Loading presentation...

Present Remotely

Send the link below via email or IM

Copy

Present to your audience

Start remote presentation

  • Invited audience members will follow you as you navigate and present
  • People invited to a presentation do not need a Prezi account
  • This link expires 10 minutes after you close the presentation
  • A maximum of 30 users can follow your presentation
  • Learn more about this feature in our knowledge base article

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

DeleteCancel

Why do businesses fail? by Caitlin Jones-Bennett

No description
by

Inveralmond chs

on 13 September 2012

Comments (0)

Please log in to add your comment.

Report abuse

Transcript of Why do businesses fail? by Caitlin Jones-Bennett

Why Do Businesses Fail? Businesses Fail for a number of reasons....
*Cash Flow Problems
*Competition Is Too Fierce
*Business Generally Is Bad
*The Business Had Not Kept Up To Date
*Poor Management
*Shortage Of Finance
*Staff Problems
*Faulty Equipment
*Political Challenges Cash FLow Problems:
*cash flow causes most problems
*many businesses do not plan ahead properly - they do not draw up a cash budget
*they have been too optimistic with their figures
*perhaps a big customer takes a long time to pay or even goes bust owing them money
*or there is something quite unforeseen like a petrol blockade or foot-an-mouth which stops people moving about and affects trade.
*the results is that there is not enough cash coming in to pay the bills.
*the bank may allow an overdraft for a limited time but if things don't improve the business will fail Competition is too fierce:

*they have a better product
*they use destroyer pricing - making prices so low other businesses can't compete.
*companies have joined together (illegally) to push you out. Business generally is bad:-

the economy is in recession which mean that:-
*less is produced
*less is earned
*less is spent
*less is bought
*more people are unemployed and have no money to buy things. Business has not kept up to date:

*the product is obsolete
*the product is no longer fashionable
*method of production is old-fashioned and inefficient
*marketing is not effective Poor Management:

*unattractive
*stock not available - customers go elsewhere Shortage of finance:

if there is a lack of money in the business, the business may find it more difficult to:
*expand
*buy new equipment
*pay bills Staff Problems:

problems with staff can occur if they feel they are not working in a good enviroment including the following:
*poor industrial relations resulting in employees going on strike etc
*poor quality of goods/services due to unmotivated staff
*staff may leave for an organisation offering better wages, promotion prospects. this may result in a fall in production Faulty Equipment:

Problems with equipment may result in products:
*which are of poor quality
*not produced on time
*not up to the standard of competitor's products
Full transcript