Written Assignment 1 News Analysis Analyze news from a global newspaper (Financial Times, Newsweek or a similar one) delivering a report that could be useful for your company to take a managerial...

Why Companies Crash
By – Richard Gerofsky
Issue in the article
With the increasing downturn in the market as well as increasing competition in the
market, the share prices of the companies are slashing down and the companies are going
bankrupt. It is important for the companies today to have a strong focus on different strategies
as well as growth so as to have a competitive edge in the market as well as retaining
themselves in the competitive world.
It is important for the companies to have a strong business model along with focused
goals and strategy to do the business. The company needs to have a strong focus on having a
well convinced and implemented strategy to attain a competitive edge in the business.
There are different issues that are being faced by the companies because of which the
companies crash. These issues pertains to softening orders, diverse quality and delivery
issues, restrictive workforce and employee dissatisfaction, lengthening cash cycle, and
increasing margin pressures. These are some of the major issues that the company needs to
take care so as to have a competitive edge in the market and to sustain the competition in the
market.
As per the survey conducted, the companies are quite worried about their ability to
sustain the growth, many companies have witnessed a great decline in the growth rate
because of their inefficiency to sustain the growth and handle the complexity faced in the
operations of the business. The company faces different issues pertaining to organizational
misalignment i.e. the ability of the company to manage and align their assets so as to meet the
changing market needs and preferences. With an adequate alignment the company is able to
sustain else either the companies level off, slow down or crash.
Evaluation
There are several misalignment which are faced by the companies which result in the
demise of the companies, these includes ineffective human resource practices particularly the
compensation model, inappropriate organizational structure and vague and ineffective
business goals and strategies. ...