Management Planning Paper “WorldCom”
It is important that organizations include the four functions of management in order for their company to become successful. The four functions planning, organizing, leadership and control are all inter-related when planning the organization’s direction and goals. WorldCom is an organization that in the beginning had great intentions to become the leader in the telecommunications industry but because of the leader becoming distracted by greed this organization failed and has been one of the leading case studies of failed organization. WorldCom failed because of in their corporate governance irregularities, accounting abuses, and outright greed. This paper will analyze the legal issues, ethics, and social responsibility that WorldCom had to endure and also the company’s tactical, operational and contingency plan in which they chose but was unsuccessful due top-level management bad decisions.
WorldCom was develop by Bernie Ebbers who was a businessman and senior executive that was very likeable, all his colleagues knew he had the savvy to acquire companies and make them successful. According to D. Moberg (Santa Clara University) and E. Romar (University of Massachusetts-Boston) (2002), it was 1983 in a coffee shop in Hattiesburg, Mississippi that Mr. Ebbers first helped create the business concept that would become WorldCom. "Who could have thought that a small business in itty bitty Mississippi would one day rival AT&T?" asked an editorial in Jackson, Mississippi's Clarion-Ledger newspaper. Bernie's fall-and the company's-was abrupt. In June 1999 with WorldCom's shares trading at $64, he was a billionaire, and WorldCom was the darling of the New Economy. By early May of 2002, Ebbers resigned his post as CEO, declaring that he was "1,000 percent convinced in my heart that this is a temporary thing." Two months later, in spite of Bernie's unflagging optimism, WorldCom declared itself the largest bankruptcy in American history....