Business failure; competitive growth strategy; success; products; human resource; unlimited resources; situational leadership; management acuity


The objective of this review paper is to identify reasons less obvious that constitutes business failures. It looks at the causes, limitations and possible solutions to business malfunction. The views are strengthened by comments made by learned scholars on the issue of establishing, growing and maintaining a successful business. Despite having what seems to be ‘unlimited’ resources, businesses do fail; despite new inventions, businesses do fail; despite being innovative, businesses do fail; despite having a series of successful (profitable) years, branded quality products and a massive market share, businesses do fail. A recession will cause many businesses to fail. So why do businesses fail? Could the answer could be because businesses are like human beings – they are born, nurtured while they grow but after maturity all sorts of problems starts to show. Some businesses tend to adopt the notion that they know it all and start to experiment; others may become complacent and begin to ‘take their eye off the ball’. This flirting with danger can lead to great success or total failure. This article looks at the common reasons for business failures and encapsulates how to spot the tell-tale signs of collapse and what actions to take to avoid the varied pitfalls

Full Text : PDF

  1. Armstrong M, (2001); Human Resource Management Practice. The Bath Press, Bath, UK.
  2. Besterfield D H, Besterfield-Michna C, Besterfield G H, Besterfield-Sacre M (1999); Total Quality Management. Prentice Hall, New Jersey
  3. Blanchard Ken, Leadership and the One Minute Manager – Harper Collins Publishers
  4. Cole, G, (2002); Personnel and Human Resource Management. Thomson Learning, London.
  5. Cole, G. A, Strategic Management (2nd edition) Letts Educational (1997)
  6. David M Upton, the Management of Manufacturing Flexibility. California Management Review, vol. 36, no 2, 1994. 
  7. Ivancevich J M and Matteson M T, (2002); Organisational behaviour and management. McGraw-Hill, New York
  8. Lonergan, Mark, The implications of European legislation on workforce agility. An Elan white-paper,, version 1.0 August 2005 
  9. Taylor, F.W. (1947), Scientific Management, Harper and Row
  10. Taylor, Robert, Labour Flexibility in Europe., Issue 6
  11. William Collier, Green, Francis & Young-Bae Kim; Training and Establishment Survival.  Skills for Business Publication: March 2007

Useful Websites  11th December 2007  23rd November 2007
www.pricewaterhouse/corporate  cycle