Essay: Why Do Successful Companies Fail?
The most important thing any business should get motivated to is the ability to make profits. If the business is not directed to reaching that goal, it heads to fail. If the business is directed to make that move, it should concentrate on the things that make it raise profits. Every successful business has goals, vision, mission and strategies to drive it to the goals and achievements (Zoss).
If the business changes its organization culture, it will finally fail to acclimatize to the new culture and fail. Abandoning the set plan to help the company achieve its goals is the surest way to make the company fail because the plan has the conventions that drive the business. In the plan, many factors are considered from the top management to the subordinates (Adams 24). The employees are the instrument that help the business achieve its goals. If they are not respected, they will be not motivated and stop being assertive to work for the achievement of the company. Lack of team work in the business means that there is disintegration and people are not focused in achieving one goal. Most of the companies stagnate because the feel contented about their position sand fail to work harder and fail to expand their clientele. This results to unachieved goals in the business (Zoss).
If the leaders do not delegate duties, they get overwhelmed by work and this slows the speed of achieving the goals in the company hence the failure of the business. Authoritative leadership with not delegation only overworks the head and leads to the employees becoming negatives about the management. This slows the rate of achievement hence a failed business (Adams 25).
High turnover of workers is an indication that they are not contented with the company management. They resign and, the business trains other workers. Before the new employees understand the rule of the company, there is a slowed rate of achieving targets which may lead to a failed business. Businesses which do not have mechanisms of checking their achievements through strategic management end up failing because there is laxity when employees are not monitored. Rewarding the employees motivates them because they feel as stakeholders rather than instruments of achieving goals in the company (Zoss). If this is not done, employees fail to deliver their all and bring down the company to non performance. It is a gradual process where targets are not reached and, it transcends to truancy of employees and finally underachievement which leads to the collapse of the business (Adams 25).
Failure to consult experts in business is one way that leads the business to fail because it is difficult hard to operate a business with orthodox strategies in the wave of globalization. If a business does not embrace technology, for instance use of the World Wide Web, it is bound to fail due to the competition in the market. Encouraging fraudsters in the business make the company lose a lot of money which affects the running capital (Adams 24). It is imperative to treat strangers with the utmost care for one never knows what they might do. If a business does not have a SWOT analysis, it is difficult to know the strengths, weaknesses, opportunities and threats in the market and business. This leads to blind operations without a specified goal to achieve. This leads the company to gradual collapse because it does not move in any given direction (Zoss).
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