What measures should Wang Laboratories adopt to avert this disaster that befell the company?

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Abelido Albert Bryan                        Ignacio Carlos Ben                Ong Julie Kristine

Cañete Lesley                                Ladrera Roel                        Reandino Jason

Wang Laboratories

        In the word processing industry, Wang Laboratories, Inc. has been the forerunner. It has revolutionized the process of preparing documents and expedited its flow. However, with its colossal success and profits, the company has become cataleptic to an apparent threat in its environment — the existence of competition. As a result, since 1988, the company sustained losses that eventually led for it to file Chapter 11 bankruptcy protection.

        What measures should Wang Laboratories adopt to avert this disaster that befell the company?

ALTERNATIVE COURSES OF ACTION

The company has filed bankruptcy under Chapter 11 of the Bankruptcy Code. Under provisions of this code, companies ‘reorganize’ its business and try to become profitable again. Management continues to run the day-to-day business operations but a bankruptcy court must approve all significant business decisions. Thus, it provides the company some time to rehabilitate its faltering business. Two possibilities though may result from this situation — the company may successfully work out a plan to regain profitability or else end in liquidation.

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ANALYSIS

        Wang Laboratories, Inc. came into the picture pioneering a new technology that exploited an untapped market. As a result, the company did not have to go through the usual marketing hullabaloos in establishing and promoting its products. With less competitors and high demand for its products, the company had, in no time, instilled a niche for its reputable name in innovating high-technology hassle-free computing and word processing.

        In the long run, complacency took over the company’s top management resulting to an adverse effect. Little by little, the company has lost its brand capital. With its decline ...

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