The Survival Styles of Companies While in a Crisis Phase

A company built from startup to stability is long and winding. From innovative ideas and employers to marketing and financing, a company that survives unforeseen and predictable circumstances deserves success. What is undeserving is how quickly a company can fall from grace. Companies can blame six problematic issues for this.

In the last several years, as we have seen some of the major financial conglomerates collapse, when Wall Street carries some negative connotation, investors’ attention turns to the companies who work primarily with Main Street, specifically those folks who create capital and own assets. A lot of these businessess would not strike you as super wealthy, yet it is the small businesses that proved to be the most resilient during the hard economic times.

The good news is that small businesses have been doing better than the overall economy. During the past few years, they have overcome rough times and developed a resiliency that is serving them well. The bad news is that the rising

Imagine walking down main street in a small town, you notice that there are many unique store in which you have never come across. After walking into countless stores you are starting to notice that they all have one thing in common. What possibly could all these diverse stores have in common, they all have a 12” by 10” sign with white lettering and red background saying Help Wanted. In “ Heart Land and the Rural South Exodus” by Patrick Carr and Maria Kefalas, your able get the chance in knowing how much rural areas are in danger. In this paper I will argue that thriving small business are going to eventually be in danger persuaded by Carr and Kefalas of triple threat explained by Carr and Kefals, small business owners facing the

How do people respond to crisis? There are many different ways people respond to crisis. We will examine three ways people respond to crisis: people hide from it, people ignore it, and people take action and stay calm. We will examine these three things with the help of the following passages: “The Masque of the Red Death” by Edgar Allan Poe; “Scurvy at Sea” from “making History with Vitamin C” by Penny Le Couteur and Jay Burreson. And finally “Heroics Behind the Miracle on the Hudson” written by Liana Stanley from “The New American”. So, once again we will see three ways people respond to crisis: people hide from it, they ignore it, and some people take action and stay calm.

I recognize there are certain situations where the government should contribute financial assistance in preventing massive companies from failing, because some companies provide economic stability and are too important to fail. However, an accurate determination of the national economic damages that a corporation’s bankruptcy may produce should be imperative in justifying whether a bailout is legitimate. An extensive corporation’s bankruptcy may have conflicting impacts on the economy such as; an increase in national unemployment rates, reduction of gross national profits and gross domestic products output. These plus countless other factors overtime could possibly influence a weakening in our economic system trickling down to the value of

In the free market system all the businesses operate to attract the customer as it is customer’s choice where to shop and who’s product to buy. As soon as business and its products do not appeal to the customer, the business may come to the end of its existence. There are other reasons for financial problems for big and small businesses alike. The financial downturn; it affects consumers and businesses. Perhaps the business could sustain the competition or could not appeal to the consumer, the natural business process should take place and the strongest companies will survive. Government should

Crisis communication is one of the most important and neglected components of organizational communication in today's business world. It is vital that every corporation have contingency plans for emergency situations, both natural and man-made. Studies show that eighty percent of organizations confronted with a major disaster runs out of business within two years.(Hickman & Crandall 1997) Nevertheless, we also know that almost forty percent of all Fortune 1000 companies have an operational crisis management plan in place. (Hickman & Crandall 1997) This paper will examine and evaluate three journals that discuss different aspects and needs for an active crisis plan.

We desire our organizations to operate, mature, and generate revenue, even when the economy is feeble or in a recession. Nowadays, we have numerous corporation collapses that result in financial losses for shareholders and downsizings of workforce. Small and large companies experience hardships and are phased out. Unemployed individuals obtain employment, but these are not commensurate with the

As much as the masses champion small businesses and denigrate big ones, large organizations are essential to a modern economy. For all their missteps, businesses with thousands of employees enjoy economies of scale that let them fulfill crucial economic functions. Replacing FedEx or UPS with a plethora of tiny businesses, for example, would undoubtedly hurt America’s logistics networks. Replacing the Big Three automakers with smaller ones would likewise cause cars to become unaffordable to most. To be clear, small businesses play a vital

Size is not the medicine when firms fail. For example, Fujian [2004], using a list of broken Japanese companies in 1997 ([Bouchaud, 2003]) has drawn the failure of some firms regardless of size. When business growth is supported by debt to risk exposed is superior because it threatens both the creditor losses as the lender. Size growth combined with rising debt can lead to colossal failures. It's like traveling with suicide pilots that guide aircraft dynamited. By taking unsustainable growth strategies with negative externalities, people end up paying higher costs.

Despite a recent revival in research, comparatively little is known about firm growth or its determinants. Indeed, standard microeconomics textbooks say little or nothing about the topic. Understanding how firms grow, however, especially small firms, is an important issue. In most U.S. industries, small firms account for much of the capital stock, employment, and a surprisingly large fraction of innovations (Acs and Audretsch, 1988, 1990). Studying firm growth can provide insights into the dynamics of the competitive process, strategic behavior, the evolution of market structure, and perhaps even the growth of the aggregate economy. This paper examines the long-standing theory that the growth of most small firms is constrained by the available quantity of internally generated finance. Butters and Lintner (1945) provide some of the earliest research to support this theory. They examine the early histories of several industries and conclude that: "[m]any small companies−even companies with promising growth opportunities−find it extremely difficult or

Why would a small business see higher turnover than a larger company? In general, small companies have less official company documentation and standardization with regard to job

Abstract This paper examines the long-standing theory that small firm growth is often constrained by the quantity of internal finance. Under plausible assumptions, when financing constraints are binding, an additional dollar of internal finance should generate slightly more than an additional dollar of growth in assets. This quantitative prediction should not hold for the relatively small number of firms with access to external equity. We test these predictions with a panel of over 1600 small firms and find that

The failure or bankruptcy of financially distressed firms results in significant direct and indirect costs to many stakeholders; including shareholders, managers, employees, lenders and clients. For instance Shareholders lost nearly $11 billion