Chosun Ilbo Weekly Biz
One of the most starling facts about modern management is the speed in which the companies go bankrupt. The jokes around this particular management phenomenon is that it is similar to a diet. It takes a long and arduous process to lose weight but it only takes a few days to gain weight. Similarly, we have seen many companies who have built years and decades to be in that position but disappointingly only to find out that it takes a very short moment and a few mis-stpes to derail themselves into a perilous position.
Interestingly when we look at all bankrupt companies, over 70% of the companies failed in their non-core businesses. In other words, it is rare that we see companies go bankrupt because they have failed to maintain or defend own backyard. It is the adjacency and growth vectors where they have failed to marshal right resources and provide proper attention and thus cheatingly a major disaster for the core business and eventually the whole group.