Why Do Businesses Fail? Essay

The collection of private, commercially oriented organizations, ranging in size from sole proprietorships to large corporations is referred to as

In 2006 the company suffered from the labor surplus. The demands for Ford automobile were decreased, so that the company couldn’t afford to produce more automobile. The profit decreased and further more they have gone to debt. There was 54, 000 US employee, 23,900 salaried workers in North America and about 12,000 US worker eligible for retirement. The company was paying them their salary and other benefit, but no benefits for the company. So, the labor cost has increased but the values added in the company by those employees were decreased.

By changing the ways of how the company operates and the rate of compensation it

The strategy of the company’s in the market involving a poor marketing mix strategy, a poor integrated marketing communication strategic plan and service strategy with no experience. There is no evidence of feedback mechanism to insure customer satisfaction or to encourage company loyalty through sustained company-customer relationships.

However, this strategy also has some disadvantages that may hurt the company’s development: The first is the fierce competition between these brands. And it is important to note that using this strategy means facing higher risks. Cost control is another big problem. Obviously, the more brands there are to manage, the higher the costs. For this reason, many prudent companies prefer brand extension over multi-brand management.

When customers seek for a specific product or service, they obviously want the company to be responsible and well organized. A customer wants to be able to trust the company in which the company delivers everything correctly and the way the costumer wants. When all the customer wants and needs are met, the customer will be to determine which company fits best.

Finally, I could also mention that this was a value destroying industry, since the cost pressure was high but with the lower prices of steel, the companies had difficulties to pass the impact of the costs to the customers.

* The challenges of serving corporate customers with a variety of needs in terms of size of organization and how progressive and open to change these companies were. Based on the

First of all, a strong brand can be seen as the condition for organisations to expand products, offer more service, and introduce new products (Chernatony and McDonald, 2003). Secondly, a strong brand can lead to growth marketing communication effectiveness (Keller, 2009). ‘To build a strong brand, the right knowledge structures must exist in the minds of actual or prospective customers so that they respond positively to marketing activities and programs in these different ways.’(Keller, 2003, p. 140) Furthermore, Kay (2005) asserted that the strong brand can be seen as a resource of management, which make brand extension easier and useful to build distribution network. Companies are not treated by the intermediaries (Chernatony and McDonald, 2003). Moreover, companies are comparatively easier to change price if they have strong brands. As Henderson, et al (2003) said, a strong brand can allow for premium pricing even still remain loyalty customers, which help companies to survive in the intensive competitive market.

1. What factors contribute to the rapid pace of change in business? Is the pace likely to accelerate or decrease over the next decade? Why?

Explain and critically analyze unique traits of an Entrepreneur, discuss these related to personal strengths and weaknesses

Business plays a major role within our society. It is a creative and competitive activity that continuously contributes to the shaping of our society. By satisfying the needs and wants people cannot satisfy themselves, businesses improve the quality of life for people and create a higher standard of living.

When the business has more work than it can handle is another warning of the enterprise not doing well. A lack of liquidity can also be a cause of business failure. Liquidity is the speed at which an asset can be converted into cash and if the company does not have enough liquid cash at its disposal, it can lead to their downfall. A new business venture that provides products or services at the cheapest price in a desperate quest for making sales is also a sign of struggle.

1. The most significant challenge to business success you see in this rapidly changing global economy;

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