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Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? - Business - Nairaland

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Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by maureensylvia(f): 2:44pm On Jan 11, 2023
Take a look at this

Mr Joe has been running a successful business in millions of dollars for decades with hundreds of employees working for him.

Surprisingly at his death, the business ceased to continue.

Why do you think this happened?

Share your thoughts

A case study of MKO Abiola
(He set up Abiola Farms, Abiola Bookshops, Radio Communications Nigeria, Wonder Bakeries, Concord Press, Concord Airlines, Summit Oil International Ltd, Africa Ocean Lines, Habib Bank, Decca W.A. Ltd, and Abiola football club)

41 Likes 6 Shares

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by cassyrooy(m): 2:46pm On Jan 11, 2023
maureensylvia:
Take a look at this

Mr Joe has been running a successful business in millions of dollars for decades with hundreds of employees working for him.

Surprisingly at his death, the business ceased to continue.

Why do you think this happened?

Share your thoughts

A case study of MKO Abiola
(He set up Abiola Farms, Abiola Bookshops, Radio Communications Nigeria, Wonder Bakeries, Concord Press, Concord Airlines, Summit Oil International Ltd, Africa Ocean Lines, Habib Bank, Decca W.A. Ltd, and Abiola football club)

Cc: lalasticlala, Seun
@kobojunkie @cassyrooy come in here

Present Ma.

I think what you've done is to highlight the "Key Person Factor".

When the pioneer or Key Person in a business dies, a lot of businesses folds up.

Many businesses are set up for profits taking and as such may collapse immediately the person who set it up isn't there to maintain both internal and external control over clients and employees.

Again, successive administrators may not share same vision and aggressive passion to grow the business beyond what they met so when things get out of control, they're not able to handle.

Organisational structure may not reflect current requirements. Once a key person dies, overhauling the structure of the Organisation is very important to meet the needs and demands of the challenges that may cause the business to fail.

Many don't see this until everything collapses.

147 Likes 16 Shares

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by God1000(m): 2:48pm On Jan 11, 2023
You are right.

Lack of succession plan, lack of established processes and lack of discipline

104 Likes 5 Shares

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by yrhuhfy113: 2:55pm On Jan 11, 2023
maureensylvia:
Take a look at this

Mr Joe has been running a successful business in millions of dollars for decades with hundreds of employees working for him.

Surprisingly at his death, the business ceased to continue.

Why do you think this happened?

Share your thoughts

A case study of MKO Abiola
(He set up Abiola Farms, Abiola Bookshops, Radio Communications Nigeria, Wonder Bakeries, Concord Press, Concord Airlines, Summit Oil International Ltd, Africa Ocean Lines, Habib Bank, Decca W.A. Ltd, and Abiola football club)

Cc: lalasticlala, Seun
@kobojunkie @cassyrooy come in here


Simple Answer.... THEY DIED TOO EARLY ... they were not prepared for death.

It happen not just to CEOs, pastors too, kings too, etc

WHEN ESTABLISHING MULTIPLE THINGS.... the heir may still be in school or underaged... and everyone close to them may not share their vision, may only be there for the money. So only those who have reached a level where they remember that death can come for them in less than 20 years begin the process of GROOMING a successor.

Once the visioneer has not raised anyone to share the same vision, the vision dies with him.

116 Likes 7 Shares

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by maureensylvia(f): 4:03pm On Jan 11, 2023
maureensylvia:
Take a look at this

Mr Joe has been running a successful business in millions of dollars for decades with hundreds of employees working for him.

Surprisingly at his death, the business ceased to continue.

Why do you think this happened?

Share your thoughts

A case study of MKO Abiola
(He set up Abiola Farms, Abiola Bookshops, Radio Communications Nigeria, Wonder Bakeries, Concord Press, Concord Airlines, Summit Oil International Ltd, Africa Ocean Lines, Habib Bank, Decca W.A. Ltd, and Abiola football club)

Cc: lalasticlala, Seun
@kobojunkie @cassyrooy come in here

Poor management?
Poor staff training?
CEO selfish interest?

18 Likes

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by ghiloman28(m): 4:26pm On Jan 11, 2023
When they can’t continue with the Ritual

20 Likes 1 Share

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by FalseProphet1(m): 4:26pm On Jan 11, 2023
Lazy and wasteful children who aren't ready to make their father's sacrifice but are eager to lavish his millions.

Ekene Dili Chukwu...I cried when the owner died cos I knew the company wouldn't last 6 months before crumbling and I was right.

Most parents spoil their kids so badly that they have zero knowledge of what operating a business is all about.

This I have seen.

124 Likes 10 Shares

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by Eriokanmi: 4:26pm On Jan 11, 2023
African tinz. Me and my family grin

15 Likes 1 Share

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by meobizy(f): 4:26pm On Jan 11, 2023
Africa. The success of a business is tied to its director’s wellbeing. Many successful businessmen don’t bother teaching their relatives the ins-and-outs of the business. Once he dies and family members can’t catch up fast enough, it dies.

The white man prefers keeping a legacy. His name lives as long as his achievements. Disney died long ago yet his company owns 92% of present day Hollywood. Nobody knows when Einstein was born or when he died. His scientific findings still guide rockets sent to space yearly.

76 Likes 10 Shares

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by chukkystar(m): 4:27pm On Jan 11, 2023
Alot also continue to the next Generation. It's all about instilling Values in Ur Offspring

7 Likes 1 Share

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by Moh247: 4:27pm On Jan 11, 2023
cool


Abiola still has a oil Mining lisence held by his son Kola, Abiola spent his money researching and getting the oil field and that's a mega business

Abacha intentionally killed most of Abiola's business

Concord fleet of aircraft where grounded, his farm siezed , account frozen, and he got imprisoned...

Abiola and General Yaradua had the biggest shipping company in Africa... Both where murdered and business killed

What MKO suffered for this same Democracy isn't easy

The good thing is Bola Ahmed Tinubu Jagaban is smart enough not to have any business interest in his name, everything is in trust





.

44 Likes 6 Shares

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by rajiedreez: 4:27pm On Jan 11, 2023
smiley they were not formed to grow and exist in the absence of the owner. If your business can't grow without you, you're the life line of the business.

9 Likes

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by MANNABBQGRILLS: 4:27pm On Jan 11, 2023
Exit plan also known as succession plan is always a good and positive thing by good CEO, we are talking generally now, not about an individual.
Exit planning solved all those kinda problems before it happens.
This process involves plotting how an organization will continue after an owner’s retirement or death.
Exit planning aims to help a business thrive without the founder’s direct involvement. 

A founder’s death can impact workers’ overall performance because the founder likely played an outsized role in holding the company together.
With exit planning, founders gain the peace of mind of knowing they have done everything possible to keep their company strong and their families protected.
They know their values and vision will survive.

God bless our hustle.

15 Likes 3 Shares

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by Jestin: 4:28pm On Jan 11, 2023
Most creative ideas always die with their originators

8 Likes 1 Share

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by sapele914(m): 4:29pm On Jan 11, 2023
yrhuhfy113:



Simple Answer.... THEY DIED TOO EARLY ... they were not prepared for death.

It happen not just to CEOs, pastors too, kings too, etc

WHEN ESTABLISHING MULTIPLE THINGS.... the heir may still be in school or underaged... and everyone close to them may not share their vision, may only be there for the money. So only those who have reached a level where they remember that death can come for them in less than 20 years begin the process of GROOMING a successor.

Once the visioneer has not raised anyone to share the same vision, the vision dies with him.
You need to be more lucky than good, life will take its course.

2020 hindsight is always perfect.
Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by moscobabs(m): 4:29pm On Jan 11, 2023
grin
Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by Odunharry(m): 4:29pm On Jan 11, 2023
No succession planning IMO...

2 Likes

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by Cholls(m): 4:29pm On Jan 11, 2023
My brother I guess the predecessor picked the wrong successor

2 Likes

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by TheChameleon: 4:29pm On Jan 11, 2023
Lack of vision and discipline by inheritors

6 Likes

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by iLoveYouToo(m): 4:30pm On Jan 11, 2023
He wasn’t sharing trade secrets

10 Likes 1 Share

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by XXCASH: 4:30pm On Jan 11, 2023
maureensylvia:
Take a look at this

Mr Joe has been running a successful business in millions of dollars for decades with hundreds of employees working for him.

Surprisingly at his death, the business ceased to continue.

Why do you think this happened?

Share your thoughts

A case study of MKO Abiola
(He set up Abiola Farms, Abiola Bookshops, Radio Communications Nigeria, Wonder Bakeries, Concord Press, Concord Airlines, Summit Oil International Ltd, Africa Ocean Lines, Habib Bank, Decca W.A. Ltd, and Abiola football club)

No succession plan. Simple

3 Likes

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by ModCaller: 4:31pm On Jan 11, 2023
The business was built on the reputation of the founder. He dies, the reputation dies with him.

2 Likes

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by Jokerman(m): 4:31pm On Jan 11, 2023
Except he doesn't have serious children to follow the footsteps.... grin

1 Like

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by petertega9(m): 4:31pm On Jan 11, 2023
in business u planned for the future, they are planning for the present that is why it crumbles

3 Likes

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by Ballzproblem2: 4:31pm On Jan 11, 2023
lack of heir to the business .



.. nepotism, putting family members in charge when they Don't know shit about the business

6 Likes

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by sapele914(m): 4:32pm On Jan 11, 2023
Moh247:
cool


Abiola still has a oil Mining lisence held by his son, Abiola spent his money researching and getting the oil field

Abacha intentionally killed most of Abiola's business


.
MKO’s wealth is still there, he has so many landed properties, problem is too many children.

From information RCN domination of the telecommunications sector by an indigenous company of the 1970’s is similar to GLO of today.

2 Likes 1 Share

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by Lexusgs430: 4:32pm On Jan 11, 2023
Nigerian factor ........ grin

Once the CEO kicks his bucket, his politically exposed thieves, simply hit the kill switch, eventually starving the business of funds + secretive business arrangements of the CEO ..........

2 Likes

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by Searchingvictor: 4:32pm On Jan 11, 2023
The owner at fault. Most owners don't delegate power for learning and corrections. Now, he/she dies, powers falls to try and errors system

10 Likes

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by Realist12: 4:32pm On Jan 11, 2023
Businesses that have active stake holders asides the pioneer will continue being in business so long as the other stake holders have a going concern and sees the business as an independent entity.
But most African businesses are " me and my family "

In the case of Abiola Nigeria happened to the businesses.

6 Likes

Re: Why Do Some Successful Businesses Fold Up After The Demise Of The CEO? by dazzlingd(m): 4:33pm On Jan 11, 2023
Sole proprietorship

12 Likes 1 Share

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