Reasons for the Failure of Carillion: A Project Management Analysis

Project Management Leadership and Skills:
Planning and Control

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Analysing reasons for the failure of business..............................................................................1
Use of theory and examples.........................................................................................................1
Recommendations and Conclusion..................................................................................................3
REFERENCES................................................................................................................................4

INTRODUCTION
Companies focus on gaining maximum profit which is possible when they perform their
set of roles in an effective manner (Kerzner, 2013). It is important to make sure that all the
requirements or set of roles that have to be played by them are performed efficiently. Present
report is focused on failure that took place by Carillion as per given in the provided case. It is a
British multinational facilities construction and management services company with having
headquartering in the UK. There are many set of issues that were faced due to which firm was
not able to attain their set goals and objectives. This report covers the main aspects that went
wrong. Further, it makes use of theories related with the nature of project and organizational
structure.
Analysing reasons for the failure of business
There were different types of issues faced by Carillion due to which the total market
share fell up to 70%. These are given as below:
Cash flow problem: In order to perform any type of activity, it is required to make use of
finance so that all the activities will get completed in an effective manner. The firm need to who
will be the sources through which finance can be raised (Burke, 2013). When there is availability
of finance, then proper planning is required to be made so that firm will be able to understand the
requirement of cost which would be incurred for each activity.
Lack of manpower: To conduct all activities properly, it requires to have proper support
from the side of employees so that they will be able to make sure that all activities will be
performed effectively and efficiently. Employees have certain set of skills and capabilities, it
requires management to understand them and divide the work accordingly. There is speculated
time period that was set by the management in which all activities are needed to be completed.
However, it was identified that cited firm faced issue in relation with shortage of materials or
stock.
Use of theory and examples
There are many types of theories that can be applied by business so as to make sure that
they are able to complete the given task. In this context, it consists of project management theory
in which it includes three different type of aspects that needs to be properly planned by the
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