POLLY PECK INTERNATIONAL

This is basically a corporate governance related case in which we can see and
learn how the role of manager or CEO can lead the organization from the
competitive to an unconditional organization.

The main character of this case is Asil Nadir who first appeared as a hero and
legend and after that he become the one who hurts the whole shareholders and
the business market just for the sake of his own interest and selfishness.

Power and Authority: like we saw in the other reviews that the company need to
diversified their powers in different hands so that it will be remain competitive
and strong and will remain in the market as long as possible. Like here Nadir was
both the chairman and CEO and he was investing blindly without any regard that
will be the effect of this investment on their company in the future.

Internal and External Auditor: in the fever of company strength they need to
keep eye on their incoming and outgoing transactions and funds and to be aware
that the investment and decision taken by ORG is in the fever of our future here
Nadir was investing for the sake of his own future not for the future and the did
not ask for the invested amount from him.

Strength and Focus: Nadir was clever and going good in expanding the business of
Polly peck but for the best strength and competitive organization they must keep
their investment limited and focus hard on where the invested before.

Banks and Financial Institutes: there should be a limit of loan and the bank and
financial institutions as well as the company must be aware of the limitation of
their loan. Nadir borrowed a lot of money on company name and invested that
loan in his own industry but their company was still not aware of his act.

R & D and HQ: One of the biggest problem with this institute was of their
ineffective HQ and Research department because they were not doing their job in
the best fever of org they never stopped nor guided the org to invest in the
expansion and best way which can help to attract more shareholders and keep
the current happy.

 (i) + the positive point of authority in a single hand is that he has a free
hand to invest and expand the company operations and can lead the Org to
an undisputable position
 (-) The negative point is that he can do and use the authority just for the
sake of his own interest. And can hurt the competition and business
position for his own future.
 (ii) I think the blame lies on both PPI and bank but the principal blame lies
on bank because they did not investigated about the previous loan taken by
Nadir and Issued a lot more by the demand of CEO which is both against
the law and bank policies the must clarifies that either the loan taken was
effectively used by them or just wasted for their own interest.
 (iii) The lesson which I learned from this case is that any organization either
it is working globally or domestically must diversified their power and
authorities in different hand and did not allow anyone to decide on their
own thoughts and believes the strict debate should be done before and
implementation of new policies and investment.
 (iv) on my thinking the most effected stack holders are shareholders and
suppliers because a lot of people invested in PPI when they saw that in just
10 years the company doing business in street become a global master and
they should be a market leader in the future as a lot of people invested in
the stock of PPI but when the prices goes down they faces a lot of losses.