Why do companies so often STUMBLE?

Question

Many successful companies have incurred huge losses when they have entered new markets, brought out new products, formed new alliances, or merged with others.

Answer 1

They have not done their due diligence when it comes to evaluating risk and reward. Too often they look at all the positive potential and seldom thoroughly investigate the negative issues that can affect them. They do not instill proper risk management techniques and they do not have proper indicators established that tell them when things are going astray.

Proper business plans need to look at every negative opportunity that could potentially happen. The people involved are usually trying to sell the positive aspects. I would suggest that they spend more time on looking at the negatives and when the positives appear this would be a bonus.
Remember any manager can manage effectively when times are good, great managers can manage effectively in times of crisis.

Answer 2

Synergy missmanagement. Same question can be applied to most marriages. Everyone goes in thinking this is the greatest thing ever.. and that everyone is upfront about what is going on. Unfortunately in both cases when the honeymoon is over and people find out what they realy got.. they feel they have more or less than what the bargained for and certainly it will be hard to recoup the loss. Weather it is going into a new market.. or merger with a similar company.. Often times.. the fine print is what makes the company stuble. Rarely the big details.. the small glaring nagging little issue when not address becomes the major problem Look at HP... they are having and investigation in to the investigation of the board investigation.. HP was my favorite company before merging with compaq... now... well.. Thier board and mgmt team.. can speak for themselves..

Answer 3

It is news to us.

Pl keep on sharing.

Bcos copanies did not take a test/taste of the products and cultures.