper is to provide a comprehensive review of organizational crisis and organizational change management and to provide a guide to crisis prevention, management and recovery by highlighting critical actions to be taken during each stage of an organizational crisis. A second aim is to compare the crisis management of two financial firms during the 2007 financial crisis: Lehman Brothers and Paulson & Company.Design/methodology/approachThe methodology involved a review of the literature and a case analysis related to organizational crisis and organizational change management. The synthesis of these two approaches is a conceptual paper. Furthermore, the article is supplemented by comparing the management of the 2007 financial crisis by both Lehman Brothers and Paulson & Company in an attempt to compare the literature findings to a global organizational crisis.FindingsThe literature suggests that organizations with early crisis detection methods and crisis mana...
Corporate Failure and turnaround-libre
This paper is a theoretical exposition into the causes of bank failure and different strategies to turn ailing banks around. It is quite timely considering the recent removal of five chief executives of banks followed by a N400 billion bailout by the Central Bank of Nigeria (CBN). Since the banking industry is the engine growth of any economy, failure in banks should not be allowed due to contagious nature of bank failures. Thus, this paper investigates into these causes and examines the different turnaround strategies that can be put in place to address such problems early enough for the purpose of taking remedial actions. This paper concludes that since turnaround strategy involves the reallocation of resources, the most commonly reallocated resource in the implementation of a turnaround strategy is management and therefore gives credence to the recent action of the CBN.
NAVIGATING CORPORATE TURBULENCE: STRATEGIES FOR MANAGING COMPANIES DURING CRISIS
Journal "Investytsiyi: praktyka ta dosvid", 2024
In the context of ongoing global crises, such as geopolitical tensions, economic disruptions, and public health emergencies, businesses are compelled to devise robust strategies to ensure their survival and growth. This article delves into the adaptive measures and strategies businesses employ in the face of crises like the Russian invasion of Ukraine, the global COVID-19 pandemic, and the persistent conflicts experienced by Israel. By integrating insights from empirical research and diverse case studies, the article underscores the critical role of agility, technological innovation, and customer-centricity in navigating complex crisis scenarios. The discussion is structured around the three key phases of crisis management-survival, recovery, and renewal. During the survival phase, businesses focus on immediate cost-cutting and resource preservation to withstand the initial shock. As they move into the recovery phase, strategic adjustments to business models and market approaches are essential, leveraging new technologies and tapping into emerging markets. The renewal phase is characterized by a focus on long-term sustainability, driven by strategic innovation and refined business processes. The findings highlight that effective crisis management requires a multidisciplinary approach, involving elements of strategic management, organizational behavior, and crisis communication. This approach not only aids businesses in maintaining operational continuity during disruptions but also enhances their capability to thrive in a post-crisis landscape. The article contributes significantly to the literature by providing a comprehensive framework for understanding how businesses can leverage crisis-induced challenges as opportunities for innovation and growth. This extended annotation provides a deeper insight into the article's content, highlighting its relevance to both academic research and practical application in the field of business strategy and crisis management. It makes clear the article's contribution to developing a nuanced understanding of how businesses can not only survive but also emerge stronger from crises.
Journal of Management Studies, 1990
This article examines six British manufacturers that have recovered from imminent disaster to create sustained and profitable growth in four mature, European industries. Their record is contrasted with that of less successful rivals. Rejuvenation was achieved by making a series of 'holistic' changes in structure, systems, process and strategy affecting the entire organization. Rejuvenation is shown to be much more than a 'turnaround', which concentrates on finance and efficiency. Innovation in 'emergent' strategies was critical and was based on chief executives' beliej.. in opportunities that could not be sustained by 'rational' strategy calculations. A model of the sequence of change is developed to show how these beliefs were translated into action. The behavioural aspects of the process highlight the importance of both the role information plays in shaping how problems and opportunities are perceived, and the ability of teams to manage the dilemmas inherent in these markets. Both attributes determine much of an organization's capacity to learn. The evidence challenges conventional prescriptions of strategy for mature firms.