business failure
INTERNAL CAUSES
main reason = run out of cash
marketing failure
financial failure
systems or operations failure
issues undertsnaig changes in market place or what consumers really looking for = shortage in revenue
systems don't provide right people within business info they need, things go wrong
phsycial systems break down = can't satisfy demand = loss of customers
managers need to manage finance actively and plan ahead and make adjustments - some fall until cash flow crises without seeing them coming
EXTERNAL CAUSES
changes in technology
new comp
economic change
behaviour of banks
tech advancement = destroy comnmpanys sales rapidly
economic downturn = orders for luxury dry up
fund long-term investments designed ro raise competievness and short term finance to help working capital managment
new rival operates fats and efficiently = drive exitisitng out market
failure to supply credit or v high interest rates forces business to fail
not recovered quickly = hard to operate above break even point = fail is insufficient funds
product struggles to compete against better product price cutting assured = company fail to operate at breakeven point