Collapse of Abc Learning Centre Austrailia
Table of Contents
Table of Contents 1
1.0 Introduction 2
2.0 The Internal and External Environment 2 2.1 The Internal Environment 2 2.2 The External Environment 3
3.0 Managerial Ethics 5
4.0 Corporate Social Responsibility 7
5.0 Conclusion 10
References 11
1.0 Introduction
ABC Learning Centers, an Australian company was then run by CEO Eddy Groves and at one point was the world's largest provider of early childhood education services before the company bizarrely collapsed. The share price had dropped from a massive $8.50 to just $1.15 within a span of a year (Cohen C 2009)
The purpose of this report is to identify and critically discuss management issues at ABC Learning Centers (ABCLC) with specific focus on three areas: • The internal and external environment; • Managerial ethics; • Corporate social responsibility
2.0 The Internal and External Environment
The internal and external forces in the environment play an important role in determining Eddy Groves’s decision-making.
2.1 The Internal Environment
Every organization has a unique internal environment. According to Robbins et al. (2006, p.95), an organizational internal culture is a system of shared meaning and beliefs held by organizational member that determines, in large degree, how employees act. The following describe ABCLC’s internal environment in detail.
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ABCLC has an innovative and risk taking culture as the management of the company was innovative and risk-taking. This is understood by looking at the expansion rate of ABCLC between the periods of 2006-2007, whereby the company acquired five Group operations. Furthermore, the table below shows the growth in centre numbers of ABCLC, and it is apparent that the expansion is rapid. This shows that ABCLC risk taking culture, whereby the focus is on pressing growth.
[pic]
At ABCLC, there is also a strong sense of purpose as they have built their cultures around a meaningful purpose. This is
Table of Contents 1
1.0 Introduction 2
2.0 The Internal and External Environment 2 2.1 The Internal Environment 2 2.2 The External Environment 3
3.0 Managerial Ethics 5
4.0 Corporate Social Responsibility 7
5.0 Conclusion 10
References 11
1.0 Introduction
ABC Learning Centers, an Australian company was then run by CEO Eddy Groves and at one point was the world's largest provider of early childhood education services before the company bizarrely collapsed. The share price had dropped from a massive $8.50 to just $1.15 within a span of a year (Cohen C 2009)
The purpose of this report is to identify and critically discuss management issues at ABC Learning Centers (ABCLC) with specific focus on three areas: • The internal and external environment; • Managerial ethics; • Corporate social responsibility
2.0 The Internal and External Environment
The internal and external forces in the environment play an important role in determining Eddy Groves’s decision-making.
2.1 The Internal Environment
Every organization has a unique internal environment. According to Robbins et al. (2006, p.95), an organizational internal culture is a system of shared meaning and beliefs held by organizational member that determines, in large degree, how employees act. The following describe ABCLC’s internal environment in detail.
[pic]
ABCLC has an innovative and risk taking culture as the management of the company was innovative and risk-taking. This is understood by looking at the expansion rate of ABCLC between the periods of 2006-2007, whereby the company acquired five Group operations. Furthermore, the table below shows the growth in centre numbers of ABCLC, and it is apparent that the expansion is rapid. This shows that ABCLC risk taking culture, whereby the focus is on pressing growth.
[pic]
At ABCLC, there is also a strong sense of purpose as they have built their cultures around a meaningful purpose. This is
References: ABC Learning Centers Ltd. 2007, Annual Report of 2007, viewed on 2nd February 2010, http://www.legislation.qld.gov.au/LEGISLTN/CURRENT/C/ChildCareA02.pdf Cass B Chirac P & Torreele E. 2006, Global framework on essential health R&D, Lancet, 367, 1560–1561 Cohen C 2009, Starting a Daycare Guide, viewed on 20th February 2010, http://www.startingadaycare.com/?hop=yonatan28