Theranos. Elizabeth Holmes was once a rising superstar in biotech. Now, she faces up to 20 years in prison. Answer the following, with detailed reasoning and support for your assertions:
How did Theranos get to be valued at $9B with a product that did not work? Consider human factors and other factors.
What factors ultimately led to Theranos’ downfall? Consider the roles of strategy, decision making, and culture.
What lessons can we learn from this?
Think about other course of action that could have been taken, either by Holmes or other stakeholders (internal and external). You might also consider what could be done now, at this point in Holmes’ and Theranos’ story.
Evaluate each course of action (pros and cons).
Recommend the best course of action.
Q2:
Amazon began a program in which they offered to pay employees up to $5,000 to leave. CEO Jeff Bezos explained the policy, called Pay to Quit, in his letter to shareholders. Amazon makes the offer once a year, but only to workers in the fulfillment centers where orders are boxed and shipped. What might the effects be for Amazon’s organizational culture? What does it say about the culture? Who is most likely to take the payout? What are the positives and negatives of this policy? What are the financial implications for Amazon’s bottom line?
Sample Solution
