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IIDS Lect 1_ Part 4: Ch2 & 6 (NOT 2.2) (Exit: 3. Perspectives on…
IIDS Lect 1_ Part 4: Ch2 & 6 (NOT 2.2)
Exit: Measures for exit / business closures
Self-assessed in surveys:
Individuals who say they have quit a business (entrepreneurial exit)
Individuals who say they have closed a business (entrepreneurial exit ánd business exit)
Observed in surveys / statistics:
Individuals who move out of self-employment
Number of bankruptcies, insolvencies or liquidations
Number of enterprises / companies deregistering
Number of business bank account closures
Entrepreneurial exit reasons
Exits occur for a variety of reasons, not only negative!
Impact of exits (such as on entrepreneur) may be negative but also positive
Exit: 3. Perspectives on business closures
Explaining business closures: 5 perspectives on business closures --> relevant to explain closure V&D?
see appendix slide 49-
1.GAMBLER’S RUIN (risk-taking and luck)
2.POPULATION ECOLOGY (environment)
3.RESOURCE-BASED CLOSURE (business resources and strategy)
4.UTILITY
5.ENTREPRENEURIAL LEARNING (talent and luck)
Bankruptcy V&D 2015: reasons for its demise
Weak sales and liquidity problems (it could not meet its lease obligations for its buildings).
Lack of clear identity in comparison with cheaper stores and the more exclusive ones, such as De Bijenkorf.
Cheaper brick and mortar stores such as the Swedish H&M and Irish Primark took market share from V&D.
Assortment not sufficiently distinct from others.
On-line stores won away customers.
The sale of the V&D real estate, which possibly increased the warehouse's operational costs.
The rise of the Internet with online shopping and the late
start of V&D e-commerce.