Free Essay

Borders

In: Business and Management

Submitted By Nieciy
Words 814
Pages 4
Many people want to be successful and in order to do that one has to know what it takes to run and lead a business and its people. Leader and management seems to always focus on the big picture and forget the little steps it took to put the picture together. It is all those little steps where one thing can go wrong and affect the company as a whole. It is best to know ever area and tools in leading, managing, changing and empowerment that will help overcome the issues that could affect the company, however; in many cases no matter what is to be done business can fail and falter. It is in how the people learn their errors that will help in the next turn of successes.
Borders Group, Inc. was one of those companies whom were not successful in the business world. First founded in 1971 in Ann Arbor, Michigan by Tom and Louis Borders felt that their look of books would be transfer to the many people of Ann Arbor. The former Chairman and CEO Mike Edwards and former President Scott Henry were optimistic as well of this retail bookstore to grow and make money. With the idea of growth, Borders grew to 511 superstores in the United States by January 30, 2010 and 175 Waldenbooks Specialty Retail, which is subsidiaries company seem to show things were going good, Non the less in February 16, 2011, Borders applied for Chapter 11 bankruptcy. What could have happened in the short 40 years that would make this company lose it all? Even the mission and vision statements of Borders Groups cloud not save this company. The Mission statement was divided in to two parts: “Our Vision” and “Our Values” and their vision statement stated, “To create richer and more satisfying lives through knowledge and entertainment.” (Farfan, para 3). There could be much reason why Borders did not success has these articles states these are explanations on why:
1. It was too late to the Web.
a. With growth of social media and shopping online Borders Books did not jump the chances to embrace the internet. Second, when it did open its online store it outsources to Amazon.com giving Amazon the chance to grow its business and given be able to buy out Borders.
2. It was too late to e-books.
a. Once again late to how the world is changing into a technical logical world. Of course, Amazon jumped in to the e-book crazy just has Barnes & Noble too with their Nook. Yes after sometime Borders did create their e-books, but even product placement is a big things. When customer walked into Borders a person cloud not even tell if e-boo were even sold their. As for Barnes & Noble’s you walk into their store the kiosk of Nooks are right in the customers face.
3. It opened too many stores.
a. Borders got to big too fast. With the idea of success in Ann Arbor the company management decided to start opening others stores in other areas.
4. It had too much debt.
a. With the recession in 2008-2009 Borders was already in debt and trying to get out of it was not in the cards. Borders had owed over $350 million and with the trying to keep business, going it did not seem it was going to get out of it.
5. Lastly, it over-invested in music sales.
a. Borders saw that their business was not going too well, so with one last attempt Borders made the decision to start selling CDs. It seems liked a great idea, however; during that time an invention by Steven Jobs started to take flight. The iPod, which allows people to download their favorite bands and artists without buying CDs, which takes up space. Borders found itself with more retail than space for them.
In the end, Borders could not change what was going too happened. If former Chairman and CEO Mike Edwards and former President Scott Henry started to view that change in the world and see how this world was growth they could have change the outcome of Borders Books. It was truly a matter of changing and viewing the new world that is before them. The people now live in a technology world and many businesses should embrace this.

References

Border Group, Inc. (2015) Case Administration Website. http://www.bordersreorganization.com/
Farfan. B. (2015). Company Mission statements- Complete List of World’s Largest Retail Missions. Borders Books with Knowledge and Entertainment. http://retailindustry.about.com/od/retailbestpractices/ig/Company-Mission-Statements/Borders-Books-Mission-Statement.htm
Sanburn, J. (July 19, 2011) Time. Five Reason Borders Went Out of Business (and What Will Take its Place). http://business.time.com/2011/07/19/5-reasons-borders-went-out-of-business-and-what-will-take-its-place/…...

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