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Jackson and Sparks (2002)Management > Crisis Management > Lectures > Independent Research > Jackson and Sparks
Jackson and Sparks (2002)M&S used to be hailed as one of the most admired companies in the world, but now it is in dire straits. “We define crisis-failure as an event or condition (or a series of events and conditions) that could lead to severe market erosion”. Causes of organisational failure have two perspectives: Industrial organsation and organisational studies.
Industrial organisation (IO)IO theorists argue that fault lies with the external environment and the firm is helpless and blameless. Causes include changes in demand structures and competition. Organisational failure is part of the natural order of things. Lifecycle theory dictates that firms move towards death, like all other organic and dynamic forms. In retail there is a cycle of development and vulnerability, where once mature and strong companies are overtaken by leaner, more productive firms. Hollander (1960) refers to this as the “Wheel of retailing” The concept of the “Wheel of retailing” also refers to the management’s separation from consumer tastes, as well as the external environment.
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