Ethical And Legal Environment Of Organizations

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Hostess Brand Falls Flat Cristy Lawler Bethel University MOD 450: Ethical & Legal Environment of Organizations Dr. Dorothy Black December 29, 2016 Abstract For over 70 years Hostess had been a staple on shelves everywhere. Then in the 80’s the company hit very hard financial troubles. In an effort to save the company it made hasty negotiations, took hefty loans for two major leaders, and then tried to quick fix the problem. All the while not holding up to their end of the bargains they had made with their employees and the unions.The executives were looking to only take care of themselves. This ended up being a catastrophic mistake. Within 8 years of filing bankruptcy Hostess once again filed, however, this time it was…show more content…
Everyone wanted the company to run their way with no clear vision on how to keep the company running in the long run. This mismanagement falls on the heads of the executives. It was the responsibility of the head people in charge to make sure that the company was not spread too thin over many different areas. There was no need for over 370 different agreements with that many different unions. The unions and the executives should have come together and came to a collective agreement that best suits all those involved. Not to mention the alarming number of routes, when many of products were all going to the same stores in the first places. That just cost more money. The executives need to stop trying to please everyone all the time, because it is impossible to please everyone all the time, there will be times when people are going to have to compromise for the greater good of the collective whole. Kneading the mixture In order to keep the company afloat, the company made deals with a number of big-name lenders and ended up giving the unions the demands they sought for even more pay raises and newer contracts. Thinking this would help bring in the money to get the company back on its feet by restructuring. Unfortunately, it only ended up going to pay interest payments and none of it actually went to repair equipment or back into the business itself. In the five years after the initial 2004
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