David Waters intended Honolulu-based Centaur Zone Cafe to be the prototype of an international franchise of coffee houses. He op
ened his first coffeehouse right next to Hawaii Pacific University in October. After a slow beginning, college students found the coffeehouse, and Waters made enough to pay the coffeehouse bills, but then came summer and his customers went home. But by the time students returned, Hawaii’s poor economy was entering its seventh year of decline and the coffeehouse was running at a net loss. Waters failed to see that a year-round business could not depend on college students nor did he take into account the Hawaiian economy. He was in which stage of organizational decline?
The second stage of organizational decline is called "Undisciplined Pursuit of More." This stage refers to the inability of the entrepreneur to see undisciplined movements in his organization in an attempt to make it grow, or looking for goals that do not fit in the area in which the company is established. In other words, we can say that an example of this internship is seen in a businessman who manages a cafeteria to operate the whole year, having as main audience the students, knowing that they will attend during vacation periods.
