Question

1. Provide a real-world example of a coordination failure leading to an inferior outcome in

   development.

Answer 1

Companies like Thysenkrupp and Tata Steel enetred joint venture agreement however failed to keep promises and ways of leadership and management and thus announced corporate spinoff or split between them due to lack of coordination on grounds of keeping the right corporate governance standards and risk management frameworks which ultimately resulted in negative outcomes like drop in market capitalization of both companies and shareholders value erosion. Lack of integration and sound management principles coupled with differences in culture resulted in coordination failure and ultimately a split between them.

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