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Carillion Plc Liquidation?

Can anyone help me understand why Carillion plc has gone into liquidation rather than administration? What did they do wrong? Can this be linked to the Business/Corporate or Global Level in an organisation? What were the SBU's in the BCG matrix?
Original post by Eduardo19
Can anyone help me understand why Carillion plc has gone into liquidation rather than administration? What did they do wrong? Can this be linked to the Business/Corporate or Global Level in an organisation? What were the SBU's in the BCG matrix?



Too many liabilities and no chance of trading out.
They expanded too quickly and got involved in too many unprofitable contracts.


http://www.bbc.co.uk/news/business-42666275
http://www.bbc.co.uk/news/business-42710795
http://www.bbc.co.uk/news/business-42744949
https://www.independent.co.uk/news/business/analysis-and-features/carillion-collapse-how-liquidate-government-contract-what-nhs-hs2-what-happen-a8159786.html

https://news.sky.com/story/revealed-carillion-collapsed-with-5bn-of-financial-liabilities-11213303

https://www.theguardian.com/business/2018/jan/15/carillion-what-went-wrong-liquidation-staff
Reply 2



Thank you for your help. However, how could the liabilities be measured in the BCG Matrix, do you reckon that due to them expanding rapidly it affected their corporate vision and mission?
Original post by Eduardo19
Thank you for your help. However, how could the liabilities be measured in the BCG Matrix, do you reckon that due to them expanding rapidly it affected their corporate vision and mission?


Read the articles and think of contracys and services as products.


Which ones were cash cows and stars?


Which ones were dogs and problem childs.

The problem with carillion is that a number of contracts they believed would be stars turned out to be problem childs and that took them down.

The articles identify which contracts those were.
Reply 4
Original post by 999tigger
Read the articles and think of contracys and services as products.


Which ones were cash cows and stars?


Which ones were dogs and problem childs.

The problem with carillion is that a number of contracts they believed would be stars turned out to be problem childs and that took them down.

The articles identify which contracts those were.


Do you know which school of strategy best fits into Carillion?
Original post by Eduardo19
Do you know which school of strategy best fits into Carillion?


Read the articles I have linked you. They explain how Carillion operates as a business and why they got it wrong.
Original post by Eduardo19
Can anyone help me understand why Carillion plc has gone into liquidation rather than administration? What did they do wrong? Can this be linked to the Business/Corporate or Global Level in an organisation? What were the SBU's in the BCG matrix?


Read https://www.ft.com/content/a4dd80be-f9f1-11e7-a492-2c9be7f3120a

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