External causes of business failure

?
  • Created by: noe
  • Created on: 02-03-20 10:16
View mindmap
  • EXTERNAL CAUSES OF BUSINESS FAILURE
    • Market conditions (markets are dynamic)
      • Consumer tastes might change
      • Failure to set up online operations can make a business struggle as there has been a huge growth in online shopping
      • Some industries decline and are replaced by others
    • Competition
      • They might bring out superior products, charge lower prices, better marketing campaign...
    • Economic
      • A financial crisis, recession, a cut in government expenditure.
        • If taxes are increased and wages lowered, disposable income will decrease resulting in lower demand for non-essential goods.
    • Exchange rates
      • A business which relies heavily in exports will suffer if exchange rates rise as they will have to pay more for the goods
    • Interest rates
      • Business with debts would suffer
    • Government regulations
      • They can have a negative impact on businesses if they limit the companies' ability to do business, reduce subsidies or cut expenditure.
    • Supplier problems
      • If they fail to deliver orders on time
    • Natural phenomena
      • Weather or disease

Comments

NicoleM012

Report

There is a perception that business failure is purely an internal problem.  Let's check SMALL BUSINESS DEBT COLLECTION for new things of business. This perception might be due to the fact that most business owners fail to recognize the external causes of their businesses, but more importantly, they fail to realize why their business failed, as well as what could have been done differently. Don't worry about failure; worry about success!

Similar Business resources:

See all Business resources »See all Business failure resources »