Critical evaluation of why G4S Security Company failed in the 2012 Assignment

Critical evaluation of why G4S Security Company failed in the 2012 Olympic - Assignment Example The main reason behind the failure of the contract between Olympic committee and G4S was the staffing problem of the company. G4S could not maintain the terms if the contract and thus the contract cost them a huge amount. G4S, the largest international security solutions group, specialises in providing security solutions to those countries where risk of safety and security are conceived as a serious strategic threat. The company has provided successful security solutions to many countries but after the death of Jimmy Mubenga in 2010, it had started to face its darkest days. Several controversies followed the death and later in 2012 the security disaster at Olympic Games provided a severe blow to the company’s strategic actions and the company had to pay a huge amount as penalty (Taylor, 2012). If the issue is looked upon very closely, it can be observed that the company had undertaken many wrong policies for taking the contract of providing security solutions to Olympic Games. It overvalued the number of security personnel and also increased the pay of the chief executives when the company was encountering huge loss. All the issues led to the failure of the contract with the Olympic committee. However, the company has to pay an amount of  £ 88 million as penalty. The report highlights the facts that lead to the failure of the security contract of G4S with Olympic Games in 2012 (Shift Media Publication, 2013). The main issue was staffing problem and the company shares were also falling as the investors came to know about the issue. If the financial statements of the company are studied it can be noticed that the Annual Report 2012 does not have any transaction information regarding Olympic 2012. The financial statements do not have information regarding the transaction pertaining to Olympic Games. The only existence of the incident is written in small letter in the Performance Highlights section of