Poly Peck International Case Study Answers

Poly Peck International Case Study Answers.

1. Advantages:

The advantages of letting the decisions to one persons that he is not escaping from their responsibility. He save the time, energy, and money and he take logical decisions generally. The individual has responsible and accountable for what he is doing. While he is making decision he use his own intuitions and views. He will not take consideration of every member’s interest. The decision of individual is implemented directly. His decision is more focused and rational. He can take decision quickly. There is no need of hierarchy while the decision power is with one person. He is taking the right decisions if he is not so he will be responsible for what he is doing so because of that he taking the right decisions.

Disadvantages:

When the decision power is with one person so there is no check and balance on them for what he is doing. He has full right to use his power on employees and take the decision for the benefits of himself. He doing blunders in the company and hire the staff for his benefits. Because there is no one to ask him that what are you doing. See the case of the PPI company that the CEO Asil Nadir doing a lot of blunders in the company. One of the Nadir blunder is that he purchase the Assets on his own name and done a lot of transactions.

2. In this case I blame the poly peck international company because they borrowed well beyond from their capacity. The company had over 100 million pound lend short term credit for the short fall of cash and for more credit they give share as a collateral to the bank against the loans. With loans they also issued the shares.

3. The lesson which I get from this case is that if you give the responsibility of all things to one person so there must a check and balance on them. Because if there is no proper check