Cause and Effect for Business Growth and Failure- myassignmenthelp

Question: Discuss about the Cause and Effect for Business Growth and Failure. Answer: Causes of business growth and failure, marketing, business trends Failure in business is an aspect that mostly will be avoided but it should not be ignored as it could result in avoiding warning signs. A study depicts that 65% of new businesses strive for two or more years, 50% for four years, 40% for six years or more than that (Lussier, pg. 360-377). A cause effect analysis of several factors can depict business growth and failure rates by analysing marketing and business trends. While the effect that is analysed in the study is clear which is business failure, causes might be variable in nature as highlighted below from specific business trends. Failure in understanding customers and market: It is integral to understand competitive market space along with customer habits (Carroll, pag. 29-49). Developing an understanding regarding customers and their willingness to spend is analysing the market space and putting the best foot forward. Business trends can be understood by means customer and market. Business trend analysis needs to be understood in great details as it will determine success for the business and depict its sustainability for the future. Opening business in an unprofitable industry: While selecting the industry of operations, it becomes essential that ways in which sustainable growth can be attained be figured. This will allow positive cash flow for the business and allow to stay in the business. Even in case the business is stable, in an unprofitable industry it will not be able to gain much momentum or emerge as a competitive leader. Failure in understanding and communicating product: Customers needs to clearly understand their value proposition (Teece, pg. 172-194). Communicating effectively to customers allows developing a market connect. Product features and its core values needs to be appropriately communicated to its key customers such that customer can understand the values it can deliver. Post understanding of the products features, a customer will be ready to pay price for the product. Communication methods also needs to be ascertained and determined for establishing core competency. Inadequate financing: Every business requires adequate cash flows for staying afloat throughout its cycles and flow of business (Hughes, pg. 651-661). Having low balance in bank account can leave the business unsuccessful, sometimes it becomes difficult to get cash from money lenders as well. Reactive attitudes: Business needs to be responsive to market trends, cycles, sales cycle, technology to respond to competitive sphere. A key to business long-term profitability or success is in business. A business needs to provide a responsive attitude towards the market, and be industry ready to be able to emerge as a leader. Overdependence on single customer: Businesses needs to strategies to attract a large pool of customers. Businesses cannot overemphasize on one customer, who if walks out might leave the business hampered. More the customer spread for a certain type of business, greater will be the success determining businesses. No customer strategy: Customer influences is a key factor in every business. A business needs to realize the key factors which customers of the business likes or dislikes (Hatten, pg. 125-320). Having clear understanding regarding the customer can help develop a big role in the strategy and manage business effectively. \ Poor management: Business management includes a varied range of activities. Planning, organizing, controlling, communicating, directing and some other functionalities encompasses key roles for the business management. Successful companies have excellent management skills and resources that allows establishing their businesses in a positive fashion. No planning: In case a business cannot plan to establish itself and management it, it might eventually appear to be a failure (Cohen, pg. 238-429). Concrete actionable strategies allows businesses develop engagement, alignment, ownership for the organisation, creating sustainable features. A business is established on the plans it develops and on which it functions, hence planning encompasses key attributes of every business. Thus, in order to establish successful businesses there needs to be appropriate planning strategies implemented. Low Marketing: Businesses depends on their marketing activities which highlights the brand name for the business. Low marketing activities of businesses might make it less visible to its customers and attract less number of customers. Business trends can pick up in case of increased marketing activities of businesses, such leads to business prominence and development. Reference Lists Carroll, Archie B., and Kareem M. Shabana. "The business case for corporate social responsibility: A review of concepts, research and practice."International journal of management reviews12.1 (2010): 85-105.Cohen, B., Winn, M. I. "Market imperfections, opportunity and sustainable entrepreneurship." Journal of Business Venturing (2007): 29-49. Hatten, Timothy S.Small business management: Entrepreneurship and beyond. Nelson Education, 2015 Hughes, Mathew, and Robert E. Morgan. "Deconstructing the relationship between entrepreneurial orientation and business performance at the embryonic stage of firm growth."Industrial marketing management36.5 (2007): 651-661 Lussier, Robert N., and Claudia E. Halabi. "A three?country comparison of the business success versus failure prediction model."Journal of Small Business Management48.3 (2010): 360-377 Teece, David J. "Business models, business strategy and innovation."Long range planning43.2 (2010): 172-194.