A new book written by Professor Emeritus of INSEAD- Yves Doz- titled Ringtone: Exploring the Rise and Fall of Nokia in Mobile Phones, charts the peak and eventual decline of the Finnish giant. But more than Nokia, this book is about learning from the past mistakes, so they do not repeat for others. The world of business I replete with stories of once dominant companies that fell by the wayside or even closed down. Besides Nokia, another famous case is that of Polaroid. There are three main reasons attributed for the usual company failures. The most commonly cited one is poor leadership from the very top of the CEO level. The next one is about any firm’s processes, structures, business models and its very corporate strategy. The third one is about companies failing to respond to rapid structural changes in the macro environment. The management choices made and organization structure adapted are what can help any company avert future disasters. Likewise, they need to find ways to weather the worst of storms.

Source:https://knowledge.insead.edu/strategy/why-successful-companies-usually-fail-10001

Uploaded Date:15 September 2018