Apart
from the changes that have been mentioned earlier there some other changes that
is encountered but not easily observable. Managers who are operating within the
Nigerian economy will be interested in providing solutions to problems such as:
from the changes that have been mentioned earlier there some other changes that
is encountered but not easily observable. Managers who are operating within the
Nigerian economy will be interested in providing solutions to problems such as:
·
How to find a workable marketing strategy for their products
How to find a workable marketing strategy for their products
·
How to think of the basic features of business environment that may
affect their marketing efforts and returns
How to think of the basic features of business environment that may
affect their marketing efforts and returns
·
How to locate the link between the environment and their firms
How to locate the link between the environment and their firms
However,
it is only few managers that can claim to have the ability to forsee the
possible changes that might come up as a result of government policies for the
coming year. Many policy statement since independence have always maintained
the willingness of government and private firms to manage unforeseen changes in
the economy. Although, fiscal, monetary, commercial and industrial policies
have been used to foster national development, yet not many marketing and
management strategies in Nigeria have succeeded in anticipating and planning
for changed emanating from such official policies
it is only few managers that can claim to have the ability to forsee the
possible changes that might come up as a result of government policies for the
coming year. Many policy statement since independence have always maintained
the willingness of government and private firms to manage unforeseen changes in
the economy. Although, fiscal, monetary, commercial and industrial policies
have been used to foster national development, yet not many marketing and
management strategies in Nigeria have succeeded in anticipating and planning
for changed emanating from such official policies
Business
failure
failure
We
have been able to establish a relationship between business and its
environment. This relationship can either be positive, negative or a
combination of two extremes. Environment there has major impacts on business
and from our above discuss, we can see that for a manager to be grabble with
internal environment of the firm and at the same time have a thumb on the
external variables in a very challenging and demanding task indeed. Hence
management is so dynamic and situational that there is not one workable
formular or model on how best to manage any particular business situation and
changes. Hence management as a dynamic process is seen to universal.
have been able to establish a relationship between business and its
environment. This relationship can either be positive, negative or a
combination of two extremes. Environment there has major impacts on business
and from our above discuss, we can see that for a manager to be grabble with
internal environment of the firm and at the same time have a thumb on the
external variables in a very challenging and demanding task indeed. Hence
management is so dynamic and situational that there is not one workable
formular or model on how best to manage any particular business situation and
changes. Hence management as a dynamic process is seen to universal.
However,
to manage a business successfully the manger must look out for certain indexes
and be able to spot and observe carefully when his business is going down or up
i.e. doing well. Many businesses in our contemporary business environment have
failed. A sound knowledge of business administration and environment is
therefore a sine qua non to successful running of a business. Also, a continuous
culture of SWOTing should be adopted.
to manage a business successfully the manger must look out for certain indexes
and be able to spot and observe carefully when his business is going down or up
i.e. doing well. Many businesses in our contemporary business environment have
failed. A sound knowledge of business administration and environment is
therefore a sine qua non to successful running of a business. Also, a continuous
culture of SWOTing should be adopted.
Business
failure is the inability of particular business enterprise to continue to
function. There are basically two types of failures:
failure is the inability of particular business enterprise to continue to
function. There are basically two types of failures:
·
Economic failure
Economic failure
·
Financial failure
Financial failure
Economic
failure relates to a situation where the total revenue is less than the total
cost. Financial failure occurs when a firm is suffering from technical
insolvency. If a business is unable to meet its current obligations as they
fall due, even though its total asset exceeds its total liabilities, it is said
to be technically insolvent.
failure relates to a situation where the total revenue is less than the total
cost. Financial failure occurs when a firm is suffering from technical
insolvency. If a business is unable to meet its current obligations as they
fall due, even though its total asset exceeds its total liabilities, it is said
to be technically insolvent.
In
evaluating the various causes of business failure, it is always good to
distinguish between the symptoms and problems. The symptoms are red flags that
alert the entrepreneur or the board of directors of the impending problems.
Where symptoms are sighted early enough, more urgent corrective actions may
become necessary to avoid failure
evaluating the various causes of business failure, it is always good to
distinguish between the symptoms and problems. The symptoms are red flags that
alert the entrepreneur or the board of directors of the impending problems.
Where symptoms are sighted early enough, more urgent corrective actions may
become necessary to avoid failure
Symptoms
of business failure
of business failure
·
Deterioration of working capital position
Deterioration of working capital position
·
High debt equity ratio
High debt equity ratio
·
Sales decline
Sales decline
·
Declining profit
Declining profit
·
Low capacity utilization
Low capacity utilization
·
High labour turnover
High labour turnover
·
Low quality products
Low quality products
Causes
of business failure
of business failure
·
Unfavourable government policy
Unfavourable government policy
·
Unfavourable business environment
Unfavourable business environment
·
Unfair competition with giant firms within a particular industry
Unfair competition with giant firms within a particular industry
·
Inability to adapt and adopt technological changes in the industry
Inability to adapt and adopt technological changes in the industry
·
Lack or dearth of business connections and links
Lack or dearth of business connections and links
·
Poor financial control and accounting system
Poor financial control and accounting system
·
Shortage of raw material and inability to convert to alternative sources
or substitutes
Shortage of raw material and inability to convert to alternative sources
or substitutes
·
Lack of or poor employee satisfaction
Lack of or poor employee satisfaction