Failed International Business: Swiss Air ( Germany) Essay
This article discusses the failure of Swissair by analyzing the financials of the company prior to the year 2001 when the company became grounded. It begins by giving the company’s profile and its history from establishment in 1931. The paper highlights the company’s successes and gives a table that shows the gradual increase in the number of fleet, employees, revenue, cities served, and the break-even load factor from 1931 to 2000.
The paper goes ahead to explain the reasons why the company failed to consider the alliance strategy that was commonly used …show more content…
This article carries out an in-depth analysis of the 100 largest organizational (including Swissair) crises of the recent years, giving a mutual logic behind these crises. It analyses the trend in growth, change, leadership and organizational cultures of these companies and notes that perhaps the rapid growth and having too powerful managers could have led to the failures. The paper used research based findings to illustrate the managerial behavior and practices that ought to be avoided to prevent failure such as that witnessed in Swissair. In addition, an analysis of internal factors such as the burnout syndrome, excessive growth, uncontrolled change and autocratic leadership, together with the external factors that may lead to company failure such as the role of market are discussed.
Nutt, P. C. (2002). Why decisions fail: Avoiding the blunders and traps that lead to debacles. San Francisco: Berrett-Koehler.
This is a 332 page book that is intended for the middle-level and upper-level managers of both profit and non-profit organizations. The author is a Management Science and Public Policy professor. The book has several case studies of failed businesses and the analysis of such cases. The psychological and political aspects of leadership are well covered in the book since they are the determinants of decisions by the managers. This book gives a practical