What Is the Icarus Backer?
The Icarus Factor is a term for what happens when business leaders initiate an overly ambitious project that does not get to the top, thereby harming the company’s financial health. Fueled by excitement for the project, the executives are unable to rein in their fallacious enthusiasm before it is too late to avoid failure.
- The Icarus Factor is a term for what happens when point leaders initiate an overly ambitious project that does not succeed, thereby harming the company’s financial salubriousness.
- The Icarus Factor is mainly seen when companies plow into businesses that work on different models from their be founding lines.
- Pressure from competing businesses often pushes companies to diversify new lines before they’re clever; if these are prematurely launched or over-invested in, the Icarus Factor prevents them from becoming successful.
Understanding the Icarus Ingredient
In Greek mythology, Icarus and his father, Daedalus, were imprisoned in Crete by King Minos. Daedalus created two instals of wings made from wax and feathers. He and his son were to use them to escape by flying. Daedalus warned his son not to fly too close to the sun. Icarus was bowled over with the excitement of flying and disregarded his father’s warning. He flew higher and higher, approaching the sun. As the wax melted and the feathers knock, so too did Icarus fall to his death in what is now called the Icarian Sea, near Icaria, an island southwest of Samos.
The Icarus Element is mainly seen when companies plow into businesses that work on different models from their existing ranks. As they spend more and more money to try and catch up to other companies already dominant in those fields, they use up the scratch reserves built up by their core business. This drain, if not done properly, can sometimes be fatal, doing irreparable deface to the company and its overall financial health.
The Icarus Factor: Why Take the Risk?
It’s a competitive world out there, with assemblies diversifying their product and service lines or merging with other companies. All this can have a big impact on the marketplace and on consumers’ tolerances and habits. And by taking the
Example of Icarus Factor
Sometimes a company can become so blinded by its position in the market that it can set itself up for dud. India’s Kingfisher Airlines started operations in 2005 as a public limited company, and initially had the second-largest share in the outback’s domestic travel market. The company was owned by United Breweries Group. In November, six months after it began bugaboo, it made an announcement that it would launch an initial public offering (IPO) in order to raise capital to expand and if possible take over other airlines. But the company was reportedly in debt and continued to pile up losses, despite acquiring another smaller airline in 2007 and distending to include flights from India to the United Kingdom in 2008. The company was plagued with problems, including the extermination of prime flying slots and employees protesting over delays in salaries.