Causes of Failure in Business Normally, following are the common causes of failure of any business: • Lack of market knowledge • Start of any business without having proper experience in the field • Lack of control over procedures • Lack of understanding customer’s demand • Poorly designed Production Processes • Cost • Wastage • Complaint handling • Quality • Insufficient capital • Bad Luck • Natural Disaster Reasons for Success in Business (controllable factors) • Response of Market • Competence – The ability to work • Knowledge of Market • Knowledge of Product • Knowledge of Systems Reasons for Success in Business (uncontrollable factors) • Luck and Act of God • Law of Government • State Laws • Climate change • Using disaster (if any) as an opportunity) Joint Venture Two or more people or organizations join hands and decide to do a combine business. In a joint venture, There is equal sharing or capital resources by each firm. Instead of expanding the business at broader level or to start a new business with very high cost, joint venture shares the financial burden in order to gain new opportunities at diversified level. Advantages of Joint Venture • Provide opportunities to acquire new expertise • [...]
Read the rest of this entry »
Recent Comments