Analysis of How the Mighty Fall Written by James Charles Collins - Book Report/Review Example

How The Mighty Fall-Book Report "How the Mighty Fall" is a book written by James Charles Collins, also known as Jim Collins. The book was published in 2009 by Random House Business. The book is about the decline of rising business empires or the ones that suffer through crisis following a period of stable and smooth running. It sheds light on the working of an organization and how many businesses deal with economic changes by overcoming the obstacles that come in their way. It is one of the finest books written on business failures and it gives out a brief comparison on the aspect of why some companies competing in the same market succeed while others fail to flourish. Jim Collins has a bachelor's degree in the field of mathematical sciences and has done his MBA from the Stanford University. He holds an honorary doctoral degree from the University of Colorado and the Peter F. Druker Graduate school of Management at Claremont Graduate University. He started his career at Stanford Graduate School of Business but later on became a leadership teacher. Jim has been inclined towards the social and the cause driven side of the society, having worked in many social sectors such as education and healthcare. He has had the honor of serving as the Chair for the Study of Leadership at the United States Military Academy at West Point for the class of 1951. All his activities and contributions in the social sector highlight his inclination towards the leadership tactics that play a fundamental role in the industrial sector and big companies. Since, Jim Collins has been modeled in a business school environment, his literary contributions in the area of leadership development make him a very suitable person to be talking about important aspects of business and guiding people regarding business successes and failures. The book "How The Mighty Fall" is one of the finest educational publications written on business failures and describes in detail why businesses and companies competing in the same market fail at times while, their opponents flourish and reach new heights of profit. The book has divided people working in the same company into a hierarchy where the top level rules the lower level and effective communication is described as the key component in the success of the company. The top level management is involved in recruiting the working class and the working class then provide their services to the company. The top management has a vital role to play as it needs to recruit the most efficient staff. At the same time, it should also be able to make quick decisions which accounts for the discipline and professionalism in the organization. The book uses very good metaphors and examples to point out what major flaws in the companies can lead to the decline. It highlights factors that can result in crashing of organizations instead of attaining success. Collins in the book discusses various stages of the fall of a business. He points out the exact mistakes made by major companies which they fail to notice at that time but when they do, it is very late to revert back. Hence, the damage done results in dire consequences. The book also discusses the contemporary methods of business and how many organizations succeed in the present age of technology by implementing certain new ideologies. This is because with time, the business strategies and developmental sectors are changing. The author makes his point by using reports and press releases of major companies to highlight the common problems faced by certain organizations and how each one of them countered the issues in their own way. Some succeeded in tackling the issue and kept walking towards the road of glory while others crumbled to the ground because they were unable to deal with the difficult situation in an appropriate manner. Collins makes his writing captivating for the reader by writing in a continuous flow. This in turn, makes the reader want to read the book and see how major flourishing businesses declined just by making simple mistakes which ruined not only their market reputation but value as well. The book describes each stage of failure in a manner which makes even the simple non business related audience understand how major businesses fail to function properly because of the undisciplined actions which impact their competition in the market and halt their growth. The book overall lays a strong focus on the issue of business decline and how major business ideas fail to progress. It is seen that certain business ideas and companies are unable to achieve success because the mishaps they face cannot be countered in a timely fashion resulting in decline. The major strength of the book lies in the discussion provided by the author for the power of empowering. It has a whole chapter dedicated to the idea that everyone in this world is capable of doing something great if they really believe in themselves. Luck and chances do play a vital role in success but grabbing an opportunity at the right time is also what makes a winner. In the book, he has also laid emphasis on the point of not overdoing one's luck and not relying on chances only but rather an individual should create opportunities for himself. Thus, the author has explained that the roads towards success has many ups and downs and individual should learn to tackle the issues that come in his way efficiently. Also, he should be alert and avail good opportunities at the right time. Another important aspect of the book that strengthens its theme is the discussion on how the leaders and company owners fail to acknowledge the risks and dangers involved in business ventures. The author points out that in order to succeed, a company must be able to look at the obstacles and accurately weigh down the pros and cons prior to making decisions. Spontaneous decision taking is a skill that should be utilized in the best possible way by big corporate firms. It is important that these decisions should be calculated and based on thorough knowledge to ensure that it does not lead to a decline in the organization. The book is a comprehensive guide for business planners but it does have a few shortcomings. It does not discuss the steps that a company should take to get back on track when facing a major financial setback. The issue of the downfall of companies is thoroughly discussed but it does not discuss how to tackle with the downfall once it has been initiated. It does not discuss as to what major companies can do to get themselves back on the path of success. The weakness in the book lies in the fact that the author only discusses ways of empowerment and does not relate it to business strategies that may result in losses. He does not discuss how to tackle these issues in the first place which I personally think would have given an additional benefit to the readers. The writer has been over optimistic about a lot of situations and this may lead the readers to think that the positivity is exaggerated. The biblical principles lay emphasis on the power of communication and leadership skills which are harnessed through time and patience. Biblical principles explain that true leaders need to preach religion and the practical aspects of living and this message should be conveyed to the masses through effective communication. The book and the biblical principles do in fact reach a square agreement because as indicted through the Bible that people who take this path of preaching face a lot of issues and have to face many obstacles. In a similar manner, the book highlights that every major power does face difficulties at a certain point and it is through strength and effective knowledge that hindrances can be overcome. A great deal of self-discipline and confidence is needed when it comes to the area of biblical knowledge and this is also true for the working of an organization. As explained through the teachings of the Bible, one should endure failures with patience and stamina. The author has discussed a similar point with regard to companies that they should face the difficult situations coming their way with endurance and this would help them to get back on the road to success. This book does apply a lot to my current pastoral life relating to leadership skills particularly because it highlights the point that failure is inevitable but there are ways and signs that indicate a decline. If these signs are acknowledged at an earlier point, failure can be countered and tackled effectively without causing any real harm to the organization or the leader, himself. It helps in pinning down exactly the five steps of decline while making sure that the reader is aware of it. Denial plays a very important factor when it comes to the point of failure and being a youth pastor, this is one thing that needs to be my focus. One should never deny the possibility of a failure but rather one should be prepared to deal with it. With such a thinking, one would not lose confidence in periods of difficulties but rather emerge as victorious following the crisis. Another important aspect discussed by the writer which is significant for my pastoral life is the importance of right decisions at the right time. In the ministry, there are certain aspects to be kept in mind before making a decision and it is necessary that even though quick responses are good, there should be calculated moves to remain stable. In conclusion, the book by Jim Collins is a comprehensive description of business and companies that go downhill because of their inefficiency and lack of preparedness to deal with failure. The ambition to succeed is handicapped by laziness and bad disciplinary actions which damage the foundational basis of the organization and thus, makes it hard for the company to progress. It is a good read by stating out the stages of decline and highlighting how effective decision making and far sightedness can be helpful for corporate organizations. The author explains that an optimistic approach should be adopted by companies so that they can effectively deal with difficult situations. A negative approach would result in decline due to loss of confidence and decision making power. The book explains that leaders have a significant role in the success of companies. If leaders are the first ones to panic, the other employees of the firm would also lose hope and thus the company would face decline. What is necessary is a positive and on-going attitude to deal with the failures. Reference Collins, J. C. (2009). How the mighty fall: And why some companies never give in. London: Random House Business. Read More