Case Study: Analyzing the Collapse of ABC Learning and Lessons Learned

This case study examines the collapse of ABC Learning, a once-leading childcare company. The analysis focuses on the internal faults, financial mismanagement, and ethical breaches that led to its downfall. Key factors include the failure to present a true and fair view of assets, inability to meet financial obligations, and non-compliance with ethical codes of conduct. The study highlights the roles of key stakeholders, including the CEO, non-executive chairman, and managers. It explores ethical and corporate social responsibility issues, such as unethical decisions, lack of transparency, and failure to maintain quality standards. The case concludes with lessons learned, emphasizing the importance of aligning stakeholder interests, maintaining transparency, and adhering to ethical codes and proper corporate governance. The study references various academic sources to support its findings.

ABC Learning Limited Collapse.
Name of the author-
University Name-

INTRODUCTION
ABC learning was once the largest listed childcare company
in the world.
Many internal faults within the company lead it to the
massive fall.
The reason of failure of company was its default in showing
the true and faire view of assets.
It failed to pay off its debts and liabilities.
It had to face ethical code of conducts and issues.

CAUSED THE COLLAPSE OF ABC LEARNING
internal faults and high penalties within the
company lead it to the massive fall.
Manipulation in the accounts and books of
company.
Failed to pay off its debts and liabilities.
Non-compliance with ethical code of conduct and
ethical business practices (De Janasz, and
Whiting, 2009).

MAIN STAKEHOLDERS IN
THIS CASE
 Its interim chief executive officer -Mr. Rowan Webb
 The non- executive chairman was Mr. David John Ryan.
 Manger was Mr. Matthew John Horton.
 Auditors and accountants
 These were the main stakeholder of the company who were responsible for
collapse (Spencer; 2013).

CASE RELATED TO ETHICS AND CORPORATE
SOCIAL RESPONSIBILITIES
 Unethical decisions taken by its managers that affected the
employees and management in long run.
 Failure to maintain the transparency and legal compliance.
 Not employing the quality standard staff.
 Intensity, individual culture, structural variables and
organisational culture were the major factors (Ni, and Van Wart,
2015).

LESSON LEARNED FROM ABC LEARNING
COLLAPSE
• NO company could survive without aligning the
interest of the stakeholders with the organizational
development.
• Company needs to maintain the transparency in
the busienss process.
• Complying with the listing rules and ethical code of
conducts is vey much required to sustain the
busienss (Francis, and Zheng, 2010).

CONCLUSIO
N• Failed to observe proper standards of skill,
Professional care and competence.
• Company should have maintained effective
corporate governance.
• ABC gave a learning that grand vision should not
distract and made default in keeping the busienss
transparency.

REFERENCES
Spencer, J., 2013. ABC of learning and teaching in medicine: Learning
and teaching in the clinical environment. BMJ: British Medical
Journal, 326(7389), p.591.
Ni, A. and Van Wart, M., 2015. Corporate Social Responsibility: Doing
Well and Doing Good. In Building Business-Government 62(5), pp.52-
59.
Francis, J. and Zheng, C., 2010. Learning vicariously from failure: The
case of major league soccer and the collapse of the North American
Soccer League. Group & Organization Management, 35(5), pp.542-571
De Janasz, S.C. and Whiting, V.R., 2009. Using service to transform
learning: re-scripted ABCs for our changing environment. International
Journal of Organizational Analysis, 17(1), pp.60-75.