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Breakdowns of high profile organizations: Causes and Cure

Other than personal greed, what do you think has led to the ethical breakdowns in many high profile organizations? Please provide an example of a specific type of organization that could be susceptible to ethical breakdowns and what management could do to prevent such. Fully explain your answer

References should be integrated and reflected upon with your answers, as well as cited both in-text and end-of-text. Also, specific examples, real or hypothetical, should be used to illustrate your key points. Each answer should be a minimum of one and one-half pages, double-spaced, and free of spelling and grammatical errors.

This is the book: Bateman, Thomas S. and Snell, Scott A. Management: Leading and Collaborating in a Competitive World- Custom Primis Edition, 8th Ed. McGraw-Hill, 2008.

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Sony Betamax Business Failure

Back in the 1970s, video players and recorders were a fad. Betamax, a product of Sony Corporation, captured the market.
In its first year, 30,000 Betamax video recorders (or VCRs) were sold in the United States alone (Bhasin, 2010).
Having captured the large pie of the market, Betamax unethically turned a blind eye to competitors. The company was so complacent that it failed to see an emerging competition. JVC's VHS format is slowly eating up the market for video players and recorders.

Bhasin (2010) had these observations:
- From 1981 onwards Betamax-based machines were rapidly losing popular favour. In 1982, the year of the price war, Betamax VCRs accounted for a paltry 25 per cent of the entire market and the public were being warned that the selection of video rentals available for Betamax owners would be slightly smaller than that for VHS owners.
-Whereas VHS machines could record for a considerable length of time, Betamax machines could ...

Solution Summary

The solution reckons the breakdown of business organizations like Sony Betamax and Napster. It suggest ways on how the breakdown could have been prevented in the first place.