Ldr-531 Week-1

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Category: Business and Industry

Date Submitted: 09/28/2010 12:29 PM

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Examining a Business Failure – WorldCom

I am writing my paper on a failure that has occurred in WorldCom company. This paper will compare and contrast contributions of leadership, management, and organizational structures to the failure. Organizations are liable for the legal, social, and ethical issues that have an effect on every stakeholder inside the company. These factors constantly impact the development process executed at all levels of management. An organization that ignores to establish and look over plans can grow to be disordered and eventually lose control of practices executed within the corporation. A primary example of poor preparation because of ignorance and disregard of legal, social, and ethical issues were the executives working at WorldCom.

In July 2002, WorldCom, the second best long distance provider, had filed for bankruptcy. This bankruptcy was the biggest ever in the United States history. “WorldCom, crushed by its $41 billion debt load, made its filing in the Southern District of New York. With $107 billion in assets, WorldCom's bankruptcy was the largest in United States history, dwarfing that of Enron Corp. The Houston-based energy trader listed $63.4 billion in assets when it filed Chapter 11. “(Luisa Beltran, 2002). A former CEO of WorldCom, Bernard Ebbers, was the one that co founded WorldCom into one of the leading communication providers in the world. “In 2005, he was convicted of fraud and conspiracy as a result of WorldCom's false financial reporting, and subsequent US$11-billion loss to investors. He is currently serving a 25-year prison term at Oakdale Federal Correctional Complex in Louisiana.” (Wikipedia, 2009). In 1998, Bernard Ebbers bought a second largest telecommunications company named MCI and merged it with WorldCom. For a very long time WorldCom was successful at achieving it’s mission, until July 2002 when it had filed for bankruptsy.

WorldCom had failed to plan successfully the...