Main Causes of Corporate Failure by Susanbuzz

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Leadership by example is the best way to energise and grow the business and company. Usually at the start of the business, the founder who is the entrepreneur and CEO will have the vision, full commitment, passion and drive to start, develop and grow the business.

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									Main Causes of Corporate Failure

Founder /CEO and management leader loses the vision, passion and commitment
Leadership by example is the best way to energise and grow the business and company.
Usually at the start of the business, the founder who is the entrepreneur and CEO will
have the vision, full commitment, passion and drive to start, develop and grow the
business. Once the company has established itself, is doing well and making profit, there
is a tendency to take it easy and become complacent. Sometimes quick success can also
make the founder entrepreneur and management leadership arrogant or indifferent,
leading to business blind spots and vulnerabilities.
The leadership role starts to weaken and the company moves into an aging and decline
mode. Not understanding how to manage and rejuvenate the company at their respective
growth stages is a recipe for failure.

Not strategic planning or short tem and long term strategies
Chaotic and rapid growth without putting systems, processes and the right people in place
to manage the growth is akin to the business flying blind. Research has shown that most
companies without a well-developed strategic plan could grow themselves into trouble.
As there is no long term and future direction, companies may find themselves in the
dangerous situation of running very fast in the wrong direction. Hence, there is a saying
goes “if you fail to plan, you plan to fail”.

Lack of a distinctive business capability and core competency
Strong and resilient companies find that over the growth period, they develop a
distinctive competency and strong brand in doing their business. They have something
unique to really differentiate their business and they continue to value innovate their
business. Whereas companies that have not created their distinctive business capability
and core competency will often be reactive rather than proactive to business pressures
and opportunities. This distinctive capability will differentiate you from the crowd of
many other competitors.

Business blind spots
The trouble with managing a business is that because of the haste and pressure on our
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