Friday, February 27, 2009


When an auditor publicly questions the viability of a company, it is a strong blow to the credibility of the organization and its leadership. That is what General Motors is now expecting. From a PR point of view, GM did the right thing by alerting the market before the auditor's letter is published. The company is getting bad news out quickly. It won't make much difference in the price of the company's stock, which already is at an historic low. It is one more piece of bad news that management and the board must deal with as they try to turn the corporation around. Watching this once mighty company crumble is hard, but it is a useful reminder that no organization is safe -- ever.


Post a Comment

This page is powered by Blogger. Isn't yours?