February 18, 2023

BSA – 2
Strategic Cost and Management
Analysis

Monitor Group, a Cambridge (Massachusetts) consulting firm founded in 1983 by

Porter and other Harvard-linked entrepreneurs, become bankrupt. It officially closed
its doors in 2012.
ANSWER;

Monitor Group is a company that is called a limited partnership it is an American

strategy business. It was found in the year 1983 that is owned by six entrepreneur
that was ties in the Harvard Business School and this school was so famous in the
America. Michael Porter was an American who is one of the owner of the business
named Monitor Group, he is known as academic theories on economics, business
strategies and social factors. He was born on 23 of May with the year 1947. The
company Monitor Group is part of the Deloitte, Michael Porter was the Bishop
William Lawrence University Professor at Harvard Business School. Michael Porter
has five analysis about business which is a way on today crucial in creating firm
strategy he was known the largely creator of the discipline of modern strategy.
Porter’s also known as the one of the world's greatest business strategists and one
of the greatest management and competitiveness theorists ever.
For me, I can say that the cause of the bankruptcy of the Monitor Group is that
Monitor Group was unable to pay its bills and it lead them to bankruptcy. On the year
2008, the monitor group there business work slow dramatically because of financial
crisis/problem. There financial crisis one of the cause that lead to their business to
bankruptcy, because if you have a business and the problem is about financial it is
really a big problem that cannot easily solve. On the year 2009, the firm's partners
were required to contribute $4.5 million up front and forgo $20 million in bonus
payments. The private equity firm Caltius Capital Management then granted Monitor
Group a further $51 million in credit. The business's headquarters in Cambridge,
Massachusetts, were unable to be rented out beginning in September 2012. The
notes fell into default in November 2012 as a result of another interest payment that
Monitor failed to make to Caltius, which led to the company's bankruptcy. The
insolvency of Monitor Group raises issues with supply risk management, internal
controls at services firms, inadequate scenario planning, and other things.
The reason of the bankruptcy of the Monitor Company is that they don’t taking
care business of their business properly and until time comes it lead them to financial
crisis and that time they borrowed a money on someone they know and until time
comes they did not pay the money that they borrowed because they really have a
financial crisis and there company lead them to bankrupt and that’s why there
company close. They did not analyze properly the problem than can lead them to not
pay the debt or the money they borrowed.
If you are handling a business you must taking care of it and you must do your
responsibilities as the owner of the company, don’t leave you company behind you
must be a business minded. Taking care of your company/business, responsible
enough to handle a business. You must identify/analyze properly the problem of your
business. Be responsible and business minded.