The failure of NOVA and corporate governance(General Themes)

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  • NOVA破綻とコーポレートガバナンス(自由論題)
  • NOVA破綻とコーポレートガバナンス
  • NOVA ハタン ト コーポレートガバナンス

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Abstract

The language school NOVA went bankrupt in November 2007, depriving about 300,000 students of the rights to take lessons they paid for, and the prepaid tuition of 56.4 billion yen in total was not refunded. Also, about 6,600 employees including foreign teachers lost their jobs, which was an enormous shock to the society. Why did NOVA, a very powerful company with 500,000 students at its zenith and more than 50% of the market share, failed? The fundamental cause was in that its management had been without a business model which could guarantee the increase in sales and profits. This article examines the managemental problems of NOVA in an attempt to suggest how corporate governance should be and how it can be fortified.

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