The collapse of Carillion plc
Oddoye, L. & Pepper, A.
(2025).
The collapse of Carillion plc.
In
Sallai, D. & Pepper, A.
(Eds.),
Navigating the 21st Century Business World: Case Studies in Management
(pp. 39 - 56).
LSE Press.
https://doi.org/10.31389/lsepress.nbw.c
(2025).
The collapse of Carillion plc.
In
Sallai, D. & Pepper, A.
(Eds.),
Navigating the 21st Century Business World: Case Studies in Management
(pp. 39 - 56).
LSE Press.
https://doi.org/10.31389/lsepress.nbw.c
This case examines the collapse of Carillion plc, an outsourcing company. It describes how outsourcing became a common business model in the 1990s, how being the lowest-cost provider is not by itself a sustainable long-term business strategy and how optimistic assumptions about the profitability of long-term contracts can lead to financial failure.
