BIUvab X x |A LAVA E Ev There have been several famous examples of groupthink that have led to disasters throughout the world. Choose one of these examples as the basis for your assignment and complete the following steps:" Critically analyse the example in the context of organisation ur theories addressing the following questions:~ (1) From the perspective of relevant organisational behaviour theories, provide an argument as to why you think the groupthink situation occurred." (2) Using OB theory, develop a set of recommendations as to how a situation like this could be avoided by other companies." Groupthink example 1: Enron Scandal from early 2000s Many people are familiar with the story of Enron Corporation, which in the late 1090s was by all accounts an extremely successful and profitable company. ~ Underneath this facade was a reality that the leaders of the company were engaging in corrupt and illegal practices, such as hiding financial losses and transferring assets to unlisted companies in order to avoid reporting unprofitable activities. ~ Ultimately, this meant the company was appearing more profitable than it really was. When the corrupt practices were exposed, the share price plummeted from around $90 to $0.26, forcing the company to declare bankruptcy on Dec 2 2001, ~ Groupthink example 2: Volkswagen Emissions Scandal Another global company to get caught up in groupthink and engage in corrupt practices was Volkswagen. In September 2015, the United States Environmental Protection Agency found that many VW cars were in fact emitting more toxic fumes than the company had disclosed/claimed. ~ WW' s "defeat device" was a programme in the engine software that lets the car perceive if it is being driven under test conditions, therefore changing its performance to improve (or cheat) results and suggest it's engine was lower emission than it really was. ~ As a result, the company were found to have misled consumers and regulators about whether the diesel vehicles complied with environmental standards. The company was fined millions of dollars for egregious conduct.~ Groupthink example 3: Space Shuttle Challenger Disaster" On January 28, 1986, the Space Shuttle Challenger broke apart less than two minutes into its flight, killing all seven crew members on board.~ The tragedy shocked people all around the world. ~ Following the disaster it was revealed that the top decision makers at NASA and Morton Thiokol were more focused on pleasing their major customers and sparking publicity, than L 575 73L ensuring the safety of the launch and its crew. ~ The decisions made in the lead up to the launch were largely influenced by peer pressure and groupthink. Had the teams spent more time rigorously checking safety and materials, the disaster may have been avoided.~ Groupthink example 4: Coca-cola' s launch of "new coke" Consumers worldwide are still loving Coke and the many other products the company has successfully launched. But, in the mid 1980s the company took a massive risk and announced that it was changing the formula of their soft drink and launched "new coke" .