Management Consulting - Essay Example

Case Study: Go Global Case Study: Go Global A number of common causes of business failure are evident in Go Global Case. These causes of business failure have solutions, which would have helped avoid them. Common causes of business failure evident in the Go Global Case The dysfunction and breakdown of the partnership between the founders is one of the common causes of business failure that can be identified in the Go Global Case. Schuyster and his partners bore the direction and vision of Go Global, and when they fell apart, the company’s future was stifled.

Lack of respect for customers and employees was another cause of business failure in Go Global Case. Customers who do not feel esteemed by a company cannot develop loyalty for it and will probably deflect to other companies. The employees of a company are important because they implement the plan and strategy of an organization helping it to realize profit and achieve its goals. Schuyster undermined this when he mistreated his employees. Excessive and uncontrolled personal spending is another cause of failure in Go Global Case.

Schuyster used took the company’s money to buy personal property and fund his extravagance. This took the money that would have gone to paying loans and other company expenses including taxes. This was evidence for poor financial management and ineffective accounting (Go Global Case Study, class notes 1). How these causes of business failure could have been avoided The dysfunction and breakdown of the founders of Go Global would have been avoided by using alternative dispute resolution methods in settling whatever the difference that arose between them.

For example, the founders would have opted to invite the intervention of a mediator who would help them to negotiate for an amicable deal. To avoid the lack of respect for customers and employees, there was need for proper communication channels. Customer complaints should have been directed to the customer relations department and not the management. The management, Schuyster in particular, would have esteemed their employees if there were clear policies that protected their rights. Conducting regular auditing would have helped avoid excessive personal spending.

The external auditors contracted should be independent in order to conduct objective assessment and give accurate feedback. Separating personal life from business for example through setting definite salaries for everybody including the top management of the company would have prevented the use of company funds in personal projects (Longenecker, 2012). Advising Dirk Schuyster As Dirk Schuyster’s consultant, I would have advised him to seek anger management therapy. I would have underscored to him the need to spend quality time and resources in such an initiative because it is an element of personal development, which improves leadership.

I would have advised Schuyster to research and survey market sectors that were potential investment destinations before extending his business into them. This would have helped him to avoid making losses when his competitors overshadowed his success chances in these sectors. I would have encouraged Schuyster to embrace accountability. With accountability, he would have desisted from mistreating both his employees and customers because he would consider that this undermined the success of the company (Nieuwenhuizen & Erasmus, 2007).

Finally, I would have advised Schuyster to differentiate roles in his company so that he would have taken care of matters of company policy and decision-making and left the management of the employees to the human resource management. ReferenceLongenecker, J. (2012). Small business management: launching and growing entrepreneurial ventures. Mason, OH: South-Western Cengage Learning. Nieuwenhuizen, C. & Erasmus, B. (2007). Business management for entrepreneurs. Cape Town: Juta. Unidentified author.

Unidentified date. Go Global Case Study. Class notes.