Failure Analysis

Business Failure Analysis Name Course number Professor’s name Date Identify each organization’s objectives, vision, and mission Stanford Financial Group failed in 2009 and was taken over by the government. This owed to fraud related crimes that the company was found involved in. Amazon.com is a successful company and international retailer that focuses on online services. Stanford Financial Group used to focus on providing a variety of advisory and finance related services and also provided services related to insurance. Amazon focuses on addressing the needs of the customer in the best way possible by providing all the products and services required including those in digital format. Amazon has managed to build its brand worldwide and attain a significantly large customer based in comparison to other international online retailers. Determine the indicators of the business failure and success from research Stanford Financial Group collapsed owing to integrity related problems. Four of its entities namely Stanford International Bank Ltd, Stanford Group Company, Stanford Trust Company and Stanford’s Capital Management were the primary units that propagated the fraudulent criminal financial activities leading to the group’s failure (Publicintelligence, 2009). Allen Stanford leadership style was a strong indicator of the company’s failure because his board mainly consisted of his friends and relatives (Goldstein, 2009). He failed to select the board based on competence but he did so based on personal grounds indicating poor leadership and a flawed leadership structure that stifled communication. Amazon on the other hand has been on the success path owing to its divisional structure that allows the different leaders to concentrate on maximizing quality of services in their respective areas. The CEO oversees the Chief Financial Officer who in turn oversees other departmental heads to get information that is vital in financial decision making (Guillaume, 2013). This type of structure encourages open communication and transparency in the company and is a primary indicator for its success. The structure of the organization is another indicator that has allowed the company to capitalize on the primary areas such as customer service and product development through innovation. Amazon focuses on innovation to create new platforms like apps that address its customers’ needs. Amazon has for instance developed apps to cater for the readers and writers community (Ross, 2013). Its management also consolidated digital rights to allow online publishing and this has enabled the company to dominate the market. The company is continuously exploring new business ventures and ways of meeting every need of the customer. Describe how specific organizational behavior theories could have predicted or explained the company’s failure or success Organizational behavior theory is important because it offers companies the framework for implementing changes in the management and leadership structures. The changes are important in addressing certain inadequacies in behavior of certain leaders within the organization such as in the Stanford Financial Group case. Integrity is a critical aspect in management that the group largely failed to observe. The classic organizational behavior theory recommends open communication and punishes fraudulent activities (Pomsuwan, 2007). The theory would have predicte...