Why Do Businesses Fail?

[pic] Why Do Businesses Fail? Analyze the reasons and provide a case study of one or more companies that suck up failed or suffered serious setbacks in front they recoered. Name: YAN Hong ID number: 100004456 discipline: Mrs. Dawn Cremonese It is well known that the financial crisis which started in 2008 is a worldwide recession. Even the Lehman Brothers Holdings, which was a global firm with a high reputation, went bankrupt on September 15th, 2008. Lehman Brothers Holdings failed because it was unable to go along the confidence of its lenders and counterparties and because it did not have sufficient liquidity to butt its current obligations. (Anton R. Valukas, March 11th, 2010) Undoubtedly, the impact of Lehmans bankruptcy was dread(a) and it included a fall in NY stocks, approx 5000 Lehman staff mazed their jobs and a series of small banks collapsed. (Gary Duncan, Sep 16th, 2008) It is widely pull in that the risk, along with the interest, in pedigree is so ordinary and ranges accord to the scale of a form that, one day; it is achievable that another big corporation may go bankrupt without any warning. Indeed, the recession may roll over the business world again.

This essay will present five reasons why businesses fail and will list some actions which may admirer corporations to avoid bankruptcy. The five reasons will be divided into ii parts: inborn and external. Firstly, there argon three internal reasons, which are failure in market strategy, quantity over quality and lack of diversification. Initially, the failure in market question is to blame. Corporations do substantial research, which is closely related to the expectations of future markets, before they investigate in a new product or area. That is to say, market research and expectation are two determinants of a market strategy. More to the point, market research and expectation are equally vital for market strategy. For instance, Edsel, a model of Ford, launched in September, 1957, with high... If you want to get a full essay, order it on our website: Orderessay

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